Chemical Industry Dynamics | Multiple Chemical Giants Shut Down Operations Again!

Domestically, in 2024, the Chinese polyether industry saw further concentration of production capacity among leading enterprises, with the industry’s capacity concentration ratio rising to 48%. Total domestic output reached approximately 5.55 million tons, while domestic consumption stood at around 4.08 million tons—a slight year-on-year increase—reflecting continued growth in downstream demand. China exported about 1.68 million tons of polyether and imported roughly 280,000 tons; exports continued to rise, while imports kept declining. The polyether industry is now in its mature stage, with extremely broad market applications spanning automobiles, home furnishings, construction, daily chemicals, textile printing & dyeing, agriculture, industry, pharmaceuticals, packaging, and wind power. Product forms include high-resilience foam, slow-recovery foam, slabstock sponge, self-skinning foam, and semi-rigid energy-absorbing foam. Basic polyethers for flexible and rigid foams yield only marginal profits. Only value-added, high-margin products—such as high-molecular-weight polyethers, graft polyethers, and specialty polyethers—produced by top-tier enterprises continue to grow rapidly. Promising product categories include those covered under Wanhua Chemical’s September announcement of expanded EOD polyether capacity (Wanhua Chemical Penglai Company’s EOD Polyether Expansion Project), e.g., conventional flexible-foam polyether, high-resilience polyether, differentiated polyether, low-solid-content POP blending lines, polycarboxylate superplasticizer polyether, differentiated EOD, and polyethylene glycol. Overall, domestic polyether facilities are accelerating expansion, imports continue shrinking, and exports keep rising—reaching a new record high. Domestic polyether producers will continue expanding capacity and moving further upstream into high-end products. Key players include Wanhua Chemical, Longhua New Materials, CNOOC Shell, Changhua Chemical, Hongbaoli, Jiahua Chemical, Zhejiang Petrochemical, Sinochem Dongda, Wudi Dexin, Tianjiao Chemical, and Dexin Federal. According to incomplete third-party statistics, China’s newly added polyol capacity between 2025 and 2029 will exceed 4 million tons/year. (2) INEOS: Closing Two More Plants—Involving Epoxy Resins and Chlorine On October 6, INEOS confirmed plans to shut down two manufacturing plants located in Rheinberg, Germany, resulting in the loss of 175 jobs. The direct reasons cited were soaring energy and carbon-emission costs, along with insufficient tariff protection. Both plants produce essential chemicals. The Allyl Chemicals Division manufactures key components for epoxy resins—critical for defense, aerospace, automotive, and renewable energy infrastructure. The Electrochemical Plant produces chlorine, vital for clean water, pharmaceuticals, industrial processes, and sanitation facilities. The following day, October 7, INEOS announced it would cut 20% of the workforce at its acetyl plant in Hull, UK, attributing the move to competition from cheap, high-carbon imported goods. Additionally, in September 2025, INEOS announced plans to shut down its propylene oxide (PO) and propylene glycol (PG) production units in Cologne, Germany, and to withdraw from relevant working groups of the European Chemical Industry Council (Cefic) in 2026. (3) Arlanxeo: Closure of 140,000-Ton Synthetic Rubber Plant On October 2, Arlanxeo France Elastomers—part of Saudi Aramco and one of the world’s largest synthetic rubber suppliers—announced plans to cease operations at its synthetic rubber production base in Port-Jérôme-sur-Seine, northern France.

In 2025, 44 Chemical Giants ‘Slim Down’: Shutting Down Facilities, Selling Businesses, and Cutting Jobs

In the same month, BASF completed the sale of its Brazilian decorative coatings business to Sherwin-Williams, including the Demarchi and Jaboatão production sites, related contracts, the Suvinil and Glasu! brands, and approximately 1,000 employees. Also that month, BASF sold its remaining coatings business to funds managed by Carlyle and the Qatar Investment Authority (QIA); BASF will retain a 40% equity stake in the coatings business and receive approximately €5.8 billion in pre-tax cash proceeds. In December, BASF sold its optical brightener business to Catexel, including its international operations at the Monthey plant in Switzerland and involving around 80 employees. 3. Arkema In January, Arkema decided to restructure its Jarrie plant in France (specializing in chlorine and its derivatives). Post-restructuring, chlorine, caustic soda, chloromethane, and technical fluids production will be discontinued, eliminating 154 positions. In December, Arkema announced plans to sell its plastic additives business segment to India’s Praana Group. This divestiture covers Arkema’s global impact modifiers and processing aids businesses—including methyl methacrylate-butadiene-styrene (MBS) copolymers worldwide and acrylic impact modifiers (AIMPA) in Europe and Asia. The transaction involves Arkema’s production facility in Vlissingen, the Netherlands, which employs 50 people. Arkema will retain its Mobile, Alabama (USA) plant and its entire AIMPA business in the United States. 4. INEOS In January, INEOS closed the UK’s last synthetic ethanol plant, resulting in hundreds of job losses. In May, INEOS sold its INEOS Hygienics business to SKG Capital Partners, a Middle Eastern family office, transferring both the business and its team to the buyer. In June, INEOS Phenol—a subsidiary of INEOS—announced plans to permanently halt production at its phenol (650,000 tons/year) and acetone manufacturing site in Gladbeck, Germany. The plant directly employed 279 workers and supported over 1,500 indirect jobs. In September, INEOS announced indefinite shutdowns of its European propylene oxide (PO) and propylene glycol (PG) production operations and plans to exit relevant working groups of the European Chemical Industry Council (Cefic) in 2026. In October, INEOS cut 20% of the workforce at its acetyl plant in Hull, UK—resulting in the loss of 60 technical positions. Also that month, INEOS announced plans to close two manufacturing plants in Rheinberg, Germany—the Allyl Chemicals Division (producing key epoxy resin components) and the Electrochemical Plant (producing chlorine)—leading to the loss of 175 jobs. 5. DuPont In January, DuPont accelerated the spin-off and independent listing process for its electronics business and canceled its previously announced plan (from May of the prior year) to separately list its water treatment business. In May, the spun-off electronics materials company was named Qnity. In July, reports indicated DuPont had listed for sale its iconic high-performance brands—Nomex and Kevlar aramid fibers—for heat-resistant applications.

Ineos to Shutter UK Acetyls Plants

Sep 24, 2026

Ineos plans to idle three UK acetyl plants due to high energy costs, marking the end of industrial-scale acetyl manufacturing in Europe. The shutdown affects 300 employees and halts production of key chemicals including acetic acid and ethyl acetate.

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