In a recent survey, the leaders of chemical and pharmaceutical businesses from across the UK said that remaining in the EU is in the best interest of their businesses.

The survey carried out by the Chemical Industries Association (CIA) showed that 62% of companies voted to remain, with the remaining 38% declaring that their company had decided not to take a position. No business in the survey of CIA’s 93 member companies – representing approximately 70% of total UK chemical and pharmaceutical sales - said that leaving the EU would be in the best interests of their business.  

Reflecting on these results, CIA Chief Executive Steve Elliott said, “The UK chemical industry respects that, first and foremost, the EU referendum is a matter for government and individual citizens.  The issue needs to be considered with great care and respect for the facts.  For an internationally-exposed industry such as chemicals, the free movement of goods, services, capital and people as well as proportionate regulation are critical success factors in terms of global competitiveness. Irrespective of the outcome of the 23 June referendum, these success factors remain constant. The feedback from our survey does, though, underline the criticality of the European Union market place for UK chemical and pharmaceutical jobs, investment and growth.  Half a million people across the country depend on our sector for employment and we are also UK manufacturing’s largest net export earner – impressive credentials that would be brought into immediate question if we withdrew from the European Union”

Senior figures from the sector have endorsed this message.

Richard John Carter, Managing Director, BASF UK & Ireland, said “There is a high degree of uncertainty attached to Brexit. We don't and cannot know the terms that will be agreed but the political uncertainty will cause volatility in markets and add costs to trade and investment. It will create insecurity for our EU workers in the UK and UK workers in the EU. It will mean a huge amount of time and energy is taken up that could be better used such as completing the Single Market or improving international trade deals that create jobs and growth in Britain”.

Dr Tony W Bastock, OBE, Chairman of Contract Chemicals Ltd, said "The business success of many smaller chemicals companies in the UK is dependent on maintaining and growing their export penetration of EU markets.  My own company, as with many others has over 80% of its business in the EU, facilitated by free access into the single market and by competitive raw materials from that market.  Even the threat of Brexit has caused our customers to question placing future business with us; a full exit would certainly destabilise and damage our future growth and the jobs and innovation we support.  To sustain and grow our business, we must remain part of the largest chemical economy in the World"

Melvin Dawes, Managing Director Solvay UK, said "The European market is fundamental to our UK operations, we buy and sell products across Europe on a daily basis. We believe that the best way to secure future employment, investment and growth in our industry is for the UK to remain a member of the European Union”. 

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For further information please call Simon Marsh 07951 389197

Notes

The chemical and pharmaceutical industry adds £15 billion of value to the UK economy every year from total annual turnover of around £50 billion. This represents around 10% of the value added by the whole of manufacturing.

The UK is a leading global chemical and pharmaceutical producer

The chemical and pharmaceutical sector is the UK’s largest manufacturing exporter with annual exports of close to £50 billion.

UK Chemical manufacturing productivity, as measured by output per hour worked, increased by 10% between 2008 and 2014, in contrast productivity increased by 2.5% in UK services sectors and increased by 5% for the whole of manufacturing in the same period.

Nearly £5 billion is spent on R&D activities in UK chemical and pharmaceutical businesses with the vast bulk of funding coming from the companies themselves.

This represents over one third of the R&D spending in UK manufacturing businesses.

Over £4 billion of capital and R&D investment by UK chemical and pharmaceutical companies.

The sector employs around 140,000 people directly and supports in total around half a million jobs in the UK economy. The direct workforce is highly skilled and earns on average 30% more than the average UK manufacturing worker.