Recent significant business adjustments have emerged in the global chemical industry. Three major industry players—Saudi Basic Industries Corporation (SABIC), Domo Chemicals Group, and LG Display (LGD) under LG Group—have announced the sale of their European and American operations, the bankruptcy filing of a German subsidiary, and the dissolution of a factory in China, respectively. These moves involve asset divestitures, capacity relocations, and layoffs affecting thousands of employees, highlighting the profound restructuring underway in the global chemical sector amid weak demand, high costs, and intensified market competition.

SABIC Divests Two European and American Businesses for $950 Million to Focus on Core Segments
On January 8, 2026, Saudi chemical giant SABIC officially announced the divestiture of its European Petrochemicals (EP) business and its Engineering Thermoplastics (ETP) operations in Europe and the Americas. The total enterprise value of these two transactions amounts to $950 million (approximately RMB 6.6 billion). This marks another significant step in the company’s portfolio optimization plan initiated in 2022.

According to the announcement, SABIC has reached an agreement with German asset management firm AEQUITA to sell its European Petrochemicals business for $500 million. This business covers the production and sales of basic chemical products such as ethylene, propylene, various polyethylene, and polypropylene, as well as high-value-added polymer compounds. It manages multiple production bases in Teesside (UK), Geleen (Netherlands), Gelsenkirchen (Germany), and Genk (Belgium).

Simultaneously, its Engineering Thermoplastics business in Europe and the Americas will be sold to German private equity firm MUTARES for $450 million. This business primarily produces resin products such as polycarbonate (PC) and polybutylene terephthalate (PBT), with production facilities spread across the United States, Mexico, Brazil, Spain, and the Netherlands.

SABIC stated that this divestiture is a critical step in advancing its strategy, aimed at shedding low-return businesses and concentrating resources on its core chemical segments. Notably, 70% of SABIC’s shares are held by Saudi Aramco. The recent decline in oil prices has reduced shareholder dividends, prompting Saudi Aramco to cut capital expenditures through cost reductions and asset sales, which has also influenced SABIC’s business optimization efforts.

It is worth noting that while divesting low-return businesses, SABIC is expanding its presence in high-end sectors. In November 2025, the company announced plans to increase its specialty oligomers capacity to meet the demand for high-performance printed circuit boards in artificial intelligence and 5G applications. Additionally, SABIC is developing strategic plans, including an initial public offering, for its subsidiary, the National Industrial Gases Company.

LGD Dissolves Yantai LCD Factory, Completes Relocation of Over 1,000 Employees
Recently, LG Display (LGD), a leading display panel manufacturer under LG Group, announced the dissolution of its LCD module factory in Yantai, Shandong Province. The employee relocation process has now been fully completed.

The factory was once a core production base for LGD’s global small and medium-sized panels, supplying products to major clients such as Apple and LG Electronics. It was also one of the largest foreign-invested enterprises in Yantai. The restructuring affected over 1,000 employees. Since late 2024, the factory began optimizing its assets, with all production equipment relocated to Vietnam. By January 2026, the factory site had been cleared, with no signs of resuming operations. The facility is now slated for sale.

Regarding employee compensation, LGD implemented a differentiated standard based on years of service, offering a compensation package ranging from 1.65N to 1.8N. Employees with ten years of service received compensation of RMB 60,000 to 70,000, while technical骨干 employees could receive up to RMB 120,000.

As a global leader in display panel manufacturing, LGD has been dedicated to display technology since 1987, achieving mass production of TFT-LCDs in 1995 and pioneering large-sized OLED TV panel production in 2012. In recent years, the company has accelerated its strategic transformation, selling its Guangzhou LCD factory and fully focusing on OLED业务. By the third quarter of 2025, OLED sales accounted for a record-high 65% of its total revenue. The dissolution of the Yantai factory is a key step in LGD’s strategy to divest from LCD operations and concentrate on high-end segments.

Domo Chemicals’ German Subsidiaries File for Bankruptcy, Halting Spot Deliveries and Affecting 585 Employees
On January 6, 2026, Domo Chemicals announced that its three German subsidiaries had filed for bankruptcy, leading to the suspension of spot deliveries from its German production bases. Previously, on December 29, 2025, Domo Chemicals GmbH, Domo Caproleuna GmbH, and Domo Engineering Plastics GmbH officially submitted bankruptcy applications.

The bankruptcy directly affects 585 employees, including 515 at the Leuna plant in Germany and 70 at the Premnit Domo engineering plastics factory. A company spokesperson stated that through bankruptcy protection measures, employee salaries would be secured until the end of March this year.

These subsidiaries primarily produce chemical intermediates and engineering plastics such as cumene, phenol, acetone, and nylon 6 resin. Currently, the capacity utilization rate at Domo’s German production bases has fallen below 60%. To reduce costs, the company has requested customers to arrange their own pickups, and a significant number of orders have been suspended.

Domo Chemicals attributed the bankruptcy to persistently weak demand in the European chemical industry and intense competition from non-EU regions, particularly China, in the polyamide resin market. The company had initiated a restructuring plan in 2024, but recent short-term financing negotiations broke down, ultimately forcing its German entities to seek court protection.

European chemical companies are currently under widespread pressure, as Asian competitors gain market share with lower raw material and energy costs. Coupled with regional economic uncertainties leading to sluggish demand, multiple capacity optimization cases have emerged in the industry. Data shows that from March 2024 to December 2025, spot prices for phenol and acetone in Europe fell by 49% and 61.5%, respectively. Production costs for phenol in Europe are 41% higher than in Southeast Asia and 45% higher than in the Middle East. High energy costs and aging equipment have further squeezed profit margins.

Industry Restructuring Becomes a Global Trend, Accelerating Structural Optimization
The密集 adjustments by these three industry giants are not isolated incidents. According to industry analysis, the global chemical industry has been in a downturn for approximately three and a half years, with the accelerated exit of outdated capacity overseas becoming a trend. In Europe, rising energy costs and tightening environmental policies have led many chemical companies to shut down or relocate production capacity. Meanwhile, in China, policy-driven "anti-internal competition" efforts are accelerating the淘汰 of inefficient capacity.

Analysts predict that as global chemical industry capital expenditures continue to decline and supply-side optimization persists, coupled with emerging demand from sectors such as new energy, the industry may reach a cyclical turning point around 2026. The global chemical landscape is now entering a phase of重塑.