Cefic warning over future of EU chemical industry amid rising plant closures

Brussels — Chemical plant closures in Europe have surged six-fold since 2022, with cumulative capacity losses reaching 3,700 kilotonnes per annuam (ktpa), or roughly 9% of European production capacity, according to a new report.

In a 28 Jan report, the European Chemical Industry Council (Cefic) said the closures have resulted in the loss of 20,000 direct jobs, with a further 89,000 indirect jobs at risk across the sector.

“The sector is under severe stress and breaking,” the Roland Berger report said, warning that the pace of closures has doubled in the past year while investment activity has collapsed.

Annual announced investment capacity “slowed dramatically,” from 2,700ktpa in 2022 to just 300ktpa in 2025, amounting in total to 7,000ktpa over the 2022–2025 period, the report found.

The decline, it said, reflects a shift from broad investment across multiple innovation pathways – like electrification, hydrogen feedstocks, and circular plastics – to “barely one pilot initiative.”

With closures now “significantly outpacing” new investments, the Cefic-commissioned study emphasised concerns over the outlook for Europe's chemical industry.

These trends point to "deepening uncertainty for the sector and raises serious questions about Europe’s ability to maintain a competitive, resilient industrial base,” it concluded.

Read the full Roland Berger report