European petrochemicals 'at crossroads'

European petrochemicals producers are at a crossroads, with most companies continuing to rationalize operations in a bid to be more competitive in an increasingly global market. This is the view of Datamonitor plc, London, which said companies need to accelerate rationalization and operate on a global scale if they are to remain competitive. "Europe is hindered by cost disadvantages and insufficient plant investment," said Datamonitor. "The issue of overcapacity has been compounded by problems of inefficient capacity." The analyst said competing markets have outpaced Europe in the construction of world-scale facilities, while new capacity in the Middle East and the U.S. a...

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