Having led EUMEPS and the styrenics business at BASF for many years, Dr Klaus Ries brings a unique perspective on the challenges and opportunities facing Europe’s materials industry. In this interview with Plastics Information Europe (PIE), he discusses Europe’s industrial landscape, the role of EPS in sustainable construction, and what is needed to prevent further deindustrialisation.
"We must prevent any further production relocations"
interview with Klaus Ries, styrenics market expert at BASF
Klaus Ries, who has headed the styrenics business at BASF (Ludwigshafen, Germany; www.basf.com) for more than ten years and also chairs the styrenics sector group within the producers’ association Plastics Europe (Brussels, Belgium; www.plasticseurope.org), spoke to PIE about the state of the European styrenics industry and sets out what the EU needs to do to combat deindustrialisation.
PIE: A while ago, you described the situation in the styrenics industry as tense. What is the situation today?
Klaus Ries: Some people accused me of being overly pessimistic at the time. Unfortunately, reality has turned out to be even worse than my gloomy predictions. Our industry is suffering from very low capacity utilisation rates. Many companies have shut down, idled, or sold their production units. The consolidation in the upstream cracker landscape is jeopardising the security of supply in Europe. Considerable capacity has been lost since 2022, and further closures have already been announced in the period up to 2027. The major players are currently reviewing their entire European chemical business.
Why is this?
Ries: Structural disadvantages, such as high raw material and energy prices, bureaucratic hurdles, and complex regulations, are making it difficult for companies to compete globally. The investments needed to achieve carbon neutrality are putting increased pressure on value chains and production plants. But without a strong competitive position, the green transformation that the EU is aiming for simply cannot be achieved.
How is the EU reacting to this development?
Ries: The EU seems to appreciate the seriousness of the situation and intends to put a renewed focus on industrial competitiveness. Whether that will lead to concrete action remains to be seen. So far, there is little sign of a genuine policy shift. In fact, discussions in Brussels suggest otherwise. The European Commission is continuing to push complex proposals under the REACH revision, including the registration of polymers and new risk assessment criteria for chemical mixtures.
What measures do you think are called for now?
Ries: In the short term, we need carbon cost relief, the reintroduction of price compensation for the electricity used in the production of organic base chemicals, and direct measures to bring down energy and raw material prices. In the medium term, it’s essential that the free allocation of emissions certificates for the chemical sector is maintained – otherwise we’ll see production relocate to countries without carbon pricing. We also need faster regulatory recognition of new technologies like chemical recycling.
The styrenics industry is also in turmoil …
Ries: Yes, that is unfortunately true. The styrenics industry was hard hit by developments early on. Several world-scale styrene monomer production plants have ceased operating, and the European market is now heavily dependent on imports. In May 2025 alone, more than 100,000 t of styrene were imported, which corresponds roughly to the production capacity of two of these large-scale plants. A significant increase has also been registered in the imported volume of styrene – and all of this in the midst of weak demand.
What is the situation in the EPS sector?
Ries: The EPS sector is also suffering from high costs, excessive regulation, and bureaucracy. In the past, imports from non-EU countries played only a minor role. But since Russia launched its war against Ukraine, these imports have increased considerably. In the case of EPS, one particular feature is that imported products often don’t comply with EU or national standards. Missing fire safety certificates, for instance, seem to be the rule rather than an exception.
One major problem would also seem to be incorrectly declared imports, some of which are arriving in breach of the EU sanctions against Russia.
Ries: Correct. We’re increasingly seeing products of Russian origin being imported via third countries and miraculously changing their country of origin on the way. No effective import controls are conducted by EU authorities or member states.
Last question: You are known to be a strong advocate for the use of EPS in the construction sector. Why is that?
Ries: The EU wants to make Europe’s building stock climate-neutral by 2050. The requirements set out in the European Energy Performance of Buildings Directive (EPBD) pose enormous challenges for the construction industry. And building insulation plays a decisive role in this. After all, the most environmentally friendly energy is the energy you don’t use in the first place. Without EPS as a cost-effective and widely available insulating material, the EPBD targets are simply not achievable. The carbon emissions generated during the production of EPS – which can already be significantly reduced today using alternative feedstocks and green energy – are more than offset over the typical 50-year lifespan of an EPS insulation board.
Klaus Ries studied business administration at the University of Mannheim and obtained his doctorate with a thesis on marketing. He has worked at BASF since 1995, heading the styrenics business for almost ten years. At the same time, he sits on the boards of various industry associations.
Dr Ries’s reflections combine strategic insight with a long-term view of industrial development. His message is clear: Europe’s ability to meet its climate and energy goals depends on preserving a strong, competitive, and innovation-driven industrial base. Within this framework, expanded polystyrene (EPS) continues to play a vital role — enabling energy efficiency in buildings, supporting circularity through advanced recycling technologies, and contributing to the objectives of the Clean Industrial Deal.
EUMEPS remains committed to fostering dialogue between industry, policymakers, and stakeholders to strengthen Europe’s path towards sustainable industrial resilience.