Europe: Competitive Pressure on the Chemical Industry Report by Cefic Calls for Better Framework Conditions in the EU
A new report by Cefic, the EU chemical industry council, concludes that the competitive pressures on the sector continue to rise – despite growing global demand for chemicals and better environmental and energy efficiency performance of the chemical industry.
Brussels/Belgium – ”It is crucial for Europe to enable this sector to innovate and transform from the existing asset base, to allow it to act as enabler of key materials and supplier for other sectors in Europe, also in the next decades. Keeping Europe an attractive place for chemical investment requires urgent action on the cost of energy and feedstock and on better regulation" states Marco Mensink, incoming Cefic Director General. "90 % of global GDP growth will happen outside the EU in the coming decades, of which we need to take our share. Growth and jobs are highly dependent on a strong domestic business climate” he adds.
Based on the recently published report, Cefic calls for improved EU regulations and claims that "in Europe the chemical industry faces high energy and feedstock costs and a complex regulatory environment, resulting in declining export competitiveness."
The report states that "making ethylene – a major chemicals building block – in Europe is twice as expensive as in the US. This is boosting profits abroad and attracting billions of dollars in investment, which Europe is missing out on. As regards regulatory compliance cost, a cumulative cost assessment will soon be published by Cefic, showing the growing cost of regulation on industry in Europe."