Europe's Chemical Industry Faces Collapse: CEFIC Urges Immediate Action
The European chemical industry, a critical sector for downstream industries, confronts severe challenges due to recent geopolitical shifts and escalating energy costs. Marco Mensink, Director General of CEFIC, urges swift action on a 10-point plan to secure the industry's future and avert collapse.
CEFIC warns that soaring energy costs, accounting for 40% of the average cost base, and tightening regulations have led to a surge in production site closures, ten times the historical average over the past two years. To navigate this crisis, CEFIC prioritizes helping members adapt to regulatory changes like REACh and push for circularity, focusing on innovation rather than paperwork.
CEFIC advocates for expediting antidumping investigations, diversifying non-EU supply sources, and opening/deepening access to third-country markets to manage geopolitical risks and enhance resilience. Building regional supply networks is crucial for Europe to ensure greater security of supply and reduce dependencies. Ilham Kadri, President of CEFIC, emphasizes the need for bold, urgent action to address energy costs and regulatory burden, warning that Europe's chemical industry is in a 'race against time'.
Germany has shown strong engagement in the Clean Industrial Deal, supporting energy-intensive industries with state aid and actively participating in EU discussions to balance climate protection with industrial competitiveness. CEFIC works to mitigate the effects of protectionist policies and rising tariffs, fostering a strong industrial strategy and adapting to the changing regulatory environment. Leveraging technology for competitiveness is vital, with CEFIC securing funding for research and development and supporting members in staying competitive through digital transformation and sustainable chemical development. CEFIC engages stakeholders, including policymakers and industry leaders, to address challenges and opportunities facing the specialty chemical sector and create a sustainable, competitive future for Europe's chemical industry.
The European chemical industry's future hangs in the balance due to escalating energy costs and geopolitical challenges. CEFIC's 10-point plan and Germany's engagement in the Clean Industrial Deal offer hope, but urgent action is needed to secure a bright future for the sector and prevent a potential collapse that would impact downstream industries.
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