Layoffs of 2,000: Three Chemical Giants Retreat Again

Recently, there is more news from the three major giants.The sale of assets and layoff news, if the transactions/plans are implemented, will result in a substantial gain of approximately 11 billion yuan, while affecting 2,000 people.

I. Dow

On September 2nd, Dow announced that it has sold a portion of its infrastructure joint venture shares to its partner Macquarie Asset Management for $540 million. Currently, Dow is focused on further developing its core business. Not long ago, Dow had just announced...Exit the other joint venture DowAksa, abandon it.Carbon fiber business.

Reportedly, this transaction is another step in Dow’s ongoing evaluation of ownership of non-product-producing assets within its global portfolio. It follows Dow’s sale of a 40% stake in certain U.S. Gulf Coast infrastructure assets at the end of 2024.Further actions after Macquarie'spart of the previously reached agreement）This will increase Macquarie's stake in the Diamond Infrastructure Solutions joint venture to 49%, thereby raising Dow's total proceeds from the transaction from $2.4 billion to approximately $3 billion.

It is reported that Dow will not completely withdraw from this business; the company will maintain a controlling stake in Diamond Infrastructure Solutions to ensure the continuity of safe and reliable operations.

From a business perspective, Dow's main operations are divided into three major business segments, primarily involving product chains such as ethylene and its derivatives, epoxy resins, polyurethanes, acrylic acid and esters, and silicones.

Diamond Infrastructure Solutions is the infrastructure supplier for Dow and its five plants located in Texas and Louisiana, USA. It consists of certain non-product-producing assets at Dow’s five manufacturing sites along the U.S. Gulf Coast (USGC), including power and steam generation, pipelines, environmental operations, and general site infrastructure: Freeport, Texas City, and Seadrift in Texas, as well as Plaquemine and St. Charles in Louisiana. The pipeline and storage assets are distributed across the U.S. Gulf Coast, connected to major natural gas, NGL, and olefins hubs.

2. OMV

On September 4th, according to a report by the Austrian newspaper Kurier, Austrian oil, gas, and chemical group OMV plans to lay off 2,000 of its 23,000 employees worldwide.

The report, citing union sources, stated that the company's Romanian subsidiary, Petrom, will be particularly hard hit, and that refineries in southern Germany and Slovakia are also planning layoffs.According to the report, out of the company's 5,400 positions in Austria, about 400 will be cut. The company plans to "reflect social awareness as much as possible" during the layoff process.

However, the business merger plan of OMV's chemical subsidiary, Borealis, will not be affected.

On March 4, 2025, Abu Dhabi National Oil Company (ADNOC) and OMV have reached a binding framework agreement regarding the proposed equity merger of Borealis and Borouge. The latter two are expected to...The first quarter of 2026Merged to form Borouge Group International, while simultaneously acquiring NOVA Chemicals, becoming a company that...With a value of over $60 billion, the world’s fourth largest new polyolefin leader is further expanding its business footprint in North America. Currently, Borealis has become one of the world’s top ten polyolefin producers and is also a leader in the European market for basic chemicals and plastic recycling.

III. ExxonMobil

On September 4, according to the Financial Times citing informed sources, ExxonMobil is seeking to sell its European chemical plants located in the UK and Belgium. The industry is currently affected by US tariffs and competition from China, and the sale could be worth up to $1 billion. ExxonMobil did not immediately respond to requests for comment from foreign media.

It is reported that due to US tariffs disrupting global trade, causing order delays and intensifying competition from cheap Asian imports, the European chemical industry is facing new pressures that threaten the recovery of the sector still affected by the 2022 energy crisis. ExxonMobil owns an ethylene plant in Fife, Scotland, and has multiple production sites in Belgium. The report states that the company has also discussed the direct closure of these plants.

These reports are currently inconclusive, and ExxonMobil may choose to retain these assets.In May of this year, ExxonMobil entered into exclusive negotiations with North Atlantic, a Canadian energy group, regarding the divestment of its majority stake in its French subsidiary, Esso.

，Given the current trend of industrial hollowing-out in Europe, it would not be surprising if ExxonMobil were to continue its "withdrawal."