Industrial Cluster Best Practice Analysis

Scottish Enterprise commissioned Optimat to assess the structure, operations and strategy of chemical clusters across Europe that have demonstrated a transition towards sustainable chemical manufacture and integrated a number of different companies and other relevant organisations in value chains. These insights informed recommendations for the future development of the industrial cluster in Grangemouth.

An initial review identified 95 chemical clusters across Europe, which were assessed based on:

• Sector focus
• Size
• Development history
• Activities
• Key companies. 

From this, a long list of 47 clusters was refined to seven for in-depth analysis, focusing on investment strategies, net zero activities, and government or research collaborations. 

Key stakeholders from these clusters, as well as companies and organisations relevant to Grangemouth, were consulted through interviews, with findings combined with desk research to produce a comparative analysis of best practices.

The analysis of other clusters highlights that their transition to sustainability is a long-term process, supported by well-resourced central organisations that manage, network, and assist companies in securing finance and permits.

Successful clusters extend infrastructure beyond utilities to include R&D, analytical support, and technical training, often anchored by key companies that foster value chain development. Public sector backing is evident, but it is the cluster management organisations, in collaboration with government and tenant companies, that drive growth.

While investment is important, its strategic use in integration and development is more critical than sheer funding size.

Grangemouth differs significantly in scale and maturity, requiring substantial investment and time to reach a similar level, but key stakeholders remain optimistic about its potential with the right structure and support.

1. Establish a cluster management organisation, comprised of individuals with industry and business expertise. This needs to be independent of any organisation onsite but have the capability to work with each one. It cannot be a public agency. It should also engage effectively with public sector organisations (e.g. government, planning, regulation, etc.) on behalf of cluster companies. 
   
   
2. Develop a clear vision, strategy and action plan for the future development of the Grangemouth cluster, that has buy-in from all organisations. This must be industry led and supported by the public sector as appropriate. Further, it will need to take a long-term outlook to address the current issues within the cluster and to align with expected future developments. 
   
   
3. There should be an overt strategic focus on sustainable chemical manufacture. Potential opportunities include sustainable chemical manufacture using hydrogen, captured carbon and waste biomass (e.g., food and drink industry, municipal waste) as feedstocks.
   
   
4. Set out a timeframe for achieving different stages of the strategy and which organisations will be involved in ensuring their delivery. 
   
   
5. Prioritise establishment of shared infrastructure / utilities as the first step in cluster development. This will address current issues (e.g. waste treatment, which has been identified as critical, especially for the Earls Gate site) and establish a common purpose/focus for cluster companies. Further, the shared infrastructure should offer zero carbon services to encourage net zero operations in companies. It is assumed that this will require both private and public sector investment. 
   
   
6. Focus on supporting existing initiatives and partnerships, rather than taking a blanket approach. For example, the green hydrogen capability being developed by RWE. Consideration needs to be given as to how other supply and value chain actors could be brought into these, including those already onsite.
    
7. Expedite the construction of the Sustainable Manufacturing Campus, including the Forth Valley College training centre. This needs to be followed by pilot projects with those companies already onsite, that make use of the new capabilities. These can be used to promote cluster capabilities and attract inward investment.
   
   
8. Develop marketing and communications collateral for Grangemouth that highlights positive features, describes its future net zero profile and supports inward investment activities.