Chemical giant Covestro NV plans to slash polycarbonate production at its Antwerp site from four lines to one and end local production of the precursor chemical Bisphenol-A (BPA).
This major restructuring is driven by mounting losses, global oversupply and intensifying competitive pressure on Europe’s chemical industry.
The proposed overhaul could affect up to 260 employees in production and support functions at the Belgian site, which currently employs around 970 people. The company said the move is intended to restore long-term competitiveness as high energy and production costs, weak demand and intensifying international competition continue to erode the economics of European chemical manufacturing.
The restructuring is part of Covestro’s broader effort to transform its operations, improve profitability and strengthen its position in global markets. The company said its Antwerp operations have been increasingly loss-making since 2022, while persistent global overcapacity in standard polycarbonates has driven capacity utilisation sharply lower.
“Europe’s chemical industry is at a crossroads. The structural challenges are severe, and market realities have changed fundamentally. We need to adapt our portfolio to where we can compete successfully in the long term to ensure a future for our production in Europe," says Markus Steilemann, CEO of Covestro.
"This is not an easy step for anyone involved, and we are fully aware of what it would mean for our colleagues in Antwerp should this intention be confirmed. Covestro NV will approach this intended transformation responsibly and discuss its intention openly and constructively with the local employee representatives.”
The proposed restructuring underscores the growing strain on Europe’s chemical industry, which is grappling with high operating costs, subdued demand and increasingly fierce competition from international producers.
Significant capacity additions, particularly in Asia, have created persistent global oversupply in standard polycarbonates, pushing capacity utilisation down and leaving little prospect of a meaningful recovery in the foreseeable future.
Covestro said European industrial policy has so far failed to adequately address these structural disadvantages or close the region’s competitiveness gap.
Against this backdrop, the company considers the existing production setup in Antwerp economically unsustainable, warning that failing to restructure would threaten the site’s long-term financial viability.
Despite the planned cuts, Covestro insists Antwerp will retain a significant role in its European manufacturing and innovation network.
Most activities at the site would remain unaffected, including the continued operation of one polycarbonate production line focused on higher-value specialty grades such as heat-resistant APEC.
The company also confirmed that its previously announced investment in a new aniline production unit would proceed as planned, reinforcing Antwerp’s position as its European aniline hub. Polyether production lines and the site’s Technology Centre, which drives global process technology development for polycarbonates, are also outside the scope of the proposed changes.
"Commodity production in Europe is increasingly difficult to operate competitively, while we continue to see attractive opportunities in high-value specialty materials," says Thorsten Dreier, CTO of Covestro.
"To remain competitive on a global scale, we need a cost base that allows us to invest in innovation and future-oriented technologies. By focusing Antwerp accordingly and continuing the investment in a new aniline plant, Covestro NV aims to strengthen the long-term competitiveness of the site."
Covestro NV is launching a formal information and consultation process with employee representatives in accordance with local laws. The company stressed that no final decision would be taken until the process is complete and its outcome has been carefully considered.
The proposed restructuring therefore remains subject to consultation, with the potential impact on hundreds of workers placing employment and the future shape of polycarbonate production at the centre of discussions.
The outcome will determine how Covestro reshapes its Antwerp operations as it seeks to preserve the site’s strategic role while scaling back production it says can no longer compete sustainably under current European market conditions.
