INEOS Inovyn closes two PVC lines amid strategic review

According to media sources, INEOS Inovyn has shut down two polyvinyl chloride (PVC) production lines at its Newton Aycliffe facility in the UK, which has a capacity of 300,000 metric tons per year of S-PVC. Despite the company’s lack of response to comments, a source indicated that this action was part of a strategic review of operations due to underperformance at full capacity.

According to the source, the closure of these lines will not impact Inovyn’s ability to meet customer demand, as the company is compensating through its global asset base. The move aligns with a broader trend among European petrochemical firms to shut down inefficient and high-cost production lines, which have been struggling with slim or negative profit margins due to the competitive pricing of US and Middle Eastern feedstocks.

The rise in ethylene derivative production capacity in Asia, combined with the region’s access to cheaper or discounted feedstocks, is expected to further pressure European producers. In response, many European petrochemical companies have been implementing cost-reduction strategies since late 2023 to mitigate financial losses.