06 October 2013 12:59 [Source: ICIS news]
BERLIN (ICIS)--Players in the European petrochemical industry will continue to restructure in the face of lower cost competition and faster growing markets in Asia, an industry consultant said on Sunday.
“This is not an industry that has fallen asleep,” said Paul Ray, head of ICIS Consulting & Analytics. He made his comments during a presentation at the 47th annual European Petrochemical Association (EPCA) conference.
There are business opportunities in a changing global feedstock market and shifting business dynamics, Ray said. Europe has been busy restructuring over a very long period of time and restructuring is an on-going phenomenon for players on the continent, he said.
Ray warned, however, that the contraction of naphtha supply from European refineries will be an added challenge for the industry.
ICIS Consulting & Analytics is forecasting that some 27m tonnes of naphtha supply will be lost in Europe between 2005 and 2015 as refineries shut equivalent to 9m tonnes of ethylene.
“If we get more squeezed in that space, the sustainability of naphtha availability in Europe will be a challenge," Ray said.
The annual EPCA meeting runs from 5-9 October.
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