17 May 2012 11:45 [Source: ICIS news]
KUALA LUMPUR (ICIS)--The petrochemical industry is shaping up to become more consolidated in the future, with a smaller number of global players becoming stronger and more focused, like Germany’s BASF and US-based Dow, a consultant said on Thursday.
Andrew Spiers, senior vice president at consulting firm Nexant Asia, added that there will be fewer fully-integrated players, such as US producer ExxonMobil, while there will be more niche, specialty players in the market, similar to Huntsman in the US and Belgium-based Solvay.
“Further industry consolidation is expected,” Spiers said at the 34th annual Asia Petrochemicals Industry Conference (APIC) being held in ?xml:namespace>
He also said that there will be more significant merger and acquisition opportunities.
The industry has experienced a huge change over the last 20 years as
For example, the
However, he added that the industry will continue to be cyclical, and because of this, “the industry supply structure continues to evolve as a consequence of changing feedstock dynamics”.
In the future, Spiers said there will be more emphasis on refinery integration and renewed interest in more remote/undeveloped areas, such as
In addition, heavier feedstock slates in the
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