GETTING THE MIX RIGHT By Koketso Mamabolo
CHEMICAL IMBALANCES “If the chemical and performance technologies industry in the year 2020 was to be summarised in a single word, that word would be ‘disruption’. Some companies surged, for example, makers of disinfectants and diagnostic reagents, while others struggled—those exposed to automotive, refining,
CHEMICALS SECTOR OVERVIEW
and construction end markets to name but a few. However,
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whether gearing up to meet sudden spikes in demand or struggling to survive, both outcomes resulted in major disruption,” said Paul Harnick and Gillian Morris, Global Head of Chemicals and Performance Technology, and Strategy Advisor at KPMG, respectively. The global disruption was felt in South Africa, with hopes that 2021 would be kinder to the local chemicals sector. The local industry is the largest on the continent, contributing 5% to GDP. It’s the third largest manufacturing sector in South Africa, manufacturing chemicals used for a wide range of goods services, with sales figures reaching R23-billion in October 2021. The beginning of the year saw the industry bouncing back, with the volume of basic chemicals produced increasing in April, May and June. Unfortunately, the four months that followed saw production of basic chemicals drop. Production of other chemical products was less consistent, up in April, May and September, but down in June, July, August and October. Sales grew, year-on-year in April, for all chemicals, with growth continuing into the close of the year, although not as significant as early 2021.
SOURCES prnewswire.com
Disruption can be good, and one of the positive outcomes of the Covid-19 pandemic is how it is pushing the chemicals sector to integrate more technological solutions into their business.
IMPUMELELO TOP EMPOWERMENT
2 1 ST E D I T I O N
durbanchemicalscluster.org.za statssa.gov.za home.kpmg competition.org.za thedtic.gov.za
