Plastics production falls in Europe, forcing plant closures
Europe’s plastic production is falling as high costs and regulations push companies to close facilities, leaving the industry unable to compete with cheaper global producers.
Alice Hancock and Madeleine Speed report for Financial Times.
In short:
- European plastic production dropped 8.3% in 2023, while global production rose 3.4%, driven by expansions in China and the U.S.
- Rising costs, strict regulations and a glut of cheap virgin plastics have cut demand for recycled materials and hurt the European market.
- Major players like ExxonMobil and Sabic have announced closures or reviews of their European petrochemical operations.
Key quote:
“Instead of them being made in Europe, where we have fairly stringent environmental control . . . these materials may be produced elsewhere.”
— Rob Ingram, chief executive of Ineos’s business making olefins.
Why this matters:
The decline in Europe’s plastics industry threatens climate goals, as production shifts to regions with weaker environmental controls. The crisis underscores challenges in balancing economic competitiveness with sustainability.
Related EHN coverage: Every stage of plastic production and use is harming human health: Report
