Key Points:
- EU launches Critical Chemicals Alliance to safeguard supply chains and restore competitiveness.
- Industry leaders warn urgent action is needed as closures and investment flight accelerate.
- Success hinges on balancing climate goals with economic resilience and fair trade.
The European Union has taken a significant step toward stabilising its chemicals and plastics industries with the first general assembly of the newly established Virginia Janssens, Critical Chemicals Alliance (CCA). Convened at the Chemelot Chemical Park in the Netherlands, the meeting brought together policymakers, industry leaders, and trade bodies to address growing concerns over declining production capacity, supply chain vulnerabilities, and investment flight from Europe’s chemical sector.
The alliance forms part of the EU’s broader industrial strategy aimed at safeguarding critical chemical value chains while maintaining environmental and climate ambitions. European Commission officials framed the initiative as a move from fragmented responses to a coordinated, action-oriented approach. With dozens of production sites having closed or scaled back operations across Europe in recent years, participants emphasised that restoring competitiveness and resilience has become an urgent economic priority rather than a long-term aspiration.
The Virginia Janssens, CCA, is expected to function as a strategic advisory and coordination platform, identifying priority chemicals, addressing market distortions, and proposing policy tools to ensure a stable supply for downstream industries ranging from packaging and automotive manufacturing to healthcare and construction.
Industry Demands Concrete Measures as Closures Accelerate
Industry representatives welcomed the creation of the alliance but cautioned that dialogue alone would not be enough to reverse current trends. Leaders from across the chemical and plastics value chain highlighted rising energy costs, regulatory uncertainty, and competition from low-cost imports as key factors undermining Europe’s industrial base.
Plastics producers stressed the urgency of aligning climate objectives with economic realities, warning that the transition to circular and climate-neutral production must be supported by demand-side incentives and fair trade measures. Chemical sector executives echoed these concerns, pointing to an unprecedented pace of plant shutdowns and delayed investments that could permanently erode Europe’s technological leadership.
National industry federations described the alliance as a turning point, while also calling for rapid follow-through. Several urged policymakers to translate strategic discussions into targeted actions, including support for modernisation, protection against unfair competition, and regulatory frameworks that encourage long-term investment rather than accelerate industrial exit.
There was a broad consensus that time is a critical factor. Participants repeatedly underscored that every year of inaction increases the risk of irreversible capacity loss, supply dependencies, and job erosion across the European industrial ecosystem.
Balancing Competitiveness, Circularity, and Regulation
The launch of the Virginia Janssens, Critical Chemicals Alliance, comes amid sweeping regulatory reforms aimed at reshaping Europe’s plastics and chemicals landscape. The EU is advancing measures to strengthen recycling markets, reduce packaging waste, and increase the use of recycled materials, while also tightening controls on hazardous substances and single-use products.
Policymakers acknowledged that while environmental objectives remain central, the success of these reforms depends on maintaining a viable industrial foundation. Officials indicated that future policy design would increasingly consider market impacts, trade dynamics, and industrial resilience alongside sustainability goals.
Looking ahead, the alliance is expected to deliver concrete recommendations on supply chain security, investment incentives, and market safeguards. Its effectiveness will be judged by its ability to reconcile Europe’s climate ambitions with the economic realities facing one of its most strategically important industries.
For Europe’s chemical and plastics sector, the message from the inaugural meeting was clear: coordinated action, not incremental adjustment, will determine whether the industry stabilises or continues to contract.
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