Press Releases 1997

[Index]

FOREIGN INVESTMENT OPPORTUNITIES IN CHEMICALS IN CENTRAL AND EASTERN EUROPE^*

17 November 1997

The United Nations Economic Commission for Europe (UN/ECE) has just published a study on Structural and Ownership Changes in the Chemical Industry of Countries in Transition. The study provides valuable background data for understanding the opportunities in the chemical industry of these countries - whether as customers, suppliers, alliance partners or for investment. It describes in detail the chemical industry in nearly 20 countries in central and eastern Europe and outlines the general industrial development and the legal framework for privatization and foreign investment in each country.

With a total population of over 400 million, the 25 countries in central and eastern Europe are climbing out of the economic doldrums of the past decades and many are on their way to substantial industrial growth. In 1997 almost all of them should show positive increases, many for the first time in 10 years, and with that comes improved chemical industry activity. Coupled with that growth is a more open attitude towards various kinds of alliances by chemical industry managers and government officials - joint ventures, licenses, direct investment or any of several other forms.

Many of the problems of the past are now on their way to being resolved. Privatization and environmental laws have been enacted, intellectual property is more highly respected, banking is opening up. Privatization, including encouragement of foreign investment, although proceeding more slowly than at first expected, is indeed a fact - and continuing.

Being there early, as improvements occur, puts a firm in an excellent position to capitalize on the inevitable future growth. The initial reluctance of foreign investors to engage themselves in the area is now greatly diminishing, as the difficulties in the region are gradually becoming resolved. High educational levels, low wages, and access to raw materials are great attractions for the chemical industry.

The study is available, quoting Sales No. E.97.II.E.17, through the usual United Nations sales agents in various countries or from the United Nations Office at Geneva, priced at US$ 75. Further information about the study can be obtained from:

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* Countries covered in detail are as follows: Armenia, Bulgaria, Czech Republic, Estonia, Georgia, Hungary, Kyrgyzstan, Latvia, Lithuania, Poland, Republic of Moldova, Romania, Russian Federation, Slovakia, Slovenia, The former Yugoslav Republic of Macedonia, and Ukraine. Summaries are provided for Albania, Azerbaijan, Belarus, Kazakhstan, Tajikistan, Turkmenistan and Uzbekistan.