Policy
Europe faces chemical industry collapse as Chinese imports flood market: Ratcliffe
Between 2022 and 2027, 90 chemical plants have either closed or announced plans to shut, wiping out nearly 25 million tonnes of production capacity
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By ICN Bureau | December 19, 2025
INEOS founder Sir Jim Ratcliffe has issued a stark warning to Europe’s political leaders, urging immediate intervention to stop what he describes as the catastrophic collapse of the European chemical industry — and to prevent the continent becoming wholly dependent on imports.
“There is not going to be much left of chemicals in Europe unless politicians get to grips with it very soon,” he says.
“We now have huge levels of Chinese imports coming into Europe for two reasons. Firstly President Trump’s actions have pushed them out of the US and so it is now all coming here, and secondly, China has vastly overbuilt capacity. No Chinese company is making money and all of this product is finding its way into Europe at ‘dumping’ prices.”
Sir Jim said current conditions are worse than anything he has seen in decades, including the global financial crisis. “Chemicals, a one trillion Euro industry, cannot survive without tariff protection IMMEDIATELY alongside action on crippling and absurd carbon taxation. Energy prices are four times higher in Europe than in the US and that is totally unsustainable.”
The consequences, he said, are already devastating. Europe is facing a wave of shutdowns across its chemical sector, with major facilities closing at an accelerating pace.
Between 2022 and 2027, 90 chemical plants have either closed or announced plans to shut, wiping out nearly 25 million tonnes of production capacity. Replacing those assets would cost around €1 billion per plant — amounting to an estimated €1 trillion loss from Europe’s industrial base.
Sir Jim warned that the figures leave no room for complacency. “This data is clear evidence of decline that can no longer be ignored by the politicians. Someone needs to wake up before the entire industry is gone, leaving Europe dependent on China for the core materials that support defence, healthcare, food and manufacturing. We need action now.”
