2014 proves a relatively positive year for Dutch chemistry

Industry stands its ground in ailing European economy

05-Dec-2014 - Netherlands

The Dutch chemical industry experienced slight growth during the first three quarters of this year. Compared to the same period in 2013, turnover has increased by close to 1%, production by more than 2% and exports by 0.5%. This is apparent from the figures published recently by the CBS (Statistics Netherlands). The Dutch chemical industry is performing relatively well. Total production of the European chemical industry increased by only 1% during this same period and total Dutch industry exports even decreased by 0.5%.

According to the Dutch Chemical Association (Vereniging van de Nederlandse Chemische Industrie), chemical companies have benefited from a strong dollar and lower energy prices. In spite of limited economic growth in Europe, companies can maintain a solid position by tapping into new growth markets outside of Europe and implementing cost savings, as well as through clever collaboration. In addition, the chemical industry is committed to generate a circular economy (by reusing products and raw materials), and carries out research into the use of alternative raw materials. These positive initiatives together with lower energy prices mean that the Dutch chemical industry is reasonably optimistic about enhancing its competitive position in the world market.

Investment expectation

According to the CBS figures, the average investment expectation for chemical companies for 2015 is 52% higher than in 2014. If this expectation proves true next year, this is highly promising considering the fact that the investment level in recent years has been too low for necessary innovations to be made. To achieve this expectation, the investment volume will have to be a structural €2 billion. By way of comparison, the chemical industry invested no more than €1.5 billion in 2013 and previous years.

The Netherlands, key chemical industry player

The Netherlands has maintained its position as the third largest chemical industry country in Europe (after Germany and France) and accounts for close to 10% of European sales and 1.7% of the global market share. Chemical products contribute 23 billion euros (52% of total goods) to the Dutch trade balance. Total turnover for the Dutch chemical industry in 2013 was 51 billion euros (not including Pharmaceuticals). Around 57,000 people work in the chemical industry. The chemical industry is essential for economic prosperity, welfare and jobs in the Netherlands, and plays an important role in meeting the major challenges for our planet, such as climate change, food shortages and population aging.

https://www.chemeurope.com/en/news/150790/2014-proves-a-relatively-positive-year-for-dutch-chemistry.html