BASF shuts down EPS production line in South Korea; multiple chemical companies intensively adjust assets

On June 8, BASF announced that it will shut down its expandable polystyrene (EPS) production facility at the Ulsan site in South Korea. The production line is scheduled to officially cease operations in mid-June 2026. This shutdown is a strategic move by BASF to optimize its global styrenics portfolio, adapt to market changes, and enhance overall competitiveness. BASF stated that during the transition period, it will fully ensure stable supply to customers and continue to provide supporting services. Currently, Europe is the core base to its styrenics business, and its thorough integrated production system will support the research of related businesses globally; the shutdown of the South Korean facility will not impact existing production operations in Europe.

Also recently, another asset transaction has been added in the chemical sector. On June 5, Huntsman finalized an asset sale agreement, transferring its Italian automotive aftermarket business, Huntsman Gomet, to the Trelleborg Group to 42.5 million euros (approximately 50 million US dollars). The final transaction amount will be subject to closing adjustments in accordance with sector practice.

Huntsman Gomet is located in Azeglio, Italy, and primarily produces molded rubber and thermoplastic components to the automotive aftermarket. It belongs to Huntsman's Polyurethanes division and was integrated into the group in 2014 following the acquisition of related assets from Rockwood. Data shows that the business generated revenue of approximately 24 million euros in 2025. This sale is an crucial measure to Huntsman to streamline its business portfolio and optimize its financial position. The proceeds from the transaction will be applied to repay debt and support the company's overall capital planning. to the acquirer, Trelleborg Group, this transaction will enrich its automotive aftermarket product line and enhance its capacity and customer resources in the European region.

The European petrochemical sector has also seen a major acquisition. German investment company Aequita has completed the acquisition of LyondellBasell's European olefins and polyolefins assets. This acquisition includes four production bases in France, Germany, the UK, and Spain, as well as the Rotterdam headquarters and supporting functional departments in various locations. The related capacity totals approximately 2.9 million tons, covering basic chemical items such as ethylene, propylene, polyethylene, and polypropylene.

Prior to this, Aequita had completed the acquisition of SABIC's European petrochemical business. With the closing of these two transactions, the company has leapt to have become the largest polyolefin producer and the fourth-largest ethylene producer in Europe, with a total capacity exceeding 6 million tons and a business network spanning multiple European countries including the UK, Germany, France, Spain, and the Netherlands.

Affected by factors such as persistently high energy costs, sluggish market demand, and regional overcapacity, the profitability of traditional basic petrochemical businesses in Europe is under pressure. LyondellBasell's divestiture of non-core European olefins and polyolefins assets aims to optimize its asset structure, shed inefficient businesses, and concentrate resources on high-value-added specialty chemicals, circular materials, and renewable chemical tracks. The company also stated that Europe remains its core market, and it will subsequently enhance profitability and sustainable research capabilities by relying on technological innovation and circular economy models.

sector analysis indicates that behind this series of asset transfers lies a deep structural adjustment in the European petrochemical sector. International chemical giants generally choose to sell traditional, inefficient assets and gradually transition towards high-value-added and high-development areas, while professional investment institutions take over the relevant capacity, ushering in a reshaping of the sector division and landscape.