The rate of closures in the EU chemical industry is unprecedented
Cefic supports the new Critical Chemicals Alliance (CCA) General Assembly as a vital move to implement the EU's Chemical Industry Action Plan, especially as Europe's chemical sector faces rising closures and falling investment, stressing that action must now focus on delivering solutions, not just identifying problems, to boost competitiveness and secure crucial supply chains.
Europe's chemical sector policy has seen major shifts since 2024, with initiatives like the Antwerp Declaration, the Clean Industrial Deal, and the 2025 Chemical Industry Action Plan highlighting its strategic role; now, the Critical Chemicals Alliance (CCA) must transform this recognition into practical, swift action to secure Europe's industrial future by addressing risks like plant closures and trade disruptions through investment and improved monitoring.
“The Critical Chemicals Alliance is a vital step to safeguard Europe’s chemical industry. We need to act urgently to deliver high-quality outcomes in the first half of 2026 that companies can feel on the ground — ensuring competitive production, resilient supply chains, and a strong industrial base that can drive innovation and support the climate transition. This requires robust, evidence-based approaches to assess criticality and resilience, and to guide strategic investment not only in molecules and sites, but also in the wider chemical sector that underpins so many value chains,” said Marco Mensink, Director General of Cefic.
A shared purpose: preserving competitive chemical production in Europe
A shared and clearly reaffirmed objective among the European Commission and Member States will be essential: to preserve a sufficient amount of competitive chemical production in Europe to support a strong, resilient and low-carbon economy.
As a sector identified as strategic for EU industrial sovereignty, many chemical molecules are critical for one or more value chains. The Alliance should therefore not limit its work to a narrow list of critical molecules or sites, but also serve as a platform to address horizontal and structural challenges affecting the sector as a whole – while recognising that some value chains require more urgent attention than others.
Urgency, without underestimating complexity
The rate of closures in the EU chemical industry is unprecedented. While structural reforms will take time, time is not neutral for an industry facing accelerating capacity losses and declining investment. Cefic therefore stresses the need for short-term deliverables already in the first half of 2026, with clear timelines and responsibilities for each Working Group.
At the same time, the Alliance must fully acknowledge the complexity of the chemical sector. Europe’s chemical industry is characterised by deep interdependencies – integrated sites, industrial clusters, and strong links with upstream and downstream industries. Decisions affecting one molecule or site often have cascading effects across entire value chains.
A robust, evidence-based approach to criticality and resilience
Cefic strongly supports the development of a robust, evidence-based methodology to assess criticality and resilience. Given that almost every molecule is critical for at least one value chain, the definition of criticality is fundamental. Any methodology must be neutral, transparent, measurable, and based on a value-chain approach, rather than pre-established lists.
Resilience should not be understood solely as security of supply in crisis situations. It must also reflect Europe’s ability to maintain growth, innovation and technology. The methodology developed by the Alliance should help the EU and Member States prioritise actions in support of strategic sectors and value chains, and make explicit the implications for molecules or sites considered non-critical.
Addressing competitiveness in a holistic way
Resilience cannot be achieved by supporting individual molecules or sites alone, nor by over-reliance on state aid, which risks fragmenting the internal market. The Alliance must instead address competitiveness holistically, through a coherent set of structural measures.
Key areas include:
From discussion to concrete outcomes
The success of the Critical Chemicals Alliance will ultimately be measured by its concrete outcomes: clear guidance to Member States and regions, actionable policy recommendations, and the ability to adjust course where necessary.
Cefic remains fully committed to contributing constructively to the Alliance’s work. The chemical industry does not seek protection from competition, but the conditions to compete and invest in Europe. Delivering on this objective – with urgency and with quality – is now the shared task ahead.
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