INDUSTRY
CHEMICALS
Chemical manufacturing provides essential products for such sectors as healthcare, agriculture, construction, and consumer goods. The sector’s performance has been recently affected by overcapacity and decreasing demand. Staying competitive in the chemical sector requires substantial investment in R&D, production facilities, and regulatory compliance.
Industry factsheet
The chemical industry converts raw materials, such as natural oil and gas, air, water, metals, and minerals, into more than 70,000 different products. It is essential for the production of plastics, pharmaceuticals, food, and many other products.
EUROPE TURNOVER
MAIN CURRENCY
DOMESTIC TRADE
FOREIGN TRADE
SUPPLY CHAIN TEARING
€ 550 B
€
45%
55%
4+
EUROPE TURNOVER
€ 550 B
MAIN CURRENCY
€
DOMESTIC TRADE
45%
FOREIGN TRADE
55%
SUPPLY CHAIN TEARING
4+
Notable companies
Creditworthiness
Large multinational chemical companies like BASF and Bayer ususally have a high credit rating (typically, AA or above). Smaller companies might have lower ratings depending on their market exposure and financial health.
Geographic distribution, %
No Data Found
DSO
No Data Found
Working capital challenges
With gross margins falling to 30.1% in specialty and 20.1% in commodity chemicals, the producers are well-advised to have a strong cash buffer combined with a high cash conversion efficiency (EY 2020).
- High raw material costs
- Volatility in raw material prices
- Regulatory compliance costs
- Long lead times for production
- Managing hazardous materials
Invoice sizes
€5,000,000
Maximum
€100,000
Average
€ 5,000
Minimum
Turnover size distribution
Chemical companies, Europe, %
No Data Found
Economic outlook
The chemical industry is expected to see moderate growth, fueled by demand for specialty chemicals, pharmaceuticals, and advanced materials. Sustainability trends and regulatory pressures will push companies towards greener practices and products.
Top invoicing currencies
- EURO
- US Dollar
- British pound
Our working capital solutions for chemical industry
Catalyzing Your Cash Flow
WALBING Cash Forfait
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WALBING Cash Embed
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