Core Insights - The European chemical industry is facing dual pressures from high energy costs and regulatory expenses, leading to a continuous contraction in scale [1] - Over 5 million tons of ethylene production capacity in Europe is planned to exit the market through shutdowns, sales, or strategic adjustments [1] - The CEO of Hexion, Peter Huntsman, suggests that European chemical companies need to explore new collaboration models to create stronger regional leaders in response to increasing global competition [1] Industry Challenges - The surge in natural gas and energy prices following the Russia-Ukraine conflict has initiated a wave of shutdowns in chemical facilities, with an acceleration expected by 2025 [1] - Despite stabilization in energy prices, they remain at least four times higher than in major competitive regions like the U.S. and the Middle East [1] - Global chemical companies with operations in Europe may opt to shut down or sell more European plants, increasing reliance on imported products [1] Strategic Recommendations - Huntsman proposes reducing the number of chemical industry clusters in Europe to focus resources on fewer, stronger, and more competitive regional leaders [2] - He emphasizes the need for collaboration among industry leaders and regulatory authorities to reshape the European chemical landscape with a focus on "fewer but stronger production bases" [2] - Key locations such as Rotterdam, Antwerp, Ludwigshafen, and Leverkusen should be prioritized for investment, supported by tax incentives and the removal of trade barriers to enhance competitiveness [2]