12 July 2013 19:51 [Source: ICIS news]
By: Joseph Chang
NEW YORK (ICIS)--China's economic growth has been slow, but infrastructure spending is poised to pick up going forward, the chief executive of Bayer MaterialScience (BMS) said on Friday.
"It feels like slower than headline growth as government efforts to avoid a property bubble are slowing construction and infrastructure projects," said Patrick Thomas, CEO of BMS.
Thomas spoke to ICIS on the sidelines of an event featuring the Solar Impulse, an ultra lightweight solar powered plane, at JFK Airport in New York.
"However, once they get a handle on things, we'll start to see infrastructure projects begin to liven up. Housing construction will take longer to recover as there are many unoccupied apartment buildings," he added.
The auto sector in China continues to show strength, especially with growing demand for foreign branded cars, said Thomas.
"The Chinese seem to want to buy Western vehicles. That helps us as we are major suppliers to them but we also supply Chinese automakers," he noted.
Demand for furniture and bedding is also driving growth for polyurethanes, he said.
"The furniture industry in China is doing well, driving demand for [toluene diisocyanate] TDI," said Thomas.
Demand for mattresses and bedding account for around 80% of TDI demand globally, he noted.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections