Industry upheavals: TotalEnergies to shut cracker in Antwerp; Ascend files for bankruptcy to restructure

With the European chemical industry grappling with weak demand and costs in recent years, several chemical firms are closing or converting their units with French oil major TotalEnergies being the latest to announce it will shut its oldest steam cracker in Antwerp by end-2027, citing a "significant surplus of ethylene expected in Europe".

The unit shutdown will not result in layoffs, but 253 employees will be offered a retirement package or an internal transfers, it added.

Total said the cracker to be shut historically produced most of its ethylene for one major client, who declined to renew a contract expiring in 2027.

The French firm will maintain a more recently built steam cracker in operation whose ethylene is entirely consumed by Total's own industrial units in Antwerp and Feluy.

TotalEnergies had said it would examine its six sites in Europe and convert the weakest into biorefineries producing renewable fuels, as it has done with its La Mede and Grandpuits facilities.

The Antwerp site is already undergoing changes to begin producing sustainable aviation fuels this year, with plans to use green hydrogen made from Total's offshore wind farms to make more renewable transport fuels by 2027.

In other news, US-based nylon maker Ascend Performance Materials has filed for a Chapter 11 reorganisation bankruptcy to restructure its finances.

The Chapter 11 process will enable Ascend to deleverage its balance sheet and continue providing materials to nearly 1,650 customers globally. Ascend's subsidiaries that are located outside of the US are not included in the Chapter 11 filings. Ascend has over 20 locations worldwide.

Ascend estimates it will need six months from the filing time until completion of its debt repayment plan. During this time, the company will receive US$250 million in debtor-in-possession financing, which should allow Ascend to operate as usual.

With the support of its lenders, Ascend adds it will use the Chapter 11 process to pursue a restructuring transaction that will enable the company to emerge from Chapter 11 as a “healthy, well-capitalised business”.

Additionally, Ascend has filed multiple "first day" motions with the Bankruptcy Court seeking interim relief during the restructuring process to assist in paying employee wages, salaries and benefits.

"Ascend has made significant strides in transforming our business, with a focus on efficiency and driving cost reductions while ensuring that we are able to operate safer than we ever have before," said Phil McDivitt, President/CEO of Ascend Performance Materials. "Over the last several months, we have been working with our lenders to define the best path forward for Ascend. We expect that the restructuring will substantially reduce Ascend's funded debt obligations and ensure that we are well-positioned to continue executing on our long-term strategy. We are confident that the Chapter 11 process will put us on a path to becoming an even stronger company with a healthier financial structure and better positioned to continue delivering high-performance materials that improve the lives of our customers."

Ascend also adds it is operating as usual throughout this process and does not expect any impact to product availability or customer contracts.

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