invest north east england

Chemicals and Process Industries

Overview

Chemicals and Process Industries

Areas of Expertise

• Base and Petrochemicals

  Many leading global names in the base chemical industry have bases in the North East, and 58% of the entire UK petrochemical industry is concentrated mainly in the Tees Valley area.

  The sub-sector employs more than 10,000 people. It has an extensive infrastructure of plants and storage facilities, and a sophisticated supply chain infrastructure.

  Some of the largest chemical processing companies in the world – Sabic, Dupont, Dow, Lucite International, Huntsman and Croda – have large operations at Wilton International, near Middlesbrough.

  Saudi Arabian company Sabic UK Petrochemicals, for example, has been investing hundreds of millions of pounds in the world’s largest low density polyethylene cracker plant. The material produced there will be used in packaging applications across UK and European markets.

  In addition to Wilton, there are major processing facilities elsewhere in Tees Valley at Billingham, North Tees and Seal Sands. Other key companies that have made big investments in new plant include Invista, Advansa and BOC.

  The base chemicals and petrochemicals industries contribute circa £3.5 billion annually to the North East economy. Among the huge range of products are polyester and polymer fibres produced for textile manufacturing, and chemicals supplied for use in the production of adhesives, coatings, inks, resins, lubricants and food additives.

  Important bulk industry activities include oil refining, and North Sea gas-liquid separation plants at Seal Sands.

• Fine and Speciality Chemicals

  More than 60 companies, with combined sales of over £2.8 billion a year, are involved in what is one of the North East’s most rapidly growing and vibrant industrial clusters.

  They produce a wide range of fine and speciality chemicals, including raw materials for use in the production of agrichemicals, food flavourings, fragrances, soaps, pigments and photographic film.

  The companies range from some of the largest international producers such as Evonik, BASF, Dupont and Elementis, to specialist firms like Frutarom which makes food flavourings and fragrances.

  Frutarom now owns one of the most innovative smaller companies in Tees Valley, Oxford Chemicals. This has important research and development strengths in the field of sulphur and synthetic materials.

  Another smaller business making an impact is Fine Organics, with an independent and expanding operation at Seal Sands in Tees Valley previously owned by German multinational Evonik. Evonik produces fine chemicals for use in the manufacture of cosmetics, agrichemicals and consumer products.

  At the leading edge of the sector is High Force Research, a locally grown company that began life on Durham University Science Park and which is now based in purpose-built laboratories at nearby Bowburn. In addition to its own specialist discoveries, it provides larger companies with R&D and chemical synthesis services.

• Pharmaceutical Manufacture

  A third of the entire UK pharmaceutical industry is based in North East England, with top global manufacturers operating their most important European factories in the area alongside a substantial network of suppliers.

  Among the leading companies is GlaxoSmithKline, the world’s second largest pharmaceutical maker, which has a 60-acre site at Barnard Castle, County Durham,  employing over 1,100 people.

  Merck Sharp & Dohme has a major factory at Cramlington, Northumberland, producing base compounds for use in drug production.

  Sanofi-Aventis has a key plant at Fawdon in Newcastle. This has been completely refurbished over recent years in a £100 million investment by the company. It produces more than 3.5 billion tablets and 70 million packs of medicines a year.

  With substantial research activities being conducted at Newcastle and Durham Universities, the North East is a magnet for early stage and expanding pharmaceutical companies

  The Specials Laboratory, for example, in Prudhoe, Northumberland, began life in premises at Newcastle University making bespoke medicines for hospitals and pharmacies throughout the UK. Within a decade it has become one of the fastest growing companies in the country, with a listing in the Sunday Times Fast Track 100.

  On the innovation front SSL International has one of its two global R&D centres at a purpose-built plant in Peterlee, County Durham.

  Indian company NPIL Pharmaceuticals UK has opened a major plant at Morpeth, Northumberland, specialising in advanced ingredients and formulations.

• Biotechnology

  The number of biotechnology companies in North East England has doubled over a three year period, as this emerging sector has become a major focal point for growth.

  There are strategic ambitions, now reaching an advanced stage, to make the North East one of the leading areas in the world for biotechnology R&D and manufacturing.

  The National Industrial Biotechnology Facility, with laboratories and pilot plant development capabilities, is part of CPI at Wilton International.

  Among the companies is Avecia Biologics, a highly innovative firm producing advanced medicines using bioprocessing techniques. It has invested in a £75 million state-of-the-art Advanced Biologics Centre at Billingham.

  At Consett, in County Durham, multinational bioprocessing manufacturer Millipore UK has developed a plant producing high value proteins.

  And Cambridge Research Biochemicals has a base in Billingham where it prepares peptides and antibodies which it supplies for clinical research purposes.

  Some of the most exciting biotechnological developments are taking place in the biofuels field. At Wilton International, Ensus has built a £300 million plant – Europe’s largest – producing bio-ethanol for use in ultra low sulphur motor fuels and also surplus electricity which is used by other nearby factories.

  A cutting edge second generation bio-ethanol and power plant, using biodegradable household and industrial waste, is now being built at Seal Sands by INEOS Bio. This will be the first facility of its kind in the world.

Chemicals and Process Industries

Key Facts & Figures

Chemicals and Process Industries

Supporting Organisations

Supporting Organisations