Ineos Phenol to permanently close Gladbeck site in Germany

Ineos Phenol, the largest producer of phenol and acetone globally, intends to permanently stop production operations at its Gladbeck facility in Germany, the company announced June 17.

The decision comes following a detailed strategic review which deemed Europe too uncompetitive against Chinese imports and global oversupply because of "sky high" energy costs and what the company described as a "punitive CO2 tax policy."

Ineos said it has seen the exit of several downstream phenol and acetone consumers which means that local demand no longer supports the operations and significant investments required at the Gladbeck site, which has the capacity to produce 650,000 mt/year of product.

"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 deindustrialization across the continent," said Jim Ratcliffe, chairman of Ineos. "Gladbeck is not the first and will definitely not be the last unless the regulators wake up and take action."

The Gladbeck site, operational since 1954, directly employs 279 individuals and supports over 1,500 additional jobs through indirect employment. The company plans to engage in consultations with the works council, employees, customers, and suppliers to ensure an orderly and responsible exit from the site.

Despite this, Ineos reaffirmed its commitment to the global phenol market and noted the diverse applications of phenol and acetone produced at the site, including automotive components, resins for printed circuit boards and wind turbine blades, and solvents for various manufacturing processes.

The date of the closure is yet to be confirmed.