PRZOOM - /newswire/ -
London, United Kingdom, 2008/01/16 - Report Buyer, added a new report which finds that despite the recent slump in European chemical production, the EU is still at the core of production and R&D activities.
Report Buyer, the online destination for business intelligence for major industry sectors, has added a new report which finds that despite the recent slump in European chemical production, the EU is still at the core of production and R&D activities of the global chemical industry.
“EU Chemical Industry Analysis” finds that the EU chemical industry is projected to forge ahead at a CAGR of nearly 3.2% from 2007 to 2010 in a scenario where countries around the world are enhancing their chemical production to fortify the foundations of other related industries.
Until recently, the European Union was leading the worldwide chemical production, but emerging Asian and Latin American countries have left it behind.
The report finds the EU chemical industry analysis is facing stiff competition from low cost production bases in Asia and Latin America. It also identifies that the EU chemical industry relies on exports (both inter and intra EU) making the low cost bases a challenge to the European industry.
Analysts state that most EU countries are reaching maturity. On the other hand, they point out that the chemical markets of Asian and Latin American nations are forecast to witness much faster growth prompting chemical manufacturers to flock there to set up production facilities, a factor that threatens the future of the EU chemical market.
Authors point out that REACH Regulation, which controls Registration, Evaluation, Authorisation and Restriction of Chemicals came into force in 2007, and has surfaced as the biggest threat of recent decades to the EU industry. They say that in the next two years, the chemical industry will have to spend over two Billion Euros to make an estimated 80,000 registration dossiers and conduct additional tests.
Authors find that several substances generate such small profit margins that they will not be able to absorb the additional cost. This explains why the production base of the chemical industry is anticipated to grow at a sluggish pace, they maintain.
The study finds that industries like paints, plastics, cosmetics, fertiliser chemicals, and automobiles will support the EU chemical industry. It also analyses sectoral production, sales, and trade of the chemical industry of EU countries, coupled with driving forces and opportunity areas.
“EU Chemical Industry Analysis” is available from Report Buyer. For more information, please visit the website.
Report Buyer product ID: RCS00184
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