In 2008 the petrochemical industry in Eastern Europe saw a significant deterioration due to the decline of the demand in the context of the worldwide economic crisis.
Czech Republic
The petrochemical market is very volatile. While plastics output was unchanged from 2007, the collapse of European car sales had a great impact on the petrochemical sector, which supplies raw materials for suppliers to the automotive industry in the Czech Republic and elsewhere. There is no scope for refinery capacity expansion, although investment in upgrading plants will be obliged as EU fuels specification change.
Poland
The effects of the economic downturn, a decline in exports and domestic demand hit the Polish petrochemical industry. Plans for new capacity were put on hold, with PKN Orlen revising down their programme for the next five years.
Hungary
Output felt by up to 30 % as a result of export order fall and domestic recession. Supplies to industry, such as the automotive sector, were affected as exports suffered the downturn in the rest of Europe.
Romania
The Romanian petrochemical output collapsed in 2008 because of a sharp decline in demand. Capacity utilisation has generally been low, due to limitation of exports and an overall surplus capacity. Rompetrol reduced production by 55% in December 2008. OMV also reduce its production by 20-40%, following a fall in demand. .
Source: Business Monitor International print
