Increased production from new plants will boost the industry's performance
Melbourne, Australia (PRWEB) April 24, 2012
Today the Titanium Dioxide and Other Inorganic Chemical Manufacturing industry in Australia is a vital part of the nation's overall chemical sector, providing several important intermediate chemical products used as basic chemicals in various industrial processes and manufactured products. According to IBISWorld industry analyst Arna Richardson, ‘growth rates have tended to fluctuate in recent times, reflecting the cyclical and global nature of the chemical industry.’ In 2011-12, the industry will generate an estimated $3.3 billion in revenue, essentially unchanged on levels five years earlier. However, this disguises the volatile and dynamic nature of the industry. For example, the addition of new capacity within some product segments was spurred on by Australia's resource commodity boom. At the same time, ongoing structural changes within Australia's general manufacturing base has seen the closure of facilities within other mature product segments where demand has been more subdued.
Over the next five years to 2016-17, revenue is expected to grow as the industry initially benefits (albeit indirectly) from the resumed resources boom. Richardson adds ‘revenue may also be boosted by the increased production output from various new ammonia, ammonium nitrate, sodium cyanide and chlor-alkali plants that have recently come on stream.’ At the same time, higher costs in the face of continued feedstock volatility and increased environmental regulations (including those relating to carbon emissions) and their associated costs may hinder the prospects of the industry through the short-to-medium term. By 2016-17, industry revenue will reach its highest level to date.
The Titanium Dioxide and Other Inorganic Industrial Chemical Manufacturing industry is characterised by a large number of small facilities producing a disparate range of inorganic chemical products, none of which predominate. Overall the industry is deemed to have a low level of market share concentration. However, concentration levels may vary between segments. The four largest players in the industry are Wesfarmers, Orica, Tronox Western Australia, and Millennium Inorganic Chemicals.
For more information, visit IBISWorld’s Titanium Dioxide and Other Inorganic Chemical Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry produce a variety of basic inorganic chemicals. These tend to be intermediate products used as basic chemicals in industrial processes or manufacturing products, thus key customers include various manufacturers. Key identifiable products within the industry include titanium dioxide, sodium cyanide, industrial grade ammonia, caustic soda, sulphuric acid, soda ash and chlor-alkali products.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.