Despite the significant uncertainty brought about by the current tariff issues, the industry still hopes to see more merger and acquisition transactions in fields such as orthopedics and interventional cardiology; major merger targets are expected to gradually shift towards publicly listed companies. Recently, the ranking of the top 100 global medical device companies was released. Based on the 2024 annual revenue, Medtronic ranked first with a revenue of $33 billion; Johnson & Johnson ranked second with a revenue of $30.4 billion; Abbott and Danaher followed closely with revenues of $27.9 billion and $24 billion, respectively. Other medical device companies in the top ten include Stryker, Siemens Healthineers, BD Medical, GE Healthcare, and Philips, all with revenues around $20 billion. In recent years, mergers and acquisitions in the medical device sector have driven the trend of "the strong getting stronger" among giant companies, benefiting from the ample cash flow of large enterprises. By acquiring and integrating a significant number of innovative technologies, medical device giants have further solidified their positions in certain specific fields. In 2024, Johnson & Johnson announced two major acquisitions, purchasing cardiovascular medical device company Shockwave for $13.1 billion and atrial shunt manufacturer V-Wave for $1.7 billion. Medtronic acquired Fortimedix Surgical, an innovative medical device company in the endoscopy field. BD Medical acquired the entire line of critical care products from Edwards Lifesciences for $4.2 billion in cash. Since 2025, the enthusiasm for mergers and acquisitions among major medical device companies has not waned. In January of this year, orthopedic giant Stryker announced its acquisition of venous thromboembolism (VTE) medical device company Inari Medical for a total cash consideration of $4.9 billion; Siemens Healthineers completed the acquisition of industrial simulation and analytics software provider Altair for $10 billion; Medtronic acquired part of the intellectual property used for the development of the next-generation PEEK intervertebral fusion devices from Nanovis, a nano-surface technology supplier; Medtronic also increased its investment in Contego Medical, a provider of blood revascularization therapy solutions. Despite the current tariff issues bringing significant uncertainty to the industry, there is still anticipation for more mergers and acquisitions. As the U.S. IPO market warms up, the motivation for private companies to be acquired may decrease, and the share prices of listed companies are far from reaching their peak. It is expected that major M&A targets will gradually shift towards listed companies in the future. Regarding the popular acquisition targets in the medical device industry, analysts believe that as more large medical device companies bet on the peripheral vascular market, leading companies in this field are worth paying attention to; surgical robots remain a hot sector that requires significant investment in research and development, and private companies urgently need the resources of large companies to survive; in addition, fields such as orthopedics and interventional cardiology will continue to be "strategic tracks." Johnson & Johnson expects to continue expanding its interventional cardiology product portfolio. Tim Schmid, the global chairman of Johnson & Johnson MedTech, stated last year that the company would triple its market size through acquisitions. Johnson & Johnson CEO Joaquin Duato has invested over $30 billion in mergers and acquisitions for the company's medical technology business within less than two years of taking office. In addition to the acquisition of Shockwave, Johnson & Johnson has also acquired artificial heart manufacturer Abiomed and heart implant developer Laminar in the past two years. Du Anqing previously stated that the company will continue to maintain its momentum in mergers and acquisitions, including small acquisitions and large deals, in order to achieve long-term growth. This is related to Johnson & Johnson's strong cash flow and balance sheet. Although the company mentioned in its recent quarterly financial report that its medical technology business might face a profit loss of $400 million in the fiscal year 2026 due to tariffs, industry insiders believe that Johnson & Johnson still has considerable flexibility to consider various types of transactions. "A company's abundant cash flow is the foundation for carrying out M&A transactions," Shen Yi, Danaher's Global Vice President and Head of Strategic Investment and M&A for the Asia-Pacific region, told the First Financial Daily. He also mentioned that Danaher's cash flow has exceeded the company's profits almost every quarter over the past decade. "In over 400 M&A transactions in its past history, Danaher has made all acquisitions except for one mega deal valued at $200 billion in cash, with 85% of its cash being used for acquisitions," said Shen Yi. Medtronic CEO Geoff Martha has indicated that the company will adopt a "top-down" precision strategy, focusing on small-scale acquisitions. Martha did not disclose specific targets, but he emphasized the importance of small acquisitions and portfolio management. Boston Scientific Corporation has also been quite active in mergers and acquisitions over the past year, benefiting from its relatively strong profit margins in recent years. Analysts predict that the company's PFA pulsed field ablation product, Farapulse, will drive continued profit growth in 2025. In 2024, Farapulse's annual revenue exceeded $1 billion.

Plastic resin production declined in March even as overall US chemical output edged upward, according to the American Chemistry Council’s (ACC) latest Weekly Chemistry and Economic Trends report. Tariffs also have had an impact on chemical output, according to the report. “Prior to the tariff announcements, there had been further progress on inflation,” the ACC said in its report. “Growth in consumer prices is now expected to accelerate in 2025 to a 3.1% pace before easing to a 2.7% pace in 2026.” Tariffs introduced in early April, combined with retaliatory moves from China and Canada, are casting a long shadow over the second quarter, according to the report. Although a recession isn’t currently forecasted, the risk has escalated significantly. ACC said it is "monitoring the tariffs situation and continuing to analyze it as the circumstances develop." The ACC report, released April 18, indicated that oil prices moved higher compared to the previous week as new sanctions were put in place targeting Chinese imports of Iranian oil, while Iraq agreed to cut its oil imports. The ACC’s latest Survey of Economic Forecasters shows that nearly all economic indicators have weakened since March. Industrial production, which fell 0.3% in 2024, is projected to grow by just 0.9% in 2025 and 1.0% in 2026 — sobering figures for plastics producers tied closely to US manufacturing output. Housing starts fall The ACC reported broader economic unrest that includes a sharp drop in housing starts, weakening manufacturing sentiment, and growing uncertainty that is tied to newly imposed tariffs on US imports. Industrial production in the US slipped 0.3% in March after three consecutive monthly gains, with the decline largely driven by a sharp drop in utility output amid unseasonably warm weather. While the broader industrial sector faltered, manufacturing and mining managed modest gains ahead of the widely anticipated tariff announcements on April 2. Overall for plastics processors and chemical manufacturers, the picture was mixed. Within manufacturing, aerospace, motor vehicles, electronics, and apparel posted strong output increases. However, these were undercut by notable declines in wood products, petroleum refining, and textiles. Industrial production trends On a year-over-year basis, overall industrial production rose 1.3%, though capacity utilization edged down 0.4 points to 77.8% — exactly where it stood one year ago. Total industrial capacity has grown by 1.3% over that same period. Chemical output continued to climb, with the Federal Reserve’s index for the sector rising 0.2% in March to reach its highest level since July 2018. Gains in agricultural chemicals, coatings, synthetic rubber, manufactured fibers, and other specialties outweighed declines in plastic resins, inorganic chemicals, and consumer products. Organic chemicals held steady. Year-over-year, chemical production was up 5.8%, and capacity utilization for the sector rose to 83.1%. However, it's important to note that capacity figures now reflect revised methodology from the Fed, making comparisons with earlier data inconsistent. Despite the sector's resilience, regional indicators point to softening ahead. Manufacturing conditions in New York and Philadelphia contracted further in April, with the Empire State’s headline index remaining in negative territory and the Philadelphia Fed’s measure plunging to a two-year low of -26.4. Both regions reported falling new orders and growing concern about future conditions. Housing data spark worry Housing data also added to concerns. March housing starts dropped 11.4%, driven by a 14.2% decline in single-family construction — a sector with significant implications for demand in plastics-intensive applications like piping, insulation, and exterior cladding. Regional weakness was concentrated in the South and West, although the Northeast and Midwest posted gains. Building permits, a leading indicator of future construction activity, rose 1.6%, suggesting some forward momentum, but the gain was fueled by multifamily projects. Single-family permits continued to decline. Consumer activity provided a rare bright spot in March, with retail and food service sales jumping 1.4%, according to the report. Analysts attribute this surge to consumers pulling forward purchases in anticipation of higher prices due to tariffs. Auto dealers saw sales rise more than 5%, while restaurants, sporting goods stores, and home improvement retailers also posted solid gains. Compared to a year ago, the ACC noted that retail sales were up 4.6%, despite ongoing weakness in furniture and home furnishings. Business inventories remained on the rise, climbing 0.2% in February. Sales, however, rose even faster — up 1.2% — causing the inventories-to-sales ratio to dip slightly from 1.36 to 1.35. For plastics suppliers and converters managing raw material and finished goods inventories, this shift may offer some temporary breathing room. Trade pressures continued to evolve in March, with import prices slipping 0.1% ahead of the tariff hikes. Fuel prices led the decline, while nonfuel imports saw a slight uptick. Export prices remained flat for the month, but have gained 2.4% over the past year. In the chemical sector specifically, import prices have now fallen for three straight months, down 1.3% year-over-year, while export prices rose 3.0% in the same timeframe. Consumer spending to moderate Consumer spending is also expected to moderate, while business investment is likely to slow to 1.7% growth in both 2025 and 2026, according to the ACC. Housing starts, another plastics-relevant market, are forecast to remain flat through 2025 before inching up slightly in 2026. Vehicle sales — a major demand driver for plastics — are expected to slide to 15.5 million units in 2025 before edging up again the following year. Labor market dynamics are shifting as well. The unemployment rate is projected to rise to 4.3% in 2025 and 4.5% in 2026 as the economy softens and job growth slows, the report indicated. Inflation, which had shown signs of easing, is now expected to accelerate again due to cost pressures stemming from tariffs, with consumer prices forecast to rise 3.1% in 2025 before cooling to 2.7% in 2026. Commodities and energy markets continue to react to global developments. Oil prices increased on news of sanctions targeting Chinese imports of Iranian oil and Iraq’s pledge to cut exports. US natural gas prices, by contrast, declined due to warmer temperatures. The oil and gas rig count dropped by eight to 577. For the plastics and chemical sectors, volatility in energy prices — and feedstock costs — remains a key concern. Railcar data provided a modest silver lining: Chemical loadings rose 2.3% year-over-year on a 13-week moving average and have increased in eight of the last 13 weeks. This could indicate that, at least for now, demand for chemical intermediates and finished plastics continues to hold up. As the second quarter unfolds under the weight of trade uncertainty and shifting consumer dynamics, plastics producers and processors are navigating a market marked by resilience in some segments and emerging risk in others. Strategic planning, inventory management, and close tracking of regulatory developments will be critical in weathering what is shaping up to be a volatile year.

ThermoFab, a supplier of heavy gauge plastic enclosures and related single use components for the medtech and other regulated industries, reports that it has acquired key reaction injection molding (RIM) assets from Mearthane Products Corp. All RIM components will be manufactured in ThermoFab’s USMCA-compliant Mexicali facility, allowing for efficient delivery throughout North America with no tariffs. This strategic investment significantly enhances ThermoFab’s RIM molding capacity, improving production efficiency and flexibility in manufacturing complex, high-performance enclosures, the company said in the announcement. Mearthane Products Corp., based in Apex, NC, is specialized in the development and manufacture of advanced polyurethane products. Supporting production of intricate, lightweight molded parts The newly acquired assets include multiple custom-built hydraulic down-stroke molding presses that can accommodate component sizes from 36 x 48 to 60 x 78 inches, with pressures up to 8,000 PSI. The machines are equipped with programmable logic controllers (PLCs), precision mixing heads, and advanced hydraulic systems, enabling the production of impact-resistant large, intricate, and lightweight molded components. The acquisition also includes advanced RIM dispensing systems with dual pressurized tank assemblies, high-performance temperature controllers, and integrated mixing technologies. The systems enhance material consistency, reduce cycle times, and allow for the processing of a range of polyurethane formulations — including high-impact structural foams and elastomers — for medical, industrial, and defense applications, said ThermoFab. The benefits of ThermoFab’s expanded RIM capabilities include: Expanded press sizes that accommodate larger and more intricate designs, suitable for medical device enclosures and robotics components. Enhanced material versatility, as high-performance polyurethane formulations provide superior strength, lightweight properties, and impact resistance. Faster cycle times and optimized material flow, resulting in improved lead times and reduced production costs. Seamless integration of RIM, thermoforming, injection molding, and CNC machining under one roof. Tariff-free production in new Mexican facility The integration of these assets into its new 50,000-square-foot Mexicali facility enables cost-effective nearshore manufacturing with enhanced capabilities and faster turnaround times, the company said. All RIM components produced in Mexicali are fully USMCA-compliant and exempt from tariffs, offering a significant advantage for North American customers, added ThermoFab. Applications of the technology cited by the company include surgical robotics, organ transport devices, genetic sequencing devices, people scanning technologies, autonomous robots, and information systems. ThermoFab said that its capabilities encompass the entire production lifecycle, from design and initial prototyping to full-scale production and assembly. Shirley, MA–based ThermoFab is a subsidiary of the Producto Group, a portfolio company of Culper Capital Partners. A contract manufacturer and supplier of precision tooling and components for the life sciences, semiconductor, aerospace, and defense sectors, Producto acquired ThermoFab in 2022.

Amcor has completed construction of its advanced coating facility in Selangor, Malaysia, less than a year after it opened a new innovation center in Europe and announced a merger with Berry Global Group Inc. The advanced coating facility marks a significant milestone for the company and the region, as the company noted it is the first in Asia to feature state-of-the-art air knife coating technology dedicated to healthcare packaging. The facility is an expansion of Amcor’s existing healthcare packaging plant in Selangor, creating an integrated manufacturing campus. With the addition, Amcor said it becomes the first company in Asia capable of producing both top and bottom substrates for medical device packaging at a single site. Company officials say the development enhances supply chain resilience and shortens lead times for customers across the region, while also setting a new benchmark for production standards. Outfitted with advanced systems including water-based coating, online inspection, and the new air knife technology, the facility is designed for precision and efficiency. The air knife system uses high-speed air streams to apply coatings evenly, improving product consistency and reducing material waste. Commitment to customers Chris Kenneally, president of Amcor Flexibles Asia Pacific, said the company’s investment in this new facility reflects its unwavering commitment to support customers across the Asia Pacific region. “By introducing advanced coating technology and boosting local production capacity, we are better positioned to meet the growing regional demand for sterile, reliable packaging and to offer our customers greater flexibility and security,” he said. Virginie Maes, vice president of global healthcare for Amcor, pointed out that by producing its industry-leading global product platform locally, it brings the company closer to its customers, enhancing supply security and flexibility. “By investing in advanced coating technologies and expanding our regional capabilities, we are not only addressing the growing demand for high-performance healthcare packaging but also reinforcing our promise to deliver a consistent and innovative value proposition to our customers worldwide,” she said.  This new facility is part of Amcor's broader commitment to expanding its healthcare capabilities in the Asia Pacific region, according to the company, which noted recent initiatives include the acquisition of healthcare packaging company MDK in China, the establishment of a grid lacquer paper unit in India, and the construction of a co-extrusion blown film and printing plant in Singapore. European innovation center open Amcor in 2024 opened a new Amcor Innovation Center Europe in Ghent, Belgium, which joins existing centers in the US, South America, and Asia Pacific markets. The facility adds approximately 6,000 square meters to the Amcor Ghent campus to include meeting space, offices, an R&D laboratory/development area, and warehousing space. The facility includes a material science center, consumer engagement center, eCommerce lab, and packaging and recycling test center.  Amcor has pledged to develop all its packaging to be recyclable, compostable, or reusable by 2025 and to increase its use of recycled materials significantly. In line with that commitment, the new facility is designed and built according to BREEAM sustainability certification standards. The new facility represents a "significant investment toward more sustainable, circular, and innovative packaging," according to Michael Zacka, president of Amcor Flexibles Europe, Middle East, and Africa. It includes multiple technologies and equipment spanning R&D, film extrusion processes, and packaging/filling operations, and services that follow the company's collaborative approach, called Catalyst, encompassing broader market, consumer, and sustainability needs. Merger nears close Amcor continues to move forward with its merger with Berry Global.  Last month, the companies received US antitrust clearance for the combination. As a result, the $8.4 million deal remains on track to close in the middle of calendar year 2025. The all-stock acquisition of Berry by Amcor is expected to bring $650 million in annual cost benefits and other synergies in three years. The new business will leverage more than 400 production facilities to serve customers in more than 140 countries.

The Liberty Justice Center is suing the Trump administration’s authority to unilaterally issue across-the-board tariffs without congressional approval on behalf of five owner-operated businesses, including Genova Pipe, a Salt Lake City–based extruder of ABS pipe. The company uses imported resin from South Korea and Taiwan, and the tariffs have increased raw material costs at its Washington state factory, which primarily exports to Canada. Misuse of emergency act, plaintiffs claim Filed on April 14 in the US Court of International Trade, the lawsuit challenges the use of the International Emergency Economic Powers Act (IEEPA) to justify the “Liberation Day” tariffs announced by Trump on April 2, and then suddenly paused for 90 days a few days later, as well as tariffs on Mexico, Canada, and China. “Under that law, the president may invoke emergency economic powers only after declaring a national emergency in response to an ‘unusual and extraordinary threat’ to national security, foreign policy, or the US economy originating outside of the United States,” explains a press release on the Liberty Justice Center website. The lawsuit argues that the justification — a trade deficit in goods — is neither an emergency nor an unusual or extraordinary threat. “Trade deficits have existed for decades, and do not constitute a national emergency or threat to security. Moreover, the administration imposed tariffs even on countries with which the US does not have a trade deficit, further undermining the administration’s justification,” notes the release. The IEEPA does not authorize the president to impose across-the-board tariffs — it does not even authorize tariffs at all — and even if the IEEPA did extend such power to the president, that would be an unconstitutional delegation of Congress’s power to impose tariffs, according to the center. No domestic sourcing alternatives available to Genova Pipe The tariffs are devastating small businesses across the country, according to the Liberty Justice Center. Genova Pipe, which is a party to the lawsuit, operates seven manufacturing facilities across the United States. “With limited domestic sources, we rely on imports to meet our production needs,” said Andrew Reese, president of Genova Pipe, in a prepared statement. “The newly imposed tariffs are increasing our raw material costs and hindering our ability to compete in the export market.”  Genova Pipe cannot domestically source the raw materials, including plastic resins, and manufacturing equipment it needs to produce its American-made plastic pipe, conduits, and fittings, the company said in the filing. There are only two US producers of ABS resin suitable for the products that Genova makes, and one of them is shutting down and the other is unavailable to supply the company. “With over 75% of global ABS resin production concentrated in Northeast Asia, Genova Pipe is dependent on imports to continue its manufacturing operations,” said the filing. “The tariffs will directly increase the cost of raw materials, manufacturing equipment, and resale goods imported from abroad by Genova Pipe. And its Canadian customers may opt for local suppliers who are not subject to the tariffs, potentially resulting in a large loss of revenue. The other businesses taking part in the suit are VOS Selections, a New York–based importer and distributor of alcoholic beverages; FishUSA, an e-tailer specialized in fishing tackle and related gear; MicroKits, a maker of educational electronic kits and musical instruments in Charlottesville, VA; and Terry Precision Cycling, a Vermont-based brand of women’s cycling apparel.

ExxonMobil has teamed up with Malpack, a Canadian packaging producer specializing in film extrusion, to develop a high-tenacity, power pre-stretch film using ExxonMobil’s newly launched Signature Polymers portfolio. Integration challenge ExxonMobil and Malpack faced the challenge of integrating ExxonMobil’s performance polymers into Malpack’s existing formulations to enhance film performance. The companies said the collaboration led to the development of a new stretch film with high tenacity, strong holding force, and reliable load stability across all pre-stretch levels. A key component of the formulation is Exceed S 1716 metallocene polyethylene (PE), part of ExxonMobil’s Signature Polymers portfolio. Used as a discrete layer within a nine-layer film structure, the resin allowed Malpack to streamline production by eliminating the need for blending, according to the companies. It also delivered strong processing performance on wide, 4.5-meter extrusion lines. According to the companies, Exceed S 1716 maintained high tenacity while offering excellent processability. Compared to Exceed m 3518 metallocene PE processed under the same conditions, the new resin showed only minimal impact on head pressure, motor load, and melt temperature — contributing to efficient and stable film production. The resulting stretch film offers a combination of performance and efficiency designed for demanding packaging applications, according to the companies. Key benefits include: Consistent load stability across all pre-stretch levels, enhancing pallet containment and transport safety; efficient processing on wide-width lines, with stable throughput, reduced motor load, and tight gauge control; high toughness and downgauging potential, allowing for thinner films that maintain strength while using less material; improved clarity and puncture resistance, which aids barcode readability, product presentation, and protection for sharp or irregular loads. ExxonMobil’s Exceed Flow m 1716 polyethylene delivers a combination of high flow and high tenacity — two characteristics typically considered at odds, the companies said, adding that this balance enabled faster line speeds, lower extrusion pressure, and reduced motor load compared with traditional high-tenacity resins. The companies said the result was smoother cast film processing and consistent extrusion performance, opening the door to downgauging opportunities without compromising load stability or holding force — key metrics for stretch film quality. Pushing limits of pre-stretch film design Malpack, which brings more than four decades of experience in film manufacturing, leveraged the Signature Polymers platform to push the limits of pre-stretch film design. The company said the project illustrates how tailored material selection and close collaboration across the value chain can yield tangible gains in both performance and production economics. ExxonMobil said it introduced its Signature Polymers brand to unify its polyolefin offerings under a single identity, aiming to simplify portfolio navigation and foster closer partnerships across the supply chain.

Recently, Abbott released its Q1 2025 earnings report, with total revenue of $10.36 billion, a year-on-year increase of 4.0%. However, behind this seemingly steady report lie hidden concerns. The company's CEO, Robert Ford, warned investors during the earnings call that the U.S. government's additional tariffs on China would result in a loss of "hundreds of millions of dollars" for the company throughout the year, with the medical device business being the hardest hit. This statement confirms Barclays Bank's previous analysis - although Abbott is relatively less affected among top medical device companies, the field of medical devices still faces dual pressures of supply chain restructuring and rising costs.   01 leads the way, translates to "leads the way" or "takes the lead" in this context. Diagnostic services lag behind Abbott delivered a report card of "steady growth + improved profitability" in the first quarter of 2025. Total revenue: $10.36 billion, an increase of 4.0% year-over-year; excluding the COVID-19 testing business, organic growth was as high as 8.3%. Core Business Performance: Medical Devices: Revenue of $4.895 billion (accounting for 47% of total revenue), a year-over-year increase of 9.9%, with organic growth of 12.6%. Notable contributions from sub-segments such as Diabetes Management (+21.6%) and Structural Heart Disease. Nutrition business: Revenue of $2.146 billion, global organic growth driven by adult nutrition products Ensure® and Glucerna® by 8.7%. Diagnostic business: Revenue was $2.054 billion, a year-over-year decrease of 7.2%. Excluding COVID-19 testing revenue (which amounted to only $84 million), the core laboratory business barely achieved a 0.5% growth. Significant regional differentiation: The U.S. market grew by 8.4%, far exceeding the 1.2% growth of international markets. Particularly in the medical device sector, the growth rate in the U.S. (such as +27.1% for diabetes care business) was significantly higher than the global average. Profitability Optimization: Gross margin increased to 52.8%, and adjusted net profit grew by 10.9% year-over-year to reach $1.919 billion. This performance was driven by effective cost management and strong sales of high-margin products, such as the FreeStyle Libre® continuous glucose monitoring system.   02 Tariff Impact: Medical devices become a "disaster zone." Although Abbott's financial report performance is impressive, the "approaching tariff threat" it faces cannot be ignored, and Ford clearly outlined the specific impact pathway of this challenge. In the Sino-US tariff game, latest developments show that the Trump administration is planning to impose a 245% tariff on China, with medical devices not being exempted. Given that Abbott's revenues are about 45% reliant on the medical device sector, this means that its supply chain and export costs in the Chinese market will face significant pressure. At the same time, import restrictions implemented by Canada and Mexico, along with tariffs on steel and aluminum policies internationally that have created regional retaliatory tariffs, have further driven up the cost of raw materials. Due to the long production cycle of medical equipment and the fact that contract prices are often locked in, companies cannot resolve impacts in the short term by raising prices or transferring costs. From a potential risk perspective, if the tariff costs are entirely borne by the company, Abbott's medical device business, which currently has a gross margin of about 60%, may face the risk of decline; emerging markets such as Asia and Latin America, which rely on low-price strategies to open up markets, may also lose competitiveness due to rising costs.   03 5 Invest $500 million to build a factory in the U.S., what's the goal? To withstand the impact of the tariff storm, Abbott has unveiled two core strategies. Firstly, the construction of a distributed production network is carried out with 90 production bases to create an "anti-risk moat". CEO Ford uses FreeStyle Libre® as an example to explain the layout logic, stating that 2 factories in the United States serve domestic demand, and 4 other bases cover the global market. If all production capacity were concentrated in Southeast Asia or Europe, the risk would be uncontrollable. The strategy reduces reliance on a single supply chain through localized production, such as specializing in glucose monitoring sensors at the Irish factory and focusing on regional demand at the Chinese facility. Simultaneously, it implements redundancy by backing up critical components across multiple regions to ensure stable supply amid sudden tariffs or geopolitical conflicts. Secondly, to promote the expansion of production in the United States, Abbott announced two key investments, investing $500 million in the expansion of factories in Illinois and Texas, adding 300 new jobs, focusing on enhancing the research and development and production capacity of blood transfusion equipment. The main goal is to reduce dependence on imports through local production and strive for policy preferences brought by the "Made in USA" label. In the short term, this plan can reduce reliance on imported components and directly avoid cost pressures brought by Sino - US tariffs; in the long term, it focuses on the research and development and production of high - value - added products such as cardiovascular devices, consolidating its technological barriers and industry leadership in the high - end medical device field. However, the production cost in the United States is significantly higher than that in Asian regions, which may weaken the price competitiveness of products. Moreover, the construction cycle of the factory is relatively long, and it will not be put into operation until the end of 2025. In the short term, tariff pressure still needs to be borne. In terms of short-term buffer measures, Abbott opted to increase inventory of key raw materials, but Ford also warned that "hoarding is not a sustainable solution," while jointly lobbying with industry group AdvaMed to seek tariff exemptions for medical devices, despite slim chances of success.   04 No one was spared. Leading companies collectively under pressure Amid the ongoing impact of the tariff storm, leading companies in the global medical equipment sector are all affected, collectively bearing immense pressure. Johnson & Johnson (JNJ.US) warned in its financial report that by 2026, its tariff losses will reach $400 million, with the medical device division being hit the hardest. The main issues Johnson & Johnson faces are twofold: first, it is difficult to adjust the supply chain, as medical equipment transportation contracts have already locked in prices, making it hard to flexibly adjust costs in response to tariff changes in the short term; second, geopolitical risks are compounded, with Sino-American tariff conflicts being the primary source of losses, while retaliatory tariffs from Mexico and Canada add further pressure. In terms of strategy, Johnson & Johnson and Abbott show clear differences: Johnson & Johnson relies more on “acquisition + restructuring” to optimize its business (for example, by acquiring Abiomed to strengthen its cardiovascular sector), but it has relatively fewer proactive measures in response to tariff impacts; Abbott, on the other hand, places greater emphasis on enhancing the flexibility of its production network, reducing risks by diversifying its capacity layout. From an industry-wide perspective, this phenomenon conveys two important signals: for companies that struggle to pass on tariff costs to downstream entities, long-term profit margins may continue to erode; meanwhile, possessing a globalized supply chain layout and flexible adjustment capabilities is increasingly becoming a critical survival skill for leading enterprises to navigate geopolitical risks. In response to tariff shocks, Abbott has built a distributed network with 90 production bases, such as the decentralized production of FreeStyle Libre across 6 locations to reduce risks. At the same time, it has invested $500 million to expand its domestic U.S. factories, attempting to hedge tariffs through local production. However, high domestic costs and long construction cycles still put pressure on it in the short term. Within the industry, Chinese companies like Mindray are capturing market share with their local supply chains, accelerating the restructuring of the global medical device supply chain. As Ford said, tariffs are driving the medical industry towards Globalization 2.0, and companies need to find a new balance between technological barriers and cost control.

In April 2025, two of the world's leading medical device giants, Johnson & Johnson and Abbott, announced their financial reports for the first quarter. Although both companies revealed the impact of tariffs on their finances in the reports, they still maintained growth and demonstrated different coping strategies. The performance of these companies not only reflects the complexity of the global medical device industry but also shows the adaptability of multinational companies in the face of external pressures such as the China-U.S. trade war.   01 Johnson & Johnson: Steady Growth Tariff pressure resulted in a loss of 400 million dollars. Johnson & Johnson's Q1 2025 earnings report shows the company's total revenue reached $21.9 billion, a year-over-year increase of 2.4%. The performance of the medical technology division was particularly impressive, with revenue reaching $8.02 billion, a year-over-year increase of 2.5%. Among this, the cardiovascular business stood out, with sales reaching $2.1 billion, a year-over-year increase of 16.5%. However, despite the strong performance, Johnson & Johnson still faces significant tariff challenges and is expected to suffer a financial loss of $400 million in 2025 as a result.   Joseph Wolk, Chief Financial Officer of Johnson & Johnson, stated that this loss was mainly due to the high tariffs imposed by the U.S. on Chinese medical device exports and China's retaliatory tariffs on American products. Johnson & Johnson is mitigating this impact through price adjustments and cost pass-throughs, but the adjustment space is limited due to existing medical device contracts. Nevertheless, Johnson & Johnson has maintained its financial outlook for 2025 and plans to reduce future tariff impacts by restructuring its operations and optimizing production bases.   02 Abbott: Global Layout and Short-term Response Strategies Similar to Johnson & Johnson, Abbott also announced impressive financial results in the first quarter of 2025. The company's overall revenue was $10.36 billion, a year-on-year increase of 4%. Medical device sales were $4.9 billion, a year-on-year increase of 9.9%. Nevertheless, Abbott's CEO, Robert Ford, clearly stated in the earnings call that he expects tariffs to have a "hundreds of millions of dollars" negative impact on the company, mainly in the U.S. and Chinese markets. Ford further pointed out that Abbott's estimated tariff costs are about $300 million, close to Johnson & Johnson's estimated $400 million. Unlike Johnson & Johnson, Abbott has adopted a more proactive regional production layout and short-term relief plans. The company announced it will invest $500 million in Illinois and Texas to expand its manufacturing and R&D base for blood and plasma screening equipment. This investment not only helps Abbott diversify risks and mitigate the impact of tariffs on production, but also demonstrates the company's balanced approach between globalization and localization.   03 Tariff Impact: Global Medical Devices Challenges and Opportunities in the Industry As Sino-US trade friction intensifies, the global medical device industry is facing unprecedented challenges. The tariffs imposed by the United States on Chinese medical devices, particularly in high-end equipment such as CT and MRI imaging devices, have led to a significant increase in procurement costs. Additionally, tariffs on key components such as CT tubes and superconducting magnets have put considerable pressure on companies with high import reliance. For Chinese medical device companies that rely on the US market, tariffs have exacerbated their market challenges. Meanwhile, domestic medical device companies see an opportunity to catch up. Companies like Mindray and United Imaging have increased their R&D investments, driving technological innovation, and have gradually replaced some of the high-end equipment market share. For international giants, maintaining competitiveness, reducing costs, will be the core tasks in the coming years amid this global trade war.   04 Coping Strategy: Dual Layout of Globalization and Localization Facing tariff pressure, Johnson & Johnson and Abbott have adopted different but complementary strategies. Johnson & Johnson focuses on mitigating the rise in costs through price adjustments, optimizing production bases, and business restructuring, maintaining competitiveness in the global market. Abbott, on the other hand, has strengthened the global supply chain's risk resistance through a distributed production network and regional layout. The company has not only increased investment in the United States but also actively promoted the expansion of global production bases to cope with long-term tariff policy changes. Moreover, both Johnson & Johnson and Abbott are actively cooperating with industry organizations to seek tariff exemptions, but they remain cautious about the likelihood of success. Both companies have stated that once tariffs are implemented, they are difficult to retract. This historical experience has prompted them to place greater emphasis on adjusting their long-term strategies.   05 Conclusion: Globalization Challenges and Opportunities for Multinational Enterprises Overall, Johnson & Johnson and Abbott achieved steady growth in their Q1 financial reports despite the impact of tariffs. Through different coping strategies, the two giants demonstrated how they adjusted their strategies in the complex environment of globalization and localization to mitigate the negative effects of tariffs. Although tariff pressure poses challenges for global medical device companies in the short term, it also creates new opportunities for localized production, technological innovation, and supply chain optimization. As the China-US trade friction continues to develop, multinational companies will have to constantly adjust their strategies to maintain a competitive edge in the global market. For domestic companies, this is a good opportunity to accelerate innovation and promote domestic alternatives.

On April 16, 2025, Illumina announced through an internal email a global workforce reduction of approximately 3.5% to advance its $100 million cost-cutting target. Based on the employee count of 8,970 at the end of 2024, this layoff affects over 300 people. Illumina's layoffs are not an isolated incident, but part of a series of adjustments made in recent years. Since 2022, the company has implemented several layoff plans. In 2022, Inmune announced a large-scale layoff, reducing approximately 500 employees globally, accounting for 5% of its total workforce. This layoff is seen as an important measure for Inmune to cope with cost pressures and changes in the industry. 2023 Multiple rounds of layoffs: Due to continued optimization of personnel structure at Meina, the specific number of layoffs has not been disclosed, but it involves multiple departments and regions. In 2024, California Layoffs: Illumina terminated the positions of approximately 50 employees in California, signaling further adjustments in its U.S. domestic market. In February 2025, 96 employees were laid off, mainly at the headquarters in San Diego, indicating that Illumina is still continuously optimizing its internal resource allocation. This round of layoffs is Illumina's second layoff action after the major layoffs in February this year, but details such as specific layoff regions have not been disclosed yet. It remains unclear whether the layoffs are related to the business reduction caused by being included in the unreliable entity list by China's Ministry of Commerce. On April 15, Jacob Thaysen, CEO of Illumina, stated during an interview at the 2025 Abu Dhabi Global Health Week that China remains a very significant market force, and they are exploring ways to bring gene sequencers back to China. Jacob Thaysen emphasized in the above interview, "Our products are currently on the unreliable list, which means we cannot sell instruments to China. However, we will continue to provide consumables support to all our Chinese customers, especially Chinese patients who need high-quality sequencing to receive the right treatment." Due to its long-term monopoly in the global gene sequencing market, Illumina is also known as the "Google" of the genetic technology industry. Public information shows that Illumina was founded in 1998 and is headquartered in the United States. As a leading company in the global gene sequencing field, its business covers oncology, genetics and infectious diseases, reproductive health, and other areas, with core products including high-throughput gene sequencers and gene chips. Since entering the Chinese market in 2005, Illumina has held a significant position in China's gene sequencing instrument market. According to financial report data, in 2024, Illumina's revenue in China reached 2.2 billion yuan, with instrument revenue accounting for 20%-30% of the total. On February 4, China's Ministry of Commerce announced in a statement that Illumina was included in the "Unreliable Entities List" due to its violation of normal market transaction principles, interruption of normal transactions with Chinese enterprises, and discriminatory measures against Chinese enterprises, which severely harmed the legitimate rights and interests of Chinese enterprises. It was also revealed by industry insiders that Meina suddenly interrupted cooperation with several Chinese biopharmaceutical companies under the pretext of "supply chain security review," even seizing already paid orders, which caused dozens of domestic cancer early screening and genetic disease research projects to be forced to halt. The day after being included in the list, Illumina issued a statement saying that the company was "conducting a detailed assessment of the impact of the relevant matters and actively seeking solutions," while emphasizing that it "always adheres to market-oriented and rule-of-law principles in its global operations." On March 4, the Chinese Ministry of Commerce announced the inclusion of the American company Illumina on the unreliable entity list and prohibited it from exporting gene sequencing instruments to China. This decision takes effect immediately upon announcement. On March 11, Illumina responded to the aforementioned announcement, stating that it fully respects the decision of China's Ministry of Commerce and will continue to operate globally in accordance with market-oriented and legal principles, strictly complying with the laws and regulations of all countries or regions where it operates, including China. In addition, Ankur Dhingra, the Chief Financial Officer of Mena, stated, "Our new guidance for fiscal year 2025 indicates that revenue contributions from China will be relatively limited, and we expect the current macro trends to persist." In addition, Inmune has revealed that the company is developing an incremental cost reduction plan of about $100 million for the fiscal year 2025. These savings will help mitigate the impact of various potential scenarios related to the decline in revenue and associated operating income from its Greater China business. On April 8, the 91st China International Medical Equipment Fair (CMEF) grandly opened at the National Exhibition and Convention Center (Shanghai), but Illumina did not attend the exhibition. It is widely believed that Illumina's absence may be related to its inclusion on the "Unreliable Entity List." On the other hand, the industry generally believes that the ban on Illumina's export of gene sequencers to China is expected to accelerate the domestication process of China's gene sequencer market. A pharmaceutical researcher told the media in an interview that leading domestic companies such as MGI Tech and Genemind Biotech will benefit from this. For BGI Genomics, the ban on high-end products imported from the United States makes it easier for domestic equipment to enter the market, boosting performance recovery, while also buying time for the research and development of a new generation of high-throughput sequencing devices. According to media reports, in fact, some customers of Illumina have begun to switch to choose domestic options. Peking Union Medical College Hospital announced in April 2025 that it would suspend its collaboration with Illumina on a rare disease genomic program and instead adopt the BGI Genomics DNBSEQ-T20 sequencing platform. The contraction of Illumina's business in the Chinese market had already become evident in previous years. According to financial reports, Illumina's market share in China's gene sequencing instrument and consumables market, calculated by annual revenue, has declined from 64.50% in 2021 to 54.2% in 2023. Additionally, according to data from CIC, in 2023, MGI's market share in China has reached 47.3%, breaking Illumina's domestic monopoly.

IMAGE COURTESY OF POLYVEL New softening agents developed by masterbatch supplier Polyvel are designed for the efficient and cost-effective production of nonwoven polypropylene (PP) products with extra-soft surfaces. Small doses of the additives achieve effects ranging from simple, smooth surfaces to so-called “supersoft” products with an ultra-soft feel reminiscent of natural silk, according to Polyvel. Soft to the touch, pleasing to the eye The process aids are suitable for all products touting soft-touch tactile properties and aesthetic appeal. In addition to hygienic textiles, applications include the automotive, furniture, medical technology, and construction sectors. Polyvel also can accommodate customer-specific applications. Extensive tests by neutral certification and testing laboratories confirm that the additives are safe for use in products that come in contact with human skin, such as diapers, as well as food, said the company. The processing aids are PFAS-free and do not contain any chemicals named on the Substance of Very High Concern list at the European Chemicals Agency (ECHA). Alternatives to conventional plasticizers During extrusion with the help of additive masterbatches such as Polyvel NH-P01, dosages as low as 0.5% are sufficient to achieve elevated levels of softness in PP nonwoven surfaces. The additives can replace conventional plasticizers and the chemicals usually associated with them. The process aids are introduced during the production process, preventing the fibers’ fabric gels from forming a brittle surface with a rough feel after extrusion. The dissolved additive in the PP nonwoven permanently migrates to the fiber’s surface. A distributor of specialty additive masterbatches and custom compounds in thermoplastic applications, Polyvel offers a wide-ranging product portfolio. It said that customers have been focusing, in particular, on additives for processing in-demand bioplastics to add specific technical and functional properties to applications. Polyvel is based near Hamburg, Germany.

01 Abbott CEO: Tariff shock could reach hundreds of millions of dollars. Yesterday (April 16, 2025), global medical device giant Abbott revealed in a earnings call that the company expects the tariff policies this year to impact the company by “hundreds of millions of dollars.” Although Abbott did not provide a breakdown of the tariff costs, according to Vijay Kumar, an analyst at the well-known global investment bank Evercore ISI, it is estimated that tariffs will have a negative impact of approximately $300 million (equivalent to about 2.2 billion yuan) on Abbott this year. Among them, the U.S. and Chinese markets will be the main pressure points. Reuters reported that China is the primary source of raw materials for the pharmaceutical and medical device industries. It is worth noting that just one day before Abbott disclosed this information, a senior executive at Johnson & Johnson also publicly stated that the increase in global tariffs would exacerbate the company's financial losses by $400 million (approximately 3 billion RMB), with 70% of the tariff costs stemming from medical device exports to China.   02 "Tackle challenges with a two-pronged approach" 3.65 billion yuan to enhance distributed network layout Faced with this situation, Abbott has initiated a short-term contingency plan and is leveraging its global network of 90 production bases to seek buffer space. Abbott also announced an investment of $500 million (approximately RMB 3.65 billion) in manufacturing and research projects in Illinois and Texas to produce equipment for screening blood and plasma donations. These projects are expected to be operational by the end of this year and will help Abbott mitigate the potential impact of the high tariffs imposed by President Donald Trump on China. Abbott CEO Robert Ford emphasized in the meeting that the company has established a "distributed production network" to mitigate risks through global supply chain optimization. Although Abbott is actively lobbying alongside the medical device industry association AdvaMed, he admitted to having "low expectations" for obtaining tariff exemptions. Citing the China tariff policies during Trump's first term, he noted, "Historical experience shows that once tariffs are imposed, they are difficult to roll back." Financial report data show that, excluding the impact of exchange rate fluctuations and the decline in COVID-19 testing business, Abbott's global sales in the first quarter of 2025 increased by 8.3% year-on-year to 10.36 billion US dollars. The company reiterated its full-year financial targets: revenue growth of 7.5%-8.5%, and adjusted earnings per share of $5.05-$5.25. Ford stated, "Before the tariffs were implemented, we had considered raising our earnings forecast. However, under the current circumstances, maintaining the original guidance already reflects the company's confidence." On that day, Abbott's stock price rose by 6% in early trading. Abbott's response strategy this time is a portrayal of how multinational medical device companies adapt to the squeeze between the waves of globalization and localized demands. As the China-U.S. trade friction continues, multinational companies are seeking a balance between political risks and market efficiency through measures such as regionalized production capacity layout and diversified supply chain construction.

Packaging manufacturer Constantia Flexibles (Vienna; www.cflex.com) said it has put a new 5-layer blown film plant onstream at its German site in Pirk. The film production unit made by German manufacturer Hosokawa Alpine (Augsburg; www.hosokawa-alpine.com) works with inline machine direction orientation (MDO) technology.Constantia did not provide any details on the sum invested or the planned production capacity.With the MDO technology – which is based on monoaxially stretching – barrier properties, optical characteristics, and the thickness of the packing material can be modified during the production process. This enables the production of recyclable mono-polyethylene films, which the company markets under the EcoLam HighPlus brand.The research and development department is also based at the Constantia’s Pirk site, where it has a workforce of around 800.The Austrian packaging manufacturer has been majority owned by US private equity firm One Rock Capital Partners (New York, New York; www.onerockcapital.com) since 2023.With around 9,580 employees at 36 sites in 16 countries, Constantia Flexibles reported sales in 2023 of around EUR 2 bn.At the beginning of 2024, the company acquired a majority of the shares of Swiss competitor Aluflexpack (Reinach; www.aluflexpack.com).

Yesterday (April 15, 2025), executives at Johnson & Johnson stated in the company’s first-quarter earnings report that they expect the anticipated increase in global tariffs to result in a $400 million (approximately RMB 3 billion) financial hit for the company, with as much as 70% of this tariff impact coming from medical devices the company exports from the U.S. to China. Image source: Yahoo Finance In terms of revenue performance, Johnson & Johnson reported revenue of $21.9 billion in the first quarter, exceeding Wall Street's expectations by 1.4%. Adjusted earnings per share were $2.69, surpassing Wall Street's expectations by 6.7%. Amid mixed sentiments, Johnson & Johnson's stock fell less than 1% on the day. 01 Johnson & Johnson: Expected to incur a loss of 3 billion. 70% of medical device products exported from the United States to China Johnson & Johnson CFO Joseph Wolk said that based on the tariffs on goods and raw materials formally announced by the Trump administration so far and the retaliatory measures taken by the international community, the company's medical technology sector will bear the brunt of the burden. "I don't want to be cavalier about the $400 million," Wolk said on the investor call. "It's a program that phases in, and as that comes in, most of that will be capitalized into the cost of the goods," he added. "So that will come onto the balance sheet as inventory and come through the P&L over future periods." Wolk stated that this estimated figure takes into account the impact of import tariffs on products manufactured in Canada and Mexico that are not covered by the North American trade agreement, as well as the impact of international steel and aluminum tariffs— the latter having "a very small degree of influence." He said, "This includes tariffs on China and China's retaliatory tariffs. In terms of that $400 million, it might be the highest amount among all the tariffs. Therefore, what needs to be clarified to everyone is that this refers to American-origin products shipped to China - this could be the most severe punitive factor." CEO Joaquin Duato said that if the Trump administration's goal is to increase domestic production, imposing tariffs on medical products is not the right approach, and warned that these tariffs could "cause supply chain disruptions, leading to shortages." Duato stated, "If you want to establish manufacturing capabilities in the medical technology and pharmaceutical sectors in the United States, the most effective answer is not tariffs, but tax policies." "In fact, since President Trump's tax reform in 2017, investment in medical technology and pharmaceuticals has increased significantly," he added, citing Johnson & Johnson’s plan announced last month to increase its U.S. investment by 25%, equivalent to over $55 billion in investments over four years, including building a new biologics factory in North Carolina. " As for the future development direction, Wolk said that due to the fact that the contract for the transportation of medical equipment has been signed, the company's ability to mitigate the impact of tariffs by adjusting prices and passing on costs is "very limited". "We know that these tariffs are very unstable," said Wolk. "Our responsible action now is to quantify the impact we anticipate for 2026, and then see if it aids in negotiations with other countries, as well as what actual changes will occur by the second half of 2025." Following its recent financial guidance, the company's acquisition of Intra-Cellular Therapies and its Caplyta therapy for treating schizophrenia and bipolar disorder for $14.6 billion slightly raised its projected operational sales from $913 billion to $920 billion in January. 02 Continue to streamline and focus strategically, The orthopedic department is about to conclude its two-year restructuring plan. In the first quarter of this year, Johnson & Johnson's total sales reached $21.9 billion, reflecting a 4.2% growth compared to the beginning of 2024 after accounting for international currency fluctuations. This includes $8 billion in global medical technology revenue, with an adjusted growth rate of 4.1%. Duato attributed part of these gains to its acquisitions of Abiomed and Shockwave in the cardiovascular disease field, as well as its surgical vision and wound closure businesses. Moreover, after Johnson & Johnson paused the launch of its Varipulse pulsed field ablation system in the U.S., the company has now completed 5,500 procedures globally as cases resumed in February, he said. However, this performance was somewhat offset by one-time costs in its orthopedic division, which is nearing the end of a two-year restructuring plan aimed at exiting lower-margin areas. Meanwhile, Wolk stated that the company is implementing a similar plan to narrow the focus of its surgical business. "We are focusing on portfolio refresh, with plans to exit certain non-strategic product lines on a global basis and optimize selected sites across our network," Wolk said. "We anticipate minor short-term fluctuations in surgical revenue over the next two years, totaling approximately $250 million, but these initiatives will strengthen our ability to accelerate growth and enhance profitability. The project is expected to be completed by 2027, with an estimated cost of approximately $900 million."

On April 15th, U.S. time, the White House website reiterated that due to China's retaliatory measures, goods exported from China to the U.S. are now facing tariffs of up to 245%. As early as April 11, a spokesperson for China's Ministry of Commerce stated that the U.S. imposition of excessively high tariffs on China has turned into a numbers game, holding no practical economic significance. If the U.S. continues with this tariff numbers game, China will not pay it any heed. Actually, the latest statement from the White House "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions." That is, the maximum (up to) tariff that goods going from China to the United States might face could be 245%, not all goods. The number is not a newly imposed tariff, but the result of adding the 100% tariff on some goods (such as syringes, needles) during the 2018 trade war to the additional 145% tariff in 2025. For instance, The New York Times previously illustrated that the tariffs on certain medical products could reach up to 245% due to the==== rule. Attached figure.

On April 15, 2025, the CHINAPLAS 2025 International Plastics and Rubber Exhibition, themed "Transformation·Collaboration·Shaping Sustainability," grandly opened at the Shenzhen World Exhibition & Convention Center (Bao'an New Venue). Furong New Materials showcased its innovative product matrix and professional solutions at Booth P31 in Hall 20, attracting in-depth discussions with clients from domestic, European, American, African, Middle Eastern, and other regions, with a notable increase in overseas client participation. Customer Communication As a globally renowned BOPP film supplier, Furong New Materials showcased functional films such as anti-fog film, flower film, low-temperature heat sealable film, and tissue film, as well as conventional films like paper composite film, heat sealable film, light printing film, and tape film. With innovative technology and outstanding product quality, they attracted significant attention and in-depth exchanges from numerous domestic and overseas customers, reaching preliminary cooperation intentions with multiple well-known overseas enterprises on-site. At this exhibition, Forun New Material continues to uphold its mission of "Driving Development through Innovation, Making Life Better," further enhancing its global marketing network to meet the growing demands of customers worldwide. The company is comprehensively boosting its competitiveness on a global scale, gathering momentum to become a leading and globally renowned enterprise in the film products industry. Source: Forun New Material

The White House announced on April 15 local time that due to (China's) retaliatory measures, Chinese goods exported to the U.S. now face tariffs as high as 245%.

BOLSTERING AMERICA’S CRITICAL MINERALS FUTURE: Today, President Donald J. Trump signed an Executive Order launching an investigation into the national security risks posed by U.S. reliance on imported processed critical minerals and their derivative products. The Order directs the Secretary of Commerce to initiate a Section 232 investigation under the Trade Expansion Act of 1962 to evaluate the impact of imports of these materials on America’s security and resilience. This investigation will assess vulnerabilities in supply chains, the economic impact of foreign market distortions, and potential trade remedies to ensure a secure and sustainable domestic supply of these essential materials. The investigation will culminate in a report detailing risks and providing recommendations to strengthen domestic production, reduce dependence on foreign suppliers, and enhance economic and national security. If the Secretary of Commerce submits a report finding that imports of critical-mineral articles threaten to impair national security and the President decides to impose tariffs, any resulting tariff rate imposed under Section 232 would take the place of the current reciprocal tariff rate, pursuant to President Trump’s April 2 order. COUNTERING THREATS TO NATIONAL SECURITY AND ECONOMIC STABILITY: President Trump recognizes that an overreliance on foreign critical minerals and their derivative products could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation. Critical minerals, including rare earth elements, are essential for national security and economic resilience. Processed critical minerals and their derivative products are key building blocks of our defense industrial base and integral to applications such as jet engines, missile guidance systems, advanced computing, radar systems, advanced optics, and secure communications equipment. The United States remains heavily dependent on foreign sources, particularly adversarial nations, for these essential materials, exposing the economy and defense sector to supply chain disruptions and economic coercion. Foreign producers have engaged in price manipulation, overcapacity, and arbitrary export restrictions, using their supply chain dominance as a tool for geopolitical and economic leverage over the United States. A few months ago, China banned exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications.   Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. STRENGTHENING AMERICAN INDUSTRY: This Executive Order builds on previous actions taken by the Trump Administration to ensure U.S. trade policy serves the nation’s long-term interests. On Day One, President Trump initiated his America First Trade Policy to make America’s economy great again. On Liberation Day, President Trump imposed a 10% tariff on all countries and individualized reciprocal higher tariffs on nations with which the U.S. has the largest trade deficits in order to level the playing field and protect America’s national security. More than 75 countries have already reached out to discuss new trade deals. As a result, the individualized higher tariffs are currently paused amid these discussions, except for China, which retaliated. China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions.   President Trump signed proclamations to close existing loopholes and exemptions to restore a true 25% tariff on steel and elevate the tariff to 25% on aluminum. President Trump unveiled the “Fair and Reciprocal Plan” on trade to restore fairness in U.S. trade relationships and counter non-reciprocal trade agreements.    President Trump signed a memorandum to safeguard American innovation, including the consideration of tariffs to combat digital service taxes (DSTs), fines, practices, and policies that foreign governments levy on American companies. President Trump signed similar Executive Orders launching investigations into how imports of copper and imports of timber, lumber, and their derivative products threaten America’s national security and economic stability.

The multi-billion-dollar deal announced in December 2024 has gone through. Packaging group Novolex  has acquired its competitor Pactiv Evergreen (Lake Forest, Illinois, USA) for approximately USD 6.7 mn (EUR 6.12 bn), the company announced. Stan Bikulege is set to head the merged group (Photo: Novolex) According to the agreement, Pactiv Evergreen’s shares have been delisted from the Nasdaq stock exchange. Shareholders received USD 18.00 per share, representing a premium of 49% over the average share price for the two-month period up to 2 December 2024, the last trading day before initial media reports about a potential takeover. The merged company, headquartered in Charlotte, North Carolina, will operate under the name Novolex and is now one of the largest providers of food packaging worldwide, the firm said. Led by Novolex CEO Stan Bikulege, the group has a pro forma turnover of just under USD 10 bn and employs around 20,000 people across more than 100 production facilities. While the main focus is on North America, numerous manufacturing sites are also located in Europe. The product range includes packaging made from plastic, cardboard, and paper fibres.This is already the second multi-billion-dollar acquisition in the packaging sector within just a few months, following Amcor’s purchase of Berry Global.

In the pursuit of designing new lightweight, flexible, and efficient heat dissipating materials for modern devices, the research team led by the University of Massachusetts Amherst has made a groundbreaking discovery: defects can also create advantages. This research, published in "Science Advances," demonstrates through experiments and theory that polymer composite materials with defective thermal conductive fillers can increase thermal conductivity by 160% compared to similar materials using perfect fillers, completely overturning the traditional perception that "defects must damage performance." Key breakthroughs Disruptive discovery: Defective graphene oxide filler (thermal conductivity only 66.29 W/mK) incorporated into polymer outperforms perfect graphite filler (292.55 W/mK) by 160% Mechanism Innovation: The formation of defects on rough surfaces enhances the vibrational coupling at the polymer/filler interface, reducing thermal contact resistance. Application potential: Opens new pathways for developing ultra-high thermal conductivity polymers, which can solve the heat dissipation problems of devices such as microchips, flexible electronics, and soft robots. Traditional Dilemma: The Limitations of Perfect Packing Materials Polymers, with their lightweight, insulating, and flexible properties, have become core materials in modern technology. However, their **inherently low thermal conductivity (0.1-0.5 W/mK)** has led to serious overheating issues in devices. The academic community has long sought to enhance thermal conductivity by incorporating metal, ceramic, or carbon-based fillers, but the actual results have fallen far short of theoretical predictions. Diamond filler case: Theoretical thermal conductivity should reach 800 W/mK with a 40% loading, but the actual value is only around 10 W/mK. Key limiting factors: filler agglomeration, interfacial contact thermal resistance, low thermal conductivity of polymer matrix Defect Engineering: Turning Disadvantages into Advantages The research team revealed through multi-scale experimental-theoretical approaches that defects play a positive role: Material Design Control group: 5% volume fraction of perfect graphite (292.55 W/mK) Experimental group: 5% volume fraction of defective graphene oxide (66.29 W/mK) Disruptive Outcome The thermal conductivity of polymer composites with defective fillers is significantly higher. Mechanism Analysis: ▶️ Defects causing rough surfaces prevent polymer chains from packing tightly ▶️ Enhanced interfacial vibrational coupling (improved phonon matching) ▶️ Construction of efficient heat flow channels, reducing interfacial thermal resistance Technical Validation System The study employs a four-in-one cross-validation method. Thermal Transport Measurement: Precise Quantification of Material Performance Enhancement Neutron Scattering: Resolving Atomic Scale Vibrational Modes Quantum Mechanics Modeling: Revealing Electron-Level Interactions Molecular Dynamics Simulation: Tracing the Path of Heat Energy Transfer Application Prospects and Significance This discovery provides a novel approach for the design of functionalized polymers. Next-generation electronic devices: Addressing heat dissipation bottlenecks in 5G chips, Micro LED, and more Flexible electronics: Development of high thermal conductivity elastomers for wearable devices Energy Sector: Enhancing the Safety and Efficiency of Battery Thermal Management Systems Aerospace: Manufacturing Lightweight and Efficient Thermal Protection Materials Professor Yanfei Xu, the head of the research team, emphasized: "Defect engineering will become a crucial direction in future materials science. By precisely regulating interface properties, we have the potential to break through the theoretical limits of polymer thermal conductivity."

The European Parliament and Council have provisionally agreed on a regulation intended to keep plastic pellets out of the environment by improving their handling across the supply chain, enforcing measures such as a risk management plan for their packaging. The proposed rules will apply to EU operators and both EU and non-EU carriers. In the latter case, an authorized representative would ensure that non-EU carriers operate on a level playing field with their EU counterparts – and make sure that all plastic pellet carriers are both accountable for and transparent about their operations. A new framework will introduce measures such as a risk management plan to be prepared by each installation handling pellets; these would concern packaging, loading and unloading, staff training, and equipment, among other measures. Industry players will also be held to obligations regarding clean-up operations in the case of accidental losses. Operators handling over 1,500 tonnes of plastic pellets every year will be expected to obtain a certificate from an independent third party. Small companies that exceed the 1,500-tonne threshold will be held to lighter obligations, including one-off certification to be completed in five years after entry into force. Meanwhile, microenterprises and companies handling less than 1,500 tonnes annually will only be required to issue a self-declaration of conformity. These distinctions are expected to simplify compliance for different company sizes without compromising the regulation’s environmental benefits. Not only will these rules apply to companies operating on land, but with 38% of all pellets transported in the EU in 2022 attributed to maritime transport – and in line with ongoing concerns that non-biodegradable pellets entering the oceans can remain for ’decades or more’ – obligations will also be laid out for pellets transported by sea in freight containers. High-quality packaging will be mandatory, and transport and cargo-related information will be provided in accordance with the International Maritime Organization’s guidelines. Anticipated to improve the handling of plastic pellets at every stage of the supply chain, the provisional agreement must now be endorsed by both the Council and Parliament. After a legal and linguistic review, both institutions must formally adopt the regulation and publish it in the Official Journal of the EU. At this point, the regulation will apply two years after its publication; in the case of the maritime sector, the co-legislators have agreed to postpone the rules applying to ocean transport by an extra year. “Microplastics, including plastic pellets are now found everywhere — in our oceans, seas and even in the food we eat,” explains Paulina Hennig-Kloska, Polish Minister for Climate and Environment. “Each year, the equivalent of up to 7,300 truckloads of plastic pellets are lost to the environment. “Today, the EU has taken a landmark step toward reducing pellet pollution by adopting measures to tackle losses and ensure correct handling, including in maritime transport.” A similar measure was introduced in late 2023 when the European Commission banned EU countries from shipping their plastic waste to non-OECD countries – a measure set to ensure the continent takes greater responsibility for its exports, utilizes waste as a resource in line with the Green Deal, and lifts the environmental burden on third countries. In response, the European Recycling Industries’ Confederation (EuRIC) explained that European recyclers would become reliant on treating plastic waste and selling recycled plastics on the European market; it cautioned that ‘unbalanced pressure’ on recyclers could push companies to relocate outside of Europe and cause the continent to miss its legally binding recycling and recycled content targets, among other impacts. More recently, the Single-Use Plastics Directive’s recycled content mandates came into effect this year; we spoke to Matt Tudball, Helen McGeough, Valentina Di Micco and Carolina Perujo Holland from ICIS to learn more about the impacts it has already had on the market and discuss ongoing areas of uncertainty.