An industry that touches all our lives

Jan 29 2008 by Sarah Judd, Evening Gazette

EVERY aspect of our daily lives are affected by the process industry.

We rely on it to power our cars, grow our food, wash and clothe ourselves.

What links this amazingly diverse range of companies is a reliance on science, which is why, given the UK’s abysmal results in the science education league, it is desperate to shore up skills.

The process industry’s success is built on the chemistry, physics, bioscience, mathematics and engineering disciplines that enable it to handle and control basic raw materials, such as oil, natural gas, air, water, minerals, recycled materials and crops, ultimately converting them into useful products.

“The products from these processes would be essentials, such as fuels, energy, plastics, metals, glass, pharmaceuticals and specialities,” said Stan Higgins, chief executive of the North East Process Industry Cluster (NEPIC).

Specialities is a generic term for products such as lubricants (motor oil), coatings (paint), surfactants (soap), adhesives (glue), crop protection (pesticides), fertilizers, food additives (flavourings), anti-oxidants (preservatives), cosmetics (hair dye), colours and pigments (fashionable dyes), glass, construction materials (cement), and polymers (clothes, windows, doors and carpets).

“There, is in, fact no area of modern life that this sector does not play a part in,” said Stan.

It is little surprise then that the sector contributes £23bn to the UK’s GDP, of which the 350 companies NEPIC represents contribute one third (£8bn).

What is more, Teesside contributes 20% of the £70bn sales generated by the chemical process industry - the UK economy’s only net manufacturing export sector according to Government statistics.

No other sector in the economy sells more outside the UK than we buy back in imports. Of the chemical process industry’s £70bn in sales, £37.3bn is exported.

And with £7bn of investment currently being ploughed into the sector on Teesside - and more likely to follow on the back of the National Skills Academy announcement - it is surprising it is often perceived as a sunset industry.

Ann Barnes, regional press officer for the Learning and Skills Council (LSC), said: “The process sector has never stopped being a major employer in the Tees Valley.

“The sector provides high quality employment and tremendous opportunities for young people.

“It is not a sunset industry and it is predicted there will be significant growth in the next few years.”

The LSC is a member of NEPIC’s skills and education team and provides funding for colleges and training providers, some of whom will become part of the skills academy.

Nationally, the LSC will provide funding and manage the progress of the skills academy.

Wilton’s owners Sembcorp Utilities UK, whose £60m wood-burning biomass power station began its annual production of about 30 MW of electricity late last year, also believes while ICI has gone, its track record of successful operation and growth will benefit the industry on Teesside.

The company has commited investments of £110m at Wilton since buying the site in 2003.

The sector’s value, to the North-east is clear according to NEPIC.

“Across the whole population, the value created for each person living in the region is £14,000,” said Stan.

“If we just do the calculation based on the working population, it becomes £35,000 generated by those in work. In the process sector each person employed generates £74,000, making it the most important industrial income to the region.”

And bringing the National Skills Academy for the Process Industries to Teesside could make it worth even more in years to come.

“The National Skills Academy will undoubtedly raise our profile nationally as a place of excellence for the sector,” said Stan.

See page two to find out about the Centre for Process Innovation (CPI) at Wilton.