Company News
February 2, 2026
Epoxy Highlights from Olin Investors Call
Olin Corporation (OLN) Q4 2025 Earnings Call Transcript
Jan. 30, 2026 2:50 PM ETOlin Corporation (OLN) Stock
Q4: 2026-01-29 Earnings Summary
EPS of -$0.64 misses by $0.01
| Revenue of $1.67B (-0.37% Y/Y) beats by $121.30M
Olin Corporation (OLN) Q4 2025 Earnings Call January 30, 2026 9:00 AM EST
Company Participants
Steve Keenan – Director of Investor Relations
Kenneth Lane – President, CEO & Director
Todd Slater – Senior VP & CFO
Kenneth Lane
President, CEO & Director
Thanks, Steve, and thank you to everyone for joining us today. Let’s start with Slide 3 and review our fourth quarter highlights. As we previously announced, our fourth quarter came in significantly below our expectations.
In December, we experienced operational issues related to an extended turnaround of our Freeport, Texas chlorinated organics asset and third-party raw material supply constraints, both of which impacted our chlor-alkali assets. At the same time, we also experienced a sharp decline in chlorine pipeline demand in an already seasonally weaker quarter.
During the quarter, we were able to preserve our ECU values by staying disciplined with our value-first commercial approach, and we also announced the long-term EDC supply agreement with Braskem, which provides a higher value to both parties by integrating the low-cost producer of EDC with the leader in PVC in Brazil.
In addition, we’ve expanded our infrastructure footprint in Brazil, which enables us to grow our caustic sales there in 2026. In our Epoxy business, we were able to contract for significant growth in our European business, which we’ll begin to benefit from in the first quarter of 2026.
This is a result of our commercial team’s successful strategy to position Olin as the last integrated supplier of Epoxy in Europe, providing reliable, secure supply to local customers in the face of continued headwinds from subsidized Asian producers.
Let’s turn to Slide 4 for a closer look at our chlor-alkali products and Vinyls results. Macro conditions remain challenging. Merchant chlorine demand remains under pressure through this extended trough as subsidized Asian chlorine derivatives flood export markets. Since 2019, China exports of titanium dioxide, urethanes, epoxies, crop protection chemicals and PVC have grown 300% to 600% placing significant pressure on U.S. chlorine derivative customers.
As you would expect in a trough environment, we are already seeing chlor-alkali capacity rationalization in Europe, Latin America and the U.S., which should accelerate operating rates as demand recovers. Olin has done a great job of preserving our ECU values and remains committed to our value-first approach, and we are well positioned when markets recover from the trough.
As we look ahead to the first quarter, we’ll continue to face headwinds related to power and raw materials. As a result of winter storm Fern, we proactively shut down several of our Gulf Coast assets, which will increase our first quarter costs. In addition, we’ll see higher turnaround costs as we begin our VCM turnaround at our Freeport, Texas site. This is the single largest turnaround that Olin executes and occurs every 3 years.
In the near term, Olin faces stranded costs of approximately $70 million, resulting from Dow’s recent closure of their Freeport propylene oxide plant. This cost burden will be offset by our Beyond 250 structural cost reductions, which I’ll discuss shortly.
Now let’s turn to Slide 5 for a look at our Epoxy results. Our fourth quarter Epoxy results sequentially increased due to improved product mix, allylics and aromatics margins, partially offset by higher turnaround and seasonally lower demand. As we look ahead to the first quarter, we do expect our Epoxy business to return to profitability, although at a low level. This will be realized through actions we have taken by growing our participation in the European market realizing lower costs at our Stade, Germany site and lower turnaround costs.
As we look out further, structural changes in our cost position, recent European epoxy chain plant closures and continued growth in our formulated solutions portfolio will support a return to profitability for 2026 as well.
Over the past 3 years, Olin’s Epoxy business has remained focused on cost reductions. In that time, we’ve reduced our global epoxy cash costs by about 19%. Our most recent action was this month’s closure of our Guarujá, Brazil epoxy plant. This shutdown is expected to deliver $10 million of annual structural savings.
Also in 2025, we continue to deliver on our formulated solutions sales growth. These solutions enable AI chips to better manage heat and conductivity that allow lightweight wind blades to exceed 500 feet in length and that serves as adhesives in some of the most challenging environments and application. We will continue to benefit from that growth in 2026.
As mentioned earlier, Dow’s closure of its Freeport propylene oxide plant has created a $70 million stranded cost headwind for Olin. By optimizing our power supply, we’ve already managed to offset approximately $20 million of that stranded cost. Earlier this month, we announced the closure of our Epoxy production plant in Brazil. We’ll be able to more cost-effectively serve our customers there with supply from either Freeport or Stade, both of which are vertically integrated with better cost structures. As a result of this action, we expect to realize a $10 million annual benefit.
Frank Mitsch
Fermium Research, LLC
I may have missed this in the past, but I wanted to ask about this $70 million stranded costs for the PO-related closure. Dow announced this back in May of 2023. And so I — obviously, you’ve known about it for a long time and could plan for it, et cetera, that $70 million sounds like a very large number. Can you help explain that to us, to me, in particular?
Kenneth Lane
President, CEO & Director
Thanks for your question. listen, yes, we have known about this for a long time, and we’ve been planning it, and we talked about this at our Investor Day, we knew that this was coming — but you don’t take the costs out until you shut the assets. And so those assets are being closed and wound down as we speak.
So as we go through the year, we’re going to have to find ways to be able to offset that. And that’s — that was the basis for us creating Beyond250 is that we’ve got to find ways to be able to take those costs out. The way that we were talking about this, I think previously as well is that asset and the sales from that asset didn’t generate any margin for us. It was sort of a net zero effect for us in terms of the P&L. But that doesn’t mean that there would not be stranded costs with that. We were aware of that we’ve got to get after that. That is a very clear focus for us to be able to do that as we wind those assets down, but that is going to be something that happens over time. It doesn’t happen like flipping a switch.
Matthew DeYoe
BofA Securities, Research Division
I feel like the prior kind of commentary for 2026 epoxies, I think, we were expecting something around $80 million in cost savings, of which over half was supposed to come from just the Dow contract lapse Stade.
Clearly, you’re talking about modest profitability. Now, this wouldn’t be the first case, productivity is lost through the cycle, but I’m just trying to clarify if that’s what’s happening here or if we should expect those savings to be more ratable in ’27. I’ll let you expand from there.
Kenneth Lane
President, CEO & Director
Listen, so what we had said back at Investor Day, that $80 million, remember that was our cost-out target for 2028. So that — you’re going to realize a very big chunk of that $40 million to $50 million is going to be realized in 2026. So you are going to see Epoxy last year, $50-ish million EBITDA negative.
We’re going to be positive this year. I mean, I do expect that that’s going to be the result in 2026. So you’re going to see a meaningful improvement in our earnings. Most of that are things that we’re doing to help ourselves in cost reduction and efficiency improvements. Just to be clear, we’re not seeing any significant improvement in the Epoxy market. Demand is still subdued. Margins are still weak. That environment has not changed.
So all of this improvement that you’re seeing is a result of what we’ve done. And so it’s not getting lost anywhere. You’re going to see that positive impact coming through in 2026.
February 2, 2026
Covestro Expands TDI in China
Covestro expands TDI production capacity in Shanghai to 370,000 tons, strengthening competitiveness amid global supply tightening.
2026-02-02 14:03:09Source:ChemNet中文
On January 30, Covestro announced the completion of a major capacity expansion and upgrade of the toluene diisocyanate (TDI) production facility at its Shanghai integrated site. The annual TDI production capacity increased from 310,000 tons to 370,000 tons, a nearly 20% increase, further strengthening its supply capabilities in the Asia-Pacific region.
Covestro’s Shanghai integrated site is located in the Shanghai Chemical Industry Park and is the company’s largest production base globally. This expansion did not involve building new production lines but was achieved by optimizing existing production processes and infrastructure, resulting in significant output growth without additional land or major equipment investments.
Covestro Continues to Enhance Competitiveness in the TDI Sector
In March 2025, its largest TDI plant in Europe, located in Dormagen, Germany, completed a modernization upgrade. With an annual capacity of 300,000 tons, the core of the upgrade focused on energy recycling, reducing energy consumption by 80% compared to traditional processes and cutting annual CO2 emissions by 22,000 tons. This not only strengthened its competitiveness in high-energy-cost markets but also provided customers with TDI products with a lower carbon footprint.
In early 2026, the global TDI market experienced a concentrated contraction in supply. In January, global TDI plant shutdowns for maintenance totaled 860,000 tons, accounting for 24% of global production capacity. This included temporary shutdowns at Hanwha in South Korea and Wanhua’s Xinjiang facility, compounded by previous maintenance and abnormal fluctuations at major plants such as Covestro Shanghai and Wanhua Fujian, leading to a widening global supply gap.
Tight Supply in the TDI Market
From January 12 to 22, Wanhua Chemical’s TDI distributor price was set at 15,200 RMB/ton. Due to the ongoing shutdown of the Northwest plant, there was no supply from Northwest sources during this period. A major Shanghai manufacturer adjusted its TDI price to 14,400 RMB/ton, with tight supply and limited quantities available.
China’s TDI Exports Hit a Record High in 2025
Import and export data show that China’s TDI exports reached a historic high in 2025, with total annual exports reaching 556,500 tons and cumulative imports of only 3,400 tons. In December, exports were 50,200 tons, with imports of 140 tons; in November, exports reached 56,500 tons, setting a record for monthly exports, while imports were 460 tons. China’s TDI supply is highly self-sufficient, with exports playing a dominant role.
February 1, 2026
Class Action Update
2 Foreign Cos. Escape Pa. Polyurethane Price-Fixing MDL
By Lauren Berg · Listen to article
Law360(January 29, 2026, 8:23 PM EST)– A Pennsylvania federal judge on Thursday unsealed his opinion from earlier this month dismissing two parent companies in Germany and China from multidistrict antitrust litigation that accuses several companies of conspiring to manipulate the prices of two chemicals used to make polyurethane, saying the court doesn’t have jurisdiction.
After the parties agreed it could be unsealed, U.S. District Judge W. Scott Hardy made public his Jan. 8 opinion granting renewed motions to dismiss by Covestro AG, headquartered in Leverkusen, Germany, and Wanhua Chemical Group Co. Ltd., headquartered in Yantai, China, agreeing that his court “is unable to exercise general or specific personal jurisdiction over” the foreign parent companies.
“In the court’s estimation, plaintiffs fail to establish that Covestro AG and Wanhua China had sufficient minimum contacts evidencing they do business in the United States to be ‘found’ here, nor do they establish that these defendants availed themselves of the privileges of American law or otherwise reasonably could anticipate being involved in litigation in the United States,” the judge said.
Judge Hardy dismissed the claims against Covestro AG and Wanhua China with prejudice, but the companies’ domestic subsidiaries, Covestro LLC and Wanhua Chemical America Co. Ltd., remain in the case.
The Pittsburgh-based multidistrict litigation accuses several companies — including BASF Corp., The Dow Chemical Co. and Huntsman Corp. — of using plant closures and limited supplies to drive up the prices of methylene diphenyl diisocyanate and toluene diisocyanate.
The class action generally alleges that the chemical companies reacted to a period of low MDI and TDI prices in 2014 and 2015 by limiting production and artificially inflating the prices for manufacturers of polyurethane plastic products, including plaintiffs such as Rhino Linings Corp. and Elliott Co. of Indianapolis.
According to the complaints, the defendant companies conspired through trade groups and took advantage of the difficulty that competitors would face when entering the market for the chemicals, known as diisocyanates and isocyanates, along with their control over most of the supply and the fact that the chemicals can’t be replaced with substitutes.
In March 2020, U.S. District Judge Donetta Ambrose denied the defendants’ joint motion to dismiss the case, finding the allegations in the complaint were sufficiently supported to move the case ahead. She also denied a motion to dismiss for lack of jurisdiction brought by foreign-based corporations BASF SE, Covestro AG, Mitsui Chemicals, MCNS and Wanhua China.
But following jurisdictional discovery, Covestro AG in July 2022 and Wanhua China in February 2023 renewed their motions to dismiss for lack of jurisdiction, and Judge Hardy granted both on Jan. 8, according to the docket.
In his opinion, unsealed Thursday, Judge Hardy first determined that the “foreign corporations with a headquarters and a principal place of business in other countries are not ‘at home’ in the United States,” meaning his court cannot exercise general personal jurisdiction over the companies.
The court also doesn’t have specific personal jurisdiction over Covestro AG and Wanhua China under both the traditional three-step analysis known as the “minimum contacts” test or under the “Calder effects test” laid out in the 1984 U.S. Supreme Court case Calder v. Jones , which can be used when an intentional tort is alleged, the order said.
“As to both Covestro AG and Wanhua China, the record makes clear that personal jurisdiction does not lie under the traditional test because neither foreign defendant ‘purposefully availed itself of the privilege of conducting activities’ in the United States,” Judge Hardy said, noting that neither company has manufactured or sold MDI or TDI in the U.S.
Turning to the Calder test, Judge Hardy determined that the plaintiffs have not alleged the crucial third factor — that Covestro AG and Wanhua China “expressly aimed tortious conduct at the United States such that it can be said to be the focal point of the tortious activity,” according to the order.
“Given that Covestro AG is a German holding company which does not manufacture or sell MDI or TDI, or otherwise perform any operational functions … it strains credulity that it expressly aimed the tortious conduct at issue here at the United States,” Judge Hardy said.
As for Wanhua China, the plaintiffs “inaccurately contend” that the company is involved in setting a floor price for sales of MDI through its American subsidiary and that it controlled the subsidiary by having Wanhua China members on the subsidiary’s board of directors, the order states.
The judge also rejected the plaintiffs’ argument that Wanhua China’s announcement and subsequent cancellation of an MDI plant in the U.S. “would have constrained the market by boosting supply expectations and then not delivering,” according to the order.
“Plaintiffs’ purely speculative argument on this point is wholly insufficient to establish Calder’s express aiming prong,” Judge Hardy said, likewise rejecting the plaintiffs’ “contention that Wanhua China engaged directly with United States customers by attending meetings, hosting visits at its plant in China, or engaging with them on technical issues and providing updates on research and development” would establish that it expressly aimed tortious conduct at the U.S.
The judge also rejected the plaintiffs’ argument for express aiming based on their claim that Wanhua China shipped diisocyanates into the U.S., saying in the opinion that this argument “obscures the fact that although the vast majority of the MDI that [Wanhua Chemical America Co.] sells in the United States comes from Wanhua China, WCA, not Wanhua China, sells MDI and TDI” to U.S. customers.
“Even in instances where WCA offered ‘China Direct’ shipping for customers to save on overall supply chain logistics and costs, customers contracted and interacted with WCA, not Wanhua China,” the judge said.
Craig Seebald of Vinson & Elkins LLP, an attorney for Wanhua, told Law360 Thursday, “We are pleased with the court’s decision and its thorough consideration of the jurisdictional record. With the jurisdictional motion decided, we can move forward with the litigation and look forward to filing our summary judgment motion.”
Counsel for the plaintiffs and Covestro did not immediately respond to requests for comment.
The plaintiffs’ interim co-lead counsel are Megan E. Jones of Hausfeld LLP and Jason S. Hartley of Hartley LLP, and their interim liaison counsel is William Pietragallo II of Pietragallo Gordon Alfano Bosick & Raspanti LLP.
Wanhua is represented by Craig P. Seebald, Adam Hudes, Brian Schnapp, Charles L. Wesley and Nicole Castle of Vinson & Elkins LLP.
Covestro is represented by John F. Terzaken, Abram J. Ellis and Avia Gridi of Simpson Thacher & Bartlett LLP.
The case is In re: Diisocyanates Antitrust Litigation, case number 2:18-mc-01001, in the U.S. District Court for the Western District of Pennsylvania.
January 29, 2026
Urethane Highlights from Dow’s Investors Call
Dow Inc. (DOW) Q4 2025 Earnings Call Transcript
Jan. 29, 2026 12:32 PM ETDow Inc. (DOW) Stock
Dow Inc. (DOW) Q4 2025 Earnings Call January 29, 2026 8:00 AM EST
Company Participants
Andrew Riker – Vice President of Investor Relations
James Fitterling – Chairman & CEO
Karen Carter – Chief Operating Officer
Jeffrey Tate – Chief Financial Officer
James Fitterling
Chairman & CEO
Thank you, Andrew. Beginning on Slide 3. Team Dow continued to execute with discipline during a year marked by persistent macroeconomic challenges and trade and policy volatility as well as anticompetitive behaviors by certain industry players. In the face of external pressures, we managed what was within our control.
Our fourth quarter operating EBITDA was $741 million, reflecting an expected sequential decline from lower seasonal demand and typical margin compression across many end markets.
Looking across 2025, we accomplished several impactful near and longer-term milestones, all while the market wasn’t providing many tailwinds.
We identified more than $6.5 billion in near-term cash support items and delivered well over half in 2025, including the accelerated delivery of our in-year cost savings from our $1 billion cost out program.
And we further strengthened our global manufacturing footprint. This includes our announced plans to shut down upstream high-cost assets as well as the completion of our remaining incremental growth investments, which serve downstream higher-value markets that are growing above GDP.
We were also once again recognized as one of the world’s best workplaces. This reflects direct feedback from our employees about the culture and talent that continues to drive Dow forward.
As we move into 2026, we recognize that many markets are fundamentally shifting. Geopolitical dynamics, rapid advances in AI and automation and economic volatility require new breakthrough approaches, greater agility and continued technological adoption. That’s why we announced our Transform to Outperform program earlier today. This work builds on our track record of taking proactive measures to help Dow, and it represents a fundamental change in how we will operate and serve our customers. We believe this will strengthen our long-term competitive position through every part of the economic cycle.
And lastly, we have finalized a value-maximizing path forward for our Path2Zero project in Fort Saskatchewan. We’ll share more details on all of this later in the call. But before that, Karen will cover our fourth quarter operating segment performance.
Karen Carter
Chief Operating Officer
Thank you, Jim, and good morning to everyone joining today. Dow cost savings measures gained significant traction across every business in the second half of 2025, which is reflected in our fourth quarter performance. Despite continued industry pressures, we are delivering on our commitments and self-help actions.
Next, turning to our Industrial Intermediates & Infrastructure segment on Slide 5. Overall demand for industrial applications remain challenged, which continues to pressure the industry and our businesses. Net sales for the segment were $2.7 billion, down 9% versus the same period last year.
Sequentially, net sales decreased 5%, mainly due to lower local prices and seasonally lower building and construction volumes. Volume decreased 1% year-over-year, primarily driven by lower volumes in polyurethanes and construction chemicals. This was partly offset by higher than typical seasonal demand for deicing fluids which have continued into 2026.
Operating EBIT decreased $285 million versus the same quarter last year and $154 million sequentially, driven by lower integrated margins. Our cost savings in both businesses helped offset some of the decline.
We also completed the shutdown of our higher-cost upstream propylene oxide unit in Freeport, Texas, rationalizing approximately 20% of North American PO industry capacity.
Jeffrey Tate
Chief Financial Officer
Thank you, Karen. Good morning to everyone participating on today’s call. Slide 7 shows that across the broader macroeconomic landscape, there are mixed signals in several of our end market verticals and key geographies. Recent developments are showing some encouraging signals in response to structural industry challenges as well as trade and tariff uncertainties.
This includes several announcements of further ethylene capacity rationalization as well as the elimination of VAT export rebates on select products in China.
Across the infrastructure sector, building and construction conditions are likely to gradually improve as interest rate cuts over the past 12 months gain traction. Housing starts and existing home sales remain well below historical averages, but there are some signs of positive momentum with existing home sales increasing for 4 months in a row. Consumer confidence has improved slightly but remains near historic lows, continuing to weigh on overall demand. At the same time, U.S. retail spending is holding steady in several categories with resilient sales of electronics as a bright spot.
Moving to Industrial Intermediates & Infrastructure. We expect normal seasonal improvements in building and construction end markets. Additionally, positive demand momentum for deicing fluids should continue into the first quarter, providing a tailwind for the segment. Our cost savings efforts will provide an additional $10 million tailwind, while approximately $15 million for planned maintenance activity throughout the quarter is expected to offset these gains. And in the Performance Materials & Coatings segment, we anticipate typical seasonal improvements for Architectural Coatings as well as higher siloxane pricing following the increased market prices that happened in China late last year. Collectively, this will provide roughly $80 million of sequential tailwinds this quarter.
James Fitterling
Chairman & CEO
Thank you, Jeff. Slide 9 outlines the key areas where we’re focused on strengthening Dow’s earnings power to ensure that we remain resilient through every cycle. First, we expect to deliver the remaining more than $500 million in cost savings by the end of this year from our previously announced $1 billion program. We’re also executing a series of strategic moves that will uniquely position Dow to win. This includes the start-up of our remaining incremental growth investments in cost-advantaged regions as well as our announced shutdowns of upstream higher-cost assets.
Additionally, Transform to Outperform is expected to deliver at least $2 billion in near-term EBITDA improvement. About 2/3 of that will come from productivity gains and the remaining 1/3 from growth. This work will radically simplify how we operate, streamline our end-to-end processes, reset our cost structure and modernize how we serve our customers. We anticipate the outcomes to deliver step change improvements in productivity, more growth with our customers and greater shareholder returns.
Kevin McCarthy
Vertical Research Partners, LLC
Your II&I segment trended a little bit weaker than I think you and I both expected 2 or 3 months ago. So maybe a 2-part question. Can you talk about the variances that manifested in that segment versus your prior expectations? And then the second part would be on polyurethanes. I think in the past, you had discussed the strategic review of that business. Is there any update on the efforts there? Is it active or dormant? I appreciate any color there.
James Fitterling
Chairman & CEO
Karen, do you want to touch on II&I and then I can come back on polyurethanes.
Karen Carter
Chief Operating Officer
Sure. In the fourth quarter, we did see normal seasonal demand declines, particularly in the building and the construction market. And the reality is that, that market just continues to be under pressure, not just domestically, but around the world. And of course, that is putting down more pressure on pricing. But also, if you think about housing, if you think about automotive, those markets are just weak around the world.
And so as we went into fourth quarter, we saw that we had some lower fixed costs as well as lower planned maintenance, but the building and construction end markets and durables just really offset that.
And we think about first quarter, we do expect to see some modest seasonal demand improvements and also tailwinds from cost actions. But we have a bit of planned maintenance that’s going to offset that and again, just continued downward pressure, particularly in the building and construction market.
James Fitterling
Chairman & CEO
On Polyurethanes, we continue to look for the best options, Kevin, on a go-forward basis for the Polyurethanes franchise. We’re obviously making a lot of changes. We noted that we took out 20% of North American PO capacity at the end of first quarter. So we’re having some rationalization in the industry on higher cost assets to kind of address the oversupply situation there. I would say, additionally, the team has been very busy on the trade front. I mentioned anticompetitive practices before, but Europe, especially has been hit very, very hard from dumping of material into the European continent. And this comes from regions that don’t have any particular cost advantage to bring it in.
And so we’ve seen some actions, I think, are going to have positive impact. In China, for example, the announcement that the 13% duty drawback for exports out of China is going away; at the end of first quarter in April, I believe, is when it goes away. So there were companies that don’t have the cost position to be able to export under free trade, fair trade rules that were getting 13% duty drawbacks for all their exports. That’s going to go away. And you’ve got a whole host of cases on antidumping that are starting to take hold. There’s been more traction in the Americas than there has been in Europe. Europe is a bit slower to respond, but it is on the radar screen and it is getting attention in Europe.
Patrick Fischer
Goldman Sachs Group, Inc., Research Division
Maybe I can sneak in 2. First one, I believe Sadar is up for its debt refi midyear this year. So can you just give us some details about operationally, how Sadara is looking? And what does that debt refi mean for Dow? And then just the second one is, you gave us $1 billion on the Canada project at mid-cycle. What would that project be making in today’s environment?
James Fitterling
Chairman & CEO
Yes, on Sadara, we continue to keep a close eye on Sadara it’s running safely and reliably. I’d say we had one small incident at the cracker this year. But the assets are in a good position on the global cash cost curve. Most of it has been around the financial structure. And Dow and Aramco are conducting an ongoing strategic review of Sadara, which is targeted to be completed during the first half of 2026.
The JV obviously operates very safely and very reliably. And we’ll look at the — and evaluate the opportunities to enhance the long-term resilience of the joint venture. I don’t anticipate any cash payments to Sadara lenders in 2026. Sadara has got ample liquidity through their facilities and including some that they utilized in the fourth quarter. And of course, Dow and Aramco have support behind that, bearing guarantees behind that.
Yes. Frank, it’s a good question. And I just want to make sure that we’re clear that it’s not all AI. So there are also going to be some fundamental changes. We’re going to look at all of our integrated work processes from end to end and simplify those. So for example, in previous changes, we’ve looked at trimming third-party costs. We’ve looked at — obviously, always look at procurement and what we can do to do better procurement and bring costs down for what we pay out to third parties.
But in this case, we’re looking at how things are built into our system and how we do our work end-to-end and how can we take steps out, how can we automate things that are done either manually or handoffs within the system to date. And AI is going to give us a lot of possibilities there. Over the last couple of years and in the first — we had not in 2025, but we had $1 billion cost-out program before that. And some of the money from that program actually went into digital capabilities and IT.
So one of the things that we have is we have a lot of high-quality data. We’ve got an intelligent data hub that we’ve built inside the company that AI on top of that will allow us to take a look at these work processes and really take steps out and streamline the whole thing. So we call it a reengineering or a rewiring of the way we do business globally. And then that can be baked into the system and automated. And that’s one of the ways we’ll keep cost out as we go forward.
We’re seeing progress in many functions right now. Many different functions are using AI in ways that are speeding things up or reducing the cost to do things. We see it in legal, for example, patent research work. I’m doing discovery on cases on legal; there is a big cost savings there. We’re seeing it in a lot of other applications. So I think it’s going to be there. And we haven’t really started to get into yet robots and AI and robotics together. I think at some point, we will.
On traditional AI, we’ve seen great progress, obviously, from using technology to make things safer and eliminate certain costs from turnarounds and things like cost of scaffolding is a big cost in a turnaround by using drones and crawlers with cameras and other kinds of technologies, we can eliminate big costs out of having to scaffold parts of plants to go in and do those turnarounds. So they’re real numbers, and we’re pretty confident that we can bring it to all of that to the bottom line.
On the growth side, also be some refocus on where we have our people position. I would say the focus will be on still boots on the ground on the sales side, sales, tech service application development. Our model is you’ve got to be at the design table with your customers, and you got to be on the ground to do that. So we’ll look at how those are deployed. Are they in the right geographies and the geographies that are growing and then how we support that from behind the scenes inside the shop, see what we can do to automate to help them and bring better data to their fingertips.
January 26, 2026
Henkel Acquires ATP
Henkel to Acquire ATP Adhesive Systems
PUdaily | Updated: January 23, 2026
Henkel to Acquire ATP Adhesive Systems – a leading expert in high-performance water-based specialty tapes
- Adhesive Technologies to expand product offering with complementary bonding solutions in fast-evolving dynamic markets
- Innovative player in high performance water-based technology with sustainable competitive advantage and strong value creation potential
- In addition to water-based tapes, access to advanced technological capabilities and expertise in hotmelt and solvent-based polymer tapes
- Adhesive Technologies to become a bonding solution provider beyond liquid adhesives offering additional value to its customers
Henkel signed an agreement to acquire Swiss-based ATP Adhesive Systems from Arsenal Capital Partners. ATP Adhesive Systems is a leading expert in high-performance water-based specialty tapes for a wide variety of end-markets, including automotive, electronics, medical, building & construction, and graphics applications. ATP Adhesive Systems has its presence in Europe and North America, employs around 700 employees and generated sales of around 270 million euros (expected) in fiscal year 2025.
“Expanding our portfolio through compelling, value-adding M&A transactions is an integral part of our purposeful growth agenda. This acquisition will enable further growth in our Adhesive Technologies business unit by increasing our offering and capabilities in the tapes market with a broader range of innovative bonding solutions. The portfolio of ATP Adhesive Systems represents a strong complementary and strategic fit for us. It also aligns with our sustainability targets, as more than 90 percent of the portfolio utilize water-based technologies with a low carbon footprint,” said Henkel CEO Carsten Knobel.
“With this acquisition, we will further strengthen our Adhesive Technologies business unit. The ATP Adhesive Systems business delivers a compelling portfolio of water-based specialty tapes with increasing use cases as a more sustainable alternative with low VOC (volatile organic compounds) levels and consequently driving growth well above the broader tapes industry. It also offers state-of-the-art production facilities and technological capabilities to further enhance our portfolio and to establish the foundation of a platform that extends beyond liquid technologies while accelerating innovation in sustainability”, said Mark Dorn, Executive Vice President and responsible for Henkel’s Adhesive Technologies business unit.
The acquisition is subject to customary closing conditions, including the receipt of regulatory approvals. At this point, the parties agreed to not disclose the financial terms of the transaction.
Source: Henkel
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