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, 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 basic 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 the investment plan for its U.S. subsidiary Zeon Chemicals L.P.’s Texas plant—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 part of Jiaxing City—had already shut down eight production lines by the end of 2023; two more 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. The unit had an ethylene capacity of 865,000 tons/year and propylene capacity of 415,000 tons/year. SABIC has not disclosed specific layoff numbers, but the site directly employed approximately 330 staff, plus a similar number of contractors. This shutdown follows SABIC’s April 2024 announcement of the permanent closure of its Olefins III cracker in Geleen, the Netherlands (with annual capacities of 550,000 tons of ethylene and 325,000 tons of propylene), marking another step in its ongoing European business contraction. 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—and 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 regional facilities. Earlier, it had already announced closures of three sites across Europe and Africa: Groot-Ammers (the Netherlands), Cork (Ireland), and Lusaka (Zambia). In November, AkzoNobel and Axalta Coating Systems Ltd. reached a definitive agreement to merge, forming a global coatings company (AkzoNobel to hold 55%, Axalta 45%). In December, AkzoNobel completed the sale of its Indian subsidiary, AkzoNobel India Limited (ANIL), to India’s JSW Group. It also stated that it is selling 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 manufacturing 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.

€1.25 Billion! Why Didn’t Nippon Paint’s Joint Acquisition Succeed?

【Answer 2】 What about Sherwin-Williams? Although it is already the world’s largest coatings company by sales, it still aims to strengthen its capabilities in niche segments such as automotive and protective coatings. AkzoNobel happens to possess deep expertise precisely in these areas. Strategically, this acquisition made sense—but the counterparty simply didn’t see it that way. Why did Nippon Paint choose this timing? Nippon Paint’s move at this juncture was no impulsive decision. In November 2025, AkzoNobel had already finalized a merger agreement with U.S.-based coatings company Axalta. The two planned an equal merger. According to reports, the combined entity is expected to generate annual revenue of approximately $17 billion, making it the world’s second-largest coatings company—just behind Sherwin-Williams. For Nippon Paint, this was an unwelcome signal. Based on 2025 sales rankings, Nippon Paint ranked fourth globally—its gap with AkzoNobel was less than $200 million. Once AkzoNobel and Axalta merged, the new company’s scale would significantly widen the gap with Nippon Paint. Thus, Nippon Paint’s joint acquisition bid with Sherwin-Williams carried a clear “interception” intent—to present a cash offer before the AkzoNobel–Axalta merger formally closed, hoping to reverse the situation. Why did AkzoNobel say no? Why did AkzoNobel reject the acquisition proposal? Based on currently available public information, we can infer several reasons. First, AkzoNobel had already signed the merger agreement with Axalta and was progressing through regulatory and procedural steps. Per the agreement’s terms, any subsequent acquisition proposal would need to be “clearly superior” to the existing deal to qualify as such. Nippon Paint and Sherwin-Williams offered €73 per share—a premium of roughly 39% over the pre-announcement share price. The market responded positively at the time, with the stock rising 17%. Yet AkzoNobel’s board concluded that this price failed to reflect the company’s long-term intrinsic value. A second factor may have been concern over regulatory risks. The “joint acquisition followed by business split” model proposed by Nippon Paint and Sherwin-Williams would likely trigger antitrust scrutiny in jurisdictions including the EU and the U.S. Notably, Sherwin-Williams and AkzoNobel already overlap significantly in automotive and powder coatings businesses—regulators would likely require further asset divestitures. Lengthy approval timelines and high uncertainty made this path unnecessarily risky for AkzoNobel. Additionally, there was a less commercial—but equally critical—factor: concerns from employees, customers, and local communities were not adequately addressed.

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AkzoNobel intends to offer divestments to the European Union to resolve regulatory hurdles regarding its $25 billion acquisition of Axalta Coating Systems. The strategic move aims to secure final merger approval.

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