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Chemicals, Rubber and Plastics Chapter 5: chemicals, rubber and plastics Chemicals, rubber and plastics The chemicals, rubber and plastics Authorisation of CHemical substances) The manufacture of chemicals, rubber and manufacturing sector covers the manufacture system (1). This environmental and social policy plastics are covered by NACE Subsections DG of basic organic and inorganic chemicals, initiative aims to improve the protection of and DH; the first of these two subsections also pharmaceutical products and pesticides and human health and the environment through includes the manufacture of man-made fibres. rubber tyres and plastic tubes. the better and earlier identification of the properties of chemical substances. Following a NACE The main raw materials used within this long period of negotiation, the European 24: manufacture of chemicals and manufacturing sector include oils, minerals, Council reached a common position on chemical products; 24.1: manufacture of basic chemicals; metals and certain agricultural products (such 27 June 2006. A second reading, at which final 24.2: manufacture of pesticides and other as natural rubber and fats). Many of the key agreement may be reached, is currently agro-chemical products; ingredients for chemical, rubber and plastic planned before the end of 2006. The 24.3: manufacture of paints, varnishes and goods are derived from fractions of chemicals, rubber and plastics sector also has to similar coatings, printing ink and hydrocarbons from the oil industry which are consider other environmental and social mastics; subsequently cracked by petro-chemical legislation, for example, that relating to 24.4: manufacture of pharmaceuticals, enterprises. In this way, the chemicals, rubber pesticides and biocides (in July 2006, the medicinal chemicals and botanical products; and plastics sector has been particularly European Commission issued a new proposal 24.5: manufacture of soap and detergents, susceptible to sharply higher material and for a regulation on plant protection products cleaning and polishing preparations, processing costs due to the uncertainty under the thematic strategy (2) on the perfumes and toilet preparations; surrounding oil and gas markets in 2005/06 sustainable use of pesticides), waste and water, 24.6: manufacture of other chemical (see Subchapter 13.1). climate change and air pollution, and products; allocations of CO emissions during the period 24.7: manufacture of man-made fibres; 2 25: manufacture of rubber and plastic The main legislative challenge for the 2008–2012 under the Emissions Trading products; chemicals, rubber and plastics sector is the Scheme. 25.1: manufacture of rubber products; adoption of the European Commission’s 25.2: manufacture of plastic products. proposed REACH (Registration, Evaluation and (1) COM(2003) 644. (2) COM(2006) 372. Table 5.1 ______________________________________________________________________________ Top ten chemical enterprise (groups) in the EU-25, 2005 Chemical sales Chemical sales as a proportion World ranking (EUR million) of total sales (%) BASF DE 2 35 077 82 Royal Dutch / Shell UK / NL 3 28 102 11 Total FR 5 22 319 16 Bayer DE 8 16 585 61 BP UK 9 16 563 8 Degussa DE 14 11 748 100 Ineos Group UK 17 9 957 100 Akzo Nobel NL 18 9 442 73 Air Liquide FR 20 9 145 88 ICI UK 23 8 498 100 Source: Chemical and engineering news, 24th July 2006, 84(30), p14, http://pubs.acs.org/cen 93 Chapter 5: chemicals, rubber and plastics NACE DG and DH ACORES P Persons employed in the manufacturing of chemicals, rubber and plastics (NACE Subsections DG and DH) MADEIRA P as a proportion of those employed 025 0 100 in the financial business economy CANARIAS E (NACE Sections C to I and K) 2003 NUTS 2 <= 2 % 0 100 > 2 % and <= 2.5 % GUADELOUPE > 2.5 % and <= 3.5 % > 3.5 % Data not available F 025 MARTINIQUE Germany, Sections G and H, 2002; Malta, 2002 Ireland, Finland and Norway, total employment excludes Sections C and E Cyprus, total employment excludes Divisions 70 and 73 Lithuania, total employment excludes Section I Estonia, Cyprus, Luxembourg and Malta, data refer to enterprises instead F 020 of local units REUNION Statistical data: Eurostat Database: REGIO © EuroGeographics, for the administrative boundaries Cartography: Eurostat GISCO, 08/2006 F 020 GUYANE F 0 100 CYPRUS 050 MALTA 010 0 150 750 km 94 NACE DG and DH Chapter 5: chemicals, rubber and plastics Many of the largest global chemical companies Figure 5.1_________________________________ Figure 5.2_________________________________ have their headquarters in the EU-25 (see World chemical sales, 2004 (EUR billion) (1) Manufacture of chemicals and chemical Table 5.1) and according to CEFIC (the 0 200 400 600 products; rubber and plastic products European Chemistry Industry Council) the (NACE Subsections DG and DH) EU-25 accounted for about one third of global EU-25 586 Breakdown of sectoral value added, chemical sales in 2004 (see Figure 5.1). It is EU-25, 2003 (%) planned that a pan-EU response to the various Asia 506 challenges outlined above will be channelled Basic Manuf. of chemicals through the European Technology Platform for US 415 plastic (1) Sustainable Chemistry (SusChem) that has been Manuf. of products 25.5% rubber 23.0% established and supported by the EU’s 7th 100 Others (2) products Pesticides Framework Programme for Research and 7.1% and other Rest of Technological Development (FP7) which is due 98 agro- Europe Manuf. of to begin in January 2007. The SusChem Action chemical man- products Latin Plan is being discussed at the time of writing, 70 made 1.1% America (3) and is likely to cover research programmes on fibres (1) 1.2% Soap/ Paints, industrial biotechnology for eco-efficiency, (1) World sales correspond to domestic sales and Other deter., varnishes, materials technology for the discovery of new exports. chemicals cleaning, Pharma- printing materials with tailored properties, and reaction (2) Canada, Mexico, Africa and Oceania. (1) perfumes ceuticals ink & (3) Central and South America. 5.8% & toilet 24.5% mastics and process design. According to CEFIC, R&D Source: CEFIC, http://www.cefic.org prep. (1) expenditure by the sector (excluding, it should 7.2% 4.5% be noted, pharmaceuticals) within the EU-15 (1) Rounded estimate based on non-confidential data. has fallen from 2.4 % of sales in 1998 to 1.8 % Source: Eurostat (SBS) in 2004, behind the corresponding rates of 1.9 % in the United States and 2.6 % in Japan. STRUCTURAL PROFILE the chemicals, rubber and plastics Luxembourg (21.4 %). Nonetheless, it seems The chemicals, rubber and plastics manufacturing sector as a whole. Within the likely that Ireland was the most specialised manufacturing sector (NACE Subsections DG activities of rubber and plastic products Member State in these activities, based on the and DH) in the EU-25 generated EUR 241.0 manufacturing (NACE Subsection DH), the limited data available; the chemicals, rubber billion of value added in 2003, representing principal activity was plastics manufacturing and plastics sector accounted for 42.5 % of 14.2 % of industrial (NACE Sections C to E) (NACE Group 25.2) which generated a little Irish manufacturing (NACE Section D only) value added (see Table 5.2). The sector under one quarter (23.0 %) of the value added value added (3), considerably more than the employed 3.6 million people, about one in ten generated by the whole of the chemicals, shares for the EU-25 as a whole (15.8 %), of the industrial workforce. rubber and plastics manufacturing sector. Belgium (25.3 %) or Luxembourg (23.6 %). The value added generated by the activities of Among the EU-25 Member States, Germany (3) The relatively high proportion of Irish chemical, chemical products and man-made was by far the leading producer of chemicals, manufacturing value added that is accounted for by the chemicals, plastics and rubber sector may reflect fibres manufacturing (NACE Subsection DG) rubbers and plastics, accounting for one foreign ownership of enterprises, outsourcing of accounted for the vast majority (70.0 %) of the quarter (25.2 %) of the value added generated activities, and accounting practices of multinational sectoral total. Indeed, the activities of basic for the EU-25 as a whole in 2003 (see enterprises. Note that this observation applies throughout this chapter, where Ireland consistently chemical manufacturing (NACE Group 24.1) Table 5.3). The contribution of value added reports very high levels of value added and related and pharmaceutical manufacturing (NACE generated by the chemicals, rubber and plastics indicators (apparent labour productivity, wage Group 24.4) together accounted for one half manufacturing sector to industrial value added adjusted labour productivity, the gross operating surplus, and the gross operating rate). (50.0 %) of the value added generated within was particularly high in Belgium (22.8 %) and Table 5.2 ___________________________________________________________________________________________________________________________ Manufacture of chemicals and chemical products; manufacture of rubber and plastic products (NACE Subsections DG and DH) Structural profile, EU-25, 2003 Value Share of industrial Number of Share of industrial added value added persons employed employment (EUR million) (%) (thousands) (%) Chemicals and chemical products; rubber and plastic products (1) 241 000 14.2 3 560 10.1 Basic chemicals; pesticides and other agro-chemical products (2) 64 000 3.8 614 1.7 Pharmaceuticals, medicinal chemicals and botanical products 59 246 3.5 576 1.6 Miscellaneous
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