UK-based Ineos will indefinitely shut down propylene oxide (PO) and propylene glycol (PG) production in Europe even if chlorine supply resumes to its idled 210,000 t/yr chlorohydrin-based PO production plant in Germany.
The firm has notified clients, in a letter dated 8 September, it would cease production of PO and PG with immediate effect. Argus understands Ineos has also withdrawn from industry association Cefic's PO and PG working group from 2026.
Ineos' PO production plant at Cologne supplies its 120,000 t/yr PG production unit nearby. Both plants have been offline since a fire on 12 July caused a power outage at Germany's Chempark Dormagen. That in turn prompted German chemical firm Covestro on 15 July to declare force majeure on a range of products, including chlorine. Covestro provides chlorine to Ineos' Cologne PO production plant, which then had to shut down, and Ineos declared force majeure on its PG production on 18 July. Ineos did not declare force majeure on its PO production, which is mainly for captive use.
Repairs are underway at Chempark Dormagen but the damage was extensive and full operations are unlikely to resume before the first quarter of 2026. But Ineos has told clients it will not resume PO or PG production.
The decision may predate the fire in July, as some downstream users of Ineos' PO have been seeking alternative sources since at least the middle of the second quarter.
Ineos has this week declined to comment.
