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During the past quarter we looked to be taking significant steps forward in operating under the ‘new normal’. We saw the return of many face-to-face, large-scale events including the relaunch of NEPIC’s flagship annual Meet the Members Conference & Exhibition in October that welcomed more than 500 industry colleagues to Wynyard.

However, as you are no doubt aware, we are once again facing further challenges as we see the biggest spike in positive Covid cases since January 2021, along with considerable concerns and unknowns of a new variant. Yet as we return to working from home and virtual meetings and events resume, 2021 has without doubt been an unprecedented year for the chemical, pharmaceutical and processing sector in the North East of England – a year that provided renewed optimism and opportunity.

Throughout the year, I have reported on the many significant developments and the past quarter has proved equally successful for the region and sector. The East Coast Cluster was announced as one of the UK’s first Carbon, Capture, Usage and Storage projects and this week confirmed the award of first phase engineering contracts. BP unveiled its largest green hydrogen initiative so far in its UK home market with plans for renewable H2 production on Teesside; and Billingham-based Fujifilm Diosynth Biotechnologies confirmed a £400 million investment plan to create the largest multi-modal biopharmaceutical manufacturing site in the UK. 

Furthermore, the Teesside Freeport began operation putting the region at the forefront of green energy, manufacturing, and innovation; and Sembcorp Energy UK have this week announced plans to build Europe’s largest battery energy storage system at Wilton, coupled with news that SABIC are to strengthen operations to enable chemical cracker transformation. 

In the North of the region, investments and developments are prevalent too. The region has made a significant contribution to the immediate response to the pandemic through its manufacturing and innovation strengths. Quotient Sciences have announced a £6.3 million investment in its recently acquired facility at Alnwick that will see the firm notably increase manufacturing capability and create new jobs. Opportunities to further strengthen regional growth in the pharmaceuticals industry through the reshoring of pharmaceutical generic manufacturing are also being developed via the North East Pharma consortium that NEPIC is proud to support.

In addition to the continued wave of great investment news, we also witnessed a surge in engagement activities across the cluster. During 2021, we welcomed 50 new members, delivered an array of virtual events involving more than 1,000 guests and saw the greatest increase in use of NEPIC’s digital marketing platforms. 

Furthermore, and as mentioned, we were delighted to finally return to face-to-face networking in October with our annual conference – and welcomed many colleagues to the ever-successful digitalisation event in December. Our first in person roundtable session was also held since the start of the pandemic and saw the team sharing findings and seeking guidance on the best way forward in progressing our work and support in plastics recycling. 

Last year, I shared a significant growth in the NEPIC team to enable work across key development areas that supports the long-term success of the sector in the North East and brings additional value to members. This work continued through the course of 2021 and saw the introduction of several new projects, along with the completion of initial scoping reviews and research projects. Further information on our work in this important area is detailed below. 

I regularly report on the importance of the foundation blocks of UK manufacturing being understood and protected; and remain steadfast in our messaging that if the UK is to realise its Clean Growth potential – in relation to hydrogen, carbon capture usage and storage and plastics recycling – core industries must be safeguarded as without them a circular economy is unachievable. 

During 2021, the NEPIC team have played an important role in highlighting the impact of major regulatory and policy amendments, along with key Government decisions affecting the region and sector. Our work over the course of the year has seen us support an array of critical matters including Freeports; Short Haul Gas and the Gas Pricing Crisis; Covid & Key Worker Status; Inward Investment; UK Reach; CCUS & East Coast Cluster; UK Global Tax Tariffs; Levelling Up; Innovation and most recently the Decarbonisation & Hydrogen Revenue Support Scheme. 

There is no doubt that notwithstanding the steps forward in combatting the effects of Covid, the challenges will continue into 2022. Despite this, we move into another year with even greater foresight and understanding of our businesses, and our people. As we enter the New Year, we will continue to support your business and work tirelessly to ensure industry in our region thrives. Furthermore, we will continue to represent your needs and views; and deliver a programme that will provide your business with valuable growth support. 

All that we have achieved this year would not have been possible without you. Therefore, may I take this opportunity to thank you for your continued support of the Cluster and your engagement in our activities. We look forward to working with you long into the future to ensure this region remains a thriving home to the largest single cluster of process, pharmaceutical and chemical companies anywhere in the UK. 

 On behalf of the NEPIC team, may I wish you Seasons Greetings and best wishes for 2022.  

With best wishes
 
Philip Aldridge 
Chief Executive Officer, NEPIC  

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Review of the Year 2021

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External Engagement & Influencing

To achieve our vision of a thriving sector in this region, it is vital that government and policymakers understand its importance and take action. During 2021, the NEPIC team played a key role in highlighting the impact of major regulatory and policy amendments, along with key Government decisions affecting the region and sector covering:

• Freeports
• Short Haul Gas & Gas Pricing Crisis
• Covid & Key Worker Status
• Inward Investment
• UK Reach
• CCUS & East Coast Cluster
• UK Global Tax Tariffs
• Levelling Up
• Innovation
• Decarbonisation & Hydrogen Revenue Support Scheme 

We also remain in regular communication with LEP’s, Ministers & MP’s, CIA, Government Departments, Chemistry Council & regional cluster organisations. In relation to Government, we have focused upon outlining the integrated nature of the chemical industry – with the recent temporary shutdown of the CF Fertiliser plant at Billingham being a prime example. 

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A growing membership

NEPIC represents the largest single cluster of process, pharmaceutical and chemical companies anywhere in the UK, and the second largest in the whole of Europe. We manufacture 50 per cent of UK foundation chemicals and a third of UK pharmaceuticals – bringing more than £2.1 billion of value to the region each year.

• Membership stands at 301 companies contributing significantly to cluster activities. 

• In 2021, we welcomed 50 new members to the cluster who provide a broad and diverse array of product and service offerings to the network. A further 11 membership applications are currently in progress.

• Following our return to external networking, the team has developed a strong pipeline of leads that will be progressed in early 2022.

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Events and engagement

Facilitating interactions and enabling connections is at the heart of our work. We create unique insightful and inspirational meetings, workshops and events that promote learning, enable networking and stimulate business growth.

• Despite the continued challenges facing events, we have delivered a hybrid suite of dates that have facilitated networking, business support and best practice sharing – and brought together hundreds of industry colleagues throughout the year. 

• The region’s best and brightest were celebrated at the 2021 NEPIC Annual Industry Awards Event that was delivered virtually and saw £28k donated to winners and nominated North East Schools for vital STEM activities.

• NEPIC’s annual Meet the Members Conference & Exhibition returned to Wynyard Hall’s Grand Marquee in October and provided 500 guests with what was the first opportunity to network and meet face-to-face in over 18 months.

• Mentoring support continued through Engineering Connect & Meet the Mentors.

• Regular meets and business updates continued virtually via Cluster Connect and Pharma Connect. Cluster Connect, held monthly, remains popular across the membership and provides a fantastic opportunity for companies to make introductions and share business information. Speaker opportunities are available to book via Liz Rooney. 

• Furthermore, best practice and technology showcasing have been made available through the Industrial Biotechnology Event (May), Clean Growth Conference (June), Continuous Manufacturing Roundtable (June), Employers’ Conference (June), Plastics Recycling Workshop (Nov) and Digitalisation Conference (Dec). 

• The Teesside Integrated Group, chaired by NEPIC CEO Philip Aldridge, continues to meet quarterly to discuss key issues facing manufacturers.

• Covid testing safety measures were also rolled out for large scale, in person events.    

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Communications

Through our work we promote your business, products and services to NEPIC’s extensive network, whilst championing this sector and region as a great place to do business and supporting local initiatives. 

• Our unlimited digital news service, that is exclusive to members, remains highly popular and offers a prime platform for promotion across the network. 

• More than 1,000 news stories were posted during 2021 and shared with members via web, email, and social media channels. 

• NEPIC’s e-bulletin continues to be circulated on a weekly basis, providing members with the very latest regional sector news and updates. 

• 2021 saw the return of the NEPIC Directory that showcases the diverse range of businesses, products, and services available across our network and region. 

• A new online business support and funding opportunities area was developed to help members access support – and understand eligibility and application criteria. 

• We have continued to grow our database and social networks to ensure effective dissemination of information.

• We continued our support for charities and education partners including High Tide Foundation, Teesside Hospice and Children Challenging Industry. 

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Projects

Last year we reported a significant growth in the NEPIC team to enable work across key development areas that supports the long-term success of the sector in the North East and brings additional value to members. This work, detailed below, continued through the course of 2021 and saw the introduction of several new projects, along with the completion of initial scoping reviews and research projects.

Supply Chain North East

Supply Chain North East works with businesses looking to diversify, broaden their customer base and unlock new market opportunities – and supports companies by developing core competencies, understanding improvement needs and identifying suitable opportunities in new and existing markets. A partnership between the North East LEP, RTC North, NEPIC, NEAA and Generator North East, this project will work with over 800 businesses between 2018 and 2022 and is designed to support companies across Advanced Manufacturing; Health and Life Sciences; Subsea, Offshore and Energy Technologies; and Digital, Tech and Creative. For more information, and to find out if you can tap into this support, click here or contact NEPIC’s SCNE project manager, Glen Kelly.

Made Smarter Adoption North East

Made Smarter Adoption North East, launched in August 2021, is a fully funded business support programme specially designed for manufacturing SMEs in the North East region covering both the North East LEP and Tees Valley Combined Authority areas. This project has been designed to help businesses go to market faster, cut costs and reduce downtime, by investing in digital tools, innovations, and skills. NEPIC is a delivery partner for this programme. Contact Ryan Siddall, Innovation Manager and Made Smarter project lead for NEPIC, about how you can access world-renowned businesses and the UK government and connect your organisation with digital tools that can transform the way you work.

THYME Project / Bio-EO

In 2021, the THYME project was awarded funding of £1.8 million from Research England to continue a highly successful collaboration between the Universities of Teesside, Hull, and York. The universities will continue to work together to develop innovation assets and drive increased productivity in the bioeconomy across the Tees Valley, the Humber and Yorkshire. The innovations kick-started by THYME will not only help to boost economic growth but pave the way to a more sustainable future where industry uses renewable sources of raw materials. The THYME Project is also supporting the recently communicated Bio-EO Project. The aim of the project is to build the business case to re-shore and decarbonise the ethylene oxide supply chain.

ISCF Cluster Plan Project

Innovate UK is running the Industrial Decarbonisation Challenge, supporting CCUS deployment schemes, industrial clusters, and an industrial decarbonisation research initiative across the UK. This aims to develop four low-carbon industrial clusters by 2030; and four net zero clusters by 2040. In the Tees Valley, a consortium of TVCA, bp and NEPIC are developing the decarbonisation ‘Cluster Plan’ for our industrial cluster. In this we are developing a strategy for decarbonisation using CCUS, hydrogen generation, fuel switching and renewable energy generation as the core technologies. Over 40 CO2 emitters are being contacted for information about their emissions with engineering studies being carried out to develop the data for the decarbonisation strategy and impacts on the region’s jobs and economy.

Sustainable Aviation Fuel 

CPI received funding for the FASTACEJET project to optimise technology for the scalable, cost-effective, and energy-efficient production of sustainable aviation fuel. The outcomes of this project have the potential to minimise reliance on fossil fuels and reduce greenhouse gas emissions in the global aviation industry. In support of this activity, NEPIC have taken a position on the project Steering Group alongside Rolls-Royce, Airbus and TVCA.

Transforming Foundation Industries Research & Innovation Hub (TransFIRe)
 
Through TransFIRe and the Chemicals Technical Working Group (TWG), of which NEPIC is a member, this project brings together researchers with specific materials, energy and processing expertise, industry experts, and representatives from trade associations, policymakers, and non-profits, to identify the hot spots of resource usage within each sector and potential to drive improvements. The Chemicals TWG is one of the six TWGs in TransFIRe, with groups on ceramics, glass, cement, metals, paper, and chemicals.

CRF Innovation Project 

This new project, a consortium with NEPIC, the Innovation Super Network and RTC North and funded via the Communities Renewal Fund, will seek to improve innovation in large companies via the region’s SME supplier based. Running from January to June 2022, this project will support companies within the Tees Valley LEP.

Pharmaceutical Innovation Accelerator 

This project, that was funded by the NE-LEP, allowed NEPIC to scope potential for greater support for members across the pharmaceutical and life sciences sector. More specifically, it sought to bridge the gaps, and streamline collaboration between stakeholders of industry, comprising of industrial manufacturers, SMEs, academic research groups and training providers.

Healthcare & Life Sciences Fund
 
2021 also saw NEPIC provide support to the NE-LEP to carry out a supply chain study to identify potential suppliers and service providers who may be able to contribute to a new generic drug manufacturing facility in the region via the newly formed North East Pharma consortium.

Bioprocessing & Plastics Recycling
 
During 2021, NEPIC’s innovation managers have been providing vital scoping work across bioprocessing and plastics recycling that achieved considerable engagement and support from key stakeholders. In the case of plastics recycling, an initial mapping exercise took place and future opportunities identified. In late November, a workshop was held to share and discuss findings with members and seek guidance on the best way forward in progressing our work and support in this area.

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Protecting your special interests

We are continually addressing industry challenges and championing the sector to ensure the long-term sustainability of chemical processing in the North East of England. During 2021, the team led industry focus groups covering:

• Teesside Integrated Manufacturers
• Decarbonisation & Industrial Hydrogen
• Innovation
• Plastics Recycling
• Pharmaceutical Manufacturers

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Looking forward to 2022

Working to support our members and grow North East England’s chemical, process, and pharmaceutical sectors. During 2022, we will:

• Continue to support your business and ensure the long-term sustainability and growth of the North East’s Process Sector.
• Continue to support our members during these unprecedented times. 
• Deliver a hybrid events programme that offer unique and focused networking, learning and business opportunities.
• Continue to raise the profile of our industry with Government.
• Ensure ‘Levelling-Up or ‘Shared Prosperity’ funding comes our way.
• Increase our activity in helping to attract foreign direct investment.

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Key 2022 dates for your diary

• Virtual Cluster Connect, 20 January
• Virtual Cluster Connect, 17 February 
• BP Supplier Event, TBC February 
• Cluster Connect Special with SABIC, 24 February 
• Virtual Cluster Connect, 17 March
• NEW DATE: Annual Industry Awards & Dinner*, 25 March
• Best Practice in Asset Management Conference, Date TBC
• Meet the Members Conference & Expo, 22 June

*NEPIC Annual Industry Awards & Dinner 2022 postponed following growing Covid concerns. Click here to read our recent statement.

To find out more about our upcoming events, and secure your places, visit www.nepic.co.uk/events

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Thank you again for your continued support. 
We looking forward to working with you long into the future.