Global MA Capital Undercurrents: Middle East Enters China, Europe Accelerates Exit — The Inevitable Eastward Shift of Industry Gravity
In August 2026, two developments in the global maleic anhydride (MA) industry mirrored each other from opposite ends of the world, jointly delineating a clear trajectory of industrial capital flows.
SABIC’s Entry: Middle Eastern Capital Anchors into Chinese MA Capacity
On July 16, Rongsheng Petrochemical disclosed that the company had signed a Project Development Agreement with Saudi Basic Industries Corporation (SABIC), under which SABIC is evaluating the acquisition of a 30% to 50% equity stake in Rongsheng New Materials (Zhoushan) Jintang New Materials Project. This project includes large-scale MA production units, meaning that one of the world’s largest Middle Eastern chemical conglomerates is directly anchoring into Chinese MA capacity through equity investment.
This is no ordinary corporate partnership. SABIC is a publicly listed company controlled by Saudi Aramco, backed by the world’s lowest-cost n-butane resources. Its decision to enter China’s MA industrial chain through equity rather than trade channels sends three signals:
First, the strategic importance of MA is rising. As a core intermediate linking BDO, biodegradable plastics, and unsaturated polyester resins, MA’s pivotal position in the downstream new materials landscape has been fully recognized by global chemical giants. SABIC’s entry signifies that this recognition has escalated from industry consensus to capital action.
Second, Middle Eastern upstream resources are extending downstream. Saudi Arabia possesses the world’s cheapest natural gas liquids (NGL) and n-butane resources, yet has long relied predominantly on raw material exports. By taking equity stakes in Chinese MA capacity, SABIC has achieved a chain extension from “raw material export” to “global distribution of finished products”—essentially a capitalized expression of vertical integration.
Third, Chinese MA capacity’s global pricing power is receiving capital endorsement. An international giant locking in capacity through equity rather than a straightforward procurement agreement indicates that what is valued is not merely the short-term supply-demand gap, but the long-term structural advantages of China’s MA industry within the global supply system.
Huntsman’s Exit: The Complete Collapse of European Production
In stark contrast to Middle Eastern capital flowing into China stands the accelerating withdrawal from European production.
Huntsman announced the closure of its maleic anhydride plant in Moers, Germany, with shutdown to be completed by quarter-end. Denis Varaksin, Managing Director of DYM Resources, stated bluntly in an interview with Lubes’n’Greases: “The entire industry is in crisis mode—everyone is struggling.” He pointed to two force majeure factors: first, the cutoff of Russian n-butane has stripped the German plant of its cost foundation—”producing MA requires cheap n-butane, which has become virtually unobtainable in Germany since Russian supplies ceased”; second, downstream demand across Europe’s lubricants, construction, and coatings sectors is simultaneously weakening.
After Huntsman’s departure, BASF and LANXESS remain as Europe’s sole major MA suppliers. But whether either will continue to maintain local production is also uncertain—the twin pressures of European energy costs and environmental compliance costs apply indiscriminately to all chemical products, and MA is no exception.
Between Entry and Exit: The Global MA Map Redrawn at Speed
| Dimension | Middle East / Asia | Europe |
|---|---|---|
| Capital Flow | SABIC acquires stake in Rongsheng, entering China | Huntsman shuts down plant, capital withdraws |
| Feedstock Advantage | Saudi NGL/n-butane at the world’s lowest cost | Russian n-butane supply severed, no alternative source |
| Downstream Demand | BDO / biodegradable plastics / robust exports | Construction, coatings, lubricants — all three markets weak |
| Capacity Trend | China adds 950,000 tonnes in 2026, total capacity approaching 6 million tonnes | Over 30% of capacity already or planned for withdrawal |
| Strategic Positioning | Global supply hub, attracting international capital | Shifting from production to consumption |
Two trends are converging: on one side, Middle Eastern capital, carrying feedstock cost advantages, is gravitating toward China’s production base; on the other, European capacity is undergoing systemic withdrawal driven by feedstock and energy disadvantages. This is not a cyclical fluctuation—it is the re-anchoring of the global chemical value chain. The center of gravity for MA production is irreversibly shifting from both sides of the Atlantic to the Asian continent.
Implications for Dayou New Energy
SABIC’s stake in Rongsheng and Huntsman’s exit from Europe carry profound, multi-layered implications for a moderately scaled, export-oriented MA producer like Dayou New Energy.
Competitive dimension: Once the SABIC-backed Rongsheng Zhoushan project comes online, it will enter the market with the dual advantages of Middle Eastern feedstock costs and global distribution channels, further raising the competitive threshold. Mid-sized and smaller producers will face competition not on price alone, but on overall supply chain efficiency.
Opportunity dimension: The 150,000-tonne gap left by European capacity withdrawal cannot be filled by BASF/LANXESS in the short term, and the export window for Chinese MA continues to widen. Dayou New Energy, having secured ISO, SGS, and FAMI-QS certifications and covering over 30 export destinations, is well positioned to capture a share of this gap.
Strategic dimension: Middle Eastern capital’s entry signals that a globalized pricing system for MA is taking shape. For companies already equipped with export capabilities, the core question has shifted from “can we export?” to “where do we position ourselves in the globalized supply chain?”—whether as a one-off supplier or as a stable node in global customers’ long-term supply chains. This choice will determine industry standing for the next five to ten years.
Data Sources: Rongsheng Petrochemical Announcement, Lubes’n’Greases (DYM Resources Interview), SCI (Zhuochuang Information), Longzhong Information Binzhou Dayou New Energy Development Co., Ltd. | 18 Years of Maleic Anhydride Excellence | www.dayounewenergy.com