Why is BASF shutting down its adipic acid plant in Ludwigshafen, and what does it mean for global supply?

BASF's decision to close its Ludwigshafen adipic acid, cyclododecanone, and cyclopentanone plants by 2025 reflects the severe cost and demand pressures hitting European chemical producers. High energy prices—German industrial electricity is roughly 3.8 times China's—combined with strict environmental rules and rising competition from Asia have made European adipic acid production uneconomic. The closure removes about 200,000 tonnes of capacity, roughly 4% of global supply, and tightens the market at a time when Chinese producers like Chongqing Huafeng and Hualu Hengsheng are expanding. This shift accelerates the relocation of adipic acid and downstream nylon 66 value chains to China, which already holds over half of global capacity and benefits from integrated coal-based feedstocks.