European Chemical Plant Closures Outpace Investment, Cefic Report Finds

Capacity shutdowns and stalled capital spending are raising concerns about long-term manufacturing competitiveness.

Jan. 28, 2026

2 min read

The European Chemical Industry Council (Cefic) noted in a new report a sharp acceleration in chemical plant closures across Europe, with shutdowns increasing sixfold since 2022 and reaching a cumulative 37 million metric tons of capacity.

According to the report, the closures represent about 9% of total European chemical production capacity and have resulted in the loss of approximately 20,000 direct jobs in the chemical industry. The report also estimates that an additional 89,000 indirect jobs across Europe are at risk due to the sector’s role in regional value chains.

Cefic said the pace of closures has continued to increase while new investment activity has slowed significantly. Annual announced investment capacity fell from 2.7 million metric tons in 2022 to 0.3 million metric tons year-to-date in 2025, totaling about 7 million metric tons over the 2022–2025 period, according to the report.

“The sector is under severe stress and breaking,” said Marco Mensink, director general of Cefic, in a statement. “The rate of closures has doubled in a year, and even worse, annual investments are half and close to zero. We need decisive action this year, with impact at factory floor level.”

According to the organization, the investment slowdown reflects a shift away from broader deployment of technologies such as electrification, hydrogen-based feedstocks and circular plastics toward limited pilot-scale initiatives. With closures now significantly exceeding new investments, Cefic said the European chemical industry is entering a period of contraction that raises concerns about long-term industrial resilience.

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