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Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases Updated Report Available
BY Brenda Young
South Africa
24 March 2015
R 2 040.00 (ZAR)  
estimated $ 143.81 (USD) *
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Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases


South Africa’s chemical industry is well established, globally competitive and makes use of world class technology. It has an estimated value of R370bn and the sector is South Africa’s fourth-largest employer providing 200,000 jobs. The basic chemicals sector is dominated by larger multinationals such as Sasol, AECI, Omnia and Dow Chemicals, but a number of local players such as NCP Chlorchem, Organic Chemical Corporation (Pty) Ltd and Orthochem are also active in this sector.


Support and Opportunities


The local market can only accommodate a limited number of base chemicals, so South Africa exports large amounts of primary feedstock instead of beneficiating them. However, there are substantial opportunities to beneficiate these basic chemical materials, using local labour and capital, into value-added inorganic chemicals for export. This is the focus of the Department of Trade and Industry and the Industrial Policy Action Plan (IPAP). The speciality chemicals sub-sector also holds potential and South Africa’s rich zirconia deposits are being investigated by the Industrial Development Corporation which hopes to establish new downstream fabrication industries within the country. Although the volume of South Africa’s chemical exports, especially organic chemicals, has grown, much more is imported than exported and the threat of imports from Asian countries, particularly China, is a challenge to the sector. During 2014, total chemical exports were amounted to R24.9bn while imports were valued at approximately R30bn.


Report Coverage


This report examines the major activities of the sector, the size and state of the industry and how government is trying to address the trade imbalance through beneficiation, which should boost the country's value-added exports. The report profiles 34 companies, including the three major producers of industrial and compressed gas in South Africa: Afrox, with its parent company Linde; Air Liquide and Air Products, which collectively hold the major share of the market.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 4
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 16
4.1. Local 16
4.1.1. Corporate Actions 20
4.1.2. Regulations 20
4.1.3. Enterprise Development and Social Economic Development 23
4.2. Continental 24
4.3. International 26
5. INFLUENCING FACTORS 28
5.1. Economic Environment 28
5.2. Rising Input Costs 28
5.3. Government Incentives and Support 29
5.4. Labour 31
5.5. Cyclicality 34
5.6. Information Technology 34
5.7. Environmental Concerns 35
6. COMPETITION 37
6.1. Barriers to Entry 38
6.2. Substitute Products / Alternatives 38
6.3. Technology, Research and Development (R&D) and Innovation 39
7. SWOT ANALYSIS 41
8. OUTLOOK 42
9. INDUSTRY ASSOCIATIONS 42
10. REFERENCES 43
10.1. Publications 43
10.2. Websites 44
APPENDIX 1 46
International Conventions for Chemicals 46
APPENDIX 2 49
South Africa’s Main Trade Agreements 49
APPENDIX 3 53
Government Support and Incentives 53
ORGANOGRAM 56
COMPANY PROFILES 59
AECI LTD 59
AFRICAN OXYGEN LTD 65
AIR LIQUIDE (PTY) LTD 70
AIR PRODUCTS SOUTH AFRICA (PTY) LTD 73
AKULU-MARCHON (PTY) LTD 77
BASF SOUTH AFRICA (PTY) LTD 80
BAYER (PTY) LTD 85
BUCKMAN LABORATORIES (PTY) LTD 89
CHEMICAL INITIATIVES (PTY) LTD 91
CJP CHEMICALS (PTY) LTD 94
CLARIANT SOUTHERN AFRICA (PTY) LTD 96
DELTA EMD LTD 98
DOW AGROSCIENCES SOUTHERN AFRICA (PTY) LTD 102
DOW SOUTHERN AFRICA (PTY) LTD 104
DUPONT DE NEMOURS SOUTH AFRICA (PTY) LTD 108
ENGEN PETROLEUM LTD 110
EVONIK PEROXIDE AFRICA (PTY) LTD 113
FOSKOR (PTY) LTD 115
GOLD REEF SPECIALITY CHEMICALS (PTY) LTD 120
IMPROCHEM (PTY) LTD 122
INDUSTRIAL OLEOCHEMICAL PRODUCTS (PTY) LTD 125
LAKE INTERNATIONAL TECHNOLOGIES (PTY) LTD 127
LANXESS (PTY) LTD 130
MERISOL RSA (PTY) LTD 132
NCP CHLORCHEM (PTY) LTD 134
OMNIA HOLDINGS LTD 137
ORGANIC CHEMICAL CORPORATION (PTY) LTD 141
ORION ENGINEERED CARBONS (PTY) LTD 142
ORTHOCHEM (PTY) LTD 144
PELCHEM SOC LTD 146
ROLFES HOLDINGS LTD 148
SAFRIPOL (PTY) LTD 152
SASOL CHEMICAL INDUSTRIES (PTY) LTD 155
SHELL SOUTH AFRICA ENERGY (PTY) LTD 160
TIOXIDE SOUTHERN AFRICA (PTY) LTD 162