Chemical Industry
Cefic – the European Chemical Industry Council – doesn’ t mince its words in the recently released 2025 Facts & Figures Report 1. Calling 2025 a year of both challenge and transformation, Cefic states that“ With a turnover of EUR635 billion and 1.2 million people employed, the sector continues to supply essential materials to industries ranging from automotive to healthcare, underpinning daily life across the continent. However, the global landscape is shifting rapidly. Europe’ s share of the world chemical market has declined to 13 %, while China now accounts for 46 % of global sales and has become the EU’ s leading source of chemical imports.” Concerns raised by Cefic include high energy prices in Europe, weak demand, growing import pressure and low-capacity utilisation. Positives include Europe’ s role as a manufacturer of high-value specialty chemicals. The picture is similar in the US, according to the American Chemistry Council( ACC) 2.“ America’ s chemical industry faced a difficult economic environment during 2025,” said Chief Economist Martha Moore in the Council’ s Year-End Situation & Outlook.“ Despite unprecedented levels of uncertainty that challenged the industry and its customer markets [ in 2025 ], we anticipate a recovery emerging mid-year
Chemical industry- a question of definition
INEOS is set to invest GBP150 million Grangemouth( Scotland) site. Image courtesy INEOS.
of 2026. Over the next decade, we look for growth as the President’ s‘ America First’ agenda bolsters domestic manufacturing and pro-growth, pro-manufacturing policies enhance the chemical industry’ s competitiveness around the world.” Meanwhile, a Chemical & Engineering News post by Hepeng Jia suggests that China’ s chemical makers are also facing headwinds despite a push to cut capacity 3. Key insights from the article: overcapacity will continue
The scope of the chemical process industry( CPI) is open for debate. If the industry is defined as encompassing all activities that rely on chemical conversion processes to yield products, then the CPI should include such areas as the petroleum industry, metals and alloys production, and even the production of man-made fibres such as nylon. Typically, however, the chemical sector is said to comprise four distinct areas:( i) basic chemicals( eg, sulphuric acid, chlorine, industrial gases),( ii) specialty chemicals( adhesives, food additives, explosives),( iii) agricultural chemicals( pesticides and fertilisers) and( iv) consumer products( such as soaps, detergents, bleaches and paints). to plague China’ s chemical industry in 2026; government capacity-cutting efforts are likely to have little impact; and demand for materials related to electric vehicles and solar panels will grow rapidly.
Project activity
Whatever the short-term sentiments, many chemical companies seem prepared to invest in new facilities, plant expansions and technology upgrades. The following projects were all posted between late November and early January. INEOS announced a GBP 150 million investment at its Grangemouth( Scotland) site, said to support the production of modern-day essentials such as food packaging and housing insulation to automotive parts, hospital equipment, medicines and sustainable technologies. Meanwhile, K2 Pure Solutions broke ground on a commercial low-carbon hydrogen facility in Pittsburg, California. The project will expand K2’ s existing chloralkali operations. Multiple announcements came from India, where for example L & T won a major order from Bharat Petroleum Corporation for the engineering, procurement, construction and commissioning of swing unit facilities to produce low and high-density polyethylene. Comprising two trains of 575 KTPA each, this will set a new benchmark in India’ s polyethylene production capacity. Further, Indian Peroxide Limited has announced the development of a 400 TPD Chlor-alkali plant in Gujarat, hinting at commissioning by October 2026. The facility has been engineered for scalability up to 800 TPD, underscoring the company’ s ambition to build a globally competitive, fully integrated chemical manufacturing
16 Valve World February 2026 www. valve-world. net