Brexit uncertainties could force companies to look outside Europe for future investments, the CEO of US chemical major Huntsman said on Thursday.
Peter Huntsman said that the impact of the UK’s departure from the 28-country EU might not be felt for five years.
The CEO added that Huntsman has options to invest at its sites in Geismar, in the US state of Louisiana, and Caojing, China, rather than in the UK or in the EU.
Sanctioning investment in European facilities becomes more difficult as uncertainties about the future UK-EU trade relationship and the regulatory environment persist, he suggested.
Speaking at a Brexit conference organised by the UK chemical trade group Chemical Industries Association (CIA), Huntsman said that Brexit opportunities would take time to surface.
Huntsman added that there are more opportunities for the chemical industry today than at any time in the past, driven by innovation and trade.
“Let’s not get too lost in the weeds,” he said.
Earlier on Thursday, the CIA president, INEOS’ executive Tom Crotty, said that more certainty on the Brexit negotiations and a fixed transition period were key requirements for the chemical industry as the UK exits the EU.
“Regulatory consistency is absolutely crucial [post-Brexit and] we must have access to the best people,” said Crotty, referring to the UK’s current membership of the EU-wide chemical regulation Reach and the ability for the industry to employ any resident across the bloc.
By Nigel Davis
Source: ICIS News
The future CEO of thyssenkrupp Uhde, Nadja Håkansson, has held various management positions at Siemens and Siemens Energy and looks back on over 18 years of national and international experience in the areas of supply chain management, operations, sales and corporate management.
Neste and South Korean company Lotte Chemical have partnered on a project to elevate the sustainability profile of chemicals and plastics. The partnership’s ambition is to replace fossil resources with renewable raw materials that offer a lower carbon footprint.
At least the confidence in the chemical sector has been seeing an upward trend and the trade balance is recovering as destocking seems to be coming to an end. Citing projections from the European Central Bank, CEFIC states that the level of inflation is expected to fall from 5.4% in 2023 to 2.3% in 2024.
