INEOS Styrolution shuts down plants; Evonik’s polyester business vanishes! A wave of shutdowns intensifies in June—what is the global chemical industry brewing?

In June 2026, the global chemical industry witnessed an unprecedented wave of plant shutdowns. Following Dow Chemical and Celanese—which had already announced layoffs and production facility closures—major international chemical conglomerates including INEOS Styrolution, LyondellBasell, Evonik, BASF, and Huntsman rolled out a series of strategic adjustments within just a few weeks: shutting down facilities, laying off staff, and divesting businesses. The global chemical production capacity landscape is undergoing profound restructuring. Retreat by Chemical Giants: A ‘Triple Play’ of Shutdowns, Layoffs, and Divestments 1. INEOS Styrolution: 400,000 tonnes of capacity eliminated; reshaping North America’s PS landscape INEOS Styrolution—the world’s leading producer of high-performance styrenic materials—announced on June 22, 2026, that it would permanently shut down its polystyrene (PS) manufacturing plant in Channahon, Illinois, USA, before the end of Q4. This facility, operational since 1960—over 60 years—has an annual capacity of approximately 400,000 tonnes and employs around 100 people. Source: INEOS Styrolution The core reason for the shutdown is persistent margin compression and industry-wide overcapacity. Steve Harrington, CEO of INEOS Styrolution, stated: “Industry overcapacity continues to exert severe pressure, squeezing profit margins further—North American operations are under mounting strain.” As part of its asset optimization strategy, the company will consolidate its three North American PS production sites into two: retaining its Decatur, Alabama plant and Altamira, Mexico plant. In November 2025, the company had already announced the permanent closure of its Wingles, France PS plant—a move intended to enhance overall competitiveness in Europe. 2. Evonik: Global polyester business phased out entirely; 6,000 jobs cut over two years On June 18, German chemical giant Evonik Industries announced two major adjustments: first, it will further advance structural optimization globally, planning to eliminate approximately 3,200 positions between 2027 and the end of 2029—with roughly 2,150 of those in Germany; second, it will shut down its global polyester business by 2027. Source: Evonik This shutdown affects production facilities in Witten and Marl (Germany) and Shanghai (China), impacting a total of 346 employees. The affected business specifically covers saturated polyester resins used in coatings and adhesives—an annual sales volume of about €150 million—but has failed to achieve profitability for years. Qiaojin Li, Head of Evonik’s Customized Solutions Business Unit, commented: “From an economic standpoint, terminating the polyester business and closing related production facilities is now inevitable. Intensifying global competition, structural disadvantages in Europe, and weak market demand render all alternative options incapable of ensuring the long-term viability of this business.” Combined with the earlier ‘Evonik Customized’ efficiency program launched in October 2023—which aims to cut approximately 2,800 positions by end-2026—the two rounds of workforce optimization will collectively reduce headcount by over 6,000. Dr. Klaus Engel, Chairman of the Executive Board and CEO of Evonik, stated bluntly: “Current global political conditions are highly uncertain; economic growth remains persistently sluggish, and international competition is growing increasingly fierce.” 3. LyondellBasell: PP plant closure and divestment of European polyolefin assets On June 11, LyondellBasell confirmed plans to permanently shut down its sole remaining 260,000-tonne-per-year polypropylene (PP) unit at its Brindisi site in Italy by the end of 2026.

An amusing anecdote about INEOS Styrolution’s PC/ASA material Luran S KR2861/1C, supplied from Korea

Continuing from the previous episode: we successfully resolved supply lead time and reduced overall costs for our customer’s INEOS Styrolution material—Luran S KR2861/1C. However, during the first order, a serious issue arose. Production began at the Korean factory, and although raw materials were secured, time was extremely tight—and due to certain constraints, only natural-color (unpigmented) material could be produced initially. Yet the customer required white material! So what now? The customer immediately raised concerns: this did not match the end-user’s specifications—what should be done? No need to panic—the quality remained fully under control. INEOS Styrolution’s original factory stepped in and recommended domestic compounding and coloring partners. At the time, two bases were available—one in Suzhou and one in Shenzhen. For speed and convenience, I opted for the Shenzhen facility: proximity enabled faster communication and quicker dispatch of color sample boards. After several days of confirmation, verification, and acceptance, the natural-color material imported from Korea underwent a remarkable transformation at the Shenzhen production base.

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