A string of major chemical deals in the past year has established a new lineup of major producers in South America. The deals follow months of rising raw material costs as well as a scarcity of natural gas-based feedstocks in some countries, which have increased chemical imports. Overall business in South America is booming, analysts and executives say. Automobile factories in Brazil, Mexico, and Venezuela are running at record capacity, and chemical suppliers are keeping pace with planned expansions to serve that sector, executives say.
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