Epoxy resin prices rise domestically after the Spring Festival; overseas epoxy businesses accelerate integration.

In recent years, the growth rate of China’s epoxy resin production capacity has significantly slowed. Following a period of rapid expansion, the industry now faces pronounced oversupply, continuously shrinking profit margins, and declining corporate investment enthusiasm—leading some new facilities to delay or even cancel their commissioning. Against a backdrop of abundant supply, severe product homogenization, and insufficient end-market demand, competition among enterprises is set to intensify further. Chinese companies are actively expanding overseas markets; the sharp increase in export volumes has triggered anti-dumping and countervailing duty investigations against Chinese epoxy resins by the United States, India, and the European Union. Outside China, in addition to anti-dumping restrictions imposed by the U.S., India, and the EU, overseas epoxy resin producers are accelerating business integration to gain competitive advantage against Chinese epoxy products. On February 5, Asahi Kasei’s Board of Directors formally approved a resolution to absorb and merge its wholly owned subsidiary, Asahi Kasei Epoxy Corporation, into the parent company via an absorption merger. The merger will take effect officially on April 1, 2026. Asahi Kasei Epoxy Corporation was established in 1966, initially focusing on epoxy resin production. As its business expanded, it gradually entered the production of epoxy resin curing agents and became a wholly owned subsidiary of Asahi Kasei in 2000, adopting its current name. This merger is an absorption-type merger: Asahi Kasei, as the surviving entity, will continue operations, while Asahi Kasei Epoxy Corporation will be dissolved upon completion of the merger. The primary objectives are to streamline business operations, optimize resource allocation, and further enhance Asahi Kasei’s competitiveness in the global epoxy resin market. In 2024, Asahi Kasei decided to shut down its MMA plant. On November 15, Asahi Kasei announced that its shareholders’ meeting resolved to terminate the operations of its subsidiary PTT Asahi Chemical Co., Ltd. (PTTAC) and dismantle its factory facilities.

Two more global giants in advanced chemical materials have shut down factories!

Recently, Asahi Kasei and Trinseo announced the shutdown of their respective plants. (1) Asahi Kasei: Closure of its Thai factory On November 15, Asahi Kasei announced that its shareholders’ meeting resolved to terminate the operations of its subsidiary PTT Asahi Chemical Co., Ltd. (PTTAC) and dismantle its factory facilities. Production is scheduled to end on October 31, 2024; sales will conclude on December 31, 2024; and facility dismantling is planned for 2025–2028. According to available information, PTTAC was established in 2006 as a 50:50 joint venture between Asahi Kasei and PTT Global Chemical Public Company Limited (PTTGC) in Thailand. It primarily produced and sold acrylonitrile (AN) manufactured via the propane process, methyl methacrylate (MMA) produced using the ACH process, and ammonium sulfate—mainly supplying customers across Southeast Asia. The main reasons for closure include: since around 2022, persistent economic sluggishness and rising raw material costs have eroded the company’s competitiveness. Moreover, surging Chinese production capacity has worsened supply-demand balance, resulting in unfavorable profitability. Consequently, both parent companies concluded that PTTAC could no longer sustain healthy operations. Acrylonitrile is primarily used to synthesize polyacrylonitrile fiber (acrylic), ABS resin, nitrile rubber, adiponitrile, and acrylamide. As of the first half of 2024, global acrylonitrile capacity stood at 8.791 million tons/year, with mainland China accounting for 4.399 million tons/year—approximately half of global capacity—and overall supply exceeding demand. Representative producers include Sinopec Srb, Shanghai SECCO, Zhejiang Petrochemical, Anqing Petrochemical, Jilin Petrochemical, Lihua Yi, Liaoning Kingfa, Keru’er, and China Sea Petroleum. Methyl methacrylate (MMA) is mainly used to produce organic glass (PMMA), methyl methacrylate-styrene-butadiene copolymer (MBS), and PVC processing aids (ACR). Third-party data indicate that China’s MMA industry has expanded dramatically in recent years: capacity reached 1.992 million tons in 2023. Key players include Chongqing Yixiang Chemical, Sinopec Srb, Jilin Petrochemical, Qixiang Tengda, Zhejiang Petrochemical, Jiangsu Jiankun Chemical, and Wanhua Chemical. Coincidentally, on September 11 this year, another industry giant, Sumitomo Chemical, announced on its official website that, by the end of September 2024, it would shut down two of the three MMA and PMMA production lines at its wholly owned Singaporean subsidiary—reducing that facility’s MMA monomer capacity by approximately 80% and PMMA capacity by about 70%.

Thailand’s PTTGC, SCGC Expect to Finalize JV Details by Oct 2026

Oct 1, 2026

PTT Global Chemical and SCG Chemicals plan to merge their olefins and polyolefins operations into a joint venture, targeting finalization of key terms by October 2026 subject to regulatory approval.

icis

2026-08-24

S&P Global Upgrades PTTGC Outlook on Earnings Pickup, Lower Feedstock Costs

2026-10-01

Thailand’s PTTGC, SCGC Expect to Finalize JV Details by Oct 2026

Thailand’s PTTGC, SCGC Expect to Finalize JV Details by Oct 2026

FAQ