Europe is facing a “double risk”

European car and chemical manufacturers risk losing competitiveness to China and the United States as both industries face continued high energy costs in the transition to cleaner fuels.

That is the opinion of Mr. Jacques Vandermeiren, CEO of Antwerp-Bruges port - the second busiest seaport in Europe in terms of container volume and allowing large ships to dock.

“We are in a dangerous situation,” Vandermeiren said in a recent interview at the Salzburg Summit, which took place July 26-28 in Austria. “For Europe, having the chemicals industry in trouble and seeing Chinese electric vehicles flooding the market is a double risk.”

Europe “is going to have a very difficult decade,” the CEO predicted.

Persistently high energy costs are a significant concern, especially as the European Central Bank (ECB) on July 27 made its ninth consecutive interest rate hike, adding 0.25 percentage points, while leaving options open for its next policy meeting in September.

We are in a dangerous situation. For Europe, the difficulty of the chemical industry and the flooding of the market by Chinese electric vehicles is a double risk – Jacques Vandermeiren, CEO of the Port of Antwerp-Bruges

This decision only adds to the burden on industries that are already struggling with high energy prices, such as the chemical industry, which in turn affects freight volumes.

Earlier this month, German giant BASF SE joined other chemical makers in cutting its growth forecast for this year, citing a slowdown in global industrial output and weak demand for consumer products.

Mr. Jacques Vandermeiren, CEO of the Port of Antwerp-Bruges, Belgium. Photo: Salzburg Summit

Mr Vandermeiren pointed to a “significant slowdown” in the chemicals industry, with output down 13% from January to April this year compared to the same period in 2022.

The decline has raised alarms about the possibility of closure or relocation of some plants, threatening the competitiveness of the chemical industry in the old continent.

“The next phase will be about closing some plants,” he said. “The competitiveness of the chemical industry in Europe is really under threat.”

Automotive transport, including electric vehicles, has been the only sector to recover in recent months, driven largely by exports from China.

But the flow of Chinese-made cars into Europe is also slowing due to a lack of specialized equipment and infrastructure designed to handle these wheeled imports, according to Mr Vandermeiren.

“Chinese companies are also frustrated by the lack of capacity in European ports,” he said, adding that they have used conventional container ships and containers to make up for the shortage, and “that is of course not an ideal solution” in the long term.

Despite these challenges, there are opportunities for growth and innovation. For example, the shift to cleaner fuels provides an opportunity for industries to innovate and develop new technologies and processes. The recovery of the motor transport sector also offers a glimmer of hope, demonstrating that resilience and growth are possible even in challenging conditions.

The future of the European automotive and chemicals industries will depend on how well they can overcome these challenges and seize the new opportunities that arise. The decisions made now will shape the European industrial landscape for years to come .

Minh Duc (According to Bloomberg, BNN Network)

Source: https://www.nguoiduatin.vn/chau-au-dang-doi-mat-voi-rui-ro-kep-a619505.html