12 Global Giants Shut Plants or Sell Units in Just 6 Months as Chemical Industry Faces Unprecedented Restructuring

In a bold move marking its latest strategic shift, INEOS has sold its INEOS Hygienics business to SKG Capital Partners, a Middle East-based family office. Launched during the pandemic, the hygiene brand will now continue expanding under new ownership in the FMCG sector, while INEOS sharpens its focus on core sectors like chemicals and energy.

This deal is only the latest in a string of major divestments and closures by INEOS. Since late 2024, the company has shuttered the UK’s last synthetic ethanol plant, exited the composite materials business for €1.7 billion, and announced multiple plant closures across North America and Canada, citing economic and regulatory challenges.

The chemical industry is clearly under pressure. Major players across Europe, Asia, and North America are racing to cut costs, restructure, or divest underperforming operations. Just in the past half-year, over 12 global companies have executed drastic measures:

• Sumitomo and Mitsui Chemicals sold their joint venture Nippon A&L to Sojitz.

• Syensqo, facing market headwinds, revealed a plan to cut 200 jobs and divest its oil and fragrance chemicals units.

• Dow announced the closure of three European sites and delayed a major Canadian project, following 20+ similar actions since 2023.

• SGL Carbon is shutting down its Portuguese carbon fiber plant by 2026 due to severe overcapacity.

• Celanese plans to spin off its Micromax® line and raise engineering material prices amid soaring operational costs.

• Kraton exited dimer and polyamide lines in Ohio to concentrate on pine-based chemicals.

• Ascend Performance Materials filed for Chapter 11 bankruptcy protection in Texas, though global operations remain unaffected.

• TotalEnergies will shut a key cracker in Belgium by 2027, citing contract losses and structural disadvantages.

• Mitsui is cutting TDI capacity in Japan by more than half following a planned plant shutdown.

• Additional giants like Shell, Covestro, LyondellBasell, Mitsubishi Chemical, Huntsman, Arkema, Teijin, and UBE have all taken similar steps involving job cuts or factory closures in H1 2025.

This rapid wave of restructuring underscores the chemical sector’s shift toward survival and adaptation, with sustainability, cost-efficiency, and portfolio realignment now driving decision-making at the board level.