A Future, Together
Proud History - Sir Tom McKillop, the former CEO of Astrazeneca, encapsulated Scotland's relationship with the chemical sciences industry perfectly: "Scotland has a very proud history of innovation in the chemical sciences but we can't rest on our laurels. Be innovative and success will follow." The industry has a long and established history in Scotland. The country which gave the world innovators such as Joseph Lister has become a base for some of the world's biggest chemical sciences operators. Ineos, Exxon, Glaxosmithkline, Dow, Fujifilm, Merck KGaA and BASF are some of the major players which have made Scotland their home and helped make it home for the manufacture of basics, specialty, pharmaceuticals and consumer chemicals.
A hub for some 150 chemical and pharmaceutical companies, the Scottish sector is worth in the region of £9 billion, generating export revenue in excess of £3.5 billion per annum. One of the country's most productive sectors, it generates gross value added per employee of £181,000, provides employment for 14,000 skilled people directly and 70,000 through dependent services. Its 13 universities and six colleges produce in excess of 500 graduates per year, adding to the broad skill base that makes Scotland not only a key manufacturing destination for world leading companies, but a hotbed for industrially focused academic research.
A number of small to medium sized enterprises support companies across the world with the advancements and technologies developed in Scotland. And this is achieved through Chemical Sciences Scotland (CSS) - the joined-up approach taken by industry, academia and government in Scotland to make sure the country's chemical sciences industry isn't just successful today, but grows and becomes an even greater force in the future, to create high value opportunities for skilled people and innovative companies, and contribute to the solutions we all currently seek e.g. low carbon economy and renewables.
The Role of the Government and Agencies
Scottish Enterprise (SE) is a key driver in the development of Scotland's chemical sciences sector through the economic value the sector can create. Scottish-government funded, it is the country's main economic development agency whose remit is to generate sustainable economic growth through globally competitive companies, sectors and business environment. SE works along with its international arm - Scottish Development International (SDI)-seeking to generate more investment, particularly R&D into Scotland and to assist Scottish companies seeking to expand through entering new international markets.
The sector has been identified by the government as one that will contribute to Scotland's ambitions of building a world-class economy. They recognize that although a key industry in itself, it also underpins its other key sectors; life sciences, and energy and provides many "enabling technologies."
Sector Success
Scotland's chemical sciences companies are securing significant contracts. Between 1998 and 2004, the sector experienced growth in turnover of 36%.
Fujifilm Imaging Colorants' has invested more than £15 million in a new inkjet dye manufacturing and finishing plant, doubling existing capacity and making its Grangemouth facility global centre of excellence. This is the first R&D investment for the company outside of Japan.
This year's Informex event in San Francisco, a showcase for the sector across the world, had an increased Scottish presence. Heavily supported by SDI, the Scottish companies that attended secured £500,000 in new contracts.
Regional Selective Assistance, Technology Strategy Board awards, Spirit Awards, R&D grants, SE account management support are just a few of the financial programs available to organizations interested in placing investments into Scotland.
Financial assistance is just a part of the support the industry in Scotland receives. The close relationship between academia, private, and public sectors is paying dividends.
Scotland has 13 universities and six colleges providing chemistry, engineering, and education excellence for the sector. This ensures a local supply of work-ready graduates. Ineos' Engineers of the Future program, has been highlighted as best practice designing a seamless course from college, through university to master's degree level, designed with the businesses needs at its core, and enabling students to be employed throughout. A win- win situation for all concerned.
A key partnership scheme is the £23 million ScotCHEM initiative. It involves Strathclyde, Glasgow, Heriot-Watt, Edinburgh, St. Andrews, Dundee and Aberdeen universities and aims to enhance excellence in chemistry research. In all, it represents a community of 190 academic staff, 240 postdoctoral researchers, and 480 postgraduate research students.
In 2008 ScotCHEM, supported by Government and the Scottish Funding Council, launched a £1.8 million program for 31 additional PhD Studentships in chemistry, working in Scottish-based institutions on challenges for the country's industry base.
SE's Proof of Concept program is another significant bridge between academia and industry. It aims to help researchers successfully export technology ideas from lab to marketplace either through licensing deals or new company formation. In the last two years, eight chemistry Proof of Concept projects have been funded.
This forward-thinking approach to assistance is also being applied to real estate. "Co-location" is promoted within the sector; a way of creating chemical hubs throughout Scotland. Sites adjacent to existing businesses such as Ineos, BASF and Kemfine put new companies adjacent to existing investors, all in areas where the Scottish Government provides capital and research grant assistance. This enables new businesses to establish themselves more quickly, tapping into existing expertise and contacts whilst minimizing the financial and operation risk costs associated with a new citing.
The Possibilities for API Manufacturing and Development
Scotland lies at the heart of the advancement of the chemical sciences sector - where research and technological development is key.
Scotland has strength in depth across the whole process for API users, ranging from the very concept of drug discovery, testing, clinical trials, contract research, development and scale up, pilot plant and full scale production.
Currently there are a number of businesses involved in the development and manufacturing of APIs and this includes global names such as Nicholas Piramal, Kemfine, Glaxosmithkline, Merck KGaA and Phoenix Chemicals. These businesses are able to offer GMP and cGMP facilities in a variety of scale of process.
Some of the smaller businesses are undertaking exciting developments such as Equatec, which is focusing on natural products and in particular Omega 3 and 6 lipids with cGMP specification, whilst Ingenza focuses on industrial-based bio-catalysts for the API and biofuels markets.
The areas of process development and scale-up EPP work, both as CRO and small scale manufacturer, can then be taken to larger scale with our CMO operatives named above. St. Andrews Chemtech specializes in the lab to pilot plant scale up area, and Nitech is changing the whole manufacturing process through the development of its OBR (oscillating baffle reactor) system, which is reducing the size of reactors, reducing cost, quickening and shortening the process and increasing yield.
Caroline Strain, head of Chemical Sciences at Scottish Enterprise, said, "Scotland is ready for success. Our workforce is highly qualified and receives competitive salaries, offering attractive careers for technicians, professionals and graduates and offering companies access to world-class research." Companies such as EPP, Ingenza and Ni-Tech are vital components of the sector as a whole, advancing new technologies within the supply chain that are impacting upon chemical processes and helping the sector improve its competitiveness, and compete on a world stage.
"We aren't just ready to shape our own future; we're ready to contribute to the future of chemical sciences across the world."
