14 October 2009 17:35 [Source: ICIS news]
LONDON (ICIS news)--There is currently little incentive for chemical producers to invest in north Africa, particularly with the imminent influx of supply from neighbouring Middle Eastern markets, a consultant said on Wednesday.
Edouard Croufer, global director of chemicals at consultancy Arthur D Little, said that, although “in principle all the ingredients are there”, gaining a foothold in countries such as ?xml:namespace>
“The biggest problem for north Africa – other than the political instability – is the huge amount of capacity coming in from the
“Is this the right time to go ahead and build something south of the
On paper, at least, north Africa is well positioned logistically, with access to markets in southern Europe, Asia and the
However, aside from the availability of raw materials in
Heightened competition from thriving markets such as the
“If you could get the gas for an attractive price, then you could probably justify building there,” said Croufer.
“But why would somewhere like
“When the world needs additional capacity in the future, it will indeed be tempting to build in
“In the long term, I’m sure it will happen because there will be a need for product; the local population is large and their economies should improve. But is it going to be the next big centre of production for chemicals? I don’t think so,” said Croufer.
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