March 13, 2025 – Global chemical giants have recently unveiled their 2024 annual performance reports, revealing a myriad of strategies employed to navigate the complex and volatile market landscape. Amidst the challenges, cost-cutting measures have emerged as a prominent theme for many, with BASF, Dow, Covestro, Arkema, DuPont, and 15 other notable chemical companies grabbing industry attention for their financial results and response strategies.
BASF reported full-year sales of €65.3 billion (approximately RMB 496.49 billion), marking a decline from 2023. However, the company’s net income surged to €1.3 billion, a significant leap from the €225 million recorded in the previous year, thanks to its cost-saving initiatives. By the end of 2024, BASF had incurred one-time costs of roughly €900 million in pursuit of these savings.
Dow faced a similar challenge with a 1.6billiondropinannualnetsales,totaling43 billion. In response, the company announced a 1,500-job cut and a $1 billion cost-reduction plan. According to Color Masterbatch Industry Network insights, Covestro, Arkema, and DuPont also implemented distinct cost-cutting measures. Covestro stabilized its EBITDA by optimizing cost structures and enhancing production efficiency, while Arkema invested in major growth projects to expand its business scope. DuPont, on the other hand, strategically shifted its focus, abandoning the spin-off of its water business to concentrate on the separation of its electronics division.
Other chemical firms, including Celanese, LANXESS, Huntsman, and Solvay, also disclosed their 2024 performance and cost-reduction strategies. Amid pressure from cost constraints, market competition, industry consolidation, and strategic adjustments, many companies opted to close high-cost facilities, reduce workforce, and streamline business structures to boost profitability. For instance, Celanese announced the shutdown of its Mylar specialty film manufacturing operation in Luxembourg to exit high-cost facilities, while Honeywell revealed a plan to split into three, separating its automation, aerospace, and advanced materials businesses to focus more sharply on core areas.
Notably, despite the challenges, some companies achieved growth in 2024. Saudi Basic Industries Corporation (SABIC) saw its net profit rise, attributed to the steady progress of its investment projects in China, Saudi Arabia, South Korea, and Singapore. Evonik also reported increased annual sales and earnings per share.
Overall, the 2024 global chemical market exhibited complexity and dynamism, with companies not only addressing challenges but also actively seeking new development opportunities. As the market environment continues to evolve, chemical enterprises must strengthen technological innovation, optimize business structures, and enhance profitability to maintain a competitive edge in the global arena.