Another global chemical industry giant sells businesses, shuts plants, and cuts 1,800 jobs!

Specifically, the divested PPG architectural coatings business in the U.S. and Canada includes nearly ten brand portfolios—such as GLIDDEN® and OLYMPIC®—covering production and sales of interior and exterior wall paints, stains, caulks, repair products, adhesives, and sealants. The facilities involved in the sale comprise seven manufacturing plants in the U.S. and two in Canada; 12 distribution centers; and over 15,000 distribution points—including 750 company-owned stores and 6,600 independent distributors—a scale that is notably large. Reportedly, this U.S. and Canadian architectural coatings business accounted for approximately $2 billion of PPG’s total net sales in 2023, with an EBITDA margin in the low single digits. Divesting this business is expected to effectively reduce costs and enhance both the coatings segment’s and the company’s overall profitability. This streamlining primarily targets underperforming businesses. In addition to the regional architectural coatings business being sold, PPG also plans to divest its silica business. According to PPG, its coatings businesses in Latin America, Europe, and the Asia-Pacific region rank among the top market share holders in multiple regions and will remain core components of the company’s portfolio. PPG was founded in 1883 and is headquartered in Pittsburgh, Pennsylvania, USA—a longstanding Fortune 500 supplier of coatings and specialty materials. Its primary products include paints, coatings, and specialty materials, serving sectors such as construction, consumer goods, industrial applications, and transportation. In the Chinese market, PPG began investing as early as the late 1980s. Its China headquarters is located in Shanghai, where it currently operates fourteen manufacturing plants and four R&D centers. Its business scope covers aerospace materials, architectural coatings, automotive coatings, automotive refinishes, industrial coatings, packaging coatings, industrial protective and marine coatings, original equipment manufacturer (OEM) automotive coatings, specialty coatings, and materials. Financially, on October 16, PPG released its third-quarter 2024 financial results: net sales totaled $4.575 billion, down 1% year-on-year; net income reached $468 million, up 10% year-on-year; and adjusted net income stood at $500 million, up 1% year-on-year. Thanks to portfolio optimization and cost reductions, PPG’s profit margin for Q3 increased by 60 basis points year-on-year—the eighth consecutive quarter of growth. Regarding coatings specifically, PPG’s high-performance coatings business achieved Q3 net sales of $2.93 billion, up 1% year-on-year; volume rose 2% year-on-year; and net income grew 13% year-on-year.

Massive losses, layoffs, asset sales! How dire is the global chemical industry in 2025?

The root cause of such massive losses is not operational deterioration, but rather large-scale asset impairments. SABIC disclosed in its financial report that it recorded substantial write-downs on certain assets, while average selling prices for key products declined—both contributing significantly to the sharp profit contraction. Nevertheless, the company’s free cash flow reached SAR 7.2 billion, up 17% year-on-year, providing ample financial resources to support its transformation. Covestro’s 2025 sales amounted to €12.942 billion, down 8.7% year-on-year; EBITDA stood at €740 million, down 30.9% year-on-year; and net loss widened to €644 million—compared to a €266 million loss in 2024. As the world’s leading polyurethane producer, Covestro is undergoing a challenging transition. CEO Markus Steilemann stated that the company is advancing its ‘Winning Strategy’, implementing cost-cutting measures and business restructuring to navigate the industry’s downturn. Additionally, LyondellBasell reported 2025 sales of $30.153 billion, down 10% year-on-year; and a net loss of $738 million. In its financial report, the company candidly acknowledged that 2025 marked one of the longest downturns ever recorded in the chemical industry—characterized by weak global demand for polyethylene and polypropylene, especially in China, where inventory levels remained persistently high—leading to steep declines in product prices and margins. Notably, LyondellBasell exceeded its 2025 cash improvement target, achieving $800 million in cash improvement (against an original target of $600 million), and raised its cumulative 2026 target to $1.3 billion. Even amid extreme adversity, the company generated positive operating cash flow of $2.3 billion, with a cash conversion rate as high as 95%. Countercyclical Breakthrough: Who Is Growing Amid the Winter? Against the backdrop of widespread losses among global chemical giants, BASF delivered a relatively strong performance. Its 2025 sales totaled €59.657 billion, down 3% year-on-year—but attributable net profit to shareholders reached €1.313 billion, surging 118% year-on-year and more than doubling from €602 million in 2024. BASF’s resilience stems from two pillars: first, its global leadership position in MDI confers pricing power; second, sustained investments in emerging markets like China. In its financial report, the company emphasized that structural adjustments and cost-reduction initiatives at its Ludwigshafen site are progressing as planned, with cumulative cost savings expected to reach €2.1 billion by the end of 2026. PPG’s 2025 net sales totaled $15.9 billion—essentially flat year-on-year—a rare achievement amid the industry’s winter. Full-year operating cash flow reached $1.9 billion, up more than $500 million year-on-year. PPG’s steady performance owes much to strategic portfolio adjustments. In 2024, PPG sold its architectural coatings businesses in the U.S. and Canada, sharpening its focus on high-value-added segments such as aerospace coatings, protective & marine coatings, and packaging coatings. These technologically advanced products posted volume growth in 2025, helping sustain overall profitability. LG Chem’s 2025 sales totaled ₩45.93 trillion (approx. $32.1 billion), down 5.7% year-on-year; yet operating profit surged 35% year-on-year to ₩1.18 trillion (approx. $820 million). The core driver behind this counter-cyclical profit growth lies in its battery business. LG Energy Solution—the global leader in lithium-ion automotive batteries—continued benefiting in 2025 from the worldwide expansion of the electric vehicle market.

PPG to announce third quarter 2026 results Oct. 27

Sep 28, 2026

PPG Industries Inc. will release its third-quarter 2026 financial results on October 27 after U.S. markets close. Executives will host a teleconference call on October 28 at 8 a.m. ET.

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PPG to Announce Third Quarter 2026 Results on Oct. 27

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