Chemicals Industry Profile World chemicals sales: geographic breakdown

Asian chemicals production equals that of Europe plus America

1. Chemicals Industry Profile World chemicals sales: geographic breakdown 1200

World chemicals sales by region Chemicals sales by country: top 30

World exports and imports of chemicals by regional shares EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination EU chemicals industry sales structure Contribution of the chemicals industry to the EU economy Added value in the EU manufacturing sector (2007) 2. International Trade 3. Growth and Competitiveness 4. Employment

363 Chemicals sales (€ billion)

EU chemicals industry sales by geographic breakdown

1000

• World chemicals turnover was valued at €2353 billion in 2010. Data for 2010 confirms that solid recovery of the chemicals industry occurred during the year. Sales in value terms were up in 2010 by 26.9 per cent compared with 2009, a year when the economic and financial crisis was in full swing. Emerging economies contributed largely to the worldwide recovery of the sector in 2010.

56 153

800 600 575

87 491

400

455

200 128

45

0 Asia China EU-27

Europe Rest of Asia Rest of Europe*

NAFTA

Latin America Japan

Rest of the World India

• The European chemicals industry, including the European Union and the Rest of Europe, is still in a strong position, posting sales of €578 billion in 2010, one-fourth of world chemicals sales in value terms. Worldwide competition is getting fiercer, however, witnessed by the European Union losing its top ranking in terms of sales to China for the second consecutive year. Chemicals sales in Asia are more than double that of the European Union. Taken together, Europe, Asia and North American Free Trade Area account for 92.7 per cent of world chemicals turnover.

World chemicals sales in 2010 are valued at € 2353 billion. The EU accounts for 21% of the total. * Rest of Europe: Switzerland, Norway and other Central & Eastern Europe (excl. the new EU 12 countries) Source: Cefic Chemdata International

5. Energy 6. Investment and R&D 7. Sustainable Development

Source: Cefic Chemdata International * Rest of Europe = Switzerland, Norway and other Central & Eastern Europe Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile World chemicals sales by region

1. Chemicals Industry Profile

World Sales

World chemicals sales: geographic breakdown

World Sales 35

World chemicals sales by region

30

EU chemicals industry sales by geographic breakdown

25

EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination EU chemicals industry sales structure Contribution of the chemicals industry to the EU economy Added value in the EU manufacturing sector (2007) 2. International Trade

Percentage share

Chemicals sales by country: top 30

World exports and imports of chemicals by regional shares

Emerging economies outpace industrial countries in chemicals production

29.2

• Developments during the previous 10 years from 2000 to 2010 indicate that the European Union was the clear leader in terms of world chemicals sales, but the region has gradually lost ground to China and Asia (excluding Japan).

28.1 24.4 20.9

20

19.3

• The European Union contribution to world chemicals sales declined in 2010 by 8.3 percentage points compared with 2000. In fact, the total value of sales in the European Union has been growing continuously, but overall world chemicals sales are growing at an even faster clip. The level of world chemicals sales in value terms increased by 63.7 per cent in 2010 compared with 2000.

17.8 14.6

15 12.0 10 6.5

6.4

5

4.7 5.4

2.7

3.7

2.3 2.0

0 EU-27

NAFTA

Japan

2000: €1437 billion

Rest of Asia*

China

Latin America

Rest of Europe

Rest of the world

2010: €2353 billion

3. Growth and Competitiveness 4. Employment * Asia excluding China and Japan Source: Cefic Chemdata International

5. Energy 6. Investment and R&D 7. Sustainable Development

Source: Cefic Chemdata International *Asia excluding China and Japan Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile Chemicals sales by country: top 30

China – the biggest chemicals producer in 2010

1. Chemicals Industry Profile World chemicals sales: geographic breakdown 650

World chemicals sales by region Chemicals sales by country: top 30

600

EU chemicals industry sales by geographic breakdown

500

EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination EU chemicals industry sales structure Contribution of the chemicals industry to the EU economy Added value in the EU manufacturing sector (2007)

550 Chemicals sales 2010 (€ billion)

World exports and imports of chemicals by regional shares

• In 2010, the 30 largest chemical-producing countries had a combined turnover of €2103 billion.

575.3

450

• Twelve of the top 30 major countries are Asian, generating chemicals sales of €1026 billion. This figure represents nearly 49 per cent of the top 30 and 43.6 per cent of the share of world chemicals sales.

395.2

400 350

• Eleven of the top 30 major countries are European, generating chemicals sales of €506 billion. This figure represents 24 per cent of the top 30 and 21.6 per cent of the share of world chemicals sales.

300 250 200

152.7

150

141.6

100

76.1

75.6

74.8

Brazil

Korea Republic

50 0

China

US

Japan Germany France

55.9

50.2

49.4

India

Italy

Taiwan

2. International Trade 3. Growth and Competitiveness 4. Employment 5. Energy

Source: Cefic Chemdata International

6. Investment and R&D 7. Sustainable Development Source: Cefic Chemdata International Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile EU chemicals industry sales by geographic breakdown

Sales2010: 2010:e491 €491billion billion Sales

1. Chemicals Industry Profile

Eight countries account for 90 per cent of EU chemicals production

World chemicals sales: geographic breakdown World chemicals sales by region Chemicals sales by country: top 30 EU chemicals industry sales by geographic breakdown World exports and imports of chemicals by regional shares EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination EU chemicals industry sales structure

NL 9.5%

UK 9.1%

Percentage shares ES 6.8%

IT 10.2%

BE 6.3%

PL 2.7%

Others 11.1%

FR 15.5%

HU PT 0.8% 0.8% DK 0.9% FI 1.1% CZ 1.2%

DE 28.8%

Others 3.0%

AT 1.5%

SE 1.8%

• Germany remains the largest chemicals producer in Europe, followed by France, Italy and the Netherlands. Together, these four countries generated in 2010 64 per cent of EU chemicals sales, valued at €315 billion. The share rises to 88.9 per cent, or €437 billion, when including the United Kingdom, Spain, Belgium and Poland. • The other 19 EU countries in 2010 generated 11.1 per cent of EU chemicals sales, valued at €54 billion, half of which was attributable to four EU countries – Sweden, Austria, Czech Republic and Finland.

Contribution of the chemicals industry to the EU economy Added value in the EU manufacturing sector (2007) 2. International Trade 3. Growth and Competitiveness 4. Employment

Source: Eurostat and Cefic Chemdata International

5. Energy 6. Investment and R&D 7. Sustainable Development Sources: Eurostat and Cefic Chemdata International Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile World exports and imports of chemicals by regional shares

1. Chemicals Industry Profile

World 2010 World exports exports of of chemicals* chemicals* 2010

World 2010 Worldimports imports of of chemicals* chemicals* 2010

World chemicals sales: geographic breakdown World chemicals sales by region Chemicals sales by country: top 30 EU chemicals industry sales by geographic breakdown

Percentage shares

2% 5% 2%

5%

• In 2010, the key trading regions were the European Union, Asia – including China and Japan – and the market comprising North American Free Trade Agreement countries.

4%

6%

14% 11%

World exports and imports of chemicals by regional shares

37%

44%

EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination

33%

The European Union is the world’s top exporter and importer of chemicals

37%

• The European Union was the leading exporter and importer of chemicals in the world, accounting for 41 per cent of global trade, defined as the total value of exports plus imports. This includes intra-EU trade, mainly for reasons of comparison with other regions, as these figures include this type of trade activity as well.

EU chemicals industry sales structure Contribution of the chemicals industry to the EU economy Added value in the EU manufacturing sector (2007)

Asia

NAFTA

Rest of Europe

Latin America

Africa & Oceania

EU

2. International Trade 3. Growth and Competitiveness * Including intra EU trade Source: Eurostat and Cefic Chemdata International

4. Employment 5. Energy 6. Investment and R&D 7. Sustainable Development

Sources: Eurostat and Cefic Chemdata International * Including intra EU trade Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile EU chemicals industry sales by sectoral breakdown

1. Chemicals Industry Profile World chemicals sales: geographic breakdown

2009: E420 billion

2009: €420 billion

2010: E491 billion

2010: €491 billion

• Output from the EU chemicals industry covers three wide ranges of products: base chemicals, speciality chemicals and consumer chemicals.

World chemicals sales by region Chemicals sales by country: top 30 EU chemicals industry sales by geographic breakdown

Polymers 22.5%

Petrochemicals 23.5%

Polymers 24.0%

Petrochemicals 24.0%

World exports and imports of chemicals by regional shares EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination EU chemicals industry sales structure

Specialties 26.8%

Consumer chemicals 13.5% Basic inorganics 13.7%

Contribution of the chemicals industry to the EU economy

2. International Trade 3. Growth and Competitiveness Source: Cefic Chemdata International

5. Energy 6. Investment and R&D 7. Sustainable Development

Source: Cefic Chemdata International Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

Specialties 25.6%

Consumer chemicals 12.8% Basic inorganics 13.6%

• Base chemicals cover petrochemicals and derivatives and basic inorganics. They are produced in large volumes, and are sold within the chemicals industry itself or to other industries. In 2009, they represented 59.7 per cent of total EU chemicals sales, increasing in 2010 to 61.6 per cent. • Specialty chemicals cover the auxiliaries for industry, paints & inks, crop protection, and dyes & pigments. Specialty chemicals are produced in small volumes but nevertheless represented 25.6 per cent of total EU chemicals sales in 2010. • Consumer chemicals are sold to final consumers, such as soaps and detergents as well as perfumes and cosmetics. Together, they represented 12.8 per cent of total EU chemicals sales in 2010.

Added value in the EU manufacturing sector (2007)

4. Employment

Petrochemicals and polymers account for about half of EU chemicals sales

• Comparing 2009 to 2010 on the contribution of each sector to EU chemicals sales, data show that the polymers and petrochemicals sectors increased their contributions in 2010 compared with 2009. This is due to polymers and petrochemicals being seriously affected by the economic crisis in 2009 and experiencing a strong recovery in 2010. Consumer chemicals and specialty chemicals were less affected by the crisis, however, and registered a less pronounced recovery.

8

Chemicals Industry Profile EU chemicals industry sales: structure by destination

Intra-EU trade increased significantly due to success of EU internal market

1. Chemicals Industry Profile World chemicals sales: geographic breakdown 550

World chemicals sales by region

500

Chemicals sales by country: top 30

450

EU chemicals industry sales by geographic breakdown

EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination EU chemicals industry sales structure Contribution of the chemicals industry to the EU economy Added value in the EU manufacturing sector (2007) 2. International Trade

400

100.1

350 € billion

World exports and imports of chemicals by regional shares

125.7

300

54.7

250

97.5

70.3 129.8

159.3

141.2

104.7 263.4 261.6

189.3

200 150

179.0

161.4

161.9

100

143.8

127.3 88.5

50

• EU chemicals sales were valued at €491 billion in 2010. Sales to EU partner countries have more than doubled during the period from 1995 to 2010 (261.6 versus 97.5). • The European internal market during that 15-year period had a profoundly positive effect on the chemicals industry. Removing both trade and non-trade barriers inside the EU area has been a key driver for growth and competitiveness of the chemicals industry in the European Union. • The internal market, today numbering more than 500 million consumers, is a key competitiveness factor. With the accession of new EU member states in 2004 and 2007, the internal market has received an intra-trade boost.

0 1995

1998

2001

Home country sales

2004

Intra-EU export

2007

2010

Extra-EU export

3. Growth and Competitiveness 4. Employment 5. Energy 6. Investment and R&D

Source: Eurostat and Cefic Chemdata International

7. Sustainable Development Sources: Eurostat and Cefic Chemdata International Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile EU chemicals industry sales structure

1. Chemicals Industry Profile

1995:€331 E331billion billion 1995:

2010: E491 billion 2010: €491 billion

World chemicals sales: geographic breakdown World chemicals sales by region

Percentage shares

Chemicals sales by country: top 30 EU chemicals industry sales by geographic breakdown World exports and imports of chemicals by regional shares EU chemicals industry sales by sectoral breakdown

Extra-EU export 29%

Extra-EU export 17% Intra-EU export 29%

Home country sales 18%

Home country sales 54%

EU chemicals industry sales: structure by destination

Contribution of the chemicals industry to the EU economy

• EU chemicals sales in 2010 were 48 per cent higher compared to the value in 1995. Over the period 1995-2010, EU chemicals sales have increased on average by 2.7 per cent per annum. • By 2010, intra-EU sales – excluding domestic sales – accounted for more than half of total chemicals sales by the sector in the European Union. • While intra-EU sales are rising, the importance of domestic sales is decreasing, however, only accounting for 18 per cent of total EU sales.

Intra-EU export 53%

EU chemicals industry sales structure

Intra-EU sales, excluding home country sales, account for more than half of total chemicals sales

• Twenty-nine per cent of chemicals sales are exported outside of the EU market. European Union neighbour countries, the NAFTA trade bloc, and Asia are the three primary markets for EU chemicals exports.

Added value in the EU manufacturing sector (2007) 2. International Trade 3. Growth and Competitiveness Source: Cefic Chemdata International

4. Employment 5. Energy 6. Investment and R&D 7. Sustainable Development

Source: Cefic Chemdata International Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile Contribution of the chemicals industry to the EU economy

1. Chemicals Industry Profile

Percentage of GDP, 2010

World chemicals sales: geographic breakdown

Percentage of GDP, 2010

World chemicals sales by region Chemicals sales by country: top 30

The chemicals industry directly accounts for 1.1 per cent of total EU gross domestic product, down from 1.5 per cent in 1995

Financial economy 28.8%

Chemicals

EU chemicals industry sales by geographic breakdown World exports and imports of chemicals by regional shares EU chemicals industry sales by sectoral breakdown

Public services 23.9%

Industry 18.7%

Rest of manufacturing

1.1%

14.3%

EU chemicals industry sales: structure by destination Agriculture 1.7%

EU chemicals industry sales structure Contribution of the chemicals industry to the EU economy

Services 20.9%

Added value in the EU manufacturing sector (2007)

Construction 6.0%

Rest of industry

3.3%

• The chemicals industry’s contribution to EU gross domestic product, or GDP, amounts to 1.1 per cent. This may seem small at first, but should be reassessed taking into consideration both the shrinking contribution of industry as a whole to GDP in advanced economies along with a rise in the service sector. The manufacturing sector share of GDP in the European Union declined from 23.7 per cent in 1995 to 18.7 per cent in 2010. • There is a wide contribution of chemicals products that are present in all branches of the economy. For example, the chemicals industry in Germany is the most important supplier of innovative materials for manufacturing. Chemicals represent 10 per cent of the supply of input and intermediary products and they show an above average research & development content.

2. International Trade 3. Growth and Competitiveness 4. Employment 5. Energy

Source: Eurostat and Cefic Chemdata International

6. Investment and R&D 7. Sustainable Development Sources: Eurostat and Cefic Chemdata International Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

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Chemicals Industry Profile Added value* in the EU manufacturing sector (2007)

EU chemicals industry – the third largest manufacturing sector in terms of added value*

Percentage of added value in 2007

1. Chemicals Industry Profile World chemicals sales: geographic breakdown World chemicals sales by region Chemicals sales by country: top 30

World exports and imports of chemicals by regional shares EU chemicals industry sales by sectoral breakdown EU chemicals industry sales: structure by destination EU chemicals industry sales structure Contribution of the chemicals industry to the EU economy Added value in the EU manufacturing sector (2007)

Key sectors: Top 15

EU chemicals industry sales by geographic breakdown

Machinery and equipment Food products and beverages Chemicals** Metal products Motor vehicles & and (semi) trailers Publishing, printing and recorded media Basic metals Electrical machinery Other non-metallic mineral products Rubber and plastic products Optical instruments, watches and clocks Furniture; manufacturing n.e.c. Other transport equipment Radio, TV & communication equipment Pulp, paper and paper products % 0

10.7%

• According to Eurostat data, 34.5 million people were employed in 2.3 million enterprises in the EU-27 manufacturing sector in 2007. Together they generated €1813 billion of added value.

2

2. International Trade 3. Growth and Competitiveness 4. Employment

* Including pharmaceuticals Source: Eurostat (SBS, ebd_all) and Cefic Analysis

5. Energy 6. Investment and R&D 7. Sustainable Development

• Added value at factor costs is defined as the gross income from operating activities after adjusting for operating subsidies and indirect taxes. Value adjustments, such as depreciation, are not subtracted. (Source: EU Commission, SBS database)

11.6%

Sources: Eurostat (SBS, ebd_all) and Cefic Analysis * Added value at factor cost ** Including pharmaceuticals

4

6

8

10

12

14

• The chart above shows the largest three subsectors in 2007 in terms of added value, at the NACE division level. The three top subsectors were: machinery and equipment; food and beverages; and chemicals, including pharmaceuticals. Sectors such as tobacco, leather and office machinery & computers, however, contributed to less than one per cent of the EU manufacturing added value in 2007. • There is great diversity between manufacturing subsectors in EU member states. Some manufacturing activities have relatively low labour productivity, personnel costs per employee and investment rates, such as the manufacture of textiles, leather products, wearing apparel, compared with those with considerably higher values for the same indicators, such as chemicals.

Unless specified, chemicals industry excludes pharmaceuticals Unless specified, EU refers to EU-27

Facts and Figures 2011

12