Facts and Figures:
Facts and Figures: The European chemical industry in a worldwide perspective December 2006
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
Facts and Figures December 2006
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Chapter 1: Profile of the Chemical Industry 1.1 World chemicals sales
The European chemical industry can still be portrayed as vibrant and strong. However, worldwide competition is getting fiercer. In 2005, world chemicals sales (excluding pharmaceuticals) were estimated at € 1476 billion. With € 436 billion, the EU chemical industry is still in a top position, but has lost its first place in the ranking to Asia (including China and Japan), mainly due to the rise of China and India. In 2005, China occupied third place in worldwide chemical sales and India ranked ninth, so both are among the world’s 10 largest chemical producers. Additionally, developments in the last 10 years show that the EU was the leader in world chemicals sales but has continuously lost ground against Asia. Taken together, the EU, Asia and USA account for more than 4/5 of the world turnover.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
2 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.2 World network of chemicals trade flows
In 2005, the key trading regions were the EU, Asia (including China and Japan) and North America. The EU was the world's leading exporter and importer of chemicals, accounting for more than half of global trade. This includes intra EU trade, mainly for reasons of comparison with other regions, as their figures include this trade as well.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
3 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.3 Geographic breakdown of EU chemical industry sales
Germany is still the largest chemicals producer in Europe, followed by France, Italy and the UK. Together, those four countries generate almost two thirds of the EU’s chemicals sales (€ 613 billion). Adding Spain, Netherlands, Belgium and Ireland raises the share to 88%. Poland is the biggest new EU country, representing 1.7 % of total EU chemicals sales.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
4 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.4 Sectoral breakdown of EU chemical industry sales
The output of the chemical industry covers four wide ranges of products: base chemicals, speciality and fine chemicals, pharmaceuticals, and consumer chemicals. • Base chemicals cover petrochemicals and derivatives and basic inorganics. They are produced in large volumes, and are sold to the chemical industry itself or to other industries. They represent nearly 39% of total EU chemicals sales. • Specialties cover the auxiliaries for industry, dyes & pigments, oleochemicals, crop protection, and paints & inks. Fine chemicals represent pharma-, agro-, and chemical intermediates. Specialty and fine chemicals are produced in small volumes but nevertheless represent 28% of total EU chemicals sales. • Pharmaceuticals represent both basic pharmaceutical products and pharmaceutical preparations but not pharmaceuticals intermediates. They account for 23% of total EU chemicals sales.
• Finally, consumer chemicals are sold to final consumers: soaps and detergents, perfumes and cosmetics. They represent approximately 10% of total EU chemicals sales.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
5 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
1.5 - 1.6 EU chemical industry sales and demand structure (1)
EU chemicals sales (excluding pharmaceuticals) were estimated at 436 Euro billion in 2005. Sales to EU partner countries have doubled in the period since 1995. The European internal market has had a very positive effect on chemicals. 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. By 2005, almost half of sales were intra EU (excluding domestic sales). While intra EU sales are rising, the importance of domestic sales is decreasing. The traditional domestic preference is becoming a preference for European products.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
6 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.7 EU chemical industry sales and demand structure (2)
Around one quarter of chemicals sales are exported outside of the EU area. North America, other European countries (not belonging to the European Union) and Asia are the key markets. EU chemicals demand (apparent consumption) in 2005 was estimated at € 398 billion (excluding pharmaceuticals), 18% of which originated from outside the region - mainly from North America, Asia and other West, Central and Eastern European countries. More than half of the European demand for chemical products is satisfied by intra EU imports.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
7 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.8 EU chemical industry consumption structure
The chemical industry underpins virtually all sectors of the economy and its strategies impact directly on the downstream users of chemicals. The consumption structure of chemicals by downstream users gives the following picture: •
30.3% of chemicals consumption is absorbed by consumer products, 16.4% goes to services, 6.4% to agriculture, 5.4% to construction, 6.1% to the rest of manufacturing and 10.3% to the rest of industry.
•
The big industrial customers of chemicals are the metals, mechanical & electrical industries, textiles & clothing, the automotive industry and paper & printing products.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
8 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
1.9 Value added in EU chemicals and other manufacturing sectors
The analysis shows that EU chemicals (excluding pharmaceuticals) is the second leading manufacturing sector (after pharmaceuticals) in terms of "value added per employee", followed by the transport sectors, pulp and paper/ publishing and printing and electrical and optical equipment. The chemical industry’s value added per employee is nearly twice as high as the manufacturing average and the EU chemical industry accounts for around 11% of EU manufacturing industry's gross value added.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
9 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
1.10 Contribution of the chemical industry to the EU economy
The chemical industry's contribution to the EU gross domestic product amounts to 2%. 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 (21% in the EU) along with a rise in services and the wide contribution of chemical products into all branches of the economy. Additionally, one job in the chemical industry creates 2 jobs outside the chemical industry. The chemical industry is therefore a source of employment for about 4 million people.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
10 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.11 30 Top chemical companies in the world
In 2005, almost half (13) of the 30 world chemicals majors had their headquarters in the EU - representing approximately 15% of world chemical sales. These 30 companies had a combined sales turnover of € 463 billion. This is a significant increase compared to the previous year and reflects not only the positive sales development in 2005 but also the ongoing consolidation in the chemicals sector.
Source: Cefic and Chemical Insight
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
11 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
1.12 The EU chemical industry: number of enterprises, sales and employment by size-class
The EU chemical industry (excluding pharmaceuticals) comprises about 27 000 enterprises (data covering firms with no employees are excluded), 96% of which have less than 250 employees and may be considered as small and medium- sized enterprises. These account for 30% of sales and 37% of employment. Only 4% of the EU enterprises employ more than 249 employees and generate 70% of total chemicals sales.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
12 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.13 Public image of the European chemical industry
In a pan European poll on the image of the EU chemical industry, chemicals in 2006 are in 6th position out of 8 benchmark industries and rank below the average. However, recent efforts to improve the reputation of the industry seem to working. The image of the chemical industry in the last two years has developed far better than the average of all eight benchmark industries - all other industries, except Nuclear Energy, faced declines, Electricity and Petrol/Oil significant ones, whereas the image of the chemical industry improved.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
13 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
Chapter 2: International Trade 2.1 External trade of EU chemicals
In 2005, EU chemical industry (excluding pharmaceuticals) exports outside the region were worth approximately € 110 billion. Imports from outside the region amounted to some € 72 billion in 2005. The balance was worth € 38 billion. Although imports and exports have both been increasing, imports increased at a higher pace. As a consequence the EU’s trade surplus in chemicals has been diminishing during the last two years. However, due to the booming world economy and the favourable growth of the European chemical industry, for 2006, Cefic expects the chemical trade surplus to increase, back to the levels of 2002 and 2003.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
14 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
2.2 External EU chemicals trade with major geographic blocs (1)
The three major geographic blocs trading with the European Union are North America, Rest of Europe and Asia (including Japan).
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
15 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
2.3 External EU chemicals trade with major geographic blocs (2)
The external EU chemical trade surplus in 2005 was mainly attributable to North and South America (39%), other European countries (not belonging to the EU) (28%) and Asia (12%). The EU chemical industry has a positive trade balance with all regions, although for Asia it should be added that the trade surplus with important countries like Japan and India is very small and with China the EU actually has a trade deficit.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
16 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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2.4 Sectoral breakdown of EU chemicals trade surplus
In 2005, the trade surplus amounted to € 38 billion. Perfumes and cosmetics accounted for almost 26% of the EU chemicals trade surplus (excluding pharmaceuticals), specialties for 24%, plastics for 17%, paints, inks, dyes and pigments for 12% and organics for 20%. Inorganics and fertilizers are the two sectors which actually reported a trade deficit, whereas man made fibres managed to have a balanced trade result. If pharmaceuticals were included, they would account for 43% of the trade balance, which reflects the excellent performance of this sector in 2005.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
17 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
2.5 EU trade balance in chemicals and other manufactures
In 2005, the overall extra-EU chemical trade surplus (excluding pharmaceuticals) decreased compared with 2003 and 2004 but it still reached € 38 billion. The trade surplus in other manufactures shows an opposite trend and has been increasing during the last two years, reaching € 110 billion. Chemicals in 2005 still account for 26% of the total EU manufacturing trade surplus.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
18 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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2.6 Chemicals trade balance comparison (1)
To put the EU chemicals trade into an international context, in comparison with the USA and Japan, the EU is the only one with a trade surplus in chemicals and it is also the extent of the trade surplus that marks the difference. The USA has had a negative trade balance in chemicals since 2002 and the Japanese trade deficit in chemicals has been continuously rising over the last 10 years.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
19 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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2.7 Chemicals trade balance comparison (2)
In 2005, the share of EU chemicals sales exported outside the region was 27%, compared with 21% for the USA and 20% for Japan. Only 18% of the EU chemicals consumption was imported from the non-EU regions. US imports account for almost one quarter of its consumption (23%) whereas Japan is the most self sufficient country, importing only 16% of its consumption.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
20 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Chapter 3: Growth of the Chemical Industry 3.1 Growth of production, trade and apparent consumption
The deceleration of growth in the chemical industry over the last five years is remarkable: all parameters (sales, extra-EU exports, extra EU imports and consumption) have declined comparing the period 2000-2005 to the period 1995-2000, even though growth rates are still at considerable levels. Over the years 2000-2005, chemicals sales (excluding pharmaceuticals) have been growing at the same rate as consumption (1.7%). The average growth rate of imports over the last five years (3.6%) exceeded that of exports (2.8%), so a decreasing chemicals trade surplus comes as no surprise.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
21 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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3.2 Chemicals against GDP and total industry
In addition to providing for customers' present needs, the chemical industry is constantly developing new and improved products and processes, 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 basically all sectors of the economy and consequently depend on their economic performance. Data analysis shows that average growth rates for GDP, total industry and chemicals have decreased over the period 2000-2005 compared with the past five years (19952000). The chemical industry has suffered more than other parts of the economy, as the average growth rate has strongly decreased, from 3% during the period 1995-2000 to only 0.4% over the years 2000-2005. Neither total industry nor GDP show developments as drastic as the chemical industry.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
22 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
3.3 Growth performances of chemicals against total industry
In the period 1995-2005, the chemical industry (excluding pharmaceuticals) and overall industry have almost the same average growth rate, although the yearly performances differ quite a lot. For the last five years the chemical industry (excluding pharmaceuticals) shows slower growth than total industry (0.4% compared to 0.8%), whereas between 1995 -2000, the chemical industry outperformed total industry (3.0% versus 2.7%). For 2006, the Cefic Economic Outlook Task Force expects growth of 2.5% for chemicals (excluding pharmaceuticals), which would be well above the average growth of the chemical industry over the last 5 years.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
23 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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3.4 Sectoral production growth of EU chemicals
Apart from specialty and fine chemicals, all chemical sub sectors showed positive growth in 2005. Pharmaceuticals were the growth leader with 3.5%, followed by basic inorganics (3.1%) and consumer chemicals and polymers (3%). Petrochemicals production grew by only 1.4%. According to the Cefic Economic Outlook Press Release (November 2006), the European chemical industry has experienced a positive development during 2006. Chemicals business has improved strongly, mainly driven by the strong domestic demand and the dynamic growth of trade activities with the major EU trade partners. Most chemicals sectors have benefited from the improved business conditions. Basic inorganics, polymers and petrochemicals have continued to grow in 2006. Fine and specialty chemicals are expected to grow by 2.8 % in 2006 after a drop of 1.2 % last year, eventually taking advantage of a stronger industrial demand - especially from the construction sector. Healthy household confidence has led to higher consumption that is expected to drive up consumer chemicals activity by nearly 4% in 2006.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
24 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
3.5 International comparison of production growth of the chemical industry (1)
Over the past five years (2000-2005), only the US chemical industry shows a lower average growth rate than the EU chemical industry (excluding pharmaceuticals). Latin America and the Asia Pacific region are booming, with average growth rates in chemicals of 4.0% and 5.9% respectively. The latter region is heavily influenced by the extraordinary performance of the Chinese chemical sector and a booming economy and industrial sector.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
25 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
3.6 International comparison of production growth of the chemical industry (2)
It holds for all four regions that total industry has been outperforming the chemical industry over the last five years. This is a world wide trend. World industry grew at an average of 3.7% and chemicals at 3.3%.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
26 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
Chapter 4: Cost and Prices 4.1. Cost structure
Purchases by the EU chemical industry account for 71% of the sales value. The remaining 29% constitutes the gross value added of the sector, which comprises gross operating surplus and payroll. Among purchases, it is possible to single out the costs of trading and energy. Trading represents the cost of chemicals purchased from third parties and resold in their original condition, and amounts to 10% of the sales value. Direct energy costs currently account for 5% of the sales value. In 2003, the payroll accounted for some 16% of the chemicals sales value. The gross operating surplus is defined as profits before taxes, financial charges and depreciation and amounts to 13%.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
27 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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4.2 Producer prices and overall prices
Consumer prices have risen more on an average than chemical prices over the last five years (2000-2005), 2.2% the former and 1.8% the latter. One can conclude that EU chemical industry is not boosting prices and inflation in the EU.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
28 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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4.3 Labour cost per employee and productivity (1)
The payroll accounts for a significant share of chemicals production costs (16%) and is therefore a major factor in competitiveness. Labour cost per employee in the EU chemical industry has increased by an average 3% per annum over the last 5 years (2000-2005). People in the chemical industry are highly qualified and the chemical industry redistributes part of its profit to its employees through competitive salaries. As a consequence, labour cost per employee has been increasing more than the industry average over the last 5 years. Productivity is still increasing at a considerable pace, 3.5% on an average over the last 5 years and is therefore rising slightly faster than the labour cost per employee.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
29 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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4.4 Labour cost per employee and productivity (2)
Productivity is still increasing at a considerable pace, 3.5% on an average over the last 5 years and is therefore rising slightly faster than the labour cost per employee.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
30 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
Chapter 5: Energy 5.1 Energy consumption by source
The chemical industry upgrades energy and raw materials into products required by other industrial sectors as well as by final consumers. The cost of these inputs is a prime factor in competitiveness on world markets. The main supplier of raw materials to the EU chemical industry is the mineral oil industry which produces for example naphtha, gas oil, heavy and gaseous mineral oil fractions and natural gas. It also purchases a broad variety of natural or processed starting materials, e.g. metals, minerals and agricultural raw materials (sugar, starch, fats, etc.). From the energy sector, it consumes coal, oil products, natural gas and electricity, using them both as raw materials (feedstock) and as power and fuel. The proportion between feedstock and fuel is more or less equal, taking all sources of energy into account.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
31 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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5.2 Efficiency in energy consumption
For many years, the EU chemical industry has made strenuous efforts to improve energy efficiency, reducing its fuel and power energy consumption per unit of production. In 2004, energy consumption per unit of production was 39% lower than in 1990. 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 last 14 years the chemicals 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.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
32 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
Chapter 6: Employment 6.1 Employment and production
In the EU, some 31,000 chemical and pharmaceutical companies employ a total staff of about 1.9 million, or 6% of the overall workforce in the manufacturing industry. Over the last four years employment in the EU chemical industry has been decreasing almost at the same rate as total industry. Employment in the USA is experiencing a much steeper decline for industry and for chemicals over the same period.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
33 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
6.2 Labour productivity
The EU chemical industry is a leading industry with high skills and productivity. Labour productivity in the EU chemicals industry rose by 3.5 % p.a. over the period 2000-2005.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
34 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
6.3 Personnel costs
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 (excluding pharmaceuticals) are about twice the average for all other manufacturing sectors. After pharmaceuticals and office machinery and computers, the chemical industry has the third highest labour cost per employee of all manufacturing sectors.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
35 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
6.4 Labour productivity: Chemical industry versus total industry
Thanks to qualified employees, labour productivity in the chemical industry is growing faster than labour productivity in total industry, 3.5% and 1.9% average growth 20002005 respectively.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
36 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Chapter 7: Investment and R&D 7.1 Chemical industry capital spending in the EU
Investment and research & development (R&D) are the 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 market-place. The ratio of investment to sales in the EU has been declining almost steadily since 1999. However, in absolute figures investment has been more or less constant since 1999, with some upwards and downwards movements.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
37 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
7.2 International comparison of capital spending in the chemical industry
Comparing the ratio of capital spending to sales of Europe, North America and the AsiaPacific region, North America has a slightly smaller investment to sales ratio over all the period observed. In recent years North America has also been suffering from a sharper decline than the EU, reaching a ratio of 3.5 in 2005, whereas the EU remains at 5.1. The heavy investment in new capacities in the Asia-Pacific region is reflected in the high investment to sales ratio. Between 1997 and 2002 it was around twice the ratio of the EU and the North America, but it is has been decreasing noticeably in recent years, probably due to capacities coming on stream and rising sales in the Asia-Pacific region.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
38 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
7.3 International comparison of research and development spending
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 the aerospace industry, the car industry, telecommunications, electrical engineering and electronics. Wide variations in R&D efforts are observed across the chemical industry. R&D is most important in pharmaceuticals and in life sciences. Analysing the ratio of R&D spending to sales of the chemical industry (excluding pharmaceuticals) it can be observed that the USA had a slightly higher ratio than the EU, but decreased to similar levels in recent years whereas Japan has a ratio around twice as high as the other two trading regions. Japan is also the only country to barely show a decline in the ratio between 1995 and 2003.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
39 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Facts and Figures December 2006
7.4 Research and development spending in EU manufacturing
Chemicals (excluding pharmaceuticals) account for 8% of total EU manufacturing spending in R&D of € 98.5 billion. They represent the 5th largest spending sector. 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.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
40 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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Chapter 8: Sustainable Development 8.1 Energy usage and greenhouse gas emissions (1)
The chemical industry works on behalf of itself and others to develop cleaner and safer technologies, waste-recycling processes and new products to safeguard the environment (biotechnology processes, catalysts, membranes, desulphurisation plants, etc.). One aspect is increased energy efficiency.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
41 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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8.2 Energy usage and greenhouse gas emissions (2)
Between 1990 and 2004, production in the EU chemical industry rose by 56%, while total energy consumption was stable and greenhouse gas (GHG) emissions fell by more than 20%. Hence, GHG emissions per unit of energy consumption have been reduced by almost 25% and GHG and emissions per unit of production have basically been halved since 1990. This shows the enormous effort that the chemical industry is doing to minimize the environmental impact of its production.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
42 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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8.3 Greenhouse gas emission intensity: EU versus US chemical industry
In comparison to the US, the EU has reduced its GHG emission intensity (emissions per unit of production) much more and today is more GHG emission efficient. The US chemical industry has decreased its emission intensity by 30% since 1990, the EU by 50%.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
43 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
Facts and Figures December 2006
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Chapter 1: Profile of the Chemical Industry 1.1 World chemicals sales
The European chemical industry can still be portrayed as vibrant and strong. However, worldwide competition is getting fiercer. In 2005, world chemicals sales (excluding pharmaceuticals) were estimated at € 1476 billion. With € 436 billion, the EU chemical industry is still in a top position, but has lost its first place in the ranking to Asia (including China and Japan), mainly due to the rise of China and India. In 2005, China occupied third place in worldwide chemical sales and India ranked ninth, so both are among the world’s 10 largest chemical producers. Additionally, developments in the last 10 years show that the EU was the leader in world chemicals sales but has continuously lost ground against Asia. Taken together, the EU, Asia and USA account for more than 4/5 of the world turnover.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
2 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
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1.2 World network of chemicals trade flows
In 2005, the key trading regions were the EU, Asia (including China and Japan) and North America. The EU was the world's leading exporter and importer of chemicals, accounting for more than half of global trade. This includes intra EU trade, mainly for reasons of comparison with other regions, as their figures include this trade as well.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
3 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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1.3 Geographic breakdown of EU chemical industry sales
Germany is still the largest chemicals producer in Europe, followed by France, Italy and the UK. Together, those four countries generate almost two thirds of the EU’s chemicals sales (€ 613 billion). Adding Spain, Netherlands, Belgium and Ireland raises the share to 88%. Poland is the biggest new EU country, representing 1.7 % of total EU chemicals sales.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
4 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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1.4 Sectoral breakdown of EU chemical industry sales
The output of the chemical industry covers four wide ranges of products: base chemicals, speciality and fine chemicals, pharmaceuticals, and consumer chemicals. • Base chemicals cover petrochemicals and derivatives and basic inorganics. They are produced in large volumes, and are sold to the chemical industry itself or to other industries. They represent nearly 39% of total EU chemicals sales. • Specialties cover the auxiliaries for industry, dyes & pigments, oleochemicals, crop protection, and paints & inks. Fine chemicals represent pharma-, agro-, and chemical intermediates. Specialty and fine chemicals are produced in small volumes but nevertheless represent 28% of total EU chemicals sales. • Pharmaceuticals represent both basic pharmaceutical products and pharmaceutical preparations but not pharmaceuticals intermediates. They account for 23% of total EU chemicals sales.
• Finally, consumer chemicals are sold to final consumers: soaps and detergents, perfumes and cosmetics. They represent approximately 10% of total EU chemicals sales.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
5 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
6
Facts and Figures December 2006
1.5 - 1.6 EU chemical industry sales and demand structure (1)
EU chemicals sales (excluding pharmaceuticals) were estimated at 436 Euro billion in 2005. Sales to EU partner countries have doubled in the period since 1995. The European internal market has had a very positive effect on chemicals. 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. By 2005, almost half of sales were intra EU (excluding domestic sales). While intra EU sales are rising, the importance of domestic sales is decreasing. The traditional domestic preference is becoming a preference for European products.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
6 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
7
1.7 EU chemical industry sales and demand structure (2)
Around one quarter of chemicals sales are exported outside of the EU area. North America, other European countries (not belonging to the European Union) and Asia are the key markets. EU chemicals demand (apparent consumption) in 2005 was estimated at € 398 billion (excluding pharmaceuticals), 18% of which originated from outside the region - mainly from North America, Asia and other West, Central and Eastern European countries. More than half of the European demand for chemical products is satisfied by intra EU imports.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
7 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
8
1.8 EU chemical industry consumption structure
The chemical industry underpins virtually all sectors of the economy and its strategies impact directly on the downstream users of chemicals. The consumption structure of chemicals by downstream users gives the following picture: •
30.3% of chemicals consumption is absorbed by consumer products, 16.4% goes to services, 6.4% to agriculture, 5.4% to construction, 6.1% to the rest of manufacturing and 10.3% to the rest of industry.
•
The big industrial customers of chemicals are the metals, mechanical & electrical industries, textiles & clothing, the automotive industry and paper & printing products.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
8 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
9
Facts and Figures December 2006
1.9 Value added in EU chemicals and other manufacturing sectors
The analysis shows that EU chemicals (excluding pharmaceuticals) is the second leading manufacturing sector (after pharmaceuticals) in terms of "value added per employee", followed by the transport sectors, pulp and paper/ publishing and printing and electrical and optical equipment. The chemical industry’s value added per employee is nearly twice as high as the manufacturing average and the EU chemical industry accounts for around 11% of EU manufacturing industry's gross value added.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
9 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
10
Facts and Figures December 2006
1.10 Contribution of the chemical industry to the EU economy
The chemical industry's contribution to the EU gross domestic product amounts to 2%. 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 (21% in the EU) along with a rise in services and the wide contribution of chemical products into all branches of the economy. Additionally, one job in the chemical industry creates 2 jobs outside the chemical industry. The chemical industry is therefore a source of employment for about 4 million people.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
10 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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1.11 30 Top chemical companies in the world
In 2005, almost half (13) of the 30 world chemicals majors had their headquarters in the EU - representing approximately 15% of world chemical sales. These 30 companies had a combined sales turnover of € 463 billion. This is a significant increase compared to the previous year and reflects not only the positive sales development in 2005 but also the ongoing consolidation in the chemicals sector.
Source: Cefic and Chemical Insight
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
11 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
12
Facts and Figures December 2006
1.12 The EU chemical industry: number of enterprises, sales and employment by size-class
The EU chemical industry (excluding pharmaceuticals) comprises about 27 000 enterprises (data covering firms with no employees are excluded), 96% of which have less than 250 employees and may be considered as small and medium- sized enterprises. These account for 30% of sales and 37% of employment. Only 4% of the EU enterprises employ more than 249 employees and generate 70% of total chemicals sales.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
12 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
13
1.13 Public image of the European chemical industry
In a pan European poll on the image of the EU chemical industry, chemicals in 2006 are in 6th position out of 8 benchmark industries and rank below the average. However, recent efforts to improve the reputation of the industry seem to working. The image of the chemical industry in the last two years has developed far better than the average of all eight benchmark industries - all other industries, except Nuclear Energy, faced declines, Electricity and Petrol/Oil significant ones, whereas the image of the chemical industry improved.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
13 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
14
Facts and Figures December 2006
Chapter 2: International Trade 2.1 External trade of EU chemicals
In 2005, EU chemical industry (excluding pharmaceuticals) exports outside the region were worth approximately € 110 billion. Imports from outside the region amounted to some € 72 billion in 2005. The balance was worth € 38 billion. Although imports and exports have both been increasing, imports increased at a higher pace. As a consequence the EU’s trade surplus in chemicals has been diminishing during the last two years. However, due to the booming world economy and the favourable growth of the European chemical industry, for 2006, Cefic expects the chemical trade surplus to increase, back to the levels of 2002 and 2003.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
14 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
15
Facts and Figures December 2006
2.2 External EU chemicals trade with major geographic blocs (1)
The three major geographic blocs trading with the European Union are North America, Rest of Europe and Asia (including Japan).
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
15 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
16
Facts and Figures December 2006
2.3 External EU chemicals trade with major geographic blocs (2)
The external EU chemical trade surplus in 2005 was mainly attributable to North and South America (39%), other European countries (not belonging to the EU) (28%) and Asia (12%). The EU chemical industry has a positive trade balance with all regions, although for Asia it should be added that the trade surplus with important countries like Japan and India is very small and with China the EU actually has a trade deficit.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
16 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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2.4 Sectoral breakdown of EU chemicals trade surplus
In 2005, the trade surplus amounted to € 38 billion. Perfumes and cosmetics accounted for almost 26% of the EU chemicals trade surplus (excluding pharmaceuticals), specialties for 24%, plastics for 17%, paints, inks, dyes and pigments for 12% and organics for 20%. Inorganics and fertilizers are the two sectors which actually reported a trade deficit, whereas man made fibres managed to have a balanced trade result. If pharmaceuticals were included, they would account for 43% of the trade balance, which reflects the excellent performance of this sector in 2005.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
17 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
18
Facts and Figures December 2006
2.5 EU trade balance in chemicals and other manufactures
In 2005, the overall extra-EU chemical trade surplus (excluding pharmaceuticals) decreased compared with 2003 and 2004 but it still reached € 38 billion. The trade surplus in other manufactures shows an opposite trend and has been increasing during the last two years, reaching € 110 billion. Chemicals in 2005 still account for 26% of the total EU manufacturing trade surplus.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
18 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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2.6 Chemicals trade balance comparison (1)
To put the EU chemicals trade into an international context, in comparison with the USA and Japan, the EU is the only one with a trade surplus in chemicals and it is also the extent of the trade surplus that marks the difference. The USA has had a negative trade balance in chemicals since 2002 and the Japanese trade deficit in chemicals has been continuously rising over the last 10 years.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
19 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
20
2.7 Chemicals trade balance comparison (2)
In 2005, the share of EU chemicals sales exported outside the region was 27%, compared with 21% for the USA and 20% for Japan. Only 18% of the EU chemicals consumption was imported from the non-EU regions. US imports account for almost one quarter of its consumption (23%) whereas Japan is the most self sufficient country, importing only 16% of its consumption.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
20 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
21
Chapter 3: Growth of the Chemical Industry 3.1 Growth of production, trade and apparent consumption
The deceleration of growth in the chemical industry over the last five years is remarkable: all parameters (sales, extra-EU exports, extra EU imports and consumption) have declined comparing the period 2000-2005 to the period 1995-2000, even though growth rates are still at considerable levels. Over the years 2000-2005, chemicals sales (excluding pharmaceuticals) have been growing at the same rate as consumption (1.7%). The average growth rate of imports over the last five years (3.6%) exceeded that of exports (2.8%), so a decreasing chemicals trade surplus comes as no surprise.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
21 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
22
3.2 Chemicals against GDP and total industry
In addition to providing for customers' present needs, the chemical industry is constantly developing new and improved products and processes, 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 basically all sectors of the economy and consequently depend on their economic performance. Data analysis shows that average growth rates for GDP, total industry and chemicals have decreased over the period 2000-2005 compared with the past five years (19952000). The chemical industry has suffered more than other parts of the economy, as the average growth rate has strongly decreased, from 3% during the period 1995-2000 to only 0.4% over the years 2000-2005. Neither total industry nor GDP show developments as drastic as the chemical industry.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
22 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
23
Facts and Figures December 2006
3.3 Growth performances of chemicals against total industry
In the period 1995-2005, the chemical industry (excluding pharmaceuticals) and overall industry have almost the same average growth rate, although the yearly performances differ quite a lot. For the last five years the chemical industry (excluding pharmaceuticals) shows slower growth than total industry (0.4% compared to 0.8%), whereas between 1995 -2000, the chemical industry outperformed total industry (3.0% versus 2.7%). For 2006, the Cefic Economic Outlook Task Force expects growth of 2.5% for chemicals (excluding pharmaceuticals), which would be well above the average growth of the chemical industry over the last 5 years.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
23 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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3.4 Sectoral production growth of EU chemicals
Apart from specialty and fine chemicals, all chemical sub sectors showed positive growth in 2005. Pharmaceuticals were the growth leader with 3.5%, followed by basic inorganics (3.1%) and consumer chemicals and polymers (3%). Petrochemicals production grew by only 1.4%. According to the Cefic Economic Outlook Press Release (November 2006), the European chemical industry has experienced a positive development during 2006. Chemicals business has improved strongly, mainly driven by the strong domestic demand and the dynamic growth of trade activities with the major EU trade partners. Most chemicals sectors have benefited from the improved business conditions. Basic inorganics, polymers and petrochemicals have continued to grow in 2006. Fine and specialty chemicals are expected to grow by 2.8 % in 2006 after a drop of 1.2 % last year, eventually taking advantage of a stronger industrial demand - especially from the construction sector. Healthy household confidence has led to higher consumption that is expected to drive up consumer chemicals activity by nearly 4% in 2006.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
24 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
25
Facts and Figures December 2006
3.5 International comparison of production growth of the chemical industry (1)
Over the past five years (2000-2005), only the US chemical industry shows a lower average growth rate than the EU chemical industry (excluding pharmaceuticals). Latin America and the Asia Pacific region are booming, with average growth rates in chemicals of 4.0% and 5.9% respectively. The latter region is heavily influenced by the extraordinary performance of the Chinese chemical sector and a booming economy and industrial sector.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
25 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
26
Facts and Figures December 2006
3.6 International comparison of production growth of the chemical industry (2)
It holds for all four regions that total industry has been outperforming the chemical industry over the last five years. This is a world wide trend. World industry grew at an average of 3.7% and chemicals at 3.3%.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
26 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
27
Facts and Figures December 2006
Chapter 4: Cost and Prices 4.1. Cost structure
Purchases by the EU chemical industry account for 71% of the sales value. The remaining 29% constitutes the gross value added of the sector, which comprises gross operating surplus and payroll. Among purchases, it is possible to single out the costs of trading and energy. Trading represents the cost of chemicals purchased from third parties and resold in their original condition, and amounts to 10% of the sales value. Direct energy costs currently account for 5% of the sales value. In 2003, the payroll accounted for some 16% of the chemicals sales value. The gross operating surplus is defined as profits before taxes, financial charges and depreciation and amounts to 13%.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
27 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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4.2 Producer prices and overall prices
Consumer prices have risen more on an average than chemical prices over the last five years (2000-2005), 2.2% the former and 1.8% the latter. One can conclude that EU chemical industry is not boosting prices and inflation in the EU.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
28 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
29
4.3 Labour cost per employee and productivity (1)
The payroll accounts for a significant share of chemicals production costs (16%) and is therefore a major factor in competitiveness. Labour cost per employee in the EU chemical industry has increased by an average 3% per annum over the last 5 years (2000-2005). People in the chemical industry are highly qualified and the chemical industry redistributes part of its profit to its employees through competitive salaries. As a consequence, labour cost per employee has been increasing more than the industry average over the last 5 years. Productivity is still increasing at a considerable pace, 3.5% on an average over the last 5 years and is therefore rising slightly faster than the labour cost per employee.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
29 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
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4.4 Labour cost per employee and productivity (2)
Productivity is still increasing at a considerable pace, 3.5% on an average over the last 5 years and is therefore rising slightly faster than the labour cost per employee.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
30 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
31
Facts and Figures December 2006
Chapter 5: Energy 5.1 Energy consumption by source
The chemical industry upgrades energy and raw materials into products required by other industrial sectors as well as by final consumers. The cost of these inputs is a prime factor in competitiveness on world markets. The main supplier of raw materials to the EU chemical industry is the mineral oil industry which produces for example naphtha, gas oil, heavy and gaseous mineral oil fractions and natural gas. It also purchases a broad variety of natural or processed starting materials, e.g. metals, minerals and agricultural raw materials (sugar, starch, fats, etc.). From the energy sector, it consumes coal, oil products, natural gas and electricity, using them both as raw materials (feedstock) and as power and fuel. The proportion between feedstock and fuel is more or less equal, taking all sources of energy into account.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
31 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
32
Facts and Figures December 2006
5.2 Efficiency in energy consumption
For many years, the EU chemical industry has made strenuous efforts to improve energy efficiency, reducing its fuel and power energy consumption per unit of production. In 2004, energy consumption per unit of production was 39% lower than in 1990. 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 last 14 years the chemicals 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.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
32 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
33
Facts and Figures December 2006
Chapter 6: Employment 6.1 Employment and production
In the EU, some 31,000 chemical and pharmaceutical companies employ a total staff of about 1.9 million, or 6% of the overall workforce in the manufacturing industry. Over the last four years employment in the EU chemical industry has been decreasing almost at the same rate as total industry. Employment in the USA is experiencing a much steeper decline for industry and for chemicals over the same period.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
33 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
34
Facts and Figures December 2006
6.2 Labour productivity
The EU chemical industry is a leading industry with high skills and productivity. Labour productivity in the EU chemicals industry rose by 3.5 % p.a. over the period 2000-2005.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
34 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
35
Facts and Figures December 2006
6.3 Personnel costs
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 (excluding pharmaceuticals) are about twice the average for all other manufacturing sectors. After pharmaceuticals and office machinery and computers, the chemical industry has the third highest labour cost per employee of all manufacturing sectors.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
35 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
36
Facts and Figures December 2006
6.4 Labour productivity: Chemical industry versus total industry
Thanks to qualified employees, labour productivity in the chemical industry is growing faster than labour productivity in total industry, 3.5% and 1.9% average growth 20002005 respectively.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
36 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
37
Chapter 7: Investment and R&D 7.1 Chemical industry capital spending in the EU
Investment and research & development (R&D) are the 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 market-place. The ratio of investment to sales in the EU has been declining almost steadily since 1999. However, in absolute figures investment has been more or less constant since 1999, with some upwards and downwards movements.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
37 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
38
Facts and Figures December 2006
7.2 International comparison of capital spending in the chemical industry
Comparing the ratio of capital spending to sales of Europe, North America and the AsiaPacific region, North America has a slightly smaller investment to sales ratio over all the period observed. In recent years North America has also been suffering from a sharper decline than the EU, reaching a ratio of 3.5 in 2005, whereas the EU remains at 5.1. The heavy investment in new capacities in the Asia-Pacific region is reflected in the high investment to sales ratio. Between 1997 and 2002 it was around twice the ratio of the EU and the North America, but it is has been decreasing noticeably in recent years, probably due to capacities coming on stream and rising sales in the Asia-Pacific region.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
38 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
39
Facts and Figures December 2006
7.3 International comparison of research and development spending
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 the aerospace industry, the car industry, telecommunications, electrical engineering and electronics. Wide variations in R&D efforts are observed across the chemical industry. R&D is most important in pharmaceuticals and in life sciences. Analysing the ratio of R&D spending to sales of the chemical industry (excluding pharmaceuticals) it can be observed that the USA had a slightly higher ratio than the EU, but decreased to similar levels in recent years whereas Japan has a ratio around twice as high as the other two trading regions. Japan is also the only country to barely show a decline in the ratio between 1995 and 2003.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
39 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
40
Facts and Figures December 2006
7.4 Research and development spending in EU manufacturing
Chemicals (excluding pharmaceuticals) account for 8% of total EU manufacturing spending in R&D of € 98.5 billion. They represent the 5th largest spending sector. 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.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
40 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
41
Chapter 8: Sustainable Development 8.1 Energy usage and greenhouse gas emissions (1)
The chemical industry works on behalf of itself and others to develop cleaner and safer technologies, waste-recycling processes and new products to safeguard the environment (biotechnology processes, catalysts, membranes, desulphurisation plants, etc.). One aspect is increased energy efficiency.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
41 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
Facts and Figures December 2006
42
8.2 Energy usage and greenhouse gas emissions (2)
Between 1990 and 2004, production in the EU chemical industry rose by 56%, while total energy consumption was stable and greenhouse gas (GHG) emissions fell by more than 20%. Hence, GHG emissions per unit of energy consumption have been reduced by almost 25% and GHG and emissions per unit of production have basically been halved since 1990. This shows the enormous effort that the chemical industry is doing to minimize the environmental impact of its production.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
42 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
43
Facts and Figures December 2006
8.3 Greenhouse gas emission intensity: EU versus US chemical industry
In comparison to the US, the EU has reduced its GHG emission intensity (emissions per unit of production) much more and today is more GHG emission efficient. The US chemical industry has decreased its emission intensity by 30% since 1990, the EU by 50%.
For more information please contact Dr. Moncef Hadhri: [email protected] and Andrea Weigel: [email protected]
43 Unless specified, chemical industry includes pharmaceuticals Unless specified, EU refers to EU 25
