French minister warns of takeover by foreign chem firms

02 September 2004 10:28  [Source: ICIS news]

PARIS (CNI)--French Industry Minister Patrick Devedjian has warned about the dangers of French chemicals firms being taken by foreign competitors.

 

During a visit earlier this week to chemicals group Atofina's Pierre Benite site near Lyon, Devedjian said the French sector is “very scattered” in contrast with its competitors.

 

He noted: “Investments are insufficient even in research and development (R&D), and action must be taken before our companies lose their competitiveness or are acquired by foreign groups.”

 

These foreign groups will one day shut French firms down and appropriate their know-how, Devedjian warned.

 

The Minister said he was concerned about the future of the French chemicals industry, which he said "accounts for 240 000 jobs in France and is the world's fifth producer".

 

Industry group Union des Industries Chimiques’ (UIC) vice president Jean Pelin has also noted that French chemicals performance was below that in the rest of Europe in recent years.

 

The Industry Ministry and UIC are today (Thursday) launching a strategic chemicals think-tank, which will address the concerns expressed by Pelin and Devedjian.

 

Proposed by Devedjian in early June, the think-tank will include five chemicals industry leaders, trade union representatives, members of scientific, research & development (R&D) and education organisations, and government officials.

 

It will be chaired by Daniel Guarrigue, president of the Seveso study group at the French National Assembly.

 

Devedjian had earlier identified four challenges for the French chemicals industry: globalisation of production and markets, capital restructuring of the sector, its image and regulatory pressures of which the European Union’s (EU) registration, evaluation and authorisation of chemicals (Reach) system is key.

 

The think-tank will examine the four themes of competitiveness, strategy and employment; environmental constraints and regulations; image and communication; and R&D and training.

 

It will then produce a report within six months detailing the current state of the industry, scenarios for the future and concrete proposals to give industry a boost that has been lacking over the last three or four years.

 

A preliminary assessment will be presented on 6 December at a scheduled meeting of 800-1000 leaders of the industry.

By: Doris Leblond
+44 20 8652 3214

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