Chemistry Reference
In-Depth Information
CHEMICAL INDUSTRY
C
HARACTERISTICS
Large, diverse, and complex
Global
Strong technology base
Many segments, highly fragmented
Subject to business cycles
Highly competitive
Capital intensive
Committed to research and development
Advanced in use of computers and computer controls
Over 50% of the products are based on petroleum
Best employee safety record among all major industries
Criticized for many environmental problems
Because of the absolute necessity for chemicals in almost every manufac-
turing industry, it is difficult to define exactly what the chemical industry is.
A good definition, however, is that the chemical industry consists of all
companies engaged in converting raw materials obtained from the environ-
ment (air, ore, petroleum, trees, crops, etc.) into chemical intermediates plus
the companies that convert these intermediates into consumer end products.
Chemicals derived from petroleum or natural gas, known as
,
comprise about 55% of the total chemicals produced. Some of the global-
ization of the chemical industry now taking place is due to the shifting of
production by petrochemical producers to energy-rich regions of the world
such as Indonesia, Mexico, and the Middle East.
petrochemicals
