Chemical Industry News, Data & Insights

INEOS Alerts Europe on Risk to Medicine Supply

Key highlights
  • INEOS's BDO production in Germany is at risk due to cheap imports from China.
  • BDO is essential for antibiotics, statins, and Vitamin B6 production.
  • Over 200 jobs are threatened as European production declines.
  • Imports from China have a high carbon footprint and are priced very low.

Threat to European BDO Production

INEOS's production of 1,4-Butanediol (BDO) in Germany is under threat due to a surge of low-cost imports from China. BDO is a critical chemical used in manufacturing essential medicines, including antibiotics, statins, and Vitamin B6.

Impact on Jobs and Supply Chains

More than 200 skilled jobs are at risk as European production struggles to compete with imports from Xinjiang, China. These imports are produced using coal energy and have a significant carbon footprint, yet they are sold in Europe at very low prices.

Environmental and Economic Concerns

INEOS operates one of the world's cleanest BDO plants, but it faces high European carbon taxes, unlike its global competitors. The influx of cheaper, carbon-heavy imports threatens the sustainability of local production and the reliability of European supply chains for critical pharmaceuticals.

Call for Urgent Action

INEOS urges the EU and governments to implement trade barriers to protect local industry from unfair competition. Without intervention, Europe risks losing its capacity to produce vital medicines, increasing reliance on potentially unreliable foreign supply chains.