GlobalData : Basic petrochemicals and major plastics are expected to increase To
By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
GlobalData, the industry analysis specialist, has released its latest research, Joint Ventures in the Petrochemical Industry - Key Strategy to Manage Globalization. The study, which is an offering from the company\'\'\'s Petrochemical Research Group,
GlobalData, the industry analysis specialist, has released its latest research, Joint Ventures in the Petrochemical Industry - Key Strategy to Manage Globalization. The study, which is an offering from the company's Petrochemical Research Group, provides an in-depth analysis of the joint venture trends in the global petrochemical industry.
The petrochemicals industry entered a transitional phase after the global economic slowdown in 2008-2009 severally affected the growth of the industry. After experiencing difficult times during the downturn, petrochemical producers are now focusing on attaining both economies of scale and geographic expansion to gain a competitive advantage. Producers are seeking to create a presence in demand-rich geographies and are diversifying their portfolios to achieve higher growth rates. This has led to an increase in the number of partnership between companies of different regions. Since European and North American producers are grappling with declining demand, they are setting up joint ventures with Asian or Middle Eastern companies to sustain their profit margin. In the recent past, the majority of joint venture deals have happened in the Middle East and Asia Pacific.
China has established itself as the largest petrochemicals market owing to impressive demand from its large population. The demand for basic petrochemicals and major plastics increased from 42.051 MMtpa in 2000, to 124.703 MMtpa in 2010, at a CAGR of 11.5%, and is expected to increase to 215.033 MMtpa in 2015, at a CAGR of 11.5%.
The growing Chinese demand provides opportunities for producers from other regions to utilize this demand by setting up joint ventures with Chinese companies. The Middle East has also become an important destination for petrochemicals production.