ELEME PETROCHEMICAL INDUSTRY

Strategic Analysis of Eleme Petrochemical Industry

Executive Summary

Petrochemical Manufacturing industry plays an important role in the US economy. In fact, many of the goods produced by petrochemical manufacturers are the fundamental building blocks used to produce a variety of consumer and industrial products like detergents and pharmaceuticals. While petrochemicals are essential to many kinds of chemical manufacturing, the industry is still susceptible to economic shifts. Over the five years to 2012, according to the Nigerian National Petroleum Corporation revenue is expected to decline at an average annual rate of 1.8% to $80.8 billion. However, this decline has not been constant. Although the recession caused this industry to suffer in 2008 and 2009, revenue has been on the rise since 2010. During 2008 and 2009, key buying industries reduced their demand for petrochemicals. As downstream industries, such as the construction and packaging industries, bought fewer plastics and chemicals, the industry lowered production, reducing petrochemical revenue. The industry also endured changing raw material costs, which affected price structures. Industry firms had to adjust to shifting production intensity and handle excess capacity. In 2012, though, revenue is anticipated to grow as buying industries increase their manufacturing levels and buy more petrochemicals. According to Report on the Supply of Petroleum Products (2012) rrevenue is expected to grow 2.2% over 2012 because of higher demand, higher prices and stabilized capacity.

Table of Contents

Executive Summary2

Review of Global Petrochemical Industry4

Review of Local Petrochemical Industry5

History of Eleme Petrochemical Industry6

Attractiveness and Performance of Eleme Petrochemical6

Government Regulations7

Sale and Strategy8

Conclusion15

Review of Global Petrochemical Industry

This industry manufactures petrochemicals, which are chemicals derived from petroleum and natural gas. Key products include ethylene, propylene, butylene, benzene, toluene, styrene, xylene, ethyl benzene and cumene. These products are basic building blocks used in the production of consumer products, automotive components and various durable and non-durable goods. Organic compounds like ethyl alcohol and inorganic chemicals like carbon black are not included in this industry. In the literature, there are significant numbers of publications devoted to the modern petrochemical industry. But mostly they cover some petrochemical sub-sector, or the production or products. The state of the industry in individual countries, groups of countries or companies. There are published as technical and economic indices of petrochemical industries, technologies and scientific developments. In scattered publications can be studied the dynamics of prices for petrochemical products, and identified price parities between the oil and gas raw materials, petrochemicals and products of their further processing. The purpose of the book "The World Petrochemical Industry" to provide a generalized picture of the history, present state and prospects for the world (including domestic), the petrochemical industry in the context of global economic, social and environmental trends. The development of the petrochemical industry as a whole shows around the world, some regions and countries over time, analyzes the major structural, technological and regional developments. The development of the petrochemical industry was studied in the light of the strategic directions of the largest transnational, national and private oil and gas and chemical ...