How large are the world’s chemical companies?
It can be seen (Table 5) that the head offices are spread around the world and reflect not only the high growth of chemical markets in the Middle East and in Asia but also the desire of oil producers to participate in making chemicals.
The siting of many of the world’s major chemical companies may seem random or puzzling. In fact there are very good reasons for the choice of sites, reasons which also reflect the industrial and consumer landscape of the day.
At first sight it seems strange that what are currently the fourth and seventh largest chemical companies in the world, Dow and DuPont , are situated in two small US cities, Midland, Michigan and Wilmington, Delaware. However, the reason that Henry Dow founded his company at Midland in 1897 was because the salt deposits in the area contain particularly high concentrations of bromide ions, and Dow had patented two methods for obtaining elemental bromine from these deposits.
Access to the sea for transport remains a huge influence. Refineries and chemical companies have been built on the coast of many countries, whether they have their own indigenous oil and gas or whether they import it.
Many oil producing countries made a strategic decision not just to sell the crude oil, but also to participate in the higher added value markets downstream. They began to invest in both refineries and petrochemical plants close to the oil fields in their own countries (major production facilities now exist, for example, in Saudi Arabia). However, these are far away from the actual markets for the refined oils and chemicals. As it is cheaper to transport crude oil than to distribute many of its end products around the globe, there is now a trend for oil-producing countries to invest in more distant refineries and plants, closer to the consumer market. Meanwhile, US and European companies are investing heavily in vast refineries and chemical plants in emerging countries, in collaboration with the local chemical companies.
find new products which enhance the quality of life
adapt rapidly to changes in consumer demand around the worldproduce and sell chemicals in quantities that achieve economies of scale
select locations for bulk chemical companies so that they can access the cheapest raw materials and energy
improve existing processes for making chemicals in order to use less capital expenditure and save raw materials
find methods of manufacturing that use and dispose of chemicals which do not harm the environment
locate speciality chemical companies near good centres of R&D within both the commercial and university sectors.
The chemical and pharmaceutical industry is fundamental to modern society. With an immense variety of products, from vital medicines and foods, the construction of buildings, to transport and leisure, the industry truly does have an impact on virtually every aspect of our daily lives.
The chemical industry represents one of the largest and most diverse industry sectors in the UK. Companies in the sector, big and small, play a leading role in all stages of the supply chain. This is done by utilising a myriad of technologies and supplying a diverse range of mission critical minerals and innovative products for industrial and consumer needs.