Recent developments
Europe under strain
Europe’s competitiveness continued to deteriorate, prompting restructuring and closures. Public appeals such as INEOS’s call for EU action highlighted energy and carbon cost disadvantages and rising imports. Companies announced defensive moves: job cuts at the Hull Acetyls plant; shutdown of two production units in Rheinberg; closure of Dow’s Tertre polyether polyols plant; and Trinseo’s facility closures and dividend halt.
Capital and balance sheets
Upstream integration and balance sheet repair featured prominently. Aramco acquired an additional 22.5% stake in Petro Rabigh, alongside equity injection and loan waivers to reduce debt and fund targeted reliability upgrades. BASF updated its Winning Ways strategy, reaffirming cash flow targets, portfolio options, and progress at the Zhanjiang Verbund. These moves reinforce capital discipline and downstream optionality.
Regionalization and capacity
Producers expanded regional footprints to cut lead times and serve growth markets: BASF launched a new dispersion line in Dilovası, Türkiye; UPM Adhesive Materials will open a slitting and distribution terminal near Hanoi; DuPont agreed to acquire Sinochem (Ningbo) RO Memtech to localize FilmTec manufacturing; LyondellBasell announced expansion of Purell healthcare polymers in North America; and Tengizchevroil achieved a 71% local content score in procurement to deepen its Kazakh supply base.
Critical inputs secured
Security of inputs advanced via resource and offtake moves: Nobian gained approval to extend salt extraction in Zuidwending, supporting chlor‑alkali chains; Messer signed a long-term helium SPA with QatarEnergy; ORLEN commenced production at the Andvare field, adding Norwegian gas volumes; UPM formed a long-term partnership with Versowood to strengthen Finnish wood sourcing; and EET entered an agreement with Harvest Energy to take over fuel delivery for 47 forecourts.
Technology substitutions
Materials strategies pivoted to reduce geopolitical exposure: Clariant introduced titanium-based catalysts for polyester polymerization to address antimony export restrictions and lower energy use. In healthcare polymers, LyondellBasell’s supply model emphasizes change control and regulatory readiness, improving predictability for device and packaging customers.
Distribution and operations
Distribution and operational resilience were strengthened: LyondellBasell received the Monozukuri Spirit Award in the agility category; Brenntag appointed Bjørn Andersen as COO to oversee supply chain, HSE&S, and CAPEX; FUCHS acquired its Swiss distribution partner ASEOL SUISSE AG to consolidate local service; and ASPİLSAN Enerji supplies rail system batteries, supporting domestic capabilities in Türkiye.