Investment in Europe’s chemicals sector fell over 80 per cent in 2025 and plant closures doubled, as industry leaders warned that the continent would become dependent on China for the raw materials needed in its automotive, healthcare and defence industries.
Confirmed investments fell from 1.9 megatonnes of capacity in 2024 to 0.3 megatonnes last year, as the sector struggled with high energy prices, suffocating bureaucracy and an expansion of Chinese imports, according to a report published on Wednesday by the European Chemical Industry Council (Cefic).
The announced plant closures had directly affected about 20,000 jobs across Europe since 2022 and led to 17.2 megatonnes worth of production capacity disappearing last year, double that from 2024 and a sixfold rise from 2022, Cefic said.