A new competitiveness study from Cefic has confirmed and emphasised the severity of the situation facing the EU chemicals industry.
Over 11 million tons of capacity are scheduled for closure in 2023-2024, affecting 21 major sites.
By delving into the current state of the European chemical industry and its global competitiveness on the global stage, the report reinforces the Antwerp Declaration has used a wealth of data and comparative illustrations to issue a stark warning: the European chemical industry is at a breaking point.
Marco Mensink, Cefic’s Director General, says, “For the sake of our industry and the 1.2 million of workers it directly employs, we need bold and urgent action today.
“Lowering energy costs, ensuring access to critical raw materials, and fostering innovation are absolutely critical.
“If our industry falls, entire value chains fall with it: healthcare, automotive, renewable energy, and the breakthrough Green Deal technologies that are essential for the transition. We say it again, louder and clearer: for the future of Europe, we need our new EU decision makers to act now!”
The competitiveness study, commissioned to Advancy, explores how the EU chemical industry compares with competition in the USA, China, Japan, Brazil, India and the Middle East, the main cost and non-cost drivers for competitiveness in Europe.
It concludes that the competitive position of the industry – a fundamental building block of everyday life – has weakened on both cost and non-cost factors varying from high energy, environmental and regulatory costs to administrative hurdles around innovation and human capital. The latter often results in delayed investments or decisions to invest outside of Europe.
In a previous statement, Cefic urged the EU’s new commissioners to ‘take urgent and bold action’ to secure Europe’s industrial future.
The statement added, ‘The situation is critical. At two to four times higher than its competitors, energy prices in Europe are unsustainably high, and the EU’s regulatory system is too complex, slow, and often contradictory.
‘These challenges make it exceedingly difficult not only to operate but also to transform in alignment with the Green Deal objectives. Investments and jobs are being driven away, while regions with simpler, faster, and more supportive frameworks eagerly take Europe’s place. This is not just a warning—it’s already happening.
We call on you to carefully assess the regulatory situation as well as the added value of all enacted policies before launching major new proposals.
‘Our European chemicals industry and the 1.2 million workers that it directly employs depend on you and are now watching you. Never have our companies’ employees paid so much attention to the decisions taken in Brussels.
‘There should be no more plant closures and job losses as a consequence of Europe’s heavy, costly and slow system. We must work together quickly and efficiently to make Europe the best place to do business.
