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Chemical Industry News

Global specialty chemical sector evolving in two extremes
Saturday, 03, April 2010


THE GLOBAL specialty chemical industry has revenues in excess of $500bn (€369bn) and is quite fragmented, with 350 industry sub-segments and considerable geographic diversity.While historically, the industry provided growth and added-value characteristics through the early 1990s, it has been on the path of commoditization for some time. The economic crisis that peaked last year featured a significant decline in specialty chemical revenues in North America and Europe but comparatively better performance in Asia.

The world of specialty chemicals has evolved into what is today a two-faced world of extremes - on the one hand dominated by larger players or new larger entrants that lever diversified portfolios, scale and more sophisticated management approaches; and on the other hand characterized by the more traditional focused and multibusiness smaller-cap specialty players.The current economic crisis, while having tested the robustness of both focused and larger diversified players, has not driven the level of consolidation thought likely by many industry observers.
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