A latest report unveils a significant rise in chemical plant closures across Europe, with capacity lost reaching 37 million tons—roughly around 9% of the continent’s overall manufacturing—and resulting in 20,000 direct job losses. The study also alerts of a sudden slowdown in new investments, alerting over the sector’s competitiveness and long-term feasibility.
“It’s not a question of being 5-minutes earlier than or after twelve. The sector is under intense stress and breaking. The rate of closures has doubled in a year, and even worse, yearly investments are half and close to zero. On each aspects, the speed is increasing, not slowing. We want decisive action this year, with effect at manufacturing facility floor level,” the report states.
The human cost of the crisis stretches far beyond plant gates. An calculated 89,000 indirect jobs are at risk across Europe, emphasizing the chemical industry’s central role in regional supply chains.
At the same time , funding in new capacity has dropped. Annual declared investment fell from 2.7 million tons in 2022 to just 0.3 million tons year-to-date in 2025, totaling roughly 7 million tons during the last 4 years. The report notes a shift away from wide innovation—spanning electrification, hydrogen feedstocks, and circular plastics—toward hardly a single pilot initiative.
With closures now vastly surpassing new investment, the European chemical industry is contracting. Analysts warn that without urgent intervention, the sector confronts mounting uncertainty and the erosion of Europe’s industrial competitiveness.
