SummaryModern chemical plants are becoming very complex, often consisting of a number of nonlinear process units (subsystems) with strong interactions due to material recycle and energy integration. The operation setpoint may need to be adjusted from time to time based on the market demand. To address the aforementioned challenges, a plantwide distributed nonlinear control scheme based on differential dissipativity is proposed in this paper, which can ensure plantwide incremental exponential stability and achieve bounded incremental L2 gain performance. As a non‐unique property, the differential dissipativity of individual subsystem is shaped by a setpoint‐independent control structure – differential state feedback control. The dissipativity properties of subsystems and individual controllers are determined simultaneously as a large‐scale feasibility problem to ensure the plantwide stability and performance. It is converted into an LMI condition for plantwide supply rate planning and small‐scale sum‐of‐squares programming problems for individual subsystem dissipativity shaping, by using the alternating direction method of multipliers method. The proposed approach is illustrated using a chemical reactor network with a recycle stream. Copyright © 2016 John Wiley & Sons, Ltd.