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Business Transformation in the Chemical Industry

However, that the chemical industry is not homogeneous, which is why the impact of the four strategic-structural challenges outlined earlier varies considerably based on product and market segment as well as country/location. External challenges can range from weak to strong, depending for instance on whether you are a midsized coatings manufacturer, a large fertilizer company or a technologydriven wind blade producer and whether your operations are in the U.S.,

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Lenzing Group

For 80 years Lenzing has been looking beyond fiber. Inspired by the needs of the world, we create smart and exciting solutions made from natural wood – for consumers, for our business partners, and for an environment worth living in. Our expertise and passion are dedicated to support the industry, brands and retailers – in sectors like fashion, beauty care or hygiene – by providing products and services that maximize value creation from both the environmental and the economical perspective. Our tenacity and engineering excellence also drive the development of innovative plant and process technologies around cellulosic fibers and related solutions.

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Chemical Technology

Petrochemical buyers, after a very difficult pandemic, can gain from China-driven deflation

Article | June 6, 2022

BUYERS OF polypropylene (PP) and other polymers and petrochemicals have had an incredibly difficult pandemic. Firstly, the converters and brand owners expected doom and gloom last March. At the time it seemed logical to expect a cratering of demand as the global economy pretty much imploded. Just looking at forecasts for GDP, parallels were drawn with the Global Financial Crisis when collapses in growth led to a cratering of polymers demand. The US is a good example where PP demand declined by 12% in 2008 over 2007. Demand then fell by a further 5% in 2009 over 2008.But what we all missed was the complete dislocation of polymers and petrochemicals demand from GDP. As economies registered historic declines, consumption went up. PP demand went through the roof, firstly for food packaging and hygiene applications.Then consumption for the durable goods made from PP also smashed through the rafters as we bought white goods (PP is used to make components of washing machines), consumer electronics (PP is used to make some electronic components) and carpets (PP fibres are used here).

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Chemical Management

The State of Intelligent Operations in Oil and Gas

Article | July 14, 2022

Intelligent Operations can play a vital role in creating connected content environments, however, many companies – especially within oil and gas – having been slow on the uptake. Businesses that implement digital transformation initiatives often gain a competitive advantage over their rivals, as they benefit from reductions in human error, increases in productivity and further support for compliance efforts.

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Chemical Technology

The supply-chain inflation threat to petrochemicals demand

Article | July 14, 2022

Petrochemicals themselves remain in short supply. This is partly because of reduced feedstock from refineries, a consequence of the pandemic-related collapse in transportation fuels demand.Global petrochemical supply is still edging back to something like normal following the US winter storms in February, during which most US capacity was shut down. A point of discussion is whether containers will become available in the right places at the right prices to relieve tightness in the European polyethylene (PE) market, once US supply has normalised. The container issue is making it difficult to move PE and polypropylene (PP) cargoes from Asia to Europe.Market intelligence from the US-based ICIS CDI team indicates that enough container freight space will be available to resume significant shipments of US PE to Europe, albeit at high prices. It will be several more weeks before domestic pipelines have been refilled, enabling US producers to refocus on exports, added CDI.

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Chemical Management

Global polyethylene demand boom likely, increasing the sustainability challenge

Article | June 15, 2021

IT FEELS LIKE several lifetimes ago. If you recall, way back in November-December 2019 Asian variable cost integrated naphtha-based polyethylene (PE) margins turned negative because of the increase in US capacity. Then in January the following year, deep Asian and Middle East operating rate cuts returned some order to the market. Then, bang, as we all know, the pandemic arrived and turned everything on its head. The pandemic has, in my view, accentuated trends that were already well underway. I believe this means that the supply-driven downturn that started in late 2019 will not return.Long before coronavirus upended everyone’s lives, PE demand was becoming increasingly divorced from GDP growth because of the shifting nature of end-use demand. Booming internet sales was, I believe, a major factor behind the split between the growth of the overall economies in the developed world plus China and PE demand.The average product bought online is dropped 17 times because of the large number of people involved in the logistics chain, according to Forbes. This had led to a surge in demand for protective packaging made not from PE and other polymers such as polypropylene, expandable polystyrene and PET films (I will look at their demand growth prospects in later posts).Despite sustainability pressures, the scale of demand for stuff bought online translated to a lot more consumption of virgin polymers.

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Chemical Technology

Organic Catalyst Boasts Big Benefits

Article | June 6, 2022

BUYERS OF polypropylene (PP) and other polymers and petrochemicals have had an incredibly difficult pandemic. Firstly, the converters and brand owners expected doom and gloom last March. At the time it seemed logical to expect a cratering of demand as the global economy pretty much imploded. Just looking at forecasts for GDP, parallels were drawn with the Global Financial Crisis when collapses in growth led to a cratering of polymers demand. The US is a good example where PP demand declined by 12% in 2008 over 2007. Demand then fell by a further 5% in 2009 over 2008.But what we all missed was the complete dislocation of polymers and petrochemicals demand from GDP. As economies registered historic declines, consumption went up. PP demand went through the roof, firstly for food packaging and hygiene applications.Then consumption for the durable goods made from PP also smashed through the rafters as we bought white goods (PP is used to make components of washing machines), consumer electronics (PP is used to make some electronic components) and carpets (PP fibres are used here).

Read More
Chemical Management

Key Trends in the Digital Transformation of the Chemical Industry

Article | July 14, 2022

Intelligent Operations can play a vital role in creating connected content environments, however, many companies – especially within oil and gas – having been slow on the uptake. Businesses that implement digital transformation initiatives often gain a competitive advantage over their rivals, as they benefit from reductions in human error, increases in productivity and further support for compliance efforts.

Read More
Chemical Technology

Future-Proofing the Chemical Industry with Digitalization

Article | July 14, 2022

Petrochemicals themselves remain in short supply. This is partly because of reduced feedstock from refineries, a consequence of the pandemic-related collapse in transportation fuels demand.Global petrochemical supply is still edging back to something like normal following the US winter storms in February, during which most US capacity was shut down. A point of discussion is whether containers will become available in the right places at the right prices to relieve tightness in the European polyethylene (PE) market, once US supply has normalised. The container issue is making it difficult to move PE and polypropylene (PP) cargoes from Asia to Europe.Market intelligence from the US-based ICIS CDI team indicates that enough container freight space will be available to resume significant shipments of US PE to Europe, albeit at high prices. It will be several more weeks before domestic pipelines have been refilled, enabling US producers to refocus on exports, added CDI.

Read More
Chemical Management

Global polyethylene demand boom likely, increasing the sustainability challenge

Article | June 15, 2021

IT FEELS LIKE several lifetimes ago. If you recall, way back in November-December 2019 Asian variable cost integrated naphtha-based polyethylene (PE) margins turned negative because of the increase in US capacity. Then in January the following year, deep Asian and Middle East operating rate cuts returned some order to the market. Then, bang, as we all know, the pandemic arrived and turned everything on its head. The pandemic has, in my view, accentuated trends that were already well underway. I believe this means that the supply-driven downturn that started in late 2019 will not return.Long before coronavirus upended everyone’s lives, PE demand was becoming increasingly divorced from GDP growth because of the shifting nature of end-use demand. Booming internet sales was, I believe, a major factor behind the split between the growth of the overall economies in the developed world plus China and PE demand.The average product bought online is dropped 17 times because of the large number of people involved in the logistics chain, according to Forbes. This had led to a surge in demand for protective packaging made not from PE and other polymers such as polypropylene, expandable polystyrene and PET films (I will look at their demand growth prospects in later posts).Despite sustainability pressures, the scale of demand for stuff bought online translated to a lot more consumption of virgin polymers.

Read More
MORE ARTICLES

Spotlight

Lenzing Group

For 80 years Lenzing has been looking beyond fiber. Inspired by the needs of the world, we create smart and exciting solutions made from natural wood – for consumers, for our business partners, and for an environment worth living in. Our expertise and passion are dedicated to support the industry, brands and retailers – in sectors like fashion, beauty care or hygiene – by providing products and services that maximize value creation from both the environmental and the economical perspective. Our tenacity and engineering excellence also drive the development of innovative plant and process technologies around cellulosic fibers and related solutions.

Related News

NGOs file suit over transparency of TSCA new chemicals programme

Chemical Watch | March 18, 2020

A coalition of NGOs has sued the US EPA over an alleged lack of transparency in the TSCA new chemicals programme, which "thwart[s] the ability of the public to be informed and to provide input". According to a complaint filed by five environmental nonprofits in federal court today, the EPA has operated its TSCA premanufacture review process in a "black box, denying the public information to which they are legally entitled". Having access to timely information, they contend, is necessary to ensure the members they represent "are able to provide input on the potential risks of new chemicals and the need for protections from those risks prior to completion of EPA’s reviews." And they therefore have asked the court to ensure that the EPA complies with TSCA’s disclosure provisions, including by requiring that it:

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ACC to Trump, governors: Keep chemical industry going during coronavirus crisis

S&P Global | March 18, 2020

The US chemical industry's trade group told President Donald Trump and state governors this week that its sector must maintain operations as the coronavirus outbreak spreads to ensure supply of chemicals needed for disinfectants, plastics for food preservation and medical equipment, and staples like diapers and soap. "The role of chemistry is particularly important today, as chemicals enable countless products that will be needed to support good hygiene and treat those who are infected with the coronavirus in the weeks and months ahead," American Chemistry Council President and CEO Chris Jahn said in a letter to Trump and governors late Tuesday. Efforts to hinder the spread of coronavirus have included cancellations of major sporting events, concerts, conferences, parades, and other large gatherings, as well as closures of bars and limiting restaurants to takeout and deliveries. Companies have increasingly sent employees to work from their homes, while hospitals, grocery stores, and drug stores work to keep up with demand for care and products.

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How small chemical company leaders are dealing with the coronavirus

C&EN | March 17, 2020

As measures to contain the coronavirus—SARS-CoV-2—sweep across the US, the heads of privately owned chemical and instrument companies find themselves in uncharted territory trying to keep their companies going and their employees safe. C&EN reached out to CEOs of several such firms to learn what they are doing to keep business moving forward. We heard stories about setbacks, as expected supplies didn’t come through, but also small triumphs, as needed safety equipment was finally found. Overall, these leaders are keeping a close eye on supplies while planning for the real possibility that orders will drop in the coming months. Keeping staff healthy and maintaining continuity in customer service are the top priorities at Boron Specialties. “We are a pretty small facility, seven people &on-site&, so as best as we can we’re isolating,” CEO and founder Beth Bosley says.

Read More

NGOs file suit over transparency of TSCA new chemicals programme

Chemical Watch | March 18, 2020

A coalition of NGOs has sued the US EPA over an alleged lack of transparency in the TSCA new chemicals programme, which "thwart[s] the ability of the public to be informed and to provide input". According to a complaint filed by five environmental nonprofits in federal court today, the EPA has operated its TSCA premanufacture review process in a "black box, denying the public information to which they are legally entitled". Having access to timely information, they contend, is necessary to ensure the members they represent "are able to provide input on the potential risks of new chemicals and the need for protections from those risks prior to completion of EPA’s reviews." And they therefore have asked the court to ensure that the EPA complies with TSCA’s disclosure provisions, including by requiring that it:

Read More

ACC to Trump, governors: Keep chemical industry going during coronavirus crisis

S&P Global | March 18, 2020

The US chemical industry's trade group told President Donald Trump and state governors this week that its sector must maintain operations as the coronavirus outbreak spreads to ensure supply of chemicals needed for disinfectants, plastics for food preservation and medical equipment, and staples like diapers and soap. "The role of chemistry is particularly important today, as chemicals enable countless products that will be needed to support good hygiene and treat those who are infected with the coronavirus in the weeks and months ahead," American Chemistry Council President and CEO Chris Jahn said in a letter to Trump and governors late Tuesday. Efforts to hinder the spread of coronavirus have included cancellations of major sporting events, concerts, conferences, parades, and other large gatherings, as well as closures of bars and limiting restaurants to takeout and deliveries. Companies have increasingly sent employees to work from their homes, while hospitals, grocery stores, and drug stores work to keep up with demand for care and products.

Read More

How small chemical company leaders are dealing with the coronavirus

C&EN | March 17, 2020

As measures to contain the coronavirus—SARS-CoV-2—sweep across the US, the heads of privately owned chemical and instrument companies find themselves in uncharted territory trying to keep their companies going and their employees safe. C&EN reached out to CEOs of several such firms to learn what they are doing to keep business moving forward. We heard stories about setbacks, as expected supplies didn’t come through, but also small triumphs, as needed safety equipment was finally found. Overall, these leaders are keeping a close eye on supplies while planning for the real possibility that orders will drop in the coming months. Keeping staff healthy and maintaining continuity in customer service are the top priorities at Boron Specialties. “We are a pretty small facility, seven people &on-site&, so as best as we can we’re isolating,” CEO and founder Beth Bosley says.

Read More

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