Getting it right in China

Zhang, Jimmy; Allen, Andy; Baker, John
September 2006
ICIS Chemical Business;9/11/2006, Vol. 1 Issue 34, p24
Trade Publication
This article looks at the important factors that must be considered by Western chemical companies wanting to build in China. China is the fourth largest economy in the world and, if current projected growth rates are achieved, will soon be the second largest. Just as the economy in China has boomed, so has foreign direct investment. Industry estimates show that 30% of the current investment in the global chemicals industry is in China. Much of this investment is typically in higher value-added chemicals, although Shell Chemicals, BASF and BP all have important operating stakes in China with world-scale projects which include the basic petrochemical building blocks. A plant built in China is likely to cost 55-70% of the cost of an equivalent plant in Europe.


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