UK chemical companies experienced steep sales declines in the last six months of 2022, with 53% reporting a drop in exports to the European Union in the fourth quarter, ICIS reported, citing a Chemical Industries Association survey.
Also, 50% of chemical companies said demand for their products fell during the last three months domestically and abroad.
The trade group cited climate change-related regulations as a factor contributing to the industry’s struggles. Chemical Industries Association CEO Steve Elliot noted that UK chemical companies must report on 17 different climate change measures compared with “a far more attractive U.S. investment climate, driven by the Inflation Reduction Act.”
“We knew we were heading for challenging times, but the extent of contraction is worse than feared,” said Elliot in the ICIS article. “As an industry we stand ready to deliver growth and deliver net zero for the UK, but we cannot do that while the policy-framework kills off any incentive for manufacturing investment in our country.”
To read the full ICIS article, click here.
