European Chemical Industry: Feeling the Chill, Awaiting Spring

The European chemical industry is facing profound difficulties, and to survive the current crisis, it must accelerate its transformation and explore entirely new operating models. If it can successfully navigate this transition, a recovery for Europe's chemical sector is possible. This was the view shared by many participants at the 59th Annual Meeting of the European Chemical Industry Council (EPCA), recently held in Berlin.

Ilham Kadri, Chair of Cefic, stated: "Berlin remains an ideal location for this year's chemical conference. The Brandenburg Gate has witnessed centuries of unity and division, hardship and rebirth. I can think of no better symbol for our industry—tested through adversity, yet already showing signs of revival."

Sania Magdeburg, Vice President for Europe, Middle East, and Africa (EMEA) at Brenntag Specialties, moderated a panel discussion on this topic. Magdeburg said: "Innovation, technological expertise, and quality are Europe's strengths. We need to find new ways of producing, develop higher-value products, and move into emerging value areas such as the circular economy. All of this requires both policy support and consumer acceptance. I hope Europe can seize these opportunities—but we must move faster, because other countries are actively competing for these business advantages."

Currently, sentiment in the European chemical industry is low: weak demand, high energy costs, and a continuous influx of low-priced imported goods are battering the market, with almost no one expecting a rebound in activity next year. Kadri noted: "These are not abstract issues—they are real challenges that many in this room face every day. But moments of crisis are often also opportunities for reinvention." Magdeburg added: "Although the mood at this conference is not optimistic, there are no signs of panic. We’ve been struggling like this for years, have weathered several recent crises, and will likely face more ahead. There's no panic, but there is concern that this crisis may last longer than expected, and nobody knows when the turning point will come. While certain specialty segments such as nutrition chemicals and pharmaceuticals show some resilience, overall, the entire chemical industry continues to bear the weight of market pressures."

Looking ahead, Magdeburg believes that due to widespread upstream capacity shutdowns and current infrastructure strain, the European chemical market will see increasing import volumes, especially evident in commodity chemicals. Precisely because of these pressures, European producers must, with regulatory support, focus on accelerating their pace while exploring alternative business models.

Earlier this year, the EU launched its Chemicals Industry Action Plan, but the plan itself has not prevented further shutdowns of European chemical capacity in recent months. Magdeburg emphasized that one of Europe's key advantages lies in “viewing Europe as a single integrated region.” She explained that fully leveraging the connectivity benefits stemming from EU membership requires critical cross-border supply chain planning. All member states should work together to turn this advantage into a driver for the industry's future development. Kadri stated: "An action plan alone cannot pay bills or erase the pain of lost orders and closed factories, but it does mark a turning point. It shows that Europe is listening to us—and listening is the first step. Our concerns carry weight, our contributions are recognized, and we are not fighting alone. The real work lies ahead: turning promises into action, policies into growth, and ensuring Europe remains an attractive destination for investment."

Kadri stressed that the goal for Europe's chemical industry is not merely “survival,” but “genuine success.” Achieving this requires the industry to proactively embrace challenges and become a driver of market transformation, while also receiving timely and consistent support from legislators, regulators, and advocacy groups. Kadri emphasized: "Our industry has faced numerous crises in the past and will continue to confront challenges in the future, but with unity, resilience, and ambition, we will overcome them all."