Greek chemical industry on the road to recovery

Economic recession caused a decline in the production performance of the Greek chemical industry by 2012, but mild recovery was recorded in the last three years due to an increase in demand, particularly from abroad, Alexis Nikolaidis, Economic Research & Sectorial Studies Senior Analyst in Infobank Hellastat SA (IBHS) said in a report released on Monday.

IBHS said that an improvement in the last year was achieved amid a gradual worsening of the political and economic scene, which climaxed with a three-week bank holiday in July and the imposition of capital controls in the country.

The chemical industry’s production index grew by 3.7 pct in 2015 from an 1.2 pct increase in the previous year.

Production volume fell 11.0 pct in July 2015, on a year-on-year basis, but grew in all other months of the year, while a significant percentage of chemical industries were forced to freeze their investment plans.

Exports grew 10.8 pct in 2015 to 165.76 billion euros, after falling for a number of years until 2014, while imports were stable at 914.76 billion euros, after falling by an accumulated 11.7 pct in the last four year.
Greek chemical enterprises faced strong competition from the import of raw materials, particulaly from third countries, because of lower prices.

Petros Bouroutis, Marketing & Business Affairs Manager in Infobank Hellastat said that production companies with an extrovert activity will prove more resilient to the recession, taking advantage of the clearly more satisfactory demand levels recorded from foreign markets.

The IBHS report analyzed the financial reports of 165 production and commercial enterprises in the sector. Total turnover was 1.06 billion euros in 2014, up 5.4 pct from the previous year. EBITDA rose 18.6 pct to 77.45 million euros and EBITDA margin grew to 7.8 pct.