Chemical industry holds firm: 2011 better than 2010, worse than expected

08-Dec-2011 - Netherlands

For the chemical industry, up until now 2011 has been a better year than 2010. However, it has not been as good as was expected at the start of 2011. In the first quarter, there was a growth in production of 2.7% compared to the same period in 2010. However, production declined in the following two quarters. The growth in production over the first three quarters was therefore 1%. Although the year has not yet come to an end, investment in 2011 is already up by 90% compared to 2010. From the figures of Statistics Netherlands (CBS) it appears that investment in 2012 will be down by 11% on 2011. The VNCI has observed that companies are becoming increasingly cautious and putting off investment due to the uncertain financial and economic climate in Europe. This trend was confirmed in the annual survey carried out by the VNCI.

Although production only showed limited growth during the first three quarters, there was nonetheless a significant increase in turnover. In the third quarter of 2011, turnover was up by more than 11% on the third quarter of 2010. Although this was still 4% lower than the highpoint in the third quarter of 2008. The increase in turnover was the result of higher sales prices caused by the escalating cost of raw materials. The sales prices in the third quarter were 15% up on the same quarter in 2010, and 2% higher than in the third quarter of 2008. Companies are nonetheless finding it increasingly difficult to pass on the higher cost of raw materials.

Exports remained at a high level in the first three quarters (€ 54 billion), which was similar to the figure for the same period in 2010. Imports were down, which meant the contribution to the balance of trade went up.

Vision for the future

As one of the ‘top sectors’ designated by the government, the chemical industry has an important role to play in the future earning potential of the Dutch economy. The Netherlands needs the chemical industry in order to maintain its economic prosperity. To make sure it is prepared for this role, the VNCI has developed a vision for the future of the chemical industry in the Netherlands in 2030/2050. This will be presented at the beginning of next year. The chemical industry sees a positive future for itself in the Netherlands over the long term. Innovation will be an essential part of this. The challenge for the coming period will be to overcome the economic crisis, while at the same time laying the foundations for a new period of innovative growth.

https://www.chemeurope.com/en/news/135543/chemical-industry-holds-firm-2011-better-than-2010-worse-than-expected.html