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

BASF’s restructuring effort is 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—and expects to receive approximately €5.8 billion in pre-tax cash proceeds. In the same month, its Brazilian decorative coatings business was sold to Sherwin-Williams for $1.15 billion. In January 2026, BASF initiated the divestiture of non-core assets including trinamiX GmbH. BASF explicitly unveiled its new strategic framework—the 'Winning Formula'—centered on its core industrial chemicals business and systematically shedding non-strategic assets. Source: BASF 2. Dow Chemical: Approximately 4,500 employees to be laid off; three plants to be shut down On January 29, 2026, Dow Chemical announced a comprehensive 'Transformation for Efficiency' restructuring plan, involving global layoffs of roughly 4,500 employees—about 13% of its total workforce—and a $2 billion efficiency initiative expected to incur one-time costs of $1.1–1.5 billion. Previously, Dow formally announced the permanent closure of its ethylene cracker in Böhlen, Germany; its chlor-alkali and vinyl assets in Schkopau, Germany; 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 sites in Europe, underpinned by the core logic of 'exiting low-efficiency capacity and concentrating on advantaged regions.' 3. Asahi Kasei & Mitsubishi Chemical: Simultaneous announcements of large-scale exits On May 12, 2026, Japan’s two chemical giants—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 shares of its Kaohsiung Plastics Chemical Industry Co., Ltd. in Taiwan; in February, it announced its withdrawal from coke, needle coke, asphalt coke, and other carbon materials and coal-related businesses—impacting approximately 600 employees. In fiscal year 2025, Mitsubishi Chemical reported sales of approximately ¥3.7 trillion, down 6% year-on-year; mounting financial pressure has become a key driver accelerating its restructuring. 4. Evonik: Significant compression of management layers On May 9, 2026, Evonik announced that, under its three-year 'Evonik Customized' efficiency enhancement program combined with optimization measures across business units, it would eliminate 1,000 positions globally. Adding the 850 full-time positions already cut in 2025, the cumulative number of layoffs by end-2026 will reach 2,000—including 1,500 in Germany. More notably, Evonik will compress its management hierarchy from ten levels down to a maximum of six—a deep structural reorganization, not merely headcount reduction. Source: Coating Industry 5. Arkema, Celanese, and Solvay are also adjusting Arkema announced in February 2026 that its employee count will decline annually by approximately 3% over the next three years; Celanese intends to exit its Elotex redispersible polymer plant in Sembrancher, Switzerland, and its Vamac® plant in Sarnia, Canada; Solvay has shut down part of its production lines at its Bad Wimpfen plant in Germany, laying off about 100 people, and plans to close its Gabusen plant by 2028. Although individually smaller in scale than BASF’s or Dow’s moves, these actions collectively signal a trend: Global chemical enterprises are systematically pursuing 'subtraction.'

Approximately 7,000 employees to be laid off! Chemical industry giant announces large-scale slimming and restructuring.

After months of planning, Evonik’s restructuring plan has finally been officially launched. On December 13, German specialty chemicals giant Evonik announced a large-scale restructuring plan aimed at streamlining its operations. Evonik stated that, in recent years, it has progressively shifted the focus of its portfolio toward growth, resilience, and geopolitical-strategic balance. Following this large-scale restructuring, the company is now taking the next step forward. 'The Group is launching its largest-ever restructuring initiative, and over one-fifth—approximately 7,000—of its employees will be laid off.' 'In recent years, we have significantly improved the quality of our portfolio,' said Dr. Klaus Engel, Chairman of the Executive Board of Evonik Industries AG. 'Under the current structure, focusing solely on specialty chemicals is no longer sufficient to drive our company forward. The definition of specialty chemicals has become entirely blurred, failing to differentiate us meaningfully in the eyes of customers and capital markets. Going forward, we will manage Evonik in a more differentiated manner by leveraging the strengths of two pillars: (1) solution- and innovation-driven businesses, and (2) technology- and efficiency-driven businesses.' Bernd Tö njes, Chairman of Evonik’s Supervisory Board, added: 'We believe that, with this new structure, Evonik will be able to fully unlock its profit-growth potential.' According to Evonik’s official announcement, this reform follows a 'two-phase' strategy. Phase One involves business restructuring. Historically, Evonik’s operations were organized into four divisions: Nutrition & Care, Performance Materials, Smart Materials, and Functional Materials. Under the new plan, these four divisions will be consolidated into two: 'Custom Solutions' and 'Advanced Technologies', effective April 2025—an overhaul targeting the company’s 'main arteries'. According to foreign media reports, this constitutes the largest restructuring initiative in the Group’s history. Upon completion of the reform, the 'Custom Solutions' business segment will concentrate on niche markets, primarily supplying products for cosmetics and pharmaceuticals, as well as coating additives. It employs 7,000 people and will collaborate closely with customers to develop tailored solutions. This characteristic grants the segment strong pricing power, and it will prioritize acquisition opportunities going forward. Meanwhile, the 'Advanced Technologies' segment will operate on an efficiency-driven model, characterized by high-level technical expertise and outstanding internal operational capabilities. With approximately 8,000 employees, this business line will focus on high-performance polymers and hydrogen peroxide, among other areas. Notably, Evonik stated in its announcement that each of the two business segments is expected to generate annual sales of around €6 billion. If the 'Custom Solutions' segment serves as Evonik’s elite vanguard on the market battlefield, then the 'Advanced Technologies' segment functions as its solid fortress for cultivating internal strength. As Evonik put it in its announcement: 'The two segments complement each other and will play a pivotal role in value creation for the Group.' Phase Two of Evonik’s reform targets management itself: streamlining management models within the new business segments and substantially reducing costs over the long term. By the end of 2026, Evonik’s organizational hierarchy will shrink from an average of ten levels to a maximum of six. Approximately 1,000 managers will relinquish their managerial responsibilities and transition to expert roles.

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