Ineos to close two German plants amid EU chemicals decline

London – Ineos Group has confirmed plans to shut down two production units in Rheinberg, Germany, impacting 175 jobs.

The closures include an 'allylics unit', which produces a key ingredient for epoxy resins used in defence, aerospace, automotive, and renewable energy applications.

Also set for closure is the 'electrochemical facility', which manufactures chlorine for use in clean water, medicines, industrial processes, and sanitation.

In a 6 Oct statement, the UK-based chemicals group said the planned closures were “the direct result of crippling energy and carbon costs, and a lack of tariff protection.”

“Europe is committing industrial suicide,” said Stephen Dossett, CEO of Ineos Inovyn, the group’s vinyls-producing subsidiary.

“While competitors in the US and China benefit from cheap energy, European producers are being priced out by our own policies and the absence of tariff protection,” he added.

Furthermore, the Inovyn chief said that “high-emission imports flood our market unchecked.”

“It’s completely unsustainable and, if not immediately addressed, will lead to further closures, job losses, and increased dependency on other regions for essential materials,” Dossett warned.

Ineos said the proposed closures are part of a wider trend as Europe’s industrial competitiveness declines.

According to the group, chemical output in Germany has fallen by 18% since 2019, leading to job losses and reduced investment.

Ineos has already closed production facilities in Grangemouth (UK) and Geel (Belgium), plans to close another in Gladbeck (Germany), and has mothballed assets in Tavaux (France) and Martorell (Spain).

“We’ve reached the point where well-invested, efficient European plants are closing while global emissions rise,” Dossett said. “It’s not just economic madness; it’s environmental hypocrisy.”

Ineos said it will now focus on preserving its remaining PVC operations in Rheinberg to support around 300 skilled jobs.

However, this will require “urgent state support to help cover significant local transition costs,” the company added.