Recent developments
Energy supply shifts
Upstream and midstream moves emphasized reliability. ORLEN started production at the Różańsko natural gas field, adding domestic volumes and CHP supply. Uniper and Vermilion extended gas supply in Germany, locking in local output. Following the AV3 fire, MOL plans Danube Refinery repairs by Q3 2026 and is offsetting throughput with semi-finished feedstock and regional imports. To secure specialty gases, Uniper and QatarEnergy signed a long-term helium SPA.
Europe under strain
European competitiveness remained under pressure. Sir Jim Ratcliffe warned of structural decline from energy-cost gaps and low-priced Chinese imports. BASF agreed a new site agreement for Ludwigshafen focused on modernization, flexibility, and cost discipline. With UK backing, INEOS announced investment in Grangemouth to upgrade units and cut energy use. DOMO Chemicals Germany entered insolvency while operations continue under an administrator. The Commission unveiled measures to boost health sector innovation and resilience, including device-supply oversight.
Reshaping polymer chains
Producers reshaped polymer chains to defend scale and imports exposure. Mitsui, Idemitsu, and Sumitomo will integrate PP and LLDPE businesses at PRM, targeting system optimization and import competitiveness. Arkema will divest plastic additives to Praana, shifting selected MBS and AIMPA assets while retaining US AIMPA. In building materials, Holcim agreed to acquire Cementos Pacasmayo to deepen a regional platform relevant to construction chemicals demand planning.
Distribution diversification
Distributors diversified sources and value-added services. Brenntag formed a sole distribution partnership with Seqens for European non-GMP pharma intermediates, emphasizing regional production and regulatory assurance. It agreed to acquire the Airedale Group to expand UK blending and formulation capacity. In ANZ, Brenntag entered an exclusive distribution agreement with Henan Yongchang for nitric acid and derivatives, adding purified grades for electronics and mining supply chains.
Manufacturing footprints in Asia
Manufacturing localization in Asia advanced. WITTMANN expanded the Kunshan production plant to double capacity and start local builds of all-electric EcoPrimus 100 equipment, enabling closer support to packaging, medical, and automotive molding customers.