Elkem Sells Silicone Business Assets! Combined Losses of 8 Major South Korean Petrochemical Firms Widen; Avient Announces Dyneema Capacity Expansion

International News Highlights:

Raw Material News - Elkem Reaches Agreement to Sell Core Silicone Business Assets to BlueStar

Automotive News - US Tariffs Hit Hard: Japanese Automakers Lose $13.7B in Profits

Electronics News - Toray Achieves Breakthrough in PFAS-Free, Fluoropolymer-Alternative High-Performance Flexible PPS Resin

Mechanical News - Cannon’s Mechanical Recycling Process Shows Promise for Rigid PU & Glass Fiber-Reinforced PU Composites

Other News - Kaneka Launches Biodegradable Artificial Turf

Macro News -New Round of US-Iran Talks and US-Russia-Ukraine Talks to Be Held in Geneva, Switzerland on February 17

International News Details:

1. Elkem Reaches Agreement to Sell Core Silicone Business Assets to BlueStar

Elkem ASA announced on February 14 that it has reached an agreement to sell the core assets of its silicone business to BlueStar. The transaction consideration will be settled through the redemption of all Elkem shares held by BlueStar (including BlueStar Elkem International Co., Ltd. and its affiliates). Following completion of the proposed transaction, Elkem will continue to operate its business portfolio comprising silicon products, carbon solutions, and other businesses.

2. Avient Expands Dyneema Fiber Capacity Amid Surging Defense Market Demand

As learned from Plastmatch on February 14, Avient, a global leader in sustainable innovative material solutions, announced during its recent earnings call plans to expand production capacity for Dyneema fibers. Referred to by the company as the world’s strongest fiber, Dyneema forms the cornerstone of Avient’s defense business portfolio. The company achieved double-digit growth in the defense market in 2024 and high single-digit growth in 2025. With anticipated increases in U.S. and European defense spending, Avient is optimizing existing production facilities and investing in new capacity to meet rising demand.

3. Toray Achieves Breakthrough in PFAS-Free, Fluoropolymer-Alternative High-Performance Flexible PPS Resin

Japan’s Toray has developed a high-performance flexible polyphenylene sulfide (PPS) resin combining flame retardancy and heat resistance. The material is free of per- and polyfluoroalkyl substances (PFAS) and offers cost advantages over fluoropolymers. Potential applications include cooling lines, connectors, fasteners, protective components, and electrical parts, while helping reduce component count and simplify production processes. Multiple countries have implemented PFAS usage restrictions, driving a sharp rise in demand for PFAS-free materials. Resin manufacturers are actively developing fluorine-free resins and additives for medical, automotive, packaging, and other sectors.

4. Cannon’s Mechanical Recycling Process Shows Promise for Rigid PU & Glass Fiber-Reinforced PU Composites

At JEC WORLD 2026 (March 10–12, Paris Nord Villepinte Exhibition Centre, France), Cannon will showcase its revolutionary recycling technology for polyurethane (PU) and glass fiber-reinforced polyurethane composites (GFRP). Developed in close collaboration with PU processor MAP S.p.A. and the University of Bergamo, the process received joint funding from Italy under the EU’s NextGenerationEU strategic plan. Named POSSIBLE (Production of Sustainable Industrial Products), the project establishes a technical foundation for end-of-life recycling and reuse of PU and GFRP composites, successfully validating that crushed foam and granular components can serve as secondary reinforcement materials in new composite formulations.

5. BASF Transforms Global Business Services, Consolidates Finance & HR in India

BASF is driving the transformation of its global business services division to ensure long-term cost competitiveness, resilience, and reliable service delivery for global operations through next-stage optimization initiatives. To better align with business needs and significantly improve cost efficiency, the global business services division plans to establish a new global hub in India, consolidating finance and human resources services; supply chain-related services will be integrated into the existing hub in Kuala Lumpur, Malaysia. Business activities requiring proximity to operations will continue to be managed regionally or locally. This initiative is part of a broader transformation strategy aimed at building an integrated service portfolio, driving standardization and automation more efficiently, and leveraging geographies with significant cost advantages.

6. Kaneka Launches Biodegradable Artificial Turf

In summer 2025, Japan’s Kaneka and Mizuno, a specialist in artificial turf, entered a partnership to launch a biodegradable artificial turf project for sports facilities, which has now been officially implemented. The eco-friendly material is currently used in the “warning zone” surrounding the baseball field at Nagoya’s Vantelin Dome. The turf utilizes “Green Planet” bioplastic materials developed by the two companies for fiber and base fabric production. “Green Planet” is a composite material based on polyhydroxyalkanoate (PHA), a bio-based polymer that biodegrades in soil and marine environments.

7. US Tariffs Hit Hard: Japanese Automakers Lose $13.7B in Profits

According to reports, based on the latest financial results from Japanese automakers, tariffs imposed by the U.S. Trump administration caused Japan’s seven major automakers to lose a combined 2.1 trillion yen (approximately $13.7 billion) in operating profits from April to December 2025, erasing nearly 30% of their profits. In recently released financial reports, Japanese automakers all noted that the impact of U.S. tariff policies far exceeded expectations. Mitsubishi Motors CEO Takao Kato stated that tariffs have had an “extremely severe impact” on the company.

8. Combined Losses of 8 Major South Korean Petrochemical Firms Widen to 1.5 Trillion KRW in 2025

South Korea’s major petrochemical companies reported a combined preliminary operating loss of 1.5 trillion KRW in 2025, a significant increase from the 1.1 trillion KRW loss in 2024. Major companies booked one-time expenses with a focus on long-term recovery. It will take considerable time for industry restructuring effects to materialize. The primary factor behind the operating losses was a sharp narrowing of olefin product spreads; the bearish outlook for olefins will continue through 2026. According to a report released by South Korea’s NICE Investors Service on February 10, despite consecutive losses in 2024 and 2025, a sharp decline in product spreads in Q4 2025 and booked one-time items further widened annual losses. The eight companies include LG Chem (excluding LG Energy Solution), Lotte Chemical, Korea Petrochemical Ind. Co. (KPIC), Hanwha Solutions, SKC, Kukdo Chemical, Kumho Petrochemical, and Hyosung Chemical.

9. Chinese Brands Compete for Mexican Auto Plant Amid Overseas Expansion

According to sources, BYD and Geely have been shortlisted as final bidders for a Mexican automotive plant. Against the backdrop of U.S. tariff policies leading to plant closures and layoffs in Mexico, multiple Chinese automakers are actively seeking opportunities to establish production bases there. Rumors indicate up to nine companies are interested in acquiring the plant; in addition to BYD and Geely, Chery and Great Wall Motors are also participating in the bidding.

Overseas Macro Market:

New Round of US-Iran Talks and US-Russia-Ukraine Talks to Be Held in Geneva, Switzerland on February 17

Reuters reported on February 13 that a new round of US-Iran negotiations and US-Russia-Ukraine talks will take place in Geneva, Switzerland, on February 17. Citing sources, Reuters said a US delegation including President Trump’s envoy Witkoff and his son-in-law Kushner will hold talks with Iranian representatives on the morning of February 17, with Omani officials mediating between the two sides. In the afternoon of the same day, the US delegation will hold trilateral talks with Russian and Ukrainian representatives. Earlier on February 13, Kremlin spokesman Peskov stated that the new round of Russia-US-Ukraine talks will be held in Geneva from February 17 to 18, with the Russian delegation led by Presidential Assistant Medinsky.

French Auto Industry Employment Down by One-Third Between 2013 and 2023

Data released by France’s National Institute of Statistics and Economic Studies (INSEE) on February 13 shows that employment in France’s automotive sector, including manufacturers and suppliers, fell by 33% between 2010 and 2023 due to slumping sales, plant closures, and outsourcing, with layoffs becoming increasingly common. The survey indicates that industry-wide employment dropped from 425,500 in 2010 to 286,800 in 2023, eliminating nearly 139,000 full-time positions.

Switzerland to Hold Referendum on Population Cap of 10 Million

Switzerland will hold a national referendum in June on a proposal to cap its population, deciding whether to implement control measures once the total population reaches 10 million. CNN reported on February 13 that the proposal, put forward by the Swiss People’s Party—the largest party in the Federal Assembly—will be put to a vote on June 14. The bill requires legislation to cap Switzerland’s permanent resident population, including Swiss citizens and foreign nationals with residence permits, at 10 million by 2050. If the population reaches 9.5 million before that, the government must take steps to limit growth, such as restricting the issuance of asylum, family reunification, and residence permits, and renegotiating international agreements. Once the population hits 10 million, the government must terminate the free movement of persons agreement with the EU.

Trump Confirms US to Send Second Aircraft Carrier to Middle East

On February 13, US President Donald Trump confirmed that the US military will deploy a second aircraft carrier strike group to the Middle East to pressure Iran into reaching an agreement with the US. Speaking to reporters at the White House, Trump said, “We’re going to need it [the second carrier] if we don’t make a deal” with Iran. He added that if an agreement is reached, the US carrier will “leave very quickly”.

Trump Says He Will Visit Venezuela

Reporters learned on February 13 that when asked during a media interview whether he would visit Venezuela, US President Donald Trump responded, “I will visit Venezuela.” He provided no further details, including a specific date or itinerary.

Quick Comment on US January CPI Data

US January CPI inflation came in below expectations, but core inflation strengthened as companies raised prices at the start of the year. Combined with a stabilizing labor market, this may lead the Federal Reserve to keep interest rates unchanged for some time. January core CPI figures have historically exceeded expectations, and economists note that the Bureau of Labor Statistics’ seasonal adjustment models fail to fully account for the impact of one-off price increases at the beginning of the year. Economists expect inflation to pick up temporarily this year, driven by the pass-through effects of import tariffs and last year’s depreciation of the US dollar against major trading partner currencies.