the chemical products industry is its own best customer

Press Release : July 28, 2020
the chemical products industry is its own best customer

The boundaries of the chemical products industry, then, are somewhat confused. Its main raw materials are the fossil fuels (coal, natural gas, and petroleum), air, water, salt, limestone, sulfur or an equivalent, and some specialized raw materials for special products, such as phosphates and the mineral fluorspar. The chemical industry converts these raw materials into primary, secondary, and tertiary products, a distinction based on the remoteness of the product from the consumer, the primary being remotest. The products are most often end products only as regards the chemical industry itself; a chief characteristic of the chemical industry is that its products nearly always require further processing before reaching the ultimate consumer.

Thus, paradoxically, the chemical products industry is its own best customer. An average chemical product is passed from factory to factory several times before it emerges from the chemical industry into the market.

There are many routes to the same product and many uses for the same product. The largest use for ethylene glycol, for example, is as an automobile antifreeze, but it is also used as a hydraulic brake fluid. Further processing leads to many derivatives that are used as additives in the textile, pharmaceutical, and cosmetic industries; as emulsifiers in the application of insecticides and fungicides; and as demulsifiers for petroleum. The fundamental chemicals, such as chlorine or sulfuric acid, are used in so many ways as to defy a comprehensive listing.

Because of the competitiveness within the chemical products industry and among the chemicals, the chemical industry spends large amounts on research, particularly in the highly industrialized countries. The percentage of revenue spent on research varies from one branch to another; companies specializing in large-volume products that have been widely used for many years spend less, whereas competition in the newer fields can be met only by intensive research efforts.

Notes to editors

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