Transcript Presentation of Hubert Mandery

HELSINKI CHEMICALS FORUM
COMPETITIVENESS – FINANCIAL CONSTRAINTS
Framework Conditions for a Sustainable and
Competitive Chemical Industry in Europe
Helsinki, 21 May 2010
Hubert Mandery
Cefic
Chemistry – The Central Science in the 21st
Century
“ Chemistry will undoubtedly remain the central science
in the 21st century. After bringing to mankind the
fundamental discoveries which have changed our daily
life for the last two centuries, it will now be at the heart
of a new scientific era, where many sciences will merge
and cross-fertilize for the benefit of innovation.
Thus, chemical creativity and knowledge will be needed
everywhere.”
Prof. Jean-Marie Lehn – Nobel Laureate 1987
(Chemistry for Life 1997)
1
The European Chemical Industry:
Still a Successful Global Player
• Contributes to 29% of the
World’s chemical sales
• Represents 29,000
companies (96% SMEs)
• Employs 1.2 million people
• Generates € 455.8 billion of
revenues
• Creates a trade surplus of
€ 42.5 billion
Source: Cefic; 2009 figures; excluding pharmaceuticals
PL 2.3%
SE 1.4%
AT 1.3%
FL 1.3%
CZ 1.1%
HU 0.8%
PT 0.6%
RO 0.6%
Others 2.3%
2
Geographic Breakdown of World
Chemical Sales - 1998 vs. 2008
1998: € 1095 billion
2008: € 1950 billion
11,4%
EU27
29,0%
10%
34%
29%
Asia exclud.
China & Japan
20,9%
China
Japan
11%
11%
NAFTA
7,0%
5%
14.4%
Other Regions
17,3%
EU Chemical industry losing share in a fast growing global market
Source: Cefic Chemdata International
3
High Level Group on the Competitiveness
of the European Chemical Industry (2009)
Recommendations on
Innovation and Research
Regulation
Human Resources
Energy & Feedstock
Climate Change Policy
Logistics
International Competitiveness & Trade
10
3
3
5
5
5
8
39
4
EU Chemicals Trade Flows in € Billion (2009)
NAFTA
20.5
32.2
19.5 Rest of
Europe
29.5
22.5
29.6
LAC**
3.1
7.0
5.1
5.3
Africa
Asia*
Japan
2.4
8.0
1.4
5.4
Source: Eurostat and Cefic
* excl. Japan; **Latin America and the Caribbean
Rest of
the World
5
EU Chemicals Trade Balance with other
Countries/Regions
USA
Japan
Brazil
Russia
India
China
South
Korea
Middle
East
Asia
Rest of
Asia
Basic Inorganics
Petrochemicals
Polymers
Specialty Chemicals
Consumer Chemicals
Chemicals (sum)
EU has a trade deficit and its
competitive position weakened
EU has a trade deficit but its weak
competitive position improved
EU has a trade surplus but its positive
competitive position weakened
EU has a trade surplus and its healthy competitive
position improved
6
(2000-2004) vs. (2005-2009)
Trade and Competitiveness: Open Markets
and Fair Competition
• No weakening of the current European Trade Defence
Instruments
• EU to pursue Free Trade Agreements (Korea, India, etc. )
• Address double pricing
• Strive for more global harmonisation of customs
procedures
• Level playing field for access to raw materials
7
Smart Regulation: Still a Dream
• Plethora of chemical legislation: about 1000 EU legislative texts
in 15 years
• Inconsistencies: lack of coordination (Toys Directive, RoH’s,
Construction Materials, etc.)
• Uneven enforcement in Member States: IPPC
• No or weak enforcement: imported pharmaceutical ingredients
• REACH: publishing of notified research substances
• € 1 bn burnt and only few results: Biocides Directive
8
REACH:
Unique, Complex and Ambitious
• Industry is highly committed to make REACH work
• EU substance legislations must be consistent with REACH
(RoHS, Biocides, ...)
• Uniform enforcement within EU wanted
• Regulatory convergence ? Not on the ambitious level of
REACH
• Conceptional flaws to be remedied (SIEF concept …)
• REACH: a barrier to trade?
• GPS (Global Product Strategy) – industry’s contributions to
regulatory convergence and to the SAICM goals
9
Climate Change – a Global Challenge requiring
Global Solutions
• Unique European ETS : unilateral burden for EU manufacturers
• Chemical Sectoral Agreement: no partners outside EU found
• Border Tax: risk of trade war
• Premature and overly ambitious: -30% carbon reduction goal by
2020
• Action on climate change is a huge business opportunity, but
Europe must get it right;
Guiding principle: resource efficiency
10
Innovation Essentials
• Educating and attracting talent: meet new skills demands
• Topical innovation networks on key societal challenges
• New innovation policies and instruments
• Cooperation throughout the value chains and across sectors
and borders
• Intellectual property protection & fight against counterfeiting
• Confidence and trust from consumers, customers and investors
• Smart regulation
11
Logistics Recommendations
• Further develop local cluster platforms
• Foster wider use of intermodal transport
• Revitalise railway freight transport
• Address the massive congestion of the road
network
• Close gaps in the olefin pipeline network
12
Conclusions: Quality Cooperation between
Industry and Politics needed
• Innovation is key for more growth with less
resource consumption
• Smart regulation takes the competitiveness of
industry into account
• Level playing field for sourcing energy and
feedstock
• Open markets with fair competition
13