Competitiveness of the chemical industry in the CEECs - report available
A study, commissioned by the Enterprise Directorate-General to appraise how the chemical industry in the central and eastern European (CEEC) candidate countries will be able to cope with the competitive pressure of EU membership, is now available. It contains a national review of the ten CEECs with information that applies across a number of the chemical industry's sub-sectors. Each national review includes a brief description of the country, characterisation of the chemical industry, privatisation and foreign direct investment. The authors of the study report that the cost of production is a key factor of success in most of the sub-sectors of the chemical industry. 'Important elements include type and price of feedstock, size and modernity of plant, and the fixed cost base.' The study also finds that the cost position of the CEEC chemical industry varies 'not only between specific countries but also between specific plants.' But, 'typically, fixed costs are low and compensate to a large extent for disadvantages in materials costs and plant characteristics.' Other factors also found to be relevant in sub-sectors, such as performance chemicals, include product quality and close customer relationships, and the associated technical development plus technical service that this implies. For consumer products, marketing and branding issues are also relevant, according to the report. The study was written by Chem Systems and finalised in January 2001.