- The PTA unit has been offline since 2022.
- High energy, raw material, and labor costs have made European PTA production uncompetitive.
- Consultation with affected employees will begin to find redeployment opportunities.
- The larger, more efficient PTA unit at the Geel site will continue operations.
Background
INEOS Aromatics plans to mothball one of its PTA (Purified Terephthalic Acid) units at its Geel, Belgium facility. This decision is driven by sustained increases in energy, raw material, and labor costs, making European production uncompetitive against Asian exports.
Current Status
The unit in question has been offline since 2022, pending a review of its long-term viability. Despite efforts to improve competitiveness, market conditions have necessitated this move.
Impact on Employees
INEOS will initiate a consultation process with affected employees' representatives to mitigate the impact, including exploring redeployment opportunities within the Geel site.
Customer Assurance
Customers will not be affected as the larger, more efficient PTA unit and the PX unit at the Geel site will continue operations.
Market Conditions
High operating costs have placed European PTA production at a disadvantage compared to Asian exporters, who benefit from discounted Russian hydrocarbons. The EU's provisional anti-dumping duties on Chinese PET Resin are a positive step, but further action is needed against other low-cost PTA and PET resin importers.
