CHEMICAL INDUSTRY FEDERATION OF FINLAND: MODEST GROWTH IN FINNISH CHEMICAL INDUSTRY

4th October 2005

According to the Business Climate Survey of EK (Confederation of Finnish Industries), the Finnish chemical industry companies expect their production to increase, but employment to deteriorate in the near future. The operating environment of the Finnish chemical industry implicates production growth between 2 and 3 %.

Labour dispute caused effects in basic chemicals
There was a two-month labour dispute in the Finnish paper and pulp industry in May-June 2005. The shutdowns in paper mills were reflected in a 10% drop in the Finnish production of basic chemicals. The shutdowns were over in the beginning of July, but the production of basic chemicals did not recover immediately.

Growth in chemical products
The Finnish production of chemical products increased in 2004, although differences between the sub-sectors were wide. Production of cosmetics and cleaning preparations and the pharmaceutical industry increased. Production of paints and colouring materials declined.

Plastic products industry expects steady growth
The growth of the Finnish plastic products industry is due to the growing demand in the products of its customer branches. The building construction is expected to grow 2-3 % which will keep the demand for plastic construction level in a satisfactory level. The brisk growth of the retail trade keeps the demand for plastic packaging materials on a good level.

The outlook is based on the material of the Finnish Outlook dated September 20th, 2005.

Further information:
Chemical Industry Federation of Finland

Mr Kari Teppola,
Tel. +358 9 1728 4315,
kari.teppola@plastics.fi

Mr Pasi Ahde,
Tel. +358 9 1728 4307,
pasi.ahde@chemind.fi

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