European Chemical Industry on the Brink of Collapse! Three Major Japanese Firms Integrate Olefins Business; Evonik Launches Recycled-Content Transparent Polyamide

International News Highlights

Raw Material News - Cefic: Wave of Plant Closures & Sharp Investment Slump Threaten European Chemical Industry

Automotive News - Tesla Plans $20 Billion Investment to Deepen AI Layout

Packaging News - Tupperware Finds Buyer! BeFra Acquires Tupperware’s Latin American Business for $250 Million

Equipment News - Asahi Kasei, Mitsubishi Chemical to Integrate Olefins Business with Mitsui Chemicals, Shut Down One Cracker

Macro News - Vietnam and EU Upgrade Diplomatic Ties to Comprehensive Strategic Partnership

Price Information - RMB/USD Central Parity Rate at 6.9771, Down 16 Pips

International News Details

1. Cefic: Wave of Plant Closures & Sharp Investment Slump Threaten European Chemical Industry

On January 28, data from the European Chemical Industry Council (Cefic) shows that the number of chemical plant closures in Europe has surged since 2022, accounting for approximately 9% of total European capacity, while new investments have plummeted, sparking growing concerns over the competitiveness and long-term viability of the European chemical industry.

Marco Mensink, Director General of Cefic, stated: "The entire industry is under immense pressure and on the brink of collapse. The rate of plant closures has doubled in a year, and worse still, annual investment has halved to near zero. Both trends are accelerating, not slowing. We need decisive action this year that makes a real difference at the plant level."

The global chemical industry landscape has undergone a rapid rebalancing over the past two decades. In 2004, Europe accounted for 27% of global sales; by 2024, this share had fallen to 13%. In contrast, China’s share of global sales jumped from 10% to 46% over the same period. High energy costs, weak domestic demand, and pressure from low-cost imports have all exacerbated Europe’s predicament.

2. Asahi Kasei, Mitsubishi Chemical to Integrate Olefins Business with Mitsui Chemicals, Shut Down One Cracker

Mitsubishi Chemical Group Corporation, Asahi Kasei Corporation, and Mitsui Chemicals, Inc. have announced plans to establish a new joint operating entity to manage two ethylene production facilities in western Japan. As part of a comprehensive operational restructuring, the companies will close the Asahi Kasei-Mitsubishi Chemical ethyl steam cracker in Mizushima, and integrate the Osaka Petrochemical Industries Co., Ltd. cracker in Takaishi, with completion targeted by the end of fiscal 2031, or March 2031.

The equity ratio of the new joint venture will be determined based on the share purchases of each company. Prior to the merger, the combined annual ethylene production capacity of these facilities was 951,000 tonnes; following the shutdown of the Mizushima cracker, capacity will drop to 455,000 tonnes per year.

3. Adamant Group Acquires Majority Stake in Biorefinery Near Milan, Italy

Adamant Group has announced the acquisition of a majority stake in a biorefinery located in the Milan metropolitan area of Italy, marking a significant step in the company’s strategic expansion into biofuels and renewable feedstocks.

This move underscores Adamant Group’s long-term commitment to building a robust industrial footprint focused on upgrading and value conversion of renewable, advanced, and circular feedstocks, providing strong support for the energy transition.

The transaction is structured as a partnership between two established enterprises with complementary value chains. SAAR Depositi Portuali, a renowned Italian port infrastructure operator, participates in the project with its extensive logistics and warehousing expertise. The company operates coastal terminals at the Port of Genoa and the Port of Vado Ligure, with a total storage capacity of over 350,000 cubic meters, serving as a key enabler for efficient raw material handling and product distribution.

4. Solvay Inaugurates Europe’s First Bio-Circular Silica Production Site in Italy

Solvay Group, headquartered in Brussels, Belgium, has officially commissioned a new bio-circular silica production unit at its Livorno plant in Italy. This milestone marks an important step toward the sustainable transformation of European industry.

The investment not only positions Solvay as an active partner in achieving the goals of the European Green Deal and the upcoming Ecodesign for Sustainable Products Regulation (ESPR), but also further strengthens Italy’s status as a hub for green innovation.

5. Renowned German High-Tech Fabric Manufacturer Files for Insolvency

Sympatex Technologies GmbH, a functional fabric manufacturer based in Unterföhring, Munich, has filed for insolvency with the Munich Local Court. The court ordered the initiation of preliminary insolvency proceedings earlier this week (January 26). Its parent company, Smart Solutions Holding GmbH, has also filed for insolvency simultaneously.

According to the law firm handling the insolvency proceedings, Sympatex’s business operations continue without restrictions. Customer orders and ongoing projects are being processed as usual. Salaries for approximately 70 employees will be secured through insolvency transition benefits paid by the Federal Employment Agency until the end of March 2026.

For decades, Sympatex has been a leading supplier of high-tech functional fabrics to the apparel and textile industry, specializing in the research, development, and sale of waterproof, windproof, and breathable membranes for outdoor, sports, and workwear applications. Its materials are free of PTFE and PFAS, primarily based on polyester, and are claimed to be recyclable and integrable into existing textile circular systems.

6. Tupperware Finds Buyer! BeFra Acquires Tupperware’s Latin American Business for $250 Million

BeFra recently announced the signing of a definitive agreement to acquire the operating assets of Tupperware in Latin America, with a core focus on the region’s two major markets—Mexico and Brazil. The transaction also includes a perpetual, royalty-free exclusive license for the Tupperware brand across all of Latin America.

BeFra will acquire 100% equity of Tupperware’s Latin American business for $250 million, consisting of $215 million in debt-financed cash and $35 million in BeFra equity. The acquisition is structured on a cash-free, debt-free basis.

The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals and closing conditions.

7. Evonik Launches Transparent Polyamide Made from Recycled Plastic

Evonik has recently launched a transparent polymer manufactured from recycled plastic. Marketed under the name TROGAMID® R, the product is processed by Poliplastic SRL, an innovative polymer recycler.

Poliplastic SRL sources production scrap through a unique circular economy partnership with manufacturers of high-quality optical non-prescription sunglass lenses.

8. BASF to Open Digital Hub in India, Plans Job Cuts in Digital Services Division

BASF plans to open a global digital hub in Hyderabad, India, in the first quarter of 2026, further strengthening its existing network of global digital hubs in Europe (Ludwigshafen and Madrid) and the Asia-Pacific region (Kuala Lumpur).

Serving as a core carrier of digital expertise, the digital hubs aim to provide scalable, standardized digital services to BASF’s global operations. The establishment of the Hyderabad digital hub will optimize BASF’s global digital layout by integrating high-quality resources in a cost-effective region, enabling more efficient and agile service delivery.

9. Tesla Plans $20 Billion Investment to Deepen AI Layout

During its earnings conference call on January 28 local time, Tesla revealed that the company is streamlining its automotive product line while planning to invest $20 billion this year to shift its focus toward robotics and autonomous driving technologies.

Tesla aims to upgrade and retrofit several factories while expanding production capacity in 2026, build out artificial intelligence infrastructure, and scale up production of the Optimus humanoid robot and the autonomous Robotaxi vehicle.

Overseas Macro Market

Vietnam and EU Upgrade Diplomatic Ties to Comprehensive Strategic Partnership

Vietnam and the European Union have upgraded their diplomatic relations to a comprehensive strategic partnership, paving the way for deeper trade ties. During a visit to Hanoi by European Council President António Costa, the two sides signed a relationship agreement on Thursday, aimed at strengthening trade and investment cooperation in semiconductors, critical raw materials, and security.

"The parties will also explore cooperation in areas such as energy security, including enhanced exchanges on crisis response mechanisms," the EU stated in a declaration. "Both sides agree that maritime security, cybersecurity, and crisis management are key areas for further future cooperation, based on mutual respect for each other’s interests and priorities."

US Dollar Falls Again; "Bearish Dollar Trade" Overrides Bullish Impact of Bessent’s Remarks

The US dollar declined, halting its Wednesday rebound, as the "bearish dollar trade" regained momentum, offsetting the supportive effect of US Treasury Secretary Scott Bessent’s confirmation of a strong dollar policy.

The Bloomberg Dollar Spot Index fell 0.3%, while precious metals such as gold and silver extended their record-breaking rallies.

Jeffrey Gundlach, CEO of DoubleLine Capital, stated that the US dollar has been behaving contrary to its safe-haven status for some time, with investors favoring physical safe-haven assets like precious metals.

Cambodia-Thai Regional Border Committee Secretariat Meeting Fails to Reach Consensus

Malith Sothea, spokesperson for the Ministry of National Defense of Cambodia, said on the 29th that a three-day secretariat meeting of the Cambodia-Thai Regional Border Committee on border issues concluded that day without the two sides reaching any consensus.

Malith Sothea stated that the parties have not reached an agreement and have agreed to continue negotiations in the future until a consensus is reached. Once an agreement is reached, a meeting of the Cambodia-Thai Regional Border Committee will be held, and a formal signing ceremony will take place between Cambodia’s 5th Military Region and Thailand’s 1st Army Region.

US Media: Iran Refuses to Compromise on Civilian Uranium Enrichment and Missile Programs

As US military forces deploy closer to Iran, US media reported on the 28th that recent contacts have taken place between the US and Iran, but Iran has rejected certain US negotiation conditions, including those related to civilian uranium enrichment and ballistic missile programs—especially the latter, which Iran deems critical to its national security.

CNN reported that the "biggest sticking point" between the US and Iran is the US demand that Iran limit the range of its ballistic missiles, while Iran insists on only discussing the nuclear program, leaving "both sides at an impasse."

Iranian Foreign Minister Says Armed Forces "Ready to Pull the Trigger at Any Time"

Iranian Foreign Minister Araghchi stated on the 28th that Iran’s armed forces are "ready to pull the trigger at any time" to respond to acts of aggression against Iran.

Araghchi added that, at the same time, Iran has always welcomed a mutually beneficial, just, and fair nuclear agreement based on equality, free from coercion, threats, and intimidation, which would safeguard Iran’s right to the peaceful use of nuclear technology. Iran guarantees that it does not possess nuclear weapons and has never sought to acquire them. (Xinhua News Agency)

Price Information

RMB/USD Central Parity Rate at 6.9771, Down 16 Pips

The RMB/USD central parity rate was set at 6.9771, down 16 pips from the previous trading day. The prior day’s central parity stood at 6.9755, the official closing price was 6.9453, and the overnight offshore close was 6.9475.

Upstream Raw Material USD Market Prices

CFR Northeast Asia: 700 USD per tonne; CFR Southeast Asia: 685 USD per tonne.

Northeast Asia propylene: FOB Korea average 770 USD per tonne; CFR China average 825 USD per tonne.

North Asia refrigerated cargo CIF: propane 583–586 USD per tonne; butane 603–606 USD per tonne.

South China refrigerated cargo CIF (late February arrival): propane 613–623 USD per tonne; butane 608–618 USD per tonne.

Taiwan refrigerated cargo CIF: propane 583–586 USD per tonne; butane 603–606 USD per tonne.

LLDPE USD Market Prices

Film grade: 815 USD per tonne (CFR Xiamen);

Injection molding grade: 910 USD per tonne (CFR Xiamen).

HDPE USD Market Prices

Film grade: 900 USD per tonne (CFR Huangpu);

Injection molding grade: 800 USD per tonne (CFR Huangpu);

Blow molding grade: 795–850 USD per tonne (CFR Huangpu);

Pipe grade: 1000 USD per tonne (CFR Huangpu).

LDPE USD Market Prices

Film grade: 1015 USD per tonne (CFR Huangpu);

Coating grade: 1240 USD per tonne (CFR Huangpu).

PP USD Market Prices

Injection molding grade: 810 USD per tonne (CFR Dongguan);

Copolymer grade: 870 USD per tonne (CFR Nansha);

Film grade: 960 USD per tonne (CFR Huangpu);

Transparent grade: 1100 USD per tonne (CFR Huangpu);

Pipe grade: 1120 USD per tonne (CFR Shanghai).