The chemical manufacturing industry value of production is around R156 billion, including converted plastic and rubber products.  Chemical manufacturing is the largest single contributor to the South African manufacturing sector, accounting for 20% of manufacturing GDP and around 4.5% of total GDP.  The chemical sector accounts for some 30% of manufacturing fixed capital, it only accounts for around 9% of total manufacturing jobs (source: Industrial Development Corporation).  Further, it invests around R2 billion annually in upgrades, however less than 1% of sales is spent on R&D.  Around 60% of upstream chemicals are consumed within the chemical pipeline as feedstock.

Products of the chemical sector are also the basis for almost every manufacturing activity in SA.  The chemical sector also accounts for nearly 9% of total exports [Source: Industrial Development Corporation (IDC) and Statistics South Africa (Stats SA)].  Production value is dependant upon commodity price cycles and other impact factors such as the crude oil price and exchange rates.  Production value can therefore indicate large variations from year to year, even under constant volume output.

The chemical industry can be classified in five broad categories, namely:

• Liquid fuels production, i.e. petroleum, diesel, etc.
• Synthesis, i.e. primary and secondary chemicals manufacturing such as commodity organic and inorganic chemicals, primary polymers and rubbers, and fine chemicals.
• Formulation i.e. chemical-containing products manufacturing, e.g. consumer products (household, cleaning, cosmetics, toiletries), pharmaceuticals, bulk products (explosives, fertilisers), specialty chemicals (paints, coatings, inks, adhesives, agricultural chemicals, etc.).
• Conversion i.e. plastic & rubber conversion (excluded from the CHIETA).
• Glass manufacturing from chemical raw materials such as soda ash, and glass conversion that includes cutting, blowing, etc.