ICIS - chemical podcasts Episode 1373: Think Tank: AI, innovation and M&A could save chemicals in high-cost regions
Aug 12, 2025
Join Richard Carter, a seasoned expert from Carter Consultancy with over 20 years at BASF, and Paul Hodges, Chairman of New Normal Consulting, as they dive into the evolving landscape of the chemical industry. They explore how AI can enhance efficiency even amidst structural challenges. The conversation covers the urgent need for mergers and acquisitions as local firms adapt to shifting demands. They also discuss unexpected opportunities in the defense sector and the crucial shift toward sustainable, low-carbon products to navigate high operational costs.
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European Chemicals Facing Structural Shift
- European chemical decline is structural, not cyclical, driven by shifts like the pivot to China and service economies.
- The industry faces system effects as closures disrupt clusters, pipelines and utilities, accelerating transformation.
Pipeline Volumes And System Equilibrium
- Ethylene volumes through key pipelines like the ARG have fallen sharply, around one third up to 2023.
- This disturbed equilibrium raises operational and commercial risks for connected sites and clusters.
Demand Decouples From GDP
- Demand for chemicals is decoupling from GDP due to tech advances and lighter, more efficient products.
- Increased recycling and improved materials technologies are reducing virgin feedstock needs.