1

The chemical industry as a key for economic development and wealth

Annual meeting of PIBF Andrea Weigel, Cefic

26 March 2009

2

Cefic: European Chemical Industry Council

We are the forum and the voice of the chemical industry in Europe

Brussels based office of 150 people working with over 4,000 people across the industry

about 29,000 small, medium and big chemical companies in Europe

about 1.2 million employees

about 30% of worldwide chemical production

headquarters of Cefic is Brussels, Belgium

homepage: www.cefic.org

3

Structural shifts represent a great challenge for Europe and its industry

Transformation from industry society into service society

Changes by information and communication technologies

Demographic trends: ageing population

Sustainable development

Impact from climate change

EU governance

Global competition/ protectionism

Economic crises

4

29 000 chemical companies of all size class generate yearly sales of almost 550 € billion

Structure by employment size-class*

*excl. pharmaceuticals

96%

28% 35%

Structure by employment size class

5

The chemical industry creates employment in many regions in Europe

1.2 million people directly employed, generating roughly 2.4 employment indirectly.

Employees with medium and high education account for around 80% of workers in the chemical industry.

workers with a high level of education are gaining importance, accounting for almost 27% in 2005

Source: EC (2007) European Business – Facts and Figures

6

The chemical industry is an essential supplier for many other sectors

EU chemical industry consumption structure

7

Chemicals generate wealth for Europe as a traded product

Total trade of the chemical industry amounts to 62 € billion

One of the manufacturing sectors with highest contribution to trade balance

Trade surplus of 35€ billion reflects global competiveness

EU trade balance in chemicals and other manufactures

8

The chemical industry is a science oriented sector with an important R&D spending

Total R&D spending of EU manufacturing in 2003

9

The chemical industry is doing its homework on energy and greenhouse gas emissions

EU chemical industry greenhouse gas emissions, energy consumption and production

The chemical industry represents roughly 1/3 of EU manufacturing energy consumption and 4% of European GHG emission

The intensity indicator shows a continuous performance improvement

-50% reduction in energy intensity since 1990

-60% GHG intensity reduction since 1990

10

Chemicals offer innovative solutions for climate change

Housing insulation (paints, foams, windows)

Oled lamps and LCD screens

Contribution to renewable energies

Green cars: fuel consumption

Better tyres

Fertilizers for food

Chemicals based on renewables

11

Chemicals offer a more sustainable living

Integration of renewable & cleaner

energy sourcesInnovative building envelope

Thermal insulation & management

Efficient appliances & consumables

Next-generation lighting

Domestic energy storage

Water and waste management

Innovative construction & retrofitting materials

Advanced windows

Passive heating and cooling

Management of Distributed Energy

Resources

Indoor environmental

quality systems

Sound insulation & active noise

abatement

Self cleaning surfaces

12

A life cycle perspective gives the full picture and shows the carbon reduction in the use phase

Source: BASF

13

“Chemistry and the innovations in the chemicals industry offer a vast potential and are indispensable to tackle pressing global issues related to energy and climate change, water, food and health. It is of utmost importance that these opportunities are exploited in Europe and that we maintain a strong production base for chemical products in the EU.”

European Commission Vice President Günter Verheugen, responsible for enterprise and industry policy

14

Many thanks for your attention