15 December 2008 11:27 [Source: ICIS news]
By Mark Watts
LONDON (ICIS news)--The European chemicals industry is in danger of being marginalised due to competition from feedstock-advantaged Middle East producers and falling levels of innovation, financial services firm KPMG said on Monday.
KPMG said the ?xml:namespace>
“The Middle East-based companies have made the most of their natural resource and transformed their business from a supply of raw material to heavyweight, global petrochemicals production,” said European head of chemicals at KPMG Chris Stirling.
“Our research shows that 53 plants could come onstream by 2012 which, if taken together with investment in
KPMG said European producers could bolster their position in the short-term by offshoring, but the longer term challenge to the market was to make the most of an historic upper hand in innovation and team up with Middle Eastern companies to access their resource advantages.
Innovation in the European sector had been falling due to high levels of regulation and difficulties in attracting a sufficient skills base to the industry, KPMG said.
To discuss issues facing the chemical industry go to ICIS connect
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|