Urgent Action Needed to Protect EU Chemical Industry Competitiveness
Key points
Brussels, 10 January 2025 – Cefic has released its latest competitiveness study, highlighting a critical juncture for the European chemical industry. The report emphasizes the serious challenges the sector is facing, with over 11 million tonnes of capacity set to close between 2023 and 2024, affecting 21 major sites.
Offering a thorough analysis of the industry's global position, the study supports the Antwerp Declaration with extensive data and comparative insights. The findings clearly indicate that Europe’s chemical industry is at a breaking point.
Call for Immediate Action
Marco Mensink, Director General of Cefic, issued a strong warning:
“For the sake of our industry and the 1.2 million workers it directly employs, we need bold and urgent action today. Lowering energy costs, securing access to critical raw materials, and fostering innovation are absolutely essential. If our industry collapses, entire value chains will follow—healthcare, automotive, renewable energy, and the groundbreaking Green Deal technologies that are vital for Europe’s transition. We say it again, louder and clearer: for the future of Europe, our new EU decision-makers must act now!”
Global Competitiveness Challenges
The competitiveness study, conducted by Advancy, offers a detailed comparison between the EU chemical industry and its counterparts in the USA, China, Japan, Brazil, India, and the Middle East. It identifies both cost-related and non-cost-related barriers that are undermining Europe's industrial strength.
The key findings reveal that Europe’s chemical sector is facing a dual disadvantage:
High production costs driven by increasing energy prices, regulatory burdens, and environmental compliance costs.
Administrative obstacles that hinder innovation and investment decisions, prompting companies to explore opportunities outside of Europe.
A Crossroads for European Industry
As a cornerstone of Europe’s industrial landscape, the chemical sector is integral to everyday life and countless supply chains. However, without decisive intervention, delayed investments and relocations could severely weaken Europe’s global position.
? Read the full report here.
