Nearly one million tons of ethylene production capacity in Europe announced withdrawal
Source: Sinochem New Network 
81,052 
April 15, 2024, 11:34 AM
In 2024, the European chemical industry will continue last year's trend, with many companies suspending or permanently closing European factories to cope with the severe situation in the European market.
From April 10 to 11, ExxonMobil and SABIC successively decided to close their respective ethylene plants in France and the Netherlands, citing financial losses and serious lack of competitiveness of European factories. The total ethylene production capacity involved was nearly one million tons and propylene production capacity exceeded 600,000 tons.
SABIC announced on April 10 that its olefin 3 cracking unit in Geleen, the Netherlands, will be permanently closed as part of upcoming on-site maintenance and overhaul. According to S & P Global Commodity Watch, the annual production capacity of the Olefin 3 plant is 530,000 tons of ethylene and 325,000 tons of propylene.
Meanwhile, ExxonMobil said on April 11 that it plans to shut down a steam cracking furnace in Gravenchon, France, as well as related derivatives divisions and logistics facilities in 2024. The Glachon plant has an ethylene production capacity of 425,000 tons/year and a propylene production capacity of 290,000 tons/year. Related derivative products include polyethylene and polypropylene.
SABIC said competitive market conditions and commitment to the sustainable development of the Herren plant were the reasons for the "strategic adjustment of the plant."
Currently, SABIC is developing an advanced recycling unit at its Herren plant. "The plant is nearing completion and will play a vital role in recycling plastics and creating a circular economy," SABIC said.
According to the announcement, Olefin 4, the second cracking unit of the Herren plant, will continue to operate. The unit has a production capacity of 700,000 tons/year of ethylene and 360,000 tons/year of propylene.
ExxonMobil said its chemical division in Graachonon has lost more than 500 million euros ($536 million) since 2018. "It was a very difficult decision for us, but we cannot continue operating at such a loss," said Charles Amiotte, president of ExxonMobil France.
The closure is expected to affect 677 jobs, which will be phased out by 2025. "Despite efforts to reduce costs and improve the economics of the plant, it is not competitive in the market," ExxonMobil said. "The steam cracking furnace configuration is less competitive than newer units due to its smaller scale, high operating costs in Europe and higher energy prices."
The company said the Esso Grachon refinery is a separate entity and will continue to operate.
ExxonMobil also announced on the same day that French subsidiary Esso SAF plans to sell its FOSSURMER refinery. It is expected that about 310 Esso employees will be transferred to the acquirer Rhone Energy Company.
ExxonMobil said the closure of the ethylene plant was not related to the sale of the refinery. Source: Sinochem New Network
From April 10 to 11, ExxonMobil and SABIC successively decided to close their respective ethylene plants in France and the Netherlands, citing financial losses and serious lack of competitiveness of European factories. The total ethylene production capacity involved was nearly one million tons and propylene production capacity exceeded 600,000 tons.
SABIC announced on April 10 that its olefin 3 cracking unit in Geleen, the Netherlands, will be permanently closed as part of upcoming on-site maintenance and overhaul. According to S & P Global Commodity Watch, the annual production capacity of the Olefin 3 plant is 530,000 tons of ethylene and 325,000 tons of propylene.
Meanwhile, ExxonMobil said on April 11 that it plans to shut down a steam cracking furnace in Gravenchon, France, as well as related derivatives divisions and logistics facilities in 2024. The Glachon plant has an ethylene production capacity of 425,000 tons/year and a propylene production capacity of 290,000 tons/year. Related derivative products include polyethylene and polypropylene.
SABIC said competitive market conditions and commitment to the sustainable development of the Herren plant were the reasons for the "strategic adjustment of the plant."
Currently, SABIC is developing an advanced recycling unit at its Herren plant. "The plant is nearing completion and will play a vital role in recycling plastics and creating a circular economy," SABIC said.
According to the announcement, Olefin 4, the second cracking unit of the Herren plant, will continue to operate. The unit has a production capacity of 700,000 tons/year of ethylene and 360,000 tons/year of propylene.
ExxonMobil said its chemical division in Graachonon has lost more than 500 million euros ($536 million) since 2018. "It was a very difficult decision for us, but we cannot continue operating at such a loss," said Charles Amiotte, president of ExxonMobil France.
The closure is expected to affect 677 jobs, which will be phased out by 2025. "Despite efforts to reduce costs and improve the economics of the plant, it is not competitive in the market," ExxonMobil said. "The steam cracking furnace configuration is less competitive than newer units due to its smaller scale, high operating costs in Europe and higher energy prices."
The company said the Esso Grachon refinery is a separate entity and will continue to operate.
ExxonMobil also announced on the same day that French subsidiary Esso SAF plans to sell its FOSSURMER refinery. It is expected that about 310 Esso employees will be transferred to the acquirer Rhone Energy Company.
ExxonMobil said the closure of the ethylene plant was not related to the sale of the refinery. Source: Sinochem New Network