European Commission helps chemical industry
The chemical sector in Europe is going through difficult times. In the past two years, no less than twenty sites have been closed down on the old continent. Just on Monday, Dow announced three factory closures in Germany and the United Kingdom. The American multinational cites the now well-known arguments: high production and energy costs, strict regulations, a sluggish demand…
The important chemical cluster around the port of Antwerp is also feeling the impact. According to Member of the European Parliament Wouter Beke (CD&V/EPP), the chemical installations in the port are currently operating at “a historically low level.” “In the first quarter of this year, the utilization of production capacity was only 67.4 percent,” he notes.
The Commission wants to intervene. “Chemistry is the mother of all industries: more than 96 percent of the produced goods depend on chemical substances. This is our business plan to secure the future of this crucial sector in Europe,” said Vice President Stéphane Séjourné on Tuesday during the presentation of the action plan.
The Commission will establish a ‘critical chemical alliance’ with member states and stakeholders to investigate the risk of factory closures. They will create an inventory of production sites and steam crackers that are essential for the European economy. These sites could count on financial support and protection against unfair competition from third countries.
The Commission also wants to reduce the administrative burden for the sector. The administrative “simplification” pertains, among other things, to the labeling of hazardous substances and the rules for fertilizers and cosmetics, and is expected to save the industry around 360 million euros annually.
The Belgian Greens are not pleased about this. “The chemical sector, as the largest industrial sector in our country, faces enormous challenges, but the solution lies in accelerated greening and innovation, not in rolling back laws that protect our health and our environment,” responds Member of the European Parliament Sara Matthieu (Green).
