Reading Material 11Chemical Industry1. Definition of the Chemical IndustryAt the turn of the century there had been little difficulty in defining what constituted the chemical industry since only a very limited range of products was manufactured and these were clearly chemicals, e.g., alkali, sulfuric acid. At present, however, many thousands of chemicals are produced, from raw materials like crude oil through (in some cases) many intermediates to products which may be used directly as consumer goods, or readily converted into them. The difficulty comes in deciding at which point in this sequence the particular operation ceases to be part of the chemical industrys sphere of activities. To consider a specific example to illustrate this dilemma, emulsion paints may contain poly (vuby1 chloride)/poly (viny1 acetate). Clearly, synthesis of viny1 chloride (or acetate) and its polymerization ate chemical activities. However, if formulation and mixing of the paint, including the polymer, is carried out by a branch of the multinational chemical companies which manufactured the ingredients, is this still part of the chemical industry or does it now belong in the decorating industry?It is therefore apparent that, because office diversity of operations and close links on many areas with other industries, there is no simple definition of the chemical industry. Instead each official body which collects and publishes statistics on manufacturing industry will have its definition as to which operations are classified as “the chemical industry“. It is important to bear these in mind when comparing statistical information which is derived from several sources.The major chemical companies are truly multinational and operate their sales and marketing activities in most of the countries of the world, and they also have manufacturing units in a number of countries. This international outlook for operations, or globalization, is a growing trend within chemical industry, with companies expanding their activities either by erecting manufacturing units in other countries or by taking over companies which are already operating there. Individual manufacturing plants have capacities ranging from just a few tons per year in the fine chemicals area to the real giants in the fertilizer and petrochemical sectors which range up to 500000 tonnes. The latter requires enormous capital investment, since a single plant of this size can now cost $250 million! This, coupled with the widespread use of automatic control equipment, helps to explain why the chemical industry is capital-rather than labor-intensive. The chemical industry is very high technology industry which takes full advantage of the latest advances in electronics and engineering. Computers are very widely used for all sorts of applications, from automatic control of chemical plants, to molecular modeling of structures of new compounds, to the control of analytical instruments in the laboratory. 3. Research and Development (R&D) in Chemical Industries In of the main reasons for the rapid growth of the chemical industry in the developed world has been its great commitment to, and investment in research and development (R&D). A typical figure is 5% of sales income, with this figure being almost doubled for the most research intensive sector, pharmaceuticals. It is important to emphasize that we are quoting percentages here not of profits but of sales income, etc, as well. In the past this tremendous investment has paid off well, leading to many useful and valuable products being introduced to the market. Examples include synthetic polymers like nylons and polyesters, and drugs and pesticides. Although the number of new products introduced to the market has declined significantly in recent years and in times of recession the research department is usually one of the first to suffer cutbacks, the commitment to R&D remains at very high level. Likewise the chemical industrys contribution to transport over the years has led to major improvements, Thus development of improved additives like anti-oxidants and viscosity index improves for engine oil has enabled routine servicing intervals to increase from 300 to 6000 to 12000 miles. Research and development work has also resulted in improved lubricating oils and greases, and better brake fluids. Yet again the contribution of automobile polymers and plastics has been very striking with the proportion of the total automobile derived from these materials- dashboard, steering wheel, seat padding and covering etc.-now exceeding 40%. (4) Shelter, leisure and transport. In terms of shelter the contribution of modern synthetic polymers has been substantial. Plastics are tending to replace traditional building materials like wood because they are lighter, maintenance-free (i.e. they are resistant to weathering and do not need painting). Other polymers, e.g. urea-formaldehyde and polyurethanes, are import