Ineos Intents to Permanently Close Gladbeck Site in Germany
Ineos Phenol announced its intention to permanently stop production at their site in Gladbeck, Germany.
According to the world's largest producer of phenol and acetone, sky high European energy costs alongside Europe’s punitive CO2 tax policy have combined to leave Europe uncompetitive against imported Chinese production and a global oversupply.
After carrying out a detailed strategic review, the business intends to permanently exit the Gladbeck site located in the northern Ruhr area in the state of North Rhine-Westphalia at a date to be confirmed. Europe’s lack of competitiveness has already led to the exit of several downstream consumers of phenol and acetone to such an extent that local demand no longer supports the operation of the Gladbeck site which dates from 1954 and requires significant future investment.
Commenting on the plans, Sir Jim Ratcliffe, Chairman of Ineos said: “This is the consequence of Europe’s total lack of energy competitiveness and the blind devotion to carbon taxation which is leading to a mass deindustrialisation across the continent. Gladbeck is not the first and will definitely not be the last unless the regulators wake up and take action.”
The plant at Gladbeck has the capacity to produce 650,000 t/y of phenol and acetone products, making it one of the largest plants of its kind in the world. The site employs 279 people directly and indirectly supports over 1,500 jobs. The company will now enter into consultation with the works council, employees, customers and suppliers to exit the site in a safe, responsible and compliant manner.
