The company will now focus its chloromethane production on its Rosignano site in Italy to ensure a stable supply for its customers.
INEOS Inovyn, a leading European chemical manufacturer, announced today the mothballing of its chloromethane production facility in Tavaux, France. The decision, effective as of September 1, is a strategic response to the confluence of a challenging economic climate and unfavorable market conditions, which have eroded the profitability of the site's operations.
The company's decision comes amid a period of persistent weak market demand for chloromethane, a key chemical used in the production of silicone polymers, pharmaceuticals, and other chemical intermediates. According to industry reports, while the global chloromethane market is projected for long-term growth, the European segment faces unique pressures, including stricter environmental regulations and a significant disparity in energy costs compared to other regions.
A primary factor cited by the company is the substantial difference in energy prices between Europe and the United States. Arnaud Valenduc, INEOS Inovyn's Business Director, highlighted this in the company's official statement, noting that "European gas prices [are] around three times higher than the US." This cost disadvantage has placed a considerable strain on the competitiveness of European chemical production, forcing companies to re-evaluate their operational footprints.
The mothballing of the Tavaux plant is a direct result of this unsustainable cost structure. In addition to high energy prices, the facility has contended with increasingly demanding regulatory conditions, which, while promoting a cleaner chemical industry, also add to the operational burden. This combination of weak demand, high costs, and regulatory complexity made the continued operation of the Tavaux facility economically unviable.
To mitigate any disruption to its supply chain and to ensure that its customers remain unaffected by the change, INEOS Inovyn has outlined a plan to consolidate its chloromethane production. The company will optimize and increase output at its Rosignano site in Italy, which will now serve as the central hub for its chloromethane operations. This strategic pivot aims to streamline production and leverage the efficiencies of a single, focused facility.
While the closure of the Tavaux facility represents a significant change for INEOS Inovyn, the company is reiterating its commitment to its customer base. The move to optimize the Rosignano site is a clear signal that the company intends to maintain its position as a reliable supplier in the European chloromethane market. The long-term outlook for the chemical remains strong, particularly with its growing use in the pharmaceutical and silicone industries.
