A recent report has unveiled a staggering sixfold increase in chemical plant closures across Europe since 2022, leading to a total loss of 37 million tonnes (Mt) of capacity. This accounts for about 9% of the continent's overall chemical production capacity and has resulted in the elimination of roughly 20,000 direct jobs in the chemical sector.
The report also points to a significant slowdown in new investment activity, raising serious concerns about the competitiveness and long-term sustainability of Europe’s chemical industry.
Marco Mensink, the Director General of Cefic, expressed his concerns, stating:
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“We’re not just a few minutes away from a crisis; the sector is under immense pressure and on the brink of collapse. The rate of closures has doubled in just a year, and alarmingly, annual investments have plummeted to half of what they were, nearing zero. Both trends are accelerating, not slowing down. We need to take decisive action this year that will have a real impact on the factory floor.”
These findings highlight the profound human and economic repercussions of the ongoing wave of closures. In addition to the 20,000 direct job losses already reported, around 89,000 indirect jobs are now at risk throughout Europe, underscoring the chemical industry’s vital role in regional value chains and the broader industrial landscape.
Simultaneously, investment in new capacity has dramatically slowed. Announced annual investment capacity has dropped from 2.7 Mt in 2022 to a mere 0.3 Mt so far in 2025, bringing the total announced capacity for the 2022–2025 period to about 7 Mt. This decline indicates a shift away from widespread investment in various innovative pathways—like electrification, hydrogen feedstocks, and circular plastics—toward focusing on just a single pilot initiative.
With plant closures now significantly outpacing new investments, the European chemical industry is in decline. This trend signals increasing uncertainty for the sector and raises critical questions about Europe’s ability to maintain a competitive and resilient industrial foundation.
The European Chemical Closures & Investments Radar for 2022–2025, which was commissioned by Cefic and put together by Roland Berger, offers a well-organized, evidence-based look at the significant changes impacting Europe’s chemical sector. This includes information on plant closures, shifts in capacity, and emerging investment trends.
By utilizing insights from industry experts and publicly accessible data, the Radar highlights important patterns, the driving forces behind them, and their effects on competitiveness, supply chains, and regional ecosystems.
Expect quarterly updates to the Radar, along with a summary released twice a year that distills key trends into straightforward, actionable insights for policymakers and industry leaders.
Background
The European Chemical Closures & Investments Radar for 2022–2025, which was commissioned by Cefic and put together by Roland Berger, offers a well-structured, evidence-based look at the significant changes impacting Europe’s chemical industry. This includes information on plant closures, shifts in capacity, and emerging investment trends.
By utilizing insights from industry experts and publicly accessible data, the Radar highlights important patterns, the driving forces behind them, and their effects on competitiveness, supply chains, and regional ecosystems.
Expect quarterly updates to the Radar, along with a summary released twice a year that distills key trends into straightforward, actionable insights for policymakers and industry leaders.
