EPCA '07: China could weather US recession - BP

30 September 2007 15:24  [Source: ICIS news]

BERLIN (ICIS news)--The domestic base of the Chinese economy is sufficiently robust to withstand a possible downturn in the US, particular as the construction sector continues to boom, BP Acetyls chief executive Guy Moeyens said on Sunday.

 

China's manufacturing sector is a major supplier of goods to the US, where business and cosumer confidence has been dented by the ongoing decline of the housing market.

 

But in deciding to invest in acetic acid production capacity in China, BP came to the conclusion that a US downturn would not derail China's economy, he said.

 

"We looked very closely at that question," Moeyens said on the sidelines of the European Petrochemical Association (EPCA) meeting in Berlin.

 

Moeyens cited China's construction sector as the bedrock for acetic acid demand, with very little of the chemical leaving China in the form of manufactured goods.

 

The Chinese government has been trying to cool construction activity, underscoring the strength of demand in that sector, Moeyens noted.

 

BP and partner Sinopec are planning a 650,000 tonne/year project in Chongqing that would be due for completion in 2010.

By: Stephen Burns
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly