FRANKFURT, June 2 Dow Chemical expects
Europe's chemical industry to face a competitive disadvantage
against U.S. rivals which pay far less for electricity and raw
materials due to shale gas extraction, the group's chief
executive said in an interview in German business daily
"Europe either must obtain cheap gas or pull out of certain
markets and businesses," Dow Chemical's Chief Executive Andrew
Liveris told the newspaper.
In the United States, electricity prices are falling thanks
to gas derived from fracking - the hydraulic fracturing of rock.
On the contrary, in Europe's largest economy Germany
companies like BASF and Lanxess pay some of
the highest power prices in the world thanks in large part to
the country's decision to phase out nuclear power and push into
The top U.S. chemicals maker also expects stronger
competition from firms in Asia and the Middle East.
Liveris wants to expand production at lower-cost locations
and invest more in research and development, the newspaper said.
(Reporting by Kirsti Knolle, editing by David Evans)