Ineos

History

2025

Closure of two plants in Germany due to high electricity prices

The British company Ineos has confirmed its intention to close two production facilities in the city of Reinberg in Germany. The decision is a direct consequence of destructive electricity and carbon prices. The lack of tariff protection exacerbates the situation for the manufacturer. The closure of strategically important plants that produce critical chemicals will affect 175 jobs. This was announced on October 6, 2025.

According to BicMagazine, the Allylics division produces a key component of epoxy resins. Products are necessary for the defense industry of European countries. The aerospace industry uses epoxy resins to produce composite materials. The automotive industry uses components in the production of body parts. Renewable power infrastructure requires epoxy resins for wind generators. The electrochemical plant produces chlorine for various sectors of the economy.

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Фото: Reuters

Chlorine is required for water treatment in municipal water supply systems. Drug production uses chlorine in technological processes. Industrial processes in the chemical industry require chlorine as a reagent. Disinfection of medical institutions and swimming pools is impossible without chlorine-containing drugs. The closure of the plant will create a shortage of a critical chemical in the European market.

The company compared the policy of Europe and the United States on the chemical industry. The United States has imposed high duties to protect domestic manufacturers. The measures stopped the flow of cheap chemicals from Asia to the American market. Many Asian chemicals are produced using preferential Russian oil and gas. Europe continues to leave its markets open to imports. The lack of protectionist measures undermines the competitiveness of European producers.^[1]

Closure of a plant in Germany due to the country's refusal of Russian gas

In June 2025, the British chemical company Ineos Phenol, the world's largest producer of phenol and acetone, announced its intention to stop production at its Gladbeck facility in Germany. The company attributed the decision to high European energy prices amid the country's rejection of Russian gas, as well as a tax policy on CO2 emissions, which made Europe uncompetitive compared to imported Chinese products.

According to Chemeng online, the closing date of the plant will be announced later. Europe's lack of competitiveness has already led to the withdrawal of several consumers of phenol and acetone, and local demand is no longer able to maintain the Gladbeck site, which began operating in 1954 and requires significant future investment.

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Фото: The Chemical Engineer

Ineos CEO Jim Ratcliffe called what is happening a consequence of a complete lack of competitiveness in the energy sector in Europe and a blind devotion to taxing carbon emissions. He stated that this leads to mass deindustrialization throughout the continent, and Gladbeck is not the first and certainly not the last plant to close if regulators do not take action.

The Ineos Phenol plant in Gladbeck is capable of producing 650 thousand tons of products per year. The facility employs 279 people and indirectly supports more than 1,500 jobs in the region. The company is one of the key manufacturers of chemical products in Germany.

The closure of the plant is due to a sharp increase in the cost of energy in Europe after the abandonment of Russian gas. Germany was one of the largest consumers of Russian natural gas, which was supplied through the Nord Stream pipelines and through transit countries. After the outbreak of the conflict in Ukraine in 2022, European countries gradually abandoned Russian energy resources.^[2]

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