Dutch union warns factory closures will continue without political action

The Dutch trade union FNV has warned that more factories and jobs will disappear from the Netherlands unless the government takes action. The warning comes as companies struggle with falling profit margins, forcing some to shut down and stopping new investments.

The refineries association VEMOBIN has also raised concerns, saying that many factories are losing money and may not survive. The group fears even more closures are on the way.

FNV board member Ali Gunduz said the problem has been growing for some time. “Energy costs more here, and product rules are stricter than in places like China. We now see investment plans canceled or delayed almost every day. Negotiations are becoming more difficult—or not happening at all,” he said.

The impact is already visible. Last week, two chemical plants in the Port of Rotterdam announced they will close because they are no longer profitable. This week, Shell said it is reviewing the future of its chemical division. Gunduz said this trend will continue. “If nothing changes in The Hague and Brussels, we’ll hear about new closures almost every week,” he warned.

VEMOBIN also fears more industrial sites will shut down. The group said that after the recent closure of the Gunvor refinery, it is “not at all unthinkable” that other refineries or related industries in the Netherlands could follow. “Bigger companies are closing now. It’s only a matter of time before the next one,” the association said.

Industrial economist Albert Jan Swart of ABN AMRO said businesses may move elsewhere. “Companies could shift production to China, the United States, or the Middle East. If that happens, the Netherlands will lose one of the world’s most important chemical industry hubs. We would also become more dependent on other countries for key materials,” he told ANP.

Some experts believe the situation is not as bad as it seems. Pieter Hasekamp, director of the Centraal Planbureau (CPB), wrote in a Friday opinion piece that losing some industries may not be a major problem. He said Europe cannot be completely independent anyway, and factory workers could likely find new jobs quickly due to the tight Dutch labor market.