INEOS' Sir Jim Ratcliffe urges von der Leyen to protect Europe's chemical industry

Industry stress and closures

Sir Jim Ratcliffe warns the European chemical industry is "highly stressed" and in a "closure phase," citing approaching 200 plant closures over the last five years. He stresses chemicals are a critical industry for national security and essential for hospitals, food and defence, and notes the sector employs one million people.

Market pressure from China

Ratcliffe says China is overbuilding its chemical industry and intentionally creating considerable excess capacity that is being "dumped" into the European market at unsustainable prices, accelerating closures. He argues China does not have superior economics and adds that chemicals made in China have double the carbon footprint.

Project ONE and EU support

He highlights Project ONE in Antwerp, a €5 billion ethylene project described as producing the lowest carbon footprint ethylene in the world, with one third the carbon footprint of other European crackers and generating significant GVA. Ratcliffe states Project ONE has not received any EU funding and was considered ineligible for the EU Innovation Fund.

Policy demands

Ratcliffe urges faster implementation of the Safeguard and/or Industrial Accelerator Act for chemicals and calls for the ETS Investment Booster—announced in March with a €30 billion budget—to be defined so it can support projects like Project ONE at planning or execution stages. He says Europe must offer the type of support its global competitors receive.