Facts and Figures 2010

The European Chemical Industry in a worldwide perspective

Chemical Industry Profile ..................................................................................................................... 3 World chemicals sales: geographic breakdown .................................................................................. 3 World chemicals sales by region ......................................................................................................... 4 World exports and imports of chemicals by regional shares ............................................................... 5 EU chemical industry sales by geographic breakdown ....................................................................... 6 EU chemicals industry sales by sectoral breakdown .......................................................................... 7 EU chemicals industry sales: structure by destination ........................................................................ 8 EU chemical industry sales structure .................................................................................................. 9 Added value in EU chemicals and other manufacturing sectors ....................................................... 10 EU manufacturing industry: gross operating surplus / turnover ........................................................ 11 Contribution of the chemical industry to the EU economy ................................................................ 12 EU chemical industry: number of enterprises, sales and employment by size-class........................ 13 European chemical industry‟s public image ...................................................................................... 14 International Trade .............................................................................................................................. 15 Extra-EU chemicals trade balance .................................................................................................... 15 Extra-EU chemicals trade by region (exports & imports) .................................................................. 16 Extra-EU chemicals trade flows with major geographic blocs........................................................... 17 EU chemicals trade surplus: sectoral breakdown ............................................................................. 18 EU chemicals trade competitive analysis broken down by region .................................................... 19 Growth .................................................................................................................................................. 22 Production, trade and consumption growth ....................................................................................... 22 Chemicals growth performance against total manufacturing ............................................................ 23 EU chemicals production growth: latest trend and outlook ............................................................... 24 EU Chemical outlook ......................................................................................................................... 25 International comparison of production growth ................................................................................. 26 International comparison of production growth (continued) .............................................................. 27 Chemicals sales by country: top 30 ................................................................................................... 28

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

Dr. Moncef Hadhri (mha@cefic.be)

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Facts and Figures 2010
The European Chemical Industry in a worldwide perspective

Costs .................................................................................................................................................... 29 Cost structure .................................................................................................................................... 29 Labour cost per employee ................................................................................................................. 30 Labour cost per employee and productivity....................................................................................... 31 Energy .................................................................................................................................................. 32 EU chemicals* industry energy consumption by source ................................................................... 32 Energy intensity* in the EU chemicals industry ................................................................................. 33 Energy intensity*: European Union versus United States ................................................................. 34 Employment ......................................................................................................................................... 35 Employment in the chemicals industry: EU versus the USA ............................................................. 35 Labour productivity ............................................................................................................................ 36 EU manufacturing industry: breakdown of investment per employee ............................................... 37 EU manufacturing industry: breakdown of labour cost per employee ............................................... 38 EU labour productivity: chemicals vs. total manufacturing ................................................................ 39 EU chemicals industry: percentage of workers by level of education ............................................... 40 Investment and R&D ........................................................................................................................... 41 Capital spending in the EU ................................................................................................................ 41 Capital spending by region ................................................................................................................ 42 R&D spending by region .................................................................................................................... 43 Total R&D spending .......................................................................................................................... 44 Sustainable Development .................................................................................................................. 45 Greenhouse gas emissions, energy consumption and production* .................................................. 45 Greenhouse gas emissions per unit of energy consumption and per unit of production* ................. 46 Greenhouse gas emissions per production*: EU versus US ............................................................. 47

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

Dr. Moncef Hadhri (mha@cefic.be)

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Facts and Figures 2010
The European Chemical Industry in a worldwide perspective

Chemical Industry Profile
World chemicals sales: geographic breakdown

The European chemical industry can still be portrayed as vibrant and strong. Worldwide competition is getting fiercer, however, as world chemicals sales in 2009 were valued at €1871 billion, a steep decline of 8.4 per cent compared with 2008 due to the spill-over effects of the economic and financial crisis. The €449 billion EU chemical industry is still in a strong position, but has lost its top ranking in terms of sales to Asia, mainly due to the rise of China. Taken together, the European Union, Asia and North American Free Trade Area, account for 89.7 per cent of world turnover.

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

Dr. Moncef Hadhri (mha@cefic.be)

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Facts and Figures 2010
The European Chemical Industry in a worldwide perspective World chemicals sales by region

Developments during the previous 10 years from 1999 to 2009 indicate that the European Union was the clear leader in terms of world chemicals sales, but the region has gradually lost ground to Asia (excluding Japan). Comparing 2009 to 1999, the EU contribution to world chemical sales declined by 8.1 percentage points. In fact, the total value of sales in Europe has been growing continuously, but overall world chemical sales are growing at an even faster clip. The value of world chemicals sales increased by 60 per cent in 2009 compared with 1999.

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

Dr. Moncef Hadhri (mha@cefic.be)

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Moncef Hadhri (mha@cefic.be) 5 . The European Union was the leading exporter and importer of chemicals in the world. 2009 (share %) World imports of chemicals*. accounting for 42 per cent of global trade. as their figures include this trade activity as well. defined as the total value of exports plus imports . chemicals industry excludes pharmaceuticals Unless specified. Asia –including China and Japan – and the North American Free Trade Agreement. the key trading regions were the European Union. 2009 (share %) *including intra EU trade Source: Cefic Chemdata International In 2009. This includes intra-EU trade. mainly for reasons of comparison with other regions. Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective World exports and imports of chemicals by regional shares World exports of chemicals*. EU refers to EU 27 Dr.

be) 6 .Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemical industry sales by geographic breakdown Germany remains the largest chemicals producer in Europe.1 per cent share of total EU chemicals sales. followed by France. Sales levels in Poland represent the largest contribution from “new” EU countries holding a 2. Unless specified. valued at €395 billion. these four countries generate 60 per cent of EU chemicals sales. Spain. valued at €269 billion in 2009. Belgium and Ireland. Together. Moncef Hadhri (mha@cefic. The share rises to 88 per cent. Italy and the United Kingdom. when including the Netherlands. EU refers to EU 27 Dr. chemicals industry excludes pharmaceuticals Unless specified.

In 2002. chemicals industry excludes pharmaceuticals Unless specified. and are sold within the chemical industry itself or to other industries. increasing in 2009 to 60 per cent. Moncef Hadhri (mha@cefic. speciality chemicals. perfumes and cosmetics. and consumer chemicals.be) 7 . Base chemicals cover petrochemicals and derivatives and basic inorganics. Finally.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemicals industry sales by sectoral breakdown Source: Cefic Chemdata International Output from the EU chemicals industry covers three wide ranges of products: base chemicals. They are produced in large volumes. and dyes and pigments. crop protection. they represented 14 per cent of total EU chemicals sales in 2009. Specialty chemicals cover the auxiliaries for industry. consumer chemicals are sold to final consumers: soaps and detergents. EU refers to EU 27 Dr. paints & inks. they represented 58 per cent of total EU chemicals sales. Specialty chemicals are produced in small volumes but nevertheless represented 26 per cent of total EU chemicals sales in 2009. Unless specified. Together.

Unless specified. EU refers to EU 27 Dr. The internal market. Removing both trade and non-trade barriers inside the EU area has been a key driver for the growth and competitiveness of the EU chemicals industry. Moncef Hadhri (mha@cefic. Sales to EU partner countries have more than doubled during the period from 1995 to 2009 (222 versus 98). the internal market has received an intra-trade boost. today numbering 500 million consumers. With the accession of ten new EU member states in 2004 and 2007. is a key competitiveness factor. The European internal market during that 15-year period has had a profoundly positive effect on the chemical industry.be) 8 . chemicals industry excludes pharmaceuticals Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemicals industry sales: structure by destination EU chemicals sales are valued at €449 billion in 2009.

the importance of domestic sales is decreasing. EU refers to EU 27 Dr.excluding domestic sales – accounted for nearly half of total chemical sales by the sector in the European Union. Unless specified. The NAFTA trade bloc. chemicals industry excludes pharmaceuticals Unless specified. Moncef Hadhri (mha@cefic.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemical industry sales structure By 2009. EU neighbour countries and Asia are the key markets. only accounting for 25 per cent of EU sales. Twenty-six per cent of chemicals sales are exported outside of the EU market.be) 9 . While intra-EU sales are rising. however. intra-EU sales .

Behind the two leading groups are basic metals. automotives. Moncef Hadhri (mha@cefic. according to the latest data for the 2006 time period. after pharmaceuticals. Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Added value in EU chemicals and other manufacturing sectors Chemicals form the second leading manufacturing sector. and office machinery and computers. EU refers to EU 27 Dr.be) 10 . and radio. television and communication. in terms of value-added per employee in Europe. chemicals industry excludes pharmaceuticals Unless specified. The chemical industry‟s value added per employee is 84 per cent higher than the combined average of all manufacturing sectors.

Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU manufacturing industry: gross operating surplus / turnover With regard to its gross operating profit. chemicals compares favourably to other manufacturing sectors as well. The ratio of gross operating profits to sales is the 8 th highest in industry and is well above the manufacturing average. chemicals industry excludes pharmaceuticals Unless specified. Moncef Hadhri (mha@cefic. Unless specified.be) 11 . EU refers to EU 27 Dr.

be) 12 . for example in Germany chemicals are the most important supplier of innovative materials for the industry. Unless specified. chemicals industry excludes pharmaceuticals Unless specified. EU refers to EU 27 Dr. there is a wide contribution of chemical products into all branches of the economy.1 per cent. Additionally.6 per cent in 2009 in the EU) along with a rise in services. This may seem small at first sight.7 per cent in 1995 versus 17. Moncef Hadhri (mha@cefic. but should be re-assessed taking into consideration both the shrinking contribution of industry as a whole to GDP in advanced economies (23. Chemicals represent 10 per cent of the supply of input and intermediary products and they show an above average R&D content.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Contribution of the chemical industry to the EU economy The chemical industry's contribution to the EU gross domestic product amounts to 1.

chemicals industry excludes pharmaceuticals Unless specified. Only 4 per cent of the EU enterprises employ more than 249 employees. Moncef Hadhri (mha@cefic. generating 72 per cent of total chemicals sales. Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemical industry: number of enterprises. sales and employment by sizeclass The EU chemical industry comprises 29 000 enterprises (data covering firms with no employees are excluded). EU refers to EU 27 Dr. These account for 28 per cent of sales and 35 per cent of employment.be) 13 . 96 per cent of which have less than 250 employees and are considered as small and medium sized enterprises.

The image of the chemical industry in 2010 is still at the same level as in 2008. chemicals industry excludes pharmaceuticals Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective European chemical industry’s public image In a Cefic-led pan-European survey released in 2010 on public perceptions of the EU chemical industry. survey respondents ranked the chemicals sector sixth out of eight benchmark industries in terms of having a favourable image and ranked it below the overall average for all sectors. Unless specified. EU refers to EU 27 Dr. Moncef Hadhri (mha@cefic.be) 14 .

extra-EU chemical exports – those exports sent outside of the EU internal market – declined in 2009 by 10. In 2009. the EU generated an extra-EU trade surplus of €42.2 per cent. Unless specified. EU refers to EU 27 Dr. Moncef Hadhri (mha@cefic. the EU chemical industry has been in a position to benefit from trade opportunities. Imports to non-EU area. chemicals industry excludes pharmaceuticals Unless specified.6 billion.be) 15 .4 billion more compared with 2008. As a consequence of the economic crisis. which represents about €3.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective International Trade Extra-EU chemicals trade balance As a historically important player in the global chemicals market. fell by 18.4 per cent.

Asia and „Rest of Europe‟ markets contributed in 2009 to 80.8 per cent to 80.3 per cent of extra-EU chemicals trade. calculated as total exports plus imports. excluding Japan.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Extra-EU chemicals trade by region (exports & imports) Extra-EU chemicals trade flow. was 27. the NAFTA. Comparing 2009 with 1999. EU refers to EU 27 Dr.be) 16 . with 27.6 per cent during the same period. was mainly attributable in 2009 to the North American Free Trade Agreement market (NAFTA). Taken together. Unless specified.3 per cent. Moncef Hadhri (mha@cefic. Asia. the contribution of the three main partners of the European Union increased by 13.5 per cent of total flow.5 percentage points from 66.2 per cent while the share of trade flow of other European countries was 25. chemicals industry excludes pharmaceuticals Unless specified.

5 5.0 29.1 7. **Latin America and the Caribbean Source: Cefic Chemdata International The three major geographic blocs trading with the European Union in 2009 were: North America.5 22. and the Rest of Europe. chemicals industry excludes pharmaceuticals Unless specified. Asia.5 3.4 8. Asia (excluding Japan). This means that total chemical imports are growing faster than total chemical exports. Latin America.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Extra-EU chemicals trade flows with major geographic blocs EU chemicals trade flows in euro billion (2009) NAFTA 20. Africa. The Rest of Europe market plays a major role in 2009. Rest of Europe and Africa and has broadly retained its market share in global chemicals sales during the last decade.4 32.4 5.3 Japan Asia* LAC** Africa 2.0 1. The European Union has a surplus with each main trading region – NAFTA. EU refers to EU 27 Dr. Japan.1 5.5 Rest of the World * excl.2 19. The Trade Competitiveness Indicator (TCI) –an indicator that compares the trade balance to the total trade. Unless specified.be) 17 . with €10 billion in net trade surplus in chemicals for the European Union. Japan. of the overall EU chemicals industry since 2003. however. Moncef Hadhri (mha@cefic.5 Rest of Europe 29. namely exports plus imports of a region– reveals a deteriorating competitiveness.

6 billion. petrochemicals and polymers in 2009 registered an increase in their trade surplus of 38 per cent and 31 per cent respectively. Basic inorganics experienced a trade deficit of €1 billion. billion. However.4 billion. followed by petrochemicals at €9. Unless specified. with €13. The trade surplus in these sectors decreased by (7. Consumer chemicals accounted for 32 per cent of the EU chemicals trade surplus with a trade surplus of €13. EU refers to EU 27 Dr. Moncef Hadhri (mha@cefic.6 billion.5 per cent) and (6.2 per cent) respectively in 2009 compared to 2008. The sectoral analysis shows specialty chemicals and consumer chemicals continue to lose ground. Specialty chemicals are the second strongest sector on the world markets. the only sector during 2009 with a trade deficit.1 billion and polymers at €7. chemicals industry excludes pharmaceuticals Unless specified.be) 18 .Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemicals trade surplus: sectoral breakdown The EU chemicals trade surplus in 2009 amounted to €42.5.

India and China are the only two countries with which the European Union currently has a trade deficit for all chemical sub-sectors. Russia has up to now only been successful in using its competitive advantage in raw materials for base chemicals.be) 19 . EU refers to EU 27 Dr. (2005-2009) A look at the EU trade balance in relation to a number of key countries and regions shows that its position is deteriorating with certain key countries in Asia for almost all sub-sectors. chemicals industry excludes pharmaceuticals Unless specified. Continued trade development with the Middle East indicates that this region increasingly uses its feedstock availability. namely petroleum. Moncef Hadhri (mha@cefic. Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemicals trade competitive analysis broken down by region USA Basic Inorganics Petrochemicals Polymers Specialty Chemicals Consumer Chemicals Chemicals (sum) Japan Brazil Russia India China South Korea Middle East Asia Rest of Asia EU has a trade deficit and its competitive position weakened EU has a trade surplus but its positive competitive position weakened EU has a trade deficit but its weak competitive position improved EU has a trade surplus and its healthy competitive position improved Source: Cefic Chemdata International. to develop an integrated chemicals value chain and to strengthen its position in a wider range of basic chemicals. (2000-2004) vs.

Facts and Figures 2010 The European Chemical Industry in a worldwide perspective The trade position of certain important sub-sectors. chemicals industry excludes pharmaceuticals Unless specified. Their global competitive position is at risk. and basic inorganics such as fertilizers. Moncef Hadhri (mha@cefic. EU refers to EU 27 Dr. Unless specified. in particular the raw material and energy-intensive parts of the chemicals industry. namely basic organics such as petrochemicals. shows signs of serious erosion.be) 20 .

Unless specified. The industry has placed itself at the centre of global trade and thus depends vitally on open markets. Moncef Hadhri (mha@cefic.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective International trade is vital for growth and employment of the European chemicals industry. As the most rapid growth is concentrated in the emerging economies. favourable access to these markets is highly important. EU refers to EU 27 Dr.be) 21 . chemicals industry excludes pharmaceuticals Unless specified.

be) 22 . chemicals industry excludes pharmaceuticals Unless specified.2% versus -0. trade and consumption growth During the period from 2004 to 2009. Moncef Hadhri (mha@cefic.4%). Unless specified. slightly exceeding the 2.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Growth Production. EU refers to EU 27 Dr. chemicals sales and consumption registered a small decline. Chemicals sales declined slightly slower than consumption (-0.5 per cent. Import growth during the same five-year period experienced a trend rate of 2.2 per cent trend rate of export growth.

Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Chemicals growth performance against total manufacturing In the 10-year period from 1999 to 2009. chemicals industry excludes pharmaceuticals Unless specified. Chemicals serve as input into essentially all sectors of the economy. thus creating and serving completely new markets. EU refers to EU 27 Dr. the chemical industry is constantly developing new and improved products and processes. Moncef Hadhri (mha@cefic. Unless specified. a rate slightly higher than the 0. the chemical industry had an average growth rate of 0. This enables other industries to be more efficient and productive by using more effective substitute materials and products.4 per cent. and consequently depend on their economic performance.3 per cent average growth rate for total manufacturing. Both averages were extremely low as compared to the long-term averages.be) 23 . These low growth rates were the consequence of dramatic declines in chemical production levels during the 2009 economic downturn as compared with pre-crisis level. In addition to providing for current customers needs.

posting at best mild growth each month but remains sharply down compared to figures in 2008.which started during the second half of 2008. All in all. EU refers to EU 27 Dr. Data that covers activity through 2009 indicate that chemical companies are experiencing strong pressure on margins due in particular to the lack of demand from customers and weak consumer spending. Moncef Hadhri (mha@cefic. chemicals industry excludes pharmaceuticals Unless specified. The magnitude of the economic crisis. Many companies were certainly not expecting such a dramatic downturn.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemicals production growth: latest trend and outlook The EU chemicals industry was profoundly affected by the spill-over effects of the economic and financial crisis. the European chemicals industry reached its lowest point in December 2008.be) 24 . the European chemicals industry is facing additional pressure from competitors outside of Europe. mainly from the Middle East where new petrochemical capacity is now built-up and very likely a large proportion of its output will find its way into European markets.4 per cent in 2009 compared to 2008.was much more severe than expected. Unless specified. Moreover. production since that time has dragged along. Output in the EU chemicals industry experienced a decline of 11.

As there remain significant uncertainties in the economic and financial environment. Growth in chemicals production has continued more strongly and for longer than was expected at the time of our November 2009 forecast. Unless specified. since underlying market demand must firm up. A recovery built on inventory corrections alone is not sustainable. June 2010). The chemicals sector would be sensitive to further economic shocks resulting from such a scenario.be) 25 . chemicals industry excludes pharmaceuticals Unless specified. Basic chemicals sectors are now registering the fastest rebounds. Cefic still expects a pause in the rate of growth of most commodity chemicals sectors. The European chemicals industry continues to face relentless global competition.5 per cent for 2010 and 2 per cent in 2011 (Source. Consequently. however. Access to raw materials and energy at globally competitive prices remains a prerequisite for a successful recovery.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU Chemical outlook Looking ahead: Cefic forecasts a year-on-year production growth of 9. The development of the EU chemicals industry will also depend on the effectiveness of consolidation measures taken within individual EU countries. but in all cases chemicals output remains well below pre-2008 levels. Moncef Hadhri (mha@cefic. The overall economic recovery in Europe. Economic Outlook. any defaults on sovereign debt could trigger renewed problems for banks who would suffer from non performing loan books. EU refers to EU 27 Dr. remains fragile. Surveys also indicate that capacity utilisation within the industry remains well below normal levels.

with average growth rates in chemicals of 10. Moncef Hadhri (mha@cefic. Asia is heavily influenced by the extraordinary performance of the Chinese chemicals sector and a booming economy and industrial sector. well below the world chemical industry average growth rate of 3.be) 26 . The Asia-Pacific region is booming.5 per cent.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective International comparison of production growth During the period from 2004 to 2009.6 per cent.8 per cent during the past five years. The EU chemical sector declined by 1. the EU chemical industry showed the lowest growth rate compared with the biggest regions in the world. EU refers to EU 27 Dr. Unless specified. chemicals industry excludes pharmaceuticals Unless specified.

a meagre rate of only 0.1 per cent. Unless specified. Moncef Hadhri (mha@cefic. both relatively strong trend rates that began several years ago. EU refers to EU 27 Dr.6 per cent one.7 per cent growth rate and Latin America posted a 3. The Asia-Pacific region registered a 9.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective International comparison of production growth (continued) The long-term trend for chemicals production shows that during the years 1999 to 2009. the European chemical industry showed the lowest growth.be) 27 . chemicals industry excludes pharmaceuticals Unless specified.

generating chemicals sales of €753 billion. Twelve of the top 30 major countries are Asian.3% 23.8% 100% world share 22% 2% 21% 4% 40% 1% 90% Unless specified.7% 0. the 30 largest chemical-producing countries had a combined sales turnover of €1685 billion.5% 4. This figure represents nearly 45 per cent of the top 30 and 40 per cent of the share of world chemical production. now numbering 27 member states. Nine of the top 30 are members of the European Union. and representing 22 per cent of world chemicals sales.be) 28 . Number of countries 9 2 3 3 12 1 30 Sales (euro billin) EU Rest of Europe NAFTA Latin America Asia Others Top 30 2009 sales 404 39 396 79 753 14 1685 share (top 30) 24. chemicals industry excludes pharmaceuticals Unless specified. EU refers to EU 27 Dr. Moncef Hadhri (mha@cefic.0% 2.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Chemicals sales by country: top 30 In 2009.7% 44.

Certain sub-sectors are much more sensitive to energy cost as for them it represents a more important input factor – for example the chlor alkali industry. financial charges and depreciation.2 per cent).be) 29 . The gross operating surplus is defined as profits before taxes. Moncef Hadhri (mha@cefic.6 per cent of the chemicals sales value. purchases by the EU chemical industry accounted for 76.7 per cent constitutes the payroll (12. and amounts to 6.3 per cent of the sales value. It needs to be noted that energy costs from the purchase of feedstock. Trading represents the cost of chemicals purchased from third parties and resold in their original condition. The other purchases costs accounted for some 69. chemicals industry excludes pharmaceuticals Unless specified. EU refers to EU 27 Dr. fuel and power represent a key factor in cost competitiveness within the EU chemicals industry. Unless specified.5 per cent) and the gross operating surplus (11.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Costs Cost structure In 2006. which cover partially energy costs.7 per cent of the sales value. covering both trading and other purchases costs. The remaining 23.

EU refers to EU 27 Dr. Moncef Hadhri (mha@cefic.3 per cent per annum from1999 to 2009.be) 30 . which redistributes part of its economic profits to employees via high-wage.5 per cent of chemicals production costs. Labour cost per employee in the EU chemical industry has increased by an average 3. The chemical industry has a highly trained and well educated workforce. Unless specified. chemicals industry excludes pharmaceuticals Unless specified. competitive salaries. a significant share and thus a major factor in competitiveness.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Labour cost per employee Payroll accounts for 12.

4 per cent compared with 2008.3 per cent. Taking out 2009 performance levels. EU refers to EU 27 Dr.1 per cent slower than the labour cost per employee. Moncef Hadhri (mha@cefic. The productivity rate is rising 1. The conditions in 2009 were dramatic for the EU chemicals industry as production declined by 11. chemicals industry excludes pharmaceuticals Unless specified. Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Labour cost per employee and productivity Productivity rates in the EU chemical industry during the period 1999 to 2009 increased at a significant trend rate of 2.2 per cent.be) 31 . The modestly rising labour productivity trend during the past 10 years has been considerably affected by the economic and financial crisis which started in 2008. the analysis shows that labour productivity and labour cost per employee are increasing at a relatively similar rate of 3.

natural gas. using them as raw materials – known as feedstock – and as power and fuel. starch and fats.7 million tonnes of oil equivalent (TOE) of energy. the European chemical industry. electricity and renewables. Energy sector consumption includes coal. This means that most of the energy used by the chemical industry as feedstock is stored in products and can still be reused via recycling. including pharmaceuticals.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Energy EU chemicals* industry energy consumption by source The chemical industry transforms energy and raw materials into products required by other industrial sectors as well as by final consumers. The cost of these two inputs is a prime factor in competitiveness on world markets. oil products. minerals and agricultural raw materials such as sugar. used a total of 138. Moncef Hadhri (mha@cefic.be) 32 . Regarding other raw materials. In 2008. chemicals industry excludes pharmaceuticals Unless specified. Feedstock accounted for 60 per cent of total energy products and fuel and power for nearly 40 per cent. EU refers to EU 27 Dr. taking all sources of energy into account. Unless specified. the chemical industry also uses a wide variety of natural and processed starting materials. including metals.

has made strenuous efforts to improve energy efficiency.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Energy intensity* in the EU chemicals industry For many years. the EU chemical industry.be) 33 . including pharmaceuticals. Unless specified. or the energy consumption per unit of production in the chemical industry. was 41 per cent lower than in 1995. energy intensity. In 2008. Moncef Hadhri (mha@cefic. chemicals industry excludes pharmaceuticals Unless specified. including pharmaceuticals. reducing its fuel and power energy consumption per unit of production. EU refers to EU 27 Dr.

Moncef Hadhri (mha@cefic.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Energy intensity*: European Union versus United States Energy efficiency is subject to decreasing returns: the higher the level of energy efficiency attained.be) 34 . Unless specified. The Chart below shows that energy intensity in the US chemicals industry has declined over the same period (1995-2008) but not as much as in Europe where energy intensity slowed by 3. and consequently lowered its energy intensity significantly by 4 per cent per year on average. the chemical industry has succeeded in increasing continuously its output and at the same time keeping its energy input constant. However. the more difficult it becomes to make further improvements. chemicals industry excludes pharmaceuticals Unless specified. over the previous 14 years from 1995 to 2008. EU refers to EU 27 Dr.4 per cent per year on average.

000 chemical companies employ a total staff of about 1. Employment in the United States has experienced a steeper decline for chemicals over the same period.205 million. chemicals industry excludes pharmaceuticals Unless specified.be) 35 .3 per cent. EU refers to EU 27 Dr.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Employment Employment in the chemicals industry: EU versus the USA In the EU. some 29. Employment in the EU chemical industry has decreased by 2 per cent during the past 10 years from 1999 to 2009. Unless specified. Moncef Hadhri (mha@cefic. declining 3.

Moncef Hadhri (mha@cefic. notably due to high investment per employee and highly educated and trained employees.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Labour productivity The EU chemical industry is a leading industry with high skills and productivity.2 per cent during the 10 years from 1999 to 2009. Unless specified.be) 36 . EU refers to EU 27 Dr. As a consequence. labour productivity in the EU chemical industry rose at an average annual rate of 2. chemicals industry excludes pharmaceuticals Unless specified.

be) 37 .Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU manufacturing industry: breakdown of investment per employee Investment per employee and personnel cost are two important factors for the international competitiveness of the European chemical industry. Workplace equipment in the chemical industry is of top quality and investment per employee is double the manufacturing average. chemicals industry excludes pharmaceuticals Unless specified. Unless specified. Moncef Hadhri (mha@cefic. EU refers to EU 27 Dr. What is interesting to note is that the chemical sector in Europe is first in terms of investment per employee among all manufacturing sectors.

Personnel costs for the EU chemical industry are 47 per cent higher than the average of other manufacturing sectors. EU refers to EU 27 Dr. After pharmaceuticals. Unless specified. chemicals industry excludes pharmaceuticals Unless specified. the chemical industry is the second leading sector in terms of labour cost per employee. followed by the automotive and “other transparent equipment” sectors.be) 38 .Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU manufacturing industry: breakdown of labour cost per employee The labour force employed in the chemical industry is more qualified. Moncef Hadhri (mha@cefic. trained and better paid than the average industrial worker.

faster than the 1.6 per cent labour productivity rate in the total manufacturing sector for the same ten-year period. Moncef Hadhri (mha@cefic. Unless specified. As a consequence. the EU chemical industry has taken vigorous restructuring and cost-saving steps in order to improve its competitiveness over the last decade. EU refers to EU 27 Dr. labour productivity in the chemical industry has been growing at an average annual growth from 1999 to 2009 of 2. chemicals industry excludes pharmaceuticals Unless specified.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU labour productivity: chemicals vs.be) 39 .2 per cent. total manufacturing Due to intensifying global competition.

accounting for almost 27 per cent in 2005.be) 40 .Facts and Figures 2010 The European Chemical Industry in a worldwide perspective EU chemicals industry: percentage of workers by level of education Employees with medium and high education account for around 80 per cent of workers in the chemical industry. While the percentage of people with lower and medium education has been decreasing since 2001. chemicals industry excludes pharmaceuticals Unless specified. Unless specified. This figure is important because the success of the European chemical industry depends on its well trained employees. EU refers to EU 27 Dr. workers with a high level of education are gaining importance. Moncef Hadhri (mha@cefic. based on data 2005. Skills and education are an important factor in international competitiveness and the European chemical industry is facing a global challenge for talent.

In absolute figures. They not only promote the adaptation to and the development of new technologies and innovation. in the European Union has been declining since 1999 rather steadily. EU refers to EU 27 Dr. the ratio of capital spending to sales of the chemical industry.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Investment and R&D Capital spending in the EU Investments in innovation. but are necessary prerequisites for the continuous adjustment of corporate structures to the needs of the marketplace. with a slight recovery in the following three years from 2005 to 2007. chemicals industry excludes pharmaceuticals Unless specified. investment had been growing at a consistent pace between 1995 and 2000 and then declined almost continuously till 2004. including pharmaceuticals. Moncef Hadhri (mha@cefic. It is worth noting that the currently available figures on R&D investments give only part of the picture as it is only the starting point on the path to successful innovation. including research & development (R&D) are key elements in securing the future of the chemical industry. After some choppy movements in previous years.be) 41 . Unless specified. Innovation spending in companies is increasingly included under business development.

including pharmaceuticals. A similar trend has occurred in both Japan and NAFTA (North American Free Trade Area). **estimated data for Japan Source: Cefic Chemdata International The ratio of capital spending to sales in the chemical industry. Japan has registered the highest ratio at 4.8 per cent) and the European Union. EU refers to EU 27 Dr. chemicals industry excludes pharmaceuticals Unless specified. which posted a 4. Unless specified. From 1995 to 2006. in the European Union has been declining since 1999.9 per cent.7 per cent ratio.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Capital spending by region *including pharmaceuticals.be) 42 . Moncef Hadhri (mha@cefic. followed by NAFTA (at 4.

1 per cent. telecommunications. chemicals industry excludes pharmaceuticals Unless specified. EU refers to EU 27 Dr. a slightly higher ratio of 2. consumer goods. The same ratio in Japan is 5. food.2 per cent.be) 43 . Moncef Hadhri (mha@cefic. Typical examples are health. Turning R&D into innovation is becoming increasingly important in relation to the competitiveness of the region. the United States had. Unless specified. aerospace and car manufacturing. around twice as high as the US and EU trading regions.3 per cent than the EU ratio of 2. Analysing the ratio of R&D spending to sales of the chemical industry it can be observed that during the 16-year time period from 1991 to 2007. electrical engineering and electronics. on average. Wide variations in research and development (R&D) efforts are observed across the chemical industry. But these two respective ratios have decreased to similar levels in recent years.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective R&D spending by region **estimated for EU13 Source: Cefic Chemdata International The high value-added products of the chemical industry continuously open up new fields of application and pave the way to progress and innovation in other industries.

Unless specified. accounting for almost one-fourth of total R&D investment of manufacturing.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Total R&D spending EU chemicals account for 8 per cent of total EU manufacturing spending in research and development (R&D)(data 2003). EU refers to EU 27 Dr. Moncef Hadhri (mha@cefic.be) 44 . If the R&D spending of the pharmaceutical sector is included. chemicals are the top investor in R&D in European manufacturing. chemicals industry excludes pharmaceuticals Unless specified.

be) 45 . waste-recycling processes and new products to safeguard the environment include biotechnology processes. production in the EU chemical industry. The chemical industry works to develop cleaner and safer technologies. Besides increasing the energy efficiency of its own processes. membranes and desulphurisation. Unless specified. while total energy consumption was rather stable and greenhouse gas (GHG) emissions fell by 42 per cent. One aspect is increased energy efficiency. Moncef Hadhri (mha@cefic. chemicals industry excludes pharmaceuticals Unless specified. EU refers to EU 27 Dr.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Sustainable Development Greenhouse gas emissions. catalysts. including pharmaceuticals. energy consumption and production* Between 1990 and 2008. the chemical industry also helps to increase the energy efficiency of downstream users and their products through innovative inputs. rose by 69 per cent.

5 per cent since 1990. Unless specified.be) 46 .Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Greenhouse gas emissions per unit of energy consumption and per unit of production* Greenhouse gas (GHG) emissions per unit of energy consumption have been reduced by 41. This shows the enormous effort by the chemical industry to minimise the environmental impact of its production. or GHG intensity. chemicals industry excludes pharmaceuticals Unless specified. by 65. Moncef Hadhri (mha@cefic. EU refers to EU 27 Dr.5 per cent and GHG emissions per unit of production.

the EU chemical sector has reduced its greenhouse gas (GHG) emission intensity.Facts and Figures 2010 The European Chemical Industry in a worldwide perspective Greenhouse gas emissions per production*: EU versus US In comparison to the US chemical industry. Moncef Hadhri (mha@cefic.3 per cent since 1990.5 per cent. calculated as emissions per unit of production. EU refers to EU 27 Dr. by a relatively greater amount and is more GHG emission-efficient. chemicals industry excludes pharmaceuticals Unless specified.be) 47 . The US chemical industry has decreased its emission intensity by 35. whereas the European Union chemical industry has cut its GHG emissions by 65. Unless specified.

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