Huntsman Corporation (HUN): PESTLE Analysis [Nov-2025 Updated]

You're looking at Huntsman Corporation (HUN) right now, and the picture is complex. As a specialty chemicals player, their success in late 2025 isn't just about chemistry; it's about geopolitics, interest rates, and consumer sustainability demands. My analysis shows the company is deep into a cyclical trough, but their aggressive cost-cutting and shift to high-margin products are the right moves. Still, with a projected 2025 Adjusted EBITDA around $650 million, down from prior peaks, the near-term story is a tightrope walk where global industrial demand and US-China trade policy are the biggest variables. Let's break down the Political, Economic, Sociological, Technological, Legal, and Environmental factors that will defintely shape your investment decision.

Huntsman Corporation (HUN) - PESTLE Analysis: Political factors

Geopolitical tensions, especially US-China trade policy, affect supply chains.

You cannot look at a global specialty chemicals company like Huntsman Corporation without immediately confronting the volatility of US-China trade policy. Honestly, this is the single biggest near-term political risk to your margins. The back-and-forth tariffs create massive cost uncertainty for both raw material imports and finished product exports.

For most of 2025, the chemical industry has been grappling with aggressive tariff escalations. The US imposed duties that reached up to 145% on many Chinese goods, and China retaliated with tariffs of up to 125% on US imports. This forces costly supply chain shifts. For example, US polyethylene exports to China plummeted because Chinese importers faced that 125% retaliatory tariff.

The good news is that a framework deal reached in November 2025 brought some relief. The US agreed to lower the fentanyl-related tariff, reducing the general tariff rate for China to 49% (down from 59%). In return, China suspended its retaliatory tariffs announced since March 2025, lowering the general tariff rate on US exports to China to a still-high 21.9%. This trade-off defintely stabilizes things, but the tariffs are still a significant tax on cross-border trade.

US and EU sanctions create volatility in raw material sourcing and end markets.

The ongoing sanctions against Russia, particularly by the European Union, continue to inject volatility into Huntsman Corporation's European operations. The specialty chemicals sector is heavily dependent on feedstocks (basic chemicals) derived from crude oil and natural gas, and the political push to diversify away from Russian sources has a clear financial cost.

The EU's 18th Sanctions Package, introduced in July 2025, extended export prohibitions to cover critical industrial inputs, including certain ores, metals, and metal-related chemical compounds to Russia. This is a direct constraint on end-market access and the movement of some Advanced Materials products. The bigger issue, though, is the cost of raw material sourcing. Over 60% of the EU's benzene and toluene-key aromatics for Huntsman's performance polymers-are derived from imported crude oil and naphtha. The necessary diversification away from Russia has already increased freight and refining costs by an estimated 19%.

Government incentives for green chemistry could boost specialty polymer demand.

While trade wars raise costs, the political push for sustainability in the US and EU presents a clear opportunity for Huntsman Corporation's differentiated products. The specialty chemicals market is shifting toward sustainable solutions, and governments are using policy to drive demand.

In the EU, the Commission's Chemicals Industry Action Plan (CIAP), unveiled in July 2025, aims to strengthen the sector by promoting clean chemistry. This includes fiscal incentives and tax policies to boost demand for 'clean chemicals'. Plus, the accompanying 6th Omnibus simplification package is expected to save the industry at least €363 million (approximately $425 million) annually by streamlining regulations. That's capital unlocked for green investment.

The EU is also establishing a Critical Chemical Alliance by the end of 2025 to reduce import dependencies and safeguard critical production sites. This creates a preferred market for EU-based production of innovative, sustainable materials, which aligns perfectly with Huntsman Corporation's focus on specialty polyurethanes and advanced materials. In the US, the political future of the $369 billion Inflation Reduction Act (IRA) remains uncertain, but its existing tax credits still incentivize green technology adoption, creating a pull for Huntsman's energy-saving insulation products.

Global trade agreements (or lack thereof) impact cross-border tariff costs.

Huntsman Corporation's geographic footprint makes it highly sensitive to the state of global trade agreements. The company's TTM Revenue as of Q3 2025 was $5.8 billion, with sales spread across major economic blocs. Any friction in these zones immediately translates into higher costs or reduced market access. You can't just ignore a market that makes up over a quarter of your sales.

Here's the quick math on where the political friction hits hardest, based on the company's 3Q25 LTM revenue breakdown:

The lack of stable, comprehensive trade agreements forces the company to manage multiple, often contradictory, tariff schedules and regulatory frameworks (like REACH in Europe). The EU's new Import Surveillance Task Force, operational since March 2025, is actively monitoring for trade diversion and price dumping, which introduces a new layer of trade defense risk for non-EU imports.

Your action item is clear: Finance and Supply Chain must immediately model the impact of the new 49% (US import) and 21.9% (China import) tariff rates on your Polyurethanes and Advanced Materials segments for Q4 2025, and then accelerate investment in European green chemistry projects to capitalize on the CIAP incentives.

Huntsman Corporation (HUN) - PESTLE Analysis: Economic factors

The economic landscape for Huntsman Corporation in 2025 is a complex mix of deep cyclical trough and aggressive internal cost-saving measures. While the company is fighting hard to control what it can, the macroeconomic headwinds, particularly in industrial and construction end-markets, are defintely a heavy drag on profitability.

Global industrial demand remains soft, putting pressure on volumes.

You're seeing the same sluggishness across the entire industrial chemical sector. Huntsman's largest segment, Polyurethanes, which serves the construction and automotive markets, saw its sales volumes decline by 2% year-over-year in the second quarter of 2025, and the company noted a muted seasonal uplift in construction demand. Globally, chemical production is only projected to grow by about 3.5% in 2025, a modest recovery from the previous year, but the key industrial and construction sectors remain challenging.

This softness forces Huntsman to prioritize 'value over volume,' which means walking away from low-margin business, especially in Europe where competition is fierce. The Performance Products division, for example, saw a 10% volume decrease in the third quarter of 2025, partly due to the strategic closure of the high-cost European maleic anhydride facility in Moers, Germany. That's a tough but necessary call to protect margins.

Huntsman's 2025 Adjusted EBITDA is projected around \$650 million, reflecting cost controls and slow recovery.

The target Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of around \$650 million for the full year 2025 is an aggressive goal that hinges on a significant fourth-quarter recovery and the full impact of cost controls. To be fair, the actual performance year-to-date tells a different story: the Last Twelve Months (LTM) Adjusted EBITDA as of September 30, 2025, stood at only \$311 million.

Here's the quick math on the YTD reality:

• Q1 2025 Adjusted EBITDA: \$72 million
• Q2 2025 Adjusted EBITDA: \$74 million
• Q3 2025 Adjusted EBITDA: \$94 million
• YTD (Q1-Q3) 2025 Adjusted EBITDA: \$240 million

The company is relying on its restructuring programs, which are expected to yield over \$100 million in savings by 2026, to bridge this gap. Still, hitting the \$650 million target would require a massive, unexpected surge in demand in Q4, which is unlikely given the current market signals.

High interest rates increase borrowing costs for capital expenditures (CapEx).

The persistent high interest rate environment is a direct headwind for a capital-intensive business like specialty chemicals. Huntsman's net debt leverage ratio increased to 5.0x LTM Adjusted EBITDA as of the third quarter of 2025, up from prior periods due to the drop in earnings. A higher leverage ratio makes any new borrowing, or refinancing of existing debt, more expensive because of the elevated base rates set by the Federal Reserve and other central banks.

Management has wisely tightened the belt on spending. The full-year 2025 Capital Expenditures (CapEx) guidance has been narrowed to the lower range of \$170 million to \$180 million, a cautious approach that prioritizes critical maintenance and safety over growth projects in this environment. This is a clear action: reduce discretionary spending when the cost of capital is high.

Currency fluctuations, particularly the Euro/USD, affect reported earnings from European operations.

A significant portion of Huntsman's operations and sales are in Europe, making the Euro/US Dollar (EUR/USD) exchange rate a critical factor in translating foreign earnings back into US Dollars. In the third quarter of 2025, the Advanced Materials segment actually benefited from the positive impact of major foreign currency exchange rate movements against the U.S. dollar on its average selling prices [cite: 17 in previous step's search].

Looking ahead, the consensus for the EUR/USD pair is generally in the 1.14 to 1.19 range for late 2025 [cite: 20 in previous step's search]. A stronger Euro (higher EUR/USD rate) is generally favorable for US-based companies with Euro-denominated profits, as each Euro earned translates into more US Dollars on the income statement. However, any volatility in this range introduces forecasting risk.

Inflationary pressure on natural gas and oil feedstock costs is defintely a risk.

The cost of raw materials, which are largely derived from natural gas and crude oil, remains a key risk despite some recent moderation. Even with cost-saving initiatives, the underlying price volatility is a constant threat to margins. We've seen significant inflation in key petrochemical building blocks:

• U.S. Ethane prices grew 28.5% year-over-year in January 2025 [cite: 13 in previous step's search].
• U.S. Ethylene prices spiked up 72.2% year-over-year in January 2025 [cite: 13 in previous step's search].
• In major global petrochemical regions, methane prices were increased by 23% and ethane by 20% effective January 1, 2025 [cite: 11 in previous step's search].

This high-cost environment, especially in Europe where natural gas prices are structurally higher than in the U.S. due to import reliance, is a major reason Huntsman is rationalizing its European footprint. They previously had to impose a surcharge on MDI sales in Europe due to energy price hikes, showing how quickly these costs can hit the bottom line [cite: 19 in previous step's search].

Huntsman Corporation (HUN) - PESTLE Analysis: Social factors

Growing consumer demand for sustainable and bio-based chemical products

The shift in consumer and industrial purchasing toward sustainable and circular economy products is a major tailwind for Huntsman Corporation's differentiated portfolio. You see this pressure not just from end-users but also from major industrial customers who need to meet their own net-zero commitments. Huntsman is responding with tangible, bio-based solutions, which is defintely the right move.

For instance, the Polyurethanes segment, which accounted for 38% of Adjusted EBITDA for the LTM ending 3Q25, is strategically focused on this trend. The company's Thermoplastic Polyurethane (TPU) production sites have achieved ISCC+ certification, which is a critical step in demonstrating compliance with mass-balance accounting for sustainable raw materials. This is a direct answer to the market's demand for verified sustainable sourcing.

Furthermore, the company's subsidiary, HBS, is actively converting low-quality PET plastic bottles into high-performance, energy-saving polyurethane insulation systems for construction. This circular economy model directly addresses the social demand for waste reduction while providing a product that cuts energy consumption in homes and buildings.

Increased scrutiny on worker safety and ethical sourcing in the global supply chain

The chemical industry operates under intense public and regulatory scrutiny, and Huntsman Corporation's social license to operate hinges on its safety record and supply chain transparency. The company's commitment is formalized in its Horizon 2025 targets, which are aligned with the global Responsible Care® initiative. For a specialty chemical manufacturer, safety metrics are a leading indicator of operational discipline.

The most critical safety targets for 2025 focus on eliminating severe incidents. This is not just a moral obligation; a single major process safety event can wipe out an entire year's profit and permanently damage brand equity.

Here's the quick math on their safety focus, showing the clear targets they are working toward:

On ethical sourcing, the company is engaging suppliers and service providers-which represent an estimated two-thirds of its non-product use Scope 3 emissions-to establish their own carbon-neutral goals by 2027. This pushes social and environmental responsibility deep into the supply chain, which is what key investors and non-governmental organizations (NGOs) now expect.

Demographic shifts in Asia and North America drive demand for specific materials (e.g., insulation)

Demographic and lifestyle shifts are translating directly into demand for Huntsman's materials, particularly in the construction and automotive sectors. In North America, the focus on residential housing and energy efficiency standards is driving the market for insulation products. In Asia, rapid urbanization and infrastructure development are the primary drivers.

Looking at the second quarter of 2025, the Polyurethanes division saw a clear regional split in construction-related revenue:

• North America accounted for approximately 40% of total construction revenue, primarily driven by residential housing demand.
• Asia contributed approximately 20% of total construction revenue, focused mainly on infrastructure and commercial markets.

The good news is that volume in the insulation and automotive businesses in Asia showed growth in Q2 2025, which helped offset weaker performance in other Asian markets. This highlights a clear opportunity: as Asia's middle class expands, demand for better-insulated, more comfortable homes and lighter, more fuel-efficient vehicles will continue to grow, directly benefiting Huntsman's advanced materials.

Pressure from investors and NGOs for transparent Environmental, Social, and Governance (ESG) reporting

Investor pressure for transparent and comparable ESG data is no longer a niche issue; it's a core component of capital allocation decisions. Huntsman has responded by achieving 60% collective progress on its near-term Horizon 2025 targets, demonstrating tangible movement toward its goals. This progress is essential for maintaining a favorable cost of capital.

The company provides disclosures against major global frameworks, including the Task Force on Climate-related Financial Disclosures (TCFD), the Global Reporting Initiative (GRI), and the Sustainability Accounting Standards Board (SASB). Plus, they get third-party limited assurance on their operational greenhouse gas emissions (Scope 1 and 2) and water consumption, which is a key credibility booster.

The regulatory landscape, particularly in Europe, is adding significant external pressure. The EU's Corporate Sustainability Reporting Directive (CSRD) is set to impact a substantial number of companies with EU operations, including US-based firms like Huntsman. Failure to comply with these new, detailed reporting requirements on pollution, biodiversity, and business conduct could lead to financial liabilities and serious reputational risks. This is a very real, near-term compliance challenge.

Huntsman Corporation (HUN) - PESTLE Analysis: Technological factors

Significant R&D focus on advanced materials, like polyurethanes for energy efficiency.

Huntsman Corporation's core technological advantage is rooted in its extensive research and development (R&D) of differentiated materials, particularly MDI-based polyurethanes. This focus is directly tied to the global megatrend of energy efficiency, which is a major driver for the Polyurethanes segment, a business that generated approximately $3.8 billion in Sales Revenue for the last twelve months ending Q3 2025.

The company maintains a significant, though constrained, investment in innovation. Huntsman's latest twelve months R&D expenses stand at approximately $122 million, a critical spend that fuels their advanced material pipeline. This investment translates into products like Huntsman Building Solutions' spray foam insulation, which is engineered to reduce heating and cooling loads in buildings by up to 50%, providing a clear, measurable energy-saving benefit to customers.

Here's the quick math: that 50% energy-load reduction is a powerful sales tool against rising energy costs. We are defintely seeing a strong market pull for these high-performance, insulating materials, which are the most effective thermal insulants available.

Digital transformation of manufacturing (Industry 4.0) to optimize production and reduce waste.

While the broader chemical industry pushes toward full-scale digital transformation (Industry 4.0), Huntsman's current technological initiatives are centered on operational efficiency and collaboration in a challenging economic cycle. The company's full-year 2025 Capital Expenditures (CapEx) are projected to be in the range of $170 million to $180 million, a significant portion of which is prudently allocated to maintaining and optimizing existing operations for efficiency and cash preservation.

A key strategic move is the Technology Portal, a platform launched to foster external collaboration, including a dedicated 'Manufacturing Solutions' route. This is how they streamline new product scale-up and industrialization by working with outside expertise, rather than relying solely on internal capacity. The focus is on making the manufacturing process itself a competitive advantage, ensuring products are made efficiently and with minimal waste.

Innovation in composite materials to replace traditional metals in automotive and aerospace.

The Advanced Materials segment is heavily invested in developing lightweight composite materials, which are essential for reducing mass and improving fuel efficiency in the transportation sector. The global advanced composite materials market size was valued at $45.39 billion in 2025 and is projected to grow substantially, indicating a clear, long-term opportunity for Huntsman.

Huntsman's composite resin systems are designed to replace traditional metals in high-performance applications. For example, in the automotive sector, their composite solutions for leaf springs can be up to five times more durable than a steel spring, while significantly reducing unsprung weight. In aerospace, their materials are qualified to stringent OEM specifications (like Boeing and Airbus) and are used for light-weighting components, which directly lowers operational costs for airlines.

The company also continues to invest in next-generation materials like MIRALON®, a carbon nanotube technology, signaling a commitment to ultra-lightweight, high-strength solutions. Still, the Advanced Materials segment saw a 25% lower Aerospace sales volume in Q2 2025, which shows that even superior technology is not immune to cyclical industry headwinds.

Development of new low-VOC (Volatile Organic Compound) and non-toxic formulations to meet regulations.

Technological innovation is increasingly driven by regulatory compliance and sustainability targets. Huntsman's Horizon 2025 strategy is aligned with the American Chemistry Council's Responsible Care® initiative, focusing on environment, health, and safety.

The company has achieved 60% collective progress on its near-term Horizon 2025 targets. This includes a concrete goal of achieving a 10% reduction in energy consumption and Scope 1 and 2 Greenhouse Gas (GHG) emissions intensity by the end of 2025, using a 2019 baseline. This means their process technology must evolve to be less energy-intensive.

Product development is focused on safer chemistry, with the Advanced Materials portfolio specifically offering formulations with low-VOC and reduced environmental impact. This is not just a regulatory hurdle; it is a market-driven opportunity as customers prioritize sustainable solutions.

• Target a 10% reduction in GHG emissions intensity by 2025 (from 2019 baseline).
• Achieved 60% collective progress on Horizon 2025 sustainability goals.
• Develop low-VOC and non-toxic formulations to meet stricter global environmental standards.

Huntsman Corporation (HUN) - PESTLE Analysis: Legal factors

Compliance with the EU's REACH and Stricter US EPA Rules

You can't run a global specialty chemicals business without navigating a minefield of environmental regulations, and Huntsman Corporation is no exception. The EU's Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) framework is defintely the most complex and costly non-financial compliance hurdle globally, requiring continuous substance testing and data submission for all products sold in the European Economic Area.

In the US, the overhaul of the Toxic Substances Control Act (TSCA) by the Environmental Protection Agency (EPA) means stricter rules on chemical substance registration, use, and risk evaluation. Honestly, the biggest impact here isn't just the direct cost, but the uncertainty, as new chemical reviews are taking far longer than the statutory 90-day timeframe, which creates a real barrier to innovation.

To manage this, Huntsman Corporation is actively spending on compliance-related capital improvements. For the first six months of 2025, capital expenditures from continuing operations for Environmental, Health, and Safety (EHS) matters totaled $15 million, a 50% increase from the $10 million spent in the same period of 2024. This shows a clear, near-term escalation in mandatory compliance spending.

Increased Litigation Risk Related to Legacy Contamination and Product Liability Claims

The chemical industry always carries a tail of legacy environmental contamination, and that risk is a permanent fixture on the balance sheet. Huntsman Corporation manages this exposure through specific financial accruals (reserves) for anticipated cleanup obligations, site reclamation, and known penalties.

As of June 30, 2025, the company had accrued $15 million in environmental liabilities for anticipated cleanup obligations and site reclamation, consistent with the reserve level at the end of 2024. This reserve covers remediation liabilities that may be payable over periods up to 30 years, including ongoing requirements at sites like the Geismar, Louisiana facility under the Resource Conservation and Recovery Act (RCRA).

Still, the company has seen some positive legal resolutions in 2025 that offset other costs. For instance, the Performance Products division benefited from the reversal of non-cash loss contingency accruals totaling $14 million over the second and third quarters of 2025. This includes a $7 million reversal in Q2 2025 and an additional $7 million reversal in Q3 2025 related to a successfully settled commercial dispute, meaning that specific threat is now gone.

Antitrust Scrutiny on Global Mergers and Acquisitions (M&A)

In the specialty chemicals sector, global M&A is always subject to intense antitrust scrutiny from bodies like the US Federal Trade Commission (FTC) and the European Commission (EC). The trend is toward longer, more demanding reviews, especially for deals that consolidate market share in niche product lines.

While Huntsman Corporation has not announced a major acquisition facing antitrust review in 2025, their strategic actions reflect a focus on rationalizing assets, which is the flip side of M&A. This is a crucial strategic move to simplify the portfolio and exit non-core, underperforming, or geographically challenging businesses.

A concrete example of this strategic legal/operational action is the closure of the European Maleic Anhydride facility in Moers, Germany, announced in May 2025. This decision, which followed a strategic review, is expected to result in a one-time non-cash asset impairment charge of approximately $75 million in the second quarter of 2025. This move eliminates a business that generated an adjusted EBITDA loss of approximately $10 million in 2024, cutting off a drag on performance and simplifying the company's regulatory footprint in the challenging European market.

The key takeaway is that the legal and regulatory environment is currently pushing action toward internal restructuring and divestiture, not large-scale, complex acquisitions that invite antitrust scrutiny.

• Antitrust risk is high, favoring internal rationalization over M&A.
• Moers, Germany facility closure incurred a $75 million non-cash asset impairment charge.
• This strategic move simplifies the European regulatory and operational complexity.

Huntsman Corporation (HUN) - PESTLE Analysis: Environmental factors

Carbon border adjustments (CBAM) in the EU will impact export costs from high-emission regions.

The European Union's Carbon Border Adjustment Mechanism (CBAM) poses a significant, near-term reporting burden and a clear future financial risk, even though the full cost won't hit until 2026. Right now, in 2025, you are in the transitional phase, meaning Huntsman Corporation's EU importers must report the embedded carbon emissions of certain goods, but they don't have to pay the carbon price yet.

The real risk for Huntsman Corporation is twofold: first, the administrative complexity of tracking and reporting emissions from non-EU sites, and second, the eventual cost on imports of carbon-intensive raw materials. While the initial CBAM scope covers sectors like steel and hydrogen, the chemical industry is deeply intertwined with these supply chains. This will force a strategic review of sourcing, especially for products shipped from high-emission regions outside the EU to Huntsman Corporation's 20 sites across the EU and UK.

Here's the quick math: CBAM is expected to generate over $9 billion a year in revenues from all targeted sectors by 2030. If your non-EU production doesn't decarbonize, your European customers will defintely face higher costs, making your products less competitive against lower-carbon EU-produced or imported alternatives.

High capital investment required to meet internal 2030 greenhouse gas (GHG) reduction targets.

Huntsman Corporation is committed to its Horizon 2025 targets, which require substantial capital investment to meet its environmental goals. The company's goal is a 10% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions intensity and energy consumption intensity by the end of 2025, using a 2019 baseline. As of 2024, the company reported achieving 60.1% of the planned reduction, showing solid progress but still requiring a final push in 2025.

For the full fiscal year 2025, Huntsman Corporation is projecting total capital expenditures (CapEx) to be at the lower end of the $180 million to $190 million range. A significant portion of this is non-discretionary: approximately $150 million is allocated to critical maintenance, safety, and mandatory environmental spend. This mandatory spend is the capital required to maintain compliance and execute on the near-term GHG reduction projects.

The long-term aspiration is even more demanding, with a goal of carbon neutrality by 2050 for Scope 1 and 2 emissions. This means the current CapEx level is just the start of a multi-decade investment cycle.

Focus on circular economy principles, driving demand for chemical recycling technologies.

The shift to a circular economy is a major opportunity, not just a compliance issue. Huntsman Corporation is actively embracing a circular mindset, focusing on resource conservation and upcycling materials. This is particularly relevant in its Polyurethanes segment, where the market is pushing for chemical recycling solutions.

The demand is real: the European specialty chemicals market, where Huntsman Corporation is a key player, is seeing significant public and private investment in advanced recycling. For example, the EU's Innovation Fund granted €280 million in 2024 to seven chemical recycling projects, with a specific focus on polyurethanes and composites. This external funding validates the technology path.

Huntsman Corporation's strategy is to integrate these principles into its product portfolio:

• Develop bio-based and recycled raw materials.
• Manufacture high-performance polymers for lightweighting in cars and airplanes.
• Increase sales of bio-based polyols for insulation foams, a segment seeing a 33% year-on-year increase in some EU markets.

This focus is a critical competitive differentiator, allowing the company to capture premium pricing for lower-emission, circular products that meet major corporate sustainability commitments.

Water usage restrictions in drought-prone manufacturing regions (e.g., Texas, China).

Water scarcity is a growing operational risk, especially in regions critical to Huntsman Corporation's manufacturing footprint. The company has a near-term target of a 5% reduction in net water usage at its facilities located in water-stressed regions by the end of 2025.

The risk materialized in the US in May 2025, when a mandatory Stage 4 water restriction was implemented by the local water provider (WCID 1) in Texas, a key manufacturing and operational region. This mandate required a minimum 30% reduction in total water usage for the affected area. Such restrictions can directly impact chemical manufacturing, which is highly water-intensive for cooling and process use, forcing temporary production cuts or turnarounds.

In the Asia Pacific region, which accounted for approximately 20% of Huntsman Corporation's second quarter 2025 construction revenue, the risk remains high. While specific 2025 restrictions are localized, the general trend of water stress in major industrial hubs in China, coupled with a reported production turnaround at the Shanghai MDI unit in May 2025, highlights the ongoing vulnerability of operations to resource constraints and regulatory pressures.