Recent developments
Market conditions mixed
Weak building activity in Germany triggered the Paderborn cement plant closure, even as Heidelberg Materials reported record financial results for 2025. Peers also showed resilience, with Holcim posting double‑digit EBIT growth and an 18.3% margin. Producers continued network optimization and lower‑carbon product focus, including continued development of Ternocem at another site.
Footprint expansions
Supply proximity advanced via BASF’s dispersion production in Durban and Brenntag and Westlake Epoxy expanded their partnership in India. Upstream materials scale grew with Heidelberg Materials’ acquisition of Maas Group’s construction materials business in Australia. Anticipated infrastructure activity in Africa was underscored by the Dangote and XCMG strategic cooperation.
Pricing, costs, capex
WACKER increased silicone prices by up to 25%, citing platinum cost escalation, affecting sealants and release coatings. Balance‑sheet discipline persisted as BASF advanced its “Winning Ways” milestones, raising savings and reducing 2026 capex. These moves signal ongoing adjustments in pricing and investment across construction chemicals value chains.
Low‑carbon materials
Sustainable options expanded with BASF’s biomass balance Autofroth polyurethane systems for appliance, construction, and marine uses, and digital design support via Covestro’s CQ‑Configurator for sustainable polyurethane foam design. Cement decarbonization advanced through evoZero near‑zero cement deliveries and the Padeswood CCS project, while Ternocem development shifts to another site.
Coatings technologies
Process efficiency progressed as PPG, IPG Photonics, and Whirlpool advanced laser‑based powder curing, targeting lower energy use and faster finishing. Portfolio realignment continued with Mitsubishi Chemical’s transfer of its synthetic resin emulsion business to Konishi, affecting adhesives and paint feedstocks used in construction applications.