European chemical industry faces crisis as plant closures surge, investments stall

Chemical plant closures rate surges six-fold in Europe since 2022, new report finds

A new report reveals a dramatic surge in chemical plant closures across Europe, with capacity lost hitting 37 million tonnes—roughly 9% of the continent’s total production—and resulting in 20,000 direct job losses. The study also warns of a sharp slowdown in new investments, raising alarms over the sector’s competitiveness and long-term viability.

“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,” the report states.

The human cost of the crisis extends far beyond plant gates. An estimated 89,000 indirect jobs are at risk across Europe, highlighting the chemical industry’s central role in regional supply chains.

Meanwhile, investment in new capacity has plummeted. Annual announced investment fell from 2.7 million tonnes in 2022 to just 0.3 million tonnes year-to-date in 2025, totalling roughly 7 million tonnes over the past four years. The report notes a shift away from broad innovation—spanning electrification, hydrogen feedstocks, and circular plastics—toward barely a single pilot initiative.

With closures now vastly outpacing new investment, the European chemical industry is contracting. Analysts warn that without urgent intervention, the sector faces mounting uncertainty and the erosion of Europe’s industrial competitiveness.