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Ground
State - Growth of EU Chemical Industry to Dip in Future
Chemistry
and chemicals has always been the talk of the scientific community, thanks
to the fears of ‘chemical war’. But these dangerous products of science make
the building blocks of several other products. So all the countries around
the world are enhancing their chemical production to fortify the foundation
of other related industries. And European Union (EU), till recently, was
leading the worldwide chemical production. But now, the emerging Asian
countries have left it behind, says a recent report "EU
Chemical Industry Analysis". But despite this slump, EU is
still at the core of production and R&D activities of the global chemical
industry.
As per the research, the EU chemical industry is projected to forge ahead at
a CAGR of nearly 3.2% during 2007-2010. The major reason for this modicum
rise in the industry is stiff competition from the low cost production bases
in Asia and Latin America. As most of the EU countries are reaching
maturity, they are estimated to move ahead in line with their respective
real
GDP.
On the other hand, the chemical markets of Asian and Latin American nations
are augured to witness much faster growth due to their under-developed
nature, prompting chemical manufacturers to flock there to set up production
facilities, thus threatening the future of EU chemical market. Also, as the
EU chemical industry relies on exports (both inter and intra EU), low cost
bases pose a challenge to it.
Moreover,
REACH Regulation has surfaced as the biggest threat of recent decades to the
EU industry. During 2007-2010, the chemical industry will have to expend
over Euro 2 Billion to make an estimated 80,000 registration dossiers and
conduct additional tests. But several substances generate such small profit
margins that they won’t be able to even equal the additional cost. So the
production base of the chemical industry is anticipated to grow at a
sluggish pace, indicating that the potential of the region’s industrial
innovation too is in mist.
But, as
the report says, the supportive industries of the EU chemical industry,
including paint, plastics, cosmetics, fertilizer chemicals, and automobile,
will keep the industry in motion.
The report comprehensively discusses the sectoral production, sales, and
trade of the chemical industry of EU countries, coupled with driving forces
and opportunity areas. Based on this analysis, the report has charted out a
future forecast of the industry.
For more information visit:
http://www.bharatbook.com/detail.asp?id=70008
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