Netherlands Petrochemicals Report 2008

Industry Overview The Netherlands has long been the hub of chemicals and petrochemicals activity in the EU. The Dutch chemicals industry enjoys the highest productivity rate among all EU nations, both in basic and speciality chemicals. The chemicals and petrochemicals industry is the countrys second-largest industrial grouping and accounts for 10% of industrial employment, 20% of industrial output, 20% of national exports, 25% of industrial investments and 30% of industrial research and development. Almost 60% of industry turnover is generated from basic chemicals.

Industry Competitiveness The country boasts a strategic location and strong physical infrastructure. These factors, along with the governments pro-business policies and the availability of a skilled workforce, make the country an attractive investment destination. A number of major international firms are present in the Dutch petrochemicals industry. However, some of the countrys regional peers offer cheaper power while its competitors from the Middle East and South East Asia are endowed with abundant inexpensive feedstock.

Major players in the industry include Sabic Europe (a subsidiary of Saudi Arabia-based Sabic Group) as well as Netherlands-based Basell, Shell Nederland Chemie and Akzo Nobel.

Industry Developments As part of its Pernis-Moerdijk project, Shell Nederland Chemie plans to crack hydrowax manufactured at its Pernis facility at its Moerdijk ethylene plant in the Netherlands. The hydrowax will be used at all three of the companys ethylene plants in Europe. In September 2007, US-based ExxonMobil Chemical outlined plans to increase production at its aromatics plant in Rotterdam to cater for the rising demand for benzene and paraxylene (PX) in Europe. In August 2007, Sabic completed the acquisition of GE Plastics.

The company will now be known as Sabic Innovative Plastics. In June 2007, Shell Chemicals - the petrochemicals arm of Netherlands based Royal Dutch Shell - outlined plans to augment flexible polyol capacity at its Pernis site.

Industry Outlook The Dutch chemicals industry has grown at an impressive pace since 2000. According to the Dutch Chemical Industry Association (VNCI), during the first six months of 2007, sales of the total Dutch chemicals industry grew 8%. The association has projected sales growth in the region of 8% during the year. However, rising global oil prices continue to be a threat and may dampen growth.

• Executive Summary
• Industry Overview
• Industry Competitiveness
• Industry Developments
• Industry Outlook
• SWOT Analysis
• Netherlands Chemicals And Petrochemicals Sector SWOT
• Market Overview
  • Table: Netherlands: Enterprises By Activity (January 1 200
  • Table: Netherlands: Exports (In 000 Euros)
  • Table: Netherlands: Imports (In 000 Euros)
  • Table: Netherlands: Petrochemical Sector Cracker Capacity Data And Forecasts (000 tpa)
  • Table: Capacity As Of Jan 1 2006 (tpa)
• Competitive Landscape
• Regulatory Structure
• Industry Trends And Developments
• European Pipeline Development Project
• Legislative Issues
• Business Environment
• Introduction
• Ratings Overview
  • Table: Petrochemicals Business Environment Indicators And Rationale
• Weighting
  • Table: Weighting Of Indicators
• Netherlands: Business Environment Ranking
• Limits To Potential Returns
• Risks To Realisation Of Potential Returns
• Industry Forecast Scenario
  • Table: Netherlands Oil & Gas And Petrochemicals Sector Historical Data
• Economic Outlook
  • Table: Netherlands Macroeconomic Forecasts
• Company Monitor
• Sabic Europe
• Shell Nederland Chemie
• Basell
• BMI Forecast Modelling
• How We Generate Our Industry Forecasts
• Petrochemicals Industry
• Cross Checks