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“Chemistry” in the Specialty Chemicals Industry
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“Chemistry” in the Specialty Chemicals Industry “Chemistry” in the Specialty Chemicals Industry Presentation Transcript

  • “Chemistry” in the Specialty Chemicals Industry
    ACS Regional Meeting
    October 21st, 2010
    David Mielke (CEO & President) and Joel Salzman (Director)
    ChemDesign Products
  • Introduction(s)
    Steve Hurley and Mark Klemp
    ChemDesign Team
  • Overview -
    The Chemical Industry
    The Specialties Chemical Industry
    Players, Markets, Challenges
    The Future of Domestic Chemistry
    ChemDesign’s Niche and History
    Role of Chemists
    Key Attributes of Successful Chemists
  • The Chemical Industry
    Basic Chemicals
    Feed Stocks: Oil, Nat Gas, Pet Gas, Ore, Bi-products
    End Products : Plastics, Monomers, Inorganics, Rubber, Solvents, Fertilizers
    Textiles, Plastics, petroleum, Paper, Metals, Other
    Specialty Chemicals – Fine Chemicals, Adhesives, Coatings, Additives, etc
    Life Sciences – Pharmaceuticals/Healthcare
    Consumer products – Cosmetics, detergents, Soaps
  • Major Players
    BASF (Germany)
    Dow Chemical (USA – Michigan)
    INEOS (UK)
    LyondellBasell (USA – Texas)
    DuPont (USA)
    Bayer Ag (Germany)
    Mitsubishi (Japan)
  • Economic Trends
    The industry is growing worldwide
    Imports and Exports are Balanced (Based on 2008 data)
    Decline in Pharma and Organics
    Increase in Plastics, Detergents, Dyes, other.
    Asian Dominance (Exports from China are substantially exceeding imports to China)
    Flexibility, adaptation, innovation, value added are key to future growth in the United States and Europe.
    Petroleum …Green Shift
  • What is the Specialty Chemicals Market
    Represents Approximately $100 billion of a $3 Trillion Market
    Fine Chemicals, Coatings, Additives, Electronics, Catalysts, Oil Additives, Water treatment, Cosmetics, Flavors & Fragrances, and Adhesives
    Target molecules at Volumes of 1000 to Multi-million pounds
    Value of $0.30/lb to $200/lb processing Fees
    Tend be key ingredients that affect properties of commodity products (Value Added)
  • Challenges to Chemists:
    Specialty Chemicals is “Not for the faint of heart”
    Dynamic business, Intense Competition, Daily opportunities to improve and reduce costs.
    Offshore shift to India and Asia
    Tempered to commodities, dirty chemistry, dyes, and pharma
    Innovation equals success
    Always Create Value for your customer
    Inventory management, delivery, reach-ability
    Be an extension of your customer, allow your customer to sleep at night!
    Give them back a better process than they provide
    Maintain a safe, environmentally sound, manufacturing platform
    Move ahead of the Transition…Lead versus Follow
  • Growing Chemical Markets for the Future
  • The World is Changing:
    Alternatives to Petroleum
    Energy and Feed-stocks
    Chemists will solve these challenges
    Storage of Power
    Bio-based Commodities
    Domestic due to costs and resources
    Fermentation chemistry, biochemistry, carbohydrate chemistry
    Human cells conduct complex chemical reactions….
    Clean Agricultural compounds
    Functionalized proteins – non-toxic to humans, short field life.
    High Actives – low volumes
  • What is ChemDesign’s Role?
    A Resource for Custom manufacturing of Specialty Chemicals
    Make a molecule without external technology (Chemists)
    Transfer external technology and optimize (Chemists)
    Run as is (Chemists – evaluate, translate)
    High Degree of Customer Interaction with Chemists
    Provide value and capability
    An extension of a customers capabilities in the product life cycle
    Development quantities through test markets (Lab to Plant)
    Surge capacity, temporary production needs
    Mature products that were pushed out to free up capacity
  • Unique
    Highly Experienced
    Intellectual Property Preservation
    ISO 9001:2008 Registered
    EHS Stewardship
    Competitive Manufacturing Platform
    Well Maintained Operating
    Why do Customers Choose ChemDesign?
    ChemDesign enjoys an unparalleled reputation in the industry based on a strong value proposition that enables customers to confidently outsource the development and production of critical, non-core products.
  • CompanyHistory
    ChemDesign is founded through the purchase of Ansul Security Chemicals’ Marinette, WI operations by a group of individual investors.
    Bayer acquires ChemDesign and integrates the Company with its Industrial Chemicals Division.
    ChemDesign achieves profitability.
    H.I.G. leads the acquisition of ChemDesign from Bayer.
    ChemDesign Products is Formed
    SpecialtyChem “breaks” from ChemDesign Fitchburg
    ChemDesign operates primarily as a captive supplier to Bayer.
    ChemDesign replaces $16 million of legacy Bayer business with higher margin custom and proprietary product sales.
    ChemDesign constructs a greenfield plant in Fitchburg, MA.
    Bayer invests $140 million in capital expenditures in the business.
    ChemDesign: A Legacy of Leadership in the Specialty Chemical Industry
  • Specialized Organic Chemistries
    • Alkylation • Chlorination • Etherification • Oxidation
    • Amination • Diazotization • Friedel-Crafts • Polymerization
    • Bromination • Esterification • Hydrogenation • Sulfonation
    Production Capabilities
    • Approximately 70,000 Gallons of Reactor Capacity
    • 45 Reactors (300 to 6000 gallon scale)
    • Rated Class 1, Div 2, Group C&D Environments
    • Distillation and solvent recovery up to 30 stages and full vacuum
    • Solid and liquid isolation capabilities
    • Atmospheric & Full Vacuum Dryer Capabilities
    • Operating temperatures from 0 to 550 F, Pressures to 300 psig
    • 2000 gal Hydrogenation capability in G/L and Hast C
    • Flexible assets for heating, cooling, solvent exchange, and mixing
    • Synthetic Minor Air Permit
    • FIFRA Registered
  • ChemDesign serves a broad base of niche markets
    Agricultural products
    Fine chemicals
    Media coatings
    Specialty surfactants
    Polymer additives
    Specialty performance polymers
  • The Chemist Role
    Evaluate Chemistry – Development versus research
    Literature, Lab Evaluation, Technical review
    Evaluate Safety and Environment
    Toxicity of reagents, potential side reactions, understand kinetics
    Analytical Analysis, Quality, Yield
    Raw material quality, Reaction Progress, Final Material Specifications
    Liaison With Customers
    Technical Advisor for Technicians and Fine Chemical Operators
    Problem solver and Trouble Shooter
  • Chemist Attributes
    Education background
    PHD, BS, MS
    Work Experience while in school, Side Jobs, Hobbies, Memberships
    Minor, Undergrad Work
    Work History
    Frequency of job transitions
    Field of expertise
    Examples of Value creation, Leadership, Ownership
    Specific Experiences
    Interpersonal Skills
    Teams, lead vs. follow, technical documentation
    Understanding of Value, Business Sense, Business savvy
  • What makes a great Chemist?
    Insight (ability to pull together a team)
    Think on your feet
    Business Knowledge (ability to ask questions)
    Offer solutions (Brainstorming)
    Fix, improve, better instruction- understanding. Have facts and be concise. Define what's really important.
    Follow through
    Observe, document, test, understand, define, map, teach/train
    Dedication and self direction
  • Your Future as a Chemist
    Where do I wish to live?
    What Industry should I apply for?
    What discipline would I enjoy?
    What skill set do I need for that industry?
    What is my goal as a chemist?
    Choose your path: QA/QC, R&D, Manufacturing, Commodities, Pharma, Environmental, Invention, Discovery, Academia.
    You know you’re a chemist when spell check has no idea what words you are using!
  • Advice
    Balance what you enjoy and what’s needed to make a living.
    Pick your interests early and keep them broad, after 15 years in a field its difficult to move (too specialized)
    Understand the company and its future
    Understand your role in that future
    Understand the culture
    Do your research and never stop asking questions
    Gut feel is a strong indicator
    Don’t get lost in the details….
  • Questions?
    “The most beautiful thing we can experience is the mysterious. It is the source of all true art and all science. He to whom this emotion is a stranger, who can no longer pause to wonder and stand rapt in awe, is as good as dead: his eyes are closed.”
    Albert Einstein -