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Methodological Centre for Vocational Education and Training
Study of Fuel, Chemicals, Rubber, Plastic and Mineral Products Industry
Research report on skill needs
Vilnius, 2008
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STUDY OF FUEL, CHEMICALS, RUBBER, PLASTIC AND MINERAL PRODUCTS INDUSTRY
Experts: Giedr÷ Beleckien÷, Candy Murphy, Vincentas Dienys, Giedrius Mažūnaitis, Bronislava Kaminskien÷, Vitalija Motiekaitien÷, Albertas Šlekys, Leonas Pašakarnis, Gintaras Gav÷nas, Neringa Miniotien÷, Violeta Averjanovien÷, Lina Vaitkut÷, Gintautas Bužinskas, Loreta Račelien÷, Laima Teliukien÷, Vaidas Daujotas, Almina Pačešiūnien÷, Rūta Karvelyt÷, Vita Povilonyt÷ We are sincerely grateful to enterprises of the sector and all others who helped us in this activity. We hope that the information presented will be helpful while planning employees training and performing other tasks.
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SUMMARY
The sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products is defined according to
activities of the international NACE classifier. It consists of two subsectors: Chemical industry (activities 23,
24, 25.1 and 25.2) and Production of other non-metal mineral products (activities 26.1, 26.2, 26.3, 26.4, 26.5,
26.6, 26.7 and 26.8).
International trends
The sector of production of chemical, rubber and plastic products in Europe is very important economically
and in terms of employment and its impact on other sectors. According to Eurostat, in 2003 the share of the
sector in the overall breakdown of the added value created by industry was 14%. In 2002 this sector
employed 10% of the total industrial labour force. It must be pointed out that the number of employees in the
sector is constantly decreasing. The majority of employees are men. The chemical sector is a knowledge-
based industry. Therefore, it employs more qualified staff with university degrees than in other processing
industries. In 2003 labour force efficiency in the sector of chemical, rubber and plastic products exceeded the
overall average labour force efficiency by more than one third.
The chemical industry and production of other non-metal mineral products have certain similarities and
differences. For example, in both fields there is growing concern about the impact of activities on the
environment and health. On the other hand, implementation and commercial application of new technology is
more characteristic of the chemical industry. Production of other non-metal mineral products is more related
with production of conventional products such as glass and cement.
Many economic areas (e.g. agriculture, textile, construction) use products of the chemical sector. Therefore,
its development is largely dependent on the general situation in the economy. The latter has impact on the
demand of chemical products in other industries and on the consumer market. Transport and energy
activities are also important for development of the sector in question. Raw materials are supplied to large
chemical factories in large quantities, which requires good communication by highways, railway, water
transport or pipelines. Energy accounts for a large share of chemical production costs. Oil and gas in
production of many chemicals are used as raw materials. Therefore, increase in energy prices has a
negative impact on development of the chemical sector.
Work conditions in the chemical sector are rather hard. Chemical production is an uninterrupted process,
which is why shifts with breaks, work at weekends and during the night are a frequent case. The sector
involves work with harmful substances, which is why even observing safety at work requirements, the
indicator of non-fatal accidents in this activity is rather high.
Growing competition, added costs and stricter requirements have had an impact on the sector viability. For
difficulties related to energy supply and transport services many companies transpose production beyond the
EU, e.g. to Asia. This reduces the number of jobs and has negative influence on customer relations. On the
other hand, the number of local Asian factories has recently increased a lot. They often implement the latest
technologies which allow for maximum increase of the production scale. This reduces export opportunities
and profit margins for EU manufacturers. Slowing down of growth of the chemical sector has also been
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influenced by late use of biotechnology which will define changes in the structure and produce of the
chemical industry in Europe. Main biotechnology areas:
• red technologies related to biology and anthropology, which is why we will not elaborate on them;
• white biotechnologies: industrial and environment-friendly products and processes such as biological
treatment, biological environment restoration, environmental and industrial diagnostics, water and
waste water treatment and processing;
• green biotechnologies: veterinary health care, biological pesticides, agricultural plants, food
technologies and processing;
• services, e.g. commissioned studies, tailored production, bioinformatics and functional genomics.
The biotechnology sector will play a very important role and have much influence on the future of the
chemical industry due to intensity of research activities. About a third of the biotechnology sector income is
allocated to development of innovative processes and products. So far the biotechnology industry in Europe
has not been large – the labour force of the biotechnology sector is still 3% of the chemical industry labour
force.
Energy consumption will in the future depend on further structural changes in the chemical sector,
investments into new process technologies and the public policy of emission reduction. Dependence of this
industry on fuel import is likely to decrease primarily due to use of biomass and waste as energy sources.
For the European chemical industry to thrive, it is necessary to create and implement clear general strategies
which would help to avoid the danger. It is particularly important to promote research, development and
innovations in chemical technology. This sector can compete only by investing in production which have a
large growth potential, such as pharmaceutical production and biotechnology. Finally, a crucial prerequisite
of the wellbeing of the chemical sector is investment in staff training and professional development of the
labour force.
Biotechnology Sector in Lithuania
The biotechnology sector in Lithuania covers two important research and development and industry
directions: pharmaceutical biotechnology, products for molecular biology and diagnostics and
industrial biotechnology and agrobiotechnology. The biopharmaceutical subsector belonging to the “red”
biotechnology is the best developed in the country. During the recent years industrial biotechnology,
particularly biofuel industry, is developing very rapidly.
The highest concentration of biotechnology educational and research institutions and business entities is in
Vilnius. There are many of them concentrated in Kaunas County. According to the 2007 survey, the sector in
question employed 704 employees, of whom 427 were carrying out research. The majority of the employed
in the sector (about 77%) have a university or higher non-university degree. Shares of men and women are
similar. The sector is dominated by employees aged 24 to 35 years. Substantial state subsidies and private
investments have determined rather good working conditions in the sector. Staff security is higher than the
average in the country. In Lithuania the scale of sales of biotechnology products within the last 5 years has
been rapidly increasing (on average by 22% every year) and the efficiency growth pace reached the average
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of 8% per year. The sector is expected to continue rapid development in the future. This will be influenced by
growth of economically strong enterprises having modern equipment, skilled staff and research units,
strengthening of cooperation between research and business institutions and formation of the technical and
instrumental facilities.
At present the supply of biotechnology specialists does not live up to the demand. The biggest lack is
perceived among biochemists, molecular biologists and geneticists. Moreover, there is also lack of
bioinformation specialists, chemists and bioengineers. The demand for lower qualification specialists such as
laboratory staff, technicians and quality control staff is also expected to increase. Specialists mostly lack
practical skills, especially of work with modern technologies. Emphasis is also placed on the lack of
knowledge of mathematics, physics and chemistry and the inability of young people to apply their knowledge
in specific working situations.
Manufacture of Fuel, Chemicals, Rubber, Plastic and Mineral Products: General Description
Enterprises. In 2007 there were 1,005 enterprises in the sector the majority of them being small (up to 9
employees). The number of enterprises in subsectors of Manufacture of chemical and other non-metal
mineral products is about the same. The highest concentration of enterprises is in Vilnius and Kaunas
Counties. Enterprises of the Lithuanian capital are the majority. In the future, presumably enterprises will
scale up and production outsourcing will increase.
Employees. According to the data of 2007, the sector employs almost 29 thousand employees, of whom the
majority (about 63%) – in chemical industry. Within five years (2003-2007) the number of the employed in
the sector slightly increased. The majority of employees are men. The age of the majority of the employed is
between 30 and 49 years. The share of part-time employees in the total number of the employed in the
sector is 8%. By groups of jobs the most numerous group is that of qualified workers. In 2007 work permits
for work at the sector enterprises were issued to 308 citizens of other countries, about twice as many as in
2005. Of them 89% are employees in the chemical industry subsector. Among the foreigners having
obtained the work permit the majority were qualified workers.
Main Features of Development. Manufacture of fuel, chemicals, rubber, plastic and mineral products (the
latter being closely related to the development of the construction sector) during the period in question has
been developing the fastest among processing industries. The sector is dominated by oil refining creating the
largest income in the chemical industry. The contribution of the fertiliser and plastic production is
continuously growing. In the structure of the Lithuanian chemical industry a large share is taken by basic
chemicals. The share of special chemicals, pharmaceutical products, cosmetics and household chemical
products is very small. Western Europe demonstrates opposite trends. On the other hand, rapid growth of
some enterprises and development of export markets prove that Lithuania has a potential to develop high
added-value chemical or biotechnology industry.
Performance Indicators. The sector is characterised by high efficiency nationally, constantly increasing
turnover and adequate competitiveness on the international market. The majority of the sector enterprises
export their products to other countries. Salaries of employees are among the highest in the national
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economy. The sector enterprises create about 6% of the total added value. Similar trends will hopefully
continue during next several years.
Technologies. The majority of enterprises of chemical industry and other non-metal mineral products use
modern information technology. The most popular technologies include e-banking, computerised production
planning and accounting and online order acceptance. In the future in chemical industry implementation of
computerised production planning and accounting systems will be in greater demand and in Manufacture of
other non-metal mineral products – online order acceptance. The most used technologies in both sectors
include modern technical equipment and ISO standards. The latter dominate also among innovations to be
implemented. Implementation of modern technologies is expected to have no practical influence on the
number of employees. It must be pointed out that modernisation of the chemical industry is more intensive as
compared with manufacture of other non-metal mineral products.
Development Trends. Development prospects of the sector are associated with large financial flows
generated by enterprises of the sector which can be used for production development and research; with
integration into the global market (e.g. manufacture of fertilisers and biotechnologies in industry); with
development of modern technologies and cooperation of business and research organisations. Development
of manufacture of fuel, chemicals, rubber, plastic and mineral products will in the future be influenced by the
process of scaling up of companies, tightening EU requirements to quality and scale of foreign capital. The
following are the key hindrances to business: tax system and lack of employees. Threats are associated with
the increasing competition from Asian countries, growth of prices of raw materials and labour force costs
(expected increase) and qualification.
Key factors which will have influence on the sector development in the future:
• tightening of EU environmental and sector-specific requirements;
• EU production transposition to Asian countries;
• Structure of the Lithuanian chemical industry (dominating production of basic chemicals);
• limited national investment;
• high costs of new and efficient technologies;
• increase in costs of raw materials and the labour force;
• increased demand for highly qualified employees.
Demand for Employees. Turnover of employees in chemical industry and production of other non-metal
mineral products is average and reaches 24%. It is the highest among other workers where the majority are
auxiliary packing, sorting, loading and other workers. Normally they lack responsibility and motivation and
have bad habits. The majority of the sector enterprises plan to accept employees within the following 2
years. Due to increase of production scale, development on foreign markets and level of investment the
number of the employed is expected to slightly increase in all groups of occupations.
In 2003-2006 the number of the unemployed registered with the stock exchange decreased and the supply
of vacancies increased. The lack of employees is among the highest among processing industries. The
sector primarily lacks qualified workers. This can be explained by the fact that this group is the most
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numerous and is characterised by high annual turnover of employees. The highest supply of vacancies is for
operators of industrial machines and equipment. There is also lack of production specialists, electricians and
metalworkers. Among specialists there is lack of mechanical engineers and marketing, supply and sales
(domestic or foreign market) specialists. In the chemical industry subsector there are many vacancies for
chemists and chemical process technicians.
Changes in Skills. Production modernisation has impact on changes in skills. Manufacture of fuel, chemicals,
rubber, plastic and mineral products will be dominated by the demand for qualified employees knowing
foreign languages and able to use modern information technologies. At present the labour force qualification
is not adequate for the sector needs: there is lack of knowledge of foreign languages and skills in
maintenance and repairs of machines and equipment, production process management, work planning and
organisation and quality management. Employees especially lack the ability to apply knowledge they have in
practice, responsibility and practical experience. The lack of skills is largely associated with problems of the
training/education curriculum and teacher qualifications as well as insufficient cooperation between
educational and industrial enterprises.
Supply of Employees. Labour force problems in the group of qualified workers are attributable both to the
number of people and their qualification. It must be pointed out that the above problems are already being
addressed. For example, at present draft standards for vocational training of the chemical production
operator, oil products operator, chemical analysis laboratory specialist and oil refining technical equipment
operator (www.pmmc.lt) are being drafted which will help to improve the supply of initial vocational education
and training programmes focusing mainly on acquisition of the sector competences. The lack of specialists in
the sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products is more vividly manifested
in the lack of skills, i.e. the qualification of employees is inadequate to meet job requirements and not in the
number of people.
Recommendations
• to create an environment promoting cooperation between educational and business institutions which
would be attractive for foreign investors;
• to improve the supply of qualified workers: (1) pursuant to standards of vocational training of the
chemical production operator, oil products operator, chemical analysis laboratory specialist and oil
refining technical equipment operator to draft initial vocational education and training programmes and
practical education and training basis matching the programmes, to improve professional qualification of
teachers providing more knowledge about technologies used in the sector and form trainee groups; (2)
to improve the planning of acceptance to higher and vocational training schools by increasing the
number of students in initial vocational education and training. One of possible tools is to implement
gradual training where after acquiring a lower-level qualification and work experience conditions are
created for acquisition of higher-level education;
• to improve training of specialists at higher schools: (1) to update curricula according to the identified
needs for skills focusing more on acquisition of knowledge in sciences (mathematics, physics,
chemistry); (2) to change traditional ways of training replacing them with modern teaching methodologies
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helping to learn how to use knowledge in solving practical tasks; (3) to upgrade research and
development facilities providing research laboratories with modern equipment; (4) to develop practical
training of specialists in cooperation with the sector enterprises;
• to enhance cooperation between employers and training providers; (1) to organise joint meetings of
training/education providers and the sector enterprises and career days, to develop practical training at
the sector enterprises, at the same time drafting training/educational programmes, to create conditions
for the sector employers to participate in management of vocational schools, to carry out joint research
to identify the needs for training/education, at the same time developing qualification of teachers; (2) to
improve information of the sector enterprises and training providers by providing targeted information
about employee training and changes on the market of chemical industry and production of other non-
metal mineral products.
Structure of the Study. The study consists of 7 chapters. The first one gives a brief overview of the study
goals and concepts and methodology of social research. It also covers the structure of the sector of
Manufacture of fuel, chemicals, rubber, plastic and mineral products. The second chapter is devoted to the
overview of overall international development trends in the sector. The third one discusses development of
the biotechnology sector in Lithuania. The forth and the fifth chapters are devoted to analysis of the key
performance indicators of the sector and evaluation of the demand for employees. The forth chapter defines
indicators based on a set of statistical data compiled specifically for the study and information available and
the fifth one analyses data of sociological research. The sixth chapter evaluates the supply of employees,
and the seventh provides recommendations. The latter are compiled based on all information available to
reduce the gap between the demand for employees and supply in the chemical industry and the sector of
production of other non-metal mineral products.
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TABLE OF CONTENTS
1. RESEARCH METHODOLOGY.........................................................................................................................................................10
1.1. Introduction.................................................................................................................................................................................10 1.2. Authors of the Study...................................................................................................................................................................10 1.3. Goal of the Study........................................................................................................................................................................10 1.4. Methodology...............................................................................................................................................................................10 1.5. Definition of the Sector ...............................................................................................................................................................10 1.6. Sociological Survey of Sector Enterprises .................................................................................................................................11
2. INTERNATIONAL TRENDS IN THE MANUFACTURE OF CHEMICALS, RUBBER, AND PLASTIC PRODUCTS.......................12
2.1. Introduction.................................................................................................................................................................................12 2.2. Definition of the Manufacture of Chemicals, Rubber, and Plastics ............................................................................................12 2.3. Structure of Chemicals, Rubber, and Plastic Products Manufacture in Europe .........................................................................13 2.4. Relationship between the Chemical Industry and other Sectors................................................................................................15 2.5. Employment in the Chemicals, Rubber, and Plastics Products Sector ......................................................................................17 2.6. Recent developments in the Manufacturing of Chemicals, Rubber, and Plastic Products Sector .............................................19 2.7. Likely Developments in the Chemicals, Rubber and Plastics Products Sector..........................................................................22 2.8. Factors Influencing Growth ........................................................................................................................................................25 2.9. Future Outlook for Employment, Education, Skills and Training in the Chemicals Sector .........................................................26 2.10. Summary ..................................................................................................................................................................................30
3. BIOTECHNOLOGY SECTOR IN LITHUANIA ..................................................................................................................................31
3.1. Introduction.................................................................................................................................................................................31 3.2. Definition of the Biotechnology Sector .......................................................................................................................................31 3.3. Links within the Sector and with Other Economic Sectors .........................................................................................................31 3.4. Sector Development...................................................................................................................................................................32 3.5. Sector Prospects ........................................................................................................................................................................33 3.6. Influence of the Sector Development on Employment and Training ..........................................................................................33 3.7. Summary ....................................................................................................................................................................................34
4. STATISTICAL CHARACTERISTICS OF THE MANUFACTURE OF FUEL, CHEMICALS, RUBBER, PLASTIC AND MINERAL PRODUCTS SECTOR...........................................................................................................................................................................36
4.1. Introduction.................................................................................................................................................................................36 4.2. Briefly about Manufacture of Fuel, Chemicals, Rubber, Plastic and Mineral Products ..............................................................36 4.3. Enterprises .................................................................................................................................................................................38 4.4. Employment in the Sector ..........................................................................................................................................................40 4.5. Performance Indicators ..............................................................................................................................................................42 4.5. Development Trends ..................................................................................................................................................................44 4.7. Summary ....................................................................................................................................................................................44
5. CHARACTERISTICS OF THE MANUFACTURE OF FUEL, CHEMICALS, RUBBER, PLASTIC AND MINERAL PRODUCTS SECTOR BASED ON SURVEY FINDINGS..........................................................................................................................................46
5.1. Introduction.................................................................................................................................................................................46 5.2. Performance Indicators ..............................................................................................................................................................46 5.3. Employees..................................................................................................................................................................................48 5.4. Forecasts of Demand for Employees in the Future....................................................................................................................51 5.5. Summary ....................................................................................................................................................................................53
6. SUPPLY OF EMPLOYEES...............................................................................................................................................................55
6.1. Introduction.................................................................................................................................................................................55 6.2. Education and Job Groups.........................................................................................................................................................55 6.3. Supply of Employees by Areas of Education and Level of Education........................................................................................57 6.4. Supply of Employees in the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and Mineral Products ........................59 6.4.1. Supply of Skilled Workers in CS..............................................................................................................................................59 6.4.2. Supply of Specialists and Technicians for the CS Sector .......................................................................................................60 6.5. Summary ....................................................................................................................................................................................61
7. RECOMMENDATIONS .....................................................................................................................................................................63
REFERENCES ......................................................................................................................................................................................65
ANNEX 1 ...............................................................................................................................................................................................67
ANNEX 2 ...............................................................................................................................................................................................69
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1. RESEARCH METHODOLOGY
1.1. Introduction
Starting from 2005 the Centre for Vocational Education and Training is implementing the project
Development of the National System of Vocational Education and Training Standards. Its goal is to develop
the national system of standards of vocational education and training which would help to increase adequacy
between global needs for training and performance and to improve conditions for life-long learning. One of
the main project objectives is to study 6 economic sectors in order to evaluate development prospects of a
specific sector and the impact thereof on the number of employees and training needs. The project is of
national importance and is carried out using the funds of the European Social Fund.
1.2. Authors of the Study
The study was carried out by experts representing various Lithuanian institutions (education, research,
statistics, business, etc.). Specialists from Ireland having experience in conducting similar studies were also
involved.
1.3. Goal of the Study
The main of this study is based on the analysis of development trends of the sector of manufacture of fuel,
chemicals, rubber, plastic and mineral products in Lithuania and other countries, to evaluate education and
training needs for five years and provide recommendations to improve the match between the supply and
demand of the labour force in the sector.
1.4. Methodology
A unified methodology drafted in 1999 together with Irish experts is used for sector studies. Study of the
sector of manufacture of fuel, chemicals, rubber, plastic and mineral products covers the following stages:
1. Overview of available information sources in Lithuania and other countries about chemical industry
or related areas and analysis of official statistics on the sector;
2. Survey of sector enterprises using the methods of interviews and questionnaire survey by mail;
3. Analysis of all information and identification of change factors in the sector;
4. Forecasting employment in the sector;
5. Evaluation of training needs required for meeting the needs of the sector for five years.
1.5. Definition of the Sector
The sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products is defined according to
activities of the international NACE classifier (Fig. 1.1). Its definition is specified together with Lithuanian and
EU experts. This ensures an opportunity for comparing results of the study at the international level.
By definition the sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products consists of
two subsectors: chemical industry (hereinafter referred to as the CP) and production of other non-metal
mineral products (hereinafter referred to as KT).
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Fig. 1.1. Composition of the sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products according to activities of
the international NACE classifier.
1.6. Sociological Survey of Sector Enterprises
The sample of mail survey was compiled based on the data of the Register of Legal Entities and taking
account of the dominating kind of economic activity (according to the statistical classifier NACE of kinds of
economic activities of the European Community) and the size of the enterprise. All in all 1,005 enterprises
were surveyed, of which 506 belong to the CP sector and 499 – to the KT sector. All participants of the mail
survey were asked to return the questionnaires filled in after a few weeks. After sending out questionnaires,
after some time respondents were called on the phone reminding them to return the questionnaire. It helped
to ensure the adequate return level.
Interviews were carried out with respondents of enterprises leading in the sector of Manufacture of fuel,
chemicals, rubber, plastic and mineral products. 10 sector enterprises took part in the interviews. Information
obtained was used for evaluation of training needs.
Sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products (CS)
Chemical industry (CP) Production of other non-metal mineral products (KT)
Manufacture of glass and glass products (26.1) Manufacture of non-refractory ceramic goods other than for construction purposes; manufacture of refractory ceramic products (26.2) Manufacture of ceramic tiles and flags (26.3) Manufacture of bricks, tiles and construction products, in baked clay (26.4) Manufacture of cement, lime and plaster (26.5) Manufacture of articles of concrete, plaster and cement (26.6) Cutting, shaping and finishing of stone (26.7) Manufacture of other non-metallic mineral products (26.8)
Manufacture of coke, refined petroleum products and nuclear fuel (23)
Manufacture of chemicals and chemical products (24)
Manufacture of rubber products (25.1)
Manufacture of plastic products (25.2)
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2. INTERNATIONAL TRENDS IN THE MANUFACTURE OF CHEMICALS, RUBBER, AND PLASTIC
PRODUCTS
2.1. Introduction
The manufacture of chemicals, rubber, and plastic products is an important sector for the EU. The EU-25
chemicals, rubber and plastics sector accounted for 14.3% of industrial value added in 2003 and 10.1% of the
industrial workforce in 2002 (Eurostat, 2006). Pharmaceuticals accounted for 1.3% of value-added in the non-
financial business sector as a whole, and 0.5% in terms of the numbers employed (Eurostat, 2005).
The sector as a whole has driven many significant changes in society. The replacement of traditional
materials, such as metals, wood and natural fibres with synthetic polymers and composite materials has
revolutionized the way that a variety of products are made, as well as the performance, durability and flexibility
of such products. However, employment in the sector is in decline and the sector is faced with a number of
threats. The low skills base evident in the sector, coupled with new health and safety regulations, rising costs,
increased competition and lack of investment in R&D have resulted in difficulties for the sector.
This paper takes the following structure. Firstly, the sector is defined and the overall position and structure of
the sector is described. The relationship between the sector and other sectors is then summarized. The
current employment situation within the sector in Europe including typical working conditions is outlined, before
assessing both recent economic developments in the sector and likely future development. Factors likely to
influence growth in the sector are analysed and finally, the future outlook for the chemicals sector, with regard
to employment trends, education needs, skills and training are examined.
2.2. Definition of the Manufacture of Chemicals, Rubber, and Plastics
The sector as defined for the purposes of this paper comprises of two NACE (The Statistical Classification of
Economic Activities in the European Community) Divisions (24 and 25).
A number of similarities exist between the two main subsectors of Fuel, Chemicals, Rubber, Plastic and
Mineral Products (i.e. the Chemicals Industry and the Manufacture of Other Non-Metallic Mineral Products).
Both face growing concerns about the environmental and health impacts of their activities. However, while
the Chemicals sub-sector is in the main highly dependent on the successful development and commercial
exploitation of new technological developments and in the main is highly capital intensive, the Manufacture
of other Non-Metallic Mineral Products sub-sector is largely involved in the production of traditional products
such as glass and cement.
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These differences are reflected in different occupational structure of firms within the two sub-sectors and
related activities. For example, firms at the forefront of the medical products sector have large R&D and
marketing departments and over half their employees have third and fourth level qualifications. For them,
technology transfer capacity is vitally important while the production of bulk chemicals requires a different
and more traditional Manufacture employment structure.
2.3. Structure of Chemicals, Rubber, and Plastic Products Manufacture in Europe
The EU-25 chemicals, rubber and plastic sector accounted for 14 % of industrial value added in 2002 and
10% of the industrial workforce in 2001. Value-added for the EU-25 for the sector was 244bn in 2002, with
chemicals accounting for just over 70 %, with plastics and rubber making up the remaining 30 % (Eurostat,
2006b). As can be seen in Table 2.2 below, Germany was the lead producer of chemicals, rubber and
plastics, with a share of 25 % of value-added within the EU. The United Kingdom and France also perform
well in terms of value-added (15 % each).
Table 2.1. Manufacture of Chemicals, Rubber and Plastic Products, EU-25, 2002
Chemical and chemical products, 2002 Rubber and plastic products, 2002
Value added (Eur mio)
Number of persons
employed (’000s)
Average personnel costs (€ per employee)
Value added (Eur mio)
Number of persons employed (’000s)
Average personnel costs (€ per employee)
EU 25 170,555 1,929 45,600 72,556 1,675 30,500
Belgium* 9,051 68 62,500 1,936 27 44,300
Czech Republic 994 45 9,800 1,021 66 8,100
Denmark 2,965 29 53,300 1,371 23 38,400
Germany 40,639 485 56,100 19,784 385 38,300
Estonia 44 3 6,900 38 3 6,700
Greece
Spain 9,826 136 39,000 5,359 124 27,600
France 24,427 296 52,700 11,115 245 34,400
Ireland 16,427 25 44,300 430 9 28,200
Italy 15,924 208 45,400 9,731 207 29,900
Cyprus 60 2 32 1
Latvia 61 4 4,800 30 3 2,800
Lithuania 56 6 6,800 64 7 3,800
Luxembourg 112 1 45,400 378 4 51,400
Hungary 1,191 35 14,300 609 42 8,500
Malta 20 1 15,000 57 2 14,500
Netherlands 8,103 72 55,200 2,032 35 38,100
Austria 2,321 26 50,700 1,669 29 37,900
Poland 1,767 120 14,000
Portugal 992 22 25,600 674 26 15,000
Slovenia 510 14 24,000 266 14 13,800
14
Slovakia 220 18 68,000 210 16 6,500
Finland 1,592 19 44,600 1,006 18 35,000
Sweden 5,711 43 52,500 1,231 25 39,900
UK 25,635 253 52,600 11,609 234 32,400
Bulgaria 195 29 3,200 54 18 1,800
Romania 417 67 3,700 191 40 2,600
Norway 1,615 15 68,400 333 6 45,000
Switzerland* 8,226 63 1,862 24
*2001
Source: Eurostat news release, 2006
Within the manufacture of chemicals and chemical products, rubber and plastic products, the manufacture of
basic chemicals and pharmaceuticals made up 50% of all production. The manufacture of plastic products
made up 23%, while other activities, including the manufacture of rubber products, other chemicals, paints,
varnishes etc, made up a lower proportion of total manufacture (see Figure 2.1).
Fig. 2.1. Manufacture of chemicals and chemical products, rubber and plastic products, EU-25, 2003, %
Source: CEFIC, 2005
Almost exactly two thirds (66.5%) of the value added generated by the EU-25’s chemicals, rubber and
plastics sector came from large enterprises (employing more than 250 persons); this was a much higher
proportion than the industrial average of 57.6%. In contrast, micro and small enterprises (employing between
1 and 49 persons) accounted for a very low share (11.5%) in comparison with an industrial average of
21.6%. Among the Member States, the situation in Latvia was in stark contrast to that for the EU-25 as a
whole, as the proportion of the value added generated by large enterprises accounted for about one third
(32.6%) of the total for the chemicals, rubber and plastics sector, a considerably lower proportion than the
national, industrial average (49.2%) for large enterprises.
Manuf. manmade fibres
1%
Other chemcials
6%
Manuf. of plastic
products
23%
Soap, deter,
perfumes, toilet prep
7% Pharmaceuticals
25%
Paints, varnishes,
prinking ink, mastics
5%
Chems for agriculture
1%
Basic chemicals
25%
Manuf. of rubber
products
7%
15
Within the sector, two of the most important activities are the manufacture of chemicals and pharmaceuticals.
The value added generated by the activities of chemical, chemical products and man-made fibres
manufacturing accounted for the vast majority (70.0 %) of the sectoral total. Indeed, the activities of basic
chemical manufacturing and pharmaceutical manufacturing together accounted for one half (50.0 %) of the
value added generated within the chemicals, rubber and plastics manufacturing sector as a whole (Eurostat,
2006).
2.4. Relationship between the Chemical Industry and other Sectors
A wide variety of sectors consume the products of the chemical industry and therefore developments in the
wider economy and in particular sectors impact on demand for chemical industry products while in turn,
strategies developed by the chemicals industry impact directly on the downstream users of chemicals.
Consumption of Chemical, Rubber and Plastics Products by other Sectors
Initially, the major share (27 %) of chemical products is further processed within the industry itself. The
chemical industry is therefore its own largest customer. In many instances, it is only after several processing
stages that products go to outside customers (Cefic, 2004). As can be seen from Figure 2.2 below, in 2004,
the EU-25 accounted for one-third (33%) of global sales of chemicals, surpassing sales in all other regions,
including Asia and the United States.
Fig. 2.2. World Chemical Sales, 2004 (EUR bn)
Source: CEFIC, 2005
Figure 2.3 below gives an indication of the sectors that most closely linked with the chemicals industry in the
EU. Consumer products account for almost a third of all chemical goods. The services sector and other
industrial operators also consume a significant proportion. In terms of the consumption of plastics, over one
third (37 %) of plastics were used as packaging in 2003 in Western Europe (23), by far the single largest
0
100
200
300
400
500
600
ES-25 Azija JAV Kiti Likusi
Europa
Lotynų
Amerika
16
end-use, ahead of building and construction (19 %), electrical and electronic applications (9%), and other
household/domestic applications (20 %) (Eurostat, 2006).
The products and services of the chemical industry can be found in every area of life - from food and
clothing, through housing and transport, to communications and leisure activities. The development of the
chemicals industry is therefore affected by overall levels of economic activity which influence demand for
chemical products from both other industries and from direct consumers, as well as by changes in
government regulations which influence the type of product that is required (e.g. in relation to packaging) and
the processes used (e.g. in terms of energy consumption levels.)
Fig. 2.3. Consumption of Chemical Products per Sector, EU-25, 2004 (%)
Source: CEFIC, 2005
Industries Affecting the Chemicals Sector
Transport and energy are the two sectors that impact to the greatest extent on the development of the
chemicals sector. A good transportation infrastructure is a key factor in chemical production. Major chemical
plants usually require bulk material inputs and thus need good access to highway, rail, water, and pipeline
transport, depending upon the type of product and inputs.
The Cologne region of Germany is an example of a good transportation infrastructure. There is a large
chemical company presence in the region, with numerous chemical logistics companies in place to handle
transportation of good quickly and safely. The region also features a strong rail infrastructure with high-
capacity railway connections at every chemical park. For water transportation, the Rhine River provides
tremendous access to the rest of Europe and the world. There are also two international airports at
Cologne/Bonn and Dusseldorf. All together, there are about 150 chemical companies, with 80,000 workers in
the Cologne region. Perhaps the most unique feature of the Cologne region is the system of pipelines that
allows 60 percent of raw goods used by chemical companies to be shipped through the pipeline.
Textile and clothing
6%
Agriculture
6%
Services
16%
Rest of manufacturing
6%
Construction 5%
Automotive
5%
Consumer Products
31%
Rest of industry 10%
Electrical goods
4%
Metal products
3%
Office machines
1%Industrial machinery
2%
Paper and printing
products
5%
17
The chemicals industry accounts for around 12% of the EU’s total energy demand (CEFIC, 2005). Energy is
not only a major cost in the processing of chemicals, but gas and oil are also feedstock for the manufacture
of many chemical products. Energy prices in the EU are roughly one-tenth higher than in the US (CEFIC,
2005). This places EU chemical companies at a disadvantage as their chemical products are sold into the
global market and higher energy prices cannot be passed on to clients. The impact of rising energy costs, as
well as environmental policies concerning the consumption of energy, are discussed in more detail in section
2.6.
2.5. Employment in the Chemicals, Rubber, and Plastics Products Sector
Employment Rates
A total of 3.6 million people were employed in the manufacture of chemicals, rubber and plastics throughout
the EU in 2002. Chemicals accounted for 54% of total employment of the sector. Average personnel costs
for chemicals were 46,000 and 31,000 for rubber and plastics, although there was strong variance within
both subsectors.
In 2002 more than half a million people were employed in the pharmaceutical industry in the EU. This
corresponds, on average, to more than a quarter of the total number employed in the whole chemical
industry but only to 0.5 % of the whole non-financial business economy. Although employment is low, the
equivalent share for value-added was considerably higher, suggesting a high productivity level (CEFIC,
2005).
Typical Working Conditions
Working conditions for skilled production workers can be difficult. Manufacturing chemicals usually is a
continuous process; this means that, once a process has begun, it cannot be stopped when it is time for
workers to go home. Split, weekend, and night shifts are common, and workers on such schedules usually
are compensated with higher rates of pay. As a result, the average workweek in the chemical industry tends
to be higher than the average in industry (Bureau of Labor Statistics, 2005).
Working conditions for those in professional occupations are better. Chemists and materials scientists
usually work regular hours in offices and laboratories. R&D chemists and materials scientists spend much
time in laboratories but also work in offices when they do theoretical research or plan, record, and report on
their lab research. Although some laboratories are small, others are large enough to incorporate prototype
chemical manufacturing facilities as well as advanced equipment for chemists. Some chemists are exposed
to health or safety hazards when handling certain chemicals, but there is little risk if proper procedures are
followed (Bureau of Labor Statistics, 2005). Chemical engineers design equipment and processes for large-
scale chemical manufacturing, plan and test methods of manufacturing products and of treating byproducts,
as well as supervising production. They must be aware of all aspects of chemicals manufacturing and how
the manufacturing process affects the environment and the safety of workers and consumers (Bureau of
Labor Statistics, 2005).
18
Health and Safety Issues
Continually running machines in plants are often very noisy and the interior of many plants can be hot.
Hardhats and safety goggles are mandatory and worn throughout the plant. Hazards in the chemical industry
can be substantial, but they generally are avoided through strict safety procedures. Workers are required to
have protective gear and extensive knowledge of the dangers associated with the chemicals being handled.
Body suits with breathing devices designed to filter out any harmful fumes are mandatory for work in
dangerous environments (Bureau of Labor Statistics, 2005). Unsurprisingly, the manufacture of chemicals,
chemical products and man-made fibres had a higher than average incidence rate of non-fatal accidents in
2001 than for manufacturing as a whole within the EU-15 (Eurostat, 2004).
Personnel Costs
Average personnel costs in the EU-25’s chemicals, rubber and plastics sector were EUR 39 900 per
employee in 2003, some 22.4 % higher than the industrial average. However, within the sector, average
personnel costs in chemicals, chemical products and man-made fibres manufacturing were particularly high
(EUR 48 300 per employee) in comparison to rubber and plastics manufacturing (EUR 30 300 per
employee). Labour productivity in the chemicals, rubber and plastics sector was a little over one third higher
(36.7 %) than the industrial average at EUR 67 800 of added value per person employed in 2003. Within the
sector, the labour productivity of those working in the EU-25’s manufacture of basic chemicals (EUR 105
000) and the manufacture of pharmaceuticals (EUR 102 900) was particularly high. In contrast, the apparent
labour productivity of plastics products manufacturing and rubber products manufacturing were below the
industrial average.
Table 2.2 shows the high proportion of men working in the European chemical industry and also the high
proportion of full-time workers. The figures also indicate a high level of older workers in the sector.
Table 2.2. Manufacture of Chemicals and Chemical Products, manufacture of rubber and plastics: Labour Force Characteristics, EU-25, 2005
Male Full-time Breakdown by age
(% share of total)
Proportion of those
employed (%)
Index (industry=100)
Proportion of those
employed (%)
Index (industry=100)
<30 years
30-49 50+ years
67.9 95.2 93.5 101.2 20.1 59 21
Skills, Education and Training
Qualifications requirements vary by profession or position within the sector. Although secondary school
education is usually adequate to qualify for most entry-level production jobs, advancement into better paying
jobs requiring higher skills or more responsibility usually is possible only with on-the-job training and work
experience or through additional vocational training at a 2-year technical college (Bureau of Labor Statistics,
2005).
19
A bachelor’s degree in chemistry or a related discipline usually is the minimum educational requirement for
entry-level chemist or chemical engineering jobs. However, many research jobs require a master’s degree,
or more often a Ph.D. While some materials scientists hold a degree in materials science, a bachelor’s
degree in chemistry, physics, or electrical engineering also is accepted. Many R&D jobs require a Ph.D. in
materials science or a related science (Bureau of Labor Statistics, 2005).
Managerial jobs usually require a 4-year college degree, though some may require only a 2-year technical
degree. Managers can advance into higher level jobs without additional formal training outside the
workplace, although competition is keen. In general, advancement into the highest management ranks
depends on one’s experience and proven ability to handle responsibility in several functional areas. Among
larger, multinational firms, international experience is important for career advancement. Also, industry
restructuring has left fewer layers of management, intensifying competition for promotions (Bureau of Labor
Statistics, 2005).
Overall, at EU-level, the chemical industry is one of the most knowledge based/intelligence intensive work
places, employing a a higher proportion of highly educated and trained staff than most other manufacturing
industries. Over a fifth (22%) of all persons employed in the chemical industry in 2001 had tertiary level
education (Eurostat, 2004).
2.6. Recent developments in the Manufacturing of Chemicals, Rubber, and Plastic Products Sector
Recent Trends in Sector Productivity and Growth
The years 2003 to 2005 were extremely hard for the European chemical industry. The war in Iraq and the
reduced USD negatively reflected on the economic situation (Baran and Mikloš, 2006). This was
exacerbated by high prices of crude oil and gas, which persisted from late 2000 throughout the first half of
2001. The Western European chemicals sector was penalized by "eco-taxes" such as energy tax imposed by
some governments (e.g., in the UK) to meet the Kyoto Protocol's emission reduction targets. Except for the
pharmaceutical industry, the majority of subsectors of the chemical industry showed a very low growth
mainly owing to insufficient demand in Europe (Baran and Mikloš, 2006).
However, signs of improvement have been seen in the last two years. In February 2007 chemical production
(excluding pharmaceuticals) grew by 3.4% compared to February 2006 and remained on a high level. In a
year-on-year comparison consumer chemicals showed the highest growth with 6.5% in February 2007,
followed by pharmaceuticals (4.7%), petrochemicals (4.2%) and basic inorganics (3.3%). All sectors showed
a production increase compared to February 2006, although polymers grew by only 0.7% in a year-on-year
comparison. Looking at recent months, most chemical sub-sectors were increasing production compared to
January 2007, except for specialty chemicals and polymers (Hadhri and Weigel, 2007). However, as can be
seen in Figure 2.4 below, chemicals production in Asia (excluding Japan) been growing strongly, and the
gap between European and Asian production has narrowed significantly in recent years.
20
Fig. 2.4. EU’s declining share of global chemicals production (%)
Factors Driving Sectoral Developments
Among the factors that have been responsible for the slowdown in the sector in recent years are:
• Globalisation
• Technological change
• Environmental concerns
Globalisation
In recent years, the European chemicals industry has undergone a major restructuring. Former national
companies have become European players, but they have remained exposed to procurement markets that
have not yet been fully liberalised. This means that input prices are high - higher than for important
competing nations, such as the US. In particular, the European players face disadvantages in energy supply
and transport services, which are of particular importance for the chemicals industry. As a result, many
companies are relocating production outside of the EU, for example, Asia, where it can be carried out more
cheaply. This also allows such companies to develop new growth opportunities (EMCC, 2005). Not only has
this led to a decline in employment in the chemicals sector in Europe, but it has also had implications for the
development of R&D, which is often retained in Europe, and will be discussed in greater detail below.
The number of indigenous Asian plants has risen in recent years. Such plants are often bigger than
European plants, and often incorporate the latest production technology, thus exploiting economies of scale
not possible in European plants. This is reducing opportunities for EU exports into Asia, thus reducing profit-
margins for European companies, a trend which is likely to continue (EMCC, 2005).
Technological changes
For many years, European chemicals companies were world leaders in technology and innovation, but they
lost their lead during the 1990s. Since the mid-1990s, the US chemicals industry has regularly spent 2.5 % of
its total sales revenue on R&D and the Japanese industry has spent 3 %, whereas the proportion of sales
revenue spent by European companies has fallen from 2.4 % in 1995 to 1.9 % in 2004 (EMCC, 2005). One
explanation for this slackening of research activity is that the considerable effort and share of resources
given to restructuring the chemicals industry in order to create companies capable of meeting the competitive
challenges of global markets has resulted in less resources being available for R&D. If this is the case then
European companies can be expected to shift more resources back to R&D activities after restructuring has
0
5
10
15
20
25
30
35
1990 1992 1994 1996 1998 2000 2002
EU USA Asia (excluding Japan) Japan
Source: CEFIC, 2005; Note: figures exclude pharmaceuticals
21
been successfully completed. However the increasing pressure of higher costs and lower profits than foreign
competitors may result in an on-going shortage of R&D funds within the European chemicals industry. It is
worth noticing that the gross-operating surplus of the European chemicals industry is only half that of its US
counterpart (CEFIC, 2004, in EMCC, 2005).
The European chemicals industry faces two other serious obstacles to future innovation within Europe. The
first arises from the relocation of production sites to locations outside the EU. This makes it more difficult to
work closely with clients so as to develop innovations relevant to their requirements. Production has to be
carried out near the client, which means that it often makes more sense for companies to move customer-
oriented R&D to the production site, where the fine tuning of chemical products to customer needs can take
place, although basic R&D is still often based in Europe (EMCC, 2005).
The second obstacle arises from Europe’s delayed take-off in biotechnologies. While biotechnologies include
some processes that have been well known for a long time, such as the fermentation of foodstuffs and
beverages, they can also be used in a broad range of processes and products. Innovations in these areas
will change the chemicals industry’s structure and output.
The main activities of biotechnology are:
• red biotechnology, which belongs under life sciences and is thus not under discussion in this article;
• white biotechnology: industrial and environmental products and processes, such as biocleaning,
bioremediation, environmental and industrial diagnostics, water and effluent treatment, as well as
recycling;
• green biotechnology: veterinary healthcare, biopesticides, plant agriculture, food technology and
processing;
• services, such as contract research, contract manufacturing, bioinformatics and functional genomics.
The biotechnology sector had a turnover of €19 billion in 2003 and employed 94,000 people. Around one-
half of this sector’s activities are related to the chemicals industry; the other half being concerned with
pharmaceuticals. The biotechnology sector is of outstanding importance for the future of the chemicals
industry because of its research intensity. About one-third of biotechnology revenues are spent on the
development of innovative processes and products. However, the biotechnology industry within Europe is
relatively small: its total workforce amounts to no more than 3% of the numbers employed in chemicals
(EMCC, 2005).
Environmental concerns
Energy is a major cost in the production of chemicals. As energy prices in the EU are substantially higher
than in other regions, such as the US or Asia, the European chemicals industry has focused attention away
from products that require high-energy inputs, thus resulting in an increase in the importation of much-
needed energy-intensive products.
The chemicals industry (including pharmaceuticals) is the largest of the energy-intensive industrial sectors.
Between 1990 and 2000, the chemicals industry was substantially reoriented towards products of low-energy
22
intensity. The output growth attributable to products of high-energy intensity, such as fertilisers, was far
below the average growth rate of the industry (2.1% per year over 1990-2000). Despite strong output growth,
the energy consumption of the chemicals industry declined by around 3% per year between 1990 and 2000.
Most of these savings were achieved during the first half of the 1990s when the industry’s energy
consumption declined by 5.5% per year. Between 1995 and 2000, energy consumption fell by only 0.5% per
year (EMCC, 2005).
The future energy intensity of the chemicals industry will depend on further structural change, investment in
new process technologies and public policies aimed at the reduction of emissions. Among the new process
technologies, combined heat and power generation (of electricity and steam) will play an important role. The
dependence of the chemicals industry on fuel imports will decline somewhat faster than it did in the late
1990s because of the growing use of biomass and waste as energy inputs (EMCC, 2005).
Impact of Sectoral Developments on Employment and Skill Needs
Overall employment levels in the sector have been in decline due primarily to:
• productivity increases, arising from improvements in organisational structures and better utilisation of
new technology;
• relocation of plants to regions with lower overheads; and
• growing concerns about the negative impact of chemical plants on the environment.
The structure of the sector has also changed in recent years as high-tech plants requiring highly skilled
individuals become more common-place. In a bid to encourage more highly skilled workers, particularly
women, into the sector employers are offering more part-time positions and flexible work options. Increasing
emphasis is being placed now on the attraction and retention of workers in R&D, marketing, management
and quality control and inspection roles.
2.7. Likely Developments in the Chemicals, Rubber and Plastics Products Sector
Alternative Scenarios
A study by the European Chemical Industry Council (CEFIC, 2004) developed four alternative scenarios for
the future development of the chemicals sector in Europe:
• Sunny- a revitalised EU chemicals industry, with increased innovation and customer orientation;
• Cloudy- a focused EU chemicals industry, strong in high-end products and sustainability;
• Rain- an EU chemicals industry with no confidence in the European market;
• Storm- a shrinking EU chemicals industry, not able to compete with imports.
These scenarios were based on a major study that involved over 150 chief executive officers (CEOs) and
experts in the chemicals industry. The assumptions made in the scenarios are outlined below.
• The Sunny scenario sees a positive market situation and a highly favourable macro/political
environment, supplemented by positive efforts by the industry to optimise downstream industry.
The overall result is continued growth in the chemicals industry sector.
23
• The Cloudy scenario assumes that the chemicals industry faces a very weak market. However,
in contrast to the Storm scenario, the macro/political environment is very favourable to the
industry, encouraging it to take strong initiatives to improve its overall situation. Despite the weak
market, the industry is able to enhance its competitiveness and profitability.
• The Rain scenario supposes that despite a positive market position and a still acceptable
macro/political environment, the industry fails to seize the existing opportunities and to carry out
the required actions. This failure results in the deterioration of competitiveness and profitability.
• The Storm scenario presumes a very weak market accompanied by a very discouraging
macro/political environment. Even if the chemicals industry tries to fight the bad market
conditions, there is no chance of overcoming the restraints in the macro/political environment
and the result is a rapid loss of global market share.
Table 2.3 shows that in all scenarios demand is expected to grow across the sub-sectors but at very different
rates dependent on whether the ‘sunny’ or stormy’ scenario emerges. However European production rates
are expected to decline under the ‘stormy’ scenario.
Teble 2.3. Yearly Growth Rates for the Chemicals Sector, Europe 2001/2015 (Average)
Sunny Cloudy Rainy Stormy
GDP* 2.5 2.2 2.1 1.7
Chemicals Demand 2.5 2.1 1.9 1.5
Petrochemicals/Plastics 3.5 2.0 2.1 1.7
Specialities/Fine Chemicals 3.7 2.7 2.5 1.7
Chemicals Production 3.3 1.6 0.8 -0.6
Petrochemicals/Plastics 3.5 2.0 -0.5 -2.0
Specialities/Fine Chemicals 5.0 1.0 1.5 -1.5
*Global Insight Data, August 2003
Source: CEFIC, 2004
The EMCC (2005) believes that the ‘sunny’ scenario may be an overoptimistic prediction for the chemicals
sector. Of the scenarios outlined above, only the Sunny scenario would result in growth rates similar to gross
domestic product (GDP) forecasts. However, in light of the pressures (facing the sector), the assumption of a
positive market seems unrealistic. It is clear that the EU chemicals industry is facing a difficult market and will
continue to do so in the foreseeable future (EMCC, 2005).
Another assessment of the likely developments in the chemicals sector predicts similar results. Baran and
Mikloš (2006) suggest that chemical production in Europe up to the year 2015 is likely to decline as a result
of increased competition from Asia, high production costs and more rigorous regulations governing the
sector. Table 6.2 below outlines the predictions of the authors.
24
Table 2.4. Predicted development of the EU Chemicals Sector 2001-2015 (in % of inter annual growth)
Optimistic Realistic Slightly pessimistic Pessimistic
GDP 2.5 2.2 2.1 1.7
Chem. Consumption 2.5 2.1 1.9 1.5
Petrochem., Plastics 3.5 3 2.1 1.7
Specialities 3.7 2.7 2.5 1.7
Chem. Production 3.3 1.6 0.8 -0.6
Petrochem., Plastics 3.5 2 -0.5 -2
Specialities 5 1 1.5 -1.5
Source: Baran ir Mikloš, 2006
Predicted growth for rubber is more optimistic. The International Rubber Study Group (2007) believes that
total world rubber consumption is forecast to pick up speed to increase on average by 4.7% during the period
2007–2009. However, the figure is more optimistic for the Asian rather than the European markets, where
both production and consumption rates are falling.
STEEP analysis
Table 2.5 summarizes the sociological, technological, economic, environmental and political (STEEP) factors
affecting, or expected to affect, the European chemicals industry sector in the future (Thomas, 2005).
2.5 table: STEEP analysis and possible future of the chemicals industry
Trends and drivers Possible future of chemicals industry
Sociological
Working time models Flexible working time arrangements are becoming increasingly important for attracting qualified labour.
Chemicals as a career choice The chemicals sector faces a long-term brain-drain as the young choose other careers.
Technological
Decreasing research and development (R&D) expenditure
R&D expenditure as a proportion of total sales in the EU has been decreasing since the late 1990s.
Relocation of chemicals manufacture Relocation of production sites to non-EU locations leaves fewer downstream clients to stimulate technological advances in the chemicals industry.
Challenges from biotechnology The slow take-off in biotechnology means that the European chemicals industry lacks an important driver of innovation.
Ekonomic
Energy intensity Increasing energy prices could damage the EU chemicals industry competitiveness further.
Emissions trading In combination with absolute emissions reduction targets, the already high energy prices are likely to increase further.
Globalisation Increasing competition from new economic powers, such as China.
Environmental
Energy intensity Public policy aims to reduce energy intensity, which will bring particular challenges to the chemicals industry.
Emissions targets Absolute emissions reduction targets of 20% by the year 2020 will bring challenges to the chemicals industry.
Environmental awareness A shift towards environmentally friendly products is forcing the industry to verify the safety of existing and future products (REACH).
Political
Legislation Legislation could force unrecoverable costs on the chemicals industry (REACH).
25
Decline of the chemicals industry The EU chemicals industry has launched a common initiative for a sustainable chemicals industry.
Unfavourable political environment Can be countered by a better representation of the common views of the industrial stakeholders in political decision-making.
2.8. Factors Influencing Growth
The factors most likely to influence the chemicals, rubber, and plastics sector in terms of economic growth
are the global economy, competition, research and innovation and environmental factors.
Global Economy
The price of oil is a major factor in assessing the development of the sector. According to Consensus
Forecast May 2007, oil prices are expected to remain at the current level in the short and medium term.
Energy prices are increasing slightly over the level of the last 5 months, but have yet to reach their record
level of August 2006 again. As a result, input prices for the sector may not impose an increasing threat to the
development of the sector.
However, should the value of the USD against the Euro continue to decline, it may considerably hurt
Europe’s competitive stance vis-à-vis suppliers within the USD-area. Most of the Asian currencies are tied
closely to the USD and even the Middle East countries have a fixed rate. The currency factor will magnify
Europe’s price- and competitive disadvantage further.
Competition
Asia and China especially are becoming more and more the manufacturing workshop for low-cost
commodities. This comparative cost advantage will extend to a greater production palette within
manufacturing including chemicals. This pattern will limit the production base of traditional industries in the
OECD-region. The lowered domestic production volume of downstream users will therefore diminish the
demand for commodity chemicals located in Europe, US and Japan.
In addition, the Middle East oil and gas rich producers are poised to massively expand their position as the
world’s basic petrochemical industry. Industry experts envisage that 50 percent of total global new ethylene
builds and expansions will be in that region. The region’s ethylene production, now treble that of 1990, is
projected to double at least again by 2010. Middle East production will grow by more than 10 % p.a. far
beyond the 3 % p.a. increased demand forecast within Europe. The petrochemical surplus will find its
destination in Asia, NAFTA and in Europe. The new competitors from Saudi Arabia, Iran and Qatar will
change the landscape for chemicals.
Research and Innovation
There is an urgent need to boost European research, development and innovation in chemical technologies.
Europe needs to identify technology areas of key importance to the future of the chemical and related
industry sectors. It needs to mobilise resources and develop efficient structures for collaborative applied R&D
and technology transfer (CEFIC, 2005).
26
Environmental Factors
The proposed Registration, Evaluation and Authorisation of Chemicals (REACH) legislation is the biggest
challenge currently faced by the European chemicals industry (Thomas, 2005). REACH follows pressure
from national governments, the European Commission and environmental agencies to review the current
chemicals legislation, which does not cover substances put on the market before 1981. This has allowed
hazardous chemicals to remain in circulation and an evaluation of current legislation (published in November
1998) concluded that the regulatory system was failing. Work on the development of a new integrated and
coherent EU chemicals policy, which adequately reflects the precautionary principle and the principle of
sustainability, resulted in the REACH legislation, proposed by the European Commission in 2003.
The draft REACH legislation led to a dispute between the industry and the Commission, which has lasted for
two years. The legislation is now being considered by the European Parliament and the Council of the EU for
adoption under the so-called co-decision procedure. In its current form, REACH would require companies to
register some 30,000 substances with the new European Chemicals Agency. Companies would have to
demonstrate that the chemical substances they use cause no harm to humans or the environment. The
ultimate aim is to phase out hazardous chemicals from circulation by 2020.
Initial studies on the effect of REACH, commissioned by the chemicals industry, reported a loss of
competitiveness and jobs in the industry as a whole. However, two recent reports suggest that the REACH
proposals will hurt the chemicals industry less than was previously feared, although the effect will still be
significant. There are also reports that the industry may even benefit from the stricter environmental
regulation.
2.9. Future Outlook for Employment, Education, Skills and Training in the Chemicals Sector
Future Employment Trends in the Chemicals Sector
Total employment in the manufacture of fuel, chemicals, rubber, plastic and mineral products is expected to
decline in the medium-term, as was discussed in previous sections. However, this is likely to be positive for
some employers who effectively use new technology and improvements in organizational management to
increase productivity and thus improve profit-margins (Cefic, 2004).
Overall, the industry will need fewer but more highly skilled and technology literate employees. Such
employees will be expected to operate more flexibly and to have cross-cutting and change-management
skills. Technology will be the main driver for upskilling the workforce and filling skills gaps. Competency
Standards, which individuals and workforces as a whole must achieve before they are allowed to operate
plant, common in the Pharmaceuticals industry, are likely to extend into the Chemicals industry (Skills
Development Group of the Chemistry Leadership Council, 2004).
Future Skill Needs and Qualifications in the Chemicals Sector
The availability of sufficient well-prepared graduates is critical to the sector’s future development. However,
in recent years there has been a sharp decline in the number of students graduating in chemical-related
disciplines (see Figure 8.1 below), a trend which is likely to continue into the medium-term (Cefic, 2004).
27
Fig. 2.5. Chemicals graduates in Major EU Countries, 1990-2007
An Expert Group on Future Skills Needs in Ireland (2000) considered the strategy that is required to ensure
that skilled personnel with relevant third level scientific qualifications are available to meet the projected need
of companies in the chemical industry sector in the medium term. The four elements of the strategy are:
(i) To regenerate interest at school level in chemistry and other fields in which interest has been steadily
declining.
(ii) To boost student interest in the relevant science courses in order to hold graduate numbers at their
present levels and, in some fields, to increase them.
(iii) To ensure that the third level colleges have the resources to cater for the additional graduates
required.
(iv) To develop a clearly defined career progression path for employee training and competency building
within chemical and biological sciences related industrial sectors.
Skills Gaps and Shortages in the Chemicals Sector
Skills shortages exist where there are too few adequately skilled individuals available in the accessible
labour market to meet industry needs. For the Chemicals industry this is not a short-term issue but will
become more crucial over the 10-year period because of the adverse demographic pattern emerging in
Europe. Skills gaps exist where employees, although adequate in number, have lower skill levels than those
necessary to meet business objectives, or where new entrants to the labour market are inadequately trained
or qualified for the positions they will occupy in industry (Skills Development Group of the Chemistry
Leadership Council, 2004).
The Chemicals industry has significant skills gaps at both plant operator and graduate levels. For an industry
that has both a strong record of technological innovation and a strong record of driving down its costs, it is
likely that in 10 years time it will need fewer but more highly skilled and technology-literate employees who
will be expected to operate more flexibly and across existing skills boundaries. But at present, the industry
has too few people trained and working to a minimum standard of NVQ Level 3 (A-Level equivalent).
0
20
40
60
80
100
120
140
160
180
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Cefic, 2004. Note: Figures for 2005-2007 are estimated
28
Upskilling the Chemicals industry workforce to NVQ Level 3 is a major challenge for the industry (Skills
Development Group of the Chemistry Leadership Council, 2004).
Gaps in Management skills also exist. Such skills have been identified by the Skills Development Group of
the Chemistry Leadership Council (2004) as including:
• Leaders;
• High quality supervisors;
• Managers of multidisciplinary and interdisciplinary projects;
• Supply chain and continuous improvement managers;
• Core technical support skills;
• Sub-contractor management skills;
• Marketing including good marketers;
• IT;
• Innovators.
Other more generic gaps include:
• Core skills – literacy and numeracy;
• Good communicators;
• Good team-workers;
• Problem-solvers and forward thinkers;
• Organisers and planners;
• Sustainable development competencies;
• Individuals who take initiative and responsibility;
• Individuals looking for self-improvement, motivation and learning;
• Individuals with a technical understanding of the regulatory environment (which is increasingly
moving towards a more risk-based approach).
Meeting Skills Needs
The Chemical industry needs a work force which has the right skills at the right level. A successful Chemical
industry must attract and retain highly skilled and motivated people who can lead innovation as well as up
skill its workforce to enable them to fully utilise the massive increases in process control and data handling
capability. It must also achieve an appropriate balance of academic and vocational skills and ensure that
those with practical engineering skills are nurtured and developed. It must draw on the widest pool of people
given scarce skills resources and recognise the benefits diversity brings to innovative capacity. Finally it must
create a culture that encourages its recruits to be creative and challenge the status quo (Chemistry
Leadership Council, 2004).
Initiatives proposed by the Chemistry Leadership Council (2004) in relation to the development of future skills
needs of the Chemicals sector include:
• Developing a Gold Standard for the Chemicals industry that will clearly define the skills and
competencies needed to achieve Licences to Operate, Sustainable Development and Productivity
29
Improvement targets. The Gold Standard should define the skills, competencies and qualifications
that the Chemicals industry needs if it to be world class. This will enable the industry to be measured
and benchmarked against its competitors. Employers within the industry will be able to measure their
companies’ capability against an industry-recognised standard. This will enable the industry to define
its strategic skills needs and articulate its requirements so that supply and provision at all stages of
the education process can be influenced. This will in turn, ensure that skills provision for the industry
is demand driven, not supply led.
• The Chemical industry must initiate and lead a process to significantly improve the public perception
of chemistry. At the heart of this must be a campaign to create excitement in young people around
the chemical sciences and engineering and the careers they offer in order to stop the decline in both
numbers and quality of those studying relevant A Levels (or equivalent) and degrees.
• The Chemical industry must initiate and lead a process to significantly increase the diversity of the
workforce. This will necessitate making the industry and the career structure it offers more attractive
to women and ethnic minorities
• The establishment of a Chemicals Industry Skills Network, as was established in the UK, could
benefit the development of future skills needs in the sector. The Network was set up to make
recommendations on how to increase the business performance of chemicals companies by
improving and broadening the skills base of their employees. The membership of the Skills Network
Group is deliberately very broad and consists of representatives from the Chemicals industry, Sector
Skills Councils, Universities, Trades Unions, Government and Professional Bodies.
• Development of a Sector Skills Agreement, as has been developed in the UK. This agreement
defines the industry’s future skills needs, agrees the roles and responsibilities of the different
stakeholders involved and spells out the mechanisms by which these will be met.
Meeting Training Needs
The European Chemical Industry needs to take a longer-term strategic look at its training and development
needs, if it is to achieve profitable growth. For example the UK chemicals industry averages under five days
training per employee compared to around 12 days for world-class companies. More often training is seen
as a cost not as an investment, in an industry that is driven by cost reductions and restructuring. However
the Chemical IGT’s Profitable Growth scenario, referred to above, clearly spells out that the industry will
need to have more highly skilled and technology literate employees, operating flexibly across existing skills
boundaries if such a positive scenario is to be realised (Skills Development Group of the Chemistry
Leadership Council, 2004).
This means that European chemical industry companies must break the cycle whereby company cost cutting
measures unduly affect expenditure on training and up-skilling programmes. To be world-class, the
Chemicals industry must recognise the importance of life-long learning. Companies must ensure that the
training process is effectively managed, and that training needs are included in business plans and
management reports (Skills Development Group of the Chemistry Leadership Council, 2004).
The lead for this must come from the top – through Chief Executives and Board members. Companies
under increasing pressure to quantify training benefits to the organisation, and to demonstrate how learning
30
is transferred into the workplace need to develop powerful arguments on how important training is to future
prosperity and profitability. Such arguments must be based on robust examples of how particular companies
have succeeded through putting training investment at the top of their priorities.
Investment in Research and Development
High value added Chemicals companies need to invest more in R&D to attract the best researchers, and
need to be more willing to share the investment risk. They must also maintain strength in discovery and
early phase outsourcing by encouraging spin-outs/venture funding etc. At the same time, high investment in
R&D must be complimented by high investment in technical training. It is imperative that the strong links
between high levels of business performance and a highly trained workforce are articulated clearly to
decision-makers. (Skills Development Group of the Chemistry Leadership Council, 2004).
2.10. Summary
The manufacture of chemicals, rubber, and plastic products is an important sector in Europe, both in direct
economic and employment terms and also due to its spin off effects on other sectors.. However, increased
competition, substantial rises in overheads and more stringent regulations have had an impact on the
viability of the sector within Europe. In addition, poor working conditions and a lack of suitably qualified
graduates have meant that the sector in Europe has not reached its full potential in recent years. Newer,
bigger plants in countries such as China are now surpassing European plants in terms of production levels
and also in terms of the development of innovative products and processes.
If the sector is to continue to thrive in Europe, clear and agreed strategies must be developed and
implemented to avoid the threats that face it. There is an urgent need for the sector to boost European
research, development and innovation in chemical technologies. The sector needs to identify key
technologies and areas of comparative advantage for the European chemical and related industry sectors. It
also needs to mobilise resources and develop efficient structures for collaborative applied R&D and
technology transfer.
As such, the sector can only compete by investing in manufacturing in areas that have significant growth
potential, such as pharmaceutical, medicine manufacturing activities and biotechnology. Finally, investment
in training and upskilling of the workforce in the Chemicals sector is critical to ensuring the sector continues
to thrive.
31
3. BIOTECHNOLOGY SECTOR IN LITHUANIA
3.1. Introduction
This chapter gives a brief description of the biotechnology sector and development trends and discusses
their influence on employment and training. Secondary data were used for analysis, i.e. studies, overviews
and other available information about development of the biotechnology activities in Lithuania.
3.2. Definition of the Biotechnology Sector
Biotechnology is research or production activity using live cells and parts thereof or biological
macromolecules (e.g. enzymes) for testing products of various purposes of use, production, provision of
services (e.g. diagnostics of diseases), improvement of plant or animal breeds and other practical solutions
of problems. This activity is also related with improvement and optimisation of research tools and production
processes. In other words, biotechnology is use of biological processes for development of technologies and
research tools.
The biotechnology sector in Lithuania covers two important research and development and industry
directions: pharmaceutical biotechnology, products for molecular biology and diagnostics and
industrial biotechnology and agrobiotechnology. The biopharmaceutical subsector belonging to the “red”
biotechnology is the best developed in the country. During the recent years industrial biotechnology,
particularly biofuel industry, is developing very rapidly. Although these days there is much discussion with
regard to genetically modified plants and microorganisms obtained using biotechnological methods, “green”
biotechnology is penetrating human life more and more rapidly.
The highest concentration of biotechnology educational and research institutions and business entities is in
Vilnius. There are many of them concentrated in Kaunas County. According to the 2007 survey, the sector in
question employed 704 employees, of whom 427 were carrying out research. The majority of the employed
in the sector (about 77%) have a university or higher non-university degree. Shares of men and women are
similar. The sector is dominated by employees aged 24 to 35 years. Substantial state subsidies and private
investments have determined rather good working conditions in the sector. Staff security is higher than the
average in the country.
3.3. Links within the Sector and with Other Economic Sectors
Pharmaceutical biotechnology is directly linked with such subsectors as molecular diagnostics and reagents
for molecular biology, immunodiagnostics, therapy proteins, pharmaceutical products, bioinformatics and
computer biotechnology. Exchange of information, drafting of joint projects and training curricula and
professional development of specialists are continuously carried out in these subsectors.
In the area of industrial biotechnology and agrobiotechnology, the following subsectors can be identified:
polysaccharides and products produced from them, obtaining and production of bioplastics, obtaining
chemical substances by biotechnological methods, Manufacture of fuel by biotechnological methods,
creation and use of biological catalysts, optimisation and management of biotechnological processes,
32
organic biotechnology, forest plants biotechnology, agricultural plants biotechnology. Methods and products
of one subsector can easily be used for development of another subsector.
Biotechnological methods and products are used in many areas of activities – medicine, pharmacy, chemical
industry, agriculture, environmental activities, etc. Therefore, its development has much impact on
development of the above areas. On the other hand, many problems solved in biotechnological activities
depend on the situation in other areas, e.g. information technology.
3.4. Sector Development
In Lithuania development of the biotechnology sector started in 1975 when the Soviet Research Institute of
Applied Enzymology was established in Vilnius. Later it became a research and production company
Fermentas. At that time it was one of the most advanced and best funded research centres all over the
former Soviet Union. The prestige of the Institute was known both economically (had impressive state
funding), socially (salaries of employees substantially exceeded the then average salaries) and
technologically (it was using the most advanced technologies and equipment of that time).
After restoration of independence and establishment of market economy relations, the sector enterprises lost
substantial state funding. Therefore, development of biotechnology activities slowed down.
At present revival of the sector is perceived. This has been influenced by more intensive funding of the
activity. Starting from 2000 a lot of state, private and EU funds have been allocated for development of the
biotechnology science and business. For example, in 2000-2002 a state investment programme Upgrade of
Research Equipment of State Research Institutes was implemented allocating the funds of LTL 0.3 to 1.4
million to all institutes related to biotechnological science. In 2006 a new state investment programme for the
research infrastructure was launched. Research-based technologies helped to attract huge foreign
investments to Lithuania: in 2000 a modern universal factor of biotechnological preparations Sicor_Biotech
meeting the European, US and Lithuanian medicine production requirements was built in Vilnius. The
amount of funds invested in the factor (almost LTL 100 million) is one of the largest “greenfield” investments
ever made in Lithuania. Although financially the situation in the biotechnology sector has improved, so far the
development facilities of research institutions are often inadequate for performance of research oriented
towards the future of the industry. The problem seen in Western Europe and other countries is normally
solved by drafting complex biotechnology and business development programmes.
In Lithuania the scale of sales of biotechnology products within the last 5 years has been rapidly increasing
(on average by 22% every year) and the efficiency growth pace reached the average of 8% per year.
Production in this sector is expected to continue to grow (by about 25% annually). In 2015 turnover should
increase to LTL 670 million, and in 2020 – exceed LTL 2 billion. Labour force efficiency should gradually
approach the EU indicator. The biggest growth is expected in the areas of medical diagnostic products and
biological pharmaceuticals which are already now competitive globally. Foreign investments of
pharmaceutical/biotechnological companies are expected to continue to increase. These trends will have
impact on employment in the sector. The need for specialist requirements to employee qualifications will be
increasing.
33
3.5. Sector Prospects
Development of the biotechnology sector is primarily associated with growth of economically strong
enterprises with modern equipment, qualified staff and research units. Technology implementation
experience and vast international business practice is collected thereby and intellectual property acquisition
and protection issues are dealt with successfully. For example, Fermentas UAB exports its products to 70
countries, produces over 100 products by licensing agreements with the world’s leading companies. In the
future the company plans to perform research to expand the range of molecular biology reagents. This will
create prerequisites for creating new sets of molecular diagnostics. Moreover, components of the sets
(reagents) are to be produced under controlled ambient conditions (one of the most important
pharmaceutical requirements in Europe and in the world), i.e. organising work according to the best practice
standards ensuring high quality and reliability of products.
One of the key factors defining successful development of the biotechnology sector is partnership of
business enterprises and research institutions, which is yet underdeveloped in Lithuania. To improve the
situation, in 2006 the Lithuanian national biotechnological platform uniting 15 business enterprises and 13
research institutions and universities was established. Due to efforts of the platform members, the main
biotechnology development directions were identified. Cooperation between research and business
enterprises should be encouraged by the “valley” establishment concept approved by the resolution of the
Government in 20071, which creates legal prerequisites for concentrating research, study and business
potential in one place. Obviously, development of such centres requires large investments, which is why
“valley” prospects will greatly depend on the level of funding.
Development of biotechnology is also dependent on formation of technical and instrumental facilities for
creating and implementing new-generation technologies. Therefore, due to complex biotechnological
methods, requirements to labour force qualification will be increasing.
3.6. Influence of the Sector Development on Employment and Training
Now the biotechnology sector mainly employs young persons with university degrees. Rapid development of
the sector and expected changes will influence the increase in the demand for employees. Specialist
qualification will become a crucial prerequisite for successful development of the area in question.
At present the supply of biotechnology specialists does not live up to the demand. According to the 2007
survey data, biotechnological research institutions and business enterprises employ 704 specialists and the
need for them is 874. The greatest lack is among biochemists, molecular biologists and geneticists.
Moreover, there is also lack of chemists and bioengineers. Lately application of computerised methods has
become more intensive in planning, modelling and analysis of biomedical and biotechnological research and
development of databases covering the growing bioinformation flow. Therefore, the need for bioinformation
specialists should increase. The demand for lower qualification specialists such as laboratory staff,
technicians and quality control staff is also expected to increase.
1 Resolution No. 321 of the Government of the Republic of Lithuania of 21 March 2007 on approval of the concept of
establishment and development of integrated science, education and business centres (valleys).
34
According to business representatives, specialists mostly lack practical skills, especially of work with modern
technologies. Emphasis is also placed on the lack of knowledge of mathematics, physics and chemistry and
the inability of young people to apply their knowledge in specific working situations. According to
biotechnology practitioners, the teaching methodology should be changed focusing more on training of how
to apply knowledge rather than convey it.
A recent trend is that specialists having worked at research institutions for a number of years go to private
business enterprises. This is greatly conditioned by better work conditions (e.g. salaries). Such employees
have to learn how to work with modern biotechnological industrial equipment, acquire technical foreign
language skills, etc. This is why the need for specialised training is growing. For example, the Biotechnology
Institute using the ESF funds was implementing a project Professional Development of Scientists and Other
Researchers in Land and Forest Plant Biotechnologies.
3.7. Summary
• The biotechnology sector in Lithuania covers two important research and development and industry
directions: pharmaceutical biotechnology, products for molecular biology and diagnostics and
industrial biotechnology and agrobiotechnology. The biopharmaceutical subsector belonging to the
“red” biotechnology is the best developed in the country. During the recent years industrial
biotechnology, particularly biofuel industry, is developing very rapidly.
• The highest concentration of biotechnology educational and research institutions and business entities is
in Vilnius. There are many of them concentrated in Kaunas County. According to the 2007 survey, the
sector in question employed 704 employees, of whom 427 were carrying out research. The majority of
the employed in the sector (about 77%) have a university or higher non-university degree. Shares of
men and women are similar. The sector is dominated by employees aged 24 to 35 years. Substantial
state subsidies and private investments have determined rather good working conditions in the sector.
Staff security is higher than the average in the country.
• Starting from 2000 a lot of state, private and EU funds have been allocated for development of the
biotechnology science and business. Research-based technologies helped to attract huge foreign
investments to Lithuania. Although financially the situation in the biotechnology sector has improved, so
far the development facilities of research institutions are often inadequate for performance of research
oriented towards the future of the industry.
• In Lithuania the scale of sales of biotechnology products within the last 5 years has been rapidly
increasing (on average by 22% every year) and the efficiency growth pace reached the average of 8%
per year. The sector is expected to continue rapid development in the future.
• Development of the biotechnology sector is associated with growth of economically strong enterprises
having modern equipment, skilled staff and research units, strengthening of cooperation between
research and business institutions and formation of the technical and instrumental facilities.
• At present the supply of biotechnology specialists does not live up to the demand. The biggest lack is
perceived among biochemists, molecular biologists and geneticists. Moreover, there is also lack of
35
bioinformation specialists, chemists and bioengineers. The demand for lower qualification specialists
such as laboratory staff, technicians and quality control staff is also expected to increase.
• According to business representatives, specialists mostly lack practical skills, especially of work with
modern technologies. Emphasis is also placed on the lack of knowledge of mathematics, physics and
chemistry and the inability of young people to apply their knowledge in specific working situations.
36
4. STATISTICAL CHARACTERISTICS OF THE MANUFACTURE OF FUEL, CHEMICALS, RUBBER,
PLASTIC AND MINERAL PRODUCTS SECTOR
4.1. Introduction
This section gives an overview of development of the sector of Manufacture of fuel, chemicals, rubber,
plastic and mineral products. It covers the main aspects of CS enterprises, employment and performance
indicators. Analysis was performed using statistical data especially compiled for the study. Secondary data
were also used, i.e. studies, overviews and other available information about development of the chemical
industry and economic development in Lithuania.
4.2. Briefly about Manufacture of Fuel, Chemicals, Rubber, Plastic and Mineral Products
Sector Development
The first chemical enterprises in Lithuania were established in the 19th century. They produced paints and
varnishes, acids, salts, medicines and cosmetic products. In 1869 one of the largest Lithuanian factories
Union producing superphosphate was established. In 1908 (except for Klaip÷da Region) Lithuania had 28
chemical enterprises and produced about 1.4% of the industry’s produce. In 1907 11 enterprises were active
in Klaip÷da Region. The biggest changes in the branch took place in the 1960s when plastic factory was
opened in Vilnius, a chemical factory in K÷dainiai, a nitrogen fertiliser factory in Jonava, an artificial fibre
factory in Kaunas and an oil refinery in Mažeikiai.
Further development of the chemical industry took place during the independence period. Large companies
active during the Soviet times were privatised. Having improved production and implemented quality and
environmental management systems, they remained competitive on the international market. Plastic
production and processing have developed within the last decade.
Manufacture of fuel, chemicals, rubber, plastic and mineral products (the latter being closely related to the
development of the construction sector) during the period in question has been developing the fastest among
processing industries. The sector is dominated by oil refining creating the largest income in the chemical
industry. It must be pointed out that almost all production is carried out by one enterprise – Mažeikių Nafta
AB. This is an advantage because of business concentration but at the same time it is also a drawback
creating high risk if production is undermined. Fertiliser and plastic industry is also rapidly developing. For
example, in 2003 the value added created by the plastic production segment was five-fold as compared to
1998. Contribution of these activities to the CS structure is constantly increasing. The area of non-metal
mineral products is dominated by production of cement, concrete and construction materials. In the structure
of the Lithuanian chemical industry a large share is taken by basic chemicals. The share of special
chemicals, pharmaceutical products, cosmetics and household chemical products in the breakdown of
products is very small. Western Europe demonstrates opposite trends. On the other hand, rapid growth of
some enterprises and development of export markets prove that Lithuania has a potential to develop high
added-value chemical or biotechnology industry. CS is characterised by rather high efficiency nationally and
adequate competitiveness on the international market. In 2006 export of chemical enterprises exceeded 70%
37
and of plastic industry – 50% of products. The sector enterprises create about 6% of the total added value.
Similar trends will hopefully continue during next several years.
Specific Features
All chemical industry enterprises (and new production units of active enterprises) before starting their
activities must perform the environmental impact assessment. The latter is understood as a process intended
for identifying all possible factors which can have direct and indirect impact on the environment.
Environmental impact assessment is continuously performed in Lithuania.
Integrated pollution prevention and control established in the European Union means that all possible types
of environmental impact of economic activities must be analysed. In the course of activities they must be
managed and controlled. This covers use of natural resources and energy efficiency, emission of pollutants
in water, air and soil as well as waste generation and disposal, noise, vibration, danger of accidents and
contamination of the location of economic activities.
EU institutions and Member States have been drafting a new legal act on management of chemical
substances and preparations for several years. The so-called REACH Regulation is related to the issues of
registration, evaluation, authorisation and restriction of chemical substances. Coming into force of new EU
environmental directives will pose new objectives for the Lithuanian chemical industry which will require
additional investments. This can hinder development of the chemical industry, particularly for small and
medium enterprises.
Safety at Work
Professional risk and safety at work are very important for the chemical industry. Sector enterprises pay
much attention to this issue. They have safety units or appoint managers responsible. The latter ensure
observance of mandatory requirements, draft safety at work procedures for the enterprise, perform internal
audits and keep register of accidents. It must be pointed out that enterprises seeking to improve
management of professional risk and safety started implementing the international standard – OHSAS
18000. Members of the Lithuanian Association of Chemical Enterprises are parties to the global chemical
industry initiative Responsible Care.
Investment
The level of both material and direct foreign investments in the chemical sector is rather high. The major part
thereof goes for increase of the production capacity. For example, one of the largest enterprises in the sector
Achema AB in 2004 completed a three-year investment programme of LTL 200 million and is starting a new
investment cycle for LTL 500 million which will be completed in 2009. However the data available show that
the investment level in 2006 was about 18% lower as compared with 2005.
Based on the information available, the sector invests a lot in research and development. In 2004 chemical
enterprises invested LTL 23.6 million in R&D. In 2001-2004 R&D investments increased by 402%. This
witnesses the efforts of the Lithuanian chemical industry to increase competitiveness by promoting
development of new products with higher added value.
38
Links with Research
In Lithuania several research institutions (e.g. Faculty of Chemical Technology of Kaunas University of
Technology, Faculty of Chemistry of Vilnius University, Biotechnology Institute) carry out research in
chemistry. They have talented researchers and are able to perform orders of industrial enterprises but lack
funds to modernise the research infrastructure, professional development of specialists and
internationalisation of research. This hinders development of fundamental research.
Research is performed also by industrial enterprises including Achema AB, Putokšnis UAB and ARVI UAB.
Normally they are aimed at creation of new products, technologies or production processes.
Development Prospects
Development prospects of the chemical industry are associated with large financial flows generated by
enterprises of the sector which can be used for production development and research; with integration into
the global market (e.g. production of fertilisers and biotechnologies in industry); with development of modern
technologies and cooperation of business and research organisations. The latter was started by establishing
technology platforms (e.g. the national sustainable chemical technology platform, the national biomass and
biofuel production and use technology platform, the national biotechnology platform). However for
cooperation to be successful, state support and formation of clear priorities are needed.
Based on the information available, one can identify the following key factors which will have influence on
development of the chemical industry in the future:
• tightening of EU environmental and sector-specific requirements;
• EU production transposition to Asian countries;
• Structure of the Lithuanian chemical industry (dominating production of basic chemicals);
• limited national investment;
• high costs of new and efficient technologies;
• increase in costs of raw materials and the labour force;
• increased demand for highly qualified employees.
4.3. Enterprises
Distribution of enterprises by subsectors and size. According to statistical data, in 2007 there were 1,005
enterprises in the sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products. Their
numbers in the subsectors of chemistry (CP) and production of other non-metal mineral products (KT) almost
coincide. The sector is dominated by small enterprises (with the maximum number of employees being 9).
They account for about 58% of all enterprises in the sector. The annual turnover of small producers usually
does not reach LTL 1 million. Therefore, their capacity to invest in production modernisation is substantially
39
lower than of large companies. The structure of the sector of Manufacture of fuel, chemicals, rubber, plastic
and mineral products and the number of enterprises are given in Table 4.1.
Table 4.1. Structure of the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and Mineral Products
enterprises by number of employees total subsector activities according to NACE
Small: up to 9
Small: 10 to 49
Medium: 50 to 249
Large: over 250
Manufacture of coke, refined petroleum products and nuclear fuel (23)
1 1 1 1 4
Manufacture of chemicals and chemical products (24) 63 38 16 3 120
Manufacture of rubber products (25.1) 24 11 0 0 35
Chemical industry (CP)
Manufacture of plastic products (25.2) 166 136 43 2 347
Manufacture of glass and glass products (26.1) 29 22 11 1 63
Manufacture of non-refractory ceramic goods other than for construction purposes; manufacture of refractory ceramic products (26.2)
41 23 5 0 69
Manufacture of ceramic tiles and flags (26.3) 5 2 0 1 8
Manufacture of bricks, tiles and construction products, in baked clay (26.4)
6 0 5 0 11
Manufacture of cement, lime and plaster (26.5) 1 0 0 2 3
Manufacture of articles of concrete, plaster and cement (26.6)
53 34 19 3 109
Cutting, shaping and finishing of stone (26.7) 183 33 1 0 217
Production of other non-metal mineral products (KT)
Manufacture of other non-metallic mineral products (26.8) 12 4 3 0 19
total 584 304 104 13 1005
Change in the number of enterprises. In 2003-2007 the number of enterprises in the sector of Manufacture of
fuel, chemicals, rubber, plastic and mineral products slightly decreased, primarily due to changes in the KT
subsector (Fig. 4.1). During the period in question the number of small enterprises (up to 9 employees)
decreased and the number of small enterprises (10 to 49 employees) increased in the latter sector.
Information provided leads to a conclusion that the process of scaling up of enterprises started in production
of other non-metal mineral products.
Fig. 4.1. Change in the Number of Enterprises in the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and Mineral Products
0
200
400
600
800
1000
1200
2003 2004 2005 2006 2007
KT
CP
40
Geographic distribution of enterprises in Lithuania. Vilnius and Kaunas Counties are characterised by a large
number of chemical producers and producers of other non-metal mineral products (Figure 4.2). Normally the
sector enterprises are located far from residential areas.
Fig. 4.2. Geographic Distribution of Enterprises in the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and Mineral
Products by Counties in 2007
0%
5%
10%
15%
20%
25%
30%
Alytaus
Kauno
Klaip÷dos
Marijampol÷s
Panev÷žio
Šiaulių
Taura
g÷s
Telšių
Utenos
Vilniaus
CP KT
4.4. Employment in the Sector
Distribution of employees by subsectors. According to the data of 2007, the CS sector employs almost 29
thousand employees, of whom the majority (about 63%) – in chemical industry. Within five years (2003-
2007) the number of the employed in the sector slightly increased (Fig. 4.3). The number of employees
slightly increased in small and medium enterprises but decreased in large ones. Taking into account that the
sector income is constantly increasing, one can infer that enterprises with 250 and more employees increase
efficiency. The above trends are seen in both CP and KT subsectors.
Fig. 4.3. Change in the Number of Employees in the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and Mineral Products
0
5000
10000
15000
20000
25000
30000
35000
2003 2004 2005 2006 2007
KT
CP
Labour force supply and demand2 (unemployed and vacancies). In 2003-2006 the number of the
unemployed registered with the stock exchange decreased and the supply of vacancies increased in both
sectors. According to preliminary data, in 2007 the situation in the CP subsector should be changing, i.e.
2 Data source: data of the Lithuanian Labour Exchange especially compiled for the study
41
certain increase is expected in the number of the unemployed and decrease will be seen in the supply of
vacancies (Figure 4.4).
Fig. 4.4. Number of Unemployed and Supply of Vacancies in CS Sector
Bedarbiai Laisvos darbo vietos
0
500
1000
1500
2000
2500
3000
3500
2003 2004 2005 2006 2007(progn.)
2003 2004 2005 2006 2007(progn.)
KT
CP
The level of tension on the market is evaluated by the ratio of vacancies and the number of the unemployed.
Results by processing industry branches are shown in Figure 4.5. Data given show that the biggest lack of
employees (with supply of vacancies exceeding the number of the unemployed) is characteristic of
production of other non-metal mineral products, chemical and electronic industries.
Fig. 4.5. Tension Level in Processing Industry Branches (2007 preliminary data)
1,7
1,6
1,5
1,4
1,3
0,9
0,9
0,8
0,7
0,7
0,7
0,6
0,6
0,6
0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8
Production of other non-metal mineral products
Production of chemicals, chemical products and chemical fibre
Production of refined oil products
Manufacture of electric and optic equipment
Manufacture of rubber and plastic products
Manufacturer of other machines and equipment not included anywhere else
Manufacture of food products, drinks and tobacco
Other production not included elsewhere
Manufacture of textile and textile products
Manufacture of wood and wood products
Manufacture of leather and leather products
Production of fibre, paper and paper products; publishing and printing
Manufacture of transport equipment
Manufacture of key metals and metal products
The tension level by groups of jobs in the CS is given in Figure 4.6. It shows that problems with the lack of
employees in the sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products are to be
linked more with the lack of specialists of proper qualification having higher education. However, there is also
lack of lower-level employees – qualified workers and operators of equipment and machines.
42
The administrative staff group lacks finance and accounting employees. The demand for these specialists
exceeds the supply by 4 times. In the group of technical specialists the biggest lack is of bioengineers,
biochemists, biotechnicians, designers and technicians. There is also the need for programmers, quality and
marketing specialists. Among qualified workers, the biggest lack is seen in industrial machine mechanics and
operators, metalworkers and electricians.
Fig. 4.6. Tension Level in CS Branches by Job Groups (2007 preliminary data)
2,3
2,4
3,3
6,9
1,7
1,6
3,2
1,4
1,6
1,3
0,7
0,7
1,5
3
0,4
0,2
0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0
Production of other non-metal mineral products
Production of chemicals, chemical products and chemical fibre
Production of refined oil products
Production of rubber and plastic products
Specialists and civil servants Qualified workers and service staff
Operators and assemblers of equipment and machines Non-qualified workers
According to the data of the Lithuanian Labour Exchange, requirements to the CS labour force qualification
are becoming higher. More and more importance is gained by skills of problem solving, work with information
technologies, modern laboratory and environment control equipment. Much attention is paid to foreign
language skills and personal features. The need for skills is described in more detail in Section 5.4.
Work Permits for Foreigners in Lithuania3. Pursuant to the data available, the number of work permits issued
to foreigners is constantly increasing. In 2005-2007 it increased by 3.5 times. This trend is characteristic of
all economic sectors including the CS sector. According to preliminary data, in 2007 work permits for work at
the sector enterprises were issued to 308 citizens of other countries, about twice as many as in 2005. Of
them 89% are employees in the CP subsector. Among the foreigners having obtained the work permit for CS
activities the majority were qualified workers (84%).
4.5. Performance Indicators
Turnover. According to the official data, the turnover has been constantly increasing in the sector of
Manufacture of fuel, chemicals, rubber, plastic and mineral products within the last five years (Figure 4.7).
Slightly more rapid growth of turnover is characteristic of the CP subsector. In the latter 81% was the
turnover of large enterprises. At the same time the turnover of medium enterprises producing other non-
metal mineral products reached 44%, and that of large enterprises – 34% of the total turnover of the
subsector. Based on the information provided, one can state that production of chemical products is more
concentrated in large enterprises.
3 Data source: data of the Lithuanian Labour Exchange especially compiled for the study
43
Fig. 4.7. Change in Turnover in the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and Mineral Products (LTL thou)
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
2003 2004 2005 2006 2007
KT
CP
Productivity (turnover/number of employees). Figure 4.8 shows that in 2003-2007 productivity was growing in
both CP and KT subsectors. This trend is particularly evident in large (with 250 and more employees)
chemical enterprises where the indicator was almost 19 times as high as that of small manufacturers (with up
to 9 employees). Information provided leads to an assumption that modernisation is rapidly implemented in
large enterprises of the chemical industry.
Fig. 4.8. Productivity Change by Subsectors and Size of Enterprise
CP KT
0
200
400
600
800
1000
1200
1400
1600
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
up to 9 employees 10-49 employees 50-249 employees 250 and more employees
As mentioned previously, the sector enterprises are characterised by a rather high level of efficiency4
nationally. On the other hand, there are certain differences between sector activities. For example, according
to the 2006 data, efficiency in production of refined oil products reached LTL 96.7 and was the highest in the
country. Efficiency in production of chemicals, chemical products and chemical fibre exceeded the national
indicator by about 1.7 times. At the same time this indicator in production of non-metal mineral products was
just a few points higher than the national efficiency (LTL 26.8).
4 Added value per one factual work hour.
44
Salaries. The average monthly gross5 salary during the period in question was growing rapidly and was one
of the highest in the country. A similar trend will hopefully continue in the future. In the CP subsector salaries
are so far higher as compared with the area of production of other non-metal mineral products.
4.5. Development Trends
Data about changes in the number of employees, turnover, productivity, salaries and GDP share in the CP
and KT subsectors in the past and future forecasts are given in Table 4.2. Forecasts were assessed using
regression and autoregression models, general development trends in the Lithuanian economy and historical
statistical data. On the basis of the results obtained, forecasts are rather optimistic: turnover of the CP and
KT enterprises will continue to grow but the growth pace is likely to slow down. The average monthly gross
salary should also grow to create more attractive conditions for work in the CS companies. The number of
employees should remain almost unchanged. Slight decrease in the labour force is possible in production of
other non-metal mineral products.
Table 4.2. Change in the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and Mineral Products and Future Forecasts
CP KT
2003 2007 Change (times)
Forecast 2012
Change (times)
2003 2007 Change Forecast 2012
Change (times)
Number of enterprises 455 506 ����(+1.11) 521 ����(+1.03) 609 498 ����(-0.82) 541 ����(+1.09)
Number of employees 15663 18056 ����(+1.15) 18099 ����(+1.0) 10002 10848 ����(+1.08) 10504 ����(-0.97)
Turnover (LTL thou) 7513464 11994281 ����(+1.60) 12946309 ����(+1.08) 711413 1244508 ����(+1.75) 1485977 ����(+1.19)
Productivity (turnover/number of employees)
479.70 664.28 ����(+1.38) 715.31 ����(+1.08) 71.1 114.7 ����(+1.61) 141.5 ����(+1.23)
Average monthly gross salary
1227.34 1809.4 ����(+1.47) 2920.11 ����(+1.61) 1112.0 1660.0 ����(+1.49) 2679.0 ����(+1.61)
GDP share (%) 3.79 4.73 ����(+1.25) 4.25 ����(-0.90) 0.75 1.23 ����(+1.64) 1.22 ����(-0.99)
���� - increase; ���� - decrease
4.7. Summary
• Manufacture of fuel, chemicals, rubber, plastic and mineral products (the latter being closely related
to the development of the construction sector) during the period in question has been developing the
fastest among processing industries. The sector is dominated by oil refining creating the largest
income in the chemical industry. Contribution of fertiliser and plastic to the CS structure is constantly
increasing. In the structure of the Lithuanian chemical industry a large share is taken by basic
chemicals. The share of special chemicals, pharmaceutical products, cosmetics and household
chemical products in the breakdown of products is very small. Western Europe demonstrates
opposite trends. On the other hand, rapid growth of some enterprises and development of export
markets prove that Lithuania has a potential to develop high added-value chemical or biotechnology
industry. The sector is characterised by rather high efficiency nationally and adequate
competitiveness on the international market. Salaries of employees are among the highest in the
5 Salary before taxes.
45
national economy. The sector enterprises create about 6% of the total added value. Similar trends
will hopefully continue during next several years.
• In 2007 the number of producers of fuel, chemicals, rubber, plastic and mineral products reached
1,005 with the majority being small enterprises (of up to 9 employees). The number of enterprises in
subsectors of production of chemical and other non-metal mineral products is about the same. The
highest concentration of enterprises is in Vilnius and Kaunas Counties.
• According to the data of 2007, the sector employs almost 29 thousand employees, of whom the
majority (about 63%) – in chemical industry. Within five years (2003-2007) the number of the
employed in the sector slightly increased. The lack of employees is among the highest among
processing industries. The main problems are related with the lack of properly qualified specialists
having higher education. The biggest lack among them is that of bioengineers, biochemists,
biotechnicians, designers and technicians and programmers and marketing specialists. There is also
lack in industrial machine mechanics and operators, metalworkers and electricians. According to
preliminary data, in 2007 work permits for work at the sector enterprises were issued to 308 citizens
of other countries, about twice as many as in 2005. Of them 89% are employees in the chemical
industry subsector. Among the foreigners having obtained the work permit the majority were qualified
workers.
• Development prospects of the chemical industry are associated with large financial flows generated
by enterprises of the sector which can be used for production development and research; with
integration into the global market (e.g. production of fertilisers and biotechnologies in industry); with
development of modern technologies and cooperation of business and research organisations.
• The key factors that will have impact on the sector development in the future are tightening of the EU
environmental and sector-specific requirements; EU production transposition to Asian countries;
structure of the Lithuanian chemical industry (the major part of production is basic chemicals); limited
national investment; high costs of new and efficient technologies; increasing costs of raw materials
and the labour force; increase in demand for highly qualified employees.
46
5. CHARACTERISTICS OF THE MANUFACTURE OF FUEL, CHEMICALS, RUBBER, PLASTIC AND
MINERAL PRODUCTS SECTOR BASED ON SURVEY FINDINGS
5.1. Introduction
This section gives an overview of the sector of Manufacture of fuel, chemicals, rubber, plastic and mineral
products based on survey data. It covers analysis of activity trends and demand for employees at CS
enterprises.
The sample of mail survey was compiled based on the data of the Register of Legal Entities and taking
account of the dominating kind of economic activity (according to the statistical classifier NACE of kinds of
economic activities of the European Community) and the size of the enterprise. All in all 1,005 enterprises
were selected, of which 506 belong to the CP sector and 499 – to the KT sector. All participants of the mail
survey were asked to return the questionnaires filled in after a few weeks. After sending out questionnaires,
after some time respondents were called on the phone reminding them to return the questionnaire. To
ensure adequate return of replies, an assumption was made that the largest impact on the sector
development was done by the results of medium and large enterprises. Data about the return level
distribution by subsectors and size of enterprises are given in Table 5.1.
Table 5.1. Distribution of Respondents’ Answer Return Rate by Subsector and Size of Enterprise
CP KT
Number of employees Number of enterprises to which questionnaire was sent
Return rate %
Number of enterprises to which questionnaire was sent
Return rate %
Up to 9 254 9% 330 8%
10 to 49 186 23% 118 15%
50 to 249 60 40% 44 57%
250 and more 6 67% 7 20%
Interviews were carried out with respondents of enterprises leading in the sector of Manufacture of fuel,
chemicals, rubber, plastic and mineral products. 10 sector enterprises took part in the interviews.
5.2. Performance Indicators
Enterprise Features. According to the survey data, the majority of enterprises are established in the largest
cities of Lithuania (about 87%). Geographic distribution of enterprises is in line with statistics, i.e. the highest
production concentration is in Vilnius and Kaunas Counties. The sector is dominated by “independent
economic entities”. Enterprises of the Lithuanian capital are the majority (84%). The share of Lithuanian and
foreign capital enterprises in the CP enterprise breakdown reaches 15%, and in KT – 8% of enterprises.
About 18% of CS enterprises have branches, the majority having one or two. About 7% of respondents plan
to open new branches, mainly in the CP subsector. Based on the interview data, the process of scaling up of
enterprises and more active use of subcontractors in production are expected. This would have impact on
enterprise reorganisation and at the same time on changes in the labour force. Based on the answers
47
received, the sector enterprises do not intent to reduce the number of employees but growth of demand for
employee education and training is likely due to the need for professional development or re-training.
Competition. In evaluating the number of competitors on the market, answers of respondents were different
in the subsectors: the majority of the CP enterprises chose the answer “many” while the KT respondents
more frequently chose the answer “average”. Based on answers received, one may state that competition is
the highest among chemical enterprises.
Change of Turnover. Assessment of change in turnover actually coincides in both subsectors – in 2005,
2006 and 2007 (as compared with the previous year) turnover increased in all sector activities. This matches
the official statistics. Growth is also expected in 2008.
Business Impediments. The biggest impediments for business in chemical industry and production of other
non-metal mineral products mentioned by respondents were the taxation system and the lack of employees.
Competition and employee qualification problems are also acute.
Technological Innovations to Have Impact on Enterprise Development in Two Years. The representatives of
both the CP and the KT subsectors mainly linked business development with modern equipment and
technology and automation of production. Also, in the respondents’ opinion, important factors for
development are development of supply of products and use of new materials in production. Within the last 2
years new products or services have been implemented by 67% of respondents. Answers coincide in both
subsectors.
Use of Information Technology (IT). Data about currently used and planned information technologies are
given in Figure 5.1. The majority of enterprises in both subsectors uses IT (about 86% of respondents). The
most popular technologies include e-banking, computerised production planning and accounting and web-
based order acceptance. In the future information technologies will be used by 56% of the CP and 48% of
the KT respondents. In chemical industry subsector higher demand will be for computerized production
planning and accounting systems, and in KT – online order acceptance.
Use of Modern Technologies. Modern technologies are used by 55% and are planned to be used by 58% of
the CS respondents. Answers received lead to an assumption that activity modernisation is slightly more
intensive in chemical industry subsector than in production of other non-metal mineral products. The most
used technologies in both sectors include modern technical equipment and ISO standards. The latter
dominate also among innovations to be implemented. Among the CP enterprises, higher demand is
expected to be given to quality standards (ISO) and among the KT producers – to modern technical
equipment. Data about currently used and planned modern technologies are given in Figure 5.2.
Fig. 5.1. Distribution of Respondents’ Answers about Information Technologies Used and to Be Used
48
CP subsektorius
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
computerised production planning and accounting system
CRM (customer relations management system)
e-banking
e-commerce
online order acceptance
otheruse now
plan to use
KT subsektorius
0% 10% 20% 30% 40% 50% 60% 70% 80%
computerised production planning and accounting system
CRM (customer relations management system)
e-banking
e-cpmmerce
online order acceptance
otheruse now
plan to use
Fig. 5.2. Distribution of Respondents’ Answers about Modern Technologies Used and to Be Used
CP subsektorius
0% 10% 20% 30% 40% 50% 60% 70%
biotechnologislaser technologiesnano technologies
modern laboratory equipmentmodern technical equipment
modern environment monitoringagroenvironmental technologieseffective waste use technologies
modern waste disposal equipmentISO standards
other
use now
plan to use
KT subsektorius
0% 10% 20% 30% 40% 50% 60%
biotechnologieslaser technologiesnano technologies
modern laboratory equipmentmodern technical equipment
modern environment monitoringagroenvironmental technologieseffective waste use technologies
modern waste disposal equipmentISO standards
otheruse now
plan to use
5.3. Employees
49
Employees. Based on statistical data compiled especially for the study, the CS employs about 29 thousand
employees. Study data match this figure. The share of part-time employees in the total number of the
employed in the CS is 8%; the share of women – 29%. The sector employs mostly employees aged 30 to 49,
and the share of people aged 50 and more in the CS employment breakdown by age is 19%.
Employee Distribution by Job Groups. According to the survey data, the most numerous group in the CS is
that of qualified workers. The share of younger specialists and technicians in the breakdown structure of the
sector employees is the smallest. Detailed distribution of the employed by job groups and the CS subsectors
is shown in Figure 5.3.
Fig. 5.3. Distribution of Employees by Job Groups and CS Subsectors
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
CP
KT
managing staff
administrative staff
specialists
younger specialists and technicians
qualified workers
other employees
CP KT
Managing staff 9% 6%
Administrative staff 8% 6%
Specialists 14% 10%
Young specialists and technicians 5% 2%
Qualified workers 46% 47%
Other employees 18% 29%
Skills of Employees. According to the data of surveys performed by the Lithuanian Labour Exchange, in the
sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products personal traits and problem-
solving and information management skills are becoming increasingly important. The labour market will
continue to be dominated by the need for qualified employees with knowledge of foreign languages and
ability to us modern information technologies. Skills of working with modern laboratory and technical
environmental control equipment are important for qualified workers. In the job group of specialists
competence in design and maintenance of modern technologies and automation of technical processes are
emphasised. Employees of this group should have profound knowledge of ISO standards and waste
disposal equipment.
Survey participants were asked to mark the skills mainly missing in their employees. Both sectors have a
great lack of linguistic skills. Skills in maintenance and repairs of machines and equipment, production
process management, work planning and organisation and quality management are also important On many
occasions the lack of competence of work supervision and control, computer literacy, communication and
negotiating skills and customer service management was mentioned. Based on answers given by survey
50
participants, employees experience a lack of the ability to apply knowledge in practice, responsibility and
practical experience. Analysis of results by subsectors revealed certain differences. For instance, quality
management and work supervision and control skills are more important for chemical industry than in
production of other non-metal mineral products. The findings by subsectors are given in Table 5.2.
Table 5.2. Groups of Skills by Frequency of Answers Chosen
CP employees KT employees
language skills I language skills
work planning maintenance and repairs of machines and equipment management of production process organisation quality management work supervision and control work organisation
II management of production process organisation maintenance and repairs of machines and equipment
work organisation work planning
communication and negotiations computer literacy management of customer relations
III work supervision and control communication and negotiations
computer literacy management of customer relations
quality management
When evaluating educational services, the CS employers mentioned problems with training/educational
curricula content and teacher qualification. In their opinion, curricula offer outdated knowledge about
technologies used in the sector, teachers lack flexibility, creativity and innovative training methods and
knowledge about the real situation in the CS. The problem of planning of enrolment in high education and
vocational education and training (too many young people are admitted to higher education institutions) and
the lack of cooperation between educational and industrial enterprises have also been mentioned
Employee Training. In the CP subsector 26% of respondents pointed out that they had a written employee
training plan. In KT activities the number of such respondents was smaller and was 10% of respondents. In
2006 funds (normally up to 1% of the turnover) were allocated to employee training by about 46% of the CS
respondents, 18% more than in 2005. In chemical industry this indicator reached 52%, and in production of
other non-metal mineral products – 34% of respondents. Employee training was normally organised at the
workplace. In 2006-2007 trainees from universities, colleges and vocational schools were trained by about
20% of the CP and 18% of KT enterprises. Information provided leads to an assumption that in the CP
subsector employee training is more active than in the KT activities.
Turnover of Employees. As compared with other economic sectors (e.g. wood industry, construction,
tourism), the annual employee turnover in the CS is smaller and is about 24%. Therefore, it is to be treated
as average. Data given in Table 5.3 show that the highest turnover of employees in 2006 was among other
employees. The majority here are auxiliary packing, sorting, loading and other workers. Normally they lack
responsibility and motivation and often have bad habits. This has impact on the annual turnover indicator for
such employees. Within the following two years about 88% of the CS respondents plan to accept new
employees. The increase in the number of the employed is actually likely to happen in all job groups,
especially specialists and qualified workers. According to the interview data, this will be influenced by
increasing production scale, development of foreign markets and investments. These trends are similar in
both subsectors.
51
Table 5.3. CS Employee Turnover by Job Groups
Job groups Turnover CS
Managing staff 7%
Administrative staff 11%
Specialists 10%
Young specialists and technicians 13%
Qualified workers 20%
Other employees 55%
Sector Development Prospects. In the opinion of survey participants, development of chemical industry and
production of other non-metal mineral products will be conditioned by the process of scaling up of
companies, development of foreign markets, tightening EU requirements to quality and scale of foreign
capital. Threats are associated with the increasing competition from Asian countries, growth of prices of raw
materials and labour force costs (expected increase) and qualification.
5.4. Forecasts of Demand for Employees in the Future
The forecast of the demand for employees in the CS production sector by profession groups is calculated
having evaluated the sector development and turnover of employees. It must be pointed out that trends of
forecasts of the number of employees are different according to the survey data and statistics: in the first
case slight increase in the labour force is expected while in the second – it is decrease. This can be
explained by the fact that surveys usually cover more active enterprises quickly responding to market
changes and their answers show future trends. At the same time the grounds of statistical forecasts are data
reflecting the past. In evaluating the need for employees, two reasons for turnover were pointed out:
• some employees leaving work leave the labour market and do not return (e.g. retire). The basis for
evaluation of the number of such cases of leaving work was an assumption that every fifteenth
employee aged 50 or more behaves in this manner. According to the survey data, in 2007 the share
of these employees in the sector was 19%. This means that in each job group the sector is left
forever by about 1.3% of employees;
• other employees stay on the labour market. Thus, they have two opportunities – to go to another
enterprise in the same sector or to find a job in another economic sector. Two assumptions are
made to evaluate the number of the latter: (1) the share of employees leaving the sector is directly
proportionate to intensity of turnover; (2) if employees of a certain profession group change a job
annually on average, the probability that when moving to another job they will change the sector is
50%.
The forecast made using survey data is given in Table 5.4. No forecasts have been produced by subsectors
because of the lack of statistics.
Table 5.4. Forecasts of Demand for Employees for 5 Years
52
Job groups Number of employees 2006
Development for 5 years
Annual turnover
Leave sector within 5 years
Demand for new employees for 5 years*
Demand for new employees for 1 year*
Managing staff 2293 103 7% 172 270 50
Administrative staff 2267 163 11% 208 370 70
Specialists 3755 330 10% 326 660 130
Young specialists and technicians 1152 177 13% 119 300 60
Qualified workers 13515 532 20% 2142 2700 540
Other employees 6299 461 55% 5060 5500 1100
Total 29281 1766 *Rounded figures (in the descending order)
Table 5.5 gives the annual forecasts of the training/education needs for a period of 5 years calculated based
on the sector development and the staff turnover rate. The latter is evaluated taking account of the
breakdown of the employed in the sector by age. Annually the CS is left forever by 1.3% of the employed.
The difference between the annual need for new employees and the forecasted need for training/education
shows the annual need of continuous training (professional development or retraining). The latter is the most
prominent in the groups of qualified workers (about 250 persons) and other employees (about 930 persons),
i.e. where the employee turnover is the highest.
Table 5.5. Forecasts of Training/Education Need for 5 Years
Job groups Number of employees 2006
Development for 5 years
Turnover rate for 5 years
Training/education need for 1 year*
Managing staff 2293 103 149 50
Administrative staff 2267 163 147 60
Specialists 3755 330 244 120
Young specialists and technicians 1152 177 75 50
Qualified workers 13515 532 878 280
Other employees 6299 461 409 170
Total 29281 1766 *Rounded figures (in the descending order)
Lack of Employees. According to the findings, the sector primarily lacks qualified workers. This can be
explained by the fact that this group is the most numerous and is characterised by high annual turnover of
employees. The highest supply of vacancies is for operators of industrial machines and equipment. There is
also lack of production specialists. The lack of electricians and metalworkers was mentioned on many
occasions. The highest demand in the group of other employees is for auxiliary workers. It must be pointed
out that in the chemical industry subsector there are many vacancies for chemists and chemical process
technicians. In both subsectors there is lack of mechanical engineers and marketing, supply and sales
(domestic or foreign market) specialists.
53
5.5. Summary
• The sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products is dominated by
“independent economic entities”. Enterprises of the Lithuanian capital are the majority. Competition
is the most prominent among chemical industry enterprises. Within the last several years turnover
has been constantly increasing. It is expected to increase also next year. In the future, presumably
enterprises will scale up and production outsourcing will increase. This would have impact on
enterprise reorganisation and at the same time on changes in the labour force. Growth of demand
for employee training is likely due to the need for professional development or retraining.
• The majority of enterprises of chemical industry and other non-metal mineral products use modern
information technology. The most popular technologies include e-banking, computerised production
planning and accounting and web-based order acceptance. In the future in chemical industry
implementation of computerised production planning and accounting systems will be in greater
demand and in production of other non-metal mineral products – online order acceptance. The most
used technologies in both sectors include modern technical equipment and ISO standards. The latter
dominate also among innovations to be implemented. Implementation of modern technologies is
expected to have no practical influence on the number of employees. It must be pointed out that
modernisation of the chemical industry is more intensive as compared with production of other non-
metal mineral products.
• The sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products employs about 29
thousand employees, the majority of them being men. The age of the majority of employees is
between 30 and 49 years. The share of part-time employees in the total number of the employed in
the sector is 8%. By groups of jobs the most numerous group is that of qualified workers.
• Production modernisation has impact on changes in skills. Manufacture of fuel, chemicals, rubber,
plastic and mineral products will be dominated by the demand for qualified employees knowing
foreign languages and able to use modern information technologies. At present the labour force
qualification is not adequate for the sector needs: there is lack of knowledge of foreign languages
and skills in maintenance and repairs of machines and equipment, production process management,
work planning and organisation and quality management. Employees especially lack the ability to
apply knowledge they have in practice, responsibility and practical experience. The lack of skills is
largely associated with problems of the training/education curriculum and teacher qualifications as
well as insufficient cooperation between educational and industrial enterprises.
• Development of Manufacture of fuel, chemicals, rubber, plastic and mineral products will in the future
be influenced by the process of scaling up of companies, development of foreign markets, tightening
EU requirements to quality and scale of foreign capital. The following are the key hindrances to
business: tax system and lack of employees. Threats are associated with the increasing competition
from Asian countries, growth of prices of raw materials and labour force costs (expected increase)
and qualification.
• Turnover of employees in chemical industry and production of other non-metal mineral products is
average and reaches 24%. It is the highest among other workers where the majority are auxiliary
packing, sorting, loading and other workers. Normally they lack responsibility and motivation and
have bad habits. The majority of the sector enterprises plan to accept employees within the following
54
2 years. Due to increase of production scale, development on foreign markets and level of
investment the number of the employed is expected to slightly increase in all groups of occupations.
• The sector primarily lacks qualified workers. This can be explained by the fact that this group is the
most numerous and is characterised by high annual turnover of employees. The highest supply of
vacancies is for operators of industrial machines and equipment. There is also lack of production
specialists, electricians and metalworkers. Among specialists there is lack of mechanical engineers
and marketing, supply and sales (domestic or foreign market) specialists. In the chemical industry
subsector there are many vacancies for chemists and chemical process technicians.
55
6. SUPPLY OF EMPLOYEES
6.1. Introduction
This chapter provides brief information on education and job groups and trends in employee supply in the
construction sector. The supply of employees is understood as an output of education, i.e. of what
qualification and how many employees are trained. The main data include parameters of entry, graduation,
education acquired and/or qualification. Analysis is performed based on statistical data compiled especially
for the study, information available on training/education programmes and findings of surveys of vocational
schools on employment of graduates.
6.2. Education and Job Groups
Training achievements are best defined by qualification6. In order to acquire a certain qualification, one has
to have the basic education7. Education levels in Lithuania are set out in the structure of the education
system. According to it, a person can acquire elementary, basic, secondary, higher and high education.
Pursuant to the Law of the Republic of Lithuania on Vocational Education and Training (new wording)8,
qualification is based on competences9, which comprise knowledge, skills and value scales. Qualification
and separate competences are laid down in certain documents provided for in the Law on Vocational
Education and Training and the Law on Higher Education of the Republic of Lithuania10. Qualification is the
outcome of formal education11 or other educational attainment. According to their content, training/study
programmes are grouped into different areas of education (‘Classification of the Lithuanian Education’).
Vocational education and training may be primary and continuing. The purpose of primary vocational
education and training is to obtain qualification and the purpose of continuing training is to upgrade the
existing qualification or obtain a new one. The study examines one part of the continuous vocational
education and training: training of the unemployed.
Presently, primary vocational training and education is carried out pursuant to the following four-stage
programmes:
Stage I. The training programmes of this stage only admit persons without basic education.
The training duration is two to three years if basic education is pursued. After completing the
training programmes, the graduates are given a qualification certificate.
6 Qualification: ability and right to engage in a certain professional activity, as recognised according to a procedure
prescribed in law or in legislative acts of the Government or its authorised institution. Republic of Lithuania Law on
Education. 7 Education level: competence, knowledge, skills, abilities and values, demonstrating a particular level of personal
development, attainment thereof is recognised according to a procedure prescribed by the Government or its authorised
institution. Republic of Lithuania Law on Education. 8 A new version of the law was adopted in 2007 and is effective of 1 January 2008.
9 Competence: ability to perform a certain activity on the basis of the entirety of acquired knowledge, skills, abilities
and values. Republic of Lithuania Law on Education. 10
Republic of Lithuania Law on Education (new version effective as of 28 June 2003), Article 39, Paragraph 3. 11
Formal education: education implemented according to the programmes approved and registered in accordance with
a procedure prescribed by legal acts, the completion of which results in the attainment of a primary, basic, secondary,
post-secondary or higher education level and/or a qualification. Republic of Lithuania Law on Education.
56
Stage II: The training programmes of this stage admit persons with basic education, seeking
to acquire vocational qualification. The training duration is two years. After completing the
training programmes, the graduates are given a diploma of vocational training and education.
Stage III: The training programmes of this stage admit persons with basic education, seeking
to acquire vocational qualification and general secondary education. The training duration is
three years. After completing the training programmes, the graduates are given a diploma of
vocational education and training.
Stage IV: The training programmes of this stage admit person with secondary education. The
training duration is from one to two years. After completing the training programmes, the
graduates are given a diploma of vocational education and training.
University studies of higher education are more oriented towards academic activities, whereas non-university
studies focus on applied activities.
With regard to employment activity, the main variable is an occupation post, i.e. the collection of functions for
the performance of which remuneration is paid. The performance of such functions requires a certain level of
education and a number of relevant skills. In that way, the occupation post may be expressed in terms of
education and skills. Occupation posts are usually grouped using the ISCO12 or SOC13 classifications. Both
of them are compatible. The ISCO served as the basis for the Classification of Lithuanian Professions (a
profession is linked to the hour of actual work)14.
The study analyses the supply of employees by comparing the data on education and occupation posts
according to the diagram presented below (Fig. 6.1).
12 International standard classification of occupations 13 Standard occupational classification 14
International standard classification of occupations
57
Fig. 5.1. Employee supply assessment scheme
6.3. Supply of Employees by Areas of Education and Level of Education
Analysis of changes in employment by job groups shows that in 2004-2006 the group of qualified workers in
commercial agriculture and fisheries sector decreased the most and the group of legislators, higher state
officials, managers of enterprises, institutions and organisations and others increased. The share of
specialists (including civil servants) in the employment breakdown structure in 2006 was slightly smaller than
30%, that of workers – about 60% (Table 6.1).
Table 5.1. Structure of the employment by the job groups
Change from 2004 to 2006
Job groups 2006 m.
19% ���� Legislators, senior officials and managers 9%
7% ���� Professionals 17%
5% ���� Technicians and asociate professionals 9%
4% ���� Clerks 4%
29,5%
13% ���� Service workers and shop and market sales workers 13%
-27% ���� Skilled agricultural and fishery workers 9%
12% ���� Craft and related trades workers 19%
9% ���� Plant and machine operators and assemblers 10%
50,8%
4% ���� Elementary occupations 11% 10.7%
-8% ���� Armed forces (hired workers) 0%
���� - increase; ���� - decrease
Initial vocational education and training
Higher education (university and non-university)
Education and training of the unemployeed
1 2 3 4 stages
Plant and machine operators and assemblers
job groups
Education
Service workers and shop and market sales workers
Skilled agricultural and fishery workers
Craft and related trades workers
Professionals Technicians and asociate professionals
Clerks
58
According to the data available, in 2006 vocational education and training programmes enrolled 19,913
youngsters, 3% fewer than in 2005. The demand for bachelor’s studies in 2006 slightly increased: 47,240
students were admitted, i.e. 2% more than in 2005. Professions preferred by those choosing vocational
education and training were business and administration and engineering and engineering professions,
those opting for high education – business and administration. In fact, the same trends dominated in 2005.
Detailed data about the breakdown of youngsters accepted for training/education by educational areas are
given in Figure 4.2.
The breakdown of the number of graduates by areas of education coincides with the enrolment breakdown,
i.e. the majority are young people graduating from training/education programmes in business and
administration, and the number of graduates of vocational education and training programmes is more than
twice as small as that of graduates of high education institutions. It must be pointed out that the number of
graduates of vocational education and training in 2006 was 11% lower than in 2005. The number of
graduates of high education institutions increased by 12% within this period.
The data given show that although on the market employment among workers is twice as high as compared
with the number of specialists (including civil servants) but according to training/education enrolment data the
share of young people in vocational education and training is more than twice as small as that of enrolled in
high education. This has impact on ratios of graduates of vocational education and training and high
education. Therefore, in the future the gap between the supply of and the demand for workers can still
increase and cause serious problems for business development.
Fig. 6.2. Distribution of Students Enrolled in 2006 for Training/Education by Areas of Education
0% 10% 20% 30% 40% 50% 60%
personal skillsteacher training and pedagogics
artshumanitarian disciplines
social and behaviour sciencesjournalism and information
business and administrationlaw
natural sciencesphysical sciences
mathematics and statisticsIT
engineering and engineering professionsmanufacture and processingarchitecture and constructionagriculture, forestry, fishery
veterinary sciencehealth care
social servicespersonal servicestransport services
environment protectionsecurity services
vocational high
59
6.4. Supply of Employees in the Sector of Manufacture of fuel, Chemicals, Rubber, Plastic and
Mineral Products
While implementing a training/study programme, the future employees are usually trained for a certain group
of activities, rather than one concrete occupation posts. The activities of different economic sectors often
overlap. Certain competences needed for CS works are also available e.g. in construction, environment
protection and food industry. As a result, it is quite difficult to name the programmes aimed at training the
employees for a particular sector, because graduates of different study programmes may find employment in
a variety of economic sectors. Therefore, while looking at the supply of employees, all the programmes were
taking into consideration, the graduates from which could be employed in the CS and On the basis of the
information provided about study programmes (programmes) in the Open Information, Counselling and
Guidance System (AIKOS), they are divided into the following two groups:
• Group 1. It comprises the programmes that focus of competences required by the CS. The study
presumes that the majority of the graduates from this group of programmes find employment in
enterprises of the sector of Manufacture of fuel, chemicals, rubber, plastic and mineral products.
• Group 2. The majority of its programmes are aimed at developing competences required by the
other sectors. The majority of the graduates should find employment in other sectors and only a
small share of them gets employed in the CS, e.g. environment engineers.
6.4.1. Supply of Skilled Workers in CS
Having selected the primary vocational education and training programmes important for the CS sector by
the method described above, information about the number of graduates in 2007 and employment thereof
was collected from all vocational schools provided such training and education. Survey data are given in
Table 6.2. Employment data are general. Based on answers of vocational schools, after graduation 69% of
graduates get employed. The remaining 31% serve in the army, study, go to other countries, etc. Schools did
not have detailed information about economic sectors where the graduates work.
Table 6.2. Primary Vocational Education and Training Programmes in CS and Number of Graduates*
2006 graduates Primary vocational education and training programme
Total Employed Supply of workers in CS
Group I Oil products operator 10 7 7
Mechanic for electric and automation equipment 25 17
Electric mechanic for electric devices 91 63
Industrial equipment repairs specialist** 0 0
Industry mechanic 91 63
Metalworker 37 26
Group II
Metalworker and repairs specialist 215 148
317
*Brief descriptions of programmes shown in table are given in Annex 1. **In 2006 students were enrolled to be trained in this programme
60
For the sector in question employees are also trained under the labour market vocational education and
training programmes included in the Register of Study and Training Programmes. According to available
information, there are 35 such programmes. It must be pointed out that providers of some programmes (e.g.
nitrogen fertiliser production operator, chemical product production operator, oil and oil product chemical test
laboratory specialist) are CS companies (e.g. the training centre of Achema UAB, Mažeikių Nafta AB).
According to the Lithuanian Labour Market Training Authority, in 2006 for the CS a little more than 400
persons were trained. Moreover, there are also informal training programmes intended for acquiring
competences needed for the CS. For example, the outline of the labour market informal training programmes
(http://www.ldrmt.lt/mod/nf_reg/) contains a training programme for an employee working with hazardous
chemical substances in laboratory settings. Unfortunately, data about graduates of continuing vocational
education and training programmes are not collected systemically and thus the quantitative assessment of
the supply was not conducted.
6.4.2. Supply of Specialists and Technicians for the CS Sector
Data about high education non-university and university study programmes which train specialists for the CS
sector are given in Table 6.3. According to the data available, in 2006 about 460 youngsters were enrolled in
CS programmes of the first group, slightly fewer than in 2005. In total in 2006, 300 students graduated from
them, of them 227 completed the first level of education. Opportunities to assess employment options are
very limited because only a small share of high education schools keeps track the further career of their
graduates. According to their data, about 70% of graduates on average get employed. In assessing the
supply, graduates of master’s studies are not included because on the one hand, the majority of master
students work, and on the other hand, the master’s degree can only be pursued by those having obtained
the bachelor’s degree and the latter are included in the supply. Having assessed all these aspects, one can
see that the supply of specialists for the CS sector in 2006 was about 159 persons under Group 1 study
programmes.
Table 6.3. High Education Study Programmes for Specialists for CS Sector*
2006 graduates Primary vocational education and training programme
Total Employed
Supply of specialists and technicians for
SS sector
Non-university studies
Chemical analysis technology 22 15 15
Chemistry 70 49
Chemical engineering 11 8
Chemical technology and engineering 22 15
Applied chemistry 29 20
Biochemistry 18 13
University bachelor’s studies
Environmental engineering 55 39
144 159
Chemistry 40
Chemical engineering 13
Chemical technology 7
Group I
Master’s studies
Biochemistry 13
73
61
Environment protection 105 74
Environment protection and ecology 40 28
Electric and automation equipment 287 201 Non-university
studies
Engineering of mechanic technologies 24 15
318
Biophysics 7 5
Bioengineering 28 20
Environmental engineering 64 45
Environment and professional safety 24 17
Bioinformation** 0 0
Electric engineering 59 41
Group II
University bachelor’s studies
Mechanic engineering 155 109
237
555
*Brief descriptions of qualifications granted are given in Annex 2. **In 2005-2006 students were enrolled.
6.5. Summary
The forecast of the demand for employees in the CS production sector by profession groups is calculated
having evaluated the sector development and turnover of employees (more details in Section 5.4). The study
is based on the view that the need for employees emerging due to sector development and persons leaving
the labour market because of age and other reasons should be compensated by the primary vocation
education and training system. Demand for and supply of employees in the CS sector is given in Table 6.4.
Supply and demand are calculated in accordance with the data given in Tables 5.5, 6.2 and 6.3.
6.4. Table. Demand for Employees and Supply of Primary Vocational Education and Training and High Education in the CS Sector by Job Groups with Lack of Employees Job groups Demand for new employees
for 1 year Need for primary training* Annual supply (as of 2006) Assessment of
balance of demand and supply
Specialists and technicians
190 170 About 159 (Group I) About 555 (Group II)
Medium
Skilled workers 540 280 About 7 (Group I) About 317 (Group II)
Negative
*New employees who will have to replace those leaving the labour market and compensate for the need for employees related to sector development
The survey has shown that in the breakdown structure of employees of the sector of Manufacture of fuel,
chemicals, rubber, plastic and mineral products a large share is held by jobs which require a qualification
suitable practically for all processing production branches. For example, metalworkers and electricians.
Therefore, it is quite difficult to assess the match of the supply and demand of specialists and qualified
workers in the CS.
According to the survey data, primary vocational education and training still does not fully meet the CS needs
for qualified workers. First, at present the supply of training programmes that focus on competences required
by the CS is not actually formed. Second, supply of employees under programmes after graduating from
which young people can work in different industry sectors is deemed to be inadequate. This statement is also
62
confirmed by the lack of employees in this group identified by the survey. Analysis completed gives grounds
for stating that labour force problems in the group of qualified workers are attributable both to the number of
people and their qualification. It must be pointed out that the above problems are already being addressed.
For example, at present draft standards for vocational training of the chemical production operator, oil
products operator, chemical analysis laboratory specialist and oil refining technical equipment operator
(www.pmmc.lt) are being drafted which will help to improve the supply of initial vocational education and
training programmes focusing mainly on acquisition of the sector competences.
Data given in Figure 4.6 show that the greatest lack of employees is felt among specialists but it must be
pointed out that the share of them in the breakdown structure of sector jobs is 3.5 times smaller than that of
qualified workers. The number of graduates by high education study programmes for the sector in question
almost meets the annual need for primary education and training (Table 6.4). Moreover, the supply of
specialists by Group 1 and Group 2 study programmes exceeds that of qualified workers more than twice.
Salaries in the sector as compared to the country’s average are rather attractive. Therefore, theoretically
there should be no lack of employees. To sum up the above information, the lack of specialists in the sector
of Manufacture of fuel, chemicals, rubber, plastic and mineral products is likely to be more vividly manifested
in the lack of skills, i.e. the qualification of employees is inadequate to meet job requirements and not in the
number of people.
Continuing education and training gets the “order” to train about 250 qualified workers and about 930 other
employees within a year. This need is partly catered for through training of the unemployed. However
according to the survey data (see more in Section 5.3) the large part thereof is compensated by enterprises
proper by carrying out trainings at workplace or training institutions.
63
7. RECOMMENDATIONS
7.1. Recommendations to Reduce the Gap between Demand and Supply of Employees in the
Manufacture of Fuel, Chemicals, Rubber, Plastic and Mineral Products sector
• Manufacture of fuel, chemicals, rubber, plastic and mineral products is one of the most rapidly
developing industry branches in Lithuania. So far much attention has been given to increase of
production efficiency. Now research the results whereof are intended for creation of new products and
efficient technological processes is actively developed. This requires substantial investments. Thus, it is
particularly important to create an environment promoting cooperation between educational and
business institutions which would be attractive for foreign investors.
• According to the study data, there is lack of qualified workers in the sector of Manufacture of fuel,
chemicals, rubber, plastic and mineral products. It is to be attributed both to the number of people and
the insufficient compliance of qualification with job requirements. The above problems are addressed
together with sector enterprises by drafting standards for vocational training of the chemical production
operator, oil products operator, chemical analysis laboratory specialist and oil refining technical
equipment operator (www.pmmc.lt). Further tasks would be based on these standards to draft primary
vocational education and training programmes and the practical training facilities matching them, to
improve professional qualification of teachers providing more knowledge about technologies used in the
sector and to form groups of students. In order to improve the supply of employees, a proposed solution
is to improve the planning of enrolment in high education and vocational education and training schools
by increasing the number of students in primary vocational education and training. One of possible tools
is to implement gradual training where after acquiring a lower-level qualification and work experience
conditions are created for acquisition of higher-level education; This would help not only to regulate
employee supply flows but would also have positive impact on the quality of training/studies.
• As regards sector modernisation, creation of new products and technical processes, EU requirements to
quality, development on foreign markets and competition increase, the demand for highly qualified
specialists is increasing. At present there is lack of knowledge of foreign languages and skills in design
and maintenance of modern technologies, automation of technical processes, quality management, work
planning and organisation. Particular focus is placed on the lack of the ability to apply knowledge in
practice and practical experience. Therefore, to ensure proper qualification of employees, it is necessary
to update study programmes in accordance with identified needs for skills. Study programmes must pay
more attention to acquisition of knowledge in sciences (mathematics, physics, chemistry). Another
recommendation is to change traditional ways of training replacing them with modern teaching
methodologies helping to learn how to use knowledge in solving practical tasks, to upgrade
research and development facilities providing research laboratories with modern equipment and
to develop practical training of specialists in cooperation with the sector enterprises.
• Given the lack of employees in chemical industry and production of other non-metal mineral products
and insufficient training/study capacity to meet the demand for the labour force in the sector both
quantitatively and qualitatively, particular attention should be devoted to enhancement of cooperation
between employers and training providers. This could be realised by such measures as joint meetings,
64
career days, practical training, etc. In the opinion of interview participants, employers should participate
in management of vocational education and training schools, drafting of training/study curricula, research
to identify the need for training/studies in the sector, training of specialists and workers providing
practical training facilities and improving teacher qualification. Attention must also be paid to
improvement of mutual information exchange flows, e.g. by providing targeted information about
employee training and changes in chemical industry and on the market of production of other non-metal
mineral products. This would help to duly specify the requirements to training/study contents and expand
opportunities for training of the sector employees.
65
REFERENCES
1. Baran, D. and Mikloš, M. (2006) European Chemical Industry- The Past, Present and Future. VADYBA / MANAGEMENT. 2006 m. Nr. 2(11)
2. Bureau of Labor Statistics (2005) Chemical Manufactoring Data. Available at: http://www.bls.gov/oco/cg/cgs008.htm
3. CEFIC (ed.) (2004) Chemical Industry 2015: Roads to the future. Brussels: European Chemicals Industry Council (CEFIC). Available at: http://www.cefic.org/Templates/shwStory.asp?NID=472&HID=427
4. CEFIC, (2005) Cefic Review 2004-2005. Trust and partnership: Towards a new vision for Europe’s chemical industry. Brussels: European Chemical Industry Council (CEFIC). Available at: http://www.cefic.be/Files/Publications/Cefic_Review_2004.pdf
5. Chemistry Leadership Council (2004) Skills for the 21st Century Chemicals Industry. Speech to Dicida Conference November 26th 2004. Available at: http://www.chemistry.org.uk/pages/8/press/clc-speech-dicidaconf.pdf
6. European Monitoring Centre on Change (EMCC) (2005) Sector Futures: The Chemicals Sector- What Future? Visions of the Future, Challenges, Policy Issues and the Future. Dublin: European Foundation for the Improvement of Living and Working Conditions. Available at: http://www.eurofound.europa.eu/emcc/publications/2005/ef0562en1-3.pdf
7. Eurostat (2004) Statistics in Focus: Industry, Trade and Services. Available at: www.europa.eu.int/comm/eurostat
8. Eurostat (2005) Quarterly Panorama of the European Business Statistics, Luxembourg: Office for Official Publications of the European Communities, No. 2. Available at: http://epp.eurostat.cec.eu.int/cache/ITY_OFFPUB/KS-DL-05-002/EN/KS-DL-05-002-EN.PDF
9. Eurostat (2006) European Business: Chapter 5-Chemicals, Rubber and Plastics. Available at: http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1073,46587259&_dad=portal&_schema=PORTAL&p_product_code=KS-BW-06-001-05
10. Expert Group on Future Skills Needs (2000) Responding to Ireland’s Growing Skill Needs: The second report of the Expert Group on Future Skills Needs. Available at: http://www.skillsireland.ie/press/reports/pdf/egfsn0003_2nd_skills_report.pdf
11. Hadhri, M. and Weigel, A. Chemical Trends Report No. 2007-04. CEFIC. Available at: http://www.cefic.org/files/Downloads/2007-04CeficChemicalsTrendsReport.pdf
12. Institute for Prospective Technological Studies (IPTS) (2005) Implementation of REACH in the new Member States. Brussels: European Commission, Joint Research Centre (JRC). Available at: http://europa.eu.int/comm/enterprise/reach/docs/reach/ipts_report.pdf
13. Skills Development Group of the Chemistry Leadership Council (2004) Skills for the 21st Century Chemicals Industry. Available at: http://www.chemistry.org.uk/pages/8/press/SKILLSREPORT.doc
14. Thomas, S. (2005) Chemicals- Visions of the Future. Dublin: European Foundation for the Improvement of Living and Working Conditions.
15. Verslo žinios, 2006 m. spalio 15 d. 16. Horizont 2015: Perspectives for European Chemical Industry. CEFIC, 2004. 17. Lietuvos Respublikos Ūkin÷s veiklos poveikio aplinkai vertinimo įstatymas. 1996 m. rugpjūčio 15, 18. nr. I-1495, Vilnius 19. D÷l planuojamos ūkin÷s veiklos poveikio aplinkai vertinimo atlikimo kokyb÷s įvertinimo atmintin÷s
patvirtinimo. Lietuvos Respublikos Aplinkos ministro Įsakymas. 2000 m. liepos 17 d. nr 305. 20. Paaiškinimai d÷l taršos integruotos prevencijos ir kontrol÷s (TIPK) leidimų išdavimo, atnaujinimo ir
panaikinimo taisyklių taikymo. Aplinkos ministerija, Vilnius, 2002. 21. REACH – naujoji ES cheminių medžiagų politika, EIC biuletenis, nr. 16, Vilnius, 2006 22. Lietuvos nacionalin÷s sąskaitos 2004. Statistikos departamentas, Vilnius, 2007 23. Lietuvos makroekonomikos apžvalga. Nr 27. SEB Vilniaus bankas, Vilnius, 2007 24. Ūkio subjektai. Pagrindiniai duomenys 2006. Statistikos departamentas, Vilnius, 2007 25. Pagrindiniai įmonių veiklos vertinimo rodikliai 2004. Statistikos departamentas, Vilnius, 2005 26. Pagrindiniai įmonių veiklos vertinimo rodikliai 2005. Statistikos departamentas, Vilnius, 2006 27. Įmonių finansiniai rodikliai 2005. Statistikos departamentas, Vilnius, 2007 28. Įmonių finansiniai rodikliai 2006/I-IV. Statistikos departamentas, Vilnius, 2007 29. Gaminių gamyba 2004. Statistikos departamentas, Vilnius, 2005 30. Gaminių gamyba 2005. Statistikos departamentas, Vilnius, 2006 31. Gaminių gamyba 2006. Statistikos departamentas, Vilnius, 2007 32. Darbo j÷ga, užimtumas ir nedarbas (tyrimo duomenys) 2000-2006. Statistikos departamentas, 33. Vilnius, 2007 34. Darbo statistikos metraštis 2005. Statistikos departamentas, Vilnius, 2006
66
35. Lietuvos verslo lyderiai 2005/2006. Verslo žinios, Vilnius, 2006 36. Lietuvos įmonių TOP-1000 2005. Verslo žinios, Vilnius, 2006 37. Lietuvos įmonių TOP-1000 2006. Verslo žinios, Vilnius, 2007 38. Darniosios chemijos platformos strateginių tyrimų planas. Lietuvos chemijos pramon÷s įmonių
asociacija, Vilnius, 2006. 39. www.cefic.com 40. www.lrs.lt 41. www.stat.gov.lt 42. www.ukmin.lt 43. www.amin.lt 44. www.ntplatformos.lt
ANNEX 1
CS sektoriaus darbininkų (operatorių) įgyjamų kompetencijų ir geb
÷jimų ap
rašai pagal pirm
inio profesinio mokym
o programas
Naftos produktų operatorius
Elektros ir autom
atikos įrenginių
mechaniko
Elektros įrenginių elektrom
echaniko
Pram
on÷s įrenginių remontininko
Kom
petencijos ir
geb÷jim
ai
Saug
iai d
irbti.
Nau
dotis
inform
acin÷m
is te
chno
logijomis.
Paim
ti na
ftos prod
uktų ÷minius.
Tran
sportuoti n
aftą ir naftos prod
uktus.
Sand
÷liuoti n
aftą ir naftos prod
uktus.
Aptarnau
ti reze
rvua
rų parkų
pag
albinę
įra
ngą.
Aptarnau
ti va
mzd
ynus
ir vam
zdinę
armatūrą, siurbliu
s.
Vykd
yti n
aftos ir jos prod
uktų aps
kaitą
ir
tvarky
ti tra
nspo
rtinę
dok
umen
taciją.
Atlikti na
ftos prod
uktų krovo
s da
rbus
. Ko
mpa
undu
oti p
rekinius
naftos prod
uktus.
Aptarnau
ti su
skys
tintų dujų de
galin
es.
Aptarnau
ti klientus
deg
alin÷s
e.
Valyti nu
otek
as nuo
teršalų.
Paga
minti ch
eminius reag
entų tirpalus
tech
nologiniam
s proc
esam
s vy
kdyti.
Įvertin
ti ve
rslo aplinką
.
Sa
ugiai d
irbti.
Skaityti ir braižy
ti elek
tros sc
hemas
. Nau
dotis
inform
acin÷m
is te
chno
logijomis.
Mon
tuoti ir e
ksploa
tuoti j÷g
os įren
ginius
. Mon
tuoti ir e
ksploa
tuoti e
lektros pa
varas.
Mon
tuoti ir e
ksploa
tuoti a
ukštos
ios
įtampo
s sk
irstomuo
sius
įren
ginius
. Mon
tuoti ir e
ksploa
tuoti e
lektros tie
kimo
oro lin
ijas.
Mon
tuoti k
abelines
elektros tie
kimo lin
ijas.
Eksp
loatuo
ti relin
es aps
augo
s ir
automatikos
įren
ginius
. Ek
sploatuo
ti elek
troniko
s įre
nginius.
Rem
ontuoti k
ontro
l÷s matav
imo
įreng
inius.
Eksp
loatuo
ti au
tomatikos
įren
ginius
. Mon
tuoti a
utom
atikos
įren
ginius
. Įvertin
ti ve
rslo aplinką
Sa
ugiai d
irbti.
Skaityti elek
tros sc
hemas
. Matuo
ti elek
trinius
ir nee
lektrin
ius
dydž
ius.
Mon
tuoti ir e
ksploa
tuoti a
pšvietim
o įre
nginius.
Mon
tuoti ir e
ksploa
tuoti j÷g
os įren
ginius
. Mon
tuoti ir e
ksploa
tuoti e
lektros pa
varas.
Mon
tuoti ir e
ksploa
tuoti a
ukštos
ios
įtampo
s sk
irstomuo
sius
įren
ginius
. Mon
tuoti ir e
ksploa
tuoti trans
form
atorių
pastoč
ių įren
ginius
. Mon
tuoti ir e
ksploa
tuoti e
lektros tie
kimo
oro lin
ijas.
Mon
tuoti k
abelines
linijas.
Eksp
loatuo
ti relin
÷s aps
augo
s ir
automatikos
įren
ginius
. Ek
sploatuo
ti elek
troniko
s įre
nginius.
Atlikti pa
grindine
s ša
ltkalvio op
erac
ijas.
Įvertin
ti ve
rslo aplinką
. Nau
dotis
inform
acin÷m
is te
chno
logijomis.
Sa
ugiai d
irbti.
Nau
dotis
inform
acin÷m
is te
chno
logijomis.
Padidinti m
etalo pa
viršiaus
tiks
lumą
spec
ialia
is in
strumen
tais.
Sujung
ti plon
us m
etalus
. Atlikti ša
ltkalvy
st÷s
ope
racijas.
Dirb
ti elek
trinio su
virin
imo įre
nginiais ir
aparatūra.
Dirb
ti du
jinio suv
irinimo įre
nginiais ir
aparatūra.
Rem
ontuoti k
eliamuo
sius
mec
hanizm
us.
Rem
ontuoti s
takles
. Gam
inti de
tales tekinimo stak
l÷mis.
Gam
inti de
tales fre
zavimo stak
l÷mis.
Apdo
roti de
tales šlifa
vimo stak
l÷mis.
Įvertin
ti ve
rslo aplinką
.
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Naftos prod
uktų tran
sportavimas
; naftos
prod
uktų san
d÷lia
vimas
; tec
hnolog
inio
vamzd
yno be
i įrang
os eks
ploa
tavimas
; na
ftos prod
uktų krovo
s da
rbai; k
lientų
aptarnav
imas
deg
alin÷s
e.
Elek
trotech
ninių įre
nginių m
ontavimas
ir
eksp
loatac
ija; k
abelinių linijų m
ontavimas
; au
tomatikos
ir elektroniko
s įre
nginių
mon
tavimas
ir eks
ploa
tacija.
Elek
tros įre
nginių m
ontavimo da
rbai;
žemos
ios įta
mpo
s įre
nginių m
ontavimas
ir
eksp
loatav
imas
, auk
štos
ios įta
mpo
s sk
irstomųjų įre
nginių m
ontavimas
ir
eksp
loatav
imas
; elektros en
ergijos
perdav
imo įre
nginių m
ontavimas
ir
eksp
loatav
imas
; elektroniko
s įre
nginių
eksp
loatav
imas
; šaltkalvy
st÷s
darba
i.
Metalo de
talių
gam
yba su
virin
ant; metalo
detalių
gam
yba taikan
t šaltkalvy
st÷s
tech
nologijas; staklių re
mon
tas; keliamųjų
mec
hanizm
ų remon
tas.
68
Pram
on÷s mechaniko
Šaltkalvio
Šaltkalvio remontininko
Kom
petencijos ir
geb÷jim
ai
Saug
iai d
irbti.
Nau
dotis
inform
acin÷m
is te
chno
logijomis.
Padidinti m
etalo pa
viršiaus
tiks
lumą
spec
ialia
is in
strumen
tais.
Sujung
ti plon
us m
etalus
. Atlikti ša
ltkalvy
st÷s
ope
racijas.
Dirb
ti elek
trinio su
virin
imo įre
nginiais ir
aparatūra.
Dirb
ti du
jinio suv
irinimo įre
nginiais ir
aparatūra.
Rem
ontuoti k
eliamuo
sius
mec
hanizm
us.
Rem
ontuoti s
takles
. Gam
inti de
tales tekinimo stak
l÷mis.
Gam
inti de
tales fre
zavimo stak
l÷mis.
Apdo
roti de
tales šlifa
vimo stak
l÷mis.
Įvertin
ti ve
rslo aplinką
.
Sa
ugiai d
irbti.
Skaityti da
rbo br÷ž
inius.
Nau
dotis
inform
acin÷m
is te
chno
logijomis.
Atlikti pa
grindine
s ša
ltkalvy
st÷s
op
erac
ijas.
Sujung
ti de
tales.
Surin
kti m
echa
nizm
us.
Išba
ndyti m
echa
nizm
us.
Defek
tuoti įreng
inius.
Rem
ontuoti įreng
inius.
Reg
uliuoti ir a
ptarna
uti įreng
inius.
Tekinti m
etalą.
Frez
uoti metalą.
Įvertin
ti ve
rslo aplinką
.
Mok
÷ti p
asirink
ti ša
ltkalvišk
us įran
kius
ir
įreng
imus
. Atlikti ša
ltkalviškus
darbu
s: žym
÷ti, kirsti,
lenk
ti, pjauti, lenk
ti, dild
yti, su
leisti, lituoti,
kliju
oti.
Ran
kiniu bū
du srie
gti išo
rinius ir vidinius
sriegius
, gilinti ir p
l÷sti.
Mok
÷ti s
augiai dirb
ti.
Skaityti da
rbo br÷ž
inius.
Paruoš
ti įre
ngim
us re
mon
tui.
Atlikti ardy
mo da
rbus
. Matuo
ti ir de
fektuo
ti de
tales.
Keisti išdilusias
detales
. Rem
ontuoti k
orpu
sine
s de
tales.
Surin
kti n
esud
÷tingu
s maz
gus.
Išba
ndyti įreng
imus
ir atlikti n
esud
÷tingu
s regu
liavimo da
rbus
.
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Metalo de
talių
gam
yba su
virin
ant; metalo
detalių
gam
yba taikan
t šaltkalvy
st÷s
tech
nologijas; staklių re
mon
tas; keliamųjų
mec
hanizm
ų remon
tas.
Detalių gam
yba taikan
t šaltkalvyst÷s
op
erac
ijas; m
echa
nizm
ų diag
nostika ir
aptarnav
imas
; mec
hanizm
ų remon
tas.
Įvairių
įren
gimų (staklių, m
ašinų
mec
hanizm
ų) profilak
tinis ir vidutinis
remon
tas; š
altkalvy
st÷s
, rem
onto ir
surin
kimo op
erac
ijos; įren
gimų, m
ašinų ir
mec
hanizm
ų tech
ninis ap
tarnav
imas
; išardy
mas
, reg
uliavimas
ir ban
dymas
; su
sid÷
v÷jusių de
talių
pak
eitim
as ir
remon
tas; įren
ginių, įran
kių ir įta
isų
ruoš
imas
darbu
i.
ANNEX 2
CS sektoriaus specialistų ir technikų rengimo studijų programos
Programa Suteikiama kvalifikacija Kvalifikacijos aprašas
Neuniversitetinių studijų programos (trukm÷ 3-3,5 metai)
Chemin÷s analiz÷s technologija
(Studijų sritis – Inžinerija ir inžinerin÷s profesijos)
chemijos inžinerijos profesinis bakalauras; technologas
Absolventai specializuojasi vienoje iš sričių: cheminių bandymų technologijos; polimerų technologijos; cheminio valymo, skalbimo technologijos.
Chemin÷s analiz÷s technologai rengiami dirbti chemijos pramon÷s, maisto pramon÷s įmonių, mokslinio tyrimo institutų, sveikatos centrų, aplinkos apsaugos tarnybų, teismo ekspertiz÷s, mokymo įstaigų chemijos laboratorijose. Polimerų technologai rengiami dirbti plastmasių perdirbimo įmon÷se. Cheminio valymo, skalbimo technologai rengiamas dirbti cheminio valymo, skalbimo paslaugas teikiančiose įmon÷se.
Aplinkos apsauga (Studijų sritis – Aplinkosauga)
aplinkos inžinerijos profesinis bakalauras; inžinierius
Absolventai gal÷s organizuoti ir vykdyti aplinkosauginę veiklą, projektuoti naujas technologijas, prognozuoti ir organizuoti aplinkosauginę veiklą technologijų objektuose ekstremalių situacijų metu, organizuoti ir vykdyti atliekų surinkimą, tvarkymą bei utilizavimą.
Aplinkosauga ir ekologija (Studijų sritis – Inžinerija ir inžinerin÷s profesijos)
ekologijos ir aplinkotyros profesinis bakalauras; aplinkosaugininkas
Absolventai geb÷s nustatyti gamtinių procesų struktūrą, analizuoti gamtinę aplinką ir įvertinti antropogeninį poveikį jai, įvertinti aplinkos teršalus ir daromą žalą, vykdyti aplinkos būkl÷s kontrolę, teisiškai reguliuoti aplinkosauginę veiklą.
Elektros ir automatikos įrenginiai (Studijų sritis - Inžinerija ir inžinerin÷s profesijos)
elektros inžinerijos profesinis bakalauras; inžinierius
Absolventai gali dirbti įvairių pramon÷s šakų įmon÷se ir firmose, eksploatuojančiose elektros ir automatinius įrenginius bei automatines sistemas.
Mechaninių technologijų inžinerija
(Studijų sritis - Inžinerija ir inžinerin÷s profesijos
inžinierius Absolventai gali dirbti mašinų gamybos, lengvosios ir maisto pramon÷s, medžio apdirbimo ir transporto įmon÷se bei kitose srityse eksploatuojančiose mechanizmus, įrangą ir mašinas.
Universitetinių studijų programos (trukm÷: bakalauras - 4-5 metai; magistras – 2 metai)
Chemija (Studijų sritis - Fiziniai mokslai)
chemijos bakalauras; mokytojas chemijos magistras
Absolventai gali dirbti chemin÷se laboratorijose, su chemija susijusiose gamybin÷se ir komercin÷se įmon÷se.
Chemijos inžinerija (Studijų sritis – Inžinerija ir inžinerin÷s profesijos)
chemijos inžinerijos bakalauras; chemijos inžinerijos magistras; inžinierius
Absolventai gali dirbti chemijos pramon÷s įmon÷se, naftos ir chemijos produktų krovos terminaluose, naftos verslov÷se, naftos produktų tiekimo įmon÷se, mokslin÷se įstaigose, gamybos organizavimo bei valdymo, naujų pažangių technologijų projektavimo ir diegimo, žaliavų bei produktų chemin÷s sud÷ties bei kokyb÷s rodiklių kontrol÷s tarnautojais.
Chemin÷ technologija ir inžinerija
(Studijų sritis – Inžinerija ir inžinerin÷s profesijos)
chemijos inžinerijos bakalauras
Absolventai gali dirbti įvairiose chemijos, silikatinių bei statybinių medžiagų, naftos perdirbimo, biotechnologijos, lengvosios pramon÷s įmon÷se įvairaus lygio gamybos vadovais, inžinieriais, laboratorijų ir kitų skyrių vadovais, o taip pat ir įmonių vadybininkais, valstybinių institucijų, susijusių su chemijos produktų gamyba ir kontrole, tarnautojais.
Taikomoji chemija (Studijų sritis - Fiziniai mokslai)
chemijos bakalauras Absolventai gali dirbti farmacijos bei buitin÷s chemijos profilio įmon÷se, įvairių įmonių bei higienos centrų chemin÷se laboratorijose, akredituotose analiz÷s laboratorijose.
Biochemija (Studijų sritis - Gyvosios gamtos mokslai)
biochemijos bakalauras ir magistras
Absolventai gali dirbti biochemin÷se ir chemin÷se laboratorijose, su biochemija ir chemija susijusiose gamybin÷se ir komercin÷se įmon÷se.
Aplinkos inžinerija (Studijų sritis - Inžinerija ir inžinerin÷s profesijos)
aplinkos inžinerijos bakalauras; aplinkos inžinerijos magistras
Absolventai gali dirbti įvairiose chemijos pramon÷s ir naftos produktų tiekimo įmon÷se, laivybos eksploatacijos tarnybose.
70
Programa Suteikiama kvalifikacija Kvalifikacijos aprašas
Biofizika (Studijų sritis - Fiziniai mokslai)
biofizikos bakalauras; biofizikos magistras
Absolventai gali dirbti šiuolaikinių aukštų technologijų gamybin÷se įmon÷se, įvairiose mokslin÷se institucijose, medicinos įstaigose, aplinkosaugos ir ekologijos srityse.
Bioinžinerija (Studijų sritis - Inžinerija ir inžinerin÷s profesijos)
bioinžinerijos bakalauras; bioinžinerijos magistras
Absolventai gali dirbti biotechnologijos pramon÷je.
Aplinkos apsaugos inžinerija (Studijų sritis - Inžinerija ir inžinerin÷s profesijos)
aplinkos inžinerijos bakalauras; aplinkos inžinerijos magistras
Absolventai gali dirbti aplinkos apsaugos valstybin÷se institucijose, įvairiuose tyrimo ir projektavimo institutuose, pramon÷s ir transporto įmon÷se, privačiose aplinkosaugin÷se firmose.
Aplinkos ir profesin÷ sauga (Studijų sritis – Aplinkosauga)
aplinkos inžinerijos bakalauras
Absolventai gali dirbti visose gamybin÷se ir kitose institucijose aplinkos apsaugos ir darbų saugos specialistais.
Bioinformatika (Studijų sritis – Kompiuterija)
informatikos bakalauras Absolventai gali dirbti bioinformatikos programin÷s įrangos kūrimo, priežiūros darbus, kitokių informacinių technologijų kūrimo ir palaikymo darbus.
Elektros inžinerija (Studijų sritis - Inžinerija ir inžinerin÷s profesijos)
elektros inžinerijos bakalauras
Absolventai gali dirbti įvairių pramon÷s šakų įmon÷se, medicinos įstaigose, paslaugų ar kitokio profilio firmose.
Mechanikos inžinerija (Studijų sritis - Inžinerija ir inžinerin÷s profesijos)
mechanikos inžinerijos bakalauras; mechanikos inžinerijos magistras
Absolventai gali dirbti mašinų, prietaisų, lengvosios pramon÷s, maisto, energetikos, transporto ir kitokiose įmon÷se mechaninių tarnybų vedančiaisiais specialistais, technologais, projektuotojais, taip pat gali s÷kmingai dirbti mokslin÷se laboratorijose, privačiame versle, eksperimentin÷je veikloje.
