European chemicals industry at ‘breaking point’

Brussels – The European chemical industry is at “breaking point,” according to Cefic, noting the closure of 11 million tons of capacity for 2023-2024, affecting 21 major sites.

In a new ‘competitiveness study’, issued 10 Jan, the Brussels-based chemicals industry body highlighted the severe pressures facing EU chemicals manufacturers in 2025.

The commissioned study, by Advancy, compared the competitiveness of the EU chemicals industry with that of its counterparts in the US, China, Japan, Brazil, India and Middle East.

The EU industry, it found, was significantly weaker in areas ranging from energy, environmental and regulatory costs to administrative hurdles around innovation and human capital.

“For the sake of our industry and the 1.2 million of workers it directly employs, we need bold and urgent action today,” said Cefic director general Marco Mensink.

To address the situation, the industry leader called for EU measures to lower energy costs, ensure access to critical raw materials, and support innovation.

“If our industry falls, entire value chains fall with it,” added Mensink, highlighting the wider potential impact on other European industries including healthcare, automotive and renewable energy.

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