Another large ethylene plant permanently shut down!

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The wave of shutdowns of petrochemical plants in Europe continues, with Saudi Basic Industries Corporation (SABIC) planning to permanently close a large ethylene plant in the UK. On June 25, SABIC announced in a statement that it would permanently shut down its 865,000 tons per year olefin No. 6 steam cracker facility in Wilton, Teesside, UK. According to Platts, the Wilton ethylene plant uses naphtha as raw material and cracks it into olefins for use in downstream polymer production, with an annual production capacity of 865,000 tons of ethylene, 415,000 tons of propylene, and 100,000 tons of butadiene. The facility opened in 1979 and has been shut down since a maintenance overhaul was carried out in October 2020. A major upgrade was subsequently carried out to enable it to use cheaper ethane as a raw material for producing ethylene. SABIC stated that the decision to close permanently was the result of a comprehensive analysis aimed at enhancing competitiveness and aligning with long-term strategic priorities. Meanwhile, its low-density polyethylene plant in Teesside and related logistics will continue to operate as normal. Under the combined pressures of weak demand, overcapacity, and rising costs, Europe’s chemical industry continues to face negative developments. The Wilton ethylene plant is the sixth European cracking plant to announce its closure since April 2024. As a result, Europe’s total ethylene production capacity will be reduced by about 4.3 million tons per year. Over the past year or so, other cracking units that Europe has announced it will shut down include ExxonMobil’s cracking unit in Gravelines, France; Sabic’s cracking unit in Hoogovens, the Netherlands; Eni’s cracking units in Brindisi and Ploiești; and TotalEnergies’ old cracking unit in Antwerp, Belgium.