Covestro Plans to Cut 260 Jobs at Its Antwerp Chemical Plant

Antwerp (The Brussels Morning Newspaper) – 15 October 2026 – German chemical manufacturer Covestro has announced plans to restructure its production operations at its Antwerp site in Belgium, potentially affecting up to 260 employees. The proposed changes would reduce polycarbonate production from four manufacturing lines to one and end local production of bisphenol A, a chemical precursor. The company has cited weak demand, high production and energy costs, and increasing international competition as reasons for the restructuring. A formal consultation process with employee representatives has begun, and no final decision will be made until that process has concluded.

Covestro Announces Major Restructuring of Its Antwerp Operations

Covestro NV announced on 15 October that it intends to reorganise polycarbonate production at its Antwerp facility as part of a plan to strengthen the site’s long-term competitiveness. The proposed restructuring could affect up to 260 employees working in production and support functions at the Belgian industrial complex, which currently employs approximately 970 people, according to the company’s announcement.

The plan centres on consolidating polycarbonate manufacturing from four production lines to one. Covestro also intends to discontinue the local production of bisphenol A (BPA), a chemical used as a precursor in the manufacture of polycarbonate plastics.

The company said the proposed changes form part of its broader transformation strategy, which aims to improve global competitiveness and profitability while adjusting its European production portfolio to changing market conditions.

The announcement does not mean that all operations at the Antwerp site will close. Covestro said most activities would remain in place, with the remaining polycarbonate production line intended to concentrate on higher-value specialist materials rather than standard products.

The company has also confirmed that its previously announced investment in a new aniline production unit will continue as planned. Aniline is an industrial chemical used in the production of other chemical intermediates, including materials associated with polyurethane manufacturing.

The proposed restructuring is subject to a formal information and consultation process with employee representatives. Covestro stated that it would not make a final decision before that process had been completed and its outcome carefully considered. Consequently, the precise employment consequences remain subject to the consultation procedure.

Why Is Covestro Reducing Polycarbonate Production in Antwerp?

Covestro has linked the planned changes to structural pressures affecting the European chemical industry. According to the company, manufacturers face a combination of elevated production and energy costs, weak demand and stronger international competition.

The company also identified persistent global overcapacity in standard polycarbonates as a significant challenge. It said substantial additions to production capacity, particularly in Asia, had increased the imbalance between available supply and market demand.

Polycarbonate is a durable engineering plastic used in applications requiring strength, impact resistance and other specialised properties. It has applications across several industrial sectors, including construction, electronics and automotive manufacturing.

Covestro produces high-grade plastics and chemical intermediates at Antwerp. Its facility is an established part of the company’s European production network and has operated for decades.

However, the company said the economics of standard polycarbonate production had deteriorated. Production capacity utilisation had fallen significantly and was expected to remain low for the foreseeable future, according to its announcement.

Covestro also reported that its Antwerp operations had become increasingly loss-making since 2022. The company considers the existing production configuration economically unsustainable under current market conditions.

The proposed consolidation is intended to bring manufacturing capacity more closely into line with market realities while concentrating the site on products that Covestro considers better positioned to compete.

The company has presented the restructuring as a portfolio adjustment rather than a complete withdrawal from Antwerp. Its stated approach combines a reduction in standard polycarbonate production with the retention of selected specialist manufacturing activities and continued investment in other chemical operations.

How Many Employees Could Be Affected by the Job Cuts?

Covestro said up to 260 employees could be affected by the proposed changes. The employees concerned would come from both production and support functions at the Antwerp facility.

With approximately 970 employees currently working at the site, the potential impact represents a substantial proportion of its workforce. However, the company has not presented the figure as a confirmed number of redundancies. The announcement describes the measures as intended changes and makes clear that the final decision will follow consultation.

The distinction is important because the formal process has only begun. Employee representatives will have an opportunity to discuss the proposal with management, and the company has said that it will consider the outcome before deciding whether to proceed.

The announcement does not establish which individual positions would be affected, how any employment reductions would be implemented or whether alternative arrangements could limit the number of job losses.

The proposed changes cover production and support activities associated with the restructuring. The final scope will depend on the outcome of the consultation process and any subsequent decisions by the company.

Covestro’s chief executive, Markus Steilemann, acknowledged the potential consequences for employees in Antwerp. He said the company understood what the proposed measures could mean for its workforce if the plans were confirmed.

Steilemann also stated that Covestro would approach the process responsibly and discuss the proposals openly and constructively with local employee representatives.

The company has not announced a completed redundancy programme. The immediate development is the launch of the formal consultation process, during which the proposed changes and their employment implications will be discussed.

What Will Happen to Polycarbonate Manufacturing at Antwerp?

Under Covestro’s proposal, polycarbonate manufacturing would be consolidated from four production lines to one. The remaining line would focus on higher-value specialist grades, including heat-resistant APEC materials.

This would represent a significant change in the site’s manufacturing profile. Instead of maintaining its existing configuration for polycarbonate production, the facility would concentrate on a narrower range of products aimed at specialist applications.

The decision reflects the distinction between standard polycarbonate grades and higher-value materials. Covestro has said that competition in commodity production has become increasingly difficult for European manufacturers, while it continues to see opportunities in specialist materials.

The company has linked this approach to the need for a cost structure that supports investment in innovation and future technologies.

Thorsten Dreier, Covestro’s chief technology officer, said that standard-product manufacturing in Europe was becoming harder to operate competitively. He also pointed to the opportunities the company sees in higher-value specialist materials.

Dreier said the proposed focus for Antwerp, alongside the continued investment in aniline production, was intended to strengthen the site’s long-term competitiveness.

The proposal would also end local production of bisphenol A. BPA is used as a chemical precursor in polycarbonate manufacturing, making its production relevant to the site’s existing plastics operations.

Covestro’s announcement does not specify a final implementation timetable for the production changes. Any definitive schedule will depend on the company’s decision following consultation and the subsequent arrangements for the affected operations.

Which Antwerp Operations Will Remain Unaffected?

Despite the planned reductions, Covestro has stated that most of its Antwerp activities would remain outside the scope of the proposed restructuring.

The polyether production lines are not affected by the announced intention. The company’s Technology Centre in Antwerp would also continue operating, maintaining its role in the development of process technologies for polycarbonates.

In addition, Covestro intends to proceed with the previously announced investment in a new aniline production unit.

The planned facility is expected to reinforce Antwerp’s role as a European aniline production hub. The investment therefore remains a central element of the company’s stated plans for the site, even as it proposes a reduction in polycarbonate and BPA production.

The continued investment indicates that the proposed changes are selective. Covestro intends to reduce activities it considers less competitive while retaining other production capabilities and technical functions.

The Technology Centre is particularly relevant to the company’s stated focus on specialist products and process development. Covestro describes the centre as contributing to the global development of polycarbonate production technology.

The company’s announcement does not provide a new investment value or completion date for the aniline unit. It confirms only that the project will continue as previously planned.

Covestro has therefore drawn a distinction between the operations targeted by the restructuring and the activities it intends to retain. The polycarbonate consolidation and the discontinuation of BPA production form part of the proposed adjustment, while polyether manufacturing, the Technology Centre and the aniline investment remain unaffected by the announced measures.

How Does the Decision Reflect Pressure on Europe’s Chemical Industry?

Covestro’s announcement places its Antwerp restructuring within a wider set of challenges facing chemical manufacturers in Europe.

The company identified high production costs, expensive energy, weak demand and increased international competition as pressures on the sector. It also highlighted the effect of additional manufacturing capacity, particularly in Asia, on the global market for standard polycarbonates.

The resulting overcapacity has contributed to lower utilisation of production facilities, according to Covestro. When manufacturers have more capacity available than market demand can absorb, maintaining existing production arrangements can become less economically attractive.

For Antwerp, the company said these conditions had contributed to increasingly loss-making operations since 2022. It argues that maintaining the existing configuration would threaten the site’s long-term economic viability.

The restructuring also follows a distinction in the company’s approach to different types of chemical products. Covestro intends to reduce its exposure to standard polycarbonate manufacturing while retaining a line dedicated to specialist grades.

The company has not presented the proposed measures as a solution to every challenge affecting European chemical production. Rather, it has described them as part of its own response to changing market conditions and the need to improve its global competitive position.

Its comments also raise the issue of the relationship between European operating costs and international production capacity. According to Covestro, the combination of cost pressures and global oversupply has made the existing arrangement at Antwerp increasingly difficult to sustain.

The announcement does not quantify the individual contribution of energy costs, demand or competition to the proposed job reductions. It identifies these factors collectively as part of the commercial environment in which the company is reviewing its operations.

What Is the Status of the Employee Consultation Process?

Covestro has begun the formal information and consultation process with employee representatives in accordance with applicable local requirements.

The process is intended to allow the company’s proposals to be discussed before a final decision is taken. Covestro has expressly stated that it will not make that decision until the consultation has been completed and its outcome considered.

This means the announced figures and production changes remain part of a proposal rather than a completed restructuring programme.

The company has not confirmed the final number of jobs that would be lost, the precise positions affected or the implementation date for the proposed production changes.

It has also not announced a final decision on the discontinuation of BPA production at the Antwerp site. That measure forms part of the stated intention and remains subject to the process outlined by the company.

Steilemann’s comments indicate that discussions with local employee representatives will be part of the next stage. The company has committed to approaching those discussions openly and constructively.

The outcome of the consultation will be relevant to employees and the future organisation of the facility. Until the process concludes, the extent to which the proposal may be modified or confirmed remains undetermined.

Background: Covestro’s Established Industrial Presence in Antwerp

Covestro’s Antwerp site is an important part of its Belgian operations and European production network. The facility produces high-grade plastics and chemical intermediates used in industries including construction, electronics and automotive manufacturing.

The company identifies polycarbonate, aniline and polyether among the site’s principal products and activities. Its Belgian operations also include an office in Brussels serving as its liaison presence near the European Union institutions.

Polycarbonate is used in applications where durable, high-performance plastic materials are required. Aniline and polyether are associated with chemical manufacturing processes, including the production of materials used in polyurethane applications.

The Antwerp facility has operated since 1961, according to Covestro’s careers information, and is located within the Antwerp port area. The site has therefore formed part of the region’s industrial base for more than six decades.