The UK's chemical industry, once a powerhouse and a source of national pride, is facing an unprecedented crisis. A recent revelation has brought this issue to the forefront, highlighting the potential end of an era.
The Salt Conundrum: A Symbol of Britain's Industrial Decline
Salt, an unassuming yet vital substance, has played a significant role in Britain's industrial history. For centuries, the country has relied on its abundant salt reserves, particularly the vast halite deposits beneath Cheshire, to support various industries. However, a recent announcement by Inovyn, a major salt producer, has sent shockwaves through the industry.
Inovyn, responsible for approximately 50% of Britain's salt production, has warned that without government intervention, its salt plant in Runcorn may shut down. This would mark the first time in modern history that the UK would become reliant on imported salt.
Tom Crotty, Group Director of Chemicals at INEOS, explains the challenges of importing salt, citing its corrosive nature and the impact on product pricing. He emphasizes that this could lead to higher costs for the UK food industry, making it less competitive.
A Deeper Crisis Unveiled
The potential loss of British "salt independence" is just the tip of the iceberg. The chemical sector, once a cornerstone of the UK's economy, is facing a profound crisis. Many groundbreaking advancements in industrial chemicals, from the invention of plastics to the refinement of key ingredients, took place within British borders.
The sector's importance extends beyond its economic impact; it is integral to national security. For instance, the production of food relies heavily on fertilizers, particularly nitrogen-based ones. These fertilizers are typically derived from natural gas, converted into ammonia using the Haber-Bosch process. The UK was a pioneer in this process, but sadly, the plant in Billingham, Teesside, run by CF Fertilisers, was closed in 2023.
Britain now relies on imported ammonia for its fertilizers, highlighting a critical gap in the country's ability to provide for its own needs.
A Series of Shutdowns
Sky News research reveals that over the past decade, 11 major chemical plants have been shut down, many of which produced essential "foundational" chemicals. These closures have often gone unnoticed, with little to no national reporting.
For example, Tata Chemicals Europe closed its soda ash plant in Lostock last year, after nearly 150 years of continuous manufacturing. This decision means Britain is no longer producing sodium carbonate, a critical chemical for glass and paper manufacturing, among other products.
The recent collapse in chemical sector output, down by 20% in the last three years, is unprecedented outside of wartime. It is largely attributed to the rise in UK industrial energy prices, making it more cost-effective to produce these chemicals elsewhere.
Sharon Todd, head of SCI, a charity focused on industrial chemistry, emphasizes the global growth of the market, contrasting it with the UK's decline. She states, "This is a $6 trillion market globally. It's huge, and the UK has declined in that space."
A Call for Action
The government has faced pressure to support the sector, and in December, it intervened with a grant to support INEOS's ethylene cracker at Grangemouth. This move, however, is seen as a temporary fix rather than a comprehensive solution.
The industry's challenges are multifaceted, with high energy costs, carbon taxes, and aging infrastructure all playing a part. Many of the country's chemical plants and infrastructure date back to the early 20th century, and their gradual shutdown has gone largely unnoticed.
Peter Huntsman, CEO of Huntsman International, an American firm with a presence in the UK, paints a bleak picture. He describes the closure of the ethylene cracker at Wilton as "terribly depressing."
"The raw materials are still here, the workers are still here,"
he says. "This site had an exceptional workforce, and now it's just a shell."
Huntsman emphasizes the global nature of the industry and the potential for the UK to regain its position with government support.
A Balancing Act
While the closure of these plants may contribute to the UK's net zero carbon emissions goal by 2050, it comes at a cost. Ed Miliband and the Department for Energy Security and Net Zero stand by the government's plan, but others warn of the consequences.
Sharon Todd urges a reevaluation of the net zero strategy, suggesting that without changes, more plants will close, leading to further deindustrialization. Steve Elliott, CEO of the Chemicals Industries Association, calls for urgent action on energy and carbon policy, emphasizing the need for funding to ensure the industry's survival and competitiveness.
The potential end of salt manufacturing in a key plant, leaving the UK dependent on imports, would undoubtedly mark a significant turning point. It symbolizes the final blow to an industry that was once a source of national pride and economic strength.
