Dow has announced that it will permanently shut its polyether polyols production facility in Tertre, Belgium, by the end of the first quarter of 2026, affecting 37 employees and 8 contractors. The plant, with an annual capacity of 94,000 tonnes, is being closed as part of a broader European restructuring strategy aimed at addressing persistent structural challenges, including high energy costs, a burdensome regulatory environment, and increasing competitive pressures from rising imports, particularly from Asia.

The move follows a strategic review of Dow’s European assets, with a focus on its polyurethanes (PU) footprint, and reflects the company’s ongoing efforts to optimize production, remove higher-cost assets, and better align regional capacity with market demand.

The decision comes amid weakening demand in Europe’s polyether polyols market, particularly from key end-use sectors such as automotive, appliances, construction, and soft furnishings. Excess production capacity and growing imports, averaging 286,000 tonnes per year between 2020 and 2024, and reaching a record 323,000 tonnes last year, have further challenged the competitiveness of European producers, with China, South Korea, and Saudi Arabia serving as major suppliers.

Despite the Tertre closure, Dow maintains significant production capacity in Europe, including 530,000 t/yr at its Terneuzen site in the Netherlands and 60,000 t/yr in Tarragona, Spain, ensuring continued supply to its customers without disruption.

The Tertre plant shutdown is part of a wider European rationalization plan, which also includes the closure of an ethylene cracker in Böhlen, Germany, chlor-alkali and vinyl assets in Schkopau, Germany, by late 2027, and a basics siloxanes plant in Barry, U.K., by mid-2026.

From a market perspective, the closure highlights the growing structural pressures on Europe’s polyurethanes sector, where high operating costs, regulatory complexities, and global competition are driving companies to streamline assets and consolidate operations.

PUdaily notes that while customer supply is not expected to be affected, the Tertre closure is emblematic of a broader trend in Europe: high-cost, energy-intensive production sites are increasingly being rationalized in favour of more competitive locations, reflecting both market realities and strategic imperatives for long-term profitability.