Chemicals and Petrochemicals
The competitive dynamics of the chemicals and
petrochemicals industries are changing fast. Strategic investors
and multinational corporations are looking for innovative
approaches to maximize market share and geographical opportunities
while addressing key challenges that the industry is facing,
including rising raw materials costs, regulatory issues and
environmental concerns.
Accounting for around one-fifth of the world
chemical production, the US chemicals industry is a pillar of the
US economy and the largest single producer in the global
marketplace, converting materials such as oil, natural gas, air,
water, metals and minerals into more than 70,000 products.
The US market benefited by removing excess
chemical industry capacity ahead of the economic crisis. However,
the US petrochemicals industry is likely to see a decline in
capacity–particularly in commodity products–over the medium-term
and will focus on improving added value through technological
innovation. Future strategies will focus on investment in R&D
and technology-driven joint ventures (JVs), mergers and
acquisitions. For instance, a major area for innovation is the use
of lightweight packaging and plastics, as an alternative to metal
in certain applications.
Europe remains the major consumer market for
chemicals, including, base chemicals (petrochemicals, inorganics,
industrial gases and fertilizers); specialty and fine chemicals
(including crop protection products); and consumer chemicals (used
in the production of perfumes and cosmetics). However, the
industry's future growth is expected mainly from Asia, particularly
countries such as China, which remains a net importer of
chemicals.
The global specialty chemicals market is
forecast to experience rapid growth over the next five years,
driven by growth in end-user industries, increasing scope of
applications, and innovative focus on producing efficient and safe
chemicals. Other high-growth segments expected to achieve compound
annual growth rates in excess of five percent include advanced
ceramics, construction chemicals, oilfield chemicals and textile
chemicals.
SNR Denton brings together exceptional market
knowledge and expertise in the chemicals and petrochemicals
industry by working seamlessly across firm service lines and global
locations. With a long track record helping industry leaders find
solutions to complex, cross-border legal challenges, SNR Denton’s
team is comprised of lawyers with experience in all aspects of the
industry, advising on business critical decisions, capitalizing on
new opportunities and helping clients mitigate risks. The team has
worked on joint ventures and strategic alliances, mergers and
acquisitions, feedstock and offtake arrangements, technical
services and maintenance arrangements, hosting agreements, real
estate transfers, facilities development, leasing, construction,
intellectual property and environmental matters relating to the
chemicals and petrochemicals industry.
Areas of Focus:
- Offtake arrangements
- Acquisitions and disposals
- Regulation
- Development and finance
- Oil and gas platform