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Economic facts

Chemical industry

photo: (mojefoto.cz)

The chemical and pharmaceutical industry belongs among the key branches of manufacturing in the Czech Republic.

The chemical and pharmaceutical industry's products find their use in all sectors of economy, in households and also in recreational activities. The industry has seven product groups, among which the decisive role is played by manufacture of basic chemicals (64% of total receipts) and manufacture of pharmaceuticals (17% of total receipts). Shares of the other groups are lower: manufacture of chemical specialities and fibers (9%), manufacture of cleaning and cosmetic preparations (5%), manufacture of paints and varnishes (4%), manufacture of pesticides and other agrochemical products (1%).

The most important industry with the largest plants in the Czech Republic is the petrochemical industry. Oil refineries are located in Litvínov and Kralupy nad Vltavou. Inorganic chemical production is concentrated in Lovosice, where fertilizers and artificial silk are produced. Explosives are made in Semtín near Pardubice. Pharmaceutical production centers are in Prague and the vicinity, in Ústí nad Labem and Opava. Out of the Czech Top 100 for 2007, the top 10 corporations included the Unipetrol chemical holding (ranked fourth). The list of the Czech Top 100 includes its three subsidiaries: Unipetrol, Kaučuk and Spolana; and in addition BorsodChem–MCHZ, Deza, Zentiva and Aliachem.

The chemical and pharmaceutical industry prospects in the Czech Republic

An appraisal of the chemical industry's prospects is very difficult and depends on many factors: the development of global prices for oil, oil products and other raw materials; trends on the domestic and global markets of chemicals; changes in legislation (REACH) and regulations (which are more stringent in the EU-25 than in other countries, a fact that is declining the competition ability of the European Community). Most experts in prognostics are expecting that besides the prices of raw materials and oil, labor and other costs will also grow (impacts of the REACH legislation under preparation). Further development of the Czech chemical industry will also depend on further steps of PKN Orlen (Poland), which became the majority owner of the petroleum chemistry holding Unipetrol, joint-stock company (in 2004, it shared three-fifths the receipts of the chemical industry). Nevertheless, the prospects for this branch remain positive.