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Europe's chemical sector faces Asian surge
23 May
Summary
- European chemical capacity investments dropped 90% from 2022.
- Asian rivals are outperforming European chemical producers.
- German firms struggle with high energy costs.
European chemical manufacturers are experiencing a significant decline in competitiveness against their Asian counterparts. Confirmed capacity investments in Asia have plummeted by 90% compared to 2022 figures, signaling a major shift in the global chemical landscape.
Companies such as BASF are adapting by redirecting their investments towards China. This strategic move aims to establish a closer presence with customers in the burgeoning Asian market, a crucial step for maintaining market share.
German chemical companies, in particular, have faced persistent challenges for several years. High energy costs continue to exert considerable pressure on their operations, contributing to their struggle to remain competitive on the international stage.
