EU chemicals sector output 2011

Expansion in the European chemical industry will moderate in 2011 after double-digit year-on-year growth in 2010, industry group Cefic confirmed today.

The European chemical trade group‟s annual summary forecast of chemical sector economists predicts growth of 2.5 per cent next year. Cefic confirms its forecast made six months ago, that the EU chemicals sector will post a year-on-year recovery of 10 per cent for 2010.

Cefic Director General Hubert Mandery said: “We maintain our view from earlier this year that the sharp chemicals rebound in 2009 and early 2010 was driven by inventory rebuilding, support measures, and exports. But chemicals output levels forecast for the end of 2011 will remain well below the peak levels reached in 2007.”

Cefic President Giorgio Squinzi concluded: “Companies have done their homework, have made adjustments and continue to grow output. In the first eight months of 2010 this enabled Europe‟s chemical industry to post a trade surplus of €32 billion and a €42.6 billion global trade surplus in 2009. The chemical industry has a central role in helping Europe to overcome the crisis and maintain a strong manufacturing basis. Today and tomorrow, the chemical industry must be the turbo in the engine of „Made in Europe‟.”

“Competitive pressures, especially from overseas competitors, will make it more important than ever for policymakers to set the right framework conditions in Europe and to reduce unnecessary regulatory burdens, which would help European industry grow their businesses.”