It has been a few weeks since my last post and market conditions have only worsened. The business outlook has grown bleaker as recession looms over much of the developed world and GDP growth rates in China and India have been trimmed. Chemical companies are grappling to find a solution to stem the rapid erosion in profitability and demand.
But some companies appear to be looking beyond the current crisis to plan for the future. It was reassuring to read Akzo Nobel's announcement of its plan to build a coil and speciality plastics coatings plant in Hoskote, near Bangalore for the high performance steel and aluminium construction markets in India and neighbouring countries.
The construction industry in India is currently in a mess but there are no doubts that more homes, roads, ports and airport will need to be built. Demand will eventually return.