Released on: December 18, 2007, 11:35 pm

Press Release Author: Shushmul Maheshwari

Industry: Marketing

Press Release Summary: Due to maturing markets and REACH Regulation, the EU chemical
industry has slipped one position down to number two after Asia. But the supporting
industries are acting as catalyst to provide the activation energy.

Press Release Body: Chemistry and chemicals has always been the talk of the
scientific community, thanks to the fears of ‘chemical war’. But these
dangerous products of science make the building blocks of several other products. So
all the countries around the world are enhancing their chemical production to
fortify the foundation of other related industries. And European Union (EU), till
recently, was leading the worldwide chemical production. But now, the emerging Asian
countries have left it behind, says a recent report \"EU Chemical Industry Analysis\"
by the leading market research company RNCOS. But despite this slump, EU is still at
the core of production and R&D activities of the global chemical industry.

As per the research, the EU chemical industry is projected to forge ahead at a CAGR
of nearly 3.2% during 2007-2010. The major reason for this modicum rise in the
industry is stiff competition from the low cost production bases in Asia and Latin
America. As most of the EU countries are reaching maturity, they are estimated to
move ahead in line with their respective real GDP. On the other hand, the chemical
markets of Asian and Latin American nations are augured to witness much faster
growth due to their under-developed nature, prompting chemical manufacturers to
flock there to set up production facilities, thus threatening the future of EU
chemical market. Also, as the EU chemical industry relies on exports (both inter and
intra EU), low cost bases pose a challenge to it.

Moreover, REACH Regulation has surfaced as the biggest threat of recent decades to
the EU industry. During 2007-2010, the chemical industry will have to expend over
Euro 2 Billion to make an estimated 80,000 registration dossiers and conduct
additional tests. But several substances generate such small profit margins that
they won’t be able to even equal the additional cost. So the production base
of the chemical industry is anticipated to grow at a sluggish pace, indicating that
the potential of the region’s industrial innovation too is in mist.

But, as the RNCOS report says, the supportive industries of the EU chemical
industry, including paint, plastics, cosmetics, fertilizer chemicals, and
automobile, will keep the industry in motion.

The report comprehensively discusses the sectoral production, sales, and trade of
the chemical industry of EU countries, coupled with driving forces and opportunity
areas. Based on this analysis, the report has charted out a future forecast of the
industry.

About RNCOS:
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.
For more information visit: http://www.rncos.com/Report/IM565.htm
Current Industry News: http://www.rncos.com/blog


Web Site: http://www.rncos.com

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info@rncos.com