What is the scale of chemical production capacity that has been shut down or sold in Europe since 2022, and which country is most affected?

Since 2022, over 25 million tonnes of chemical production capacity have been shut down or sold in Europe, representing approximately 9% of the region's total chemical capacity in 2021; Germany is the most affected country, with around 7 million tonnes of chemical capacity already exited or set to exit the market.

Why are European chemical companies relocating investments overseas, and where are they primarily moving?

European chemical companies are relocating investments overseas due to prohibitively high energy costs, uncertain raw material supply (especially natural gas), stringent carbon pricing, and weaker downstream demand; currently, about three-quarters of German energy-intensive chemical firms are shifting investment abroad, with the United States — benefiting from low energy prices and government subsidies — being the top destination for new or expanded facilities by companies including Shell, BASF, and Linde.

European Chemical Industry Faces Structural Crisis

Jun 5, 2026

Since 2022, over 25 million tons of chemical capacity have been shut down in Europe due to high energy costs and weak demand. Major players like BASF are relocating investments abroad as profit margins hit historic lows amid intense global competition.

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European Chemical Industry Faces Structural Crisis

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