The state of European chemicals sector continues to dominate the news agenda, highlighted by the £150 million ($207m) support package for Ineos’s Grangemouth complex in Scotland. The support combines UK government loan guarantees, public grant funding and private investment to keep the site operating.
The funding will be used to upgrade production units, improve energy efficiency and reduce emissions, ensuring the plant continues to supply chemical feedstocks for packaging, healthcare products and consumer goods across UK supply chains.
The investment is expected to secure more than 500 direct jobs and support wider employment across associated supply chains, reinforcing the plant’s role in domestic manufacturing at a time of high energy costs and regulatory pressure.
Changing market conditions
Braskem, the Brazilian petrochemicals producer, is also experiencing major change. Novonor has agreed to sell its controlling stake to private equity firm IG4 Capital, which will share control with state-run Petrobras.
The transaction, which involves the transfer of around BRL 20 billion ($3.85bn) in credit and shares, comes as the company continues to navigate tight petrochemical margins and ongoing liabilities linked to salt mining operations in northeastern Brazil.
New management at Braskem is expected by March, signalling a strategic reset for one of the region’s largest chemical producers.
In India, Chemco has commissioned a food-grade PET recycling plant in Sanand, Gujarat, capable of processing more than one billion post-consumer bottles each year into rPET suitable for food and beverage packaging. The facility operates as a closed-loop bottle-to-bottle system, giving Chemco control over collection, processing and final output.
The plant holds approvals for food-contact applications in India, the US and Europe, demonstrating how manufacturers are increasingly integrating recycling into their operations to meet rising demand for certified recycled-content materials.
By contrast, Alpek Polyester USA is shutting its rPET plant in Reading, Pennsylvania, one of the largest standalone bottle-to-bottle recycling facilities in the Americas. The site, which supplied bottle-grade rPET to regional bottlers, will close in March, reflecting persistent challenges in the economics of PET recycling in the US and highlighting the regional disparities in investment and market conditions.
Policy and operational pressures
Efforts to improve circularity are also evident in broader regulatory and industry initiatives. The US Plastics Pact reported that more than half of the plastics packaging placed on the US market by its members is now reusable, recyclable or compostable, up from 36 per cent in 2021.
The organisation also recorded growth in recycled and bio-based content, while noting ongoing constraints linked to infrastructure gaps and inconsistent end-market demand.
Meanwhile, California has enforced accountability through settlements totalling $3.35m with bag producers Novolex, Inteplast and Mettler Packaging, which were found to have misrepresented the recyclability of their products. These agreements come ahead of a statewide ban on checkout plastics bags from January 2026, ensuring compliance with new environmental legislation.
Similar regulatory pressure is emerging in Asia. Singapore will launch a nationwide deposit return scheme for drinks containers on 1 April, offering consumers a 10-cent refund for returned bottles and cans via reverse vending machines.
Taiwan has taken a different approach, revising its plastics reduction policy to focus on economic incentives and circular economy measures after acknowledging that its original pledge to phase out four single-use plastics items by 2030 will not be met. Together, these initiatives show the varied ways governments are seeking to strengthen recycling and reduce waste across markets.
At the same time, the packaging machinery and flexible packaging sectors are experiencing consolidation. Sacmi, the Italian packaging machinery group, has acquired a 65 per cent stake in French systems provider Groupe Emballage Technologies, bringing Etpack, Sermatec and Pactisoud under its control.
The acquisition expands Sacmi’s secondary packaging systems portfolio and strengthens its presence in France.
US flexible packaging manufacturer ePac Holdings was acquired by private equity firm Butterfly Equity, following previous ownership by a consortium including Amcor and Indevco North America. In the UK, Enact Fund has brought together Par Pak Europe and Holfeld Plastics under the Waddington Europe brand. These transactions underscore the ongoing role of private capital in shaping ownership and growth strategies within the sector.
Operational realities emerge
Operational challenges and technological developments are also shaping how companies manage production and materials. Dutch chemicals company Avantium has delayed the start-up of its FDCA flagship plant in Delfzijl after piping problems were identified during commissioning.
The setback is expected to add around €7m ($8.4m) in capital expenditure and push commercial production into the second half of 2026. Avantium is continuing to commission its sugar dehydration, oxidation and purification units to ensure a safe and reliable start-up, which is critical for the production of PE furanoate using its YXY technology.
Meanwhile, US-based industry consultant Chris Marinello has launched ResinSurplus, a digital marketplace for trading surplus plastics resins.
The platform allows companies to manage excess materials arising from production overruns, grade changes, forecasting errors or reformulations, without disrupting existing commercial channels.
Initially focused on resins, ResinSurplus plans to expand into additives, colourants and thermoformer materials, giving manufacturers greater transparency, control and efficiency in inventory management while improving sustainability by reducing waste.
