Fine chemicals Chinese market

As in the case of specialty chemicals, fine chemical multinationals with a global reach are likely to become partners of choice for their multinational customers. However, in selected market segments, European custom synthesis or building blocks suppliers face aggressive competition from China as their Chinese competitors are in a superior cost position for the following reasons ... 

Even in their home markets, European custom synthesis or building blocks suppliers, face aggressive competition from China. The situation in the Chinese market is even worse and European Fine Chemical manufacturers particularly in the area of (Generic) Active Pharmaceutical Ingredients are already loosing significant market share against Chinese competitors. 

Today the fine chemicals market in general still offers attractive margins. It is important to emphasize that the variable costs (raw materials and utilities) for Chinese players are often mote or less comparable to those of producers in advanced coimtries. However, European players in particitlar suffer from very... 

Annual growth rate of Chinese fine chemicals market 10% Low entry barriers for new emerging competitors due to low investment, low-cost and often low-tech production Dramatic overcapacity and fierce price competition Highly fragmented industry... 

---