The chemicals sector and the Scottish economy

The chemical sciences sector in Scotland is designated by the Scottish Government as a ‘priority sector’ deemed of essential importance to the Scottish economy.

Chemical sciences are vital to the Scottish economy. Here are some key facts about the sector in Scotland:

• The chemicals industry is one of Scotland's top export earners generating around £3.5 billion of manufacturing exports from a revenue stream worth £9.3 billion. It has the second highest GVA per employee of any industry in Scotland (£181700).
• The chemicals sector accounts for 25% of Scottish manufacturing by turnover and 6% of Scottish manufacturing employment.
• Scotland contributes more to the UK chemicals industry than its population ratio. The Scottish chemicals industry accounts for 15% of the UK sector by turnover.
• One of Scotland’s highest value industries, employing 14,000 skilled staff, many of them graduates. Around 70,000 jobs in Scotland are directly dependent upon it
• There are approximately 150 chemical companies in Scotland, many of them SMEs. The world's leading chemical/pharma companies also have businesses located in Scotland, including INEOS, DSM, Ciba, GSK, Dupont, Organon, Syngenta and Rhom and Hass.
• The sector accounts for 50 per cent of all industrial R&D in Scotland (including Parma) – 1.1 per cent of turnover.
• Scotland’s highly-rated universities (in both chemical science and engineering disciplines) produce around 1,000 graduates per annum. Further education colleges also produce high-calibre technical staff and ongoing professional training for chemicals businesses.
• In Scotland there are 12 universities and six colleges which have research and teaching excellence in chemistry and engineering. The recent nationwide Research Assessment Exercise (RAE) recognised that four of the UK’s top 10 departments are in Scotland. The RAE gave EastCHEM collaboration between the universities of Edinburgh and St Andrews, the best power rating of any chemistry unit in Britain. WestCHEM, which brings together Glasgow and Strathclyde, was ranked eighth.

The chemicals sector in Scotland spans three main areas:

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  Basic chemicals
  These are the primary building blocks supplied to other chemical industries and include the production and supply of basic organics/inorganics, fertilisers, industrial gases, plastic, rubber and man-made fibres.
• Pharmaceuticals
  The pharmaceuticals industry has strong links with Scottish universities and courses such as the Drug Design course at Napier ensure that talented graduates enter the industry.
• Speciality chemicals
  Speciality chemicals include performance products and fine chemicals. Growth areas in this sector include specialist organics and inorganics, additives, pesticides, paints and dyes.