UK unveils $639.2 mn support for chemicals, ceramics sectors

The Government unveiled a £350 million Critical Chemicals Resilience Fund aimed at supporting strategically important chemical producers and sites supplying critical inputs to sectors such as food, energy, water and healthcare. A separate £120 million package has

also been announced for the ceramics sector to support capital investment in energy efficiency and decarbonisation projects, alongside operational support for eligible manufacturers facing rising costs.

The funding is intended to help businesses remain competitive, modernise infrastructure and transition energy supplies from gas to electricity as part of the UK’s long-term industrial strategy.

Business Secretary Peter Kyle said: “At a time of global uncertainty it’s never been more important to ensure Britain’s resilience and back the industries our country depends on, and this funding will support thousands of jobs and put businesses on a secure footing for the long term. This is what a strategic state looks like: acting swiftly with targeted support in the national interest and giving certainty to the industries crucial to both our everyday lives and our economic future.”

Chancellor of the Exchequer Rachel Reeves said: “The chemicals and ceramics industries underpin our economic resilience and support skilled jobs across the UK. We have the right economic plan. It includes backing those workers, backing the communities that depend on them, and backing British industry for the long term.”

The Government said the chemicals fund will be developed in partnership with industry representatives and independent experts, with work expected to begin in summer 2026. Ministers also pledged to work with the industry to address energy, carbon reduction and regulatory cost pressures, while exploring possible trade defence measures against unfair foreign trade practices.

Chief Executive of the Chemical Industries Association Steve Elliott welcomed the announcement, saying: “The Government rightly included the chemical industry as a key foundational sector in its Industrial Strategy for the country. Today’s announcement of a £350m fund to be made available to chemical businesses underpinning our critical national infrastructure and wider resilience is therefore a very welcome first step in turning those words into action.”

He added: “Much is needed – both in terms of policy and funding support - to address the industry’s energy, carbon reduction and broader regulatory costs – and the Government’s additional commitment to work in partnership with the industry to tackle those huge competitiveness challenges is also encouraging.”

The ceramics support package will be available to eligible UK manufacturers across subsectors including refractory products, clay building materials, household ceramics and technical ceramics. The Government said the scheme would support industries ranging from housebuilding and advanced manufacturing to defence and aerospace.

CEO of Ceramics UK Rob Flello said: “Ceramics UK is delighted by this landmark decision by the Government which recognises the fundamental role of our sector in the UK economy.”

He further said: “Now, working with our members as the voice of the industry, Ceramics UK looks forward to working closely with Ministers and civil servants in designing and implementing the measures outlined in the Business Secretary’s statement of intent.”

Charlotte Brumpton-Childs, GMB National Secretary, also welcomed the move, stating: “This is a hugely welcome step in the right direction and will be reassurance to workers in our chemicals and ceramics industry that Government is finally listening.”

The Government said applications for the ceramics package are expected to open in summer 2026 after final design work is completed. The measures build on earlier support initiatives, including a £120 million (~$163.2 million) package for Grangemouth chemical production and support for the Ensus bioethanol plant in Teesside.

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ALCHEMPro News Desk (JP)