News

As the year draws to a close, executives in the chemicals and materials industry face a critical question: how can they review the past year’s performance while providing a sound basis for strategic decisions over the next five to ten years? With heightened raw material price volatility, supply chain restructuring, rapidly evolving downstream demand, and the continuous emergence of new materials and technologies, relying solely on fragmented market information can cause compa

ExxonMobil — Permanent Shutdown of Jurong Steam Cracker Date:  December 4, 2025 Event:  ExxonMobil confirmed it will permanently shut down one of its older ethylene steam crackers on Jurong Island, Singapore , beginning in March 2026 and completing the full closure by June 2026.The decision reflects global ethylene/polyolefin overcapacity, sustained margin pressure, and structurally lower utilization of naphtha-based crackers in Asia. Impact Pathway: Accelerates restructuring

I. Macro Landscape: Weak Recovery, Strong Divergence, and Supply Chain Reconfiguration Global economic conditions in 2025 were characterized by slow recovery, high cost pressures, and accelerated regionalization of supply chains , shaping the chemicals and materials industry in several structural ways: 1. Diverging Demand Patterns Consumer downstream sectors remained soft , weighing on plastics and basic chemicals. Technology-driven sectors grew counter-cyclically , including

Global Wacker Chemie — Global Workforce Reduction Amid European Chemical Downturn Date:  November 27, 2025 Event:  Wacker Chemie announced a workforce reduction of over 1,500 employees by 2027, citing high energy costs, weak demand across Europe, and structural competitiveness challenges in the region. Impact Pathway: Strengthens Wacker’s cost base in a depressed European chemical environment; signals deeper structural contraction in Germany’s chemical industry; may reduce ou

Source: BASF News Release, 19 November 2025 1. Event Overview (Verified) BASF announced an expansion of its APG (alkyl polyglucoside) production capacity at Bangpakong, Thailand, aiming to meet the rapidly growing demand for renewable surfactants in Asia and globally. APGs are plant-derived surfactants (glucose + fatty alcohol) widely used in: Personal care (shampoos, cleansers, cosmetics) Household cleaning Industrial surfactants This expansion is a key step in BASF’s global

Asia-Pacific Sumitomo Chemical — Acquisition of Taiwan AUECC (Semiconductor Chemicals) Date:  November 20, 2025 Event: Sumitomo Chemical signed an agreement to acquire 100% equity of Taiwan-based AUECC, expanding its semiconductor wet-process chemical portfolio and establishing its first manufacturing presence in Taiwan. Impact Pathway: Strengthens Sumitomo’s position in advanced semiconductor materials; enhances local supply capability to foundries in Taiwan; increases compe

In 2025, geopolitical risk has secured the spot as the top threat to global supply chains for the third consecutive year (Allianz Risk Barometer 2025: 58 % of respondents, far ahead of cyber attacks and natural disasters). Below are the shocks that have already happened or are highly probable in 2025, together with the actual losses inflicted on companies (all figures from latest 2025 reports and corporate earnings releases): Risk Event 2025 Impact (Already Occurred or Expect

Executive Summary In 2025, the chemical industry faces a growing supply-chain risk that has received relatively little public attention but could reshape the competitive map over the next 5–10 years. Unlike headline shocks (e.g., energy crises), this risk is more insidious — concentrated in long-tail, hard-to-replace raw materials whose production is vulnerable to geopolitical conflict, regulatory pressure, and logistics disruption. Key materials such as battery-grade cobalt

1. Current Market Landscape and Structural Drivers Europe Under Pressure Industry sentiment in Germany and broader Europe continues to deteriorate, with weak orders, declining capacity utilization, and elevated operating costs.High and volatile energy  and carbon  costs remain the main structural burden for large chemical producers. High-Cost Structural Challenge European producers face sustained disadvantages in natural gas, power, carbon pricing, and labor—eroding competiti

Asia-Pacific Lotte Chemical — Sale of Pakistan PTA Business Date:  November 12, 2025 Event:  Lotte Chemical completed the sale of its purified terephthalic acid (PTA) business in Pakistan to UAE-based PTA Global Holding. Impact Pathway:  Reduces Lotte’s exposure in South Asia while transferring operational and market responsibilities to the buyer. Supports company’s portfolio rationalization and focus on core markets. Financials:  Transaction provides capital inflow for Lotte

The Southeast Asian petrochemical landscape is undergoing a transformational shift . Recent developments, most notably Lotte Chemical’s $4 billion integrated petrochemical complex in Indonesia’s Cilegon , signal a structural realignment that will reshape regional supply chains, influence pricing dynamics, and redefine investment priorities across the Asia-Pacific. 1. Project Overview: Lotte Chemical Cilegon Complex Investment:  USD 3.9–4.0 billion Core Facilities:  Naphtha cr

Asia-Pacific BASF — Zhanjiang Verbund: first core products start production Date: November 5, 2025. Event: BASF commenced production of the first products from the core of its Zhanjiang Verbund site in southern China — a central milestone in the company’s largest single investment project. Impact Pathway: Newly online base-chemical capacity in China increases local availability of petrochemical intermediates (steam-cracker derivatives) and supports BASF’s local-for-local st

1. A Fractured World: Rising Inequality and Polarization Over the past decade, the global economy has grown more interconnected than ever—but also more divided.We see widening wealth gaps , intensifying geopolitical rivalries , and deepening social fractures . The wealthiest 1% now own more than the bottom 50% of humanity combined. Trade tensions, tariffs, and fragmented supply chains are eroding global trust. Migration, cultural divides, and nationalist politics fuel interna

I. Overall Assessment: From Confrontation to a Temporary Pause – A Structural Breathing Space The new trade agreement does not  change the fundamental competitive nature between China and the U.S.,but it does provide the chemical and materials industry with short-term relief . Key takeaways: Partial tariff cuts or suspension  → reduced raw material and downstream cost pressure. Looser export controls and rare-earth policies  → temporary recovery in key intermediate supply. Im

Date:  October 30, 2025 Event BASF SE announced the construction of a new high-purity ammonium hydroxide (NH₄OH EG) facility at its Ludwigshafen site in Germany. The investment targets the rapidly growing semiconductor and electronics materials market, reinforcing BASF’s footprint in advanced chemical applications. Strategic Context This move signifies a pivotal reorientation of the global chemical industry—from bulk commodity chemicals toward high-purity, technology-driven m

Asian Benzene Contract Talks Begin Amid Weak Demand Outlook Date:  October 27, 2025 Event:  Asian benzene producers and buyers have begun 2026 term contract discussions. Market sentiment is notably weaker than last year, driven by sluggish downstream demand, oversupply, and ongoing structural adjustments. Impact Pathway:  Lower contract benchmarks are expected to ripple through the styrene and polyester value chains, signaling weaker cost support across multiple petrochemical

Ineos recently noted that increasing low-cost exports of 1,4-Butanediol (BDO)  and related intermediates from China are weakening the competitiveness of European chemical production. This marks a shift in the global chemical landscape from “product-level price competition”  to “system-level industrial capability competition.” BDO is a strategically important intermediate across pharmaceuticals, polyurethane materials, biodegradable plastics, and battery solvent applications .

1. Ineos Warns of Pressure from Low-Cost Chinese Chemical Imports Date:  October 23, 2025 Event:  Ineos publicly warned that increasing volumes of low-cost chemical intermediates from China are putting pressure on European production capacity, citing BDO (1,4-butanediol) as an example linked to pharmaceuticals and vitamins. Impact Pathway:  Potential erosion of European supply security for critical pharma intermediates; accelerates competitive reshuffling of global mid-stream

In the coming decade, the moral direction of business will define not only who wins in the market—but who deserves to. I. Beyond Profit: The New Coordinates of Global Business The global economy is undergoing a deep moral recalibration. From the rise of ESG investing to the redesign of sustainable supply chains, and from regulatory reforms to Gen Z’s demand for ethical brands, one thing is clear: The marketplace is no longer just a place of exchange—it’s a stage of values. An

— Where Are We Really Heading? In conversations with investors, CEOs, and strategists across the global chemical and materials industry, one phrase keeps coming up: “We know transformation is inevitable — but where exactly should we go?” 2025 feels like a paradox.The industry is full of opportunities — yet direction has never been more unclear.Technological disruption, geopolitical fragmentation, sustainability pressures, and capital realignment are all colliding at once.Ever