The Spanish chemical industry production drops by 16% due to crisis

The chemical production site in Tarragona, the most important of the Spanish State and Southern Europe in 2008 fell by 16% over the previous year as a result of the economic crisis.

This is reflected in the public report released today by the Tarragona Chemical Business Association (HECT), entity that groups 26 chemical companies present at the chemical plant in the province, including some gauge as BASF, Dow Chemical, Repsol, Air Products or Ercros.

The data indicate that production in 2008 stood at 17.824 million tons, representing 16% less than in the previous year, when chemical plants produced a total of 21.183 million tonnes.

The decrease is directly related to the economic crisis, although the chemical only started to notice symptoms of recession during the fourth quarter of last year, which does provide some results for 2009 still less complimentary, recognized the president of the HECT, Antón Valero.

Projections show, in this sense that production will fall this year by around 30% over 2008, bringing it to values below 2001.

This is due in part to the crisis in housing and automotive sectors, to which the chemical industry in Tarragona devoted about 10% of its production and whose orders have fallen about 40%, said Valero.

Other sectors, like agriculture and food, have kept the volume of orders, he added.

The drop in orders not only affects production, but is forcing companies to reduce the number of employees themselves, that so far this year has dropped about 5%, which means they have destroyed some 300 jobs, of which 5705 were accounted last year.

Layoffs in regard to staff recruitment in 2008, a total of 4562 people worked indirectly for chemistry Tarragona, are even more bulky, although concrete data are available, said the president of the HECT.

Nor is ruled out of a plant shutdown because "we are still facing a major crisis," he insisted Valero, who has observed that "recently there are signs of movement, which, however," are not yet consolidated.

Will the "October or November," when you start walking to see where the industry has added the head of the HECT, who considers to be "fundamental" the speed of recovery from the Asian continent.

Still, the industry has stated that new investments are being implemented, including $ 15 million of the new center for desalination and water recycling Dow or the six million that is being devoted to the construction of single outfall the south site, which is expected to launch later this year.

Looking ahead, the HECT has presented the principal work of the Strategic Plan 2009-2012, whose objectives are to promote legislation "applicable and consistent" with the sector, sustainably develop the 'cluster' chemical de Tarragona, promote investment productive R & D & I and streamline workflows.