Commodities

Plastics, more and more plants are closing in Europe and now recycling is also collapsing

The sector's suffering is growing and consigns us to dependence on foreign countries: especially the USA, the Middle East and China. An issue that not only concerns competitiveness, but also puts the green transition at risk, denounces Plastics Europe

by Sissi Bellomo

3' min read

3' min read

Plastic production in Europe continues to decline, at an even faster rate than expected. And for the first time since 2018, there is also a sharp decline for plastics derived from recycling. It is not a favourable trend, beyond what one might think, that highlighted by the latest data collected by Plastics Europe, and the industry association not only raises yet another alarm on the deindustrialisation front in the Old Continent, but also warns in relation to environmental targets.

"The erosion of European competitiveness threatens the transition of our industry," reads the comment to the data. "The EU's transformation into a circular system for plastics is in grave danger because of imports that do not always meet European standards," warns Marco ten Bruggencate, president of the association. "The hard truth is that we are already witnessing the closure of production facilities in the EU, resulting in the relocation of industry, jobs and sustainable investments."

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The sector still employs more than 1.5 million people in Europe in 51,700 companies, which last year generated a turnover of around EUR 365 billion, recalls Plastics Europe, but there are increasingly acute signs of distress, which consign us to a growing dependence on foreign countries, in particular the United States, the Middle East and China, where production costs are much lower (in the first two cases also due to the possibility of using 'home-made' hydrocarbons) and there are large, sometimes enormous, plants, which allow for strong economies of scale.

Globally, according to Plastics Europe, plastics production increased by 3.4% last year: from 400 to 413 million tonnes. In the European Union, on the other hand, there was a drop of 8.3%, from almost 59 million to 54 million tonnes, of which 42.9 million tonnes were virgin plastics, which are derived from fossil fuels.

For the first time in at least six years - as mentioned - the production of secondary plastics also went into reverse, with a drop of 7.8% (to 7.1 million tonnes) for those recycled with mechanical systems, which are still by far the most popular.

Plastic production from chemical recycling remains minimal - just 120 thousand tonnes in 2023 - and even bioplastics are still marginal, although increasing from 700 to 800 thousand tonnes.

Europe continues to boast one of the highest circularity rates in the world, with 14.8 per cent of production from recycling, yet 'the 0.7 per cent increase from 2022,' Plastics Europe warns, 'indicates deceleration and is below the growth required to meet the ambitions of the Plastics Transition roadmap.

On the competitiveness front meanwhile, the picture is becoming increasingly bleak. On the global plastics market, the share of 'made in the EU' production has fallen to 12% from 28% in 2006. And while the trade balance remains positive in terms of value (to the tune of EUR 12.7 billion), in terms of volume - it is noted - we have become net importers of resins by 2022 and of finished plastic products by 2021. In just three years, exports of resins from the EU have fallen by more than a quarter: -25.4% between 2020 and 2023.

The European chemical industry - in particular the polymer industry - is losing pieces, or else ends up in foreign hands: as in the case of Covestro, the German big bought in October for EUR 14.7 billion by the Emirati Adnoc.

Among those who have announced in recent months the closure of plants in the Old Continent are the American ExxonMobil, the Saudi Arabian Sabic and also the Italian Versalis: the Eni group company will stop operations at its cracking plants in Brindisi and Priolo and its polyethylene plant in Ragusa, a choice framed in the 'Plan for the transformation and relaunch, also with a view to decarbonisation, of the chemical business', which also provides for 2 billion in investments.

Eni itself, however, has also explained that it wants to 'drastically reduce Versalis's exposure to basic chemicals, a sector that is in a structural and by now irreversible crisis at European level, and that has led to economic losses that, in cash terms, have been close to EUR 7 billion over the last 15 years, of which 3 billion in the last five years'.

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