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Can the European Petrochemical Industry Compete Against Emerging Producers Based in the Middle East?

10:54 AM MDT | October 4, 2009 | Ian Young

The European petrochemical industry faces a serious competitive threat from producers in the Middle East. Almost 22 million m.t./year of additional ethylene capacity is scheduled to go onstream in the Middle East between 2008 and the end of 2013, and much of this will be based on low-cost ethane feedstock. Most of the new capacity is destined for export to Asia but a substantial portion will be shipped to Europe, as well as North America, causing major structural change as Middle East producers gain market share in these regions. Analysts estimate that...

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