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NZ's petroleum, chemicals and polymer products sector facing big challenges - Westpac

Fuseworks Media
Fuseworks Media

Technological change and growing environmental concerns are likely to bring some big changes New Zealand’s petroleum, chemicals and polymer products sector according to new research from Westpac NZ’s economic team.

Westpac NZ Industry Economist, Paul Clark, says that with the economy still moving at a fair clip, the near-term prospects for the sector look favourable.

"Longer-term though, this sector’s fortunes will be shaped by technological change and intensifying environmental pressures, which will fundamentally change what and how things are consumed and produced. A shakeup of the sector is likely."

Mr Clark says that to stay ahead of the curve, firms will have to anticipate these changes. "They will have to come up with new products, new work organisation methods and new ways of doing business."

"For some this will be a step too far and as a result some firms are likely to go out of business or be swallowed up by others that are looking to scale up. While no sub-sector will be left untouched, we think firms that manufacture polymer products will be most vulnerable."

"For those able to make the jump, opportunities abound. However, to exploit these, firms will have to partner more closely with large global chemical manufacturers, leveraging off their technology and IP to deliver value added solutions to their increasingly demanding customer base," says Mr Clark.

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