Europe is frequently portrayed as a relatively disadvantaged location for the production ofbulk petrochemicals. Most certainly there are a number of unwanted aspects associated with theregion, and these are well documented. They include limited access to cheap, gas feedstock, thefragmented nature of production sites, and more generally, structural/market impediments within thevarious economies.The conventional interpretation, however, misses the major, sea changes which are presently affectingthe region and which are perceptibly laying down the foundations for improve standards ofperformance.Not least amongst these changes is the wave of mergers and alliances which has recently impactedEurope. Industry consolidation is radically reshaping the ownership structure of the asset base, whichin turn should provide the basis for material restructuring.Allied to this trend are a number of wider, supportive developments. These include the eastwardextension of the market to embrace much of the FSU, and the gradual evolution of a single economicunion. Together with an increasingly flexible attitude towards reform, this is leading to an improveduse of resources.The overall consequence is that the fundamental structure of the industry, and the environment in whichit operates, is changing for the better. And whilst the agenda is by no means complete, there is nodoubting that a substantial transformation is underway. Coupled with the appropriate managementculture, such reform means that Europe now offers distinct and material upside potential for companiesin the petrochemicals industry.
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