CEFIC Urges Strong EU Industrial Policy

Following a decline of 2% in 2020, European chemical production is forecast to pick up by 3% in 2021, before growth rates taper off slightly in 2022, but output in that year should still land 2% higher against 2021.

In a preliminary look at industry figures for 2020, the European chemical industry council CEFIC said that while these “green shoots” prove that the chemical value chains are among the most resilient in Europe, the longer-term economic outlook “remains highly uncertain,” due to the ongoing Covid-19 pandemic and its knock-on effects.

The entire EU manufacturing sector has been hit hard by the pandemic, said the industry association’s director general, Marco Mensink. This led to a decrease in overall manufacturing output, including chemicals, of 8% last year – even if the burden was eased somewhat by increased demand for chemicals used to produce public health supplies.

Overall capacity of the chemical industry in the EU 27 dropped by about 6% year-on-year in 2020, and sales were €34.8 billion below the January to November 2019 level. Exports decreased by €7.4 billion (4.5%) in the same period, figures show.

Supported by the multi-billion European Recovery Plan package, the EU’s industry can move forward fast, the CEFIC chief executive said. But chemical producers will need the right framework conditions to remain competitive during the transition to a greener economy. This is especially important, Mensink said, if the industry is to stem the “massive investment” the Green Deal will require.

In the transition, CEFIC urged that “Europe must show its leadership in innovating and deploying competitive new technologies for delivering a climate neutral, circular and digital transition, whether it is chemistry for solar panels, wind turbines, batteries, building insulation, medicines or chemical recycling technologies.” To do this, it will need a workable industrial policy that will ensure sustainable economic growth and new jobs.

To secure the required investment and maintain the European chemical sector’s export success story, Mensink said CEFIC expects the Commission’s new industrial policy strategy to provide the markets and conditions for industry to become more sustainable, more competitive globally and more resilient.

Author: Dede Williams, Freelance Journalist

The European chemical industry expects 2021 output to gain 3% against 2020...
The European chemical industry expects 2021 output to gain 3% against 2020 after a 2% decline in 2020 against 2019. To recover from the coronavirus pandemic and pay for the Green Deal, the industry association CEFIC urged the EU Commission to develop a strong industrial policy. (c) Robin Sommer

Innovation Pitch

The Start-up Platform for Chemistry & Life Sciences
Discover Tomorrow’s Innovators

The Start-up Platform for Chemistry & Life Sciences

CHEManager Innovation Pitch supports innovation in the chemistry and life sciences start-up scene. The platform allows founders, young entrepreneurs, and start-ups to present their companies to the industry.

Interview

Fostering Innovation and Collaboration
Specialty Chemicals Distributor IMCD’s Strategy

Fostering Innovation and Collaboration

Valerie Diele-Braun, CEO of IMCD, shares her vision for sustainability, global expansions, and strategic direction in an exclusive CHEManager International interview.

most read

Photo
29.10.2024 • News

GSK to Invest $800 Million in US Manufacturing Facility

British pharma company GlaxoSmithKline (GSK) plans to invest up to $800 million to expand drug substance and drug product manufacturing capabilities at the company’s US site in Marietta, Pennsylvania. The investment, which GSK said is its largest ever in US manufacturing, is expected to create more than 200 new jobs.

Photo
24.01.2025 • News

CEFIC Publishes 2024 Facts and Figures Report

CEFIC , the European Chemical Industry Council, has published its 2024 Facts & Figures report, which reinforces the need to take bold and urgent action to secure Europe’s industrial future, not only to implement the Green Deal but also to prevent further de-industrialization in Europe.