Released on = April 16, 2007, 5:07 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = The chemical industry is the largest manufacturing sector in
the UK, which is in turn among the top ten chemical-producing nations in the world.
UK manufacturers\' total sales of chemicals and chemical products increased by an
estimated 12.6% between 2001 and 2005, to £55.

Press Release Body =
Chemical Industry: Market Report 2006
The chemical industry is the largest manufacturing sector in the UK, which is in
turn among the top ten chemical-producing nations in the world. UK manufacturers\'
total sales of chemicals and chemical products increased by an estimated 12.6%
between 2001 and 2005, to £55.1bn at manufacturers\' selling prices (msp). Growth
would have been even faster but for the impact of the global economic slowdown that
occurred in 2001 and 2002, together with the intense competition within the
industry, which has affected UK suppliers\' sales and held back price increases.

Although this report focuses on the UK, the chemical industry is a highly globalised
sector, which processes raw materials and supplies intermediates (semi-processed raw
materials) to other manufacturing industries in the UK and worldwide. Consequently,
the industry is strongly dependent upon the performance of the international economy
and on global prices for raw materials such as oil and other commodities. Indeed,
the chemical industry is vulnerable to slowdowns in the wider economy, because its
products are used in almost all manufacturing sectors, from electronics to
pharmaceuticals, and its output forms the basis for a host of everyday products.

The industry is dominated by international companies and has experienced a wave of
consolidation over the past 5 years. However, there are still many small companies
in the biotechnology sector and some of the largest companies have demerged their
life-sciences and agrochemical interests.

It is forecasted that UK manufacturers\' sales of chemicals and chemical products
will continue to increase at a healthy pace over the next 5 years. Growth is
expected to slow in 2007 and 2008 as the global economy slows and as extra capacity
comes onstream, depressing prices. However, global economic growth should begin to
accelerate again in 2009 and 2010.

Overall, the long-term outlook for the UK chemical industry appears positive,
although there are likely to be significant changes within the industry over the
next 5 years. UK production of relatively simple chemicals is likely to decline as
these activities continue to be transferred to lower-cost bases in the developing
world. However, the hi-tech, high-value-added end of the market, where the UK has a
significant competitive advantage, should continue to expand at a rapid rate. The
pharmaceutical industry, in particular, is likely to experience continued strong
growth.



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