Right chemistry for new jobs
Mar 4 2009 by Peter McCusker, The Journal
Dr Stan Higgins, chief executive of Nepic, the North East Process Industries Cluster, said: “There are more people working in the sector than there was this time last year and billions of pounds is still being spent on infrastructure investment.
“Sabic is bringing its new plant onstream shortly and the Ensus plant will open later this year.
“Without a doubt, some of the firms that rely on making products for the motor and construction sectors are finding it more difficult, but what we are finding is that many of the companies are taking this opportunity to restructure their businesses to make themselves better placed for the upturn.”
The process industry is the region’s biggest exporter and the chemical industry generates more than 30% of the North East’s industrial output at over £10bn. About 34,000 people are employed directly and 280,000 more indirectly across the region.
The North East’s process industry companies say they need a further 16,000 workers over the coming 12 years with 8,000 people needed to replace the workers who leave the industry and a further 8,000 to help businesses grow and develop and Dr Higgins says there is no change to these bullish forecasts.
Skilled workers are going to be needed when Sonhoe completes its £2bn investment in a new crude oil refinery on Teesside.
And there is a further need for skilled staff to operate the region’s growing biofuel operations. The Ensus bioethanol facility will produce 800m litres of biodiesel and 800m litres of bioethanol a year providing work for 100 people. When complete this will add to Teesside’s eight existing biofuel complexes and there are more companies circling the region looking to plug into the developing sector.
These developments look likely to secure the future of the growing industry in the North East, with half the country’s production expected to be in the region by 2015, employing more than 5,000 people.
Further growth is expected in the coming years in the North East’s pharmaceuticals, speciality chemicals and biotechnology companies with a new trend in the way many of these companies are run expected to benefit the region.
Earlier this year, nebusiness.co.uk reported how Fine Organics of Billingham was bought by its management from German chemical giant Evonik Degussa.
This follows the 2004 buy-out from German chemical giant BASF by the management team of Aesica Pharmaceuticals of Cramlington.
Avecia, of Billingham, has grown considerably since it was spun out of chemical company AstraZeneca six years ago. It is currently working with scientists at Durham University to develop new stem cell technology to be used in wound healing.
It has around 500 staff on Teesside and its reputation for ground-breaking work has attracted workers from 16 countries to the site.
Fine Organics’ new managing director, Keith Hanson, led the buyout and says the plant hopes to raise turnover from £25m to £40m in five years.
Dr Higgins said: “Many of these big companies bought smaller companies but did not know how to manage them. They do not have the flexibility to respond to changing market conditions.
“Many of the speciality chemical companies are much better being run by local management teams able to adapt quickly to changing consumer tastes.”
