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Europe sees future in strong chemicals sector

EU conference urges need for competitive and sustainable chemical industry in Europe

Antwerp, 14 July 2010 – A conference on the future of the chemical industry is today bringing together 150 industrial representatives, European institutions officials and stakeholders. Taking place under the Belgian Presidency, the conference is being organised by the Belgian Federal Ministry of Economy, essenscia (the Belgian federation of the chemical industry, plastics and life sciences) and Cefic (the European Chemical Industry Council). At this conference, both chemistry federations will be making a number of concrete recommendations on the four topics that are key to a sustainable development of the European chemicals sector: a competitive energy and climate policy, more support for innovation, the need for an integrated European industrial policy and an ambitious trade policy. These recommendations are intended for the Competitiveness Councils that will be held during the six months’ Belgian Presidency.

The world is currently facing global societal challenges: the explosive growth of the world population, the need for 50% more primary energy in 2030, growing urbanization and sustainable mobility. These megatrends will undoubtedly lead to market needs, offering opportunities for the chemical industry to provide innovative and high-tech solutions. Given the increasing competition from Asia and the Middle East and the overcapacity on the market, the future in Europe lies in a strong chemicals sector. It is therefore vitally important that the European Union and its Member States create the right framework conditions for further growth of the European chemicals sector.

Nor is it by chance that the Belgian EU Presidency has chosen the chemical industry as the theme for a top conference. The sector will formulate a number of concrete recommendations for the Competitiveness Councils during the six months of the Belgian Presidency.

Says Wouter De Geest, President of essenscia: “We note that the chemical industry has been able to count on national and European political decision-makers in recent years. In 2007 the European Commission launched a “High Level Group on the Competitiveness of the Chemical Industry”. This working group produced a report in 2009 containing 39 recommendations. In Belgium the Federal government established – last October – a High Level Group for the chemicals sector. These important initiatives show that the strategic importance of our sector is also recognized at a high political level.”

In their recommendations, essenscia and Cefic focus on the role that the chemical industry can play in supporting the realization of the EU2020 Strategy.

“The chemical industry fully supports the EU2020 Strategy for sustainable growth in Europe. This aim will only be achievable with a strong industrial base covering all sectors from basic chemicals to final products. That is why it is essential that the recommendations of the European High Level Group are incorporated in the EU2020 Strategy. After the debate has come the time for action”, added Christian Jourquin, Cefic President.

The chemical industry put forward four proposals:

1. A competitive climate and energy policy
While supporting the goals of the EU climate package, essenscia and Cefic call for a balanced distribution between the different economic players (households, transport and industry). Carbon leakage must be avoided by allocating emission rights based on a realistic benchmark and through activities resulting in sustainable growth of the chemical industry in Europe.

2. Greater support for innovation
European regulation must stimulate innovation and not hinder it. In terms of protection of intellectual property and investments in R&D, the European Union is still lagging behind the U.S. or Japan. A Community patent valid throughout the European Union would enable breakthroughs in innovation that could become commercial and industrial successes.
essenscia and Cefic are counting on a breakthrough in the discussions on the European patent and fully support the efforts of the Belgian Presidency.

3. Need for an integrated European industrial policy
The chemical industry calls for an integrated and horizontal industrial policy, and for the European Union to analyse the impact of its decision-making process, both ex ante and ex post.

4. An ambitious trade policy
As regards trade policy, essenscia and Cefic regret the lack of progress at WTO level and the Doha round. The chemicals sector will benefit from increased liberalization of trade in chemicals and has proposed that all countries with a significant chemical industry do away completely with customs duties.

Says Belgian Minister of Economy Vincent Van Quickenborne: “With this conference, the Belgian Presidency of the European Union wishes to emphasise the importance of the chemical industry as an engine for sustainable innovation. One of the main goals for the Belgian Presidency is to achieve a breakthrough with the European patent.  At the moment, applying for a patent costs six times more in Europe than in the United States, mainly because of translation costs. It is a real brake on innovation and a serious handicap to the competiveness of European firms. We have to get rid of this obstacle.”

Note to the editor
The chemical industry in Europe is a world player. With a turnover of 566 billion euros it accounts for 30% of the sector’s total world sales. More than 1.2 million people work for the chemical industry in Europe.

Contacts:
• Frank Beckx, essenscia spokesperson, tel. +32 2 238 97 08, mobile +32 476 80 94 74, fbeckx@essenscia.be
• Timothy Verhoest, spokesperson for Minister Van Quickenborne, mobile +32 476 94 34 50, timothy.verhoest@quickonomie.be
• Franco Bisegna, media & external communications manager, Cefic, tel. +32 2 676 73 94, fbi@cefic.be

essenscia represents 800 companies in the chemical, plastics and life sciences (pharmaceuticals & biotech) industries.

Cefic is the Brussels-based organisation representing the European chemical industry. It represents 29,000 companies that produce 29% of the world’s chemicals and employ about 1.2 million people.