On September 26, Texas-based petrochemical giant LyondellBasell and German chemical company Covestro said goodbye to their Maasvlakte plant in the Netherlands, which produced propylene oxide (PO) and styrene monomer (SM).
Announced on March 25, the closure of the site, which began operations in 2003, is the result of “global overcapacity, increased imports from Asia, and high production costs in Europe,” LyondellBasell said. All of this made it “impossible to keep the plant operational,” it added.
The site, which employed 160 people, enjoyed “significant carbon efficiency compared to similar facilities around the world,” the American group said in late September.
Declining market share
The plastics industry as a whole is facing the same challenges, according to Plastics Europe’s annual report released on Wednesday, October 8. The organization — which represents around 100 companies accounting for more than 90% of European production — warns that the sector is now “on the brink of collapse.”
Europe produced slightly more plastics in 2024 than in 2023, reaching a total of 54.6 million tons (+0.4%). However, this modest rebound follows a sharp drop the previous year, and overall production remains well below 2018 levels, when output reached 62.3 million tons.
“This does not reflect a drop in consumption, but rather an imbalance in the trade balance,” said Jean-Yves Daclin, Director General of Plastics Europe France, told AFP. Europe – in the definition of which the organization includes the 27 member countries of the European Union, the United Kingdom, Norway, and Switzerland – “is producing less and importing more from abroad,” he added.
Globally, plastic production is still growing at a steady pace, reaching 430.9 million tons of virgin plastic in 2024 (+4% compared to 2023). More than half of this output originated in Asia (57.2%), with China alone accounting for over a third (34.5%).
Asia also leads the market for so-called “circular” plastics — those produced from mechanical recycling, biomass, chemical recycling, or carbon capture. China accounts for 30.3% of global production, while the rest of Asia contributes 24.6%. Europe’s share stands at 19%, according to Plastics Europe.
Overall, Europe’s market share has fallen from 22% in 2006 to 12% in 2024.
Energy costs
Sales of European plastics producers have taken a hit, falling by 3% in 2024 to EUR 398 billion (down from EUR 410 billion in 2023). The sector remained a net exporter in value terms, with a surplus of EUR 12.3 billion. However, in recent years, the volume of plastics imported into Europe has surpassed the volume exported.
Plastics Europe attributes the slowdown in European production to declining competitiveness, driven in particular by high electricity and gas prices. The organization also points to “stricter environmental regulations than elsewhere,” high labour costs, and downward pressure on prices from international competition.
Estimating that around 35,000 of the 1.5 million employees in the sector lost their jobs between 2022 and 2024 in Europe, the organization is calling for “urgent EU and national policy action,” particularly on energy costs. It also calls for the “enforcement of EU legislation at its borders” to be strengthened.
The chemical industry as a whole is facing "unprecedented challenges," also insists Cefic, the European lobby for chemical manufacturers.
