The Dutch Chemical Industry Association (VNCI) said the sector was continuing its recovery, with quarterly sales growth coming from increased production and higher selling prices as companies passed on rising costs to customers.
Output rose by almost three percent in the first quarter, VNCI said, pointing to Statistics Netherlands figures.
“Chemical companies are generally optimistic and see both opportunities and causes for concern for the remainder of the year,” VNCI said in a statement.
VNCI, whose members include Dutch paints group AkzoNobel and vitamins maker DSM, pointed to Statistics Netherlands figures indicating businesses in the industry plan to increase investment by 73 percent in 2011.
This compares with a 36 percent drop in investments in 2010 to 0.9 billion euros from 1.4 billion in 2009.
The planned investments show a mixed picture, however, as companies are keen to spend on R&D and efficiency improvements but also deferred expansion investments.
VNCI Chairman Werner Fuhrmann said it was uncertain whether 2011 would be a better year for the sector than 2010 as this was dependent on the euro crisis, the after-effects of the Japanese earthquake, inflation in China and turmoil in the Middle East.
The chemical industry is primarily oriented at exports, which makes it very sensitive to such developments, currency rate movements and fluctuating oil and raw-material prices.
Global chemicals companies have been battling rising raw materials costs.
AkzoNobel and DSM reported strong quarterly results on improved demand and price hikes as they also guided for improved results in 2011.
In 2010, chemical industry production rose by more than seven percent in 2010, while sales rose by 25 percent to 47 billion euro ($66.1 billion), while selling prices rose by 20 percent.
