Europe Faces Unprecedented Petrochemical Crisis 50,000 Jobs at Risk as Closures Accelerate

Europe’s petrochemical sector is in turmoil, with a wave of plant shutdowns and capacity cuts threatening up to 50,000 jobs by 2035. High operating costs, outdated infrastructure, and surging competition from China’s rapid capacity expansion have left European producers struggling to survive. The region is increasingly dependent on imports of key building blocks like ethylene and propylene, essential for plastics and pharmaceuticals.

While China is set to triple the EU’s capacity by 2030—reaching nearly 87 million metric tons of ethylene a year—Europe’s older, smaller crackers operate below 80% utilization, making them uneconomic. Consultancy Wood Mackenzie estimates that up to 40% of the EU’s 24.5 million-ton ethylene capacity is at high or medium risk of closure.

Major companies such as Dow, ExxonMobil, TotalEnergies, and Shell are reviewing or shutting down European assets. Eni’s Versalis division alone has racked up €3.5 billion in losses over five years and is closing Italy’s last two steam crackers.

The European Commission is scrambling to respond, promising expanded state aid and local procurement rules to protect domestic chemicals production. Yet, experts warn these moves may come too late, as U.S. and Middle East producers benefit from cheaper feedstocks and modern plants.

INEOS is betting big with a new €4 billion ethane cracker in Antwerp—the first in Europe in nearly three decades—hoping to compete with China’s massive output. Meanwhile, industry consolidation is underway globally, with the looming $60 billion merger of ADNOC and OMV set to create the world’s fourth-largest polyolefins maker.

Analysts believe only Europe’s largest players may survive, fundamentally reshaping the region’s chemical landscape. Without decisive intervention, Europe’s industrial backbone could rapidly erode, leaving the continent reliant on foreign suppliers for critical materials.