Energy Price Surge Leads to Shutdown of German Chemical Plants

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The rise in energy prices following Russia's invasion of Ukraine has had a significant effect on European markets. The resulting uncertainty and soaring gas prices, especially after Russia halted gas supplies to numerous EU countries, have plunged Europe, particularly Germany, into an energy crisis. This situation has led to the permanent shutdown of chemical plants, further straining the economy.

Industrial Info has been closely monitoring the shutdowns and possible closures of various facilities due to this crisis. For example, Lanxess (Cologne, Germany) has implemented cost-cutting measures across Europe, which include substantial layoffs in Germany, citing high energy costs and reduced production demand. Lanxess plans to stop hexane oxidation at its Krefeld-Uerdingen site by 2026 due to competitive pressures.

Similarly, Trinseo (NYSE:TSE) (Wayne, Pennsylvania), a specialty material solutions provider, is contemplating closing its styrene facility in Boehlen, Germany, due to the detrimental cost implications of the current energy climate in Europe.

Celanese Corporation (NYSE:CE) (Irving, Texas) has decided to shut down two polymer production facilities at its Hamm site this year, driven by high raw material costs and energy prices.

Last year, Allnex (Frankfurt, Germany) announced the cessation of operations at its manufacturing site in Hamburg, citing rising energy and raw material costs, as well as inflation impacting its competitiveness in Europe.

BASF SE (Ludwigshafen, Germany), a key industry player, has outlined plans to close several plants at its Ludwigshafen site due to high production expenses. The company has already shut down some facilities in 2023 and aims to implement additional closures gradually through the end of 2026, which will affect approximately 700 jobs.

Overall, Industrial Info has been tracking 12 closure projects over the past year in Germany as companies seek to lower production costs. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project reports.

Click on the image at right for a map showing the location of Chemical Processing plant closure projects in Germany.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).