Dow Netherlands cracker resumes production with annual ethylene capacity of 680,000 tons

Recent movements in the European chemical market have been frequent. Dow Chemical's production base in the Netherlands has undergone a dual adjustment: the large cracker at Terneuzen has restarted production, while a large-scale layoff plan has been implemented simultaneously, reflecting the company's overall strategy in response to regional market changes.

On June 9, foreign media confirmed that the Terneuzen LCH3 steam cracker ended its long shutdown and resumed operations.This unit, which has been in operation for over 20 years, has an annual production capacity of 680,000 tons of ethylene and 286,000 tons of propylene, making it a key regional source of olefins supply. As early as the beginning of 2025, given the continued weakness in market demand, Dow decided to shut down the unit. The maintenance work originally scheduled for the middle of the year was also forced to be postponed, and the unit has been idle since then.

Looking at the entire European olefins market, current industry fundamentals are weak. Regional ethylene inventories are sufficient, consumption of downstream chemical derivatives is sluggish, and a new wave of concentrated unit restarts continues to push market supply higher. The current imbalance between supply and demand in the olefins market is difficult to reverse in the short term.

While restarting capacity, Dow is simultaneously advancing organizational optimization. According to local Dutch news on June 3, the company will lay off 605 people in the Netherlands. According to Dow's official introduction, these layoffs are part of the Group's "Transform to Win" cost reduction and efficiency improvement plan. By streamlining redundant processes, optimizing the operating system, and focusing on core businesses, the company aims to improve operational efficiency.

As Dow's core stronghold in Europe, the Netherlands hosts three major specialized production bases, forming a complete matrix of chemical products. The Terneuzen site is Dow's largest production base outside the United States, covering general plastics and various basic chemical raw materials; The Delfzijl site focuses on MDI refining and processing, relying on raw material supplies from Germany and Portugal to become a global top isocyanate production center; The Dordrecht site specializes in high-end functional plastics, with several specialty materials deeply cultivating high-value-added sectors such as food packaging and medical care.

The parallel implementation of these two major measures—one restart and one layoff—also reflects Dow's development strategy in the European market to "revitalize existing capacity and optimize operating costs."