With jobs hanging in the balance at Ineos, Grangemouth
last week, how secure is the chemical industry in the UK at present? The UK
Government plan to grow the chemical sector by 50%, over the next 17 years, by strengthening
supply chains so that technologies and products are sourced in the UK.
The UK Chemical industry represents around 12% of value added in manufacturing, equivalent to 1.5% of GDP. The Chemicals industry is one of the largest and most diverse manufacturing industries in the UK. It is a vital trade supply chain to UK manufacturing from Aerospace to Pharmaceuticals, as well as retail manufacturing from Food & Drink to Personal Care. Productivity in the Chemicals industry has increased by 69% since 1999-2009 [Cogent, 2013]. This industry is comprised of commodity chemicals, speciality/fine chemicals and consumer products, and directly employs over 140,000 people in high value jobs and indirectly supports around three times as many.
Large scale
manufacturing locations often have clusters of manufacturing units. In the UK,
there are four main locations for commodity chemical manufacture, including Teesside
as part of the Northeast of England Process Industry Cluster (NEPIC). Some 50%
of the UK’s petrochemical and commodity chemicals are produced by the NEPIC
industry cluster companies on Teesside. Perry Process Equipment is a member of
NEPIC and works with chemical manufacturers within this group.
In a new
strategy for the chemical sector, Vince Cable, Business Secretary and Michael
Fallon, Business Minister met chemical industry business leaders last week to
drive forward plans to grow the industry by 50% by 2030.
The Business
Secretary said:
“The chemical industry in the UK is already a leading exporter but there
are considerable future growth opportunities if we can create the right
conditions. Key to this is a strengthening of our supply chains so chemical
technologies and products are sourced in this country rather than overseas. By
working together with business on a long-term vision, we can build confidence
to invest, grow and create British jobs in one of our most important sectors.”
Amongst the
companies who Vince Cable met with, was the chemical processing company Thomas
Swan who will lead on supply chain development work. Since the late 90s, Perry
Process Equipment Ltd has frequently supplied Thomas Swan with process
equipment to their manufacturing site. By sourcing equipment from Perry
Process, Thomas Swan has made significant savings. They have also recycled
their surplus equipment by selling it to Perry Process Equipment Ltd to be refurbished
and reused within the industry.
Perry Process Equipment Ltd has been working with chemical companies around the
globe, for over eighty years, to provide quality machinery at a fraction of the
cost compared to new. By buying used machinery, these companies have reduced
waste, reduced usage of raw material and more importantly have reduced the
associated emissions generated in the manufacturing process. All of this has
improved their green credentials as well as saving them valuable time and
money.
With the
chemicals sector aiming for 50 % growth by 2030, Perry will continue to help
the current UK chemical manufacturing sites strengthen and grow.