Chemical industry focuses on retaining its innovative capacity and talent
Major fall in demand since the fourth quarter of 2008
The Dutch chemical industry intends to continue to invest in sustainability and innovation. For this reason the sector requests government policies focused on the encouragement of demand, the enhancement of the labour market and the reduction of the cost burden that are required to enable the chemical industry to withstand the recession. Werner Fuhrmann, Vice-Chairman of the Association of the Dutch Chemical Industry (VNCI), made this request during a press conference.
During the first three quarters of 2008 the Dutch chemical industry achieved a 7% increase in turnover as compared to the same period of 2007. However, in the fourth quarter the chemical industry also felt the effects of the economic recession, and both output and selling prices came under pressure. Although the sector was able to achieve a 2% increase in turnover for the whole of 2008 as compared to 2007, this was largely due to the 8.9% increase in selling prices. Output fell by 4.7%. In 2008 the sector generated turnover of 50.2 billion euros. The first two months of 2009 have not revealed indications of an improvement in demand.
VNCI requests the government to implement measures designed to support the business community. The following measures, which need to be implemented in the short term, are of particular importance to the chemical industry:
1. The reduction of the cost burden by the structural and non-recurrent reduction of costs, including the cost of energy.
2. Fiscal measures, including the accelerated depreciation of investments over a longer period of time.
3. The encouragement of demand from the chemical industry’s customers, in particular the construction and car industries.
It will then be essential that healthy companies can obtain the financing they require from the financial markets.
In the longer term a powerful chemical industry will be of essential importance to a sustainable economy, and for this reason the sector’s retention of its highly-qualified personnel and innovative capacity are vital. This in turn requires the following supportive measures:
1. The implementation of an adequate reduction of working-hours scheme and measures to promote the training and mobility of personnel between companies required to enable the sector to retain the maximum possible number of highly-qualified personnel.
2. The chemical industry invests large sums in innovation, energy efficiency and green measures. Appropriate policy is required to further the retention of the pace of targeted and project-based long-term investments in these areas. In addition, an extension of the scope of the Promotion of Research and Development Act (WBSO) is required.
3. The retention of the universities’ powerful knowledge base.
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