Europe’s acetone and phenol sector, a cornerstone of downstream products like epoxy resins, polycarbonate plastics and solvents, is facing a serious supply shock. High energy costs, weak demand and rising imports from Asia have forced leading producers to take drastic action.
Domo Chemicals: insolvency hits a regional acetone supplier
Domo Chemicals, a family‑owned Belgian group, operates several chemical units in Germany, including a plant in Leuna that makes the nylon‑6 intermediate caprolactam alongside phenol and acetone. In January 2026 the company filed for insolvency for three of its German subsidiaries – Domo Chemicals in Leuna, Domo Caproleuna and Domo Engineering Plastics – after talks over short‑term financing collapsed.
The provisional insolvency administrator explained that economic and competitive pressures had become overwhelming: demand for chemical intermediates in Europe has been weak for years, energy prices remain elevated, and cheap imports from China have flooded the market. Domo’s management launched a restructuring in 2024, but negotiations with lenders fell apart, leaving 585 employees with wages guaranteed for only three months.
Domo’s Leuna site is significant because it produces phenol and acetone (along with cumene, cyclohexanone and ammonium sulfate), all of which feed into nylon‑6 resins and numerous downstream industries. The insolvency has not yet halted production; operations continue while the administrator seeks investors or creditor agreements. Nonetheless, customers fear that uncertain financing could reduce acetone output in 2026, tightening supply.
Ineos Phenol: shutting Europe’s second‑largest phenol/acetone plant
Just months earlier, another blow struck the market when Ineos Phenol, the world’s largest phenol and acetone producer, announced in June 2025 that it would permanently close its Gladbeck, Germany, facility . The plant, which opened in 1954 and was once the world’s second‑largest phenol plant, can produce 650 kt per year of phenol and 400 kt per year of acetone . Ineos cited “sky‑high” European energy costs and Europe’s punitive CO₂ tax policy as the reason Europe cannot compete with lower‑cost imports . Chairman Sir Jim Ratcliffe warned that Europe’s “blind devotion to carbon taxation” is causing mass de‑industrialization, adding that Gladbeck is unlikely to be the last casualty .
The decision follows a detailed strategic review in which Ineos concluded that local demand for phenol and acetone has shrunk as downstream consumers exit Europe . The company noted that several phenol and acetone‑using plants operated by Sasol, Weylchem, Mitsubishi and others have been mothballed, further reducing the need for local feedstock . Ineos plans to move phenol production to its Antwerp, Belgium, complex by 2027 but will not continue acetone production at Gladbeck . The closure will directly eliminate 279 jobs and affect more than 1,500 indirect roles .
Wider market turmoil: other closures and oversupply
The European phenol and acetone market has been suffering from oversupply and low margins. According to industry reports, the market reacted with surprise when Poland’s Orlen announced in April 2025 that it would decommission its phenol and acetone plant in Płock. Company representatives said the nearly 60‑year‑old plant would require extensive modernization to meet environmental regulations, and the revenue generated from phenol and acetone would not balance the investment costs . The Płock unit produced only 34 kt/y of acetone, but any reduction in supply may help balance an oversupplied market .
Another caprolactam maker, Fibrant, which operates at the Chemelot industrial park in the Netherlands, has been evaluating options including a major reorganization. While Fibrant’s focus is on caprolactam rather than acetone, its struggles underscore how high energy costs and weak demand are squeezing European base‑chemicals producers.
Outlook: tighter supply and new opportunities
Domo’s insolvency and Ineos’s closure highlight how rising energy costs, stringent carbon policies and competition from imported chemicals are reshaping Europe’s acetone industry. Ineos’s exit will remove up to 400,000 t of acetone capacity per year, while Domo’s financial uncertainty threatens a further reduction in supply. Simultaneously, the decommissioning of Orlen’s small Polish unit adds to the sense that phenol and acetone production is retreating from Europe .
These developments may offer opportunities for regenerated acetone suppliers and traders. Companies capable of recycling solvents or offering alternative sources could fill the supply gap. Chemicals United, for instance, markets both regenerated acetone and virgin acetone for different applications, offering European customers a way to secure supply when traditional producers are scaling back.
