2. Introduction
• NEPIC - Who We Are
• Why NEPIC was Created
• What Changed when NEPIC was formed by Industry
• Why Clustering is important to Business
• Tactical Services from NEPIC
• Timescale, Investment & return
NEPIC Industry Analysis
Strategy
• NEPIC Industry Vision
• NEPIC Cluster Mission
• NEPIC Cluster Objectives
• NEPIC Cluster Strategy
Activity
• NEPIC Tactical Activity to support the strategy
• NEPIC Strategic Support to Members
• NEPIC Strategic Support of Members
• NEPIC Stakeholder Communications
• NEPIC Organising for delivery - Leadership
• NEPIC Organising for delivery - Thrust Teams
NEPIC Strategy Presentation
3. Butler, 2012
1. Has 58% of the UK’s Petrochemical Industry
2. Representing 35% of the UK’s Pharmaceutical manufacturing
3. A Biotechnology & Bioprocessing sector generating £2bn
4. Home to over 250 Polymer and Rubber companies
5. ~1,400 supply chain companies
6. Over 35,000 people employed
7. A further 200,000 are indirectly employed
8. Generates over £28 billion of the regions GVA (~£45B)
9. It is the regions largest industrial sector and the biggest
exporter
10. Over 80 investments totalling £5 Billion since 2005
11. One of Europe’s highest concentrations of Engineering &
Analytical expertise (ATEC companies)
North East England Process Industries
Chemicals, Pharmaceuticals, Bioprocessing, Polymers, Steel,
Minerals, Renewable Materials and Energy from Bioresources
Who we are
4. NEPIC is industry’s mechanism to support the
rejuvenation, growth and sustainability of the sector
England
Why NEPIC was created
5. 5
Industrialists Changing their Approach
A B“ Confident, vibrant and sustainable, the first choice
investment location in Europe for existing and new ventures
in the process and related industries.”
“ Accepting our fate whether
good or bad.”
Investment.
Place of choice.
Innovation.
Collective.
Collaboration.
Industry Indifference & Inertia Pre NEPIC
Responsive & Proactive Industry Post NEPIC Formation
What Changed when NEPIC was created
6. International benchmarking demonstrates that business
collaborations through clusters bring significant benefits
• Companies can overcome the tendency to believe that business improvement
only arises from internal ideas & practices
• Companies gain broader and deeper management insight to constraints,
business environments & development opportunities
• Collaborative opportunities can be identified and more easily de-risked in
Clusters
• Investors gain a better understanding of industry capability, infrastructure and
symbiosis
• Supply Chain intelligence is much deeper in established clusters
• The Cluster is a platform to engage private and public organisations to address
the needs of the sector.
NEPIC Supports Members Businesses and Management Nous
Through Established Cluster Practices & an Experienced Executive Team
Why Clustering is important to Business
7. Tactical NEPIC Cluster Benefits
• Networking opportunities through our regular business & social meetings
• Industry & supply chain intelligence and market studies
• Publicise your business and the region’s capabilities on both a local & global level through the NEPIC
website, NEPIC Directory, our Focal Point newsletter and a number of bespoke marketing brochures
• PR support and guidance
• Direct marketing to businesses who will be interested in your products and services
• Increased profitability through Energy & Resource Efficiency & Productivity Programmes
•International Trade, New Business Opportunities & Supply Chain Connections
• Support for Investments with Technical & Funding advice
• Impacting on Skills, Education & Stakeholders
• Opportunity to join the Nepic Buying Group
• Opportunity to benefit from the Nepic Insurance Scheme which guarantees members saving of at least
10%, enhanced policy coverage and market leading risk management advice
• Participation in the Cluster Utility Management and Buying scheme
. Services available from NEPIC
Companies participating are playing a vital role in
securing the future of the North East Process Industries
8. HEADLINES
730 participating member companies
£3.0 billion of GVA created by cluster activity since 2003
Annual GVA contribution through Cluster activity now exceed £463m
83 significant investments captured & 4500 jobs created or secured
From an initial £6 Million of public sector support – representing a
332% ROI
proven industry buy-in through £20 Million of in-kind industry
contribution towards cluster activities such as mentoring &
supporting SME growth.
NEPIC’s economic impact to date
Timescale, Investment & Return
9. Industry Analysis
Petrochemicals
Challenges
1.Declining Local feedstock
2. Ageing Pant & Equipment
3. Increasing Environmental costs Carbon & Energy
4. Availability of Technical Staff
5. Fragmentation of UK Clusters reducing value
from integrated manufacturing
Base Chemicals
Challenges
1. Ageing Assets require high level of maintenance
2. Availability of Technical Staff
3. Investment into new raw material sources e.g.
Frac & Syngas and Coal gasification
4. Image & confidence in the long term viability of the
Cluster due to reduced integration synergies
5. Local market hardly supports the production
capability of the Cluster
6. Defending and building on the existing ammonia
Cluster
7. Environmental regulations impose barriers to
Industry competitiveness
Opportunities
1. New Feedstocks being introduced – ethane & UGC
2. Supply chain reintegration study top priority
3. ICCS project implementation
4. Incentives to use bio & waste materials
5 Strengthen engineering network
6. Existing infrastructure can support growth
and further integration e.g. utilities
7. Skills interventions now seen as priority
Opportunities
1. Apprenticeships in place industry now must act
2. Mentoring graduates in university co-op programmes
3. Leverage new raw material sources i.e. hydrogen, waste
Clean coal , UCG etc.
6. Identify new product and utility opportunities to increase
integrated manufacturing & symbiosis
7. Stimulate interdependencies with
Commercial agreements and long term contracts
8. More export market focus including improved exporting
9. Infrastructure – e.g. deeper port facilities
10. District heating to improve energy balance
11. Challenge policies that impose extra costs
10. Industry Analysis
Pharmaceuticals
Challenges
1. Accelerated outsourcing of products due to increased
costs of red tape and regulation e.g. Increasing coast
due to reach
2. Fewer products emerging from the R&D pipelines
3. Product complexity is increasing putting demands on
technology and costs
4. Existing processes under scrutiny to remove
hazardous materials - competing constraints between
safety & GMP requirements
5. Availability to technically qualified staff particularly
technician
Specialities
Challenges
1. Access to capital for plant expansion
2. Regulatory burden gives rise to unrealistic costs for
HSE and EA interaction and compliance
3. Access to good quality raw materials threatened by
none UK supply chain
4. Availability of skilled staff
5. Toll manufacture in far east
6. IP leakage
Opportunities
1. Global Market expanding at 10% per annum
2. Build on excellent record of UK Pharma
Manufacturing
3. Capability to attract future investment into the more
complex products – promote NE!
4. Pharmaceutical group training schemes would help
to increase availability of technical staff
5. Wider adoption of LEAN
6. Utility costs reductions
Opportunities
1. Promote on-shoring of UK manufacturing
2. Identify international partnerships for supply chain
enhancement
3. UK PLC brand carries some credence again and we
should promote this more across international cluster
networks
4. Onshoring – OTIF – lower IP risk
11. Industry Analysis
Renewable Energy & Chemicals
Challenges
1. Lack of Government energy strategy and market
reform leads to uncertainty and stalls development
2. Export of UK waste to cheap offshore land f fill has
potential to stall UK investment
3. Constant changes to green regulation increase risks
to Low carbon projects
4. Increasing project lead times due to planning,
financing and project engineering imposes greater risk
to further capital developments
5. Teesside Track record of completing projects
Polymers
Challenges
1. Long term need for more bioplastics brings huge
costs for industry
2. New Builds in Middle East & Asia will reduce margins
and limit future investment
3. EU legislation reduces competitiveness
4. Sustainable / recycled polymers are not cheaper than
5. Virgin polymer as processing can be more complex
6. Lack of cohesive national recycling strategy results in
poor quality recyclates
7. Increased demand for bio based plastics
Opportunities
1. Representations to government and local MPs and
formation of industry council at BIS would help
2. Stable policy environment could enable UK to
become leader in advanced technologies
3. Support innovation and demonstration of advanced
technologies e.g. Hydrogen from syngas etc.
4. Low Carbon focus can rejuvenate the Teesside
Cluster
5. Large companies increasingly driven by green
credentials (see NEPICs DEELOCSI Project)
6. Best practice in Chemical parks will help drive green
investment ( See NEPIC’s LOCIMAP project)
Opportunities
1. Convince government to improve recycling
2. Replacement of oil based raw materials with
bio based raw materials
3. Work with biopolymer producers to ensure
complimentary market opportunities
4. Improved technologies for waste sorting provides
Improved recycle/reuse opportunities.
12. Industry Analysis
Bio Industrial / resources / renewables
Challenges
1. Changes in Government Policy
2. Replacing petrochemical feedstocks
3. Process economics to match existing costs/prices
4. Finance for major investments
5. Access and long term availability to feedstocks
6. Increased demand for bio based plastics
Bio Pharmaceutical
Challenges
1. Business models for regenerative / curative medicine
2. Reducing prices for medicines vs more expensive
3. personalised medicines
4. Genetics and impact on drug discovery &
personalisation
Bio Health Care
Challenges
1. Information management in the Healthcare
environment
2. Home based care
3. Combination products
Opportunities
1. Synthetic biology can bring in new materials
2. Reducing carbon footprints
3. Biorefining moving from lab to scale up facilities and
full implementation
4. Algal biomass could become a large scale
manufacturing opportunity
5. Promotion of NE capability and infrastructure
6. integration study to determine best use of
Feedstocks
7. Increased demand for bio based plastics
Opportunities
1. Stem Cell technology
2. Personalised medicines
3. Quality by Design implementation
4. Bio manufacturing facilities and capability in the
region
Opportunities
1.Point of care diagnostics
2. Theranostics: the integration of therapeutics with
diagnostics
3. Ageing world population
13. Industry Analysis
Steel & Metals
Challenges
Off shore competition & demand dynamics
Energy costs
Reliant on imported raw materials
Future cost of carbon & climate change
Raw Materials & Minerals
Challenges
Green lobby
Planning
Technology development for UGC
High level cost of investment
Carbon Reduction?
Challenges
Government policy lack of certainty
Longevity of support schemes
Climate change acceptance
Opportunities
CCS
Opportunities
New Sirius investment
UGC & syngas s development
Opportunities
CCS
Wood & packaging recycling
Biogas economy – syngas- Hydrogen
14. NE Engalnd Process Industry Vision
The process industry in NE England is a world class, high value
process industry cluster based on innovative, sustainable high
tech manufacturing. We are recognised as passionate and
proud of the process industry, our region and its stakeholders.
15. NEPIC Cluster Mission
Members
Support Cluster members to become successful, profitable and sustainable organisations.
Location
Help to create a business climate and infrastructure so that members can grow and
become more sustainable businesses.
Organisation
Be the focal point for members to collaborate to rejuvenate and grow local process
industry.
16. Increase the sustainability of Member’s businesses through Value Chain Collaboration &
Engagement (see strategy 1,3,4,6,7)
To create supply chain opportunities through value propositions in investment, infrastructure and innovation
projects including upstream and down stream of the process sector.
Enable companies to build the Skills of their employees (see strategy 1,3,8)
Sign post members to effective suppliers and identifying new approaches to apprenticeships and other up-
skilling opportunities. Increasing the collective skills activity of the industry.
Attracting investment (see strategy 1,4,5,7)
Champion the location and its infrastructure. Assist with the de-risking of investment propositions for
investors. Proactively and reactively working to increase the profile of the region and its industry by being
both the ears and voice of the industry.
Influencing through communication and the collective Voice of the Sector (see strategy 1,4, 5,6,7)
Enable member companies to effectively communicate on behalf of the industry.
Whenever possible work in partnership with other industry bodies to reinforce key messages from the sector.
Provide a unified voice for the sector.
Membership benefits (see strategy 1,2,3,4,5,6,7,8)
Provide practical support and tangible benefits to Cluster Members benefits particularly to SME members
whose growth & participation is essential to strengthen the local supply chain.
NEPIC Cluster Objectives (measurable KPIs?)
17. NEPIC Cluster Strategy
NEPICs overall plan is to improve its own sustainability, that of member
companies and grow the economy of its region by:
1. Ensuring an effective Cluster Executive is in place, trained and financed.
2. Growing cluster participation - increasing membership numbers and interactions.
3. Building collaborative business and technical projects to address sector issues.
4. Promoting the process sector and industry locally, nationally & internationally.
5. Improving stakeholder communications and maintaining dialogue with other sector
bodies.
6. Increasing the engagement between companies across its supply chain,
particularly SMEs.
7. Building deeper international relationships through other process sector clusters.
8. Guiding & supporting its members in their up-skilling activities.
18. NEPIC Tactical Activities To Support its Strategy
1. Develop and support projects for the rejuvenation, sustainability and growth of the process sector.
2. listen and inform through Communication with local, national and international stakeholders,.
3. Maintain & Develop connectivity with other industry bodies and clusters building projects to address sector issues.
4. Increase international awareness to achieve business growth through participation with other international Clusters.
5. Create trade opportunities for members and market the capability of sector companies .
6. Identify circular economy opportunities in the process industry supply chain in the region.
7. Nurture & increase membership participation in the cluster, facilitating networking & collaboration between members.
8. Identify industry mentors to guide members in the supply chain to increase interaction and sales.
9. Support sector growth activities, attracting & developing inward investment .
10. Provide insight to companies of the capability of universities and innovation centres.
11. Contribute to skills development activities, growing apprenticeships and graduate capability .
12. Support Children Challenging Industry Programme delivery, making science and industry more attractive.
13. Develop the competency and capacity of the Cluster executive, provide resource to deliver core and project activity
14. Provide effective networking workshops and events which meet sector needs and opportunities.
19. Strategic Support for NEPIC Members
1. Collaborative networking to interact with SMEs and larger companies.
2. Gain early intelligence on investment, business changes and new opportunities.
3. Direct marketing to key industry targets.
4. Reduced entry fees to NEPIC Events.
5. Invitations to industry meetings and working groups.
6. Interact with process industry leaders.
7. De-risked entry to overseas markets via overseas cluster partners.
8. Members have first opportunity to present at NEPIC events and host networking meetings.
9. Opportunities to benchmark and increase market and industry intelligence.
10. Only member businesses are promoted in the NEPIC Directory, website and in FocalPoint.
11. Membership ensures NEPIC staff are contributing to its members sales & marketing.
12. Enquiries received from the sector and beyond are only passed on to NEPIC Members.
13. Mentored support for SME Members from NEPIC executives and leading local industrialists.
14. Reduced costs through buying groups for business materials, insurance services and utilities.
15. Involvement in industry studies that can expand horizons and grow businesses.
16. Contribute to the skills agenda and extract value from the complicated skills landscape.
17. Participate in innovation projects to develop business and access relevant technologies.
18. Utilise the wide industry experience of the NEPIC team, Cluster Leadership & Member network.
20. Strategic Stakeholder Communications
Listening and communicating with stakeholders has become such an important activity for
NEPIC that how the Cluster interacts with its wide ranging Stakeholder interests and what it
Communicates needs further analysis.
Members
Operating companies
Employees (workforce)
Future leaders
Supply Chain & Tiers
Customers
Trade Unions
Members’ suppliers
Current & Future investors
Politicians & Civil Services
EU & EU Commission
National Government Departments
Civil Servants
Quangos /Cogent/UKTI
Politicians/Lobbyists
LEPs/Local Authorities (planning etc)
NGOs
Wider Industry
Future investors/banks/financiers
Trade Magazine Publishers
Corporate Head Offices
Trade and Professional Associations
Related industries (particularly relevant to skills)
Other Clusters
Targeted Countries & locations
General Public
Academia/Schools/Colleges
General Public (local/national)
World
Internet/Social Media
Media/Press (regional and national)
Local Radio/TV
21. Organising for Delivery - Industry Leadership
NEPIC Board Members Director Chair Vice chair
Leadership Team
Paul Alton ABB Consulting
Douglas Annan Sembcorp Utilities
Steve Bagshaw Fujifilm Diosynth Biotech
Paul Booth OBE SABIC UK Petrochemicals
Roger Bowie Piramal Healthcare
Richard Brady WorleyParsons
Stewart Brennan Tanton Industries
Keith Brudenell GrowHow
Andrew Cockroft GlaxoSmithKline
Gary Conroy Huntsman Pigments
Chris Cooke Johnson Matthey Catalysts
Malcolm Cossey Agility Logistic Solutions
Ross Coulman IAMTech
Peter Dewar Griffon Management
Mike Ducker SABIC UK Petrochemicals
Stephen Duffield Wilton Centre
Simon Hodgson Teesside University
Stan Higgins NEPIC
Jerry Hopkinson PD Teesport
Marjory Houseman Northumbrian Water
Martin Inskip MSD
Melanie Jury Lucite International
Mark Kenrick Lotte Chemical
Malcolm Knott Industrial Technology Systems
Nick Lee ConocoPhillips
Dave Lockyer BOC
Cornelius Louwrens SSI UK
Nick Martin Fujifilm Diosynth Biotech
Chris McDonald Materials Processing Institute
Albert Pattison Hart Biologicals
Nigel Perry CPI
Martin Porton RTC North
Bob Redfern High Force Research
George Ritchie MBE PX Limited
James Robson MBE Exwold Technology
Dermot Roddy Five-Quarter Energy
David Ruddy Biochemica
John Shipman Huntsman Polyurethanes
Richard Smith 2M Holdings / Banner
Peter Snaith Bond Dickinson
Ian Stark Chemoxy International
Ian Swales AIJ Partners
Mark Taylor Industrial Technology Systems
Andy Teague Koppers
Steve Trillo Lotte Chemical
Aiden Walker Piramal Healthcare
Clive Whitbourn DRD Consultants
Mark Whitehead Ward Hadaway
Caroline Mackenzie Lucite International
Director Chair Vice Chair
Observers
Mauricio Armellini Bank of England
Sue Houston OBE Business, Innovation and Skills (BIS)
Roy Sandbach North East LEP
Mark Turner Business, Innovation and Skills (BIS)
Stephen Catchpole Tees Valley Unlimited
Ian Mains Cogent Skills
Tom Smyth Business, Innovation and Skills (BIS)
John Brady NEPIC
Louise Gwynne-Jones NEPIC
Ebba McGuigan NEPIC
Felix O'Hare NEPIC
22. Intelligence Gathered & Issues Addressed
through Industry Populated Thrust Teams
Marketing & CommunicationsGDP Gap Closure & Investment
Manufacturing &
Productivity
Skills & Education
Engineering
Management
Integrated
Manufacture Innovation
Trade & Exports
Bioresources &
Low Carbon
Industry
Industrial
Carbon Capture
& Storage
SME & Supply
Chain
Development
NEPIC Industry Leadership Team
