The turnover for the industry nationwide rose to €52.2 billion, an increase over the previous year of 15%. Employment, at the same time, fell by 1% or 1,000 jobs, although the long-term trend of a workforce of about 90,000 remained steady. Investment in research and development (R&D) rose by 6% to a record level of €2.43 billion.

Flanders by itself accounts for a chemical industry that employs 62,000 people directly and another 100,000 in indirectly created jobs - about 10% of the private sector workforce in the region - and has a turnover of more than €30 billion a year. That's 70% of the national sector's turnover. Antwerp province accounts for fully 50% of the region's total, followed by East Flanders (19.1%) and Limburg (12.6%). The sector also makes up about 25% of Flanders' total exports.

"Given the rather limited loss of personnel, and the fact that the sector has consistently continued investing in research and development, I take the liberty of saying the recession has been well-managed. That has undoubtedly had a positive influence when the economy started to recover," said Wouter De Geest, chairman of essencia. "Now we have to move forward, look towards the future as far as the development of products, so that the demands of society are met, but also as far as investment. When it comes to investing in new installation, we have to be prepared to look 20 or 30 years into the future."

On the question of energy policy, however, the industry was critical. Despite being able to cut in half its energy consumption per tonne of product produced since the 1970s, companies are still facing ever-increasing energy bills. "Economic indicators are once again pointing in the right direction," said Yves Verscheuren, managing director of essencia. "Belgium is home to a world- class chemical and pharmaceutical industry, a major advantage that gives us a strong position in the European industry, and helps protect our companies against the waves of consolidation they face," he said.

"Our sector stands by the ambitions of the Belgian government to see 13% of all energy produced from renewable sources by 2013. But that has to take place in a way that allows cost competition, which is at present not at all the case. For the average chemical company, the cost increases of electricity today are 20 times higher than in 2003. If governments don't step in, those costs will escalate, through the exponential cost of offshore wind turbines, the over- subsidising of green energy and the knock-on costs of solar panels," Verscheuren said. "This country has to put energy policy higher on the agenda," said De Geest. "We need intelligent solutions, where energy policy is coupled with climate policy."

"Chemicals is an important sector of the Belgian economy, but if energy policy doesn't change soon, more and more companies will make their investments elsewhere," warned Verscheuren.

The Belgian industry is also facing tough competition in the area of employment costs. While a German worker and a Belgian worker earn roughly the same net wage, De Geest pointed out, the additional costs to employers mean the German turns out 27% cheaper than his Belgian counterpart.