Huddersfield chemical company to reap rewards of industry growth

10/11/2009

A Huddersfield chemical company will look to launch a new Chemical Management Services scheme after industry figures showed a 30 per cent revenue increase for CMS providers in the last two years.

Yorkshire Chemical Focus Limited (YCF), funded by Yorkshire Forward, has been actively promoting awareness of the scheme since 2008, and is now looking at implementing a pilot CMS scheme following the unveiling of the impressive figures, which cover the period from 2006 to 2008.

The report - published by the Chemical Strategies Partnership - shows that as well as the 30 per cent increase for providers, customers have significantly reduced their chemical use, waste and emissions. Projections also indicate the global CMS market will more than triple in the next five to 10 years. The estimated current market globally is worth approximately $1.3 to $1.6 billion.

Ralph Gerrard, Business Development Manager at YCF commented: “We see this as a tremendous opportunity to provide sustained value for industry in the UK.
“Under the CMS concept, chemical suppliers are developing their business models to focus on providing high value services rather than more volume. CMS providers partner with customers to manage their entire chemical lifecycle and create savings by leveraging purchases, improving inventory management, reducing chemical use and waste, and enhancing IT infrastructure.”

The report show that not only are CMS providers showing increased business and revenue, but customers have also realised hard savings as high as 40-50 per cent in the first year of their CMS programme, and continue to see savings five to 10 years into their programme.

YCF is currently exploring various industry sectors with an eye towards funding a pilot CMS implementation.

Jim Farmery, Assistant Director for Business at Yorkshire Forward, said:  “Chemicals make up the largest manufacturing sector in Yorkshire, and our region contributes 10 per cent to the UK chemical sector overall. There are over 400 chemical manufacturing sites here, with a well-developed supply chain of supporting industries. The chemicals sector in Yorkshire & Humber has an annual turnover of over £8bn and employs 24,000 people.

“Predictions of such a large market increase for the CMS industry in the next ten years are positive not only for the industry as a whole but particularly in the region, where Yorkshire Chemical Focus will no doubt go from strength to strength.”

For further information or to arrange an interview, please contact Dan Murphy, Press Manager on 0113 3949904 or email daniel.murphy@yorkshire-forward.com