Energy is the biggest concern for UK chemicals makers
9 May 2012
London - The continuing high cost of energy in the UK is a major barrier to future jobs and growth, manufacturers in the chemical and pharmaceuticals industries believe.
According to the Chemical Industries Association (CIA), all of its member companies across the UK have placed energy costs right at the top of their concerns. The CIA issued the findings as part of its efforts to persuade the UK government to manufacturing at its heart an industrial strategy.
“I know people in government want to have this strategy but for some reason there is a fear about publishing it,” said CIA chief executive Steve Elliott. “I say let’s be brave, proud of our manufacturing and send a signal to investors across the world that we have a strategy to support manufacturers. Energy costs are clearly a key part of this.
Pointing out that the UK potentially has extensive shale gas reserves, Elliot said: “We should look at this and other options from an environmental and social angle as well as an economic measure, to see if it can promote the UK as a place to do business. The benefits from exploiting such a resource have been amply demonstrated in the USA”.
According to the CIA, the chemical and pharmaceutical industry provides half a million jobs, contributes £70 million every day to the UK economy, invests £5 billion a year in R&D and is essential to the transition to a low carbon economy.
“With almost 80% of our companies foreign headquartered I want to make sure we tackle the cost of energy in our country and I want a strategy that brings everything together so investors, government and our workforce know where they stand,” said Elliott.
