Europe Promises Protection for Chemical Makers

Why It Matters

The protection package aims to halt capacity erosion, preserve jobs, and restore competitiveness of Europe’s chemical industry against low‑cost, high‑carbon imports.

Key Takeaways

• EU imposes antidumping duties on ABS, BDO imports.
• Duties range 5.2%‑21.7% for ABS, up to 142.5% for BDO.
• BASF plans capacity expansion in Ludwigshafen after duties.
• Cefic reports 9% capacity loss, 20,000 jobs since 2022.
• Ineos files ten antidumping lawsuits targeting low‑cost chemicals.

Pulse Analysis

The European Commission’s swift move to levy antidumping duties on key polymers reflects a broader strategy to shield the continent’s chemical backbone from aggressive overseas pricing. By targeting ABS and BDO imports, the EU not only raises the landed cost of cheap, carbon‑intensive feedstocks but also sends a clear signal to trading partners about the value of fair competition. This policy shift aligns with the Commission’s pledge to cut regulatory burdens and redirect emissions‑trading revenues back into domestic producers, creating a more level playing field for European firms.

For incumbents like BASF, the duties translate into immediate investment confidence. The German giant announced a capacity expansion for BDO at its Ludwigshafen site, leveraging the higher import tariffs to justify scaling domestic output. Analysts such as Sebastian Bray have upgraded earnings outlooks, citing political support that could extend beyond 2026. This optimism contrasts sharply with the grim statistics from Cefic, which documents a 9% drop in regional production capacity and the loss of 20,000 jobs since 2022, highlighting the stakes of policy in averting further closures.

The broader industry response underscores a growing reliance on trade defence tools. Ineos, for example, has filed ten antidumping lawsuits covering a range of chemicals with high carbon footprints, illustrating how firms are proactively using legal avenues to counter unfair pricing. While these measures may boost short‑term resilience, they also raise questions about long‑term competitiveness, innovation, and the EU’s ability to transition to greener, higher‑value chemicals. Stakeholders will watch closely whether the current protectionist wave catalyzes sustainable growth or merely delays the inevitable restructuring of Europe’s chemical landscape.

Europe promises protection for chemical makers

By Alex Scott · February 19, 2026

After years of neglect, signs are emerging that Europe’s political leaders are starting to act to protect the region’s ailing chemical industry, which is shrinking in the face of high costs and cheap global competition.

Several heads of European states as well as European Commission (EC) president Ursula von der Leyen pledged a series of measures to support the sector at the European Industry Summit, held Feb. 11 in Antwerp, Belgium. The EC has also introduced antidumping duties on the polymer acrylonitrile‑butadiene‑styrene (ABS) and on 1,4‑butanediol (BDO), a raw material for spandex and engineering polymers, to protect the region’s producers.

“Europe is suddenly moving forward in response to today’s crisis,” said Paul Hodges, president of the consulting firm New Normal Consulting, in the pH Report. “But we are hopeful, on the basis that all the political leaders recognised time was of the essence. There will be no ‘second chance’ if they now fail to act.”

In a speech at the Antwerp summit, von der Leyen flagged the EC’s commitment to slash regulatory costs and increase support for companies seeking to lower the carbon footprint of their operations. Among other measures, the EC says it will channel more money raised from the Emissions Trading System back to companies. “Your industry is the industry of industries. So together we must secure your future in our continent,” she said.

One day after the summit, on Feb. 12, the EC imposed antidumping duties ranging from 5.2 % to 21.7 % on ABS imported into the EU from South Korean and Taiwanese companies. The EC said the dumping of ABS “is causing injury to EU‑based manufacturers” in Belgium, France, Germany, Italy, the Netherlands and Spain, where some 920 people are directly employed in making it.

Those duties follow the Feb. 4 introduction of duties on BDO from China, Saudi Arabia and the United States that add 52.4 %–142.5 % to the price of the chemical. The EC is also investigating other cases where local producers are seeking antidumping charges, including on adipic acid from China.

The measures taken against BDO imports have already had a positive impact. Following the action, BASF said in a news release that it plans to expand capacity to make the chemical at its site in Ludwigshafen, Germany.

Berenberg analyst Sebastian Bray has upgraded his financial forecast for BASF, writing in a note to investors that “cuts to near‑terms earnings estimates [are] superseded by potential upside from political support beyond 2026.”

The European Chemical Industry Council (Cefic), a trade group, says that measures to protect Europe’s chemical industry cannot come fast enough. A recent report by the organization found that companies have closed 37 million metric tons per year of chemical production capacity since 2022, equivalent to about 9 % of the region’s capacity, with the loss of 20,000 jobs. “The sector is under severe stress and breaking,” Cefic director‑general Marco Mensink said. “The rate of closures has doubled in a year, and even worse, annual investments are half and close to zero.”

European companies such as Ineos have increasingly been calling for support from politicians. In November, Ineos filed ten antidumping lawsuits in a bid to halt a flood of low‑cost imports of chemicals with high carbon footprints. The chemicals featured in the suits include BDO, polyolefins and polyvinyl chloride.