Recent developments
Localized capacities
Producers expanded local manufacturing to shorten lead times and rebalance networks. ARLANXEO will expand production capacity at its Triunfo plant in Brazil by 25% by 2027. BASF commenced production at its Zhanjiang Verbund site in South China. Evonik doubled long-chain polyamides capacity in Shanghai. LOTTE Chemical completed its petrochemical complex in Cilegon, improving self‑sufficiency. In Europe, BASF will build an Electronic Grade Ammonium Hydroxide plant in Ludwigshafen. BASF also consolidates Asian PolyTHF operations around Caojing.
Securing feedstocks
To stabilize feedstocks and pricing, INEOS Energy signed a long-term deal with Kinetik to bring U.S. natural gas to Europe from 2027 via a TTF netback. Regional gas coverage will be reinforced as ORLEN and Naftogaz have signed an agreement for U.S. LNG deliveries to Ukraine in Q1 2026. In Southern Africa, Sasol is advancing a Methane Rich Gas supply solution from Secunda for 2028–2030. INEOS marked 50 years of the Forties Pipeline System, noting investment constraints.
Critical materials and batteries
Supply of strategic inputs advanced as Solvay and Noveon Magnetics have signed a supply agreement for NdPr, Dy, and Tb oxides from 2026, including recycled sources. The EU awarded €643 million to five electric vehicle battery cell projects to strengthen materials, cell manufacturing, recycling, and second‑life capacity. Chlor‑vinyls chains diversified with TA’ZIZ signing product sale agreement term sheets with The Sanmar Group for multi‑year EDC/VCM exports.
Circularity and traceability
Indorama Ventures and Jiaren Chemical Recycling's joint venture targets up to 100,000 t/y of textile‑recycled PET spinning capacity and localized sourcing hubs. Operational containment strengthened as Trinseo achieved OCS Blue Verification at two U.S. sites. Logistics decarbonization progressed via the ports of Duisburg and Rotterdam CCUS‑ready corridor. Upstream inputs assurance broadened as Sumitomo and Nippon Steel’s Shell agreement will leverage digital technologies to enhance traceability and transparency in OCTG supply.
Contracts and financing
Operator contracting underpinned reliability: Equinor awarded new framework agreements for insulation, scaffolding, and surface treatment at Norwegian onshore plants (up to eight years, ~NOK 17bn). In the UAE, ADNOC announced AED54 billion in contracts to UAE suppliers. ADNOC also formed a strategic partnership with Comera Financial Holdings to automate PO‑backed SME financing. Commodity liquidity support continued as Gunvor USA refinanced and increased its syndicated credit facility to $2.81bn. Funding diversification included KMG listing yuan-denominated Eurobonds on the Astana International Exchange.
Network optimization
Distributors and producers recalibrated networks and costs: Brenntag is simplifying its governance structure and reviewing strategy to build a more competitive global distribution supply chain. Arkema is intensifying cost-cutting efforts and moderating capex. Lanxess’ ongoing “FORWARD!” action plan and network optimizations target structural savings through 2027. Services and utilities investment continued, with Veolia investing €2.3bn in Water Technologies and Hazardous Waste. Low‑carbon energy options progressed as partners agreed on Small Modular Reactor deployment pathways for industrial sites.