Global Chemical Industry Redefines Strategies for New Market Realities, According...

Global Chemical Industry Redefines Strategies for New Market Realities,
According to Deloitte Report

NEW YORK, July 7 /PRNewswire/ -- According to the global chemistry industry
production index, chemical production declined more than 10 percent in the
first half of 2009. And, while demand is expected to regain momentum, it is
unlikely to return to pre-recession levels in the near term. As a result,
chemical companies are using flexible planning strategies to forecast supply
and demand. These strategies, along with the forces moving the industry, are
analyzed in a new report issued today by Deloitte Touche Tohmatsu's (DTT)
Global Manufacturing Industry Group titled, Adapting To A Changing Landscape:
Midyear Outlook For The Global Chemical Industry.

"Chemical companies are struggling with how to effectively plan for the future
given the market's uncertainty," said Tim Hanley, vice chairman and U.S.
Process and Industrial Products industry leader, Deloitte LLP. "Experimenting
with new business models that account for new customers and suppliers may be
the way to navigate through these challenging times."

With strong ties to the performance of the automotive and construction
industries, it is unavoidable that the chemical industry will face major
restructuring in the years ahead. According to the report, by looking at
multiple scenarios for the future, chemical companies may be able to evaluate
a variety of possible outcomes, consider the variables and prepare a flexible
and profitable response. The possibility of increased merger and acquisition
activity, resulting in fewer facilities and a broader geographic footprint,
will provide a more global balance, and Asia's importance to the industry will
continue to increase both from a demand and supply standpoint. However,
deciphering signs of a true recovery from the effects of governmental
assistance may present even more unique challenges.

"Part of the challenge is going to be separating real economic growth from the
effects of economic stimulus packages," said Tom Marriott, principal, Deloitte
Consulting LLP. "Government stimulus money is going to be a key factor
helping companies to regain their momentum. And, because of the large
injection of stimulus in China and its indirect impact on demand in the
chemical industry, companies are also asking themselves if they should be
placing even bigger bets on China and the Asia Pacific region."

Global chemical companies are making tough decisions now that will determine
the future fate of their businesses. Those that have adapted their business
models will be better situated to innovate, create new products, develop new
value propositions, and tap into new markets, ultimately creating future
growth opportunities.

For more information about Deloitte's manufacturing sector and to download a
copy of Adapting To A Changing Landscape: Midyear Outlook For The Global
Chemical Industry, please visit www.deloitte.com/manufacturing.

About Deloitte
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries.
Please see www.deloitte.com/us/about for a detailed description of the legal
structure of Deloitte LLP and its subsidiaries.

Deloitte Touche Tohmatsu Global Manufacturing Industry Group
The Deloitte Touche Tohmatsu ("DTT") Global Manufacturing Industry Group
comprises more than 750 member firm partners and 12,000 industry professionals
in over 45 countries. The group's deep industry knowledge, service line
expertise and thought leadership allows them to solve complex business issues
with member firm clients in every corner of the globe. Deloitte member firms
attract, develop and retain the very best professionals and instill a set of
shared values centered on integrity, value to clients, and commitment to each
other, and strength from diversity. Deloitte member firms provide professional
services to more than 88 percent of the manufacturing companies in the Fortune
Global 500(R). For more information about the Global Manufacturing Industry
Group, please visit www.deloitte.com/manufacturing.

SOURCE Deloitte

Allyson McKenney, Public Relations, Deloitte, +1-203-708-4406,
amckenney@deloitte.com; or Liz Torrez, Public Relations, Hill & Knowlton,
+1-312-255-3036, liz.torrez@hillandknowlton.com