Selected articles on industrial development in emerging economies

Pain of China export slump moves along supply chain

Eastern China's Shaoxing county has arranged USD 220m in aid to let Zhejiang Hualian Sunshine Petro-Chemical Co, a major producer of purified terephthalic acid (PTA), used to make polyester, restart output after financial difficulties had shut it down. The virtually unprecedented offer of government money to a non-state firm highlights how far the global economic downturn has spread, from small exporters that bore most of the initial brunt to bigger companies in more basic industries.

REUTERS

Dow Chemical's Kuwait venture collapses

The government of Kuwait has cancelled an agreement to create K-Dow Petrochemicals, a venture between the Kuwaiti company, Petrochemical Industries, and Dow Chemical that was to be the world's largest maker of polyethylene.

IHT.com

Europe: KPMG warns of Mideast threat to chemicals

Increased competition from the Middle East could decimate the European chemicals industry in years to come, according to a report by KPMG. The report says that if they are to survive, many European chemical manufacturers will need to seek mergers or joint venture opportunities with Middle East companies, which have expanded recently into petrochemicals and enjoy significant cost advantages due to their ready supply of energy and feedstock.

FT.com

India: Plastindia 2009 receives overwhelming response

Plastindia 2009, the 7th International Plastics Exhibition and Conference organised by Plastindia Foundation has received an overwhelming response from exhibitors all around the world. This six-day event will take place from February 04-09, 2009, in New Delhi.

Alibaba.com

India: Recession blues grip chemicals, polymers

As crude oil prices have fallen from USD147 per barrel in mid-July to USD60 at present, all chemicals, solvents, polymers and petrochemicals have also fallen by that extent. When polymer prices were at their peak, many small and medium units have cut production and hence when prices have fallen, the demand has also fallen. According to industry experts, the perception of a further slowdown has resulted in lower inventories or running production capacities with minimum stocks.

Business Standard

China: Oxea to build amines plant in China jointly with the Chengxing Group

The global chemical company Oxea and the Chinese listed Chengxing Group are to form a joint venture for the production of amines and other chemicals. The new plant will primarily serve Oxea's customers in China and Asia, but will also cater to the global markets.

MarketWatch

2008-09-15

China: An analysis of China's phosphorus chemical industry

China has gradually become a large nation of phosphorus chemical production. After 1990s, phosphorus chemical production developed rapidly in phosphorus ore resource-rich areas such as Sichuan, Hubei, Yunnan and Guizhou provinces. Today, the annual production capacity of phosphorus fine chemical products is over 6 million tons.

MarketWatch

India: Punjab Chemicals scouts for new acquisition in Europe and USA

Keen on expanding globally, agrochemicals firm Punjab Chemicals and Crop Protection Ltd on Thursday said it was scouting for acquisitions in the US and Europe to grow its overseas turnover to Rs 300 crore this fiscal. According to Avtar Singh, Director Operations and Business Development, "We are looking at 3 to 4 agrochemicals companies based at USA and Europe for the purpose of acquisition by way of studying their product portfolios and number of registration these companies are having for their products. However, it is at preliminary stage".

The Economic Times

China chemicals starve Indian pharma

Over the past decade, many chemicals factories in India have closed down, as they were unable to compete with imports from China. But during the Olympics, factories around Beijing have been shut in an effort to cut pollution. That has led to a shortage of raw materials, which has pushed up prices everywhere. For drugs manufacturers, this feels like a perfect storm since their margins were already squeezed by the cost of oil and the rising value of the Chinese currency.

BBC

India: GACL ventures with Dow Chemicals

Gujarat Alkaslies and Chemicals Limited (GACL) has formed joint venture with  Dow Chemicals, a US based multinational company, for setting up a Rs 600 crore plant at Dahej. This plant, GACL's first venture with a multinational company will produce two lakh tonnes chlormathan group of chemicals per annum.

Business Standard

Thailand: SCG Chemicals ups sales projection for 2008

Thailand's SCG Chemicals, a major petrochemical producer in Asia-Pacific region, expects its sales revenue to further rise by 25% in 2008 and that too after lowering the ethylene cracker production by 10%. Ethylene production was cut back to balance the impact of soaring feedstock prices.

plastemart.com

India: Tata Chemicals opens Sodium Bicarbonate facility in Netherlands

Tata Chemicals Ltd, world’s second largest producer of Soda Ash, has announced the opening of a new hi-tech Sodium Bicarbonate plant adjacent to its Brunner Mond facility in Delfzijl. The €15m plant ― the first of its kind in the Netherlands ― takes the company’s global production of sodium bicarbonate to 200,000 tonnes per year.

IndiaInfoline.com

India: Emergence of India as a plastics superpower

Indian industry is gearing up to meet the challenges of competition, particularly with China in the east. The difference of Indian and Chinese industries is in terms of capacity.

The Economic Times

Shell is optimistic on Asia-Pacific region

Asia Pacific is the most exciting region for petrochemicals, according to Shell Chemicals Executive Vice President Ben van Beurden. Driven by rapid economic growth in very populous countries ― primarily China, but increasingly in India too ― petrochemicals demand is soaring, making the region the focus for new capacity investments.

fibre2fashion.com

India: Chemicals industry offers excellent investment opportunities

Despite the strong performance, the valuations of the chemicals industry continue to remain reasonable, which offers scope for investment in this sector.

The Economic Times

India: Niche research strengths drive specialty chemicals

Of the chemical industry's diverse segments, Indian players have a special attraction for specialty chemicals. These are high-value added chemicals, produced in smaller quantities, and used in industries ranging from pharmaceuticals to plastics. Therefore, capital outlay is smaller and entry barriers relatively lower.

expresspharmaonline.com

India: Right colours?

Kiri Dyes and Chemicals, a manufacturer of dyes, dye intermediates and chemicals, is planning to integrate backwards by manufacturing basic chemicals---sulphuric acid, oleum and chlorosulphonic acid.

Business Standard

Morocco to increase supply of rock phosphate and phosphoric acid

Morocco will significantly enhance the supply of rock phosphate and phosphoric acid to India required for manufacture of DAP and other complex fertilizers.

PIB

India: Tata Chemicals to set up soda ash plant in Tanzania

Tata Chemicals will be setting up a USD 500 million soda ash manufacturing plant in Tanzania.

Sify

UAE: IPIC and Borealis to develop chemicals complex

Abu Dhabi government-owned IPIC has signed a memorandum of understanding with Austrian subsidiary Borealis to develop a chemicals complex in the United Arab Emirates.

Reuters.com

China may cut export rebates for polluting chemicals

China's environmental watchdog proposed halting export-tax rebates for polluting chemicals to deter manufacturers from industries that damage the environment.

Bloomberg.com

Global chemical supply markets getting more complex

An increasing flow of commodity and specialty chemicals from China, India, the Middle East and Eastern Europe have chemical buyers participating in a more complex global supply chain.

Purchasing.com

India: Tata in $1bn deal for soda ash unit

Tata Group has launched India’s biggest takeover this year with the $1bn agreed acquisition of US-based soda ash producer General Chemical Industrial Products.

FT.com

Middle East: Gulf to account for 15% of global ethylene production by 2020

The Gulf is set to take a leading role in the global petrochemical industry. In 2007, more than 10 million tonnes of ethylene was produced in 2007, or nine per cent of global production. This figure is expected to hit 15 per cent in 2020. Saudi Arabia leads with seven million tonnes.

gulfnews.com