Global Chemical Leaders Invest in the Future of High-Performance Materials

ChemNet News — July 6, 2026 — From late June to early July 2026, the global chemical and new materials industry witnessed a wave of concentrated strategic adjustments. International giants such as Covestro, BASF, INEOS, and Honeywell successively completed major capital moves including asset acquisitions, business divestitures, and corporate spin-offs, further accelerating the industry trends towards specialization, high-end orientation, and lightweight integration.

Covestro completes cross-border M&A, fully doubling down on high-end HDI material layout

On July 2, Covestro announced that it had officially completed the acquisition of two former Vencorex overseas production bases on July 1, located in Rayong, Thailand, and Freeport, Texas, USA, focusing on the production of HDI derivative products.

This acquisition fills Covestro's capacity gaps in Southeast Asia and North America, forming a linkage with the company's existing production systems in Europe, Asia, and North America. It significantly enhances the supply stability and delivery capabilities of global high-end polyurethane raw materials, continuously reinforcing its leading position in the fields of high-end raw materials for coatings and adhesives.

HDI derivatives are core raw materials for high-end polyurethanes, widely used in high-value-added scenarios such as automotive coatings, industrial heavy anti-corrosion, marine coatings, and electronic coatings. With the expansion of downstream demand, global HDI capacity has entered a cycle of rapid expansion, with multiple companies concentrating on commissioning and expanding production, and the long-term total global capacity is expected to reach 950,000 tons/year.

Currently, the global HDI capacity landscape continues to iterate. Covestro has an existing capacity of 190,000 tons/year; Wanhua Chemical's existing capacity plus technical renovation will reach a long-term capacity of 309,000 tons/year, firmly holding the global top spot; Japan's Tosoh and Asahi Kasei continue to expand production. Meanwhile, domestic companies are accelerating their breakout, with Meirui New Materials, NHU (Zhejiang NHU), and Sinochem International, among others, successively building large-scale HDI capacities, continuously accelerating the process of import substitution.

BASF continues asset slimming, divesting coatings and fine chemicals businesses successively

On June 30, the transaction between BASF and The Carlyle Group for the coatings business was officially closed. The enterprise value of this transaction was 7.7 billion euros, with BASF receiving approximately 5.8 billion euros in pre-tax cash proceeds.

Following the completion of the transaction, the former BASF coatings business became an independent entity named Surventis, focusing on OEM automotive coatings, refinish coatings, and surface treatment businesses, with BASF retaining a 40% equity stake. Combined with the previously divested Brazilian decorative coatings business, the overall valuation of BASF's entire coatings sector reached 8.7 billion euros, demonstrating an excellent market valuation level. The management team of the new company officially took office on July 1, achieving independent market-oriented operations.

In addition to the coatings sector, BASF continues to optimize its asset structure. It recently officially exited the BASF Jilin Chemical Neopentyl Glycol project, a joint venture with PetroChina, withdrew from the powder coatings and coil coatings polyester resin raw material tracks, and continues to shrink traditional fine chemicals businesses to focus on the core track of high-value-added new materials.

INEOS divests non-core specialty chemicals, focusing on main business to optimize asset structure

On June 30, INEOS successfully completed the sale of its INEOS Calabrian business, transferring the ultra-pure sulfur dioxide and derivatives business as a whole to Ecovyst for a transaction amount of 190 million US dollars.

This business owns two major production bases in the United States and Canada and is a leading specialty sulfur-based chemicals supplier in the North American region, covering fields such as water treatment, mining, and specialty chemicals. Despite stable operations, it does not belong to INEOS's core strategic sector. Following the completion of this divestiture, INEOS has further streamlined its business portfolio to concentrate resources on deeply cultivating the core chemical industry chain, enhancing overall operational efficiency and profitability quality.

Honeywell completes heavyweight spin-off, formally establishing three independent listed companies

On June 29, Honeywell successfully completed the spin-off of its aerospace business. The group was formally split into three independent, listed, and operating entities, marking a historic reshaping of the corporate structure.

Following the split, the positioning of the three major business entities is clear: Honeywell Technologies (HON) continues operations under the original entity; Honeywell Aerospace is independently listed with the stock code HONA; and Solstice Advanced Materials operates independently, focusing on the high-end new materials track. The three enterprises are located in different regions, achieving specialized and refined independent development.

In addition, Honeywell announced in April of this year that it would sell its Productivity Solutions business to Brady Corporation for 1.4 billion US dollars. The transaction is expected to close in the second half of 2026, and this series of asset adjustments will fully complete the group's strategic transformation.

Industry Summary

This round of concentrated adjustments by international chemical giants presents a highly consistent industry logic: divesting traditional and non-core assets, acquiring and strengthening high-end new materials, and achieving specialized operations through spin-offs. The global chemical industry is bidding farewell to the "big and comprehensive" model; competition in the high-end materials track and professionalized competition in segmented fields will become the mainstream trends of the industry in the future.

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