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Seven Major Chemical New Material Giants: Sell-Offs, Shutdowns, and Layoffs!

New Chemical Materials 2025-10-19 15:20:00

Recently, Dow, INEOS, Trinseo, Arlanxeo, Toray, 3M, and Polyplastics have successively announced a series of strategic measures involving products such as polyether polyols, epoxy resins, chlorine, MMA (methyl methacrylate), polystyrene, synthetic rubber, battery separators, and engineering plastics.

Japan Polypropylene Plastics

On October 16, Daicel Corporation announced that it has decided to acquire all of Polyplastics Co., Ltd.'s businesses (excluding the shareholding and management businesses of its subsidiaries and affiliated companies) through an absorption-type merger starting from April 1, 2026.

Specifically, Polyplastics (a Japanese company) will be divided into (1) the engineering plastics business (including related ancillary businesses) and (2) the shareholding and management business of Polyplastics subsidiaries and affiliated companies. The (1) business will be taken over by Celanese. After the division, Polyplastics will continue to retain its legal entity status. Currently, there are considerations to change the names of Polyplastics and its Japanese and overseas subsidiaries and affiliated companies. The new company name and specific timing of the changes will be announced at a later date.

To further strengthen its engineering plastics business, Daicel acquired Polyplastics as a wholly-owned subsidiary in 2020. Since then, the two companies have continuously strengthened this business through collaborative initiatives such as the introduction of Daicel-style production innovations (e.g., Fuji Plant). The decision-making speed has also significantly improved: in November 2024, Daiboli Engineering Plastics (Nantong) Co., Ltd. will commence commercial production of POM; in February 2025, Taiwan Polyplastics Co., Ltd. (Kaohsiung City) will start production at its LCP polymer plant; and the second COC plant of TOPAS Advanced Polymers GmbH (Saxony-Anhalt, Germany) is also scheduled to commence production in April 2026, ensuring steady growth of the engineering plastics business. Additionally, Polyplastics achieved a record high in profits last year.

Tianli announced that it will sell all of its 50% stake in LG Toray Hungary Battery Separator Kft. (LTHS) to LG Chem, with a transaction price of approximately 30 billion yen.

LTHS was established in June 2022 and is a joint venture in Hungary with Toray and LG Chem each holding 50% of the shares. It primarily manufactures and sells battery separators for lithium-ion secondary batteries (LIB).

Previously, Toray had reached an agreement with LG Chem to sell 20% of its stake in LTHS to LG Chem after June 30, 2025. This time, Toray has agreed to sell the remaining 30% stake, with completion expected in December 2025. Once this transaction is completed, Toray will completely exit the battery separator business in Hungary, and LG Chem will take over entirely.

In the future, Toray will continue to develop, produce, and supply products at its battery separator-related bases in Japan and South Korea (film production and coating processing) as always.

Recently, 3M Company has been in discussions with investment banks about the potential sale of certain assets in its industrial division. This strategic move could involve transactions worth billions of dollars, as the company aims to streamline its operations and business portfolio by divesting slower-growing business segments.

3M's Safety and Industrial division, which had revenues of approximately $11 billion last year, includes various business lines such as aftermarket automotive products, personal safety equipment, and industrial adhesives and tapes. Sources indicate that 3M has not yet made a final decision on divesting these assets and may still choose to maintain its current structure.

3M's business is divided into three sectors: Safety and Industrial (accounting for approximately 44% of revenue), Transportation and Electronics (36%), and Consumer (20%). The company recently spun off its healthcare business, now known as Solventum. Nearly half of 3M's revenue comes from regions outside the Americas, and the company's current market capitalization is approximately $84.48 billion.

Dow Chemical

Recently, Dow Chemical announced that it will permanently close its polyether polyols production facility in Tertre, Belgium by the end of the first quarter of 2026. This move will affect 37 employees and 8 contractors, and the plant has an annual capacity of 94,000 tons.

This move was made by Dow following a strategic review of its European assets, with a focus on the polyurethane business. The demand for the European polyether polyols market is weak, especially from key end-use sectors such as automotive, home appliances, construction, and upholstered furniture. Overcapacity and rising imports (with an average annual import volume of 286,000 tons from 2020 to 2024, reaching a record 323,000 tons last year) have further challenged the competitiveness of European producers, with China, South Korea, and Saudi Arabia being the main sources of supply.

Although the Tertre plant has been closed, Dow still has an annual production capacity of 530,000 tons in Terneuzen, Netherlands, and 60,000 tons in Tarragona, Spain, which will ensure a continuous and uninterrupted supply to its customers.

The closure of the Tertre plant is part of Dow's broader rationalization plan in Europe. This plan also includes the closure of an ethylene cracker in Borken, Germany, by the end of 2027, as well as the chlor-alkali and vinyl assets in Schkopau, Germany; and the closure of a basic silicone plant in Barry, UK, by mid-2026.

Ingersoll Rand

Recently, INEOS announced plant closures and layoffs, totaling 235 job cuts.

60 employees laid off at the Hull factory in the UK.

On October 7th, INEOS announced that it will cut 20% of the workforce at its acetyls plant in Hull, UK. This layoff will result in the loss of 60 technical positions. The direct reasons are the soaring energy costs and anti-competitive trade practices—importers are "dumping" related products into the UK and European markets.

Innospec is the largest producer of acetic acid, acetic anhydride, and ethyl acetate in the UK and Europe. These chemicals are crucial for various fields, including food preservation, pharmaceuticals (such as aspirin and acetaminophen), diagnostic tests, adhesives, and industrial coatings.

Closing two factories in Germany and laying off 175 employees.

On October 6th, INEOS Group announced plans to close two production plants located in Rheinberg, Germany, which will result in the loss of 175 jobs.

Both of these factories produce essential chemicals. The allyl chemicals division produces raw materials that are key components of epoxy resins, which are crucial for defense, aerospace, automotive, and renewable energy infrastructure. The electrochemical plant produces chlorine, which is vital for clean water, pharmaceuticals, industrial processes, and sanitation facilities.

INEOS stated that it will now focus on retaining its remaining polyvinyl chloride (PVC) operations in Rheinberg to support approximately 300 technical positions. This requires urgent government support to offset the massive local transformation costs.

It is understood that INEOS has closed its plants in Grangemouth, UK, and Herne, Belgium, is in the process of closing its plant in Gladbeck, Germany, and has mothballed its assets in Tavaux, France, and Martorell, Spain. On September 18, INEOS also decided to indefinitely shut down its propylene oxide (PO) and propylene glycol (PG) production in Cologne, Germany.

Styron

On October 6, Trinseo announced a series of strategic plans aimed at further optimizing operations, enhancing cash flow generation capabilities, and strengthening long-term profitability.

Close the MMA production facilities in Italy.

The company will permanently close its methyl methacrylate (MMA) production facility located in Rho, Italy, and its acetone cyanohydrin (ACH) production facility located in Porto Marghera, Italy. ACH is a precursor raw material for MMA. The plant closures are expected to be completed by the end of this year and will result in an estimated annual profitability improvement of approximately $20 million and a reduction in annual capital expenditures of approximately $10 million.

In the future, the company will procure MMA raw materials from third-party manufacturers to ensure continuity of supply and improve the overall cost of producing downstream products.

Trinseo stated that it will continue its polymethyl methacrylate (PMMA) business and the recently commissioned depolymerization pilot facility in Rho, Italy.

Possible Closure of Polystyrene Production Facility in Germany

In addition, Sinochem announced the possible closure of its polystyrene (PS) production facility in Schkopau, Germany, and the consolidation of remaining PS production at its plant in Tessenderlo, Belgium. If an agreement is reached, this move is expected to enhance the company's annual profitability by $10 million.

A Lang's New Subject

On October 2nd, synthetic rubber producer ARLANXEO plans to cease operations at its Port Jerome facility in France.

The Jerome Port plant has been in a state of structural loss. Despite many improvement efforts by the company, no viable path for sustained structural improvement is expected.

It is reported that Arlanxeo is a wholly-owned subsidiary of Saudi Aramco, with a production capacity of 100,000 tons per year of polybutadiene rubber (PBR) and 40,000 tons of styrene-butadiene rubber (SBR), and has a production facility in La Wantzenau, France.

It is worth mentioning that upstream, ExxonMobil closed its butadiene (BD) and cracking units located in Jerome Park last year, with a rated capacity of 90,000 tons/year of BD.

In summary, the four companies, Dow, INEOS, Solvay, and Lanxess, stated that the direct reasons for their shutdowns include not only the weak demand in the European end markets and high energy prices but also the increase in imports from Asia.

On October 8, INEOS announced that about half of Europe's ethylene production capacity will be shut down before 2030. Currently, 21 major chemical plants in Europe have closed, with a capacity of over 11 million tons, and more plants are expected to close. The overall chemical production in Europe is declining significantly, with a 30% decrease in the UK, an 18% decrease in Germany, and a 12% decrease in France.

Eight out of the top ten chemical companies in the world are reducing or exiting Europe, while the top ten producers in the United States are investing and expanding. China's chemical production has an average annual growth rate of 9%, and production capacity in the Middle East is also rapidly increasing.

Shockingly, the European chemical industry is being squeezed out of the global market due to its own high costs. Natural gas prices in Europe are four times higher than those in the United States, and with the high carbon taxes on the continent and tariffs in the U.S., the industry simply cannot compete with America.

In addition, Sir Jim Ratcliffe, the founder and chairman of INEOS, has called for urgent intervention from European politicians to save the chemical industry. "We are at a critical juncture and there are three issues that need to be addressed. Firstly, remove the green taxes from energy costs. Secondly, abolish the carbon tax. Thirdly, provide us with some tariff protection. What we need is action, not sympathetic words; otherwise, the European chemical industry will be left with very little."

Last month, Julia Schrenz, president of Dow's Europe, Middle East, Africa, and India region, stated that the European chemical and petrochemical industry is facing a "multiple crisis" due to weak domestic demand and a large amount of new capacity being built overseas.

Since 2023, the following companies and facilities have been shut down in Europe:

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Seven Major Chemical New Material Giants: Sell-Offs, Shutdowns, and Layoffs!

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