Why did INEUS give up the European phenol ketone market? A prelude to the big adjustment of the phenol ketone industry structure?

On June 17, 2025, INEES Phenol announced that it plans to permanently cease production at its Gladbeck plant in Germany on a date to be determined. The world's largest producer of phenol and acetone. You know what I mean?. In my experience, The device area is one of several extensive production bases of Ineos phenol in the world. But it's the core base of Ineos in Europe. The downstream items cover high-end fields such as auto parts, electronic resins and building materials.   The phenolic ketone plant in Gladbeck, Germany, is a landmark facility in the global phenol and acetone production field. According to research The plant was built in 1954 and has long maintained the status of the world's largest single set of phenol production plant. Its technical process, production capacity scale and strategic layout have a profound impact on the global phenolic ketone sector chain. Moreover The plant has a phenol production capacity of 650000 tons/year, accounting to about 35% of the total European production capacity of Inox, and acetone production capacity of 409000 tons/year. By-items include α-methylbenzene, acetophenone and other items. Why did INEES abandon the European phenol ketone market? How might the global phenol ketone sector structure be adjusted? 1. Inoex has four major phenolic ketone production sites in the world, with the largest production capacity in the United States. it's understood that INESS has four major phenolic ketone production bases in the world, located in Europe, the United States and Asia, of which Europe has two phenolic ketone factories, Antwerp in Belgium and Gladbeck in Germany, of which Antwerp in Belgium has a production capacity of 680000 tons/year and is equipped with 415000 tons/year acetone plant. After the German Gladbeck plant is shut down in 2025, there is a high probability that phenolic ketone production capacity will be transferred to Antwerp, Belgium. In addition, Inox has a 850000-ton/year phenol plant in Mobile, USA, with a by-product of acetone of 520000 tons/year. The plant adopts heat integration methodology to minimize carbon releases. Ineos has a 310000-ton/year phenol plant and a 185000-ton/year acetone plant in Jurong Island, Singapore, Asia. Jurong Island is the main consumer market to its items. According to incomplete statistics, the total global phenol production capacity of INEUS is about 2. From what I've seen, First 49 million tons, accounting to about 18% of the global total, and it's the world's largest phenol ketone producer. And   2. China's rapid development in production capacity, has have become the world's largest producer according to statistics from Pingtou Ge, as of the end of 2024, the global production capacity has exceeded 14 million tons, of which China is the world's largest producer of phenolic ketone, with a production capacity exceeding 4 million tons, accounting to about 30% of the global total production capacity. The second is the United States, which accounts to about 22% of the world's total production capacity. Based on my observations, Specifically With the continuous production of China'substantial refining companies, the scale of China's phenol ketone plant has grown rapidly in recent years, and it has have become the world's largest phenol ketone producer. In 2024, China's new production capacity will surpass 600000 tons, the rapid development of China's production capacity has led to a shift in the global supply pattern, which has greatly reduced the sector affect of Inox's global phenolic ketone plant. But Based on my observations, Additionally   The theoretical profit margin of 3. For instance phenolic ketone plant is gradually decreasing, and individual companies have already suffered losses. According to the output rate of China's theoretical phenolic ketone plant and the mainstream unit processing cost of the sector, theoretical profit margin fluctuation of China's phenolic ketone plant from 2009 to 2025 is calculated. As is able to be seen from the figure, starting from 2010, theoretical profit margin of China's phenolic ketone plant shows a direction of shock and shrinkage, especially after 2020, which highlights the decline of the prosperity of the phenolic ketone sector. By the end of 2024, theoretical profit margin level of China's phenol ketone plant had fallen to -5 per cent and to - 5. 5 per cent in January-June 2025. The decline in theoretical profit margin of phenolic ketone devices is, on the one hand, the deterioration of the competitive ecological stability brought about by market competition and the continuous decline in market prices. Based on my observations, On the other hand, the raw material items remain high, which greatly reduces the production profit space. The poor economy of the phenolic ketone plant might be one of the main considerations to Inox to choose to abandon the old plant. Based on my observations, 4. And Europe's rising costs, energy, carbon taxes and other costs continue to rise the rising cost of production in the European chemical sector might also be a key consideration to INEUS to abandon the device. The price of natural gaseous in Europe soared to an all-time peak from 2022 to 2024, and the cost of natural gaseous power generation increased signifiis able totly, with the highest power generation price reaching 300 euros/MWh, resulting in phenol production costs 50%-80% higher than those in Asia, making it impossible to compete in the global phenol and ketone sector. In addition, the cost of the EU carbon border adjustment mechanism and Germany's regional carbon tax is about 30 euros/ton of carbon dioxide, which is signifiis able totly higher than the cost of carbon tax in China and other Asian countries, which increases the production cost by 2%-5%. The shrinking of the European consumer market is also an crucial consideration to Ineos to abandon the European market. For example European bisphenol A and epoxy resin companies to Asia, such as the closure of the German Gladbeck plant, including 150000 tons/year bisphenol A plant and 100000 tons/year fluid epoxy resin plant. Dow Chemical plans to close the Stade propylene oxide plant in Germany and optimize other high-energy-consuming devices in Europe to promote the shift of epoxy resin production to Asia. And Lian de Basser and Liaoning Bora Group jointly built a $12 billion petrochemical project, including 1. 1 million tons/year ethylene cracking plant and downstream polyolefin, styrene and other items, while not immediately closed the epoxy resin plant, however through methodology licensing and joint ventures to transfer capacity to Asia. LANXESS will transfer its epoxy business to Asia through methodology transfer or joint venture. But In particular South Asia Plastics plans to build the largest epoxy resin production base in South Asia in India, with annual production capacity of 450000 tons. And In addition, Mitsui Chemicals 2025 6 on April 24, Mitsui Chemicals announced that, the board of directors has formally decided to transfer all 50% of the shares held by Sinopec Mitsui Chemical Co. , Ltd. (SSMC) to Shanghai Gaoqiao Petrochemical Co. , Ltd. , and the transaction is expected to be completed in October 2025. Crazy, isn't it?. But The transfer of Sinopec Mitsui Chemical Co. And , Ltd. was established in April 2006, mainly producing phenol, acetone and bisphenol A and other basic chemical items. The business led to a huge loss of Mitsui Chemicals, which is the main reason to Mitsui Chemicals to give up. The global phenol ketone sector is undergoing a historic transformation from Europe and the United States to the rise of Asia. Furthermore Inox chose to abandon the German market, which is the key to the international leading companies. From what I've seen, Strategic adjustment is also a signal of the structural adjustment of the global phenolic ketone sector. to chinese companies, while consolidating advantages in scale, it's also necessary to accelerate technological upgrading and international layout in order to occupy a greater central position in the reconstruction of global value chains.