The chemical company Ineos Phenol in the port of Antwerp will reopen in the second half of 2025. By then, production will have been at a standstill for more than two and a half years, partly due to heavy competition with China. When Ineos Phenol reopens, an Ineos company in Gladbeck (Germany) will have to temporarily close its doors instead.
The production of Ineos Phenol in Kallo (Doel) has been at a standstill since October 2022. This is because the global demand for phenol, a basic chemical product that ends up in the construction and automotive sectors, among others, has declined sharply. There is also more competition in that market from Chinese and other Asian companies that sell phenol in large quantities in Europe. Finally, high energy costs played a role in the decision to temporarily shut down Ineos Phenol.
But that ‘temporary’ has now lasted more than two years. This leads to remarkable situations. The production of phenol, which would normally take place in Kallo, now takes place in an Ineos factory in the German city of Gladbeck. But that phenol is intended for customers in the port of Antwerp. Instead of running the phenol from pipelines from Kallo to, for example, the Covestro company, ten to twenty trucks now drive every day from Gladbeck to Kallo with phenol on board, so that Covestro still receives its phenol.
The 150 employees of Ineos Phenol have to unload the phenol and pump it through metal casings to a tank. They each take turns on economic unemployment for a while.
Options for the future
But now there is light at the end of the tunnel. “The board of directors of Ineos has decided to restart the Phenol factory in Doel in the second half of 2025,” says Nathalie Meert, spokesperson for Ineos. “This is simultaneously accompanied by a temporary cessation of activity at the Gladbeck factory in Germany. It has therefore been decided not to give up the factory in the port of Antwerp. We have to restart next year because otherwise damage to the installations could occur. It can be compared to a car that you do not drive for more than two years. It must also be restarted to avoid permanent damage. Management wants to keep all options open for the future, in case the demand for phenol exceeds the capacity of one plant again.”
The Phenol Conundrum: A Chemical Company’s Tale of Woe
Ah, the port of Antwerp, where the chemical company Ineos Phenol has been lying dormant for over two and a half years. It’s a bit like a Belgian version of Sleeping Beauty, minus the handsome prince and the happy ending – at least, not yet. But fear not, folks, for the fairy tale is set to continue, and we’ll get to the juicy bits in a minute.
Firstly, let’s set the scene. The phenol market has been a bit of a, well, let’s say, a pungent place. With the global demand in decline and those pesky Chinese and Asian companies flooding the European market with cheap phenol, it’s no wonder Ineos Phenol decided to take a temporary snooze. After all, who needs competition when you can just… not compete? The high energy costs didn’t exactly help either; it’s like trying to run a marathon with lead shoes on.
But here’s the kicker: that "temporary" shutdown has lasted longer than a post-Christmas detox. Two years is a long time, especially when you consider that the production of phenol was supposed to take place in Kallo, but ended up happening in Gladbeck, Germany instead. It’s like trying to get a takeout from your favorite restaurant, only to find out they’re now delivering from a different kitchen 500 miles away. Yeah, that’s not confusing at all.
Now, you might wonder what the employees of Ineos Phenol have been doing all this time. Well, it turns out they’ve been playing a game of "Phenol Musical Chairs." Ten to twenty trucks drive from Gladbeck to Kallo every day, carrying phenol for Covestro, because, well, someone’s gotta do it. And let’s not forget the 150 employees who have to unload, pump, and play administrative musical chairs – all on economic unemployment, of course. It’s like a never-ending game of " Phenol Twister" – left foot on red, right foot on green, and don’t forget to spin the board!
But, as they say, every cloud has a silver lining. Or in this case, a restart button. Nathalie Meert, the spokesperson for Ineos, announced that the board of directors has decided to revive the phenol factory in Doel in the second half of 2025. However, this comes with a temporary shutdown of the Gladbeck factory in Germany, because apparently, you can’t have your phenol cake and eat it too.
Now, you might ask, what’s the reasoning behind this strategic move? According to management, it’s all about keeping options open for the future, just in case the demand for phenol exceeds the capacity of one plant again. It’s a bit like saying, "We might need it someday, so let’s keep it on life support." Fair enough, but what about the employees? Will they be asked to play "Phenol Musical Chairs" again? Only time will tell.
In conclusion, the tale of Ineos Phenol is a story of chemical woe, global market fluctuations, and good old-fashioned supply chain chaos. But hey, at least it’s a story with a (possible) happy ending. After all, who doesn’t love a good underdog tale of a factory rising from the ashes, phoenix-like, to reclaim its place in the phenol market?
Here is the rewritten article:
After a two-and-a-half-year hiatus, Ineos Phenol, a leading chemical company in the port of Antwerp, is set to reopen its doors in the second half of 2025. The prolonged shutdown was largely due to intense competition from Chinese companies, which have been flooding the European market with large quantities of phenol, a fundamental chemical product used in various industries, including construction and automotive. When Ineos Phenol resumes production, its sister factory in Gladbeck, Germany, will temporarily cease operations.
The production of Ineos Phenol in Kallo, a small town in the Doel municipality, came to a grinding halt in October 2022. This decision was precipitated by a sharp decline in global demand for phenol, coupled with increased competition from Asian companies, which have been undercutting European manufacturers on price. Furthermore, exorbitant energy costs played a significant role in the temporary shutdown of the factory.
The prolonged shutdown has resulted in some remarkable arrangements. Phenol production, which would normally take place in Kallo, has been shifted to an Ineos factory in Gladbeck, Germany. However, the phenol produced in Germany is intended for customers in the port of Antwerp, necessitating a complex logistics operation. Ten to twenty trucks now travel daily from Gladbeck to Kallo, carrying phenol, which is then pumped through metal casings into a tank for distribution to customers, including Covestro.
Options for the Future
According to Nathalie Meert, spokesperson for Ineos, the board of directors has made the strategic decision to restart the Phenol factory in Doel in the second half of 2025. This move will be accompanied by a temporary cessation of activity at the Gladbeck factory in Germany. By doing so, Ineos is keeping all options open for the future, in case the demand for phenol exceeds the capacity of one plant again. The restart of the factory is also necessary to prevent damage to the installations, which could occur if the factory remains idle for an extended period.
