Covestro To Cut Antwerp PC Production Capacity, Close Bisphenol A Plant

Covestro AG has announced plans to shut down three of its four polycarbonate (PC) production lines in Antwerp, Belgium, as well as the bisphenol A plant at the site.

Citing persistent overcapacity in Asia and rising energy costs in Europe, the company stated that its current PC operations in the region are “economically unsustainable.”

The company stated that rationalization could affect up to 260 of the 970 employees at the site, marking the latest sign of a broader industry retreat from European commodity chemicals production as producers strive to compete with lower-cost Asian rivals.

Covestro did not provide a specific timeline for the proposed closure in its October announcement. The company stated that it has initiated formal consultation proceedings with employee representatives in accordance with Belgian law. It added that no final decision will be made until this process is completed.

According to Covestro's data, the nameplate capacity of the Antwerp site is 240,000 metric tons per year for PC, and the BPA capacity is estimated at approximately 245,000 tons per year.

A Covestro spokesperson declined to disclose to S&P Global Platts how much polycarbonate (PC) capacity in Antwerp will be retained following the proposed restructuring.

Covestro has described its PC operations in Antwerp as “increasingly loss-making since 2022,” due to weak European demand, high energy and production costs, and a wave of new capacity additions in Asia, leading to persistent global oversupply of standard PC grades.

It states that global PC capacity utilization has declined significantly and is expected to remain sluggish in the foreseeable future.

Europe’s chemical industry is at a crossroads. Markus Steilemann, CEO of Covestro, stated, “The structural challenges are severe, and market realities have undergone fundamental changes.” “We need to adjust our portfolio to focus on areas where we can compete successfully in the long term, thereby securing the future of our production in Europe.”

The company stated that, to date, European industrial policy has “failed to adequately address these structural challenges and to narrow this competitiveness gap,” adding that it believes “inaction now will undermine the long-term economic viability of Antwerp.”

The closure of the bisphenol A precursor plant is a direct consequence of PC rationalization, as bisphenol—produced using acetone and phenol as raw materials—is the primary raw material for PC resin.

In an email response, Covestro’s press office stated that it would have the option to source bisphenol A from its global production network and, if necessary, from external suppliers.

Website Commitment

Covestro has reaffirmed its commitment to the broader Antwerp site and stated that it maintains a clear long-term vision of keeping the cluster as a core node in its European production network. The majority of activities at the site will be retained and are not subject to the announced closures.

It stated that Antwerp’s remaining PC production line would shift from standard commodity grades to focus on high-value specialty grades.

It added that the previously announced investment in the new aniline production unit at the cluster would proceed as planned, reinforcing the site’s role as a major aniline hub in Europe. Aniline is a di- Dimethyl phenyl isocyanate, a key raw material, is a critical component in polyurethane production.

Covestro stated that its polyether production lines, another polyurethane intermediate, and its technology center in Antwerp are not affected by the restructuring.

Thorsten Dreier, Chief Technology Officer of Covestro, stated, “Commodity production in Europe is becoming increasingly uncompetitive, while we continue to see attractive opportunities in high-value specialty materials. To remain competitive globally, we need a cost base that enables us to invest in innovation and future-oriented technologies.”

Covestro stated that in 2024, it commissioned its first industrial-scale PC copolymer plant in Antwerp, with an investment amounting to a double-digit million-euro figure.

Covestro is owned by XRG PJSC, the investment subsidiary of the Abu Dhabi National Oil Company.

On October 13, Platts assessed DDP Northwest Europe BPA at €1,770 per metric ton, PC extrusion grade at €2,000 per metric ton, and GP molding grade at €2,300 per metric ton.