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How Flanders’ chemical industry sets off a chain reaction of success
In Flanders, we don’t just feel the chemistry, we’ve also got plenty of tangible facts to prove that the region is brewing with chemical business activity:
- Flanders is home to Europe’s largest and the world’s second-largest integrated petrochemical cluster, situated at the Port of Antwerp (source: essenscia, 2018 key figures).
- Belgium and Flanders rank as the world’s number 1 for chemicals and plastics sales per capita, generating an annual turnover of EUR 65.5 billion (source: essenscia, 2018 key figures).
- The chemical industry provides 92,568 direct jobs and 210,000 indirect jobs in Flanders, making it one of the region’s biggest employers (source: essenscia, 2018 key figures).
- Chemistry is innovative business in Flanders, representing 60% of all industrial R&D expenditure (source: essenscia, 2018 key figures).
- 1 out 4 researchers in Belgium’s private sector works in the chemical and life sciences industry (source: essenscia, 2018 key figures).
Did you know that 8 of the world’s top 10 chemical companies operate production sites in Flanders, according to the sector federation essenscia? What’s more, all of the world’s top 10 biopharma companies have key activities in the region. It should therefore come as no surprise that huge amounts have been channeled by foreign firms into Flanders-based activities. To give you an idea, EUR 9 billion in foreign direct investment was recorded in Flanders’ chemical industry between 2010 and 2018 (source: essenscia, 2018 key figures).
Major investments from the past years include large-scale projects initiated by Borealis (Austria), BASF (Germany), Covestro (Germany) Evonik (Germany), INEOS (UK), Kaneka (Japan), Nippon Shokubai (Japan) and more.
Reach out to Flanders’ Welcome Team for the Chemical Sector
If you’re looking to set up or expand your chemical business in Europe, you can count on the tailored assistance of Flanders’ Welcome Team for the Chemical Sector. Consisting of experts from Flanders Investment & Trade, essenscia, Catalisti, VITO and PMV, the team can help you:
Reach out to the Welcome Team via firstname.lastname@example.org.
In addition to being strategically located in the center of Western Europe, Flanders is situated at the heart of the Antwerp-Rotterdam-Rhine-Ruhr Area (ARRRA), Europe’s strongest industrial mega-cluster. What’s more, the region is centrally located within the Western European pipeline network.
Antwerp: Europe’s leading and the world’s 2nd-largest petrochemical cluster
Second only to Houston, the Port of Antwerp (Flanders) is known around the globe for its petrochemical cluster. In addition to extensive and readily available petrochemical storage capacity, Antwerp’s cluster boasts a high level of integration and diversity across the chemical value chain – from raw materials, feedstocks and chemical building blocks to commodities, intermediates and final products. Opportunities for synergies in energy, process integration and logistics reign supreme, offering world-class cost effectiveness.
The numbers tell the rest of the tale, as the port area houses:
‘Sustainable Resources, Materials & Chemistry’ has been identified as one of five key value chains of Flanders Accelerates, the official internationalization strategy for Flanders’ economy. As such, the chemical industry is backed by a strategic partnership between sector federation essenscia and government agency Flanders Investment & Trade (FIT).
The goal is to strengthen and expand the international position of Flanders’ chemical sector through promotion, growth support for start-ups and SMEs, knowledge exchange and more.
The chemical industry has a vital role to play in tackling climate challenges, realizing a circular economy and creating a carbon-smart society. That’s why Catalisti, Flanders’ spearhead cluster for chemistry and plastics, seeks to drive innovation and multidisciplinary partnerships in these high-impact domains with the goal of tackling a massive host of projects focused on sustainability. Your company can join the chemical innovation frenzy, too!
Furthermore, Catalisti is in the driver’s seat of Moonshot, an industrial innovation program that unites citizens, governments and industries in working toward a clear mission: to transform Flanders into a CO2-neutral society by 2050. How? Through the development of marketable innovative and sustainable technologies. To this aim, the government of Flanders invests a total of EUR 400 million spread across various Moonshot projects.
The fact that chemistry is one Flanders’ flagship industries is also reflected in the presence of numerous federations that represent the interests of companies active in (petro)chemicals, polymers, plastics, specialty chemicals and related business fields such as cleantech.
The most prominent ones include:
- essenscia vlaanderen: multisector organization with over hundreds of member companies that represents the numerous activity domains of both the chemical industry and life sciences in Flanders.
- DETIC: the association for producers and distributers of soaps, cosmetics, (laundry) detergents, cleaning and maintenance products, hygienic and toilet articles, household coatings, paints, and adhesives.
- Federplast: the association of producers of rubber and plastic products.
- IVP: the federation of manufacturers and importers of paints and coatings, varnishes, printing inks and decorative coatings.
Flanders’ chemical business and knowledge ecosystem generates numerous collaboration and innovation opportunities for your company. Some major local players and go-to organizations in the field include Catalisti, BlueChem, essenscia and VITO. But the list goes on and on – we’ve gathered the most prominent names below.
To optimally reap the rewards of this thriving ecosystem, various international industry leaders have set up their global or European head plants and R&D centers in Flanders – numerous of which develop sustainable chemical innovation and technology. Examples include the sites of 3M, AGFA, Eastman, ExxonMobil, INEOS, Procter & Gamble, Recticel, Solvay, Soudal and more.
One of Flanders’ four strategic research centers, VITO is an independent and multidisciplinary research organization that specializes in the areas of cleantech and sustainable development. One of its main focus domains is sustainable chemistry, which has its own R&D unit within the organization.
In fact, VITO has a two-fold approach to help boost the chemical industry’s competitiveness as well as its transition towards greater sustainability, efficiency and reuse. Firstly, the research center concentrates on creating novel value chains based on renewable raw materials such as biomass and CO2. Secondly, it focuses on developing sustainable chemical processes. In doing so, VITO works closely with start-ups and established companies as well as policy makers and investment firms.
Located in Antwerp, BlueChem assists growth companies in developing innovations for the future of chemistry. Not only does the incubator lead unique collaborations between the industry, the government and knowledge institutes, it also offers access to infrastructure such as offices and co-working space, meeting rooms and research labs. In addition to a range of services (including business development, IP, legal advice, HR management and financial guidance), BlueChem also offers financial support through the Kickstart Fund.
- The Sustainable Chemistry Network Antwerp (SusChemA) is a UAntwerpen consortium that helps chemical experts improve how natural resources are used to meet the need for chemical products and services. In doing so, it sets up industry collaborations that focus on the development of better, energy-saving and resource-efficient technologies.
- CleanChem is a UGent research group and a gateway for companies active in sustainable chemical technologies seeking to transition from fossil to renewable sources.
- The Sustainable Polymers and Application Research Cluster (SPARC) combines several UHasselt and KU Leuven research groups into a cluster. It seeks to stimulate research and innovation for a sustainable use of polymers and plastics in the society of the future.
- ChemTech is a UGent valorization center for chemical technologies and aims to set up innovative collaborations with the chemical, life sciences and materials industries.
Together, Flanders’ five universities offer over thirty educational tracks relevant to chemical production and innovation, endowing students in the region with the necessary skills and knowhow to offer world-class technical expertise and operational excellence to chemical companies.
In addition, Flanders is a frontrunner when it comes to dual learning, life-long learning and collaboration between the worlds of education and industry. This is all the more evident at dedicated training centers for the chemical, biotech and life sciences industries, such as ACTA, PlastIQ, ViTalent and the Training Lab Kunststoffen (Plastics).
When deciding to establish activities or headquarters in Flanders, your chemical company can reap the rewards of:
- government subsidies and support for investments in R&D and innovation, strategic transformation, ecological efforts, growth and other domains.
- tax incentives to fund a broad range of business activities.
- fiscal options to help you cut labor costs.
- financing opportunities through investment company PMV, the Moonshot program, the Capricorn Sustainable Chemistry Fund, the Innovation Circle and the Innovation Fund.
Flanders offers access to several tax incentives that are particularly relevant to research-intensive sectors like the chemical industry. Examples include:
- the innovation income deduction – up to 85% of a company’s net innovation income can be exempt from corporate tax.
- the R&D investment deduction – 13.5% of the investment value (at once) or 20.5% of the annual depreciation (staggered).
- the R&D payroll tax exemption – 80% of the withholding tax on professional income for researchers and academic personnel.