Antwerp (Brussels Morning Newspaper) October 15, 2026 – German chemical manufacturer Covestro AG has announced plans to restructure its operations at the Port of Antwerp, placing up to 260 jobs at risk. The proposed changes involve reducing local polycarbonate production from four lines down to one and completely halting the manufacture of its key chemical precursor, bisphenol A. The decision comes as the European chemical sector faces severe structural pressures, persistent overcapacity from Asia, and rising operational losses.
German chemical manufacturer Covestro AG has officially disclosed plans to execute a major reorganisation of its production facility located in the Port of Antwerp, Belgium. The proposed structural adjustments put up to 260 positions at risk out of the facility’s total workforce of approximately 970 employees.
Under the strategic plan outlined by the company, Covestro intends to reduce its local polycarbonate manufacturing operations significantly. Polycarbonate is a durable thermoplastic widely utilized across automotive manufacturing, electronics assembly, and medical equipment construction. The site’s current capacity of four operational polycarbonate lines will be consolidated into a single dedicated line.
Concurrently, the manufacturing company plans to permanently discontinue the local production of bisphenol A (BPA), a chemical raw material primary to the production of polycarbonates and epoxy resins. Covestro confirmed that the existing structural setup for polycarbonate manufacturing at the site has yielded mounting financial losses since 2022, rendering the current scale of operations economically unsustainable under present conditions.
Structural Factors Influencing Covestro Polycarbonate Strategy
The corporate decision to downscale operations stems from prolonged market imbalance and deteriorating profitability across standard plastic product lines within the European market. Covestro cited persistent global overcapacity as a primary factor, driven heavily by rapid manufacturing expansions in Asia.
The resulting global supply surplus has depressed plant utilisation rates throughout Europe, with projections indicating that utilisation will remain depressed for the foreseeable future. Beyond global market dynamics, European chemical producers face localized economic hurdles, including heightened energy costs, elevated general operational expenditure, and sustained sluggish demand across key domestic industrial sectors.
Chief Executive Officer of Covestro, Markus Steilemann, stated that the chemical sector across Europe is facing unprecedented structural realities. Steilemann noted that market conditions have changed fundamentally, necessitating defensive measures to ensure long-term commercial viability for remaining European operations. He described the proposed restructuring as a necessary adaptation to align production capacity with areas of the market where the firm can remain competitive globally.
Despite the substantial reduction in standard polycarbonate capacity, Covestro announced that the Antwerp site will maintain a focus on specialty polycarbonates and high-value chemical products. Furthermore, the company affirmed its ongoing commitment to proceed with a previously planned, multi-million-euro investment in a new aniline production plant situated at the Antwerp complex. This continued investment is intended to preserve Antwerp’s standing as a core manufacturing hub for aniline within Covestro’s broader European network.
Information Process and Social Consultation Framework
In accordance with Belgian labour regulations, Covestro NV has formally initiated the statutory information and consultation process with local trade unions and employee representatives. Management emphasized that the proposed workforce reductions and operational scaling back remain subject to the formal conclusion of this dialogue. No final operational decisions or binding redundancy schedules will be executed until the consultation phase has run its full legal course and all joint feedback has been evaluated.
Union representatives and local workforce delegates expressed shock at the scale of the proposed job cuts, citing serious concern for the affected staff and their families. Trade union representatives confirmed that they will engage in negotiations during the consultation period to examine alternative measures, explore options to preserve local employment, and minimize involuntary redundancies. Covestro leadership reiterated its intention to conduct all upcoming talks transparently, constructively, and with full social responsibility toward the affected personnel.
Wider European Chemical Sector Background
The restructuring proposal at Covestro Antwerp reflects wider structural challenges currently confronting the chemical and manufacturing industries across Western Europe. Severe energy price spikes following geopolitical disruptions, combined with strict regulatory demands and increased international competition from lower-cost production hubs, have put profit margins under sustained pressure.
Several major industrial players operating within the Port of Antwerp—one of the largest chemical and petrochemical clusters in the world—have recently re-evaluated their footprint, delayed planned capital expansions, or initiated formal cost-cutting programs. Industry analysts highlight that basic chemicals and standardized commodity plastics produced in Western Europe face high input costs relative to overseas production sites in North America and Asia. As a consequence, European chemical manufacturers are increasingly pivoting away from mass commodity output toward specialized, higher-margin chemical products to maintain financial stability.
