Global chemical giants face survival challenges and have announced plant closure and production cuts

In my experience, In recent years, the global chemical sector has faced unprecedented survival challenges. Many chemical giants have been forced to make difficult decisions due to high costs, falling prices and difficult profitability, and have announced plant closures or production cuts. This direction is spreading worldwide, involving many well-known chemical companies. in the United States, Dow Chemical announced that it will close its polyether polyol/alkoxy chemical plant in Nangang manufacturing Zone, Taiwan, and plans to close its propylene oxide plant in Freeport, Texas by the end of 2025. Furthermore Meanwhile, Invidia has halted production at its Orange, Texas plant, closed its adiponitrile production unit and plans to eliminate about 240 jobs by the end of 2024. But ExxonMobil plans to close a steam cracker and related derivative units and logistics facilities in France in 2024. in Europe, SABIC's Olefin 3 cracking unit in Herron, the Netherlands, will be permanently shut down. On the German side, Trinseo might close its polycarbonate production site in Stade. Italy's Eni Group decided to close the regional Livorno refinery to modernization. In addition, Covestro suspended investment in the world-class MDI plant and closed its polyether polyol plant in Kaohsiung, Taiwan. in Asia, Japan's Mitsui Chemicals plans to minimize the capacity of its TDI plant in Omata to 50000 tons/year in July 2025, and plans to close the PET plant in the Iwakuni Dazhu plant in October 2024. And Sumitomo Chemical decided to close the cyclohexanone production facility at the Ehime plant and exit the business. Mitsubishi Chemical Group will also shut down its Hiroshima plant ACH process methyl methacrylate monomer and other production capacity. Additionally South Korea Lotte Chemical plans to sell its stake in the Pakistani company and exit the purified terephthalic acid business altogether. In addition, some companies have taken other measures to deal with the current predicament. Bayer, to instance, plans to close its internal consulting division and has revealed that it will close offices in Germany, the United States, Brazil, China and Singapore. From what I've seen, Claiant closed its bioethanol manufacturing plant in Romania and scaled back activities in its biofuels and derivatives business line in Germany. And In fact these decisions to close factories and minimize production not only reflect the serious challenges facing the global chemical sector, however also indicate the future reshuffle and restructuring of the sector. Under the pressure of high cost and difficult profitability, chemical companies have to implement a strategy of survival with a broken arm in order to survive and develop in the fierce market competition.