The chemical industry

The chemical industry is at the heart of manufacturing. It converts animal, vegetable and mineral raw materials into a host of products for use by both industrial and household consumers. Light weight and durable plastic materials help fuel efficiency in transport; insulation materials save energy in buildings; paints protect and extend the life of metal and timber; soap, shampoos and detergents keep us clean; disinfectants and pharmaceuticals safeguard our health. Computers and telecommunications systems could not function without essential chemicals.

The UK industry grew up using locally occurring resources such as salt, coal, limestone, vegetable matter and animal fats. Today it is part of a global industry primarily using natural gas and oil fractions such as naphtha as its dominant raw materials. There is a keen awareness of the need to replace fossil resources with sustainable alternatives both as raw materials and for process energy. Turnover exceeds £57bn, and over 180,000 employees work for 3000 organisations, although only 160 employ more than 250 people – not all chemicals activity is large scale. The UK chemical industry represents around 12% of value added in manufacturing, equivalent to 1.5% of GDP. It is internationally competitive, as demonstrated by a regular surplus on overseas trade.