INEOS has informed employees at its Doel phenol plant that the site's planned restart has been pushed back as challenging market conditions continue to weigh on the European petrochemicals sector.

 

The company had previously indicated in June last year that production could resume as early as late 2027. However, management now says the economic conditions needed to support a sustainable restart have not yet materialised amid ongoing volatility in both European and global markets.

 

A key factor is weakness in the European automotive sector, one of the largest consumers of phenol and acetone. Demand for European-made vehicles has come under intense pressure from a surge in Chinese car imports, directly reducing demand for phenol and acetone across Europe.

 

The industry is also grappling with high energy costs and carbon taxation in Europe, expenses that many international competitors do not face. Combined with softer demand, these factors have created a highly challenging economic environment for European petrochemical producers.

 

As a result, INEOS Phenol's operating site in Gladbeck, Germany, will continue production beyond 2027.

 

The company said the announcement was made now because preparations for a restart at Doel would need to begin immediately if operations were to resume next year.

 

Despite the delay, the Antwerp site will continue providing logistics services to local customers. INEOS also stressed that it is continuing to invest in maintaining the Doel facility to ensure the option of a future restart remains viable.

 

The company said all necessary investments are being made to preserve the plant and keep all options open until market conditions recover sufficiently to support a sustainable return to production.