BASF, Selling Again!

On May 20, BASF announced that it has signed an agreement with PQ, a global supplier of silicates, silica, and derivative products, to sell BASF's silicate business (including the sodium silicate operations and related activities at the Düsseldorf/Holthausen site) to PQ. The transaction is expected to be completed in the second half of 2026, and both parties have agreed not to disclose the financial details of the transaction.

BASFAfter completing the sale of its optical brightener business this year and signing an asset sale agreement for its sodium dithionite business, the company has made yet another divestment of its traditional chemical business.

On the same day, BASF announced that in the next phase of its “Winning Ways” strategy, it will focus on strengthening and developing its “core businesses.” The company has established a new “core businesses” transformation team to drive the implementation of the cross-functional transformation project “CoreShift.” The project aims to use 2024 as the baseline and reduce the net cash fixed costs of the core businesses by up to 20% by 2029. Key factors driving the transformation include further simplifying operations and the organizational structure, while increasing the widespread application of artificial intelligence across the BASF Group.

On the surface, BASF’s sale of its traditional silicate business and launch of a cost-cutting overhaul appear to be a routine strategic move. But when viewed against the backdrop of the global chemical industry as a whole, it becomes clear that this is far from an isolated case; rather, it is an act of self-rescue by companies confronting an industry-wide downturn.

Recently, the 2025 financial reports released by major global chemical giants show that many companies have suffered severe losses.Dow Chemical reported a full-year net loss of US$2.4 billion, while Covestro posted a net loss of €644 million.SABIC reported a net loss of approximately $6.6 billion, LyondellBasell reported a net loss of $738 million, INEOS posted a loss of €660 million, Lanxess reported a loss of €580 million, Huntsman reported a net loss of $284 million, and WACKER Chemie reported a net loss of €805 million······

Under the combined pressures of weak demand, overcapacity, geopolitical conflicts, and soaring energy costs, the once-glorious chemical giants have collectively fallen into a harsh winter.

Since the beginning of this year, chemical giants have been undergoing deep restructuring through large-scale layoffs, asset sales, and shutting down high-cost factories.

Saudi Basic Industries Corporation announced on January 8 that it will sell its European petrochemicals business and its engineering thermoplastics business in Europe and the Americas for $950 million.

Dow Chemical announced on January 29 the launch of a transformation and efficiency plan, which includes laying off approximately 4,500 employees globally (13% of its workforce). It will also close its silicone base plant in Barry, UK, by mid-2026.

According to early April reports, LG Chem is advancing a structural reorganization of its bisphenol A (BPA) business unit, a general petrochemical product, including the sale of equity. DuPont announced that it has completed the divestiture of its aramid business, including Kevlar® (para-aramid) and Nomex® (meta-aramid).

AkzoNobel announced on April 17 that it has signed an agreement to sell its business in Pakistan for approximately €50 million, with the transaction expected to be completed in the second half of 2026.

INEOS Inovyn, a specialized chemical subsidiary of the INEOS Group, will...April 21Announce the sale of shares related to the Italian chlor-alkali business.

On May 5, Celanese announced the closure of its Singapore plant and the optimization of its North American nylon 66 polymerization facilities. One day later, DOMO Chemicals announced plans to sell its engineered materials business, including PA6 and PA66.

Evonik continues to advance its layoffs. On May 8, Evonik stated that, as the final year of the “Evonik Tailor Made” efficiency enhancement program, the company plans to cut another 1,000 jobs in 2026.over 850 people have been laid off in 2025). The target previously announced in March 2024 was toBy the end of 2026, a total of 2,000 positions will be cut, which is expected to achieve annual cost savings of €400 million. On the same day,Wacker Chemie announced that it will cut around 1,600 jobs to reduce operating costs.

Asahi Kasei announced on May 12 its plan to streamline operations at its Mizushima plant in Japan by the fiscal year 2030. This involves styrene monomer (SM), low-density polyethylene (LDPE), high-density polyethylene (HDPE), acrylonitrile (AN), and polycarbonate diol (PCD).Production suspension / production reduction。

On the same day, Mitsubishi Chemical announced its withdrawal from the bioplastic business in Thailand. Earlier, in February, it had already announced its withdrawal from the coke and carbon materials business operated by its subsidiary Mitsubishi Chemical’s coal division.

In addition to the proactive business contractions by the aforementioned chemical giants, a number of once high-profile companies in the specialty materials and green recycling sectors have recently even entered bankruptcy or restructuring proceedings.

On May 11, British chemical recycling company Plastic Energy officially announced that it has entered administration. The company is a well-known player in the waste plastic pyrolysis recycling industry, and its bankruptcy is primarily due to severe cash flow challenges and a market downturn across the European industry.

On May 13, U.S. specialty materials solutions provider Trinseo announced a bankruptcy restructuring. The company’s net sales in 2025 were approximately $2.975 billion, down 15% year over year; it recorded a full-year net loss of $546 million. As of the end of the first quarter of 2026, its total debt had reached $2.8 billion.