Foreword

This publication is aimed at providing an overall picture of the structure of the European chemical industry, analysing in particular EU competitiveness versus the other trading blocs in the world, namely the USA, Asia, Japan, and the other non-EU regions.

The analysis shows that 1999 was a good year for the European chemical industry as a whole. Here are some highlights:

• The overall output in the European chemical industry grew by 3.5%. This was primarily driven by the positive prospects for world trade and economic activity. These positive drivers are likely to continue in 2000, although some external factors such as the high oil prices may create some uncertainty.

• With an estimated € 431 billion, the chemical industry in Western Europe is the world’s largest chemicals producer and accounts for nearly one third of estimated world production.

• The external EU trade surplus is still growing rapidly and showing a very encouraging trend. With a trade surplus of € 46 billion, the EU chemical industry enjoys the largest trade surplus in the manufacturing industry. This is partly due to the strong domestic demand in the USA, combined with the weak euro effect.

• 96% of the number of enterprises operating in the EU chemical industry have less than 250 employees and may be considered as small and medium-sized enterprises.

Looking ahead, I believe that confidence is high in the European chemical industry. This reflects the dynamism and adaptability of chemical companies to respond to foreign demand, as well as to internal European growth.

I am optimistic and confident that these positive developments will maintain growth and competitiveness. However, we cannot ignore other factors that risk eroding the growth and competitiveness of the European chemical industry, such as higher energy costs, higher taxation, and the impact of regulatory requirements. Profitability, innovation and the investment climate might be at stake.

CEFIC is firmly committed to address these challenges in supporting its members. The legal, regulatory and economic framework should enhance the capacity of companies to provide essential products and services to all sectors of the European economy and society. More than ever, chemistry and molecular knowledge can provide the materials without which essential needs cannot be fulfilled. Moreover, only with them will the most advanced technological developments be possible.

We do hope that this publication containing the best available professional data will provide readers with a sound background to better understand the promises and challenges which are at stake.

Alain Perroy, CEFIC Director-General