Home / Knowledge / News / Textiles / Future of chemical industry surrounded by dark black clouds
Future of chemical industry surrounded by dark black clouds
06
Jan '09
The chemical industry is facing a tough period since the last few months and more so since the unfolding of the economic crisis and the resultant slowdown in all major consuming sectors of chemicals across the globe. A sharp fall in demand across the board and a squeeze of credit is taking its toll on this once vibrant sector.

One of the biggest chemical majors in the world; BASF had recently announced closure of a number of its worldwide plants and now come reports of the world's third largest chemical company; LyondellBassel contemplating filing for Chapter 11 bankruptcy and thereby joining the long list of companies who have either cut production or totally shut down plants.

Dow Chemicals, the largest chemical company in the US had earlier announced laying-off 5,000 jobs in the process of closing 20 plants in an effort to face the crisis head on. DuPont also announced job cuts and put on hold a proposed expansion plan in China. Major takeover or joint venture deals also have been put on the backburner just like the Hexion and Huntsman deal.

Dow is feeling the blues the most since its deal with the Kuwait based company was scuttled, as it was looking forward to using the proceeds of the deal to repay its debt from the takeover of the , Rohm & Hass. Now it looks likely that the deal could be under pressure. The most recent merger of Lyondell and Bassel in end 2007 may also face the music.

The only companies, who look like cruising through the crisis, seem to be the specialty chemical players rather than those who deal in mass consumption chemicals as they cater to a niche market due to which they are able to withstand pricing pressure compared to companies in to manufacturing of commodity chemicals.

No one is willing to lay a bet on the time frame on the reversal of this slowdown trend, but experts say that if the recessionary trends continue for long, a lot of small and medium size companies could get wiped out for good, with the big players able to withstand the pressure only and only on the strength of their balance sheets. But for how long is the million dollar question everyone's lips.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 29th Jun 2017

Nan Ya files trade petition in US against Korea & Taiwan

Nan Ya Plastics Corporation, America, a US synthetic fibre producer,...

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Apparel/Garments | On 29th Jun 2017

Amazon intends to keep investing and growing in India

American online retail giant Amazon intends to keep investing and...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X