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The polyolefin industry in 2003 is a challenging environment, particularly in Europe and for the non-integrated players. This cyclical industry is dominated by integrated oil and gas super majors that add capacity in large increments, leading to long periods of oversupply. The industry experiences severe swings in the prices of oil and gas feedstock, which producers are unable to pass on to their customers. Margins are highly volatile. While consolidation and restructuring continue, strong local players are emerging in developing markets such as the Middle East. These companies have access to low-cost gas and have partnered with the upper majors to gain access to process technology. Smaller, older plants in Western Europe are no longer cost competitive against imports of commodity polyolefins. These markets also risk losing out to imports of semi-finished and finished products from Asia. Clearly over the next few years there will be winners and losers.