France chemical trade group UIC cuts 2012 production forecast
22 May 2012 18:47 [Source: ICIS news]
LONDON (ICIS)--?xml:namespace>France’s chemical industry trade group UIC has lowered its forecast for the country’s 2012 chemical production growth to 1.0% from 1.8%, it said on Tuesday.
Union des industries chimiques (UIC) said that uncertainties from the eurozone debt crisis would continue to hurt France’s industrial activities in the first half of 2012.
Orders have declined in a number of industrial sectors, especially in the auto industry, the group said.
In addition, growth in France’s building and construction sector could be impacted by fiscal tightening and a rise in interest rates, it said.
For 2013, UIC expects 2.0% growth in France’s chemical production. In 2011, the country’s chemical production rose by 5.9% from 2010.
UIC also called on France to be open-minded about the opportunities of shale gas.
France's chemical industry is at a competitive disadvantage vis-a-vis the US, where chemical producers benefit from low natural gas and feedstock prices on the back of that country’s shale gas boom, the group said.
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