Europe’s petrochemical sector is grappling with widespread plant closures and soaring production costs, threatening up to 40% of the EU’s ethylene capacity. Aging facilities and reliance on costly naphtha feedstock contrast sharply with North America and the Middle East, where cheaper ethane feedstocks drive expansion.
While China rapidly expands capacity, expected to triple EU levels by 2030, European producers struggle, increasing dependency on imports for critical chemicals like ethylene and propylene. The European Commission has pledged support for domestic production through state aid and procurement preferences, but industry leaders warn decisive action is urgently needed to avoid further industrial decline, News.Az reports, citing Reuters.
Notably, INEOS is investing €4 billion in a new ethane cracker in Antwerp, the first European facility of its kind in decades, aiming to compete with China and reduce carbon emissions. Still, analysts expect Europe’s chemical sector to consolidate, favoring major players capable of sustaining competitive prices.
