44 Chemical Giants 'Slim Down' in 2025: Plant Closures, Divestitures, and Layoffs

【Answer 1】 In January, Japan’s Ube Corporation announced a fundamental restructuring of its core business operations, deciding to shut down production lines for cyclohexanone, nylon, caprolactam, and related products, and comprehensively adjust its strategic layout. In September, it announced an acceleration of the structural reform announced in January, advancing the timeline for scaling back and exiting its base chemical business in Thailand—from “March 2027” to “March 2026”. 34. Zeon Corporation (Japan) In January, Zeon Corporation decided to freeze for approximately two years its investment plan for its U.S. subsidiary Zeon Chemicals L.P.’s Texas facility—originally intended to produce lithium-ion battery binders scheduled to commence operations in 2026. 35. Hyosung (South Korea) In May, according to Eco Jiaxing, due to environmental concerns, Hyosung Spandex (Jiaxing) Co., Ltd.—located in the northern district of Jiaxing City—had already shut down eight production lines by the end of 2023; two additional lines will be closed in July this year, another two by March 2026, and all remaining operations are slated for complete shutdown by the end of 2026. 36. SABIC In June, SABIC confirmed the permanent shutdown of its Olefins VI cracker unit located in Teesside, England, UK. The unit has an ethylene capacity of 865,000 tons/year and propylene capacity of 415,000 tons/year. SABIC has not disclosed the exact number of layoffs, but the site directly employs approximately 330 staff, with a similar number of contractors. This shutdown follows SABIC’s April 2024 announcement of the permanent closure of its Olefins III cracker in Herleen, the Netherlands (with annual capacities of 550,000 tons of ethylene and 325,000 tons of propylene), marking another step in its ongoing contraction of European operations. 37. AkzoNobel In January, AkzoNobel announced the restructuring of its French operations, including a €22 million investment to transform its Montataire plant into a flagship facility for decorative coatings production, alongside plans to cut 211 jobs while creating 29 new positions. In May, AkzoNobel announced plans to close its manufacturing sites in Wapenveld (the Netherlands) and Machelen (Belgium), consolidating production into other facilities across the region. Previously, it had announced closures of three production sites—in Groote Amers (the Netherlands), Cork (Ireland), and Lusaka (Zambia)—across Europe and Africa. In November, AkzoNobel and Axalta Coating Systems Ltd. reached a definitive agreement to merge, creating a global coatings company (AkzoNobel to hold 55% and Axalta 45% of the combined entity). In December, AkzoNobel completed the sale of its AkzoNobel India Limited (ANIL) to India’s JSW Group. It also stated that it is divesting its Pakistan business and expects further divestitures going forward. Notably, in September last year, AkzoNobel announced plans to cut approximately 2,000 jobs globally by the end of 2025. 38. SGL Carbon In May, SGL Carbon decided to close its production site in Lavradio, Portugal—currently employing around 250 people and producing acrylic fibers and carbon fiber precursor. 39. Kraton Corporation On May 7, Kraton Corporation announced a strategic realignment of its business to sharpen focus on core competencies and accelerate long-term growth.

US$25 Billion Merger Enters Critical Regulatory Window: AkzoNobel and Axalta to Divest Vehicle Refinish Business

【Answer 2】 According to Huizheng Information, AkzoNobel and Axalta plan to divest Axalta’s Vehicle Refinish business to secure “conditional approval” from the European Commission for their US$25 billion merger. The two parties met with the European Commission on October 7 to discuss remedial measures and plan to formally submit their proposal next week. This submission will extend the original decision deadline of October 22 by approximately ten working days. From a transaction background perspective, the two companies announced their merger plan in November 2025, with a total deal value of US$25 billion. The merger will be executed as an all-stock “merger of equals” to form a global coatings enterprise. Upon completion, AkzoNobel’s former shareholders will hold 55% of the new company, while Axalta’s former shareholders will hold 45%, and will receive a special cash dividend of US$2.5 billion. The new company plans to establish dual headquarters in Amsterdam, the Netherlands, and Philadelphia, USA, with projected annual revenue of approximately US$17 billion and adjusted EBITDA of around US$3.3 billion. The parties anticipate annual cost savings of approximately US$600 million. The merger received overwhelming shareholder approval on August 5, 2026: 98.87% of AkzoNobel’s shareholders voted in favor, and 99% of Axalta’s shareholders approved the deal. Axalta primarily operates in automotive OEM coatings, vehicle refinish coatings, and industrial coatings—with a strong presence in the U.S. market—while AkzoNobel possesses an extensive production and sales network across Europe and other international markets. The two companies aim to reduce operating costs and respond to pressures arising from volatile raw material prices, shifting trade policies, and intensifying industry competition. The European Commission has registered the merger case as M.12269 – AKZONOBEL / AXALTA and officially received the formal notification on September 17, 2026. If the transaction ultimately receives conditional approval, the merged entity will cover the full spectrum—including decorative paints, industrial coatings, automotive OEM coatings, and vehicle refinish coatings—and become a globally leading “one-stop-shop” solutions platform in the coatings industry, thereby reshaping the global competitive landscape.

AkzoNobel, Axalta Near Merger Approvals with Two Unit Sales

Oct 21, 2026

AkzoNobel and Axalta are nearing regulatory approval for their $25 billion merger after agreeing to sell specific regional units to antitrust authorities. The deal is expected to close in early 2027 following concessions to the US FTC and European regulators.

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AkzoNobel, Axalta Near Merger Approvals with Two Unit Sales

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