Chemical sector faces more factory closures as jobs and sales drop, data finds

The UK’s chemical sector is facing further factory closures as weak demand, job cuts and high energy costs continue to hit the industry, new figures from the Chemical Industries Association (CIA) found. 

Over the last five years, 25 sites have closed, with many firms now warning of even more closures ahead.

The CIA’s latest survey showed that jobs fell in the last three months of 2025, with 38% of companies reporting fewer employees. 

Sales dropped for 37% of businesses, and 87% expected at least a year of weak business.

Steve Elliott, CEO of the CIA, said: “It saddens me to say that these results are totally unsurprising, coming as they do on the back of a near 40% fall in UK chemical production between 2021 and 2024, alongside a similar percentage fall in the sector’s carbon emissions. 

“That’s not coincidence; it’s the consequence of successive government failures to support UK manufacturing. 

“From the undemocratic 2019 political decision to pursue net zero by 2050, regardless of the consequences, to the current drive to reduce carbon in a timeline increasingly out of step with the UK’s key competitors, we are witnessing decarbonisation through deindustrialisation. That’s not thoughtful policy, that’s economic vandalism.”

Elliott added: “The latest performance figures mean it will be very surprising if we do not see more businesses close their doors.”