Specialty chemical industry: Managing transitions, creating value

摘要

Globally the chemical industry is passing through a challenging phase with margins squeeze, loss of consumerrnmarkets, and economic slow down in Asia Pacific, Latin America and South Asia, some of the fastest emergingrnmarkets.rnFeed stocks volatilities and non competitive raw materials, combined with high input costs and regulatoryrnpressures, have been pushing the chemical industry and in particular, the fine and specialty chemicals to seek newrngrowth options.rnThe specialty chemical industry is bracing for a difficult year ahead, and economic revival in fast developingrneconomies will have much to do with its pace of recovery. Besides the impact of sharp decreases in sales andrnprofits, producers are grappling with a slump in demand and lack of access to credit. These trends arerncompounded by the slow down in automotive, construction and other user segments.rnAmidst this turmoil managing transitions and creating value has become central to the growth strategies ofrnspecialty chemical players in diverse markets such as coatings, additives, colorants, food ingredients, and waterrntreatment.rnThe strategies that need to be adopted by specialty chemical companies to survive in the highly competitivernspecialty chemical space are outlined.