The chemical industry in the Netherlands is falling behind

26-Nov-2013 - Netherlands

The unstable economic climate and a weakening global competitive position are increasingly harming the Dutch chemical industry. Due to a sharp decline in orders received, sales and production at chemical companies fell by between 6% and 5.5% during the first three quarters of this year when compared to the same period in 2012. Price levels fell by 2% during the same period. Exports, which account for 80% of production, decreased by 2% during the first three quarters. Capacity utilisation in the chemical industry was also down 1.5% in the third quarter when compared to the same period in 2012.

Stakeholders in the chemical industry foresee bleak prospects for the remainder of the year as more than 80% expect limited to no change in the economic climate during the last quarter. Only about 7% of the chemical industry foresees revenue growth in the fourth quarter, while on average over the entire Dutch industry 16% of the industry is expecting an increase in turnover.

"These figures illustrate a structural disadvantage for the European chemicals industry," stated Colette Alma, Director of the Association for the Dutch Chemical Industry (VNCI). Production and export in the chemical industry have fallen by more than the average for the Dutch industry. During the first three quarters production within the industry as a whole fell by 2%, turnover by 1% and prices by 1%. Export from the Dutch industry remained unchanged during the first three quarters when compared to the same period in 2012. The figures collected by VNCI confirm the picture painted above that the chemical industry in the Netherlands and in Europe is structurally falling behind due to factors such as the rise of China, the growth of 'speciality chemicals' in the Middle East and the relatively high raw material and energy prices in Europe relative to the United States because of low shale gas prices. The Netherlands is also further disadvantaged when compared to the rest of Europe because of high energy rates.

Opportunities for the European chemical industry

The Minister of Economic Affairs, Henk Kamp, indicated that he intends to strengthen the competitiveness of the chemical industry by reinforcing chemical clusters and by reducing the regulatory burden, including the transition to a bio-based economy. The chemical industry plays a vital role in the sustainability of Europe. VNCI has indicated that urgent attention is required to re-establish a level playing field to ensure that Europe can maintain a chemical industry that is capable of fulfilling this role. VNCI is determined to turn the tide by focusing on cluster enhancement, energy efficiency and innovative production.

https://www.chemeurope.com/en/news/145927/the-chemical-industry-in-the-netherlands-is-falling-behind.html