Versalis shutdown of Brindisi PE plant

In the past 15 years, the Versalis has accumulated cash losses of nearly 7 billion euros, reaching 3 billion euros in the last five years alone. Eni said that the European basic chemicals sector is facing a "structural and irreversible decline". In this context, the Brindisi naphtha cracker was permanently shut down in March 2025, and the PE plant relied on imported ethylene to maintain its operation until it was finally shut down in July this year.

The direct basis to the shutdown is the framework agreement signed with the Italian Ministry of Enterprise in March 2025, which links the shutdown to the lithium iron phosphate battery super factory project. The project, a joint venture between Eni and Seri manufacturing, started construction on July 6. The withdrawal of old capacity and the introduction of new capacity have formed a clear "cage to bird" logic in Brindisi.

According to Eni's transformation plan to Versalis, the company will invest 2 billion euros to decrease carbon dioxide releases by about 1 million tons, and shift its Versalis business focus to renewable energy, circular economy and specialized items. As of now, Versalis is still looking to a buyer to the Brindisi cracker.