How did Brenntag's new business structure help it respond to the Middle East war–induced supply shock?

Brenntag's new structure—streamlined by CEO Jens Birgersson through removal of intermediate management layers and creation of a direct connection from the executive committee to business units—enabled rapid, coordinated responses: 'In a matter of two or three days we can really go into a very high activity mode where everyone is focused. We put “All hands on deck” to secure supplies and adjust pricing for the new situation.' Operationally, the company prioritized stock visibility, anticipatory planning of customer needs, and supplier flexibility with multiple sourcing options, allowing it to 'secure supplies for everyone' without failure.

What was the impact of the Strait of Hormuz closure on global chemical supply chains, particularly in Asia?

The closure triggered a severe supply shock: Asia relies on the Middle East for 60–65% of its naphtha, leading to an immediate collapse in chemical production outside China; a wave of force majeures and production cuts swept the region, with 48 still in place in early June; panic buying in March caused chemical prices to surge at the fastest rate in 20 years, though many prices reversed from April onward as buyers recognized flat downstream demand could not sustain elevated levels.

Brenntag's New Business Structure Tested Amid Middle East War Disruption

Jun 12, 2026

Brenntag CEO Jens Birgersson details how organizational simplification aided response to supply shocks from the Iran war and Strait of Hormuz closure. The crisis triggered volatile pricing and regional divergences in chemical and fertilizer markets, exposing Europe's structural vulnerabilities.

icis

2025-11-12

Brenntag’s Earnings Decline, More Restructuring Planned

2026-01-07

Brenntag expands collaboration with Women in Chemicals

2026-01-28

Brenntag expands Givaudan beauty ingredients distribution deal to Malaysia and Singapore

2026-02-24

Toyobo posts substantial surge in profit

2026-02-26

Brenntag signs distribution deal with Brazil’s Nanum