INEOS to close two chlorvinyl, specialty PVC plants in Germany

Source | INEOS

Global chemical company INEOS Group (London, U.K.) has confirmed its intention to shut down two production units in Rheinberg, Germany, with the loss of 175 jobs. The proposed closures are the direct result of crippling energy and carbon costs, and a lack of tariff protection. The intention to close, which has been shared with employees, reflects a deepening crisis across Europe’s chemical sector.

“While competitors in the U.S. and China benefit from cheap energy, European producers are being priced out by our own policies and absence of tariff protection,” notes Stephen Dossett, CEO of INEOS Inovyn, the company’s chlorvinyls and specialty PVC producer. These chemicals can be used in the production of fiber-reinforced composite materials. “Meanwhile, high-emission imports flood our market unchecked. It’s completely unsustainable and if not immediately addressed will lead to further closures, job losses and increased dependency on other regions for essential materials.”

Both plants produce essential chemicals. The Allylics unit makes the key ingredient for epoxy resins vital in defense, aerospace, cars and renewable energy infrastructure. The electrochemical facility produces chlorine crucial for clean water, medicines, industrial processes and sanitation.

These closures are part of a wider trend as Europe’s competitiveness collapses, INEOS points out. Since 2019, output in Germany has dropped by 18%, driving job losses and reduced investment. INEOS has closed plants in Grangemouth (U.K.) and Geel (Belgium). It is closing Gladbeck (Germany), and has mothballed assets in Tavaux (France) and Martorell (Spain).

INEOS will now focus on preserving its remaining PVC operations in Rheinberg to support around 300 skilled jobs. This requires urgent state support to help cover significant local transitioning costs.

The business deeply regrets the decision to close Rheinberg’s cell rooms and Allylics operations, and is conscious of the impact it will have on staff and wider German supply chain. “INEOS Inovyn will work closely with partners and employees to minimize the impact.” says Dossett “We are doing everything we can to protect what is still viable, but we can’t do it alone. If governments want to keep strategic manufacturing in Europe, they must help manage this transition and restore competitiveness.”