USA: Specialty Chemicals American Specialty Chemicals Ramp Up Capacities
New trends in the American chemical industry cause equipment suppliers to shift their focus: Investments for new petrochemical projects alone could total US $ 20 billion.
London/United Kingdom – The shift towards the so-called ‘Green Transformation’ and double-digit capacity increases also impacts the diverse sectors of American specialty chemicals. Chemical companies transacting in the role of buyers have consistently targeted the commodity/basic chemicals industry, which is indicative of a trend in backward integration in an attempt to obtain some control on their feedstock prices.
Investments for new petrochemical projects alone could total US $ 20 billion with an additional US $ 23 billion between 2015 and 2020, likely for the development of other downstream and specialty products, a new study by Reportbuyer shows. As the chemical industry consolidates, diminishing lines of differentiation, coupled with the requirement of application-based chemicals, are driving developments in specialty chemicals
Adhesives, paints, and coatings products generate the highest percentage of revenue compared to other types of products, which is driving the market. However, the market is expected to expand somewhere between 1 and 3 % between 2016 and 2018 due to the volatility of oil and gas prices.
Specialty chemicals manufacturers are thus adapting 'customer focus' business models in contrast to the 'cost focus' model used for basic chemicals. There is end-user transition to batch-centric specialty production due to low volume and high margins.