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    Advantages of custom processing in the chemical industry – a trend is gaining ground

    Nov 20, 2020 11:13:07 AM , Author: Steve Fender

    Advantages of custom processing in the chemical industry - a trend is gaining ground

    The demand for custom processing is constantly increasing in the chemical industry. The reasons for this are growing customer requirements and a highly complex international market with constantly changing regulations. However, challenges such as a shortage of skilled workers, savings or digitalisation requirements also promote the acceptance of contract processing. Chemical and oil companies with innovative strength and a future-oriented approach are focusing their resources on core areas and outsourcing certain services - for some time now also increasingly the production of new developments. The advantages of this and what makes qualified custom processing companies strategic partners are explained in this article.

    When is custom processing in the chemical industry attractive?

    Innovation is an important driver in the chemical industry. Customers are increasingly demanding it for certain end products or applications. Often in companies, innovative solutions are accompanied by realignment or restructuring - then resources are increasingly bundled and capacities are focused on new areas in terms of expertise or financial strength. Depending on the strategic orientation of the company, this often leads to a need for external support. 

    In this context, the topic of production must also be re-assessed. Outsourcing production frees up resources within the company, and also enables savings, flexibility and improved alignment.

    External production following a new development is a good example of a suitable use of custom processing. Here, on the one hand, flexible, external production facilities can be used for pilot production or as an extension for own, existing plants. On the other hand, investment decisions in new plants can be addressed at a later stage.

     

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    What are the other advantages of custom processing in the chemical industry?

    For the production of project-related individual products, secondary products or custom-made products, many companies lack plant technology or know-how. In this case, you can take advantage of the benefits of custom processing: by outsourcing individual production steps or the entire production process, capacity problems can be solved and your own plants with a higher added value can be used. 

    Reasons why production steps or an entire production can be outsourced:

    • Lack of processing capacity
    • Support during order peaks
    • Missing process technology
    • Use of released capacity for other corporate priorities such as digital change
    • Absence of framework conditions, such as special warehouses
    • Rationalisation within the company
    • Shortage of specialists
    • Outsourcing of secondary processing for the use of own plants with a higher added value  

     

    Full service from outside the company

    In times of budget cuts, shortages of skilled workers or staff shortages, strong custom processing companies play an important role. They offer their customers a relief with regard to staffing issues and, with their own employees, provide the often missing specialists with a high degree of training, suitability and reliability. In addition to the suitable production equipment, this contributes decisively to product quality. 

    Furthermore, highly qualified contract processors offer a full service, which also includes consulting, planning, procurement, research and development, extensive testing and analysis facilities by their own laboratories, preparation of safety data sheets, flexible production, quality assurance, filling and logistics. With such comprehensive services, custom processing partners can support your strategic orientation, offer a high degree of flexibility and thus contribute significantly to the success of your company.

     

    Custom processing - strategic partner for the future

    The custom processing of the future is therefore more than just production outsourcing. It is a business model with a promising future, in which the supplier can become an important strategic partner. Contract manufacturing companies play a decisive role in the value-added chain and can close many gaps with competence and experience.

    This is what you should bear in mind when selecting a custom processing company:

    • High process efficiency
    • Continuous plant operation
    • Many years of experience and competence
    • Tailor-made customer specifications
    • Modern production units such as distillation and mixing plants
    • Qualified personnel
    • Service for storage and filling 
    • Extensively equipped laboratories with extensive testing and analysis facilities

     

    Read here how Haltermann Carless is breaking new ground in custom processing at the Harwich site!

     

    Conclusion

    The reasons for outsourcing production or sub-processes are manifold. The decisive factor is the scope of services that should bring relief in the future. The possibilities range from bottleneck suppliers to strategic partnerships. Custom processing in the chemical industry is a business model with a promising future and offers more than just simple order processing. High plant availability, modern technologies, many years of know-how and comprehensive services support your company and thus enable free resources.

     

    Topics: Supply Chain Management, Custom processing

    Author: Steve Fender

    Author: Steve Fender

    Steve Fender is Supply Chain Manager for Haltermann Carless refinery activities at Harwich. This role encompasses the Aromatics, Middle Distillates and Gas Condensates business areas and provides the interface between the commercial and operations teams. The inclusion of additional custom processing activities fits naturally into this role and therefore makes him our primary contact for such opportunities. Steve joined Haltermann Carless in 1987 as a Chemical Engineer. phone +44 (0)1255 509256, mobile +44 (0)7876 216971, email sfender@h-c-s-group.com

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