Shell has announced plans to thoroughly review its chemical operations worldwide as part of a broader strategy to enhance profitability. This initiative could lead to partial or complete closures of underperforming chemical divisions in Europe.
In the Netherlands, Shell operates significant chemical facilities in Moerdijk and Pernis, producing essential raw materials for products ranging from plastics to polyester for clothing. However, the company has not disclosed the potential impact on these locations, emphasizing that evaluations are still in progress. A spokesperson highlighted the “challenging market conditions” in Europe, which include high energy costs, network expenses, and stringent CO2 emission regulations.
In the United States, Shell is exploring strategic partnerships for its chemical operations. Meanwhile, European divisions are undergoing performance assessments to determine which components are viable for improvement or subject to shutdown. This move follows broader concerns voiced by industrial companies in the Netherlands, including warnings about the effects of high energy costs, unclear government policies, and the pressure of sustainability initiatives. Recent closures by American chemical companies LyondellBasell and Tronox in Rotterdam underline the competitive difficulties faced by the industry in the region. The company has reiterated that “something must be done” to address the current challenges.