(Image: Supplied)
A North East industry leader has joined chemical sector bosses in calling on the Prime Minister to recognise chemicals as a foundational industry and set out a clear plan for its future.
Joanne Smith, CEO of NEPIC, is among those urging the Government to act, highlighting the importance of the chemical industry to the Tees Valley economy.
The sector supports thousands of skilled jobs across the region and plays a key role in the wider industrial supply chain.
In a joint letter to the Prime Minister, Ms Smith and other industry leaders outlined the sector’s contributions to economic growth, regional regeneration, and industrial resilience, while warning of the challenges it faces.
The letter points to high energy costs, complex regulations, site closures, and job losses as major threats to chemical manufacturing in the UK.
Since 2021, the sector has seen a sharp decline in output, with 26 site closures and more than 8,000 jobs lost.
Industry leaders warn that without Government intervention, the UK risks further erosion of industrial capacity, skilled employment, and investment to overseas competitors.
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The industry leaders are calling on the Government to work with the sector on six priorities:
Deliver internationally competitive industrial energy prices
Ensure a pathway to net zero that encourages investment and supports industrial growth
Reform UK REACH and reduce unnecessary regulatory duplication
Expand apprenticeships, strengthen technical education and support re-training
Support investment in new, innovative technologies and products
Ensure a joined-up and long-term approach across Government and the sector
The letter also stresses that chemicals are critical to at least five of the eight growth sectors identified in the Government’s Industrial Strategy: Advanced Manufacturing, Clean Energy, Defence, Digital Technologies and Life Sciences, making the health of the sector important both to established industrial areas such as Teesside and to the UK’s wider growth ambitions.
Nationally, the chemical sciences contribute more than £60 billion in economic activity annually, while the sector’s supply chains contribute £220 billion in GVA and support 2.6 million jobs.