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According to a report released on January 28 by the European Chemical Industry Council (Cefic), since 2022, the number of production capacities shut down in European chemical plants has increased by six times; over these four years, a total of 37 million tons of production capacity was lost, accounting for about 9% of Europe’s total chemical production capacity. This has resulted in 20,000 people losing their jobs directly in the chemical industry. Meanwhile, new investment has declined significantly, and concerns among industry experts regarding the competitiveness and long-term viability of Europe’s chemical industry are growing. Marco Menzinger, CEO of Cefic, warned: “The European chemical industry is under immense pressure and on the verge of collapse.” The rate at which businesses close doubled within a year; worse still, annual investment amounts were cut in half, dropping to almost zero. The situation facing European chemical industries is becoming increasingly severe, rather than improving. We must take decisive action this year, and these measures must be reflected directly at the factory production level. ” Data provided by Cefic show that between 2022 and 2025, the capacity of plants that were shut down in Europe’s chemical industry increased by six times; the capacity shut down in 2022 was 2.9 million tons, 8.7 million tons in 2023, 8 million tons in 2024, and it rose to 17.2 million tons in 2025. By 2025, the capacity of factories that had been shut down totaled 37 million tons. By industry, capacity in the upstream petrochemical sector decreased by 14%, with 17.8 million tons of capacity being shut down, accounting for 48% of the total capacity that was discontinued ； Next is the field of basic inorganic chemicals, where the capacity that was shut down amounted to 11.7 million tons, accounting for 32% ； The polymer industry shut down production capacity amounting to 5.4 million tons, accounting for 15% ； The special chemicals industry saw 2 million tons of production capacity shut down, accounting for 5%. A wave of closures in chemical production capacity is sweeping across Europe. The countries most affected are, in order: Germany (8.8 million tons, or 25%), the Netherlands (7.2 million tons, or 20%), the UK (4.5 million tons, or 12%), France (3.9 million tons, or 10%), Italy (2.5 million tons, or 7%), Belgium (2.3 million tons, or 6%), and Spain (1.6 million tons, or 4%). The remaining European countries together have a closed production capacity of 6 million tons, accounting for 16%. Among the main reasons given by companies for shutting down operations, the lack of competitiveness in terms of energy costs accounted for half of them; followed by demand-related factors (19%), overcapacity (9%), and regulatory factors (8%). The report highlights the impact of the current wave of closures in the chemical industry on the economy and society; in addition to 20,000 people losing their jobs directly, around 89,000 indirect jobs across Europe are at risk. To make matters worse, new investment and capital expenditure in Europe’s chemical industry have declined sharply; the annual level of investment dropped from 2.7 million tons in 2022 to 300,000 tons by 2025, with the total investment over those four years amounting to around 7 million tons. The total amount of confirmed capital expenditures has decreased by 81%; it was 7.6 billion euros in 2022 and has dropped to 1.5 billion euros by 2025. The report shows that this decline reflects a shift in investment directions: in the past, significant investments were made in various innovative areas such as electrification, hydrogen feedstocks, and recycled plastics, but now only a few pilot projects remain. The report warns that the European chemical industry is shrinking as companies close down at a much faster pace than new investment projects are established. This trend highlights the increasing uncertainty in the industry and raises serious questions about whether Europe can still maintain a competitive and resilient industrial base.