Facts and Figures 2010
Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Chemical Industry Profile ..................................................................................................................... 3 World chemicals sales: geographic breakdown ............................................................................ 3 World chemicals sales by region ..................................................................................................... 4 World exports and imports of chemicals by regional shares ....................................................... 5 EU chemical industry sales by geographic breakdown ................................................................ 6 EU chemicals industry sales by sectoral breakdown .................................................................... 7 EU chemicals industry sales: structure by destination ................................................................ 8 EU chemical industry sales structure ............................................................................................. 9 Added value in EU chemicals and other manufacturing sectors ............................................... 10 EU manufacturing industry: gross operating surplus / turnover ............................................... 11 Contribution of the chemical industry to the EU economy ................................................................ 12 EU chemical industry: number of enterprises, sales and employment by size-class ............. 13 European chemical industry’s public image ................................................................................ 14 International Trade .............................................................................................................................. 15 Extra-EU chemicals trade balance ................................................................................................. 15 Extra-EU chemicals trade by region (exports & imports) ........................................................... 16 Extra-EU chemicals trade flows with major geographic blocs ................................................... 17 EU chemicals trade surplus: sectoral breakdown ....................................................................... 18 EU chemicals trade competitive analysis broken down by region ............................................ 19 Extra EU Chemicals trade flows detailed analysis by sector ..................................................... 20 Extra EU Chemicals trade flows detailed analysis by country ................................................... 21 Growth .................................................................................................................................................. 22 Production, trade and consumption growth................................................................................. 22 Chemicals growth performance against total manufacturing .................................................... 23 EU chemicals production growth: latest trend and outlook ....................................................... 24 EU Chemical outlook ....................................................................................................................... 25 International comparison of production growth .......................................................................... 26 International comparison of production growth (continued) ..................................................... 27 Chemicals sales by country: top 30 .............................................................................................. 28
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Costs .................................................................................................................................................... 29 Cost structure .................................................................................................................................. 29 Labour cost per employee .............................................................................................................. 30 Labour cost per employee and productivity................................................................................. 31 Energy .................................................................................................................................................. 32 EU chemicals* industry energy consumption by source ............................................................ 32 Energy intensity* in the EU chemicals industry ........................................................................... 33 Energy intensity*: European Union versus United States .......................................................... 34 Employment ......................................................................................................................................... 35 Employment in the chemicals industry: EU versus the USA...................................................... 35 Labour productivity ......................................................................................................................... 36 EU manufacturing industry: breakdown of investment per employee ...................................... 37 EU manufacturing industry: breakdown of labour cost per employee ...................................... 38 EU labour productivity: chemicals vs. total manufacturing ....................................................... 39 EU chemicals industry: percentage of workers by level of education ...................................... 40 Investment and R&D ........................................................................................................................... 41 Capital spending in the EU ............................................................................................................. 41 Capital spending by region ............................................................................................................ 42 R&D spending by region................................................................................................................. 43 Total R&D spending ........................................................................................................................ 44 Sustainable Development .................................................................................................................. 45 Greenhouse gas emissions, energy consumption and production* ......................................... 45 Greenhouse gas emissions per unit of energy consumption and per unit of production* ..... 46 Greenhouse gas emissions per production*: EU versus US ...................................................... 47
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Chemical Industry Profile World chemicals sales: geographic breakdown
The European chemical industry can still be portrayed as vibrant and strong. Worldwide competition is getting fiercer, however, as world chemicals sales in 2009 were valued at €1871 billion, a steep decline of 8.4 per cent compared with 2008 due to the spill-over effects of the economic and financial crisis. The €449 billion EU chemical industry is still in a strong position, but has lost its top ranking in terms of sales to Asia, mainly due to the rise of China. Taken together, the European Union, Asia and North American Free Trade Area, account for 89.7 per cent of world turnover.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective World chemicals sales by region
Developments during the previous 10 years from 1999 to 2009 indicate that the European Union was the clear leader in terms of world chemicals sales, but the region has gradually lost ground to Asia (excluding Japan). Comparing 2009 to 1999, the EU contribution to world chemical sales declined by 8.1 percentage points. In fact, the total value of sales in Europe has been growing continuously, but overall world chemical sales are growing at an even faster clip. The value of world chemicals sales increased by 60 per cent in 2009 compared with 1999.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
World exports and imports of chemicals by regional shares World exports of chemicals*, 2009 (share %)
*including intra EU trade
World imports of chemicals*, 2009 (share %)
Source: Cefic Chemdata International
In 2009, the key trading regions were the European Union, Asia –including China and Japan – and the North American Free Trade Agreement. The European Union was the leading exporter and importer of chemicals in the world, accounting for 42 per cent of global trade, defined as the total value of exports plus imports . This includes intra-EU trade, mainly for reasons of comparison with other regions, as their figures include this trade activity as well.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemical industry sales by geographic breakdown
Germany remains the largest chemicals producer in Europe, followed by France, Italy and the United Kingdom. Together, these four countries generate 60 per cent of EU chemicals sales, valued at €269 billion in 2009. The share rises to 88 per cent, valued at €395 billion, when including the Netherlands, Spain, Belgium and Ireland. Sales levels in Poland represent the largest contribution from “new” EU countries holding a 2.1 per cent share of total EU chemicals sales.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals industry sales by sectoral breakdown
Source: Cefic Chemdata International
Output from the EU chemicals industry covers three wide ranges of products: base chemicals, speciality chemicals, and consumer chemicals. Base chemicals cover petrochemicals and derivatives and basic inorganics. They are produced in large volumes, and are sold within the chemical industry itself or to other industries. In 2002, they represented 58 per cent of total EU chemicals sales, increasing in 2009 to 60 per cent. Specialty chemicals cover the auxiliaries for industry, paints & inks, crop protection, and dyes and pigments. Specialty chemicals are produced in small volumes but nevertheless represented 26 per cent of total EU chemicals sales in 2009. Finally, consumer chemicals are sold to final consumers: soaps and detergents, perfumes and cosmetics. Together, they represented 14 per cent of total EU chemicals sales in 2009.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals industry sales: structure by destination
EU chemicals sales are valued at €449 billion in 2009. Sales to EU partner countries have more than doubled during the period from 1995 to 2009 (222 versus 98). The European internal market during that 15-year period has had a profoundly positive effect on the chemical industry. Removing both trade and non-trade barriers inside the EU area has been a key driver for the growth and competitiveness of the EU chemicals industry. The internal market, today numbering 500 million consumers, is a key competitiveness factor. With the accession of ten new EU member states in 2004 and 2007, the internal market has received an intra-trade boost.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemical industry sales structure
By 2009, intra-EU sales - excluding domestic sales – accounted for nearly half of total chemical sales by the sector in the European Union. While intra-EU sales are rising, the importance of domestic sales is decreasing, however, only accounting for 25 per cent of EU sales. Twenty-six per cent of chemicals sales are exported outside of the EU market. The NAFTA trade bloc, EU neighbour countries and Asia are the key markets.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Added value in EU chemicals and other manufacturing sectors
Chemicals form the second leading manufacturing sector, after pharmaceuticals, in terms of value-added per employee in Europe, according to the latest data for the 2006 time period. Behind the two leading groups are basic metals; and radio, television and communication; automotives; and office machinery and computers. The chemical industry‟s value added per employee is 84 per cent higher than the combined average of all manufacturing sectors.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU manufacturing industry: gross operating surplus / turnover
With regard to its gross operating profit, chemicals compares favourably to other manufacturing sectors as well. The ratio of gross operating profits to sales is the 8 th highest in industry and is well above the manufacturing average.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Contribution of the chemical industry to the EU economy
The chemical industry's contribution to the EU gross domestic product amounts to 1.1 per cent. This may seem small at first sight, but should be re-assessed taking into consideration both the shrinking contribution of industry as a whole to GDP in advanced economies (23.7 per cent in 1995 versus 17.6 per cent in 2009 in the EU) along with a rise in services. Additionally, there is a wide contribution of chemical products into all branches of the economy; for example in Germany chemicals are the most important supplier of innovative materials for the industry. Chemicals represent 10 per cent of the supply of input and intermediary products and they show an above average R&D content.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemical industry: number of enterprises, sales and employment by sizeclass
The EU chemical industry comprises 29 000 enterprises (data covering firms with no employees are excluded), 96 per cent of which have less than 250 employees and are considered as small and medium sized enterprises. These account for 28 per cent of sales and 35 per cent of employment. Only 4 per cent of the EU enterprises employ more than 249 employees, generating 72 per cent of total chemicals sales.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
European chemical industry’s public image
In a Cefic-led pan-European survey released in 2010 on public perceptions of the EU chemical industry, survey respondents ranked the chemicals sector sixth out of eight benchmark industries in terms of having a favourable image and ranked it below the overall average for all sectors. The image of the chemical industry in 2010 is still at the same level as in 2008.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
International Trade Extra-EU chemicals trade balance
As a historically important player in the global chemicals market, the EU chemical industry has been in a position to benefit from trade opportunities. In 2009, the EU generated an extra-EU trade surplus of €42.6 billion, which represents about €3.4 billion more compared with 2008. As a consequence of the economic crisis, extra-EU chemical exports – those exports sent outside of the EU internal market – declined in 2009 by 10.2 per cent. Imports to non-EU area, fell by 18.4 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Extra-EU chemicals trade by region (exports & imports)
Extra-EU chemicals trade flow, calculated as total exports plus imports, was mainly attributable in 2009 to the North American Free Trade Agreement market (NAFTA), with 27.5 per cent of total flow. Asia, excluding Japan, was 27.2 per cent while the share of trade flow of other European countries was 25.6 per cent during the same period. Taken together, the NAFTA, Asia and „Rest of Europe‟ markets contributed in 2009 to 80.3 per cent of extra-EU chemicals trade. Comparing 2009 with 1999, the contribution of the three main partners of the European Union increased by 13.5 percentage points from 66.8 per cent to 80.3 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Extra-EU chemicals trade flows with major geographic blocs
The three major geographic blocs trading with the European Union in 2009 were: North America, Asia (excluding Japan), and the Rest of Europe. The European Union has a surplus with each main trading region – NAFTA, Asia, Japan, Latin America, Africa, Rest of Europe and Africa and has broadly retained its market share in global chemicals sales during the last decade. The Rest of Europe market plays a major role in 2009, with €10 billion in net trade surplus in chemicals for the European Union. The Trade Competitiveness Indicator (TCI) –an indicator that compares the trade balance to the total trade, namely exports plus imports of a region– reveals a deteriorating competitiveness, however, of the overall EU chemicals industry since 2003. This means that total chemical imports are growing faster than total chemical exports.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals trade surplus: sectoral breakdown
The EU chemicals trade surplus in 2009 amounted to €42.6 billion. Consumer chemicals accounted for 32 per cent of the EU chemicals trade surplus with a trade surplus of €13.5, billion. Specialty chemicals are the second strongest sector on the world markets, with €13.4 billion, followed by petrochemicals at €9.1 billion and polymers at €7.6 billion. Basic inorganics experienced a trade deficit of €1 billion, the only sector during 2009 with a trade deficit. The sectoral analysis shows specialty chemicals and consumer chemicals continue to lose ground. The trade surplus in these sectors decreased by (7.5 per cent) and (6.2 per cent) respectively in 2009 compared to 2008. However, petrochemicals and polymers in 2009 registered an increase in their trade surplus of 38 per cent and 31 per cent respectively.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals trade competitive analysis broken down by region
A look at the EU trade balance in relation to a number of key countries and regions shows that its position is deteriorating with certain key countries in Asia for almost all sub-sectors. India and China are the only two countries with which the European Union currently has a trade deficit for all chemical sub-sectors. Continued trade development with the Middle East indicates that this region increasingly uses its feedstock availability, namely petroleum, to develop an integrated chemicals value chain and to strengthen its position in a wider range of basic chemicals. Russia has up to now only been successful in using its competitive advantage in raw materials for base chemicals.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Extra EU Chemicals trade flows detailed analysis by sector
The trade position of certain important sub-sectors, in particular the raw material and energy-intensive parts of the chemicals industry, namely basic organics such as petrochemicals, and basic inorganics such as fertilizers, shows signs of serious erosion. Their global competitive position is at risk.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Extra EU Chemicals trade flows detailed analysis by country
International trade is vital for growth and employment of the European chemicals industry. The industry has placed itself at the centre of global trade and thus depends vitally on open markets. As the most rapid growth is concentrated in the emerging economies, favourable access to these markets is highly important.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Growth Production, trade and consumption growth
During the period from 2004 to 2009, chemicals sales and consumption registered a small decline. Chemicals sales declined slightly slower than consumption (-0.2% versus -0.4%). Import growth during the same five-year period experienced a trend rate of 2.5 per cent, slightly exceeding the 2.2 per cent trend rate of export growth.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Chemicals growth performance against total manufacturing
In the 10-year period from 1999 to 2009, the chemical industry had an average growth rate of 0.4 per cent, a rate slightly higher than the 0.3 per cent average growth rate for total manufacturing. Both averages were extremely low as compared to the long-term averages. These low growth rates were the consequence of dramatic declines in chemical production levels during the 2009 economic downturn as compared with pre-crisis level. In addition to providing for current customers needs, the chemical industry is constantly developing new and improved products and processes, thus creating and serving completely new markets. This enables other industries to be more efficient and productive by using more effective substitute materials and products. Chemicals serve as input into essentially all sectors of the economy, and consequently depend on their economic performance.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals production growth: latest trend and outlook
The EU chemicals industry was profoundly affected by the spill-over effects of the economic and financial crisis. The magnitude of the economic crisis- which started during the second half of 2008- was much more severe than expected. Many companies were certainly not expecting such a dramatic downturn. Data that covers activity through 2009 indicate that chemical companies are experiencing strong pressure on margins due in particular to the lack of demand from customers and weak consumer spending. Moreover, the European chemicals industry is facing additional pressure from competitors outside of Europe, mainly from the Middle East where new petrochemical capacity is now built-up and very likely a large proportion of its output will find its way into European markets. All in all, the European chemicals industry reached its lowest point in December 2008; production since that time has dragged along, posting at best mild growth each month but remains sharply down compared to figures in 2008. Output in the EU chemicals industry experienced a decline of 11.4 per cent in 2009 compared to 2008.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU Chemical outlook
Looking ahead: Cefic forecasts a year-on-year production growth of 9.5 per cent for 2010 and 2 per cent in 2011 (Source, Economic Outlook, June 2010). Basic chemicals sectors are now registering the fastest rebounds, but in all cases chemicals output remains well below pre-2008 levels. Growth in chemicals production has continued more strongly and for longer than was expected at the time of our November 2009 forecast. The overall economic recovery in Europe, however, remains fragile. Consequently, Cefic still expects a pause in the rate of growth of most commodity chemicals sectors, since underlying market demand must firm up. A recovery built on inventory corrections alone is not sustainable. Surveys also indicate that capacity utilisation within the industry remains well below normal levels. As there remain significant uncertainties in the economic and financial environment, any defaults on sovereign debt could trigger renewed problems for banks who would suffer from non performing loan books. The chemicals sector would be sensitive to further economic shocks resulting from such a scenario. The development of the EU chemicals industry will also depend on the effectiveness of consolidation measures taken within individual EU countries. The European chemicals industry continues to face relentless global competition. Access to raw materials and energy at globally competitive prices remains a prerequisite for a successful recovery. Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
International comparison of production growth
During the period from 2004 to 2009, the EU chemical industry showed the lowest growth rate compared with the biggest regions in the world. The EU chemical sector declined by 1.5 per cent, well below the world chemical industry average growth rate of 3.6 per cent. The Asia-Pacific region is booming, with average growth rates in chemicals of 10.8 per cent during the past five years. Asia is heavily influenced by the extraordinary performance of the Chinese chemicals sector and a booming economy and industrial sector.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
International comparison of production growth (continued)
The long-term trend for chemicals production shows that during the years 1999 to 2009, the European chemical industry showed the lowest growth, a meagre rate of only 0.1 per cent. The Asia-Pacific region registered a 9.7 per cent growth rate and Latin America posted a 3.6 per cent one, both relatively strong trend rates that began several years ago.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Chemicals sales by country: top 30
In 2009, the 30 largest chemical-producing countries had a combined sales turnover of €1685 billion. Twelve of the top 30 major countries are Asian, generating chemicals sales of €753 billion. This figure represents nearly 45 per cent of the top 30 and 40 per cent of the share of world chemical production. Nine of the top 30 are members of the European Union, now numbering 27 member states, and representing 22 per cent of world chemicals sales.
Sales (euro billin) EU Rest of Europe NAFTA Latin America Asia Others Top 30
2009 sales
Number of countries
share (top 30)
world share
404 39 396 79 753 14 1685
9 2 3 3 12 1 30
24.0% 2.3% 23.5% 4.7% 44.7% 0.8% 100%
22% 2% 21% 4% 40% 1% 90%
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Costs Cost structure
In 2006, purchases by the EU chemical industry accounted for 76.3 per cent of the sales value, covering both trading and other purchases costs. Trading represents the cost of chemicals purchased from third parties and resold in their original condition, and amounts to 6.7 per cent of the sales value. The other purchases costs accounted for some 69.6 per cent of the chemicals sales value, which cover partially energy costs. It needs to be noted that energy costs from the purchase of feedstock, fuel and power represent a key factor in cost competitiveness within the EU chemicals industry. Certain sub-sectors are much more sensitive to energy cost as for them it represents a more important input factor – for example the chlor alkali industry. The remaining 23.7 per cent constitutes the payroll (12.5 per cent) and the gross operating surplus (11.2 per cent). The gross operating surplus is defined as profits before taxes, financial charges and depreciation.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Labour cost per employee
Payroll accounts for 12.5 per cent of chemicals production costs, a significant share and thus a major factor in competitiveness. Labour cost per employee in the EU chemical industry has increased by an average 3.3 per cent per annum from1999 to 2009. The chemical industry has a highly trained and well educated workforce, which redistributes part of its economic profits to employees via high-wage, competitive salaries.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Labour cost per employee and productivity
Productivity rates in the EU chemical industry during the period 1999 to 2009 increased at a significant trend rate of 2.2 per cent. The productivity rate is rising 1.1 per cent slower than the labour cost per employee. The modestly rising labour productivity trend during the past 10 years has been considerably affected by the economic and financial crisis which started in 2008. The conditions in 2009 were dramatic for the EU chemicals industry as production declined by 11.4 per cent compared with 2008. Taking out 2009 performance levels, the analysis shows that labour productivity and labour cost per employee are increasing at a relatively similar rate of 3.3 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Energy EU chemicals* industry energy consumption by source
The chemical industry transforms energy and raw materials into products required by other industrial sectors as well as by final consumers. The cost of these two inputs is a prime factor in competitiveness on world markets. Energy sector consumption includes coal, oil products, natural gas, electricity and renewables, using them as raw materials – known as feedstock – and as power and fuel. In 2008, the European chemical industry, including pharmaceuticals, used a total of 138.7 million tonnes of oil equivalent (TOE) of energy. Feedstock accounted for 60 per cent of total energy products and fuel and power for nearly 40 per cent, taking all sources of energy into account. This means that most of the energy used by the chemical industry as feedstock is stored in products and can still be reused via recycling. Regarding other raw materials, the chemical industry also uses a wide variety of natural and processed starting materials, including metals, minerals and agricultural raw materials such as sugar, starch and fats.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Energy intensity* in the EU chemicals industry
For many years, the EU chemical industry, including pharmaceuticals, has made strenuous efforts to improve energy efficiency, reducing its fuel and power energy consumption per unit of production. In 2008, energy intensity, or the energy consumption per unit of production in the chemical industry, including pharmaceuticals, was 41 per cent lower than in 1995.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Energy intensity*: European Union versus United States
Energy efficiency is subject to decreasing returns: the higher the level of energy efficiency attained, the more difficult it becomes to make further improvements. However, over the previous 14 years from 1995 to 2008, the chemical industry has succeeded in increasing continuously its output and at the same time keeping its energy input constant, and consequently lowered its energy intensity significantly by 4 per cent per year on average. The Chart below shows that energy intensity in the US chemicals industry has declined over the same period (1995-2008) but not as much as in Europe where energy intensity slowed by 3.4 per cent per year on average.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Employment Employment in the chemicals industry: EU versus the USA
In the EU, some 29,000 chemical companies employ a total staff of about 1.205 million. Employment in the EU chemical industry has decreased by 2 per cent during the past 10 years from 1999 to 2009. Employment in the United States has experienced a steeper decline for chemicals over the same period, declining 3.3 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Labour productivity
The EU chemical industry is a leading industry with high skills and productivity, notably due to high investment per employee and highly educated and trained employees. As a consequence, labour productivity in the EU chemical industry rose at an average annual rate of 2.2 per cent during the 10 years from 1999 to 2009.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU manufacturing industry: breakdown of investment per employee
Investment per employee and personnel cost are two important factors for the international competitiveness of the European chemical industry. Workplace equipment in the chemical industry is of top quality and investment per employee is double the manufacturing average. What is interesting to note is that the chemical sector in Europe is first in terms of investment per employee among all manufacturing sectors.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU manufacturing industry: breakdown of labour cost per employee
The labour force employed in the chemical industry is more qualified, trained and better paid than the average industrial worker. Personnel costs for the EU chemical industry are 47 per cent higher than the average of other manufacturing sectors. After pharmaceuticals, the chemical industry is the second leading sector in terms of labour cost per employee, followed by the automotive and “other transparent equipment” sectors.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU labour productivity: chemicals vs. total manufacturing
Due to intensifying global competition, the EU chemical industry has taken vigorous restructuring and cost-saving steps in order to improve its competitiveness over the last decade. As a consequence, labour productivity in the chemical industry has been growing at an average annual growth from 1999 to 2009 of 2.2 per cent, faster than the 1.6 per cent labour productivity rate in the total manufacturing sector for the same ten-year period.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals industry: percentage of workers by level of education
Employees with medium and high education account for around 80 per cent of workers in the chemical industry, based on data 2005. While the percentage of people with lower and medium education has been decreasing since 2001, workers with a high level of education are gaining importance, accounting for almost 27 per cent in 2005. This figure is important because the success of the European chemical industry depends on its well trained employees. Skills and education are an important factor in international competitiveness and the European chemical industry is facing a global challenge for talent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Investment and R&D Capital spending in the EU
Investments in innovation, including research & development (R&D) are key elements in securing the future of the chemical industry. They not only promote the adaptation to and the development of new technologies and innovation, but are necessary prerequisites for the continuous adjustment of corporate structures to the needs of the marketplace. It is worth noting that the currently available figures on R&D investments give only part of the picture as it is only the starting point on the path to successful innovation. Innovation spending in companies is increasingly included under business development. After some choppy movements in previous years, the ratio of capital spending to sales of the chemical industry, including pharmaceuticals, in the European Union has been declining since 1999 rather steadily. In absolute figures, investment had been growing at a consistent pace between 1995 and 2000 and then declined almost continuously till 2004, with a slight recovery in the following three years from 2005 to 2007.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Capital spending by region
*including pharmaceuticals, **estimated data for Japan
Source: Cefic Chemdata International
The ratio of capital spending to sales in the chemical industry, including pharmaceuticals, in the European Union has been declining since 1999. A similar trend has occurred in both Japan and NAFTA (North American Free Trade Area). From 1995 to 2006, Japan has registered the highest ratio at 4.9 per cent, followed by NAFTA (at 4.8 per cent) and the European Union, which posted a 4.7 per cent ratio.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective R&D spending by region
**estimated for EU13
Source: Cefic Chemdata International
The high value-added products of the chemical industry continuously open up new fields of application and pave the way to progress and innovation in other industries. Typical examples are health, food, consumer goods, aerospace and car manufacturing, telecommunications, electrical engineering and electronics. Wide variations in research and development (R&D) efforts are observed across the chemical industry. Turning R&D into innovation is becoming increasingly important in relation to the competitiveness of the region. Analysing the ratio of R&D spending to sales of the chemical industry it can be observed that during the 16-year time period from 1991 to 2007, the United States had, on average, a slightly higher ratio of 2.3 per cent than the EU ratio of 2.1 per cent. But these two respective ratios have decreased to similar levels in recent years. The same ratio in Japan is 5.2 per cent, around twice as high as the US and EU trading regions.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Total R&D spending
EU chemicals account for 8 per cent of total EU manufacturing spending in research and development (R&D)(data 2003). If the R&D spending of the pharmaceutical sector is included, chemicals are the top investor in R&D in European manufacturing, accounting for almost one-fourth of total R&D investment of manufacturing.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Sustainable Development Greenhouse gas emissions, energy consumption and production*
Between 1990 and 2008, production in the EU chemical industry, including pharmaceuticals, rose by 69 per cent, while total energy consumption was rather stable and greenhouse gas (GHG) emissions fell by 42 per cent. The chemical industry works to develop cleaner and safer technologies, waste-recycling processes and new products to safeguard the environment include biotechnology processes, catalysts, membranes and desulphurisation. One aspect is increased energy efficiency. Besides increasing the energy efficiency of its own processes, the chemical industry also helps to increase the energy efficiency of downstream users and their products through innovative inputs.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Greenhouse gas emissions per unit of energy consumption and per unit of production*
Greenhouse gas (GHG) emissions per unit of energy consumption have been reduced by 41.5 per cent and GHG emissions per unit of production, or GHG intensity, by 65.5 per cent since 1990. This shows the enormous effort by the chemical industry to minimise the environmental impact of its production.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Greenhouse gas emissions per production*: EU versus US
In comparison to the US chemical industry, the EU chemical sector has reduced its greenhouse gas (GHG) emission intensity, calculated as emissions per unit of production, by a relatively greater amount and is more GHG emission-efficient. The US chemical industry has decreased its emission intensity by 35.3 per cent since 1990, whereas the European Union chemical industry has cut its GHG emissions by 65.5 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Chemical Industry Profile ..................................................................................................................... 3 World chemicals sales: geographic breakdown ............................................................................ 3 World chemicals sales by region ..................................................................................................... 4 World exports and imports of chemicals by regional shares ....................................................... 5 EU chemical industry sales by geographic breakdown ................................................................ 6 EU chemicals industry sales by sectoral breakdown .................................................................... 7 EU chemicals industry sales: structure by destination ................................................................ 8 EU chemical industry sales structure ............................................................................................. 9 Added value in EU chemicals and other manufacturing sectors ............................................... 10 EU manufacturing industry: gross operating surplus / turnover ............................................... 11 Contribution of the chemical industry to the EU economy ................................................................ 12 EU chemical industry: number of enterprises, sales and employment by size-class ............. 13 European chemical industry’s public image ................................................................................ 14 International Trade .............................................................................................................................. 15 Extra-EU chemicals trade balance ................................................................................................. 15 Extra-EU chemicals trade by region (exports & imports) ........................................................... 16 Extra-EU chemicals trade flows with major geographic blocs ................................................... 17 EU chemicals trade surplus: sectoral breakdown ....................................................................... 18 EU chemicals trade competitive analysis broken down by region ............................................ 19 Extra EU Chemicals trade flows detailed analysis by sector ..................................................... 20 Extra EU Chemicals trade flows detailed analysis by country ................................................... 21 Growth .................................................................................................................................................. 22 Production, trade and consumption growth................................................................................. 22 Chemicals growth performance against total manufacturing .................................................... 23 EU chemicals production growth: latest trend and outlook ....................................................... 24 EU Chemical outlook ....................................................................................................................... 25 International comparison of production growth .......................................................................... 26 International comparison of production growth (continued) ..................................................... 27 Chemicals sales by country: top 30 .............................................................................................. 28
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Costs .................................................................................................................................................... 29 Cost structure .................................................................................................................................. 29 Labour cost per employee .............................................................................................................. 30 Labour cost per employee and productivity................................................................................. 31 Energy .................................................................................................................................................. 32 EU chemicals* industry energy consumption by source ............................................................ 32 Energy intensity* in the EU chemicals industry ........................................................................... 33 Energy intensity*: European Union versus United States .......................................................... 34 Employment ......................................................................................................................................... 35 Employment in the chemicals industry: EU versus the USA...................................................... 35 Labour productivity ......................................................................................................................... 36 EU manufacturing industry: breakdown of investment per employee ...................................... 37 EU manufacturing industry: breakdown of labour cost per employee ...................................... 38 EU labour productivity: chemicals vs. total manufacturing ....................................................... 39 EU chemicals industry: percentage of workers by level of education ...................................... 40 Investment and R&D ........................................................................................................................... 41 Capital spending in the EU ............................................................................................................. 41 Capital spending by region ............................................................................................................ 42 R&D spending by region................................................................................................................. 43 Total R&D spending ........................................................................................................................ 44 Sustainable Development .................................................................................................................. 45 Greenhouse gas emissions, energy consumption and production* ......................................... 45 Greenhouse gas emissions per unit of energy consumption and per unit of production* ..... 46 Greenhouse gas emissions per production*: EU versus US ...................................................... 47
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Chemical Industry Profile World chemicals sales: geographic breakdown
The European chemical industry can still be portrayed as vibrant and strong. Worldwide competition is getting fiercer, however, as world chemicals sales in 2009 were valued at €1871 billion, a steep decline of 8.4 per cent compared with 2008 due to the spill-over effects of the economic and financial crisis. The €449 billion EU chemical industry is still in a strong position, but has lost its top ranking in terms of sales to Asia, mainly due to the rise of China. Taken together, the European Union, Asia and North American Free Trade Area, account for 89.7 per cent of world turnover.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective World chemicals sales by region
Developments during the previous 10 years from 1999 to 2009 indicate that the European Union was the clear leader in terms of world chemicals sales, but the region has gradually lost ground to Asia (excluding Japan). Comparing 2009 to 1999, the EU contribution to world chemical sales declined by 8.1 percentage points. In fact, the total value of sales in Europe has been growing continuously, but overall world chemical sales are growing at an even faster clip. The value of world chemicals sales increased by 60 per cent in 2009 compared with 1999.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
World exports and imports of chemicals by regional shares World exports of chemicals*, 2009 (share %)
*including intra EU trade
World imports of chemicals*, 2009 (share %)
Source: Cefic Chemdata International
In 2009, the key trading regions were the European Union, Asia –including China and Japan – and the North American Free Trade Agreement. The European Union was the leading exporter and importer of chemicals in the world, accounting for 42 per cent of global trade, defined as the total value of exports plus imports . This includes intra-EU trade, mainly for reasons of comparison with other regions, as their figures include this trade activity as well.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemical industry sales by geographic breakdown
Germany remains the largest chemicals producer in Europe, followed by France, Italy and the United Kingdom. Together, these four countries generate 60 per cent of EU chemicals sales, valued at €269 billion in 2009. The share rises to 88 per cent, valued at €395 billion, when including the Netherlands, Spain, Belgium and Ireland. Sales levels in Poland represent the largest contribution from “new” EU countries holding a 2.1 per cent share of total EU chemicals sales.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals industry sales by sectoral breakdown
Source: Cefic Chemdata International
Output from the EU chemicals industry covers three wide ranges of products: base chemicals, speciality chemicals, and consumer chemicals. Base chemicals cover petrochemicals and derivatives and basic inorganics. They are produced in large volumes, and are sold within the chemical industry itself or to other industries. In 2002, they represented 58 per cent of total EU chemicals sales, increasing in 2009 to 60 per cent. Specialty chemicals cover the auxiliaries for industry, paints & inks, crop protection, and dyes and pigments. Specialty chemicals are produced in small volumes but nevertheless represented 26 per cent of total EU chemicals sales in 2009. Finally, consumer chemicals are sold to final consumers: soaps and detergents, perfumes and cosmetics. Together, they represented 14 per cent of total EU chemicals sales in 2009.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals industry sales: structure by destination
EU chemicals sales are valued at €449 billion in 2009. Sales to EU partner countries have more than doubled during the period from 1995 to 2009 (222 versus 98). The European internal market during that 15-year period has had a profoundly positive effect on the chemical industry. Removing both trade and non-trade barriers inside the EU area has been a key driver for the growth and competitiveness of the EU chemicals industry. The internal market, today numbering 500 million consumers, is a key competitiveness factor. With the accession of ten new EU member states in 2004 and 2007, the internal market has received an intra-trade boost.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemical industry sales structure
By 2009, intra-EU sales - excluding domestic sales – accounted for nearly half of total chemical sales by the sector in the European Union. While intra-EU sales are rising, the importance of domestic sales is decreasing, however, only accounting for 25 per cent of EU sales. Twenty-six per cent of chemicals sales are exported outside of the EU market. The NAFTA trade bloc, EU neighbour countries and Asia are the key markets.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Added value in EU chemicals and other manufacturing sectors
Chemicals form the second leading manufacturing sector, after pharmaceuticals, in terms of value-added per employee in Europe, according to the latest data for the 2006 time period. Behind the two leading groups are basic metals; and radio, television and communication; automotives; and office machinery and computers. The chemical industry‟s value added per employee is 84 per cent higher than the combined average of all manufacturing sectors.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU manufacturing industry: gross operating surplus / turnover
With regard to its gross operating profit, chemicals compares favourably to other manufacturing sectors as well. The ratio of gross operating profits to sales is the 8 th highest in industry and is well above the manufacturing average.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Contribution of the chemical industry to the EU economy
The chemical industry's contribution to the EU gross domestic product amounts to 1.1 per cent. This may seem small at first sight, but should be re-assessed taking into consideration both the shrinking contribution of industry as a whole to GDP in advanced economies (23.7 per cent in 1995 versus 17.6 per cent in 2009 in the EU) along with a rise in services. Additionally, there is a wide contribution of chemical products into all branches of the economy; for example in Germany chemicals are the most important supplier of innovative materials for the industry. Chemicals represent 10 per cent of the supply of input and intermediary products and they show an above average R&D content.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemical industry: number of enterprises, sales and employment by sizeclass
The EU chemical industry comprises 29 000 enterprises (data covering firms with no employees are excluded), 96 per cent of which have less than 250 employees and are considered as small and medium sized enterprises. These account for 28 per cent of sales and 35 per cent of employment. Only 4 per cent of the EU enterprises employ more than 249 employees, generating 72 per cent of total chemicals sales.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
European chemical industry’s public image
In a Cefic-led pan-European survey released in 2010 on public perceptions of the EU chemical industry, survey respondents ranked the chemicals sector sixth out of eight benchmark industries in terms of having a favourable image and ranked it below the overall average for all sectors. The image of the chemical industry in 2010 is still at the same level as in 2008.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
International Trade Extra-EU chemicals trade balance
As a historically important player in the global chemicals market, the EU chemical industry has been in a position to benefit from trade opportunities. In 2009, the EU generated an extra-EU trade surplus of €42.6 billion, which represents about €3.4 billion more compared with 2008. As a consequence of the economic crisis, extra-EU chemical exports – those exports sent outside of the EU internal market – declined in 2009 by 10.2 per cent. Imports to non-EU area, fell by 18.4 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Extra-EU chemicals trade by region (exports & imports)
Extra-EU chemicals trade flow, calculated as total exports plus imports, was mainly attributable in 2009 to the North American Free Trade Agreement market (NAFTA), with 27.5 per cent of total flow. Asia, excluding Japan, was 27.2 per cent while the share of trade flow of other European countries was 25.6 per cent during the same period. Taken together, the NAFTA, Asia and „Rest of Europe‟ markets contributed in 2009 to 80.3 per cent of extra-EU chemicals trade. Comparing 2009 with 1999, the contribution of the three main partners of the European Union increased by 13.5 percentage points from 66.8 per cent to 80.3 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Extra-EU chemicals trade flows with major geographic blocs
The three major geographic blocs trading with the European Union in 2009 were: North America, Asia (excluding Japan), and the Rest of Europe. The European Union has a surplus with each main trading region – NAFTA, Asia, Japan, Latin America, Africa, Rest of Europe and Africa and has broadly retained its market share in global chemicals sales during the last decade. The Rest of Europe market plays a major role in 2009, with €10 billion in net trade surplus in chemicals for the European Union. The Trade Competitiveness Indicator (TCI) –an indicator that compares the trade balance to the total trade, namely exports plus imports of a region– reveals a deteriorating competitiveness, however, of the overall EU chemicals industry since 2003. This means that total chemical imports are growing faster than total chemical exports.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals trade surplus: sectoral breakdown
The EU chemicals trade surplus in 2009 amounted to €42.6 billion. Consumer chemicals accounted for 32 per cent of the EU chemicals trade surplus with a trade surplus of €13.5, billion. Specialty chemicals are the second strongest sector on the world markets, with €13.4 billion, followed by petrochemicals at €9.1 billion and polymers at €7.6 billion. Basic inorganics experienced a trade deficit of €1 billion, the only sector during 2009 with a trade deficit. The sectoral analysis shows specialty chemicals and consumer chemicals continue to lose ground. The trade surplus in these sectors decreased by (7.5 per cent) and (6.2 per cent) respectively in 2009 compared to 2008. However, petrochemicals and polymers in 2009 registered an increase in their trade surplus of 38 per cent and 31 per cent respectively.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals trade competitive analysis broken down by region
A look at the EU trade balance in relation to a number of key countries and regions shows that its position is deteriorating with certain key countries in Asia for almost all sub-sectors. India and China are the only two countries with which the European Union currently has a trade deficit for all chemical sub-sectors. Continued trade development with the Middle East indicates that this region increasingly uses its feedstock availability, namely petroleum, to develop an integrated chemicals value chain and to strengthen its position in a wider range of basic chemicals. Russia has up to now only been successful in using its competitive advantage in raw materials for base chemicals.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Extra EU Chemicals trade flows detailed analysis by sector
The trade position of certain important sub-sectors, in particular the raw material and energy-intensive parts of the chemicals industry, namely basic organics such as petrochemicals, and basic inorganics such as fertilizers, shows signs of serious erosion. Their global competitive position is at risk.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Extra EU Chemicals trade flows detailed analysis by country
International trade is vital for growth and employment of the European chemicals industry. The industry has placed itself at the centre of global trade and thus depends vitally on open markets. As the most rapid growth is concentrated in the emerging economies, favourable access to these markets is highly important.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Growth Production, trade and consumption growth
During the period from 2004 to 2009, chemicals sales and consumption registered a small decline. Chemicals sales declined slightly slower than consumption (-0.2% versus -0.4%). Import growth during the same five-year period experienced a trend rate of 2.5 per cent, slightly exceeding the 2.2 per cent trend rate of export growth.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Chemicals growth performance against total manufacturing
In the 10-year period from 1999 to 2009, the chemical industry had an average growth rate of 0.4 per cent, a rate slightly higher than the 0.3 per cent average growth rate for total manufacturing. Both averages were extremely low as compared to the long-term averages. These low growth rates were the consequence of dramatic declines in chemical production levels during the 2009 economic downturn as compared with pre-crisis level. In addition to providing for current customers needs, the chemical industry is constantly developing new and improved products and processes, thus creating and serving completely new markets. This enables other industries to be more efficient and productive by using more effective substitute materials and products. Chemicals serve as input into essentially all sectors of the economy, and consequently depend on their economic performance.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals production growth: latest trend and outlook
The EU chemicals industry was profoundly affected by the spill-over effects of the economic and financial crisis. The magnitude of the economic crisis- which started during the second half of 2008- was much more severe than expected. Many companies were certainly not expecting such a dramatic downturn. Data that covers activity through 2009 indicate that chemical companies are experiencing strong pressure on margins due in particular to the lack of demand from customers and weak consumer spending. Moreover, the European chemicals industry is facing additional pressure from competitors outside of Europe, mainly from the Middle East where new petrochemical capacity is now built-up and very likely a large proportion of its output will find its way into European markets. All in all, the European chemicals industry reached its lowest point in December 2008; production since that time has dragged along, posting at best mild growth each month but remains sharply down compared to figures in 2008. Output in the EU chemicals industry experienced a decline of 11.4 per cent in 2009 compared to 2008.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU Chemical outlook
Looking ahead: Cefic forecasts a year-on-year production growth of 9.5 per cent for 2010 and 2 per cent in 2011 (Source, Economic Outlook, June 2010). Basic chemicals sectors are now registering the fastest rebounds, but in all cases chemicals output remains well below pre-2008 levels. Growth in chemicals production has continued more strongly and for longer than was expected at the time of our November 2009 forecast. The overall economic recovery in Europe, however, remains fragile. Consequently, Cefic still expects a pause in the rate of growth of most commodity chemicals sectors, since underlying market demand must firm up. A recovery built on inventory corrections alone is not sustainable. Surveys also indicate that capacity utilisation within the industry remains well below normal levels. As there remain significant uncertainties in the economic and financial environment, any defaults on sovereign debt could trigger renewed problems for banks who would suffer from non performing loan books. The chemicals sector would be sensitive to further economic shocks resulting from such a scenario. The development of the EU chemicals industry will also depend on the effectiveness of consolidation measures taken within individual EU countries. The European chemicals industry continues to face relentless global competition. Access to raw materials and energy at globally competitive prices remains a prerequisite for a successful recovery. Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
International comparison of production growth
During the period from 2004 to 2009, the EU chemical industry showed the lowest growth rate compared with the biggest regions in the world. The EU chemical sector declined by 1.5 per cent, well below the world chemical industry average growth rate of 3.6 per cent. The Asia-Pacific region is booming, with average growth rates in chemicals of 10.8 per cent during the past five years. Asia is heavily influenced by the extraordinary performance of the Chinese chemicals sector and a booming economy and industrial sector.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
International comparison of production growth (continued)
The long-term trend for chemicals production shows that during the years 1999 to 2009, the European chemical industry showed the lowest growth, a meagre rate of only 0.1 per cent. The Asia-Pacific region registered a 9.7 per cent growth rate and Latin America posted a 3.6 per cent one, both relatively strong trend rates that began several years ago.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Chemicals sales by country: top 30
In 2009, the 30 largest chemical-producing countries had a combined sales turnover of €1685 billion. Twelve of the top 30 major countries are Asian, generating chemicals sales of €753 billion. This figure represents nearly 45 per cent of the top 30 and 40 per cent of the share of world chemical production. Nine of the top 30 are members of the European Union, now numbering 27 member states, and representing 22 per cent of world chemicals sales.
Sales (euro billin) EU Rest of Europe NAFTA Latin America Asia Others Top 30
2009 sales
Number of countries
share (top 30)
world share
404 39 396 79 753 14 1685
9 2 3 3 12 1 30
24.0% 2.3% 23.5% 4.7% 44.7% 0.8% 100%
22% 2% 21% 4% 40% 1% 90%
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Costs Cost structure
In 2006, purchases by the EU chemical industry accounted for 76.3 per cent of the sales value, covering both trading and other purchases costs. Trading represents the cost of chemicals purchased from third parties and resold in their original condition, and amounts to 6.7 per cent of the sales value. The other purchases costs accounted for some 69.6 per cent of the chemicals sales value, which cover partially energy costs. It needs to be noted that energy costs from the purchase of feedstock, fuel and power represent a key factor in cost competitiveness within the EU chemicals industry. Certain sub-sectors are much more sensitive to energy cost as for them it represents a more important input factor – for example the chlor alkali industry. The remaining 23.7 per cent constitutes the payroll (12.5 per cent) and the gross operating surplus (11.2 per cent). The gross operating surplus is defined as profits before taxes, financial charges and depreciation.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Labour cost per employee
Payroll accounts for 12.5 per cent of chemicals production costs, a significant share and thus a major factor in competitiveness. Labour cost per employee in the EU chemical industry has increased by an average 3.3 per cent per annum from1999 to 2009. The chemical industry has a highly trained and well educated workforce, which redistributes part of its economic profits to employees via high-wage, competitive salaries.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Labour cost per employee and productivity
Productivity rates in the EU chemical industry during the period 1999 to 2009 increased at a significant trend rate of 2.2 per cent. The productivity rate is rising 1.1 per cent slower than the labour cost per employee. The modestly rising labour productivity trend during the past 10 years has been considerably affected by the economic and financial crisis which started in 2008. The conditions in 2009 were dramatic for the EU chemicals industry as production declined by 11.4 per cent compared with 2008. Taking out 2009 performance levels, the analysis shows that labour productivity and labour cost per employee are increasing at a relatively similar rate of 3.3 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Energy EU chemicals* industry energy consumption by source
The chemical industry transforms energy and raw materials into products required by other industrial sectors as well as by final consumers. The cost of these two inputs is a prime factor in competitiveness on world markets. Energy sector consumption includes coal, oil products, natural gas, electricity and renewables, using them as raw materials – known as feedstock – and as power and fuel. In 2008, the European chemical industry, including pharmaceuticals, used a total of 138.7 million tonnes of oil equivalent (TOE) of energy. Feedstock accounted for 60 per cent of total energy products and fuel and power for nearly 40 per cent, taking all sources of energy into account. This means that most of the energy used by the chemical industry as feedstock is stored in products and can still be reused via recycling. Regarding other raw materials, the chemical industry also uses a wide variety of natural and processed starting materials, including metals, minerals and agricultural raw materials such as sugar, starch and fats.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Energy intensity* in the EU chemicals industry
For many years, the EU chemical industry, including pharmaceuticals, has made strenuous efforts to improve energy efficiency, reducing its fuel and power energy consumption per unit of production. In 2008, energy intensity, or the energy consumption per unit of production in the chemical industry, including pharmaceuticals, was 41 per cent lower than in 1995.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Energy intensity*: European Union versus United States
Energy efficiency is subject to decreasing returns: the higher the level of energy efficiency attained, the more difficult it becomes to make further improvements. However, over the previous 14 years from 1995 to 2008, the chemical industry has succeeded in increasing continuously its output and at the same time keeping its energy input constant, and consequently lowered its energy intensity significantly by 4 per cent per year on average. The Chart below shows that energy intensity in the US chemicals industry has declined over the same period (1995-2008) but not as much as in Europe where energy intensity slowed by 3.4 per cent per year on average.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Employment Employment in the chemicals industry: EU versus the USA
In the EU, some 29,000 chemical companies employ a total staff of about 1.205 million. Employment in the EU chemical industry has decreased by 2 per cent during the past 10 years from 1999 to 2009. Employment in the United States has experienced a steeper decline for chemicals over the same period, declining 3.3 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Labour productivity
The EU chemical industry is a leading industry with high skills and productivity, notably due to high investment per employee and highly educated and trained employees. As a consequence, labour productivity in the EU chemical industry rose at an average annual rate of 2.2 per cent during the 10 years from 1999 to 2009.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU manufacturing industry: breakdown of investment per employee
Investment per employee and personnel cost are two important factors for the international competitiveness of the European chemical industry. Workplace equipment in the chemical industry is of top quality and investment per employee is double the manufacturing average. What is interesting to note is that the chemical sector in Europe is first in terms of investment per employee among all manufacturing sectors.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU manufacturing industry: breakdown of labour cost per employee
The labour force employed in the chemical industry is more qualified, trained and better paid than the average industrial worker. Personnel costs for the EU chemical industry are 47 per cent higher than the average of other manufacturing sectors. After pharmaceuticals, the chemical industry is the second leading sector in terms of labour cost per employee, followed by the automotive and “other transparent equipment” sectors.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU labour productivity: chemicals vs. total manufacturing
Due to intensifying global competition, the EU chemical industry has taken vigorous restructuring and cost-saving steps in order to improve its competitiveness over the last decade. As a consequence, labour productivity in the chemical industry has been growing at an average annual growth from 1999 to 2009 of 2.2 per cent, faster than the 1.6 per cent labour productivity rate in the total manufacturing sector for the same ten-year period.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
EU chemicals industry: percentage of workers by level of education
Employees with medium and high education account for around 80 per cent of workers in the chemical industry, based on data 2005. While the percentage of people with lower and medium education has been decreasing since 2001, workers with a high level of education are gaining importance, accounting for almost 27 per cent in 2005. This figure is important because the success of the European chemical industry depends on its well trained employees. Skills and education are an important factor in international competitiveness and the European chemical industry is facing a global challenge for talent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Investment and R&D Capital spending in the EU
Investments in innovation, including research & development (R&D) are key elements in securing the future of the chemical industry. They not only promote the adaptation to and the development of new technologies and innovation, but are necessary prerequisites for the continuous adjustment of corporate structures to the needs of the marketplace. It is worth noting that the currently available figures on R&D investments give only part of the picture as it is only the starting point on the path to successful innovation. Innovation spending in companies is increasingly included under business development. After some choppy movements in previous years, the ratio of capital spending to sales of the chemical industry, including pharmaceuticals, in the European Union has been declining since 1999 rather steadily. In absolute figures, investment had been growing at a consistent pace between 1995 and 2000 and then declined almost continuously till 2004, with a slight recovery in the following three years from 2005 to 2007.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Capital spending by region
*including pharmaceuticals, **estimated data for Japan
Source: Cefic Chemdata International
The ratio of capital spending to sales in the chemical industry, including pharmaceuticals, in the European Union has been declining since 1999. A similar trend has occurred in both Japan and NAFTA (North American Free Trade Area). From 1995 to 2006, Japan has registered the highest ratio at 4.9 per cent, followed by NAFTA (at 4.8 per cent) and the European Union, which posted a 4.7 per cent ratio.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective R&D spending by region
**estimated for EU13
Source: Cefic Chemdata International
The high value-added products of the chemical industry continuously open up new fields of application and pave the way to progress and innovation in other industries. Typical examples are health, food, consumer goods, aerospace and car manufacturing, telecommunications, electrical engineering and electronics. Wide variations in research and development (R&D) efforts are observed across the chemical industry. Turning R&D into innovation is becoming increasingly important in relation to the competitiveness of the region. Analysing the ratio of R&D spending to sales of the chemical industry it can be observed that during the 16-year time period from 1991 to 2007, the United States had, on average, a slightly higher ratio of 2.3 per cent than the EU ratio of 2.1 per cent. But these two respective ratios have decreased to similar levels in recent years. The same ratio in Japan is 5.2 per cent, around twice as high as the US and EU trading regions.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Total R&D spending
EU chemicals account for 8 per cent of total EU manufacturing spending in research and development (R&D)(data 2003). If the R&D spending of the pharmaceutical sector is included, chemicals are the top investor in R&D in European manufacturing, accounting for almost one-fourth of total R&D investment of manufacturing.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Sustainable Development Greenhouse gas emissions, energy consumption and production*
Between 1990 and 2008, production in the EU chemical industry, including pharmaceuticals, rose by 69 per cent, while total energy consumption was rather stable and greenhouse gas (GHG) emissions fell by 42 per cent. The chemical industry works to develop cleaner and safer technologies, waste-recycling processes and new products to safeguard the environment include biotechnology processes, catalysts, membranes and desulphurisation. One aspect is increased energy efficiency. Besides increasing the energy efficiency of its own processes, the chemical industry also helps to increase the energy efficiency of downstream users and their products through innovative inputs.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Greenhouse gas emissions per unit of energy consumption and per unit of production*
Greenhouse gas (GHG) emissions per unit of energy consumption have been reduced by 41.5 per cent and GHG emissions per unit of production, or GHG intensity, by 65.5 per cent since 1990. This shows the enormous effort by the chemical industry to minimise the environmental impact of its production.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
46
Facts and Figures 2010 The European Chemical Industry in a worldwide perspective
Greenhouse gas emissions per production*: EU versus US
In comparison to the US chemical industry, the EU chemical sector has reduced its greenhouse gas (GHG) emission intensity, calculated as emissions per unit of production, by a relatively greater amount and is more GHG emission-efficient. The US chemical industry has decreased its emission intensity by 35.3 per cent since 1990, whereas the European Union chemical industry has cut its GHG emissions by 65.5 per cent.
Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU 27
Dr. Moncef Hadhri ([email protected])
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