“The industry in Europe is under heavy pressure. For the past two to three years, the very important chemical industry has suffered a lot. Some experts even argue that the sector is facing an “existential crisis”. But it’s not only the chemical industry in Europe that has run into troubled waters, other sectors like the car manufacturing industry, are also affected. There is a major competitiveness challenge in the European Union,” says Maarten Dubois, Sustainability Director at Deloitte, speaking at the P&L Seminar on ‘Securing European competitiveness’, on December 4th, 2025, in Leuven.
‘Awareness is not the problem’, Maarten Dubois stated, ‘but the actions are lacking.’ He gives the example of The Antwerp Declaration, which brought together a large number of leading Captains of Industry and senior officials from the European Commission in February 2024. The second Antwerp Declaration Summit followed in February 2025, during which no less than 10 pillars were pinpointed. In the meantime, the European Commission announced The Clean Industrial Deal. But two years later, little concrete action has been taken by the Commission. Former EU Commissioner Mario Draghi, however, outlined in a comprehensive report the measures Europe urgently needs to implement. ‘The process continues at a slow pace, but the reality facing the European industry is evolving rapidly,’ adds Maarten Dubois.
Umicore
Ruth Lambrechts, Public Affairs Umicore, confirmed the difficult situation currently facing European industry. “Especially for energy-intensive sectors like ours, these are hard times. We have already had to implement layoffs and adjust our strategy. For us, creating additional functionalities in materials creates more added value. We have four business units: Battery Materials & Solutions; Catalysts for cars and hydrogen-related equipment, Recycling, and lastly, Specialty Materials. Each unit has different value chains and requires a different trade policy.” “One internal issue within the EU is the transportation of precious metals. They arrive in Belgium from all over the world, but within the EU, each country applies different regulations because this type of transportation is classified as “waste transport”. As a result, it requires different permits and inspections. These 27 different sets of rules form a major barrier to our value chain and production process. A single, harmonized European regulation should be the goal for the whole EU.”
“EU member states apply different regulations to precious metals entering Europe, as this type of transport is classified as waste transport. This leads to varying permit requirements and inspection procedures, creating a major barrier to our value chain and production process.”
Ruth Lambrechts (Umicore)
Advionics
Matthijs Degryse, Business Development manager at Advionics, a high-tech company active in the aviation and defense industry, has very different concerns. Their expertise lies in avionics and RF technologies. “There are currently huge budgets for equipment in the defense industry, but most spending does not take place in Europe. The current Belgian Minister of Defense, Theo Francken, wants to see more economic return for companies in Belgium and across Europe. But are our facilities equipped with the necessary capacities? And there are many barriers to overcome, permits for example, but also ethical barriers. And do we have enough qualified staff? Advionics has the skills and the capacity to expand,” confirms Matthijs Degryse.
What does he see as the most important challenges for his supply chain? Matthijs Degryse: “First, the volatile lead times in Europe. They are a major source of concern. Geopolitical instability only increases this concern, not least because of the import tariffs in the US and the retaliatory measures elsewhere in the world. A specific challenge for our company is the growing number of components that have become obsolete because of rapid technological changes. How can we still generate value from these remaining stocks?”
And what is Advionics’ strategy in this framework? “We invest in component intelligence, we use product development techniques, we conduct supply-risk audits, and we actively search for alternative suppliers. And a strong ERP-package as well as a strong team are essential,” Matthijs Degryse adds.
Challenges and concerns
And what are the main concerns for Umicore? Ruth Lambrechts: “For us, it is mandatory to find new markets and new value chains. Batteries were our future, but now we must find new products and markets. And European decision makers should realize that regulations have become excessive and are hindering the development of our businesses. Let me give you an example: the sustainability reporting we are required to do. They ask us to provide a ton of information and data – unbelievable! Who will ever read all this? And moreover, what conclusions will eventually be drawn? What is the purpose? I must say, most of the time I don’t see it. Wouldn’t it be better if we had less paperwork?”
And where are we heading? Matthijs Degryse expects a lot because of the newly approved defense budgets in Europe and in the United States. “But… there is a large time lag between political decisions and their translation into concrete projects. We do expect some orders, but not before 2027. Another challenge is the Digital Product Passport (DPP) that the EU has decided to implement. That DPP should contain information about the product’s composition, as well as its carbon footprint, the reuse of parts, recycling possibilities, and more. The first DPP will be for batteries, in 2027. No less than 200 parameters have to be covered. It seems to be a very time‑consuming and complicated requirement. And from 2028 onwards, other products will follow. It is certainly not workable for Small and Medium-sized Enterprises (SMEs). And what will be done with all that information?”
Finally, on sourcing, both agreed. ‘We must avoid relying solely on imports from China. Shouldn’t we do what China did 20 years ago? And establish joint ventures in Europe between European and Chinese companies? Where the Chinese bring in their technology, just as we did in China in the past? And shouldn’t we require a minimum level of local content to preserve jobs in Europe?”
Fa Quix
“Volatile lead times in Europe are a major source of concern. Geopolitical instability only heightens this uncertainty, particularly due to U.S. import tariffs and retaliatory measures elsewhere in the world. For our company, a specific additional challenge is the growing number of components that have become obsolete as a result of rapid technological change.”
Mathijs Degryse (Advionics)
