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Asociación de Industrias Químicas y de Proceso de Asturias
Brussels, 13th February, 2008
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Emerging Chemical Markets from
a European Downstream User Perspective
Asociación de Industrias Químicas y de Proceso de Asturias
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Asociación de Industrias Químicas y de Proceso de Asturias
Some Facts and Figures . . .
Market Share: 32 % (EU27)
World’s leading exporter and importer of Chemicals Main trading partners: North America, Central and Eastern Europe, Asia Euro / US dollar exchange, undermines Europe’s competitive position
96 % SMEs
12 of the 25 biggest chemical companies, based in Europe
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Asociación de Industrias Químicas y de Proceso de Asturias
Some Facts and Figures . . .
Chemical producers are the beginning of a Value Chain that supplies virtually every other manufacturing sector:
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Some Facts and Figures . . .
Asociación de Industrias Químicas y de Proceso de Asturias
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Asociación de Industrias Químicas y de Proceso de Asturias
Europe’s Leading position can not be taken for granted . . .
European Chemical Industry Market Share
1990 1996 2002 2008 2015
32
30
28
26
24
22
20
18
16
14
12
10
8
Source Cefic 2004 excluding pharmaceuticals
31,6% 30,5%
27,7%
23,6%
16,0%
European Union
27,1% 26,3%25,6%
United States
13,2%
17,1%
23,7%Asia excluding Japan
11,9% 12,4%
9,6%Japan
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Asociación de Industrias Químicas y de Proceso de Asturias
Europe’s Leading position can not be taken for granted . . .
European Chemical Industry Market Share
1990 1996 2002 2008 2015
32
30
28
26
24
22
20
18
16
14
12
10
8
Source Cefic 2004 excluding pharmaceuticals
31,6% 30,5%
27,7%
23,6%
16,0%
European Union
27,1%26,3%
25,6%United States
13,2%
17,1%
23,7%Asia excluding Japan
11,9% 12,4%
9,6%Japan
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Asociación de Industrias Químicas y de Proceso de Asturias
Brussels, 12th, 13th February, 2008
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Where European Competitors come from ? . . .
. . . Low Cost Countries (LCC)
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. . . China and India
. . . BRIC: (Brazil, Russia, India, and China)
. . . Eastern Europe
. . . Middle East and North Africa
. . . The Next Eleven: (Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Phillipines, Turkey, Vietnam )
Asociación de Industrias Químicas y de Proceso de Asturias
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Asociación de Industrias Químicas y de Proceso de Asturias
Why Looking for Chemicals in Low Cost Countries ? . . .
. . . A better balance between cost and quality
. . . A more flexible production
. . . A stronger negotiation position
. . . Possitioning in fast growing markets
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Asociación de Industrias Químicas y de Proceso de Asturias
Why continuing purchasing from Europe ? . . .
. . . Safeguard Intellectual Property
. . . Technological limitations
. . . Country related risks
. . . Be close to the users site
. . . Supply and deliveries risks
. . . Existing facilities Liabilities
. . . Costs of shifting into LCC
. . . Bad image costs in Home Countries
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Asociación de Industrias Químicas y de Proceso de Asturias
Why Looking for Chemicals in Low Cost Countries ? . . .
Price Issues . . .
. . . Lower labour costs
. . . Lower capital investment costs
. . . Lower local sourcing costs
. . . Government incentives
. . . Higher productivity . . . A company purchasing in LCC
may get a 20 % - 40 % inmediate reduction in the cost of the goods
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Asociación de Industrias Químicas y de Proceso de Asturias
Why Looking for Chemicals in Low Cost Countries ? . . .
Quality Issues . . .
. . . Low cost is not low quality
. . . Skill and motivated workers make quality improvements
. . . LCC offer are shifting into more added value products
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Asociación de Industrias Químicas y de Proceso de Asturias
Why Looking for Chemicals in Low Cost Countries ? . . .
. . . Flexibility
. . . Increasing R&D Capabilities . . . . . . Integration to more Added Value Products . . . Transfer of Technology (patent issues)
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Asociación de Industrias Químicas y de Proceso de Asturias
Why Looking for Chemicals in Low Cost Countries ? . . .
Regulatory Issues. . .
. . . The EU legal Framework
. . . What is the goal of every private company?
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Asociación de Industrias Químicas y de Proceso de Asturias
Imports from Emerging Markets in Asturias 2000 – 2005 . . .
Total imports Imports of chemicals % Total imports
Imports of chemicals %
China 29.880.615 1.310.998 4,39 91.713.035 5.633.241 6,14 429,7
India 7.553.126 197.123 2,61 8.882.423 881.036 9,92 446,9
Taiwan 3.736.253 567 0,02 4.274.158 150.905 3,53 26614,6
South Korea 9.155.922 0 0,00 4.012.921 18.786 0,47
Vietnam 492.762 0 0,00 1.241.208 3.233 0,26
Hong Kong 741.717 1.234 0,17 1.618.042 1.624 0,10 131,6
Thailand 1.817.846 0 0,00 2.033.181 964 0,05
2000-2005 Growth %
(Source: SADEI)
(euros x 1000)
2000 2005
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Asociación de Industrias Químicas y de Proceso de Asturias
Emerging Chemical Markets from
a European Downstream User Perspective
Thank you for your attention
Brussels, 13th February, 2008
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