From 2022 to 2025, the global chemical industry went through a massive structural shakeup. Hit by an energy crisis—especially the loss of cheap Russian pipeline gas—along with high carbon taxes, heavy inflation, and shifting geopolitics, Europe saw an unprecedented wave of plant closures.
Here is a breakdown of the numbers, major projects, affected products, and takeaways for the chemical industry in Asia.
1. Plant Closures in Europe (2022–2025)
According to the latest tracking reports from the European Chemical Industry Council (Cefic) and market analysts like Roland Berger and ICIS, the shutdowns have been accelerating rapidly:
- Total Scale: Over these four years, Europe’s chemical industry permanently shut down around 37 million tons of capacity. That is roughly 9% of its total output capability.
- The Trend: The wave started with 2.9 million tons in 2022, crept up to 8.7 million tons in 2023, and held at a high 8 million tons in 2024. Then came 2025, bringing a massive spike. In 2025 alone, announced closures hit 17.2 million tons, doubling the previous year’s total.
- Hardest-Hit Countries: Germany took the biggest blow, accounting for 25% of the closures (about 8.8 million tons). It was followed by the Netherlands (20%), the UK (12%), France (10%), and Italy (7%).
2. Key Companies and Main Projects
To survive, many multinational chemical giants had to scale back their European footprints drastically.
- BASF — Ludwigshafen, Germany
- Impact: The company permanently closed several high-energy flagship plants at its main headquarters. This included an ammonia plant (430,000 tons/year), a TDI plant (300,000 tons/year), and various lines for caprolactam, cyclohexanone, soda ash, and adipic acid.
- ExxonMobil & SABIC
- Impact: In 2024, both giants closed down major steam crackers used for making ethylene. ExxonMobil shut its Port Jérôme site in France, while SABIC closed its Geleen facility in the Netherlands, cutting about 1 million tons of ethylene capacity combined.
- Eni (Versalis) — Multiple Sites, Italy
- Impact: In October 2024, Eni announced a major shift away from traditional petrochemicals. Its plants in Brindisi, Priolo, and Ragusa (producing ethylene, propylene, and polyethylene) began winding down production through 2025.
- Dow Chemical — Multiple Sites, Europe
- Impact: Dow idled or planned closures for parts of its cracker setup in Terneuzen, Netherlands, around 2025. It also set plans to shut down its chlorine and derivatives plants in Schkopau, Germany, by 2026–2027.
- INEOS & CF Industries — United Kingdom
- Impact: CF Industries permanently closed its Billingham ammonia and fertilizer plant in 2023. Meanwhile, INEOS has been downsizing and optimizing its older assets at the Grangemouth site in Scotland.
3. Which Major Products Were Most Affected?
Out of the 37 million tons of lost capacity, the hardest hit were energy-heavy, foundational chemicals at the very beginning of the supply chain.
| Product Category | Share of Closures | Key Products Affected | Major Impact |
| Basic Petrochemicals | 48% (17.8 million tons) | Ethylene, Propylene, Styrene | Local supply shrank dramatically. Plant utilization rates plummeted to a historic low of 57%, turning Europe from a net exporter into a net importer. |
| Industrial Inorganics | 32% (11.7 million tons) | Ammonia, Caustic Soda, Chlorine | Because ammonia relies heavily on natural gas, fertilizer supply was totally upended. Chlorine shutdowns also destabilized raw materials for plastics like PVC and polyurethanes. |
| Polymers & Engineering Plastics | 15% (5.4 million tons) | LDPE, Nylon monomers, TDI, Polyols | Europe lost a massive chunk of its capacity for making materials used in cars and construction, forcing buyers to look to Asia and North America. |
4. Takeaways for the Industry in Asia (China, Southeast Asia)
Europe’s crisis serves as a mirror for Asian chemical companies that are currently expanding and upgrading.
Keep an Eye on Energy Costs and Secure Diverse Supplies
Europe’s chemical decline happened because it lost its cheap energy source. For Asian companies, the lesson is simple: chemical competition is always about the total cost of energy. Companies in China and Southeast Asia must secure diverse energy import routes and blend in local green energy (like green electricity and hydrogen) to prevent cost shocks if one supplier drops out.
Watch Out for Global Overcapacity
The international market is currently facing an oversupply. Part of why European plants closed was because newer, highly efficient plants in Asia drove prices down. However, Asian companies cannot afford to be complacent. If the region keeps expanding basic, low-value chemicals blindly, it will trigger brutal local price wars. The focus must shift toward specialized, high-end, and unique products.
Get Ready for Green Trade Barriers
Europe may be closing old plants, but it is ramping up carbon taxes and rules like the Carbon Border Adjustment Mechanism (CBAM). European giants are shifting their money to the US and Asia (such as BASF’s new site in Zhanjiang, China) to manage their carbon footprints. Asian exporters must build reliable carbon-tracking systems now. Adopting low-carbon processes early will allow Asian firms to step into the market gaps left by Europe without getting blocked by future green tariffs.
Seize the Window in Rewritten Supply Chains
Because Europe now lacks basic chemicals and plastics, its buyers are more dependent on outside sources than ever. This creates a prime window for Asian companies to secure long-term partnerships. By keeping quality and safety standards high, Asian chemical storage tank and equipment suppliers can expand their overseas presence and build lasting trust with global clients.
