SABIC Permanently Shuts down European Olefin Cracking Unit
2025-7-2
On June 25, 2025, local media reported that SABIC confirmed the permanent shutdown of its olefin cracking unit 6 located in Tyneside, England. This facility, built in 1979, has an annual production capacity of 865,000 tons of ethylene and 415,000 tons of propylene. Its predecessor, the cracking facility, can be traced back to the 1950s. This shutdown marks the end of over 70 years of ethylene production history in the local area.
This is not the first time SABIC has shrunk its European business. As early as April 2024, SABIC announced the permanent closure of its olefin cracking unit located in Heren, Netherlands, with an annual production capacity of 550,000 tons/year of ethylene and 325,000 tons/year of propylene. Affected by high energy costs, SABIC suffered a net loss of 1.2 billion riyals, approximately 2.29 billion yuan, in the first quarter of 2025. Earlier, there were reports that it was considering selling its European petrochemical business.
Ethylene, as a fundamental raw material in the petrochemical industry, its importance is self-evident. Its main downstream derivatives are numerous, including polyethylene, metallocene polyolefins, ultra-high molecular weight polyethylene, ethylene glycol, ethylene oxide, styrene, polyvinyl chloride, EVA, alpha olefins, POE and other chemical products. In the global ethylene industry landscape, Europe is facing severe challenges. Affected by rising energy prices and shortages of raw materials, the oil, gas, and chemical industries in Europe have been severely impacted. Since 2023, several companiesˇä ethylene plants have been forced to suspend or shut down. European ethylene producers not only face the dilemma of weak downstream demand growth, but also have higher costs compared with North America and the Middle East. Under the pressure of decarbonization, the region is subject to stricter regulation, which has led to a sustained downturn in ethylene supply in Europe.
This is not the first time SABIC has shrunk its European business. As early as April 2024, SABIC announced the permanent closure of its olefin cracking unit located in Heren, Netherlands, with an annual production capacity of 550,000 tons/year of ethylene and 325,000 tons/year of propylene. Affected by high energy costs, SABIC suffered a net loss of 1.2 billion riyals, approximately 2.29 billion yuan, in the first quarter of 2025. Earlier, there were reports that it was considering selling its European petrochemical business.
Ethylene, as a fundamental raw material in the petrochemical industry, its importance is self-evident. Its main downstream derivatives are numerous, including polyethylene, metallocene polyolefins, ultra-high molecular weight polyethylene, ethylene glycol, ethylene oxide, styrene, polyvinyl chloride, EVA, alpha olefins, POE and other chemical products. In the global ethylene industry landscape, Europe is facing severe challenges. Affected by rising energy prices and shortages of raw materials, the oil, gas, and chemical industries in Europe have been severely impacted. Since 2023, several companiesˇä ethylene plants have been forced to suspend or shut down. European ethylene producers not only face the dilemma of weak downstream demand growth, but also have higher costs compared with North America and the Middle East. Under the pressure of decarbonization, the region is subject to stricter regulation, which has led to a sustained downturn in ethylene supply in Europe.