Page 181 - CW E-Magazine (7-1-2025)

18th Annual GPCA Forum

noting the industry’s move from the and green hydrogen to aerospace and ship between chemical companies and
West to the East. With energy costs advanced chip manufacturing. governments to reach climate goals.
and carbon pricing in Europe creating She pointed to the success of the ‘Ant-
a significant competitive disadvantage, A major focus for Syensqo is reduc- werp Declaration’ signed by over 1,200
regions like the Middle East and China ing greenhouse gas emissions and en- industry leaders in Europe, advocating
have become the new powerhouses of abling the circular economy. Dr. Kadri for a competitive, innovation-friendly
chemical manufacturing. This has been shared her company’s ambitious goal of regulatory environment.
compounded by regulatory pressures achieving carbon neutrality by 2040, a
and geopolitical tensions that are strain- feat being pursued through innovative “The chemical industry will not
ing trade and market stability. projects and an internal carbon pricing transition and thrive without the
system. She also highlighted Syensqo’s authorities by our side. We need each
In the face of these challenges, efforts to foster collaboration between other to achieve our climate ambitions.
Dr. Kadri outlined Syensqo’s strategy, industry, government, and academia to The industry provides the affordable
emphasising sustainability, innovation, drive the development of new sustain- innovations needed for the transi-
and regulation. “We solve complicated able materials and technologies, such as tion and government should provide a
problems in attractive, high-growth bio-based and non-metallic materials. stable and simple, regulatory environ-
markets,” she explained, detailing the ment with a level playing field condu-
company’s contributions to a wide Looking to the future, Dr. Kadri cive to commercialising the next gene-
array of sectors, from electric vehicles stressed the need for a strong partner- ration of innovations,” she emphasised.

CHALLENGES & OPPORTUNITIES

Strategising for future growth as industry grapples

with multi-layered disruptions

The world has rarely seen a “multi- duction capacity of 200-million metric
layered disruption” of the chemical tons versus demand of just 175-million
industry as is being witnessed now, metric tons. We are seeing an oversupply
according to Mr. Stefan Koch, Head – rate of 8-15% in base chemicals, which
Chemical and Advanced Materials has been rarely seen in the past. Chinese
Industry, World Economic Forum (WEF). players have revealed ambitions to grow
further into base chemicals, which could
2024 has emerged as a pivotal year aggravate the situation further. This re-
for global geopolitics, he said, with con- sults in mixed profitability depending
flicts such as the Ukraine-Russia war on where you are in the chemical value
and tensions in Gaza disrupting markets chain, and in which region you are posi-
and supply chains. Simultaneously, the tioned,” Mr. Koch said.
world faces political uncertainty driven
by major elections in India, Mexico, Energy costs, driven higher by geo-
Europe, and the US. The global trade political tensions, add to the strain,
environment is undergoing a significant particularly in Europe. “High interest
transformation as decoupling between rates have further compounded diffi-
major powers, particularly the US and Mr. Stefan Koch culties, delaying or cancelling up to a
China, redefines industries. Climate is faced with the “poison cocktail” of quarter of planned capital projects in
change and the uneven CO pricing conti- challenges. “Demand in Asia has fallen 2024,” he said. Although the market for
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nues to remain substantial risks, with below expectations, while an oversupply sustainable products is expanding, the
potential GDP reductions threatening of base chemicals like ethylene has systemic “green premium” expected to
economies worldwide. pressured profitability,” he said. incentivise green investments has yet to
materialise. The industry, responsible
Mr. Koch said the chemical sector “For ethylene, there is a global pro- for 5-6% of global CO emissions, lags
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Chemical Weekly January 7, 2025 181

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