Joint Ventures in the Petrochemical Industry - Key Strategy to Manage Globalization
NEW YORK, Dec. 14, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Joint Ventures in the Petrochemical Industry - Key Strategy to Manage Globalization
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Joint Ventures in the Petrochemical Industry - Key Strategy to Manage Globalization
Summary
GlobalData, the industry analysis specialist, has released its latest research, "Joint Ventures in the Petrochemical Industry - Key Strategy to Manage Globalization". The study, which is an offering from the company's Petrochemical Research Group, provides an in-depth analysis of the joint venture trends in the global petrochemical industry. It explains the reasons for increase in joint ventures in the Asia Pacific and Middle East region. The study provides detailed analysis of joint venture deals in the recent past. In addition, it gives details of major companies active in joint venture deals across the globe. It also provides the historic and future forecasts of basic petrochemicals and major plastics production in China and the Middle East, which are driving the growth of the global petrochemicals industry. The report highlights the importance of joint venture deals to manage globalization. The report is based upon data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData's research team of industry experts.
The petrochemicals industry entered a transitional phase after the global economic slowdown in 2008-2009 severally affected the growth of the industry. After experiencing difficult times during the downturn, petrochemical producers are now focusing on attaining both economies of scale and geographic expansion to gain a competitive advantage. Producers are seeking to create a presence in demand-rich geographies and are diversifying their portfolios to achieve higher growth rates. This has led to an increase in the number of partnership between companies of different regions. Since European and North American producers are grappling with declining demand, they are setting up joint ventures with Asian or Middle Eastern companies to sustain their profit margin. In the recent past, the majority of joint venture deals have happened in the Middle East and Asia Pacific.
China has established itself as the largest petrochemicals market owing to impressive demand from its large population. The demand for basic petrochemicals and major plastics increased from 42.051 MMtpa in 2000, to 124.703 MMtpa in 2010, at a CAGR of 11.5%, and is expected to increase to 215.033 MMtpa in 2015, at a CAGR of 11.5%. The growing Chinese demand provides opportunities for producers from other regions to utilize this demand by setting up joint ventures with Chinese companies. The Middle East has also become an important destination for petrochemicals production. The Middle East governments provide subsidies on the feedstocks used for petrochemicals production which makes production significantly cheaper compared to other regions. This has made it difficult for producers in other regions to compete. To deal with this situation, companies from other regions are increasingly partnering with the Middle East companies to gain a cost advantage. Joint ventures in these two regions are expected to increase in the next five years as many of the planned projects in these regions are established under joint ventures.
Scope
The report provides in-depth analysis, market opportunities and challenges for manufacturers of petrochemicals, worldwide. It contains detailed information about the joint venture deals by region, joint venture detail for planned projects in Asia Pacific and the Middle East. Its scope includes -
- Effect of economic slowdown on the global petrochemical industry
- Production of basic petrochemicals and major plastics in key regions such as China and the Middle East
- Demand for basic petrochemicals and major plastics in China
- Demand and production split by regions
- Planned capacity addition under joint ventures in Asia Pacific and the Middle East
- Major joint venture deals in the global petrochemicals industry in the year 2010
- Major companies active in the joint venture deals
Reasons to buy
The report will enhance your decision making capability. It will allow you to -
- Understand the impact of the economic crisis on the global petrochemical industry, and how the increased demand from China has led to increase in the number of joint ventures in Asia Pacific
- Develop business strategies with the help of specific insights on joint venture deals in the global petrochemicals industry
- Identify opportunities in the Asian and Middle East petrochemical industry
- Identify prospective investment targets through a comprehensive update and discussion of new petrochemical projects and major trends in China.
- Increase future revenue and profitability with the help of insights on the future opportunities and critical success factors in the global petrochemical industry.
1 Table of Contents
1 Table of Contents 3
1.1 List of Tables 4
1.2 List of Figures 5
2 Introduction 6
2.1 Overview 6
2.2 GlobalData Report Guidance 7
3 Globalisation has Brought Structural Changes in the Global Petrochemicals Industry 8
3.1 China has Become the Largest Contributor to the Growth of Global Petrochemical Industry 8
3.1.1 Fast Growing Chinese Economy is Stimulating the Domestic Petrochemicals Industry 8
3.1.2 Demand for Petrochemicals in China has Grown Threefold in Last Decade 11
3.1.3 Rapidly Growing Demand Necessitated the Construction of More Petrochemical Complexes 13
3.1.4 Favorable Government Polices are Helping China to Gain Foreign Investment 15
3.2 Subsidized Feedstock has Turned the Middle East into Global Petrochemicals Hub 16
3.2.1 The Middle East has one of the Largest Gas Reserves in the World 16
3.2.2 The Middle East Petrochemicals Producers are Most Competitive Due to the Availability of Cheaper Feedstock 17
3.2.3 Petrochemicals Production in the Middle East has Doubled in Last Five Years 17
4 Companies Across the Globe are Focusing on Joint Ventures to Fulfill Supplementary Operations and Expand Geographically 19
4.1 Supplementary Operations Fulfill Mutual Objective of the Companies 19
4.2 Joint Ventures Increase the Geographic Base of Petrochemicals Companies 19
4.2.1 Asia Pacific is Leading in the Joint Venture Activities 19
4.2.2 China is the Most Attractive Market to Set up a Joint Venture 22
4.2.3 Middle East is Attracting Petrochemical Companies Due to Lower Cost of Production 23
4.2.4 Saturated Markets in North America and Europe Discourage Joint Ventures in the Regions 24
5 New Investments through Joint Ventures are Increasing in Asia Pacific and Middle East 26
5.1 Joint Venture Projects in Asia Pacific Expected to Increase in the Future 26
5.1.1 Number of Joint Ventures Deals in Asia Pacific have Increased after the Slowdown 26
5.1.2 One Third of Total Planned Projects in Asia Pacific are Set up by Joint Venture Companies 27
5.1.3 Asian Companies Dominate the Planned Project Investments under a Joint Venture 28
5.2 Joint Ventures in the Middle East Thrived in Last Five Years 33
5.2.1 Middle East Petrochemicals Industry Continued to Grow with Joint Investments in New Production Facilities 33
5.2.2 Majority of Planned Petrochemicals Projects in the Middle East are under Joint Venture 34
5.2.3 European Companies are Setting up Joint Ventures for Planned Projects in the Middle East 35
5.3 Declining Market in North America have Lowered the Joint Venture Deals in the Region 40
5.4 Number of Joint Ventures in Europe Declined Substantially after Economic Slowdown 41
6 Joint Venture Deals Occurred Across the Globe to Manage the Globalization 42
6.1 Ineos Enter into Joint Venture with Sinopec Yangzi Petrochemical Company to Construct China's Largest Phenol Plant 42
6.2 ExxonMobil Chemical and Qatar Petroleum Announced Plan to Construct the World's Largest Steam Cracker Plant 42
6.3 Asahi Kasei and Mitsubishi Unifying Cracker Operations to Secure Profitability 43
6.4 Braskem Enters into Joint Venture with Idesa to Construct the Second Largest Ethylene Plant in Latin America 44
6.5 Mitsui Chemicals and Teijin Formed a Joint Venture to Integrate PET Resin Plants 45
6.6 Joint Venture between Qurain Petrochemical and United Industries to Construct First PTA/PET Plant in Kuwait 46
6.7 LANXESS and Taiwan Synthetic Rubber Corporation (TSRC) to Start a Joint Venture in China 46
6.8 Dynasol Forms Joint Venture with Shanxi Northern Xing'an to Start its First Synthetic Rubber Plant in China 47
6.9 Kuo Group to Build Nitrile Rubber Plant in China through a Joint Venture with Jiangsu GPRO 47
6.10 Indian Oil Corporation (IOC) to Build an SBR Plant under a Joint Venture with TSRC and Marubeni 48
7 Companies Leading in Joint Venture Deals 49
7.1 The Dow Chemical Company 49
7.2 ExxonMobil Chemical Company 53
7.3 Royal Dutch Shell plc 58
8 Appendix 61
8.1 Definitions 61
8.1.1 Installed Plant Capacity 61
8.1.2 Key Feedstock 61
8.1.3 Process 61
8.1.4 Technology 61
8.2 Abbreviations 61
8.3 GlobalData's Research Methodology 61
8.3.1 Coverage 62
8.3.2 Secondary Research 62
8.3.3 Primary Research 62
8.3.4 Expert Panel Validation 63
8.4 Contact Us 63
8.5 Disclaimer 63
List of Tables
Table 1: China Petrochemicals Industry, Total Output Value, $ bn, 2007-2011 9
Table 2: China Automotive Industry, Production Growth, %, 2001-2009 10
Table 3: China Petrochemicals Industry, Basic Petrochemicals and Plastic Demand, MMtpa, 2000- 2015 12
Table 4: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastic Demand by Region, %, 2000-2010 13
Table 5: Petrochemicals Industry, China, Basic Petrochemicals and Major Plastic Production, MMtpa, 2000-2015 14
Table 6: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastic Production Share by Region, %, 2000-2010 15
Table 7: Global Natural Gas Industry, Countries with Largest Natural Gas Reserves, Trillion Cubic Feet, 2011 16
Table 8: Petrochemicals Industry, Middle East and Africa, Basic Petrochemicals and Major Plastics Production, MMtpa, 2000-2015 18
Table 9: Global Petrochemicals Industry, Number of Joint Ventures by Region, %, 2010 20
Table 10: Asia Pacific Petrochemicals Industry, Joint Venture Details, 2010 21
Table 11: China Petrochemicals Industry, Joint Ventures, 2006-2010 22
Table 12: Middle East Petrochemicals Industry, Joint Venture Details, 2010 23
Table 13: North America Petrochemicals Industry, Major Plant Shut Down, 2008-2010 24
Table 14: European Petrochemicals Industry, Major Plant Shut Down, 2008-2010 24
Table 15: Petrochemicals Industry, Europe and North America, Joint Venture Details, 2010 25
Table 16: Asia Pacific Petrochemicals Industry, Number of Joint Ventures, 2006-2010 26
Table 17: Asia Pacific Petrochemicals Industry, Planned Project Ownership Status, %, 2011-2015 27
Table 18: Asia Pacific Petrochemicals Industry, Joint Venture Planned Project Segmentation by Region, %, 2011-2015 28
Table 19: Asia Pacific Petrochemicals Industry, Major Joint Venture Planned Project Details, 2011-2015 29
Table 20: Asia Pacific Petrochemicals Industry, Major Joint Venture Planned Project Details, 2011-2015 (Contd.) 30
Table 21: Asia Pacific Petrochemicals Industry, Major Joint Venture Planned Project Details, 2011-2015 (Contd.) 31
Table 22: Asia Pacific Petrochemicals Industry, Major Joint Venture Planned Project Details, 2011-2015 (Contd.) 32
Table 23: Petrochemicals Industry, Middle East and Africa, Number of Joint Ventures, 2006-2010 33
Table 24: Petrochemicals Industry, Middle East and Africa, Planned Project Equity Detail, %, 2011-2015 34
Table 25: Middle East Petrochemicals Industry, Joint Venture Planned Project Segmentation by Region, %, 2011-2015 35
Table 26: Petrochemicals Industry, Middle East and Africa, Major Joint Venture Planned Project Details, 2011-2015 36
Table 27: Petrochemicals Industry, Middle East and Africa, Major Joint Venture Planned Project Details, 2011-2015 (Contd.) 37
Table 28: Petrochemicals Industry, Middle East and Africa, Major Joint Venture Planned Project Details, 2011-2015 (Contd.) 38
Table 29: Petrochemicals Industry, Middle East and Africa, Major Joint Venture Planned Project Details, 2011-2015 (Contd.) 39
Table 30: North America Petrochemicals Industry, Number of Joint Ventures, 2006-2010 40
Table 31: Europe Petrochemicals Industry, Joint Venture Deals, 2006-2010 41
Table 32: Ineos Phenol and Sinopec YPC JV, Planned Project Details 42
Table 33: ExxonMobil and Qatar Petroleum JV, Planned Project Details 42
Table 34: Asahi Kasei and Mitsubishi Chemical Holdings Joint Venture, Complex Details, 2010 43
Table 35: Braskem and Idesa Group, Planned Project Details 44
Table 36: Mitsui Chemicals and Teijin Limited Joint Venture, Plant Details, 2010 45
Table 37: United Petrochemical Company, Planned Project Details 46
Table 38: LANXESS-TSRC (Nantong) Chemical Industrial Company Ltd., Planned Project Details 46
Table 39: Shanxi Northern Xing'an Chemical Industry and Dynasol Elastomeros Joint Venture, Planned Project Details 47
Table 40: INSA GPRO (Nanjing) Synthetic Rubber Co. Ltd., Planned Project Details 47
Table 41: Indian Oil Corporation, Planned Project Details 48
Table 42: The Dow Chemical Company, Major Joint Ventures 50
Table 43: The Dow Chemical Company, Major Joint Ventures (Contd.) 51
Table 44: The Dow Chemical Company, Major Joint Ventures (Contd.) 52
Table 45: ExxonMobil Chemical Company, Major Joint Ventures 53
Table 46: ExxonMobil Chemical Company, Major Joint Ventures (Contd.) 55
Table 47: ExxonMobil Chemical Company, Major Joint Ventures (Contd.) 57
Table 48: Royal Dutch Shell plc, Major Joint Ventures 58
Table 49: Royal Dutch Shell plc, Major Joint Ventures (Contd.) 59
Table 50: Royal Dutch Shell plc, Major Joint Ventures (Contd.) 60
1.2 List of Figures
Figure 1: Regional Advantages in Joint Ventures 7
Figure 2: China Petrochemicals Industry, Total Output Value, $ bn, 2007-2011 9
Figure 3: Petrochemicals Industry, China, Basic Petrochemicals and Major Plastic Demand, MMtpa, 2000- 2015 11
Figure 4: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastic Demand by Region, %, 2000-2010 12
Figure 5: Petrochemicals Industry, China, Basic Petrochemicals and Major Plastic Production, MMtpa, 2000-2015 13
Figure 6: Global Petrochemicals Industry, Basic Petrochemicals and Major Plastic Production Share by Region, %, 2000-2010 14
Figure 7: Petrochemicals Industry, Middle East and Africa, Basic Petrochemicals and Major Plastics Production, MMtpa, 2000-2015 17
Figure 8: Global Petrochemicals Industry, Number of Joint Ventures by Region, %, 2010 20
Figure 9: China Petrochemicals Industry, Joint Ventures, 2006-2010 22
Figure 10: Asia Pacific Petrochemicals Industry, Number of Joint Ventures, 2006-2010 26
Figure 11: Asia Pacific Petrochemicals Industry, Planned Project Equity Detail, %, 2011-2015 27
Figure 12: Asia Pacific Petrochemicals Industry, Joint Venture Planned Project Segmentation by Region, %, 2011-2015 28
Figure 13: Petrochemicals Industry, Middle East and Africa, Number of Joint Ventures, 2006-2010 33
Figure 14: Petrochemicals Industry, Middle East and Africa, Planned Project Equity Detail, %, 2011-2015 34
Figure 15: Petrochemicals Industry, Middle East, Joint Venture Planned Project Segmentation by Region, %, 2011-2015 35
Figure 16: North America Petrochemicals Industry, Joint Venture Deals, 2006-2010 40
Figure 17: Europe Petrochemicals Industry, Joint Venture Deals, 2006-2010 41
Figure 18: MCT PET Resin Co., Ltd., Supply Chain for PET Bottle Grade Resin, 2011 45
Companies mentioned
The Dow Chemical Company
ExxonMobil Chemical Company
Royal Dutch Shell plc
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Petrochemical Industry: Joint Ventures in the Petrochemical Industry - Key Strategy to Manage Globalization
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