Introduction

The European manufacturing and chemical industries are facing a significant wave of plant closures and refinery shutdowns due to rising energy costs, regulatory pressures, and shifting global economic dynamics. Major players, including BASF, LyondellBasell, ExxonMobil, and SABIC, have announced plans to shut down key facilities in various countries, reflecting broader structural challenges. The following article explores the most critical plant closures set for 2025 and 2026, analyzing the reasons behind these decisions and their potential impact on the European industrial landscape.

Ethylene Plant Closures

ExxonMobil’s Gravenchon Cracker in France

ExxonMobil has permanently shut down its ethylene cracker at the Gravenchon site in France. The closure, which began in 2024 and will be finalized by mid-2025, is primarily due to high operational costs and an increasingly competitive global market. European ethylene producers have struggled against cheaper imports from the United States and the Middle East, where lower feedstock prices have made production more cost-efficient. ExxonMobil cited energy price volatility and stringent EU environmental regulations as additional reasons behind the shutdown¹.

SABIC’s Olefins 3 Cracker in Geleen, Netherlands

SABIC has announced the permanent shutdown of its Olefins 3 cracker at the Geleen site in the Netherlands by early 2026. The plant, which produces ethylene and propylene, has become economically unviable due to high energy prices, the cost of complying with EU climate policies, and the global oversupply of ethylene². The closure marks another blow to the Dutch petrochemical industry, which has been struggling with reduced margins and declining investment in traditional fossil-based chemical production.

LyondellBasell’s Brindisi Site in Italy

LyondellBasell is set to close its ethylene cracker in Brindisi, Italy, by the end of 2025. The decision aligns with the company’s broader strategy to optimize operations and focus on high-value chemical production. The Brindisi site has suffered from a combination of weak demand, competition from low-cost producers in Asia and the U.S., and the EU’s tightening carbon emissions policies³.

Polypropylene and Other Chemical Plant Closures

LyondellBasell and Covestro’s Maasvlakte POSM Plant (Netherlands)

One of the most significant petrochemical shutdowns in Europe is the closure of LyondellBasell and Covestro’s Propylene Oxide Styrene Monomer (POSM) production unit at the Maasvlakte site in the Netherlands. Scheduled for decommissioning by 2026, the plant has faced severe profitability challenges due to overcapacity in global markets, competition from imports, and the growing push toward bio-based alternatives⁴.

ExxonMobil’s LDPE Plant in Belgium

ExxonMobil has announced plans to downsize its Low-Density Polyethylene (LDPE) plant in Belgium by 2025. The move is part of a broader restructuring effort aimed at improving efficiency and cutting costs. LDPE demand in Europe has declined due to the growing use of recycled plastics and regulatory pressure to reduce single-use plastic consumption⁵.

Solvay’s Chemical Plants in France

Solvay has initiated a plan to shut down multiple European production sites, including facilities in France, as part of a strategic realignment. The affected plants, which focus on specialty chemicals, have struggled with rising operational costs and declining demand in key sectors such as automotive and construction⁶.

BASF’s Ludwigshafen Complex (Germany)

BASF, Europe’s largest chemical producer, has announced a series of plant closures at its Ludwigshafen site in Germany. The complex, one of the world’s largest integrated chemical production sites, has been heavily impacted by soaring natural gas prices and sluggish demand in Europe⁷.

SABIC’s Cartagena Plant (Spain)

SABIC has confirmed the closure of its polycarbonate production plant in Cartagena, Spain, by mid-2025. The decision is attributed to poor profitability, high energy costs, and declining European demand for virgin plastics⁸.

Refinery Closures

Grangemouth Refinery (Scotland)

One of the most significant refinery closures in Europe is the planned shutdown of the Grangemouth refinery in Scotland. Operated by Petroineos, a joint venture between Ineos and PetroChina, the refinery has struggled with financial losses and declining profitability. The facility, which supplies a significant portion of the UK’s fuel demand, will transition into a fuel import terminal after 2025⁹.

Gunvor’s Antwerp Refinery (Belgium)

Swiss commodities trader Gunvor has announced plans to shut down its Antwerp oil refinery by 2026. The facility has been facing operational challenges due to aging infrastructure and reduced processing margins¹⁰.

TotalEnergies’ Grandpuits Refinery (France)

TotalEnergies is in the process of converting its Grandpuits refinery near Paris into a biofuels and bioplastics production site. The transition, expected to be completed by late 2025, marks a significant move away from traditional fossil fuel refining¹¹.

Conclusion

The European industrial landscape is undergoing profound changes as companies adapt to economic, regulatory, and market pressures. The closures of major ethylene crackers, polypropylene plants, and refineries underscore the challenges facing traditional manufacturing. While these shutdowns may help companies optimize operations and focus on sustainable technologies, they also pose risks to employment, supply chain stability, and Europe’s long-term industrial competitiveness. As the region navigates this transition, businesses and policymakers will need to develop strategies that balance economic resilience with environmental sustainability.eed to develop strategies that balance economic resilience with environmental sustainability.

1. Argus Media – ExxonMobil to shut down Gravenchon Cracker
2. CEN.ACS – SABIC’s Olefins 3 Cracker Closure
3. CEN.ACS – LyondellBasell Brindisi Closure
4. Reuters – LyondellBasell, Covestro Maasvlakte Closure
5. ChemOrbis – ExxonMobil LDPE Belgium Closure
6. CEN.ACS – Solvay Plant Closures in France
7. CEN.ACS – BASF Ludwigshafen Shutdowns
8. CEN.ACS – SABIC Cartagena Shutdown
9. The Times UK – Grangemouth Refinery Closure
10. Financial Times – Gunvor Antwerp Refinery Closure
11. Reuters – TotalEnergies Grandpuits Refinery Conversion