Thailand Chemical Industry Overview Thailand's Chemical Industry on Growth Curve
Thailand's chemical industry is back on a solid growth curve. Especially the petrochemical industry is seen as a major driving force of the country's economy by the German foreign trades association. Industry experts expect high investment volumes and solid growth rates at the Ma Ta Phut industry area.
According to the Thai Office of Industrial Economics, the country’s economy has overcome the economy crisis within 2010. With a GDP growth of 8.0 percent in 2010, the country is among the fastest growing economies in Asia. As a major exporter, Thailand especially profit from rising foreign demands, especially for electronics and automotive parts. But also the domestic industry’s need for basic materials or intermediates contributed to he growth.
According to Germany Trade and Invest, a market forecast for the chemical industry is, nevertheless, not easy since authorities and organizations only publish vague information about recent sales and production figures. The German foreign trade association expects a growing demand for chemicals in the country to boost the emerging economy.
The first figures for this year are looking good: SCG (Siam Cement Group) saw a growth of 35 percent within the first quarter of 2011, mostly driven by a good performance of the company’s petrochemical branch: According to industry experts, especially the demand for plastics and polymers in Asia contributed to this extraordinary performance.
Thailand's Industry Has High Demand for Chemicals
Indorama Ventures, the world’s biggest producer of PET (Polyethylenterephthalat) expects sales to climb by about 70 percent – figures that are astonishing, even for Asia’s thriving businesses. US company DuPont plans to triple its sales in Thailand within the next decade to a total of one billion US $, and also German companies are optimistic about their business in Thailand.
Insiders expect a growing demand for virtually all kinds of chemicals. Agrochemicals and consumer goods but also packaging materials, plastics, pharmaceuticals and components for electronics or automobiles are seen as especially promising. The Thai government has issued a stimulus package of € 30 billion that subsidues investments in infrastructure projects and logistics and could well drive the turnovers of construction chemical.
Also consumer goods, pharmaceuticals and hygiene products should profit from rising domestic demands and growing wealth in Asian economies. Pharmaceuticals saw a solid growth of 13 percent in 2010, with imports rising to nearly 20 percent.