Chemical Plant Closures Surge Six-Fold in Europe Since 2022: New Report

Market Scenario Chemical Plant Closures Surge Six-Fold in Europe Since 2022: New Report

2026-01-28 Source: Press release Cefic 2 min Reading Time

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The European Chemical Closures & Investments Radar 2022-2025 report, commissioned by Cefic and prepared by Roland Berger shows that chemical plant closures in Europe, has surged sixfold since 2022, reaching a cumulative 37 mt of capacity – or around 9 % of European production capacity – and resulting in the loss of 20,000 direct jobs in the chemical industry.

The report underlines the human and economic impact of the ongoing wave of closures.(Source: Pixabay) — The report underlines the human and economic impact of the ongoing wave of closures.
(Source: Pixabay)

Brussels/Belgium – A new report shows that chemical plant closures in Europe, has surged sixfold since 2022, reaching a cumulative 37 mt of capacity – or around 9 % of European production capacity – and resulting in the loss of 20,000 direct jobs in the chemical industry. The report also reveals a sharp slowdown in new investments, highlighting growing concerns over the competitiveness and long-term viability of Europe’s chemical sector.

Marco Mensink, Cefic’s Director General said: “It’s no longer a question of being five minutes before or after twelve. The sector is under severe stress and breaking. The rate of closures has doubled in a year, and even worse, annual investments are half and close to zero. On both sides, the speed is accelerating, not slowing. We need decisive action this year, with impact at factory floor level.”

This report underlines the human and economic impact of the ongoing wave of closures. In addition to the 20,000 direct job losses, an estimated 89,000 indirect jobs are at risk across Europe, reflecting the chemical industry’s central role in regional value chains.

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At the same time, new investment has slowed dramatically. Annual announced investment capacity fell from 2.7 mt in 2022 to just 0.3 mt year-to-date in 2025, amounting to approximately 7 mt in total over 2022–2025. This drop reflects a shift from broad investment across multiple innovation pathways – like electrification, hydrogen feedstocks, and circular plastics – to barely one pilot initiative.

With closures now significantly outpacing new investments, the European chemical industry is contracting. This trend points to deepening uncertainty for the sector and raises serious questions about Europe’s ability to maintain a competitive, resilient industrial base.

Read the full report here.

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