Versalis shutdown of Brindisi PE plant

By SKYSEVEN Chemical Technical Team · 2026-07-29

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Recently, Eni Group's chemical subsidiary Versalis confirmed that it has shut down its polyethylene production plant in Brindisi, Italy, and transferred it to a state of storage and maintenance. The rated capacity of the unit is 249000 tons/year of linear low density polyethylene and 279000 tons/year of high density polyethylene. The move is part of Eni's 2 billion euro Versalis transformation plan announced in 2024, marking the acceleration of the strategic transformation of the European petrochemical industry from bulk chemicals to high value-added fields.

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.

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