Toray, BASF, and Dow collectively withdraw! Has the 'big-and-comprehensive' era of the chemical industry truly come to an end?

Just days later, on May 29, Toray announced its decision to transfer its shares in Sodakō Fragrance Co., Ltd. Toray (holding 66% of the shares) and Mitsui & Co. (holding 34%) jointly decided to transfer all their shares in Sodakō Fragrance to Samyang Corporation Japan Co., Ltd., a subsidiary of South Korea’s Samyang Corporation, and have signed a share transfer agreement. The enterprise value of this transaction is ¥41 billion, with completion expected in the first half of fiscal year 2027, subject to approval by relevant regulatory authorities. Toray’s move is not merely a simple 'contraction'; rather, it aims to concentrate more resources on high-value-added sectors—such as aerospace, defense, and high-end pressure vessels—and strengthen the profitability of its high-performance materials business. A wave of global chemical giants undergoing 'slimming down' Toray’s action is no isolated case. Across 2025–2026, the global chemical industry is undergoing an unprecedented structural transformation: layoffs, plant closures, asset sales, and withdrawal from traditional businesses have virtually become the 'common language' among international giants. According to incomplete statistics, since the beginning of 2026 alone, announced layoff plans by global chemical and related industry giants have cumulatively involved nearly 10,000 employees. 1. BASF: €7.7 billion divestiture of coatings business BASF’s restructuring effort is arguably the most extensive. In October 2025, BASF signed a binding agreement with The Carlyle Group to divest its global coatings business at an enterprise valuation of €7.7 billion (retaining a 40% equity stake), expecting to generate approximately €5.8 billion in pre-tax cash proceeds. In the same month, its Brazilian decorative coatings business was sold to Sherwin-Williams for USD 1.15 billion. In January 2026, BASF initiated the divestiture of non-core assets including trinamiX GmbH. BASF explicitly launched its new 'Winning Formula' strategy, centering on core industrial chemical operations and systematically shedding non-strategic assets. Source: BASF 2. Dow Chemical: 4,500 layoffs and closure of three plants On January 29, 2026, Dow Chemical announced a comprehensive 'Transformation for Efficiency' restructuring plan, involving approximately 4,500 global layoffs—about 13% of its total workforce—and a USD 2 billion efficiency initiative, expected to incur one-time costs of USD 1.1–1.5 billion. Earlier, Dow formally announced the permanent shutdown of its ethylene cracker unit in Böhlen, Germany; its chlor-alkali and vinyl assets in Schkopau; and its base silicone facility in Barry, UK. It also postponed advancement of its Path2Zero project in Canada. Dow’s contraction focuses primarily on high-cost production bases in Europe, underpinned by the core logic of 'exiting inefficient capacity and concentrating on advantageous regions.' 3. Asahi Kasei & Mitsubishi Chemical: Simultaneous announcements of large-scale exits On May 12, 2026, Japan’s two chemical industry leaders—asahi Kasei and Mitsubishi Chemical—announced business shutdowns and exit plans on the same day, covering multiple bulk and fine chemical products, including styrene monomer, polyethylene, acrylonitrile, polycarbonate diol, and biodegradable plastic PBS. Mitsubishi Chemical’s retrenchment is even more aggressive: in March, it transferred all its shares in Kaohsiung Plastics Chemical Industry Co., Ltd. in Taiwan; in February, it announced its exit from coke, needle coke, asphalt coke, and other carbon-materials and coal-related businesses, affecting approximately 600 employees.

In 2025, 44 chemical industry giants underwent 'major slimming down': plant closures, asset/business sales, and layoffs

In 2025, the chemical industry is undergoing an unprecedented structural transformation, driven by multiple overlapping pressures. This article focuses on key corporate actions taken globally during the year—including plant and capacity shutdowns, asset and business divestitures, and workforce reductions—across 44 chemical industry giants, including BASF, Dow, Arkema, Covestro, and DuPont. 1. Dow January: Dow announced a USD 1 billion cost-cutting initiative and a plan to eliminate approximately 1,500 positions worldwide. April: Dow announced the potential permanent closure of its ethylene cracker unit in Böhlen, Germany; its chlor-alkali and vinyl assets in Schkopau; and its base silicone facility in Barry, UK. In July, it formally confirmed the shutdown of these three facilities. It also decided to postpone construction of its Path2Zero project in Fort Saskatchewan, Alberta, Canada. June: Dow sold its 50% stake in the joint venture DowAksa to acrylic fiber producer Aksa Akrilik Kimya Sanayii A.Ş. August: Dow canceled its plan with Mura Technology to build a chemical recycling facility in Böhlen, Germany—expected to affect approximately 800 people. September: Dow sold part of its infrastructure joint venture stake to its partner Macquarie Asset Management. October: Following a strategic review of its European assets—with particular focus on polyurethane operations—Dow decided to permanently close its Tertre, Belgium, polyether polyol production facility (94,000 tons/year) by the end of Q1 2026, impacting 37 employees and 8 contractors. 2. BASF January: BASF sold its Styrodur® business to Karl Bachl Kunststoffverarbeitung GmbH & Co. KG, affecting approximately 50 employees; the sale was completed in July. August: BASF completed the sale of Wintershall Dea’s exploration and production business (excluding Russian-related operations) to Harbour Energy, affecting approximately 800 people. Also in August: BASF and Yara International jointly decided to terminate their project to develop a low-carbon ammonia production facility equipped with carbon capture and storage technology on the U.S. Gulf Coast. September: BASF decided to exit the hydrosulfites business and shut down the related production facility in Ludwigshafen, affecting approximately 65 employees. October: BASF completed the sale of its food and health functional ingredients business to Louis Dreyfus Company, including a production site in Illertissen, Germany; three application laboratories outside Germany; and approximately 300 employees. Also in October: BASF completed the sale of its Brazilian decorative coatings business to Sherwin-Williams, including the Demarchi and Jaboatão production sites, associated contracts, the Suvinil and Glasu! brands, and approximately 1,000 employees. Also in October: BASF sold its remaining coatings business to funds managed by The Carlyle Group and Qatar Investment Authority (QIA), while retaining a 40% equity stake in the coatings business and receiving approximately €5.8 billion in pre-tax cash proceeds.

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