Recently, Marcus Kammett, CEO of BASF in Germany, said that the restructuring process being pushed forward in the European chemical industry in the past few years has not yet ended, and the market has not yet returned to balance, but the resulting adjustment is a necessary step to resolve overcapacity in the region.
"There will be more capacity shut-downs, corporate bankruptcies and restructurings in the future. It can be said that the current sale of some assets in Europe also means that the restructuring process has been delayed," he said at BASF's Ludwigshafang headquarters." "The era of restructuring in the European chemical industry is not over," he stressed."
According to ICIS data, nearly 25 million tonnes of chemical production capacity have been shut down, sold or entered the shutdown/sale assessment phase in Europe since 2022, equivalent to 9% of the region's total chemical production capacity in 2021. Germany is the hardest hit country in the world, with about 7 million tons of chemical production capacity shut down or facing shutdown and sale, followed by the Dutch chemical industry. The centralized withdrawal of a large number of petrochemical production plants and the bankruptcy of a number of enterprises are gradually weakening the overall advantages of the tight industrial clusters that have long supported the competitiveness of the European chemical industry. Nonetheless, Kemet believes that these capacity withdrawals are necessary to restore commercial competitiveness to the European chemical industry.
"From BASF's point of view, we also think this is necessary. Trade protectionism is not good for the industry, it is not good for BASF, because the problem of overcapacity in Europe has to be solved, and it will be the smaller, non-integrated production companies that are in trouble," he said."