US chemical giant Dow is set to close its polyether polyols production facility in Tertre, Belgium, by the end of March 2026, citing high energy costs, a burdensome regulatory environment, and competitive pressures from rising Asian imports.
Dow, a leading US chemical firm, has confirmed plans to permanently cease operations at its 94,000 tonnes per year (t/yr) polyether polyols production site in Tertre, Belgium, by the conclusion of the first quarter of 2026. The decision is a direct outcome of a strategic review of its European assets, particularly within its polyurethanes (PU) footprint, which was initiated to tackle "the structural challenges of high costs, driven by high energy costs and a burdensome regulatory environment," according to a company spokesperson.
The closure is expected to affect 37 Dow roles and eight contractor positions. Workers' union FGTB indicated that the site, which has three production lines with two already idled since a 2023 restructuring, is likely to be dismantled after the shutdown.
A primary factor driving the closure is the loss of competitiveness in the face of increased imports, primarily from Asia. The European polyether polyols market has been grappling with significant headwinds, including weak demand and excess production capacity.
Data shows that imports of all polyethers, including polyether polyols, into the EU have been on the rise, averaging 286,000 t/yr between 2020 and 2024. Deliveries hit a record 323,000 tonnes last year, with January–July imports this year seeing a 6.3% increase over the same period the year prior. China is the leading source of these imports, followed by South Korea and Saudi Arabia.
Market demand from key polyether polyol end-use sectors has been particularly soft. The automotive, appliances, and soft furnishings industries have been hit by limited consumer confidence and reduced spending on durable goods. Similarly, demand from the construction sector has faltered due to economic uncertainty and a weak investment climate.
Despite the closure, Dow has sought to reassure its customers, stating it does not expect any negative impact to its customer base and will continue to deliver the same product mix. The company's goal remains to right-size its regional production capacity relative to market demand and remove higher-cost assets.
Dow retains significant polyether polyols capacity elsewhere in Europe, with 530,000 t/yr at its Terneuzen site in the Netherlands and a further 60,000 t/yr in Tarragona, Spain.
The closure is seen as the latest setback for the broader European polyurethanes sector, following recent similar actions by other major players. This consolidation highlights the increasing challenges facing chemical manufacturers in the region, which are grappling with a complex mix of elevated operating costs and intense global competition.
