Resilience is the Key Differentiator in Today’s Chemicals Landscape
Connecting cost-advantaged production, technology leadership, access to global markets, and disciplined capital allocation to upgrade portfolio.
At the World Petrochemical Conference 2026, Rainer Seele, President Global Chemicals at XRG, expanded on XRG’s strategy to upgrade its portfolio and strengthen its position for the industry’s next phase as resilience emerges as the defining imperative in a rapidly changing chemicals landscape.
Resilience as Decisive Factor for the Decade Ahead
Speaking at the World Petrochemical Conference 2026, Seele provided a clear outlook on what lies ahead for the chemicals industry: “If the last decade rewarded expansion, the next decade will reward resilience — and that has to be built before the cycle turns, not after.”
“The lesson is clear: resilience today is not only about cost — it is about having the right footprint, flexibility, and ability to continue serving customers under different conditions.”
Adding that the current cycle creates sharper differentiation across the chemicals industry, he said: “Five things define resilience: structural cost competitiveness, operational excellence, technology and product differentiation, disciplined capital allocation, and geographic and supply chain resilience.”
Current Cycle Favors Structurally Advantaged Businesses
Addressing the current industry climate, he said, “The industry has always been cyclical. What is different today is how quickly the gap is opening between businesses that are structurally advantaged and those that are not.”
“You can see that very clearly in margins, in cash generation, and in capital returns. Some companies are under pressure, even cutting their dividends, others remain highly cash-generative even in this environment.”
“The European market, for all the headlines, is not shrinking.”
Building a Portfolio that Wins the Next Decade
XRG’s approach “has been to invest through the cycle — with a very clear focus on asset quality, integration and resilience”
“Combining cost-advantaged production, leading technology platforms, and access to global markets creates businesses with structurally stronger margins and more resilience across cycles”.
Showcasing XRG’s portfolio spanning Borouge Group International, Covestro, and Fertiglobe, Seele noted that “the common thread is clear: we are building businesses that can perform across cycles, not just in favorable conditions. Because in this market, asset quality is not a nice-to-have — it is the defining factor.”
Europe Remains Integral to Global Chemicals Systems
Turning to Europe’s role in the chemicals industry, Seele stressed: “Europe remains a critical part of the global chemicals system — not just as a market, but as a center of innovation and R&D, home to key customer industries and a leader in advanced manufacturing.”
While noting that “there is no question Europe is under pressure today — energy costs, regulation, competitiveness in parts of the value chain”, he said, “it is important to distinguish between short-term pressure and long-term relevance.”
Discussing healthy demand across polyolefins, polycarbonate, and ammonia projected in the next five years (between 1.1% and 1.7%), he said: “The European market, for all the headlines, is not shrinking.”
“The future of chemicals is increasingly in advanced materials and specialty applications — where proximity to customers, technology, and application development matter much more than pure volume.”
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