Recent developments
Portfolio reshaping continues
Portfolio reshaping accelerated with BASF and Carlyle agreeing on a €7.7bn coatings carve-out, with BASF retaining 40%. Moves included the Johnson Matthey Catalyst Technologies sale, FUCHS acquires ASEOL SUISSE AG, and Trinseo's European strategy, while Mitsui Chemicals advanced a specialty-focused transformation.
Electrification materials investments
Electrification demand drove materials investments: Borealis expanding XLPE production for MV/HV/EHV cable insulation in Sweden, with new assets due 2026–2027. In e-mobility plastics, new halogen-free Exolit OP flame retardants and a second line at Daya Bay target PBT parts and insulation panels, reducing reliance on antimony- and melamine-based systems.
Bio-based and circular
Bio-based inputs expanded as Sasol launched LIVINEX IO 7 and Celtic Renewables produces bio-acetone, bio-ethanol, and bio-butanol for drop-in solvent applications and international market development.
Circular initiatives included Sonopress has launched EcoRecord with PET resin from Indorama Ventures, and the 2025 Inovyn Awards highlighting PVC recycling and design efficiency.
Regional capacity shifts
Regional supply footprints shifted as BASF boosts dispersion production in Türkiye to supply architectural coatings and construction across adjacent markets.
Labelstock service agility increased with UPM Adhesive Materials opening a terminal near Hanoi by mid‑2026 and upgrading Johor Bahru coating capacity.
Healthcare materials innovations
Healthcare specialties advanced with Asahi Kasei expanding Sonanos excipients for sustained release and solubility, with GMP supply targeted for 2027. Device polymers progressed via Mitsubishi Chemical's research on ZELAS AMP to impart antithrombogenic properties without coatings.
European market headwinds
European headwinds persisted as INEOS cutting 60 jobs in Hull cited high energy costs and coal-based imports, echoing industry concerns over trade defenses.