INEOS has today confirmed its intention to shut two production units in Rheinberg, Germany, with the loss of 175 jobs. The proposed closures are the direct result of crippling energy and carbon costs, and a lack of tariff protection.

The intention to close, which has been shared with employees, reflects a deepening crisis across Europe’s chemical sector.

Stephen Dossett, CEO of INEOS Inovyn, said: “Europe is committing industrial suicide. While competitors in the US and China benefit from cheap energy, European producers are being priced out by our own policies and absence of tariff protection. Meanwhile, high-emission imports flood our market unchecked. It’s completely unsustainable and if not immediately addressed will lead to further closures, job losses and increased dependency on other regions for essential materials.”

Both plants produce essential chemicals. The Allylics unit makes the key ingredient for epoxy resins vital in defence, aerospace, cars and renewable energy infrastructure. The electro chemical facility produces chlorine crucial for clean water, medicines, industrial processes and sanitation.

These closures are part of a wider trend as Europe’s competitiveness collapses. Since 2019, output in Germany has dropped by 18%, driving job losses and reduced investment. INEOS has closed plants in Grangemouth (UK), Geel (Belgium). It is closing Gladbeck (Germany), and has mothballed assets in Tavaux (France) and Martorell (Spain).

“We’ve reached the point where well invested, efficient European plants are closing, while global emissions rise,” Dossett said. “It’s not just economic madness. It’s environmental hypocrisy.”

INEOS will now focus on preserving its remaining PVC operations in Rheinberg to support around 300 skilled jobs. This requires urgent state support to help cover significant local transitioning costs.

The business deeply regrets the decision to close Rheinberg’s cell rooms and Allylics operations and is conscious of the impact it will have on staff and wider German supply chain.

“INEOS Inovyn will work closely with partners and employees to minimise the impact.” said Dossett “We are doing everything we can to protect what is still viable, but we can’t do it alone. If governments want to keep strategic manufacturing in Europe, they must help manage this transition and restore competitiveness.”

INEOS firmly criticised the EU’s absence of tariff protection. While the US has introduced strong tariffs, effectively blocking the oversupply of commodity chemicals from Korea, Taiwan, and China, some based on cheap Russian feedstocks, Europe opens its doors to displaced local production.