Wave of Chemical Plant Shutdowns Spreads Across Europe! Dow, INEOS, and Trinseo Shut Down Again! The Plastic Market Is in the Red

Following SK Group, Solvay, BASF, INVISTA, and Lanxess, four major chemical giants—Dow, Arlanxeo, Trinseo, and INEOS—have announced shutdowns involving epoxy resins, polyether polyols, and butadiene rubber.Styrene-butadiene rubber, MMA,AcetonitrileAnd various other products.

(1) Dow: Closing a 94,000-ton polyether polyol plant

Recently, Dow announced that it will permanently shut down its polyether polyols production facility in Tertre, Belgium, by the end of the first quarter of 2026. The plant has a polyether polyols production capacity of 94,000 tons per year.

Last year, Dow announced a strategic review of its European assets, with a particular focus on its polyurethane business. The decision to close the polyether polyol production facility at its Tertre plant in Belgium was also based on the prior strategic assessment.

This decision was made against the backdrop of weak demand in the European polyether polyols market, particularly from key end-use sectors such as automotive, home appliances, construction, and upholstered furniture. Overcapacity and growing imports (with an average annual import volume of 286,000 tons between 2020 and 2024, reaching a record high of 323,000 tons last year) have further undermined the competitiveness of European producers, with China, South Korea, and Saudi Arabia being the main sources of supply.

The European polyether polyols market is under the dual pressure of weak demand and overcapacity, coupled with a continuous increase in imports primarily from Asia, making the industry's situation increasingly difficult. Dow pointed out that high energy costs, a burdensome regulatory environment, and the intensifying competitive pressure from imported products (particularly from Asia) are the key factors for making this decision.

In a letter dated September 29, 2025, Dow informed its customers of this plan. The shutdown will affect 37 official positions and 8 contractor positions. According to the Belgian General Federation of Labor, the polyether polyol production facility will likely be dismantled after its closure.

Dow emphasizes that customer supply will not be affected and will continue to maintain stable delivery of the existing product portfolio. Dow had a polyether polyols production capacity of 530,000 tons per year in Terneuzen, Netherlands, and an additional capacity of 60,000 tons per year in Tarragona, Spain.

Following INEOS's announcement in September 2025 to close its propylene oxide (PO) and propylene glycol (PG) production facilities in Cologne, Germany, Dow's announcement to close the polyether polyol production facilities at the Tertre plant in Belgium is another blow to the European polyurethane industry.

(2) INEOS: Shutting down two more plants, involving epoxy resin and chlorine.

On October 6, INEOS confirmed plans to close two production plants in Rheinberg, Germany, resulting in the loss of 175 jobs. The direct reasons for the planned closure are the high energy and carbon emission costs, as well as the lack of tariff protection.

Both factories produce essential chemicals. The allyl chemical department produces key components of epoxy resins, which are crucial for defense, aerospace, automotive, and renewable energy infrastructure. The electrochemical plant produces chlorine, which is essential for clean water, pharmaceuticals, industrial processes, and sanitation facilities.

The next day, on October 7, INEOS announced that it would cut 20% of the workforce at its acetic acid plant in Hull, UK. INEOS attributed the reason to the impact of cheap high-carbon imported products.

In addition, INEOS announced plans to close its propylene oxide (PO) and propylene glycol (PG) production facilities in Cologne, Germany, in September 2025, and will exit the relevant working groups of the European Chemical Industry Council (Cefic) in 2026.

(3) Aroli: Closing 140,000-ton synthetic rubber plant.

On October 2, Arlanxeo, a subsidiary of Saudi Aramco and one of the world's largest synthetic rubber suppliers, announced plans to halt operations at its synthetic rubber production facility in Port Jérôme, northern France. Arlanxeo stated that its plant is facing challenges such as "rising costs, global market imbalances, and increased regulatory pressure," leading to sustained losses and an inability to find any viable path to improve profitability. The synthetic rubber production capacity at the Port Jérôme facility is currently 140,000 tons per year, with products including Nd-PBR (neodymium-polybutadiene rubber) and solution polymerized styrene-butadiene rubber.

(4) Trinseo: Permanently closes MMA and acetone cyanohydrin businesses.

On October 6, 2023, Mitsubishi Chemical announced a series of strategic plans to permanently close its methyl methacrylate (MMA) production facility in Rho, Italy, as well as its acetone cyanohydrin (ACH) production facility in Porto Marghera, Italy, by the end of the year. ACH is a precursor to MMA. Consequently, Mitsubishi Chemical will purchase MMA raw materials from third-party manufacturers to maintain production. Meanwhile, the company will continue its depolymerization (chemical recycling) trials for PMMA at the site.

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