ExxonMobil, Sabic to shutter European ethylene

The downturn in petrochemicals continues to hit Europe hard, as two of the continent's largest petrochemical makers—ExxonMobil and Sabic—disclosed their intention to shutter ethylene plants. A buildup in ethylene capacity globally, primarily the US and China, has caused profits to drop. Europe has borne the brunt of the downturn because of the region's high cost of production. Especially high energy prices in the wake of Russia's invasion of Ukraine have exacerbated Europe's competitiveness problems. Facing such pressures, ExxonMobil says it plans to close its ethylene cracker and derivatives units at its Gravenchon site in Port-Jérôme-sur-Seine, France, this year. The closure includes an ethylene steam cracker with 400, 000 metric tons of annual capacity as well as downstream polyethylene and polypropylene plants. The complex has lost more than 530 million since 2018. "Despite efforts to reduce costs and improve the site's economics, it is not competitive, " the company says in a statement.