The persistent shift to an increasingly globalized economy is sharpening focus on developing countries
whose economies are redefining world commerce: and leading the pack is the BRIC nations -Brazil, Russia,
India and China along with the some emerging ones which is forcing the world to strech the BRIC further.
Countries like Turkey, Indonesia, Poland, Saudi Arabia are emerging as the fastest growing nations and
creating lots of interest among the global investors.
The ageing Western economies are even forcing the investors to look beyond the conventional markets and
put their money at the right place which can give them maximum returns.
Alike other industries, the Chemical Industry is also following the same trend and the developing regions are
witnessing huge investments to build capabilities by big munti national giants.
Lured by cheap raw materials along with low labour cost and incentives to make capital investments have
resulted big time investments from western companies to leverage the competitiveness of these regions.
Some of the worthwile investments in chemical industry in these regions in recent time are
BASF: JV for Isocyanates projects in Caojing near Shanghai; Startup of BASF’s first Asian TDI plant in
Yeosu, Korea.(2003); Installation of cabinet trial machine and setting up of TS lab at Bangpoo system house
in Thailand(2004); Decision to establish a wholly-owned world-scale production base for water treatment and
paper chemicals in Nanjing, China(2010)
The Dow Chemical Company: Two JV:- MEGlobal and Equipolymers (2004); Announcement of K-Dow
Chemicals- 50/50 joint venture with PIC; JV with Gujarat Chemicals & Alkalies Ltd for the construction of a
By 2012, more than 38 percent of Lanxess's capital expenditures will be directed toward Asia and Latin
America, compared with less than 20 percent in 2005. Their asset base will grow even faster in the Asian
countries themselves in the coming years.
Swiss producer Clariant, expects to supply 90% of its industrial and consumer specialty (ICS) chemical sales
in China from facilities based in the country from the second half of 2011. They are planning to start up a
50,000 tonne/year ethylene oxide derivatives (EOD) plant at Daya Bay in the second half of 2011.
ExxonMobil Chemical in a joint venture with Qatar Petroleum is building a huge petrochemical complex worth
US$6.0 billion in Ras Laffan Industrial City, in Qatar. The complex includes construction of a 1.6 mtpa steam
cracker, two 650,000 tpa polyethylene plants, and a 700,000 tpa ethylene glycol plant and is expected to be
completed by 2015.
In 2010 Borouge tripled its annual production capacity in Abu Dhabi to 2 million tonnes and an additional 2.5
million tonnes per year is scheduled for completion by the ned of 2013 to create the world's largest
integrated polyolefins plant. Borouge is also investing in plants and logistics hubs in Asia and an innovation
centre in Abu Dhabi.