The company said the changes are intended to improve the site's long-term competitiveness as European chemical producers face continued pressure from high energy costs, international competition and global capacity additions.

Covestro said the Antwerp polycarbonate operations have become increasingly unprofitable since 2022.

"Europe's chemical industry is at a crossroads. The structural challenges are severe, and market realities have changed fundamentally," said Markus Steilemann, CEO of Covestro.

Steilemann said the company needs to adjust its manufacturing portfolio to focus on activities that can remain competitive over the long term.

Under the proposal, the remaining polycarbonate production line would focus on higher-value specialty grades, including heat-resistant APEC materials.

Covestro intends to retain most other activities at the Antwerp site.

The company's previously announced investment in a new aniline production unit will continue as planned.

Covestro said the investment is intended to strengthen Antwerp's position as an important aniline production center serving its European operations.

The site's polyether production lines would remain unaffected.

The Antwerp Technology Centre, which supports global process technology development for polycarbonates, would also continue operating.

"Commodity production in Europe is increasingly difficult to operate competitively, while we continue to see attractive opportunities in high-value specialty materials," said Thorsten Dreier, Covestro's chief technology officer.

Dreier said the company intends to maintain a manufacturing cost structure that supports future investment in specialized materials and technologies.

The proposed restructuring could affect up to 260 employees in production and support functions.

Approximately 970 people currently work at the Antwerp site.

Covestro has launched a formal information and consultation process with employee representatives under Belgian law.

The company emphasized that no final decision will be made until the consultation process is completed and its outcome considered.

The proposal comes as European chemical manufacturers continue evaluating production capacity and product portfolios in response to high energy costs, weak demand and increasing competition from Asian producers. 

Covestro is a major supplier of raw materials used across coatings and CASE markets. Although the proposed changes specifically concern polycarbonate and BPA production, the restructuring illustrates the manufacturing and cost pressures affecting Europe's broader chemical raw-material supply base.