Czech Republic Chemicals Report 2008

Industry Overview The Czech Chemicals Industry Constitutes The Country's Third-Largest Industrial Sector, Employing about 114,876 Workers. The Industry Is Largely Dominated by Basic Chemicals Producers, Which Contribute 61% of The Total Output. Further, Czech Republic's Accession to The Eu on May 1 2004 Brought about Radical Changes to The Country's Chemicals Industry, Lifting It to International Standards. Major Chemical Companies in The Country Include Unipetrol, Chemapol Group (Chg), Spolek Pro Chemickou A Hutni Vyrobu (Spolchemie), Agrofert Holdings and Aliachem.

Implementation of Reach According to Registration, Evaluation and Authorisation of Chemicals (Reach) Regulation, Those Enterprises That Manufacture or Import Chemical Substances in Excess of One Tonne per Annum (Tpa) Are Required to Register Themselves on A Central Database. The Czech Chemicals Industry Would Be Required to Invest Heavily to Comply with Provisions of Reach. Furthermore, The Eu Introduced A Revised Version of Reach in October 2006. This Revision Is Likely to Lead to Direct Administrative Costs of Czk4-6bn (Us$177.56-266.34mn) for Chemical Companies.

Industry Developments in Q107, The Spolchemie Group Acquired Setuza, The Largest Czech Oleochemicals Company. in Feb 2007 Firma Chemiczna Dwory (O?Wi?Cim, Poland) Acquired Kau?Uk Kralupy, Czech Republic from Unipetrol (Prague) for Czk5.4bn (Us$248mn). in Jan 2007, Deza as, A Unit of Ameropa's Ag Agrofert Holding as Subsidiary, Acquired A 50% Stake in Agrobohemie, An Investment Company, from Unipetrol as.

Industry Outlook The Czech Chemicals Industry Is Expected to Grow at A Compound Annual Growth Rate (Cagr) of 5% until 2008. Czech Republic's Decision to Enter The Eurozone in 2010 Is Also Likely to Affect The Country's General Business Environment.