In May, two major chemical giants collapsed one after another, and the industry collectively cooled down

Since May 2026, the global chemical industry has collectively cooled down. Many well-known chemical companies in the United States, Japan, Europe, and China have been crushed by overcapacity, high costs, and weak demand, and have successively declared bankruptcy, shut down factories, sold businesses, or laid off employees on a large scale.
Two British and American companies declare bankruptcy, causing fatal damage to their funding chain
Trinseo filed for Chapter 11 bankruptcy reorganization on May 13th. This American specialty materials company is a globally renowned supplier of polycarbonate, styrene butadiene latex, and ABS resin. However, its operations have been under continuous pressure in recent years, with a net loss of $546 million in 2025 and another $116 million in the first quarter of 2026, resulting in a total debt of up to $2.8 billion. After the restructuring, it is expected to reduce $2 billion in debt, and existing lenders will acquire 100% equity of the restructured company. The CEO of the company stated that this move aims to strengthen the balance sheet and continue uninterrupted operations. The rights of all general unsecured creditors will not be affected.
Plastic Energy entered bankruptcy proceedings on May 11th. This British chemical recycling company has independently developed TAC ™ Thermal decomposition technology can convert waste plastics into synthetic oil, and there are two commercial recycling plants built in Spain. But it collapsed due to the sustained downturn in the European plastic recycling industry and cash flow disruptions. At present, the management is seeking potential buyers to take over the business, and the operating entities of the two factories in Spain have not entered bankruptcy proceedings and are still operating normally.
Japanese chemical giants collectively divest and exit traditional businesses on a large scale
On May 12th, Asahi Kasei announced the closure of multiple production lines at its Shuijima factory, including styrene monomer, low-density polyethylene, and high-density polyethylene, as well as the cessation of a 200000 ton/year acrylonitrile production line. The company clearly stated that this is an exit from a business area with sustained low profitability. The company admitted that the ethylene cracking unit in Japan has been below the breakeven line for 44 consecutive months, and the current utilization rate is only maintained at around 70%. ”The company has set a four-year transition period and expects to officially cease production by 2030.
Mitsubishi Chemical announced on the same day that it will completely withdraw from PBS's biodegradable plastics business in Thailand. The production plant of the company's joint venture with PTT Global Chemical in Thailand has been shut down since December 2025 due to lower than expected market demand and sluggish long-term profitability. After the existing inventory is sold out, sales will be terminated and facilities will be dismantled. This is not the first time the business has been cut off, as the company has previously withdrawn from PET bottles, coke, needle coke and other businesses.

European and American companies divest businesses, shut down production capacity, and optimize personnel in order to survive
European polyamide giant DOMO Chemical announced on May 6th that it will sell its entire Engineering Materials (EM) business to a subsidiary of Lone Star Fund. This transaction covers the entire scope of engineering materials business, including three European production bases located in Premnitz, Germany, Alco, Italy, and Gojow, Poland, support functional departments located in Belgium, Germany, Spain, Poland, and India, as well as international entities operating in Haiyan, China, Mumbai, India, Seoul, South Korea, and Buford, USA. The transaction also includes the application center in Lyon, France, the masterbatch industry activities, and TECH YL, which has a history of over 70 years ® Brand intellectual property portfolio.
On May 5th, Seranis announced the closure of its nylon 66 factory in Singapore and the optimization of two production facilities in the United States. The company stated that this move aims to "enhance competitiveness and simplify production layout". The Singapore factory is expected to operate until the end of July 2026 to ensure smooth shutdown.
Koppers, a global supplier of carbon compounds and commercial wood processing products and services, plans to close its Illinois factory by the end of 2026, affecting approximately 120 employees. The factory mainly produces anti-corrosion chemicals for railway and wood product processing. The reason for closure is due to aging facilities, rising operating costs, and increased investment in environmental compliance. Production will be transferred to Georgia and Ohio. The company expects to incur restructuring expenses of $30 million to $35 million in fiscal year 2026.
On May 8th, Wacker Chemie announced the layoff of approximately 1600 employees in Germany, accounting for nearly 10% of its total workforce in Germany. Among them, the Burghausen headquarters will lay off 1300 people, the Ningshilitz base will lay off 200 people, and the Munich area will lay off 60 people. The goal of layoffs is to save 300 million euros in costs annually.
On May 12th, UK waste management giant Viridor announced its proposal to cease its European chemical recycling operations in Oslo, Norway, Skiff, Denmark, and Malmo, Sweden. The company stated that weak demand, regulatory uncertainty, and competition from low-cost virgin plastics have made advanced plastic recycling "impossible to achieve commercial investment without policy changes"
Domestic chemical enterprises shrink and adjust
Changxing Chemical, a wholly-owned subsidiary of Shanshui Technology, has completely ceased production since May 1st. The company's main business is ortho aminobenzenesulfonic acid, with an annual production capacity of 2400 tons. However, due to high raw material prices and weak downstream demand, it continues to suffer losses. The company stated that 'continuing production will exacerbate losses'. In 2025, the subsidiary's operating revenue accounted for 3.91% of the company's consolidated financial statements.
Shandong Huiyuan Chemical is facing a change of ownership within less than two years of its establishment. On May 6th, the company disclosed that its controlling shareholder plans to transfer 51% of its equity. The company will incur a loss of 350000 yuan for the whole year of 2025 and has not yet turned around its losses in the first quarter of 2026. After the transaction is completed, actual control will be transferred.
Hengli Petrochemical's Singapore subsidiary plans to cease operations in late May, and approximately 100 employees will face layoffs or job transfers. The subsidiary mainly engages in trading of petroleum and petrochemical derivatives. Previously, the parent company was included in the sanctions list by the United States on the grounds of "suspected procurement of Iranian oil".
Shengxiao and Plastic Energy have successively collapsed, and Japanese companies have withdrawn on a large scale, DOMO、 Seranis Koppers、 Wacker Chemicals and other European and American companies have been making reductions, and domestic companies have not been spared either. This global cold winter in the chemical industry may continue to affect the direction of the industry landscape.