June 4, 2025 – Global chemical giant Sasol has unveiled a major strategic realignment, announcing plans to shutter four manufacturing facilities across Europe and the U.S. over the next 18 months in response to structural shifts in the chemical market.
The company revealed during its Capital Markets Day that two phenolic plastics plants in Houston, U.S., will be permanently closed by the end of 2025. This marks the third recent capacity adjustment for the group, following earlier decisions to mothball an ethanol plant in Louisiana, U.S., and a linear alkylbenzene (LAB) unit in Italy, according to insights from the Color Masterbatch Industry Network.
In a briefing, Sasol’s CEO emphasized that the move is a pivotal step in the company’s strategic transition from a “scale-first” to a “value-first” approach. Data shows that Sasol’s International Chemicals division generated $4.5 billion in revenue last year, with the Americas region accounting for 65% of that total. However, weak market demand and overcapacity have rendered certain assets incompatible with the company’s long-term growth strategy.
Notably, this is not Sasol’s first reduction in European operations. In Q4 of last year, the company closed an alkyl phenol plant in Germany due to cost pressures. Analysts highlight that these successive adjustments reflect the acute challenges facing the global basic chemicals market.
Sasol stressed that its Southern African energy and chemicals operations will remain the core pillar of its development. The company plans to focus resources on business segments with competitive advantages while continuously optimizing its global asset portfolio. The market is closely watching how this round of capacity adjustments will impact global chemical supply chain dynamics.