Petrochemical industry
The availability and competitive prices of the petrochemical industry's raw materials, as well as a qualified workforce, make Colombia an excellent destination to produce and distribute products derived from the petrochemical sector to the rest of the region.
Why invest in the petrochemical industry?
The petrochemical industry serves various industries while maintaining a growing demand for materials and a consolidated sales market
- Colombia consumes over US 3.744 billion in plastic and rubber resins every year and imports US $2.287 billion worth of products.
- The size of the plastics market records a compound annual historical growth of 10.1%. Similarly, production grew 8% on average in the last five years.
- The plastics and rubber sector in Colombia serves diverse industries that show potential for growth in the coming years, such as medical supplies, construction, and the automotive sectors.
Oil production has increased in recent years, with a potential for expansion based on oil reserves, strengthening the Colombian petrochemical industry
- In addition to the Barrancabermeja refinery, Colombia is also home to Reficar, which has been recognized as the most modern refinery in Latin America. Together, these two facilities have a refining capability of 415,000 barrels of oil per day, which creates high capacities for the local development of the petrochemical projects.
- Unexplored tracts of land offshore are expected to increase hydrocarbon resources.
The cost and availability of raw materials are two of the factors that make this sector one of the most competitive in the region
- The arrival of various stakeholders, as well as the availability of raw materials for the industry, have consolidated petrochemical clusters in the country that bring together the key players in the industry.
- For example, the Cartagena petrochemical-plastics cluster is the leading producer and exporter of petrochemical products in Colombia, accounting for 81.5% of exports and 72.5% of imports in the department of Bolívar.
- This cluster represents 63% of the local industry’s added value. http://investincartagena.com/
The sector offers highly-trained human capital with competitive salaries compared to the rest of the region
- In Colombia, the graduation rate for engineering professions in these sectors is approximately 12,870 graduates every year. According to the publication Human Capital, Colombia’s competitive standards rank 35% higher than those of other countries in the region. https://humancapital-hc.com/
Colombia is the second biggest South-American plastics and rubber exporter after Brazil
- Since 2015, Colombia’s rubber and plastic exports have consistently grown at an average of 3.2%. Exports for these products in 2019 totaled U$ 1,231 Billion
Investment opportunities for the petrochemical sector in Colombia:
- Construction of a PET bottle recycling plant for the production of synthetic polyester fibers, PET sheets, and geotextiles.
- Construction of a tire recycling plant for the production of granulated rubber and rubber sheets.