Europe remains at a competitive disadvantage

With over 1.2 million of workers, 655 billion euros of turnover, and 10.2 billion euros of investments in research and innovation, the European chemical industry is a wealth generating sector of the economy and a major contributor to building a sustainable future for Europe. 

Given these premises, Cefic “2024 Facts & Figures” highlights that Europe remains at a competitive disadvantage compared to the USA, China and the Middle East due to high energy, regulatory, labour and feedstock costs. This is illustrated with ethylene production in Europe being 3.2 times more expensive compared to the USA in 2023. Coupled with limited global demand growth and high capital spending in other regions, the global chemical market is increasingly competitive, and Europe pays the high price.

The report also shows that with a fluctuation around 75%, EU27 capacity utilisation remains well below historical average, and, although Europe maintains a positive trade balance, exports are not growing at the same pace as the global market, with a shift of manufacturing to regions in Asia, with China outpacing all others. In the overall European picture, polymer production accounts for around 18% of the total, with 16% being accounted for by plastics, plus 1% by synthetic rubber and man-made fibres respectively.

Cefic report once more reinforces the need to take bold and urgent action to secure Europe’s industrial future, not only to implement the Green Deal but also to prevent further deindustrialisation in Europe. These figures also underpin the messages of the Antwerp Declaration, launched in February 2024, which calls to restore the business case for investments in Europe in order to implement the EU Green Deal and safeguard high quality jobs for European workers in Europe.