The Formula for Success. A strategic plan for the Chemical Sciences in Scotland

NEW CSS brochure 19/10/07 15:46 Page 2 The Formula for Success A strategic plan for the Chemical Sciences in Scotland NEW CSS brochure 19/10/07...
Author: Russell Cook
6 downloads 0 Views 2MB Size
NEW CSS brochure

19/10/07

15:46

Page 2

The Formula for Success A strategic plan for the Chemical Sciences in Scotland

NEW CSS brochure

19/10/07

15:46

Page 3

NEW CSS brochure

22/10/07

11:08

Page 1

Contents Acknowledgements

2

Ministerial Foreword

3

1. Foreword

4

2. Background: The Global Chemicals Industry

6

3. The UK Chemicals Industry

8

4. The Scottish Chemicals Industry & Scotland’s

Chemical Sciences Sector

10

4.1.

12

Basic Chemicals

4.2. Speciality Chemicals

12

4.3. Pharmaceutical/Fine Chemicals

13

5. History of “Intervention” in the UK and Scottish

Chemical Industry

14

6. Strategic Plan

16

6.1.

18

Sustainability

6.2. Innovation

18

6.3. Skills

18

6.4. Reputation

19

6.5. Investment

19

7. Operating Structure

20

Appendices

22

Appendix A: The Scope of the Sector Covered by this Plan

23

Appendix B: Examples of Chemical Companies in Scotland

24

NEW CSS brochure

22/10/07

11:08

Page 2

Acknowledgements

Acknowledgements The support of Scottish Enterprise and, in particular, its Chemical Sciences Team has

been critical to our progress and we welcome their ongoing commitment.

We are also grateful for the support and involvement of a wide range of

government agencies, trade associations and professional organisations, including

the Scottish Government, the Scottish Environment Protection Agency (SEPA), the

Chemical Industry Association (CIA), the BioIndustry Association (BIA), Chemistry

Innovation (the chemical industry’s Knowledge Transfer Network), the Royal Society

of Chemistry (RSC), the Institution of Chemical Engineers (IChemE), Cogent (the

Sector Skills Council for the chemicals industry), Careers Scotland, the Scottish

Qualifications Authority (SQA), the Health and Safety Executive (HSE), the Intellectual

Assets Centre (IAC), Interface, ScotCHEM, the Scottish Manufacturing Advisory

Service (SMAS) ….to name just a few!

We look forward to a continuing partnership with these organisations – and others ­

to deliver our objective.

Page 6

Image courtesy of Kemfine UK Ltd.

Page 8

Image courtesy of NiTech Solutions Ltd.

Page 10 Image courtesy of NiTech Solutions Ltd.

Page 12 Image courtesy of INEOS Manufacturing Scotland Ltd.

Page 14 Image courtesy of INEOS Manufacturing Scotland Ltd.

Page 16 Image courtesy of FUJIFILM Imaging Colorants.

Page 19 Image courtesy of INEOS Manufacturing Scotland Ltd.

Page 20 Image courtesy of Kemfine UK Ltd.

Page 22 Image courtesy of NiTech Solutions Ltd.

2

The Formula for Success

NEW CSS brochure

22/10/07

11:08

Page 3

Ministerial Foreword

The Scottish chemicals industry operates in a fiercely competitive global economy, and with constantly emerging market opportunities and challenges. I welcome the determination of this vibrant sector to come together to form a self-defining cluster through the Chemicals Sciences Scotland initiative to share ideas, aspirations and solutions. That shared vision, shared ambition and shared sense of purpose is immensely valuable and vital to help chemicals companies in Scotland to continually adapt and compete, to build on the considerable skills, expertise and strong academic base in Scotland and to lead the way in enhancing industry capabilities in production and innovation. The Scottish Government is determined to create the right environment for Scotland to flourish and for business to prosper. We will work with Chemical Sciences Scotland to foster the sustainable development and growth of this important sector – and throughout Scotland. I applaud the close industry collaboration, with input from academia and regulators, that has resulted in this first ever chemicals industry strategy for Scotland. I look forward to the industry working in continued partnership with the public sector and other organisations on the actions that deliver its key strategic aims in the next few years and beyond.

Jim Mather MSP Minister for Enterprise Energy and Tourism

The Formula for Success

3

NEW CSS brochure

22/10/07

11:08

Page 4

1. Foreword

NEW CSS brochure

22/10/07

11:08

Page 5

1. Foreword

Many of Scotland’s industries, including life sciences, electronics, chemicals, food and drink and energy, have the Chemical Sciences at their core. These industries are dependent on innovative chemistry to create new products and new market opportunities and they could not exist without this underpinning science. Its contribution to Scotland’s economic past, present and future is immense. The chemicals industry is one of Scotland’s top export earners, generating around £1.3bn1 of manufacturing exports from a revenue stream worth almost £3.5bn. It is also one of our highest value industries, providing employment for almost 14,000 people directly and nearly 70,000 in total through dependent services. Wages and productivity in the chemicals industry are high; salaries average £27,500 per annum and Gross Value Added (GVA) per employee is £76,000, 44% higher than general manufacturing. The industry comprises more than 120 businesses, 85% of which are considered to be small or medium-sized enterprises. Scotland also has a thriving university research and university/college education sector based on the Chemical Sciences. It had several universities ranked at four or greater in the last Research Assessment Exercise (RAE) and is expected to fare even better in the current RAE round as a result of substantial expansion of its research activities through the research pooling initiative, ScotCHEM. Scotland has a track record for producing high-quality graduates and technicians skilled in the Chemical Sciences and it has “exported” these skilled people worldwide, creating a diaspora of Scottish-educated people throughout the global Chemical Sciences sector. Collectively, leaders from the chemicals industry, universities, colleges and various stakeholder organisations, supported by Scottish Enterprise (SE), government and its agencies have now come together as “Chemical Sciences Scotland” and developed this sector-led initiative whose stated objective is “to ensure that a vibrant and competitive chemicals industry exists in Scotland in 20 years time.” This objective will be achieved by implementing the strategic plan described in the following pages. It has 10 strategies grouped under 5 topics – Sustainability, Innovation, Skills, Reputation and Investment – and the future of the Chemical Sciences in Scotland will be determined by its success.

1

Dr Sandy Dobbie

Caroline Strain

Chairman Chemical Sciences Scotland

Head of Chemical Sciences Team Scottish Enterprise

Source: Scottish Government.

The Formula for Success

5

NEW CSS brochure

22/10/07

11:09

Page 6

2. Background: The Global Chemicals Industry

NEW CSS brochure

22/10/07

11:09

Page 7

2. Background: The Global Chemicals Industry

The chemicals industry generates revenues of $2,100billion2 and can rightly be said to be the basis of modern life. Without it, other industries – including electronics, healthcare, aerospace and automotive – would not exist.

Despite the intense focus on developments in China and India over recent years, the mature markets of Western Europe, North America and Japan still account for almost two thirds3 of global demand. The growth rates in the developing markets of Asia, Eastern Europe and South America are substantially higher than in these mature markets, but the developing markets still have a long way to go to reach the absolute size of their more mature counterparts.

The classification of this industry into market segments is not standard even within the industry. For this plan, three segments are used:

The past decade has seen a marked change in trade flows between the major chemical producing regions. Japan has been a net importer of chemicals for many years but the rise of Asian producers has reversed the US chemicals trade balance. In 1995, the US had a $20bn trade surplus in chemicals but, by 2005, this had become a $9bn deficit. In contrast, the EU has more than doubled its trade surplus over this same time to €38bn and this industry alone accounts for a quarter of the total EU trade surplus in all manufactured goods.

• Pharmaceutical/fine chemicals – products created as intermediate steps in the manufacture of active drugs, fragrances, pesticides and other high-value products.

Globally, the chemicals industry has been growing at an average of 3.3% over the past 10 years. The European Chemical Industry Council (CEFIC) expects the EU chemicals industry to grow during the short term at a more modest rate of 2.9%. The chemicals industry in the EU is the highest ranked industry in terms of “value added per employee”. It is almost double the average for EU manufacturing as a whole. The chemicals industry was one of the first to operate on a global scale but it still remains fragmented, with the top 25 chemical companies accounting for less than 30% of the market.

2 3

• Basic chemicals – products bought because of what they are: “building blocks”. • Speciality chemicals – products bought because of what they do: “performers”.

The meaning of the term “the chemical industry” is often misunderstood. People outside the industry often equate it to only the basic chemicals segment - the “smokestack” industry that many laymen and media assume the term to mean. The recent past has seen unprecedented mergers and acquisition (M&A) activity in chemicals, driven by the relocation of customer industries (e.g. textiles and electronics) to Asia, by changes in the investment preferences of institutional owners (from “diversified portfolio” to “focused”) and by the continual search for innovation, for the “next big thing”. The resulting changes in ownership have transformed the corporate landscape. In only 15 years, 50% of the world’s top 25 chemical companies have disappeared, (e.g. Hoechst and Sandoz). Others have been completely regrouped (e.g. Ciba and Rhodia) with some portfolios changed so radically that their only link to the past is an historic name (e.g. ICI). At the same time, new entrants have appeared (e.g. INEOS).

During this period of structural change, new ideas have come and gone. The first “Life Sciences” company was created when Zeneca was spun out of ICI. It consisted of ICI’s pharmaceutical, speciality chemicals and agrochemicals businesses and was soon followed by others, including Monsanto, Novartis and Aventis. But this model didn’t last and was dismantled by investors looking for more focus, creating separate pharmaceutical, speciality chemical and agrochemicals companies. A few years later, a predicted wave of outsourcing by pharmaceutical companies prompted a buying frenzy in fine and pharmaceutical chemicals. Unfortunately, the promise of an outsourcing feast was an illusion and the buyers eventually paid the price for it when they had to write off and, in some cases, sell or close these expensive purchases. While some of the industry realignments are largely complete, others are not. The exit of western oil majors from chemicals and the growing ambitions of Asian companies to acquire western technology and market access are still at an early stage, and the restructuring of fine and pharmaceutical chemicals still has some way to go. Consequently, portfolio reshaping in the wake of the recent M&A boom is far from complete and high rates of M&A will continue for some time. This ownership revolution presents both opportunities and challenges for the Scottish chemicals industry, which must anticipate and pro-actively embrace the changes that will ensue. The role of government agencies will be critical during this time as economic and political support will be needed to help the industry benefit from the changing landscape, so that it retains and increases its value to the Scottish economy.

Source: CEFIC (European Chemical Industry Council). Source: David Ingles Consulting/Cogency.

The Formula for Success

7

NEW CSS brochure

22/10/07

11:09

Page 8

3. The UK Chemicals Industry

NEW CSS brochure

22/10/07

11:09

Page 9

3. The UK Chemicals Industry

The UK Chemicals industry is the sixth largest4 in the world and it is the country’s top export earner... but its ownership has changed dramatically in recent years and much of it is now owned by companies and shareholders based in other countries. As the most open environment for M&A activity in Europe, the UK has been a major player in the recent round of industry realignment (mainly on the “sell” side) and its quoted chemical sector has reduced substantially. There are now only two UK chemical companies in the FTSE100. ICI, regarded as the bellwether of the UK stock market until the early 1990s, is likely to disappear shortly when Akzo Nobel buys it. Only one other – Johnson Matthey – will be left but it too, is seen as an acquisition target for US-based and European competitors. Almost 30 chemical companies have disappeared from the UK stock market. Most were acquired by other European chemical businesses e.g. Allied Colloids (bought by Ciba in 1998), Courtaulds (Akzo 1998), Laporte (Degussa 2001), BTP (Clariant 2000), Albright and Wilson (Rhodia 1999), Brent (Chemetall 1999) and BOC (Linde, 2006). US-based firms bought some others, for example Canning (MacDermid 1998) and Ascot (Dow 2001), while a few were taken private, such as British Vita (Texas Pacific Group 2005) and Brunner Mond (CVC 1998). In some respects, these ownership changes have had little effect on the day-to-day operation of the businesses. However, in more strategic terms – notably resource allocation, investment allocation and culture – the effect has been profound. Many of these formerly UK-headquartered

4 5

businesses, which already had a global footprint and culture, have become more like local “branch operations” with limited autonomy and authority. Despite this loss of independence through M&A, the UK industry is still one of the largest in the world. Importantly, it has a much higher proportion (60%) of its output in the speciality sector than the USA (44%) or Europe’s leader, Germany (40%). As virtually all current (and future) investment in basic chemicals is in locations with feedstock advantages (Middle East) or fast growing markets (Asia), the UK’s already high emphasis on speciality chemicals will provide a degree of protection as pressures increase further on western producers of basic chemicals. The chemicals industry is also one of the best-performing industries in the UK in terms of growth, exports and value added. Over the past decade, it has grown at an average rate of 2.9%, substantially higher than the average for UK industry overall. Currently, the UK chemical industry employs 214,000 people in high-skilled, high-wage jobs. It generates £34bn in revenue5 from chemical sales and is the country’s top export earner. It contributes a £4.5bn trade surplus to the national economy and accounts for 11% of the manufacturing sector’s gross value added.

Source: DTI - Chemicals Innovation and Growth Team; DTI is now the Department for Business, Enterprise and Regulatory Reform (BERR). Source: Chemical Industries Association.

The Formula for Success

9

NEW CSS brochure

22/10/07

11:09

Page 10

4. The Scottish Chemicals Industry and Scotland’s Chemical Sciences Sector

NEW CSS brochure

22/10/07

11:09

Page 11

4. The Scottish Chemicals Industry and Scotland’s Chemical Sciences Sector

Scotland’s contribution to the UK industry is slightly ahead of its population ratio, amounting to almost 10% (£3.5bn6) of the UK output. It is one of Scotland’s biggest export earners, responsible for 12% (£1.3bn7) of manufacturing exports. It is also one of our highest value industries, employing almost 14,000 skilled staff, many of them graduates, and an estimated total of 70,000 jobs are directly dependent upon it. Compared to other strategically important industries, the chemicals sector has a low profile at national level, despite its relative size and contribution being much greater (in terms of both revenue generation and value added) than other sectors. There are several reasons for this low profile, including: • A popular misconception that the industry is in its ‘twilight years’ in Scotland and that it will disappear within the next 15 to 20 years. This is fundamentally flawed. • A lack of interdependence. Because the industry operates on a global/regional model, there are few supplier/customer relationships between Scottish companies in the sector. Consequently, there are fewer common interests between individual companies than is typically found in younger sectors like biotechnology. • Fragmentation/lack of a “single voice” – there are several trade associations representing specific segments of the industry, another consequence of its maturity and the exceptionally wide range of customer industries it serves. The basic, speciality and pharmaceutical/fine segments are all well represented in Scotland. There are over 120 chemical companies in the country, with significant concentrations in the Forth Valley, Ayrshire, Renfrewshire, Fife and Dumfries and Galloway areas.

6 7

Almost all of the larger players in the Scottish scene do not have their headquarters here and this is a key issue for the strategic development of the sector. In this context, it is important to engage not only with the local operating companies but also with their owners and “controllers” in (mainly) the EU and US. Scotland also has a thriving chemistry-based academic research and education sector and a very long, distinguished record of achievement in research in this field. The country has a wide range of universities and colleges involved in both chemistry and chemical engineering and its further education colleges produce high-calibre technical staff and ongoing professional training for the existing chemicals business base. Unlike other parts of the UK, student intake numbers to university chemistry-based courses have been growing in recent years and many departments are oversubscribed. The recent development of research pooling within the academic sector – exemplified by the creation of EastChem, WestChem and, most importantly, ScotCHEM – has given a very welcome boost to the academic research sector in Scotland. The country already has several institutions with high RAE ratings and it is expected that the collaborative research initiatives above will increase these ratings even more in the current RAE round. The chemical industry in Scotland can be segmented into production of three categories of product as shown in the forthcoming pages.

Source: Scottish Government. Source: Scottish Government.

The Formula for Success

11

NEW CSS brochure

22/10/07

11:09

Page 12

4. The Scottish Chemicals Industry and Scotland’s Chemical Sciences Sector

4.1. Basic Chemicals

4.2. Speciality Chemicals

These “building blocks”, mainly derived from

North Sea oil, are the starting point for

much of the chemical industry here. Basic

chemicals companies in Scotland tend to be

well-established organisations with global

parents based outside Scotland; they are

mainly manufacturing plants, part of their

parents’ global supply chain, with limited

local autonomy over marketing and business

development issues.

Speciality companies in Scotland tend to be either “Scottish-origin” businesses that have been taken over by foreign-owned enterprises or product-specific manufacturing sites set up by industry majors. They tend to be focused on market niches or on a special product class and many of them are small/medium size enterprises (SMEs).

The main driver for this segment is price.

To be globally competitive, these

capital-intensive businesses must be focused

on asset efficiency, productivity and quality.

This segment is very important to the

Scottish economy as it accounts for a large

part of the industry’s current contribution

(turnover and employment). It is subject to

competition from locations with feedstock

advantages (Middle East) or faster growing

markets (Asia).

12

The Formula for Success

Compared to other chemical businesses, they tend to have the highest degree of market and business development autonomy because of their specialisation. Their main driver is usually innovation in product, service or process, and they tend to have high levels of product and process development and stronger interactions with the academic base. This segment is critically important to the future of the Scottish chemicals sector because it operates at the high end of the value chain, it has higher margins, higher growth potential and, thanks to significant barriers to entry, it can provide better long-term security. However, it is also subject to being “squeezed” by the pricing power of its suppliers (basic chemicals and energy companies) and its customers, often large, consumer-facing, price-competitive industries such as the automotive, food, textiles and printing sectors.

NEW CSS brochure

22/10/07

11:09

Page 13

4. The Scottish Chemicals Industry and Scotland’s Chemical Sciences Sector

4.3. Pharmaceutical/Fine Chemicals The characteristics of this segment in Scotland are similar to those described for speciality businesses except that, for the larger companies, local autonomy tends to be lower (most are production sites within a global supply chain) and their main drivers tend to be operating efficiency and cost, as scope for product innovation is limited by the need to conform to highly regulated specifications. There are also many SMEs in this segment, mainly local companies focused on early stage developments and new therapies. University spinouts tend to target this segment. Levels of Research and Development (R&D) and interactions with universities vary considerably depending on the nature of the company (production site or complete business). This segment is also very important to the future of the Scottish chemicals industry and will be developed in collaboration with the life sciences cluster, with which it has strong ties. Development timescales are long and often hit-or-miss but, when success occurs, barriers to entry are high and long-term security is good.

The Formula for Success

13

NEW CSS brochure

22/10/07

11:09

Page 14

5. History of “Intervention” in the UK and Scottish Chemical Industry

NEW CSS brochure

22/10/07

11:09

Page 15

5. History of “Intervention” in the UK and Scottish Chemical Industry

At UK level, the former DTI (now BERR) and the industry itself recognised a few years ago that it needed more support than it was then receiving. As a result, the UK Chemicals Innovation and Growth Team (CIGT) was set up to investigate and recommend appropriate action. It identified four key issues8 that “must be addressed now to ensure a vibrant and competitive UK chemicals industry in 15-20 years”. These key issues were: • Reputation – the industry’s licence to operate, ability to raise finance and attract the highest calibre people was linked to its perceived behaviour, and public perception was not good - with only 20% of the population regarding it favourably. Similarly, the City was disenchanted with its track record as an investment. • Sustainable development – the industry must deliver solutions that integrate the needs of the economy, society and the environment, not just minimise any negative impact of its products and processes. • Innovation – the industry had a long tradition of innovation but its performance had declined and it was under-investing in Research & Development by comparison with its peers. • Skills – the industry needed high-calibre people but its workforce was ageing and its attractiveness to young people had declined. Even before the CIGT was formed, some northern English regions had already prioritised the chemical sector and were providing strategic support for economic development through their Regional Development Agencies.

8

Compared to the progress already made in the English regions, a Scottish chemicals strategy was much less advanced. The industry was classified as an “important priority” in the Scottish Enterprise network clusters investigation in 1996 but it was not considered a national priority. Consequently, there was little intervention by Scottish Enterprise (SE), except in Forth Valley, where the local enterprise company was very active in the sector. Following a change in the business climate and a change in focus by the Chemical Industries Association, a new attempt to develop a chemical sciences strategy began in 2004. Since then, SE has been working with an engaged group of industry leaders, entrepreneurs and leading academics to develop a sector-led, Scottish initiative that will address the long-term opportunities and risks for the Scottish chemical sciences sector. This strategic plan for Chemical Sciences Scotland is the outcome of that process. The plan is based on the work done by this group of industry and academic leaders, the SE Chemical Sciences Team, key people from the support and regulatory arms of government and other agencies with an interest in the chemical sciences sector. The plan also aligns the Scottish strategy with the CIGT approach for the UK and with the regional initiatives already in place in the north of England.

Source: DTI (now BERR): Chemicals Innovation and Growth Team.

The Formula for Success

15

NEW CSS brochure

22/10/07

11:09

Page 16

6. Strategic Plan

NEW CSS brochure

22/10/07

11:09

Page 17

6. Strategic Plan

The objective of this plan is “to ensure that a vibrant and competitive chemicals industry exists in Scotland in 20 years time”. This overall objective encapsulates six detailed objectives that were developed by the group of industry leaders and others referred to earlier:

In the simplest terms, Scotland needs to: • Keep and improve what it already has in the chemical sciences sector.

• To achieve a balanced portfolio of chemical businesses in Scotland.

• Develop indigenous new chemical businesses much faster than it has done before.

• To sustain a critical mass of chemicals businesses in Scotland.

• Attract new chemical businesses and investment into Scotland.

• To explore and exploit opportunities between industry sectors.

Each strategy is deliberately broad. It will be the specific actions carried out in executing the strategy that will determine overall success. The chemical sciences sector will own and lead this plan but it will need strong support, financially and politically, from the Scottish Government and its agencies.

• To create competitive advantage through the ease of doing business in Scotland. • To attract and retain talent. • To improve the perception of the industry. The 10 key strategies that will be implemented to achieve the objective are outlined in the following pages. Their overall theme is that the Scottish chemical sciences sector must punch above its weight. It must create a marketable perception that it offers significant competitive advantage over other countries as a location for chemical sciences.

A sector-led team, supported by Scottish Enterprise, will direct the implementation of the plan. Operationally, it will be managed as five topics and, as many of the elements of the plan are interdependent, inter-group collaboration on implementation aspects will be essential. The five topics are Sustainability, Innovation, Skills, Reputation and Investment and each of the 10 key strategies has been allocated to one of these groups.

The Formula for Success

17

NEW CSS brochure

22/10/07

11:09

Page 18

6. Strategic Plan

6.1. Sustainability

6.2. Innovation

1. Ensure that unit cost of output is globally competitive, particularly in basic chemicals, by:

5. Increase the amount of applications and product Research and Development (R&D) conducted in Scotland by creating a competitive advantage for such activities and by building a perception that Scotland is an innovation-friendly location for future investment in R&D.

a. Improving process efficiency, resource and energy utilisation. b. Reducing waste generation. c. Optimising product quality and asset capacity. d. Encouraging adoption of programmes for manufacturing excellence, resource and energy efficiency, waste reduction and quality management [use the Scottish Manufacturing Advisory Service (SMAS), Process Industries Centre for Manufacturing Excellence (PICME), and the Centre for Process Innovation (CPI) to encourage best practice]. 2. Build greater interdependence between businesses to develop “cluster” benefits by: a. Publishing a Scottish Chemical Sciences Sector directory to let local businesses know what products and services are already available. b. Encouraging networking amongst Scottish-based chemicals businesses (including service providers) to increase opportunities for collaboration. 3. Develop a regulatory climate that is perceived by the global chemicals industry to be a competitive advantage for Scotland by: a. Ensuring that all operations meet international standards. b. Building a co-operative relationship between industry and statutory bodies by encouraging early involvement in new processes and technologies and by early identification of potential problems. c. Establishing a regulatory forum, involving industry and its statutory bodies. 4. Increase the proportion of speciality and pharmaceutical/fine chemicals in Scotland by: a. Prioritising intervention resources to stimulate the expansion of existing speciality and pharmaceutical/fine businesses and to attract new ones, particularly those offering high-value applications/services.

18

The Formula for Success

6. Increase innovation and the start-up rate in the Scottish chemicals sector by: a. Building stronger links between industry and universities. b. Making full use of the innovation and technology transfer

support available.

c. Participating in/adopting existing innovation initiatives by the North East Process Industries Cluster (NEPIC), Chemicals North West (CNW) and others. d. Full participation in Chemistry Innovation (chemicals industry knowledge transfer network). e. Collaborating with other sectors (life sciences, energy) and their Intermediary Technology Institutes (ITIs) to develop programmes and resources for innovation.

6.3. Skills 7. Develop the skills level of employees so that they are recognised as world-class by: a. Developing best in-class training and education programmes for chemical sector employees. This should be done in close collaboration with other chemicals initiatives (e.g. NEPIC, CNW, Humber Chemical Focus (HCF)), Cogent, SQA and the Scottish further and higher education facilities. 8. Increase the attractiveness of the chemicals industry as a career choice by: a. Developing a schools programme to promote the chemicals industry as a career for scientists and engineers. b. Improving the reputation of the chemicals sector (as

outlined in 6.4).

NEW CSS brochure

22/10/07

11:10

Page 19

6. Strategic Plan

6.4. Reputation

6.5. Investment

9. Improve public perception of the chemicals industry and its impact by:

10. Encourage new investments in chemicals that will:

a. Improving the physical environment at/around chemical sites and developing alternative uses for surplus/derelict land on or near to chemical sites9, particularly if interdependence between future users can be created, e.g. chemical science parks. b. Building links with influential stakeholders at Scottish and UK level, for example ministers, MSPs, MPs, MEPs, and encouraging individual businesses to build links at a local level. c. Collaborating with trade associations and other representative bodies to develop a single voice for the sector in Scotland.

a. Conserve and maintain the existing basic chemical manufacturing base by actively engaging SE/Scottish Development International (SDI) with appropriate Scottish-based companies, at local site and foreign HQ level, and by establishing international account teams and plans to raise the international profile of the Scottish sector. b. Expand the speciality and pharmaceutical/fine segments by developing, with SE/SDI, a compelling sales proposition that will appeal to global decision makers in these segments.

9 Much has already been achieved in this context but more has still to be done; this activity needs active engagement with neighbours, local authorities, SE, SEPA, Scottish Natural Heritage (SNH) and other agencies concerned with the environment. It is also important that this activity is publicised to achieve a positive effect on the public perception of the Scottish chemicals industry.

The Formula for Success

19

NEW CSS brochure

22/10/07

11:10

Page 20

7. Operating Structure

NEW CSS brochure

22/10/07

11:10

Page 21

7. Operating Structure

Five Topic Groups – Sustainability, Innovation, Skills, Reputation and Investment – have been established to drive the implementation of the plan. These groups comprise over 80 leaders from industry, academia and other stakeholder bodies. The Chairs of each group, together with a few other individuals, meet regularly, as the Chemical Sciences Scotland leadership team, which “owns”10 the overall plan and is responsible for establishing appropriate structures and mechanisms to ensure its implementation. Through this inclusive process, it is hoped to “spread the net”, and the burden, of action over a large number of senior executives from the chemical sciences sector, SE and support organisations. Topic Group members are business leaders and their equivalents from academia and support organisations. These leaders are people with the authority to commit their own time – and that of others in their organisation – to this initiative without having to seek authority elsewhere. Members of the groups are the leaders themselves, not their delegates.

It is important to recognise that people11 participating in this initiative do so in a personal capacity because of their commitment to its objective: It is also important to note that Chemical Sciences Scotland is not an alternative to trade associations or other representative bodies, whose purpose is to represent their members’ interests. It collaborates closely with such organisations but it will stay focused on its own long-term strategic objective and avoid becoming distracted by issues that are better dealt with by representative organisations.

The operating structure of Chemical Sciences Scotland:

Chemicals Leadership Team SE Chemical Sciences Team Sustainability

Innovation

Skills

Reputation

Investment

Specific actions for each part of the plan are decided by the Topic Groups. They have the authority to assign tasks and to commit resources within the overall scope of resources available to this initiative. The leadership team’s role is simply to co-ordinate their activities, to ensure a consistent approach, to avoid overlap or conflict and to monitor progress. The leader of each Topic Group is responsible for directing its activities and for reporting progress and/or issues to colleagues on the leadership team.

10 11

Except for officials from the Government, SEPA and other governmental agencies whose statutory responsibilities preclude them from “owning” the sector plan. Except for officials from the Government and its agencies who act in an advisory or monitoring capacity.

The Formula for Success

21

NEW CSS brochure

22/10/07

11:10

Page 22

Appendices

NEW CSS brochure

22/10/07

11:10

Page 23

Appendices

Appendix A: The Scope of the Sector Covered by this Plan The true scope of the chemical sciences sector is much broader

than is commonly perceived and many businesses that are based on

the chemical sciences are often designated as being in other sectors.

Examples include fuel production, some food ingredients,

consumer products, active pharmaceutical products and aspects

of biotechnology.

In the north east of England, the regional chemicals initiative, NEPIC,

addressed this by defining its scope as “process industries” rather

than the “chemical industry”. The term “process industries” covers all

chemical, pharmaceutical and biotechnology businesses operating in

the north east.

In Scotland, we have defined the boundaries of the chemical sciences

sector to exclude healthcare-focused biotechnology and the

production of pharmaceutical dosage forms. The application of

biotechnology to the processing and production of chemicals,

materials and energy12 is within the scope of this plan, as is the

manufacture of pharmaceutical intermediates.

The boundaries between these sectors are grey and the Chemical

Sciences Scotland leadership team will ensure that grey areas

become an opportunity for cross-sector collaboration in Scotland,

not an area to be fought over.

12

SusChem – the European Technology Platform for Sustainable Chemistry.

The Formula for Success

23

NEW CSS brochure

22/10/07

11:10

Page 24

Appendices

Appendix B: Examples of Chemical Companies in Scotland Some of the chemical companies active in Scotland are listed below:

Company

Parent

SE region

Company

Segment

Location

INEOS

Forth Valley

INEOS

UK

Basic

Exxon

Grampian

Exxon Mobil

USA

Basic

GE Plastics

Forth Valley

GE13

USA14

Basic

Syngenta

Forth Valley

Syngenta

Switzerland/UK

Fine

Macfarlan Smith

Lothians

Johnson Matthey

UK

Pharma/Fine

GlaxoSmithKline

Tayside & Ayrshire

GSK

UK/USA

Pharma

Kemfine UK

Forth Valley

Kemfine

Finland

Fine

Shasun

Dumfries

Shasun

India

Pharma/Fine

Ciba UK

Renfrewshire

Ciba SC

Switzerland

Speciality

ISP

Ayrshire

ISP

USA

Speciality

FUJIFILM Imaging Colorants Forth Valley

FUJIFILM

Japan/UK

Speciality

DSM

DSM

Holland

Pharma/Fine

Ayrshire

This table is not intended to be a complete list of all the companies operating in Scotland nor is it intended to imply that these are the major players; the examples have been chosen simply to illustrate the diversity of the industry in Scotland. They cover a wide range of products including basic chemicals, plastics, pharmaceuticals, pesticides and fungicides, pigments, food ingredients, textile printing chemicals, inkjet dyes and vitamins.

13 14

24

GE Plastics has been sold to SABIC for $11.6bn; the deal is expected to close in late 2007. SABIC is based in Saudi Arabia.

The Formula for Success

NEW CSS brochure

19/10/07

15:49

Page 25

NEW CSS brochure

19/10/07

15:46

Page 1

Suggest Documents