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.
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“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.
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