INEOS has informed employees at its Doel phenol plant that the site’s intended to restart has been driven as challenging market conditions persist to weigh at the European petrochemicals sector.
The company had formerly mentioned in June last year that manufacturing could restart as early as late 2027. Moreover, management now stated that the economic conditions had to support a sustainable restart have now not yet materialized during ongoing volatility in both European and global markets.
A main factors is weak point within the European automobile sector, one of the largest consumers of phenol and acetone. Demand for European-made vehicles has come beneath extreme pressure from a rise in Chinese car imports, without cutting demand for phenol and acetone across Europe.
The industry is also dealing with high energy costs and carbon taxation in Europe, charges that many international competition do not confront. Integrated with softer demand, those factors have generated a highly challenging economic environment for European petrochemical manufacturers.
As a result, INEOS Phenol’s working site in Gladbeck, Germany, will persist manufacturing beyond 2027.
The company stated the declaration was made now due to the arrangements for a restart at Doel might require to start instantly if operations were to resume next year.
In spite of the delay, the Antwerp site will persist supplying logistics services to local customers. INEOS also stressed that it’s persisting to invest in maintaining the Doel facility to guarantee the choice of a future restart stays viable.
The company stated that all important investments are being made to maintain the plant and keep all alternatives open till market conditions recover properly to support a sustainable return to manufacturing.
