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In an effort to revitalize the Philippines' chemical industry, the government has included the sector in its Investment Priorities Plan and is drawing up 10-year sectoral development programs.
Planners are formulating action programs, incentives and development strategies based on subsector studies--studies on non-tire rubber products, plastic products, sucro-chemicals and fermentation products have already been completed. A Task Force on Science and Technology Development has been commissioned to determine how science and technology can help overall economic growth and development. Made up of government, private-sector and academic experts, it has done extensive research on specific areas in the chemical industry, including market assessments, technological concerns, policy recommendations, and market strategies.
One result of these efforts is that the total market for industrial chemicals--which increased from $485.78 million in 1988, to $536.92 million in 1989 and $577.12 million last year--is expected to grow at an average annual rate of 25-30 percent over the next three years. Sales of intermediate chemicals used in manufacturing consumer goods and other finished products for export showed substantial increases in 1990.
The market depends heavily on imports, which increased from $400.54 million in 1988, to $448.09 million in 1989, and $479.42 million in 1990, and are projected to grow by 15-25 percent a year over the next three years. The bulk of sales over the next three years will be organic chemicals, which made up 65 percent of the total market in 1990.
Manufacturers have kept plants running at 80-percent capacity in order to meet both local and export-market demand. Local producers supplied $237.93 million to the market in 1990, up from $216.31 million in 1989, and are expected to supply $265.00 million this year. Japan took 25 percent of the import market in 1990, and the U.S., 18 percent.
End-Users
The chemical industry's products serve as major inputs for a wide range of industries, from consumer goods to intermediate and capital goods. About 220 chemical firms with aggregate sales of almost P70 million ($3.26 billion) are included in the Philippines' top 2,000 corporations. The industry is generally capital and technology intensive, and it attracts highly skilled and professional workers.
Some of the major consumer products that depend on the chemical industry are drugs, pharmaceuticals, cosmetics, soaps, detergents, adhesives, pastes, sealants,...