ANTWERP, Belgium – Covestro NV has announced a major restructuring plan for its Antwerp production facility, signaling a strategic retreat from commodity polycarbonate production in response to what the company describes as “fundamentally changed market realities” in Europe.
The company revealed its intention to consolidate its polycarbonate operations in Antwerp from four production lines down to a single line. Additionally, Covestro plans to discontinue the local manufacturing of Bisphenol-A (BPA), a critical precursor in the production of polycarbonates. The move is part of an ongoing effort to bolster the site’s long-term viability amidst intense global competition and a challenging economic environment for the European chemical industry.
Covestro CEO Markus Steilemann highlighted the gravity of the situation, noting that the European chemical sector is currently at a critical crossroads. “The structural challenges are severe, and market realities have changed fundamentally,” Steilemann said in a statement. “We need to adapt our portfolio to where we can compete successfully in the long term to ensure a future for our production in Europe.”
The Antwerp site has faced significant financial pressure, with operations turning increasingly loss-making since 2022. The company cites a “perfect storm” of high energy costs, weak regional demand, and significant capacity expansions in Asia, which have led to a global glut of standard polycarbonate. According to Covestro, the current operational setup in Antwerp is economically unsustainable, and failing to consolidate now would jeopardize the site’s future entirely.
Despite the planned cuts, Covestro maintains that the Antwerp facility remains a vital pillar of its global innovation and production network. The remaining polycarbonate line will be pivoted to focus on high-value specialty grades, such as the company’s heat-resistant APEC® line, which commands better market margins. Furthermore, the company reaffirmed its commitment to planned investments in a new aniline production unit, solidifying Antwerp’s status as a key European hub for that material. Existing polyether production and the local Technology Centre, which oversees global process development, will remain unaffected.
The proposed restructuring could impact as many as 260 of the 970 employees currently stationed at the Antwerp site. Covestro has initiated a formal information and consultation process with local employee representatives in compliance with Belgian law. Management has stated that no final decisions will be reached until these discussions have concluded and the feedback from labor representatives has been thoroughly reviewed.
Thorsten Dreier, Chief Technology Officer at Covestro, emphasized that the shift is a necessary evolution to ensure the company remains competitive. “Commodity production in Europe is increasingly difficult to operate competitively, while we continue to see attractive opportunities in high-value specialty materials,” Dreier said. “To remain competitive on a global scale, we need a cost base that allows us to invest in innovation.”
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