US report names top 10 value creators among global chem companies

21 May 2013 22:32  [Source: ICIS news]

HOUSTON (ICIS)--South Korea’s LG Chem has topped a list of worldwide chemical companies deemed value creators between 2007 and 2011, while the country’s Kumho Petrochemical ranked No 1 in both the 10- and 20-year time periods, the Boston Consulting Group (BCG) said on Tuesday.

The BCG released a report on the state of the global industry, examining the total shareholder return (TSR) of more than 100 publicly listed chemical companies.

“BCG’s analysis has found that the top 10 have succeeded by pursuing three strategies for value creation: aggressive growth, pricing-power-based margin expansion and valuation-multiple improvement,” the consulting group said.

“While chemicals companies took a substantial hit from the global financial crisis of 2008, with TSR falling from 11% to 4.7%, chemical companies weathered the storm in very different ways depending on the subsector to which they belong,” it added.

Most companies produced base chemicals and basic plastics, but others were in agrochemicals and fertilizers, industrial gases as well as focused specialty and multispecialty chemicals, the BCG said.

In the 5-year list, Mexico’s Mexichem ranked second, followed by China’s multispecialty chemicals company Zhejiang Juhua, US agrochemicals CF Industries and Kumho.

South Korea’s focused specialty chemicals company OCI was sixth, followed by Honam Petrochemical of South Korea and SQM of Chile.

UK-based focused specialty chemicals business Croda International ranked ninth, and South Korea’s multispecialty chemicals company Cheil Industries was No 10.

Following Kumho in the 10-year list were Mexichem, US focus specialty chemicals company WR Grace, OCI, SQM, Honam, LG Chem, Israel-based agrochemicals company ICL, Cheil and Saudi Arabian agrochemicals business Saudi Basic Industries.

In the 20-year list, those following Kumho included Canadian agrochemicals company PotashCorp, India’s Reliance Industries, Germany agrochemicals business K+S, US industrial gases supplier Airgas, Cheil, Honam, Croda, US-based focus specialty chemicals company Ecolab and Germany-based multispecialty chemicals producer BASF.

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By: Tracy Dang
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