EPCA '08: Construction downturn to hit chems

29 September 2008 04:16  [Source: ICIS news]

MONTE CARLO (ICIS news)--Major chemical distributor Brenntag expects a challenging adhesives and coatings markets next year due to the downturn in the construction industry, said a senior company source late on Sunday.

 

The economic downturn and constraints on availability of funding were hitting markets hard, and had already led to a 10% downturn in sales volumes for adhesives and coatings globally, said Steve Holland, CEO of Brenntag Europe, on the sidelines of the European Petrochemical Association Conference (EPCA). 

 

"In 2008 Brenntag is performing strongly, but 2009 looks challenging due to turbulent market conditions,” Holland said, but declined to give precise forecasts for the company.

 

However, he added that distributors can benefit from a downturn because purchasers of chemicals may cut the volumes they purchase and buy from distributors rather than directly from producers. "This tends to cushion us from the cycle," he said.

 

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By: Will Beacham
+44 20 8652 3214

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