In Crisis? High Energy Prices Jeopardize UK Chemical Industry

The UK’s chemical industry has been described as being in a crisis by industry leaders across the sector. Primary concerns are weakening demand, labor costs, and most of all, sky-high energy prices. A recent survey by the Chemical Industries Association (CIA), the UK’s national association for chemical and pharmaceutical manufacturers, showed that 60% of chemical businesses reported falling sales while 20% reported no growth. It also found that in 2024, the UK chemical output reached its lowest level in more than a decade.

Steve Elliott has been at the CIA since 1997 and has served as the CEO for nearly 20 years, following 15 years at the Department of Trade and Industry. He is actively involved in various organizations, including the Control of Major Accident Hazards Strategic Forum and Building a Safer Future Ltd. Additionally, he sits on the board of the Institute for Employment Studies (IES), an employee relations think-tank; is a trustee of the chemical industry’s training body, CogentSkills; and chairs the European Chemical Industry Council (CEFIC) Communications Network.

3E’s Industry Reporter Sheridan Wood sat down with Elliott to discuss concerns facing the UK’s chemical industry and the policy potentials that could contribute to its rebound.