Belgium
[Last updated July 2024]
Key facts
Turnover
€75.1 billion
Capital Spending
€3.9 billion
Direct Employees
99,658
Number of companies
> 720
R&D Investment
€6.3 billion
National Contact
essenscia
Yves Verschueren
Managing Director
yverschueren@essenscia.be
CHEMICAL INDUSTRY SNAPSHOT
The beating of the Belgian industry
The chemical, plastics and life sciences industry is the industrial pillar of the Belgian economy. With a turnover of 75 billion euros and nearly 100,000 direct jobs, the sector is one of the most important industries in Belgium. It accounts for one third of all Belgian exports, 40% of the industrial value-added and two thirds of all private investment in research and development (R&D).
Though Belgium, with 11.7 million inhabitants, only represents 2.6% of Europe’s population, it’s the second most important exporting country for chemicals and pharmaceuticals within the European Union, with a share of 12%, and even the fifth in the world.
On a per capita basis Belgium is the world champion in the sales of chemicals and plastics and a European leader in clinical trials and new medicine development. As the number one sector in Belgium for export and innovation, the chemical, plastics and life sciences industry contributes significantly to the economic growth and prosperity of the country.
Forming a global hub
Belgium is home to the largest integrated chemical cluster in Europe and one of the largest and most specialized in the world. Delivering the essential building blocks to all other industrial sectors, the chemical industry in Belgium occupies a central position as a world-class chemicals hub in a globalised world. More than 75% of employment in the Belgian industry is by foreign-based parent companies.
Export champion
Chemicals, plastics and pharmaceuticals are Belgium’s top export product, accounting for 33% of total Belgian exports. Around 90% of the production is exported, creating a positive trade balance. Neighbouring countries, and particularly Germany, are the main trading partners. But exports to the United States, to Japan and to emerging countries have significantly risen.
Clustering for efficiency
Belgium hosts a world-class chemical cluster at the port of Antwerp-Bruges, where several of the world’s top chemical companies have major production sites. Lying in the centre of the Western European pipeline network, Antwerp is directly connected with all the major sub-clusters in Belgium and into the Ruhr district of Germany and Delta region in the Netherlands.
Expertise in life sciences
Life sciences companies are mainly clustered in the Walloon-Brabant province east of Brussels, near to universities, and around Antwerp. Ghent is home to a biotech valley which brings together world-class expertise in the field of medical, industrial and agricultural biotechnology. Together they make Belgium the health & biotech valley of Europe, with industry-leading expertise in R&D, biomanufacturing and distribution. Plastic and rubber processing companies are spread across the country.
Investing in research
The sector spent €6.3 billion on R&D 2023. About 70% of R&D expenditure is in-house. The balance, in the form of outsourced research, reflects close collaboration between companies and technology centres for boosting innovation. Chemicals and life sciences are the largest private investor in R&D, accounting for 65% of R&D spending by all manufacturing companies. During the past decade, R&D spent by the chemical and life sciences industry more than doubled, mainly driven by life sciences companies. However, industry spending on sustainable bio-based and green chemistry is increasing.
HOW ARE WE DOING?
Strengths
- A unique integrated cluster of chemical companies covering the whole value chain, forming the largest integrated chemical cluster in Europe and one of the largest and most specialized in the world
- Attractive and strategic investment location at the heart of industrial Europe and the Western European pipeline network
- Easy access to raw materials and export markets via important seaports – Antwerp-Bruges and North Sea Port Ghent– and high quality air cargo for pharmaceuticals from Brussels and Liège airport.
- Competitive logistical infrastructure with tailor-made tank storage terminals and distribution platforms
- Operational excellence and high safety standards
- World-class energy efficiency
- Highly-skilled workforce ensuring world-class technical expertise for many key products
- A broad range of state-of-the-art sectoral competence centers to train, reskill and upskill employees, students and jobseekers
- Strong collaboration with universities, with, for example, different Chairs on Process Safety and a specific spearhead cluster for innovation in chemistry and plastics: Catalisti
- Excellence in industrial and academic research and a unique academic and industrial collaborative network: chemistry, pharma and biotech represent 40% of all Belgian patents at the European Patent Office, being the highest share in the world
- High degree of specialization in both plastic recycling and bioplastic technologies, making Belgium the European champion in the recycling of plastics and plastic packaging with recycling rates way above the European average
- A wide choice of science parks with incubation and innovation centres, like BlueChem, the incubator for sustainable chemistry in Antwerp
- Unique network between companies, authorities, and customers to implement REACH and CLP
- Strategic sector in the economic and industrial policy of the Belgian authorities
Challenges
- High energy costs in Europe compared to the rest of the world
- Relatively high labour costs
- Ageing workforce and quest for new talent
OUR CONTRIBUTION TO A COMPETITIVE EUROPE
Contributing to a sustainable future
Belgium is at the forefront of sustainable chemistry and life sciences, in close collaboration with universities, research centers and the authorities.
The government of Flanders, the northern part of Belgium, prioritises cluster policy and the valorisation of research and has created innovation hubs with the ambition of becoming a leading EU region.
Catalisti, the spearhead cluster for innovation in chemicals & plastics, has been launched by essenscia and involves more than 100 companies and all Flemish universities, with the support of the Flemish government. Its mission is to accelerate the transition towards sustainability by promoting open innovation, identifying, stimulating and catalysing innovations. It focuses on renewable chemicals, putting waste and side streams to use, intensifying processes and advancing sustainable products. To that end, the spearhead cluster supports small, medium and large enterprises and knowledge institutions in defining, setting up and implementing innovation projects.
Catalisti operates from BlueChem, the first incubator for sustainable chemistry in the Benelux, and coordinates the Moonshot-initiative: a long term programme for groundbreaking climate innovations to make the industry CO2 circular and low carbon.
In Wallonia, the southern part of Belgium, the Walloon government focuses on industrial policy, including sustainable chemistry and biotechnology. GreenWin, its sustainable chemistry cluster brings together small and large enterprises, universities, research centres, training organizations and communities. GreenWin is organised around the life cycle of materials: development of sustainable products and materials; sustainable integration and implementation of materials and treatment and making best use of waste and waste-water. Wallonia was designated the EU executive among six “model demonstrator regions” to reinforce its strategy to lead in sustainable chemical production.
A second cluster, BioWin, brings together more than 100 health biotechnology and medical technology companies. Another cluster is PlastiWin, the Walloon business cluster for the plastics industry.
The sector is also strongly involved in Circular Flanders and Circular Wallonia, both initiatives to accelerate the transition towards a circular economy.