China is the world's second biggest consumer of chemicals, and chemical makers have long derived benefits from the low cost of labour, cheap infrastructure, favourable government policies and an immense market. The industry is now in a process of transition, reaching for new growth drivers. Part of this is developing capabilities in speciality chemicals and high-end polymers. In addition, a distinct shift is underway as governments and enterprises eye a green revolution.
Recent KPMG research reveals that the European chemical industry is set to face serious challenges over the next five years. With global demand collapsing in the wake of the recession and increased competition from low-cost suppliers in the Middle East and China, the European chemical industry is walking uncertainly into the dawn of a new era for global chemical production.
