New Middle East plants to hit UK basic chems growth - consultants

02 March 2010 17:30  [Source: ICIS news]

LONDON (ICIS news)--UK chemicals output is expected to rise broadly in line with manufacturing production in 2010, consultants Oxford Economics said on Tuesday.

Output, excluding pharmaceuticals, is forecast to rise by 1.75% this year and climb by 3.5% in 2011, but basic chemicals production will be hit as new plants in the Middle East and China siphon off growth, it added.

“After flattening out in Q3 basic chemical output rose by 2% in Q4 [2009] but prospects are for much slower growth through this year and next as competition from more brand new plants outside of Europe intensifies,” Oxford Economics said.

“Some currently closed capacity may well never reopen. We now expect [basic chemicals] output to grow by [around] 2.3% this year and next before quickly reverting to below a 1% pa [per annum] improvement by 2014.”

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By: Nigel Davis
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