South Africa's chemicals industry
South Africa is ranked among the top 25 chemical producing countries in the world, and is a world leader in coal-based synthesis and gas-to-liquids technologies.
South Africa's chemicals exports have been growing at an annual average rate of around 19% since 1999, on the back of new trade agreements and heightened competitiveness as a result of low manufacturing costs and plentiful mineral and organic supplies for manufacturing. In addition to low energy costs, the sector benefits from efficient, cost-effective access to water and steam.
SA's chemicals industry is dominated by the basic chemicals sector, with major production of liquid fuels, olefins, organic solvents and industrial mineral derivatives.
Primary, secondary and tertiary products are divided into: petroleum refineries and products (44%); basic chemicals (16%); fertilizers and pesticides (7%); synthetic resins and plastic materials (8%); paints, varnishes and lacquers (4%); medicinal and pharmaceutical preparations (6%); and cleaning, toilet preparations and cosmetics (7%).
South Africa is among the lowest-cost producers of ethylene and propylene in the world, thanks to abundant access to low-grade coal and leading edge process technology.
While the industry remains dominated by local companies, a number of multinationals have local distribution points for their parent companies and several have become involved in local manufacture.
SouthAfrica.info reporter, incorporating material from the Department of Trade and Industry
