02 February 2010 11:55 [Source: ICIS news]
By Will Beacham
LONDON (ICIS news)--Fourteen of Europe’s 43 crackers will be uneconomic by 2015 and should close, consultants KPMG said on Tuesday.
Fierce competition from the Middle East and Asia would render all but the most integrated and competitive bulk chemical capacity obsolete, Chris Stirling, head of chemicals at KPMG in ?xml:namespace>
“We’re not saying they will close, but looking at the relative costs compared to capacity elsewhere, these plants look uneconomic to us,”
In a new report, ‘The future of the European Chemical Industry’, KPMG said European chemical players needed to “ruthlessly identify which chemical clusters will remain competitive on the global stage and focus resources and investments in these areas to ensure their long-term survival”.
Stirling said that to survive and grow, Europe’s chemical sector would need to play to its strengths and not compete head on with the Middle East and
“In Europe there is an enormous amount of knowledge and expertise giving the industry the ability to innovate and find new ways of doing things,” said
Stirling said there will be a lot more merger and acquisition activity as
Over the past few years,
Harnick added: “I also think we’ll see a lot more joint ventures between the Middle East and
Download KPMG’s new report, 'The future of the European Chemical Industry'
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