Ineos Sees BDO-Production in Marl at Risk
Ineos has announced that its production of BDO at Marl in Germany, vital for the production of essential pharmaceutical products, is at risk as it is forced to compete against a flood of foreign imports, and product dumping from China.
BDO (1,4-Butanediol) is a critical chemical intermediate used in the production of medicines, such as antibiotics, antiretrovirals, statins and Vitamin B6. More than 200 skilled manufacturing jobs hang in the balance, along with Europe’s ability to secure the reliable supply chains needed for essential strategic products that underpin a European standard of living.
In a press statement, Ineos says that European production is collapsing. The market is now dominated by imports from Xinjiang in China. These imports are made using energy from coal, then shipped halfway around the world and dumped in Europe at dirt-cheap, rock-bottom prices. Their carbon footprint is enormous before they even reach European shores.
In Marl Ineos operates one of the cleanest, lowest-carbon BDO plants in the world. Despite that it has to suffer sky high European carbon taxes, which no one else in the world has to pay.
Without urgent support from Government and the EU Commission to block unfair imports, this site and its 200 jobs has no future. Once gone, the capacity to manufacture critical pharmaceutical products in Europe will disappear, leaving patients reliant on unreliable foreign supply chains of unknown quality. In the worst case, life-saving medicines could simply become unavailable.
Andrew Brown, CEO Ineos Enterprises, said, "Urgent action is needed. Whilst China and the US defend and subsidise their industries, Europe buries its own with sky-high energy costs, carbon taxes and suffocating bureaucracy. Europe cannot compete against state-backed imports without swift, strong, trade barriers."
Brown continued: "This is not a single product issue. Steps are necessary to defend the entire supply chain; these must be ambitious, unbureaucratic and taken quickly. Failure to act will destroy Europe’s ability to produce many of its own medicines, putting basic healthcare at risk."
Just a month ago, Ineos confirmed the intention to shut two production units in Rheinberg, Germany. The closures are the direct result of crippling energy and carbon costs, and a lack of tariff protection.
