Amid a wave of price hikes, SABIC, Evonik, Dow, and others are rapidly shutting down plants and divesting assets—why are chemical giants collectively retreating?

This sale covers 100% of SABIC Europe’s equity, including four production sites located in Teesside (UK), Herlen (the Netherlands), Gelsenkirchen (Germany), and Genk (Belgium). The facilities produce ethylene, propylene, low-density polyethylene (LDPE), high-density polyethylene (HDPE), polypropylene (PP), and modified polymers—representing a core initiative by SABIC to optimize its global business footprint. Notably, the transaction abandons the traditional cash settlement model: the entire purchase price is paid via two perpetual seller notes, with final repayment amounts deeply tied to the future cash flows and synergistic benefits generated by the divested assets and Aequita’s European olefins and polyolefins assets. This innovative settlement structure means that although SABIC fully exits day-to-day operations of its European petrochemical business, it retains long-term exposure to the business’s growth upside—and thus maintains a degree of economic exposure to the sector. Evonik: Plans to close two German production sites On September 11, Evonik Industries announced plans to shut down its Hamburg and Bitterfeld production sites in Germany next year, affecting 50 and 40 employees respectively. The Hamburg site primarily supplies products for the cosmetics and personal care industry, while the Bitterfeld site produces chlorosilanes. Following the closures, the corresponding businesses will not be discontinued but instead fully integrated into Evonik’s larger-scale core production sites in Germany. Evonik explained that overly fragmented production, administrative, and laboratory layouts across certain business areas have led to unnecessary high costs and weakened competitiveness. Closing these niche, low-efficiency sites and consolidating operations aims fundamentally to streamline the operational system, reduce redundant costs, and comprehensively enhance production efficiency and the pace of technological innovation. Specifically, the personal care solutions business and core technology patents from the Hamburg site will be fully consolidated into Evonik’s Essen-Goldschmidtstrasse core site—further reinforcing that facility’s central role in the global personal care chemicals sector. According to publicly disclosed plans, Evonik has clearly outlined a medium- to long-term contraction strategy: it intends to cut 3,200 jobs cumulatively between 2027 and 2029, and completely exit its low-efficiency polyester business by 2027—continuously shedding underperforming segments. Dow: Considering exit from the $20-billion Sadara joint venture On September 9, 2026, industry reports indicated that U.S. chemical giant Dow Chemical is advancing a major asset adjustment—planning to exit its joint venture, Sadara Chemical, co-established with Saudi Aramco. With a total investment of $20 billion, Sadara is a flagship petrochemical project in the Middle East; Dow holds a 35% stake. This exit intention represents a key move by Dow to respond to the prolonged global chemical industry downturn and accelerate optimization of its global asset portfolio. Industry analysts suggest Saudi Aramco is highly likely to seize this opportunity to acquire Dow’s entire stake, thereby further consolidating its controlling authority over the project—though participation by other strategic or financial investors in the equity bidding process remains possible. This step marks Dow’s formal retreat from overseas heavy-asset investments, focusing specifically on avoiding risks associated with traditional petrochemical businesses characterized by low returns and high capital intensity. Shell: Discount fire-sale of U.S. chemical assets Among the industry giants, Shell’s strategic retreat is the most thorough—and aggressive. Shell is currently pushing forward full divestiture of its U.S.-based chemical assets. The asset package comprises four major production bases located in Louisiana, Texas, and Pennsylvania, producing commodity petrochemicals—including general-purpose plastics, detergent raw materials, and pharmaceutical intermediates—covering core categories of basic chemicals.

U.S. & Hong Kong Stocks | Major indices extend losses; Brent crude futures settle above $101; SK Hynix (SKHY) rises 7%

Markets extended losses following the U.S. Treasury’s bond buyback announcement, as investors judged the $6 billion cap insufficient. The U.S. Department of the Treasury stated it would purchase between $4 billion and $6 billion of long-term government debt in the first operation under its expanded buyback program—a move signaling Secretary Bessent’s determination to curb recent increases in borrowing costs. However, U.S. Treasuries continued their earlier decline after the announcement, indicating the scale fell short of some investors’ expectations. The ultimate effectiveness of the expanded buyback program remains to be seen. After last month’s initial announcement, yields dropped temporarily—but then rebounded. The benchmark 10-year yield last week hit its highest level since 2023. Guha, an economist formerly with the New York Fed, remarked: “The perennial challenge is whether the impact of such interventions can persist without more fundamental changes.” Moreover, the maximum size of a buyback operation does not guarantee the Treasury will purchase that full amount. That said, for buybacks targeting long-term nominal debt, the department has historically purchased the full authorized amount—in 52 such operations since the program’s relaunch in 2024, it fell short only twice. Stock-specific news Apple (AAPL) launches its first foldable iPhone Duo, starting at $1,999. Apple unveiled its first foldable smartphone, the iPhone Duo, featuring a 7.6-inch internal display when unfolded—the largest screen ever on an iPhone—and a 5.4-inch external display when folded, offering 90% of the screen area of the iPhone 18 Pro. Both screens support ProMotion, Always-On Display, and peak outdoor brightness up to 3,000 nits. The iPhone Duo features a Grade 5 titanium chassis and a precision hinge composed of over 100 components, carries IP68 dust and water resistance, and integrates Touch ID into the side button. It is powered by the 2-nanometer A20 Pro chip and a custom vapor chamber, delivering up to 35% higher sustained performance than the iPhone 17 Pro. It supports split-screen multitasking, features a 48-megapixel main camera and a 48-megapixel ultra-wide camera, and enables new functionalities such as using the rear cameras for selfies and real-time preview on the external display. Its dual-battery architecture delivers up to 44 hours of video playback when using the external display. The iPhone Duo comes in Starlight and Night Sky finishes, with storage options of 256 GB, 512 GB, 1 TB, and 2 TB; U.S. pricing starts at $1,999. Pre-orders begin October 16, with official launch on October 23; it will debut in China and 70 other countries and regions.

Dow Considers Selling Stake in Sadara Chemical JV

Sep 15, 2026

Dow Inc. plans to sell its 35% stake in the Sadara Chemical joint venture with Saudi Aramco amid financial losses. This move targets high-value materials, while Aramco may acquire full control to integrate its oil-to-chemicals value chain.

ccin

2025-08-12

Losses widen at Aramco/Dow JV Sadara on lower sales, prices

2026-09-10

Dow May Sell Sadara Stake: Bloomberg

2026-09-15

Dow Considers Selling Stake in Sadara Chemical JV

Dow Considers Selling Stake in Sadara Chemical JV

FAQ