INEOS Urges European Commission to Protect Chemical Industry Amid Rising Plant Closures and Global Competition

INEOS has issued a formal letter to European Commission President Ursula von der Leyen warning that the European chemical industry is currently in a 'closure phase,' with nearly 200 plants shuttering over the last five years. The company highlights that the sector is critical for national security, supporting essential services such as healthcare, food supply, and defense. This appeal calls for urgent regulatory protection against unfair global competition and better financial support for strategic decarbonization projects to ensure the long-term viability of European manufacturing.

INEOS Group leadership emphasizes that the European chemical sector is facing an existential threat driven by a combination of high energy costs, carbon taxes, and aggressive market tactics from China. According to the letter, China is intentionally overbuilding its chemical capacity for national security reasons and 'dumping' excess products into the European market at unsustainable prices. INEOS warns that because China does not possess superior manufacturing economics, the current price suppression is temporary; once European capacity is eliminated, prices are expected to rise sharply, harming consumers while increasing the global carbon footprint due to China's higher-emission production methods.

To combat these challenges, INEOS is calling for the immediate implementation of the Safeguard or Industrial Accelerator Act for the chemical sector, which employs approximately one million people across the continent. The company argues that Europe must move faster than a 'snail’s pace' to protect its industrial base from unfair competition. The letter stresses that chemicals are a 'critical industry' for national security, as the region cannot maintain hospitals, food supplies, or military readiness without the key products generated by these facilities.

The letter also highlights specific frustrations regarding Project One in Antwerp, a €5 billion investment described as the first major chemical project in Europe for a generation. Despite producing ethylene with one-third the carbon footprint of traditional European crackers, the project was deemed ineligible for the EU Innovation Fund and has received no EU funding. INEOS urges the Commission to ensure that the newly announced €30 billion ETS Investment Booster is structured to support such strategic projects, both in planning and execution, to match the level of government support received by global competitors.