A global wave of plant closures, divestments, and strategic reviews is redefining the petrochemical industry as companies respond to oversupply from China and soaring costs in Europe.
At the center of the turmoil is the European Union, where firms like Dow Inc., ExxonMobil, and TotalEnergies are shutting down uncompetitive facilities, particularly older steam crackers and upstream assets.
In July 2025, U.S.-based Dow announced closures in Germany and Britain, while ExxonMobil earlier ended operations at its French steam cracker due to €500 million in losses since 2018.
Shell sold its Singapore chemical hub in April and is now reviewing its European and U.S. chemical operations, enlisting Morgan Stanley to assess future options.
BP is actively seeking buyers for its Gelsenkirchen refining and petrochemical assets in Germany, joining the trend of rationalization across Europe.
Italy’s Eni is shutting down its last steam crackers and a polyethylene plant this year, citing long-term unviability and market glut.
LyondellBasell entered talks in June to sell four European plants to AEQUITA and is evaluating additional facilities in Italy and the Netherlands.
French oil giant TotalEnergies plans to close its oldest Antwerp steam cracker by 2027, warning of a looming ethylene oversupply in Europe.
Poland’s Orlen has delayed its olefins project until at least 2030 and will slash investment by a third due to changing market conditions.
Meanwhile, U.S. and Middle Eastern producers remain relatively unaffected, as Asia scales back capacity more cautiously amid evolving global market dynamics.