Covestro: Polycarbonate Capacity Reduction Planned in Antwerp – Up to 260 Jobs Affected by Restructuring

Covestro NV plans to consolidate its polycarbonate production at its Antwerp site in Belgium from four production lines to one. At the same time, production of the precursor bisphenol A (BPA) at the site is to be discontinued. Up to 260 of the approximately 970 employees could be affected by the proposed restructuring. A final decision has not yet been made.

Structural Pressure on European Polycarbonate Producers
The company attributes its plans to persistently difficult market conditions for standard polycarbonates. High production and energy costs in Europe, weak demand and increasing international competition have undermined the economic viability of production. Capacity expansions in Asia, in particular, have led to global overcapacity. As a result, plant utilisation rates have declined and, according to Covestro, are expected to remain low for the foreseeable future.

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According to the company, Covestro NV's Antwerp operations have recorded increasing losses since 2022. The existing polycarbonate production structure is therefore no longer economically viable. The proposed measures form part of the realignment of the company's European production portfolio.

Specialty Polycarbonates and Aniline Remain in Focus
The remaining polycarbonate production line is to focus more strongly on specialty materials, including the high-temperature-resistant copolycarbonate "Apec". Most other activities in Antwerp are expected to continue unchanged. These include polyether production and the site's technology centre, which works on the further development of polycarbonate process technologies for the group.

Covestro intends to proceed as planned with its previously announced investment in a new aniline production plant. Antwerp is thus expected to retain a key role as an aniline production site in Europe.

Consultation Process Before Final Decision
Potential staffing implications would affect both production and support functions. The company has initiated the legally required information and consultation process with employee representatives. A decision on the proposed measures will only be made once this process has been completed and its findings have been reviewed. Covestro has not provided any information on when the restructuring might be implemented.

More information: www.covestro.com

Covestro AG, Leverkusen, Germany

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