Covestro to cut 309 jobs at Antwerp chemicals site over global overcapacity

Covestro, the German chemicals company, told staff on 14 October that it plans to cut 309 of the 976 jobs at its Antwerp site in Belgium, with 260 people facing redundancy, according to VRT NWS. The announcement covers a substantial share of the plant's workforce and sets the company on a reorganization that management links to overcapacity in global chemical markets. The company said it intends to keep only profitable operations at the port site.

Trade union representative Patrik Collier of the Christian ACV told VRT that staff reacted with surprise and dismay and that the cuts affect about 25 per cent of the workforce. According to Collier, management is closing a BPA plant and five of the six production lines of its Makrolon plant. Only the aniline plant and the polyether plant would remain. Management cites 2027 as the deadline for the changes.

What the Antwerp site makes

The Makrolon plant produces polycarbonate plastic pellets, a material used in products such as car headlights. The remaining units form part of the MDI chain, and the industry uses polyether and aniline to make foams for mattresses, sofas and cars. Collier said there is potential for growth and profit in this part of the business, though he noted that capacity use at the polyether plant has fallen in recent years, raising questions about how viable the surviving operations will be.

Covestro points to a structural crisis in the European chemicals sector. Susanne Buchholz, managing director at Covestro, said it is becoming increasingly difficult for the company to sell materials produced in Europe competitively and profitably, particularly in lower-cost standard polycarbonates. She said failing to act now would undermine the long-term economic viability of the Antwerp site, according to VRT.

Pressure across European chemicals

The Antwerp decision is part of a wider pattern of restructuring in the sector. Union representatives from BASF sites in Asia, Europe and Latin America met in Kuantan, Malaysia, on 10 October, where IndustriALL reported that the company's Core Shift program targets a 20 per cent net cost saving by 2029 after a workforce reduction of around 7,000 over two and a half years. BASF employs around 94,000 people at 234 production sites in 93 countries, and its Antwerp operations in Belgium are set to lose 600 jobs by 2028.

For workers, the changes touch both headcount and the shape of the jobs that remain. Unions at BASF said contract staff are replacing permanent employees in some locations and automation is changing how work is done. At Covestro's Antwerp site, the loss of five Makrolon lines narrows the range of production work available, while the surviving aniline and polyether units require process and industrial maintenance skills to keep running safely and efficiently.

The European Economic and Social Committee has argued that the bloc's industrial transition depends on a workforce with the right qualifications. In an opinion published on 14 October, it said sectors relevant to the circular economy already employ some 4.3 million people in the EU, according to Eurostat, and that priority should go to qualifications closest to material flows, including industrial processes, maintenance, repair and remanufacturing. It singled out materials-intensive sectors such as steel, aluminum, glass and packaging as places where labor-market effects are already visible.

What to watch next

Attention now turns to consultations between Covestro management and unions over the timing and terms of the Antwerp cuts, and to whether the aniline and polyether plants attract new investment. The company has set 2027 as its deadline, which gives worker representatives a limited window to negotiate. More broadly, analysts will watch whether other European chemical producers follow with similar restructuring as overcapacity and price pressure continue, and whether regional and national authorities respond with support for retraining and job transitions in the affected communities.