44 Chemical Giants Slim Down in 2025: Plant Closures, Asset Sales, and Layoffs

In May, AkzoNobel announced plans to close its production facilities in Wapenveld (the Netherlands) and Machelen (Belgium), consolidating manufacturing into other regional plants. Earlier, it had already announced the closure of three production sites in Europe and Africa—Groote-Ammers (the Netherlands), Cork (Ireland), and Lusaka (Zambia). In November, AkzoNobel and Axalta Coating Systems Ltd. reached a definitive agreement to merge, creating a global coatings company (AkzoNobel to hold 55%, Axalta 45%). In December, AkzoNobel completed the sale of its Indian subsidiary, AkzoNobel India Limited (ANIL), to India’s JSW Group. It also stated that it is selling its Pakistan business and expects further divestments. Notably, in September last year, AkzoNobel announced plans to cut approximately 2,000 jobs globally by the end of 2025. 38. SGL Carbon In May, SGL Carbon decided to close its Lavradio (Portugal) production site, which currently employs around 250 people and manufactures acrylic fibers and carbon fiber precursor. 39. Kraton Corporation On May 7, Kraton Corporation announced a strategic realignment of its business to sharpen focus on core capabilities and accelerate long-term growth. As part of this initiative, the company will exit its Dover, Ohio (USA) manufacturing facility and gradually discontinue its dimer and polyamide production lines. 40. H.B. Fuller In January, U.S.-based adhesive producer H.B. Fuller announced plans to close nearly one-third of its global factories, reducing its total number of plants from 82 to 55, and significantly cutting its North American warehouse count—from 55 to just 10. 41. Shell In March, Shell announced a global restructuring of its chemical business, exploring strategic partnerships for its U.S. chemical portfolio and considering partial or full shutdowns of its European chemical operations. In April, Shell completed the sale of its Singapore Energy & Chemicals Park—including refining and chemical assets on Pulau Bukom and Jurong Island—to a joint venture formed by Glencore and Indonesian chemical manufacturer PT Chandra Asri Pacific. 42. TotalEnergies In April, TotalEnergies decided to permanently shut down an aging steam cracker at its Antwerp (Belgium) refinery and petrochemical complex by the end of 2027. The unit produces 550,000 tons/year of ethylene and 230,000 tons/year of propylene. The 253 affected employees may opt for retirement or internal reassignment within the Antwerp site. 43. ExxonMobil In May, ExxonMobil entered exclusive negotiations with the French subsidiary of Canadian energy group Atlantic LNG regarding the divestiture of its majority-owned French subsidiary, Esso France. In September, according to the Financial Times, ExxonMobil is seeking to sell its European chemical plants in the UK and Belgium, with proceeds potentially reaching up to USD 1 billion. ExxonMobil operates an ethylene plant in Fife, Scotland, and multiple production sites in Belgium. Reports indicate the company has also discussed outright closures of these facilities.

ExxonMobil’s Closure of Its Singapore Cracking Unit: What Is Happening in This Industry?

The global petrochemical industry is undergoing a once-in-a-century transformation! International giants—including ExxonMobil, BASF, and Shell—are shutting down plants and selling assets, while China is ramping up capacity at breakneck speed. What strategic calculus lies behind this stark divergence? Ah! ExxonMobil suddenly announces the closure of its Singapore plant. In December 2025, a piece of news sent shockwaves across the global petrochemical sector: U.S. energy giant ExxonMobil officially announced it would permanently shut down its steam cracker on Jurong Island, Singapore, effective June 2026. With an annual capacity of 950,000 tons, this unit constitutes a major portion of ExxonMobil’s total 1.9-million-ton-per-year ethylene capacity at its Singapore chemical complex. This is no isolated incident. Just two months earlier, ExxonMobil agreed to sell its Esso-branded retail service station network in Singapore to Indonesia’s Chandra Asri Group. Even earlier, in 2024 the company closed its 425,000-ton-per-year cracker in Gravenchon, France; and in early 2026, it will shutter its 830,000-ton-per-year cracker in Mossmorran, UK—the last remaining cracker ExxonMobil operates in Europe. This string of actions signals that the world’s largest oil company is executing a sweeping global asset realignment—with Singapore and Europe clearly marked as sacrifice zones. Staggering data: A global petrochemical capacity shake-up China has become the world’s largest ethylene producer. Latest figures show that China’s ethylene capacity reached 62 million tons per year in 2025—accounting for 25% of global capacity—and surpassed the United States to become the world’s top ethylene producer. What does this number signify? Consider the following comparisons: 2021: China’s ethylene capacity stood at 43.68 million tons/year—U.S. led. 2022: China overtook the U.S. for the first time, with 49.33 million tons/year. 2025: China’s capacity hit 62 million tons/year, versus ~50 million tons/year in the U.S. 2030 projection: China expected to reach 83.87 million tons/year—representing 58% of all new global capacity. Even more astonishing is the growth rate: China’s ethylene capacity surged at an average annual rate of 11.2% between 2021 and 2025—a pace rarely seen in global industrial history. A fundamental reversal in global capacity distribution The global ethylene capacity landscape has undergone a structural shift by 2025: Europe is experiencing an unprecedented wave of capacity exits: Since April 2024, multinational corporations—including ExxonMobil, Shell, SABIC, and Dow—have permanently shut down or announced plans to close seven steam crackers across Europe, representing roughly 4.5 million tons/year of ethylene capacity. Strategic shifts among industry giants: Who is retreating—and who is advancing? ExxonMobil: Retreating from Europe, betting on Asia-Pacific and North America ExxonMobil’s strategic recalibration is unmistakable: — Exiting Europe: Shutting down crackers in France and the UK, and reducing its overall asset footprint in the region. — Doubling down on Asia-Pacific: Investing USD 10 billion in Huizhou, China, to build a 1.6-million-ton-per-year ethylene project—commissioned in July 2025.

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Shell and Exxon Put $8 Billion Chemical Unit on Block, FT Says

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