07 June 2011 16:38 [Source: ICIS news]
VIENNA (ICIS)--Consolidation trends will continue to challenge chemical distributors, forcing them to continuously reinvent their service models and focus strongly on their principal suppliers, the CEO of Hungary-based BorsodChem said on Tuesday.
“The dominance of large principal suppliers is increasing, but the overall number of large principals is decreasing,” said BorsodChem CEO Wolfgang Buchele.
He was speaking at the European Association of Chemical Distributors’ (FECC) annual congress in ?xml:namespace>
Large chemical companies will continue to grow by acquisitions and organically but, overall, the number of large chemical companies will decrease, while the number of mid-sized chemical companies will decrease even further, he said.
“The future chemical market will be driven by fewer ‘size matters’ producers and to a certain extent by many specialist producers occupying niche segments,” said Buchele.
He added that chemical distributors will become more driven by their suppliers’ strategic approach to markets, which will define future portfolios.
The FECC annual congress ends on 8 June.
Read Paul Hodges’ Chemicals and the Economy blog
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