Image: Jonathan Chng via Unsplash
European plastics producers are shutting plants as falling production and a global surplus of cheap materials squeeze competitiveness, Financial Times reported.
Plastic production in Europe dropped 8.3% in 2023, marking a decline in mechanical recycling for the first time since 2018, driven by weakening demand, according to Plastics Europe. Its director, Virginia Janssens, warned of “deindustrialisation” and increased reliance on “less sustainable imports.” Germany remains Europe’s top plastic producer.
While global plastics production grew by 3.4% in 2023, Europe saw a sharp decline, lagging behind nations like China and the US, which expanded their output. S&P Global reports that China alone accounted for 60% of new petrochemical capacity last year.
According to the data, Europe’s share of the global plastics market has plummeted from 28% in 2006 to just 12% in 2023.
The European Commission’s ambitious climate goals, set during its previous term ending in June, have led to regulations that businesses argue are stifling growth.
An oversupply of virgin plastic globally has weakened the demand for recycled materials. Plastics Recyclers Europe recently described the decline in the European recycling market as “alarming,” warning it is forcing many recyclers to shut down.
This year, major players like ExxonMobil and Sabic announced plans to close petrochemical plants in Europe, while companies such as LyondellBasell, Versalis, and Trinseo are evaluating or shutting down operations.
Robin Graham, director at Ineos, a leading producer of olefins and polymers, criticised Europe’s regulatory demands as a “self-inflicted wound.” He warned that the transition to sustainable production would stall without fresh investments. Graham noted that many competitors have already shut down operations in Europe, and if the trend continues, the green transition will fail. He also highlighted that new investments are being channelled to the US and Asia, shifting plastics production out of Europe—an outcome he described as “completely counterproductive.”
