Shuffling continues! Eight major players announce shutdowns and divestments

Reasons for停产: In recent years, to respond to the dramatic shifts in market conditions, these companies have adopted measures to streamline operations and attract new business. Nevertheless, despite these efforts, ensuring profitability at these plants has become extremely difficult. Mitsubishi Chemical’s Onahama Plant: Key products include ammonia and its derivatives (e.g., ammonium hydroxide), methanol, formalin, lignin-based adhesives, AdBlue™, fatty acid amides, ultra-high-purity process chemicals (e.g., hydrochloric acid, nitric acid, ammonia solution), and TAIC derivatives, among others. Shinrei Corporation’s Iwaki Plant: Key products include fine chemicals, TAIC™, and distilled products, among others. Moving forward, Mitsubishi Chemical will focus on five strategic growth areas—mobility, semiconductors, food, healthcare, and green chemicals—aiming to rapidly expand profits by divesting non-core businesses and actively investing in high-growth segments. The recent sequential announcements of plant closures reflect this future-oriented strategic realignment. Further reading: Mitsubishi Chemical’s Strategic Choices (I): Why India for MMA?; Mitsubishi Chemical’s Strategic Choices (II): Barrier Films and Resins Shell: Restructuring its Global Industrial Chemicals Business On April 1, Shell announced completion of 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. The Pulau Bukom assets comprise a 237,000-barrel-per-day refinery and a 1.1-million-ton-per-year ethylene cracker. The Jurong Island facility produces petrochemicals including ethylene oxide, ethoxylates, styrene monomer, and propylene oxide. Shell stated that this divestment marks an important step in continuously enhancing its chemicals business, while continuing to support Singapore’s energy needs through a range of energy products—including LNG supply and trading. Earlier, on March 25, Shell announced plans to restructure its global industrial chemicals business, exploring strategic partnerships for its U.S. chemicals portfolio and considering partial or full closure of its European chemical operations. Covestro and LyondellBasell: Permanent Shutdown! On March 18, LyondellBasell (LYB) and Covestro jointly announced the permanent shutdown of the Propylene Oxide/Styrene Monomer (PO/SM) production unit (PO11) at their Maasvlakte plant in the Netherlands. This decision followed careful evaluation, driven primarily by global overcapacity, surging Asian imports, and high European production costs—all of which have placed sustained pressure on the Maasvlakte facility. Given that this challenging situation is expected to persist, long-term profitable operation is no longer feasible. For details, see: Covestro and LyondellBasell: Permanent Shutdown! Huntsman Closes Two Polyurethane Plants In February, Huntsman announced plans to lay off staff and shut down downstream polyurethane (PU) plants amid persistent market pressures. According to reports from its full-year 2024 analyst conference call, Huntsman has already closed or sold PU system plants located in Malaysia, Thailand, Indonesia, and Italy. At that same meeting, the company announced the upcoming closure of its plants in Deggendorf, Germany, and Kings Lynn, United Kingdom.

MDI’s one-year low triggers unavoidable adjustments—Huntsman’s response

Huntsman reported Q4 2024 revenue of $1.452 billion and a net loss of $141 million. For the full year 2024, revenue totaled $6.036 billion—a 1.3% decline year-on-year—with a net loss of $189 million (compared to net income of $101 million in the prior year). Adjusted net loss stood at $13 million, while adjusted EBITDA was $414 million—a 12.3% decrease year-on-year. Only Q2 posted net income; all other quarters recorded losses, resulting in an overall net loss for the year. By business segment, Polyurethanes—the Group’s core business unit—accounted for 58% of total 2024 revenue. Its full-year EBITDA margin contracted by 320 basis points year-on-year to 11.2%. Revenue in the Performance Materials segment declined 9.4%, while EBITDA in the Advanced Materials segment fell by 28%. Related reading: Challenges Behind Huntsman’s Financial Results: Structural Cost Reduction Amid Market Restructuring High energy costs, excessive regulatory burdens, and overcapacity have severely impacted the industry’s condition in Europe. Entering 2025, construction and automotive markets—which together account for roughly two-thirds of Huntsman’s business portfolio—remain sluggish. According to Peter R. Huntsman, Chairman, President, and CEO, Huntsman’s core markets remain at a trough. Consequently, the company will continue aggressively reducing costs—including announcing layoffs within its Polyurethanes division—and begin evaluating strategic options for its European maleic anhydride business, as well as closing downstream polyurethane plants. As disclosed during its full-year 2024 analyst conference call, Huntsman has already closed or sold PU system plants in Malaysia, Thailand, Indonesia, and Italy, and announced the impending closure of its facilities in Deggendorf, Germany, and Kings Lynn, United Kingdom. Polyurethanes constitute Huntsman’s core business. Globally, Huntsman’s capacities for MDI, polyols, and TPU stand at 1.35 million tons, 320,000 tons, and 50,000 tons, respectively, with production sites located in China, the United States, Canada, and the Netherlands.

Huntsman Divests Gomet Business in Italy to Boost Liquidity

Jun 8, 2026

Huntsman sold its Italian Gomet rubber and thermoplastic unit to Trelleborg for €42.5 million to reduce borrowings. The company expects sequential improvement in its Polyurethanes division by Q2 2026.

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Huntsman Divests Gomet Business in Italy to Boost Liquidity

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