The global petrochemical sector is undergoing a wave of closures and disposals as companies adjust to increasing capacity in China and high costs in Europe. The European Union is experiencing the strongest impact from this rationalization, while the United States and Middle East are relatively insulated.
Asian petrochemical producers are also reducing capacity, but at a slower pace compared to Europe.
U.S.-based LyondellBasell is in talks to sell four olefin and polyolefin plants in France, Germany, Britain, and Spain, with options being evaluated for factories in the Netherlands and Italy.
Dow Inc plans to shut three European sites including an ethylene cracker in Germany, and idled a plant in the Netherlands earlier this year.
ExxonMobil announced closure of its steam cracker and chemical production at its Gravenchon site in France due to sustained losses.
Shell completed the sale of its Singapore energy and chemicals park and is conducting a strategic review of its chemical assets in Europe and the U.S.
BP is seeking buyers for its refinery, cracker, and downstream assets in Germany, while TotalEnergies plans to close its oldest steam cracker in Antwerp by 2027.
Italy’s Eni will complete the closure of its last two steam crackers and a polyethylene plant this year as part of its restructuring.
Other companies like Orlen, Huntsman, Eneos, and SABIC are scaling back or closing facilities in Europe and Asia due to reduced demand and overcapacity challenges.