This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 1/9/2020

Overview
In 2018, the suppliers dominating the market share for chemicals falling within HS codes 3808-3907-3824-3101 were: China (30 percent), India (22 percent), Argentina (18 percent), Brazil (13 percent) and the United States (8 percent).  Imports of chemical products grew 19.2 percent in 2018.  Imports from the United States fell by 71 percent. 
The main imports were:

3907600090 - Polylatic Acid
3808932400 - Weed-killers based on paraquat dichloride
3808929990 - Weed-killers to be used in sanitary domestic operations
3808919990 - Fungicides for direct use in sanitary domestic operations
3808911900 – Insecticides based on acephate or bacillus thuringiensis

The local chemical industry normally processes imported raw materials.  Subsidiaries of multinationals account for approximately 60 percent of the chemical industry.  During the last five years, the chemical sector has undergone important transformations in research and development of new products, and the use of new technologies.
Uruguay’s chemical industry is composed of three major sub-sectors:

  • Petrochemical industries (including the production of fertilizers).

  • Fine chemistry and production of specialties, including production of pesticides for the agricultural sector, pharmaceuticals, and hygiene articles.

  • Production of plastics.

Uruguay does not produce basic raw materials such as ethylene and propylene.  The Uruguayan industry is only involved in the final processing stages.

Leading Sub-Sectors
Fertilizers
The Industria Sulfurica Sociedad Anonima controls Uruguay’s fertilizer production.  This company has several plants producing sulphuric acid and oleum with a maximum capacity of 180 tons a day.  Fifty percent of the production of sulphuric acid is for the production of fertilizers, while the other 50 percent is for the production of other chemical products.  During 2018, the Industria Sulfurica Sociedad Anonima imported $60 million worth of fertilizers accounting for 30 percent of all fertilizer imports.
Chemical industries

Chemical industries and especially “fine chemistry” have been particularly dynamic in Uruguay since the 1980s.  Uruguay’s pharmaceutical industry is comprised of 85 companies and 86 laboratories.  The market is fragmented with small- to medium-sized firms controlling a third of the market.  Uruguay’s pharmaceutical industry sells more than $500 million per year and employs more than six thousand people. 

Small- and medium-sized companies make up the cosmetics industry.  Many multinational companies have purchased small local firms to market their perfumes and cosmetics.

Plastics
The plastics sector employs approximately 4,800 people.  Raw material is almost entirely imported and represents between 40 percent and 50 percent of the finished product price.  Uruguay’s Plastics Association is comprised of 60 of the approximately 250 companies in the country’s plastics sector.  The sector processes 150,000 tons of plastic material per year; a large part of production is for export.

Plastic products range from bottles and cups to specialized molded parts for the automotive, agriculture, and medical-products industries.  In Uruguay, the most important sub-sector is containers and packaging, followed by construction products like PVC pipes.  There are also a considerable number of companies engaged in the manufacture of plastic housewares products.  Plastics also play an important role in the medical field with the manufacture of syringes, catheters, and many other plastic-related products.

Opportunities
In the plastics, there are opportunities for U.S. producers of resins for the manufacturer of PET containers.  In petro-chemicals, since almost all the raw material used for the production of fertilizers is imported, this is also potential market for U.S. firms (see next section on fertilizers).

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