Make ‘Zero-Capital Improvements’ Part of Your Plan for 2025
ECI Group’s Consultancy Services Director, Francisco Larenas, discusses the European Chemical sector’s outlook for 2025 and strategies for plant optimization.
In the face of economic challenges, it is natural to adopt cost-cutting measures as a survival strategy. However, while this approach is necessary during crises, it can jeopardize long-term competitiveness. Maintaining a continuous improvement mindset and a clear vision for the future can be the key to ensuring a company’s longevity.
European chemical firms are currently grappling with high costs of raw materials and energy, compounded by strict regulations that make operations and development expensive. This situation has led to a slowdown in investment and asset renewal, delaying the introduction of modern production capacity and eroding competitiveness. Structural issues such as natural resource availability and aging demographics are partly to blame, but resistance to building new infrastructure and exploiting natural resources has also contributed to high costs.
Based on our decades of experience within the chemical industry, ECI Group has seen time and again that it is the companies who plan investments to keep aging assets running reliably and safely, identify market trends, and implement zero-capital initiatives to deliver immediate value, who come out on top. ECI Group Consultancy offers comprehensive improvement plans that cover immediate gains, small expenses, and full capital projects for plant upgrades or asset life extension. We have helped many decades-old assets in the Polyolefins industry remain competitive by retrofitting the best available process technologies. Our Performance Improvement Programs are designed to deliver meaningful performance gains through zero-capital and low-cost initiatives, while also identifying and prioritizing capital projects with high-return on investment.
Despite the challenges, there are positives for the European sector, particularly in sustainability. Sustainability has driven significant innovation by attracting talent and driving positive dynamics. Projects like Vioneo’s fossil-free plastics from green methanol and Repsol’s use of photovoltaic energy and electrolyzed hydrogen to reduce carbon footprints are examples of this trend. ECI Group is active in advanced recycling technologies and energy efficiency initiatives. The enthusiasm around circularity and sustainability, if done well, has the potential to transform the industry for the better and position Europe as a leader in this transformation.
The state of Europe’s chemical sector for 2025 is undoubtedly challenging, and the threat of plant closures continues to loom. Without societal recognition of the benefits of a strong chemical sector, the status quo means a continuous downward slope. However, ECI Group remains optimistic that companies who avoid short-sightedness and continue investing in long-term and short-term improvement initiatives will be able to stay competitive. Difficult times like these can sometimes lead to positive transformations. No cycle lasts forever, including downturns. Those who weather the storm and prepare for the upcycle will have potential for large gains. ECI Group Consultancy Services is dedicated to helping companies prepare for the future, ensuring they are ready to capitalize on the opportunities that arise once the industry recovers.