The Italian petrochemicals industry is set for a period of significant change as Eni seeks to divest its majority share-holding in chemicals producer Versalis and the market environment is faced with economic challenges posed by Brexit and domestic economic problems. There has been significant investment in diversifying feedstock and adding value to production, leading to a recovery in output. ...Italy has already witnessed a period of petrochemicals capacity reduction in order to respond to changes in the global market with some plants permanently closed. Versalis has targeted its loss-making operations in Porto Torres, Priolo and Porto Marghera with the closure or downsizing of poorly performing units and the construction of bio-based plants, transforming the company into a global leader in biochemicals. Versalis is pioneering bio-based rubber and high performance products which could help offset the effects of a decline in business in basic chemicals and polymers. ...The rise in primary plastic production has improved the local availability of raw material for downstream plastic converters, which should reduce imports. Upstream naphtha feedstock supply could be restricted by a reduction in refinery capacity from -.-mn barrels per day (b/d) in ---- to -.-mn b/d in ---- with throughput slowly contracting throughout our forecast period.
...Italy lags behind the curve, the process by which other OECD economies acknowledge that manufacturing is migrating to lower-cost economies in Asia and other regions, hence a need to build up a competitive advantage in alternative sectors. Relatively high levels of corruption and cronyism in certain areas of the economy have led to inefficiency and insufficient allocation of resources. ...Italy lags behind the curve, the process by which other OECD economies acknowledge that manufacturing is migrating to lower-cost economies in Asia and other regions, hence a need to build up a competitive advantage in alternative sectors. Relatively high levels of corruption and cronyism in certain areas of the economy have led to inefficiency and insufficient allocation of resources. Criminal syndicates remain powerful and widespread in many southern regions, holding back economic development. ...Criminal syndicates remain powerful and widespread in many southern regions, holding back economic development. Highly fragmented banking sector with large variability in asset quality and capital adequacy.
...Comprehensive reforms of the labour market, the education system, competition policy and a general simplification of bureaucracy could induce a reversal of trend in the brain drain that has characterised the country over the past -- years. Although Italy s manufacturing sector has suffered through competition from China and other low-cost centres, the country does have the human capital and capital resources to move higher up the value-added chain. ...
