Irelands Booming Chemistry Industry

The state of Europe's chemical industry was reviewed in annual Facts & Figures issue of C&EN, the ACS news magazine. The table shows the statistics for the Irish industry from 1995 to 1999.

Chemical Production in Ireland 1995-1999
C&EN 26/6/00

These figures are very impressive with a growth in sales of 306% since 1995. Imports of chemicals have remained fairly static but exports have soared giving a positive trade balance of $16.8 billion in 1999. Employment has grown steadily over this period. The industry is still small compared with Germany's sales of $103.5 billion in 1999 (4.5 times that of Ireland) but in 1995 Germany's production was over 13 times bigger than Ireland. Employment in Germany is 478,000 compared to 23,000 in Ireland so that Ireland's industry is far more productive. The main features of Ireland's chemical industry are its rapid growth, its export-orientation and its high productivity. At the current rate of growth Ireland will overtake some of the longer-established EU countries in the next decade, if not earlier. The table below shows more data for countries in Europe in 1999 with changes since 1995.
Turkey & Norway not included as 1999 figures not available.
Columns indicate sales in 1999 in $ billion; % change 95-99 in sales; % change in production relative to 1995 =100; 1999 productivity measured as sales per thousand employees in $ million; 1999 balance of payments measured as value of chemical exports - chemical imports. A positive figure indicates a positive trade balance in chemicals.
From the figures above it is clear that Ireland's performance over the last 5 years stands out above the rest of Europe. However, this growth has been going on since the 1980s but from a very small base. Two decades later in 1999 Ireland is able to compare itself with some of the big players in European chemicals. It is 9th. in overall sales and first in % growth of sales 95-99 and in production growth 95-99 and also in productivity per thousand employees in 1999. All the countries except Hungary saw a growth in sales and production from 95-99, but Ireland's figures far exceed the others. If growth in 2000 were the same as in 1999 then Ireland's chemical industry would exceed that of the Netherlands and be close to catching up Switzerland and Spain. Ireland is second after Germany in chemicals balance of payments (exports-imports), but first when exports as a percentage of sales is counted.
            The boom is not over as they are still new plants and expansion projects underway or in the pipeline that will not start contributing for some time. This year American Home Products Corporation (AHPC) announced 1300 news jobs in Grangecastle, Clondalkin in a new biotechnology campus. The only possible flaw on this impressive performance is the danger of a skills shortage slowing down growth and the location of new companies. IPCMF has set up a new committee to look into skills shortages and make recommendations for action.
            It is interesting to look back at the situation a decade ago in 1988, when a survey of the Irish chemical industry was published.1 In 1988 Irish chemical sales were $3.1 billion, exports were $2.5 billion and the trade balance was only $0.49 billion. Employment was 12,200 and productivity/1000 employees was $252.4 million. By 1999 sales have gone up to $23.2 billion, exports to $22.6 billion and the trade balance to $16.8 billion. Employment has grown to 23,000 and productivity to $1,008.7 million per thousand employees. Doubling the workforce has quadrupled the productivity!
            In 1988 the fledgling Irish chemical industry was only 6.9% of the U.K. chemical industry, established for over 150 years. In 1999 the Irish industry had a turnover 46.4% of the U.K. industry, an amazing catch-up in a decade. This is due to the remarkable growth that has pushed Ireland from being a minor player to being in the world's first division (if not the premier league) of chemical producers. All the signs are that this growth will continue at least for the next few years, with new plants being built by Galen, AHPC and Bristol Myers Squibb, in addition to plant expansions. Now is the time to advise your children to study chemistry for well-paid, interesting and secure jobs.
            However, the industry was have to start employing new graduates and technicians who don't have experience, to give them an opportunity to gain that experience on-the-job. If young people are to be encouraged to study chemistry at school and at third level, they need to know that they are employable in Ireland on graduation without further study. Good science graduates who can't find employment in Ireland when there is a skills shortage is a bad advertisement for the recruitment policies of the industry, and will act to dry up the supply even further. It does however stress the value of relevant work experience during vacations and the advantages of courses which include work placement when it comes to job-seeking.
P.E. Childs

1. P.E. Childs and M. Walsh, Directory the Irish Chemical Industry, SICICI, Limerick, 1989 (out of print)