US chemical firm Dow will shut its 94,000 t/yr polyether polyols production site at Tertre, Belgium, by the end of March next year, it confirmed to Argus today.
The move is part of a broader review of the company's European assets aimed at addressing "the structural challenges of high costs, driven by high energy costs and a burdensome regulatory environment", Dow said.
The site is likely to be dismantled after closure, workers' union FGTB said. The plant has three production lines, but two were already idled as part of a restructuring that began in 2023, according to the union. The closure will affect 37 roles and eight contractor positions.
Dow said it does not expect any impact to customers and will continue delivering the same product mix. The firm has 530,000 t/yr of polyether polyols capacity at its Terneuzen site in the Netherlands and a further 60,000 t/yr in Tarragona, Spain.
Europe's polyether polyols market has been pressured by weak demand and excess production capacity, compounded by rising imports, mainly from Asia.
Dow said a loss of competitiveness in the face of increased imports was a key factor in the decision to close the Tertre site.
Imports of all polyethers, including polyether polyols, into the EU averaged 286,000 t/yr in 2020–24, with record deliveries of 323,000t last year. Imports in January–July this year were 6.3pc higher than the same period a year earlier. China is the leading supplier, followed by South Korea and Saudi Arabia.
Demand from key polyether polyol sectors — including automotive, appliances and soft furnishings — has been hit by limited consumer confidence and lower spending on durable goods. Demand from the construction sector has also faltered on economic uncertainty and a weak investment environment.
Argus assessed the September contract price for flexible slabstock polyether polyols at €1,030–1,100/t, down from a midpoint of €1,225/t in January and 24pc lower than the September 2024 price. Early indications for October suggest continued softening in the polyols market.
By Laura Tovey-Fall
