Recently, the latest quarterly business survey by the Chemical Industries Association (CIA) shows that one-third of UK chemical enterprises saw a decline in sales, production levels and capacity utilization in the second quarter. The association directly attributes this performance to high energy costs and uncertainties in the international economy; meanwhile, the global oversupply has also put pressure on UK chemical enterprises.

Elliott, Chief Executive of the Chemical Industries Association, stated: "Our members have noticed that the global overcapacity in the chemical industry, coupled with intense international competition, as well as industrial policies lacking international competitiveness and input costs, is threatening the future of domestic manufacturing in the UK. Over the past two years, due to investment shifting to more competitive regions, a number of enterprises have announced closures, reorganizations, strategic adjustments or profit warnings."
　　
The survey also indicates that the industry′s outlook for the third quarter and the next 12 months is "gloomy". Although sales are expected to potentially rebound in a year′s time, the number of employees in UK chemical enterprises will continue to decline, suggesting a risk of long-term loss of potential market share. Approximately 70% of UK chemical companies reported that they anticipate further deterioration in labor costs, while nearly 60% expect weakening demand.

Elliott emphasized: "The government′s industrial strategy is good news for the country, but for many enterprises, policy implementation requires ′immediate action′. There is an urgent need to deliver on commitments through emergency measures – including energy cost relief, removal of growth-impeding regulations, and safeguarding the future of thousands of high-skill jobs in areas where the UK is in urgent need of employment."