Ineos subsidiary shuts down operations at Gladbeck facility

Shutting Down Shop: Ineos Bids Adieu to Gladbeck Plant due to Europe's Unfriendly Business Environment

Subsidiary of INEOS shuts down plant in Gladbeck. - Ineos subsidiary shuts down operations at Gladbeck facility

Get ready to bid farewell to another manufacturing giant leaving the European scene! Ineos, the heavyweight in the chemical industry, is pulling the plug on its phenol division plant in Gladbeck, with 279 employees on the chopping block. This unfortunate development is due to Europe's high energy costs and stringent CO2 tax policies, making it challenging to compete with Chinese imports in an oversaturated global market.

Ineos explains that the European landscape makes it tough to get a piece of the pie when it comes to imports and offers a less expensive alternative, especially from China. In a statement, the company voiced its concerns about the disadvantageous position, with high energy prices and strict carbon tax regulations contributing to a deindustrialization trend across the continent.

Negotiations are underway with the works council, employees, customers, and suppliers to orchestrate a smooth transition. No clear shutdown date has been set, and operations will continue in the meantime. If you're wondering about the antagonist in this tale, production will continue at their second phenol site in Antwerp, as it's not financially viable to keep both plants humming simultaneously.

The Gladbeck plant, now a shadow of its former glory, has been a pillar in the chemical industry since 1954. It specializes in producing phenol and acetone, substances that find their way into motor vehicle components (headlights and taillights, brake pads), printed circuit boards, wind turbine blades, and industrial solvents, among other applications. The annual production capacity of this mammoth plant clocks in at around 650,000 tons.

• Insight: The shuttering of the Gladbeck phenol plant will have significant repercussions on the European plastics industry, disproportionately impacting local production capacity and increasing reliance on importation from economically advantageous regions, such as China. This closure breaks the European manufacturing chain and may lead to supply chain vulnerabilities, with potentially higher costs for local manufacturers of plastics and related products.
• Ineos Paraform
• Gladbeck
• Chemical Powerhouse
• Deindustrialization
• European Manufacturing
• Plastics Industry
• The closure of Ineos' Gladbeck plant, a key player in the European manufacturing of chemical products like phenol and acetone used in various industries such as automotive, electronics, renewable energy, and plastics, could lead to a reliance on imports from more economically profitable regions like China.
• This decision by Ineos, amid its struggle with Europe's high energy costs, strict carbon tax regulations, and unfriendly business environment, could accelerate deindustrialization and potentially undermine the financial stability of local vocational training programs in the chemical industry, as fewer opportunities area available for vocational training and career advancement.

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