Bulk of UK investment in basic chemicals, says CIA
15 Jan 2000
The chemical industry in the UK is widely perceived as shifting from basic chemicals to higher-value specialities but according to the latest investment intentions survey from the Chemical Industries Association, 51 per cent of projected investments for the next two years will be in basic or petrochemical projects.
The next largest proportion of the spending, 23 per cent, was earmarked for specialities, with pharmaceuticals following on 21 per cent. 'People say that the future lies with the more expensive molecules,' comments CIApresident Elliot Finer, 'but there will be a continuing high demand for basic chemicals in this country and in Europe. They've got to come from somewhere.'
Spending is expected to decline by 3.1 per cent in 1998-2000. However, capital investments in 1997 were at their highest level since 1991, at £2.7billion; this represented an 18 per cent rise over the previous year. This reflects the 'improved output and performance in 1995 and 1996,' says the CIA.
The largest proportion of the spending 32 per cent is expected to be for expansions to existing plants, with new projects and debottlenecking each accounting for 14 per cent.
* The CIA has launched a national advisory service 'to facilitate investment in the UK chemical industry'. The Investment Help-Desk, run by Neil Harvey, can be reached on 0171-824 3399.
