Huntsman Corp. shut down its maleic anhydride production facility in Germany, prompted by persistent losses and deteriorating market conditions in Europe, the company announced. The move reflects broader challenges across chemical and lubricant additive supply chains, particularly in the wake of rising costs, weakening demand and growing competition from Asia and North America.
Maleic anhydride is a key precursor used in the production of lubricant additives such as corrosion inhibitors, detergents and dispersants. Its derivatives are valued for enhancing thermal and oxidative stability in high-performance engine oils and industrial lubricants.
Located in western Germany, Huntsman’s business posted a loss of about $10 million in 2024. The closure of the Moers site is expected to result in a one-time non-cash asset impairment charge of about $75 million in the second quarter of 2025.
“There is a crisis in the sector overall, and everyone is struggling. We hope things will stabilize in the second half of the year or next year,” Denis Varaksin, trading director at Germany-based DYM Resources, told Lube Report. He noted that many producers across the specialty chemical industry are dealing with reduced margins, low plant utilization rates and tough price competition, particularly from China and the United States.
“The maleic anhydride market in the EU has been particularly weak due to low demand from the lubricant, construction, and coatings industries,” Varaksin added.
He also questioned whether there are viable substitutes for maleic anhydride in lubricant additive production and suggested the Moers plant’s reactors could potentially be repurposed. “To make maleic anhydride, you need access to cheap n-butane, which is hard to secure in Germany after supplies from Russia stopped,” he said.
Huntsman said it would continue to serve its European customers from facilities in Florida and Louisiana. European customers may face delivery delays or cost increases in the near term while the tighter supply of maleic anhydride-based additives could prompt some blenders and additive manufacturers to explore substitution strategies or consider relocating production.
“Sourcing from the U.S. will inevitably add shipping time and freight costs. Everything has gone up in price due to uncertainty around the new tariffs [in U.S.-EU trade] and energy costs,” Boris Zhmud, a lubricants and lubrication engineering expert, told Lube Report.
Huntsman’s exit leaves BASF and Lanxess as the main remaining suppliers in Europe, alongside smaller producers in Germany, Italy and Hungary. European lubricant blenders may face tighter supplies and cost pressure in the near term, possibly prompting substitution efforts or relocation of some additive production.
Demand from Europe’s automotive, marine, and industrial sectors remains sluggish. In a sign of softening market conditions, German lubricant giant Fuchs recently revised its 2025 revenue forecast down by 6% – from €3.7 billion to €3.5 billion.