BMI's Executive Summary

[TOP]

Industry Overview

The Hungarian chemicals industry has undergone rapid globalisation following an increase in investment by multinationals. Low entry barriers in the country have hiked up competition for local players. Hungary's chemicals industry comprises various sub-segments such as petroleum refining, plastics and rubber, pharmaceuticals, pesticides and detergents. Chemical companies export the majority of their production due to limited local demand and diminishing trade barriers. Hungary has around 2,500 chemical companies. Hungary-based BorsodChem (BC), Tiszai Vegyi Kombinat Nyilvanosan Mukodo (TVK) and Pannonplast Muanyagipari are the major players in the industry.

Business Environment

The cost of production in the Hungarian chemicals industry has increased due to the rapid increase in input prices that occurred in the crude oil derivative raw material markets. The chemical firms using crude oil derivatives have raised the selling prices of their finished products. However, the increment in cost of production is offset by low wage rates in the country. Firms established in Hungary benefit from a low corporate tax rate of about 16%, compared to around 35% in the EU-15 nations.

Trends And Developments

Linde AG of Germany and BorsodChem Zrt agreed to expand their co-operation on industrial gas supplies to BorsodChem's main production site in Kazincbarcika. Agroferm will increase its annual production capacity of Threonine to 20,000 metric tonnes. Pannonplast Muanyagipari Rt. acquired a 42% stake in FCI Furukawa Composite Insulator Ltd. from Furukawa Electric Co. Ltd. for EUR1.05mn. Pannonplast already owned 58% stake in FCI Furukawa.

Industry Forecast

The growth of the Hungarian chemical industry slowed down in 2006 compared to the previous year. In 2006, the production of the chemical industry increased by 3.3% compared to 7.7% in 2005. This was considerably lower compared to growth in industry as a whole, which stood at 10.1% in 2006. Though the figures are still not out, it's unlikely that growth picked up in 2007. Furthermore, the chemical industry growth is likely to remain much below 4% because of the prognosis of an impending economic slowdown in world markets.

Contents

[TOP]

Chapter 1 - Executive Summary

Industry Overview

Trends and Developments

Implications of European Union Membership

Industry Forecast

Hungary Chemicals Industry SWOT

Hungary Business Environment SWOT

Chapter 2 - Market Overview

Market Structure

Basic Chemicals

Fine and Speciality Chemicals

Sales

Import and Exports

Investments and FDI

Business Environment

Implications of European Union Membership

REACH: The New EU Chemicals Legislation

Projects And Expansions

Acquisitions And Finance

Company Developments

Concerns Over Rising Energy Costs

Chapter 3 - Industry Forecast Scenario

Table: Hungary Chemical Industry Forecast (EURmn)

Chapter 4 - Macroeconomic Forecast

Table: Nominal And Real GDP

Chapter 5 - Company Profiles

BorsodChem (BC)

Tiszai Vegyi Kombinat Nyilvanosan Mukodo Rt

Pannonplast Muanyagipari

Chapter 6 - BMI Forecast Modelling

How we generate our industry forecasts

Chemicals & Petrochemicals Industry

Cross Checks

Competitive Landscape for Emerging Europe chemicals Reports: Sample of
   Companies Ranked

[TOP]

Comparative company analyses and rankings by US$ sales, % market share, employee size, registration date and ownership structure. Company SWOTs on all leading international and national operators in each market, including competitive intelligence on the following: Overall geographic presence, competitive positioning against local companies; production capacity, sales and market share; joint ventures, foreign direct investment, projects and acquisitions strategy.