Chemicals

The chemical industry is one of the most important sectors in Spain’s economy. Total market demand for chemical products grew steadily from 1999 to 2004, and estimates for 2005 also predict positive growth. The strength of the Euro and easier access to chemical products overseas are the main reasons why Spanish imports exceed exports. Once the framework and regulatory systems are understood, the Spanish marketplace is relatively easy to enter and offers attractive business prospects for U.S. companies.

The Spanish chemical industry ranks among the most dynamic in Europe. The international economy demonstrated a strong recovery in the chemical sector in 2004, led primarily by the United States and Southeast Asia. The recovery was not as prevalent in European countries, mainly due to the negative impact of the euro-dollar exchange rate. However, total chemical production in Spain for 2004 increased 5.7% over 2003, reaching 34 billion euros ($ 41.25 billion), while the value of the total market was 42 billion euros ($ 51.7 billion). For 2005, it is estimated that this amount increase again, by 3%, translating into sales value of 44 billion euros ($ 54 billion).

The Spanish chemical industry holds a significant position within the EU, ranking fifth in production of chemicals, behind Germany, France, Italy and the UK. The total value of the chemical sector in Europe reached 580 billion euros in 2004 ($ 704.7 billion), with Spain’s 42 billion euros totaling over 7% of that total.

Spain itself is home to several multinational companies who continue to dominate the chemical market and present further competition for American companies wanting to participate in the Spanish marketplace. The following table lists the top ten multinational companies in Spain and their sales (in $ billions) for the years 2002 and 2003.

Source: Revista: Fomento de la Produccion, December 2004 issue