APLA '10: Local demand drives chem capacity growth in LatAm, Asia

09 November 2010 13:38  [Source: ICIS news]

RIO DE JANEIRO--Chemical companies are likely to expand capacity and build new plants in Latin America and Asia because of rising domestic demand, a consultant said on Tuesday.

"Capital investments are focused on building the regional markets," said Sarah Yarger Kienzle, vice president of strategy and operations at Nexant Chem Systems.

Kienzle was speaking on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting in Rio de Janeiro, Brazil.

Companies will rely on exports to some extent, but local demand is the primary focus of the new capacity, she said.

For Brazil, Chile, Colombia and Peru, GDP is expected to grow by 4.1% to 6% from 2011 to 2015, according to the International Monetary Fund (IMF).

Momentive Specialty Chemicals opened a urea-formaldehyde-resins plant in Brazil at Montenegro, Rio Grande do Sul, in 2010 - with the material going to meet domestic demand for wood board.

The APLA meeting ends on Tuesday.

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By: Al Greenwood
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