UK Chemical Industry Aims for 2030

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. 

If the Ineos, Grangemouth site had closed, it would have decreased Scotland’s manufacturing industry by 8% and it would have indirectly affected 10,000 jobs. The refinery supplies 70% of the fuel used at filling stations throughout Scotland and also supplies fuel to the North of England and Northern Ireland, so petrol and diesel supplies, had it closed, would have had to have been sourced elsewhere.

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.