Global chemical industry value

Developed frameworks are applied to the specific industry problem to monthly plan a global chemical commodity value chain by volumes and values. Sub-objectives are to elaborate characteristics and planning requirements for a global commodity value chain in the chemical industry and to develop, implement and evaluate the respective model. Research question 2 is directed to a real industry case study demonstrating the real existence of formulated requirements, showing the applicability of the developed model in reality and evaluating the model using industry data. 

Moreover, rapid changes encoimtered in recent years in fossil-fuel prices, raw feedstock prices, and the global chemical industry infrastmcture and supply base mean that price relationships calculated today, likely, won t stay the same next year (or even the next month). However, a certain truism will always hold—decisions about additives based on the cost must always be weighed against what value the additive wiU actually provide for the resin product. In particular, a few specific trade-offs might be considered as follows ... 

This relatively stable system now faces increasing volatility and complexity due to volatile demand and raw material prices as well as globalization in markets and company networks. Specifically, price-volatile commodity products within the chemical industry require planning volumes together with values across sales to procurement. In this context, the work of Matthias Kannegiesser focuses on two research questions ... 

The problem to monthly plan a global value chain for commodities in the chemical industry puts specific requirements considering on the aspects of values, sales, distribution, production and procurement planning in a global network. Recent research related to value chain planning can be clustered into global-oriented, chemical industry-oriented or commodity-oriented research. 

The value chain management framework is used as conceptual basis for developing a global value chain planning model for the specific scope of a global commodity value chain in the chemical industry. 

The chemical industry is the application field for the study and the development of a global value chain planning model. General characteristics of the chemical industry as application field are described in this chapter. Particularities of chemical commodities are described in more detail being relevant for the considered case. 

The chemical industry is one of the largest global industries with an annual sales value of 1,776 billion in 2005. The chemical industry in Europe counts for 2.5% within 24.5% overall industry contribution to the total GDP in the EU 15. Traditionally important markets for the chemical industry are Europe and the United States counting for 60% of global sales value in 2004 as shown in fig. 31 (CEFIC 2005). 

Fig. 32 Global sales and value flows in the chemical industry...

Global Commodity Value Chain in the Chemical Industry... 

The global value chain network for commodities in the chemical industry is composed by locations, resources and transportation lanes as illustrated in fig. 39... 

Relevant characteristics of the chemical industry and the considered global value chain network have been presented in more detail. Results can be summarized ... 

The globalization is a key trend in the chemical industry especially between traditional industry markets in Europe and NAFTA and emerging markets in Asia. Planning and managing these flows is a further area, where value chain planning can provide significant decision support to overall volume and value optimization. 

Models in literature with relation to the scope of this work are reflected by the key words in the title planning, global, commodity and chemical industry in the context to value chain management. Given the comprehensive scope of the value chain planning problem, literature analysis is grouped into these four groups ... 

In this study, two research questions have been investigated 1. How volumes and values within the value chain can be managed in an integrated way and, especially, 2. How a global commodity value chain within the chemical industry can be planned by volumes and values. 

In the United States, approximately one-third of all processed crude oil, amounting to about 5 x 10° bbl/day, is catalytically converted over fluidized catalysts. Over 500 tons of catalyst are required daily, yielding sales that in 1987 were estimated at -250 million dollars (1). Thus, in terms of catalyst usage and product value, catalytic cracking is still the most important unit operation of the petroleumrefining industry. This year, the worldwide sales of catalysts to the petroleum, petrochemical, and chemical industry are expected to exceed 2.4 billion dollars, and catalyst producers are preparing themselves for the turn of the century when catalysts are projected to become a 5 billion dollars per year global business (2). 

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