Tuesday, 20 October 2009

Chemical industry poised for recovery in Central and Eastern Europe

Dole Queue
Survival is the name of the game for Central and East Europe’s (CEE) chemical industry over the next few years. Huge challenges remain:
- Poor domestic and regional economic growth
- Lack of state intervention to shore up economic recovery: many countries have no resources to do so as they are nearly bankrupt
- No state money to rescue ailing chemical companies
- Sluggish recovery in export markets
- Inefficient and small companies which cannot compete globally

Is the region better placed for recovery than western Europe?

- Large parts of CEE are landlocked and therefore less exposed to competition from Middle East imports
- Economic growth, when it comes, has the potential to be fast and strong
- Higher oil prices will fuel recovery in Russia
- Privatisation could yield great results in Poland

My view? This region has great potential and with good corporate leadership it will recover strongly. Good corporate leadership is not consistent across the region and more consolidation is vital.

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