Specialty leading positions

Die Fabrik auf dem Chip, Spektrum der Wissenschafi, October 2002 Miniaturization and modularization of parts of future chemical apparatus general advantages of micro flow expert opinions specialty and fine chemical applications leading position of German technology flexible manufacture large-capacity micro reactors reformers for small-capacity applications compatible and automated micro-reaction systems process-control systems temperature and pressure sensors [209]. 

Thus, the impressive size of BASF s Fine Chemical Division is due to a BASF-specific definition of the term fine chemicals. In fact, the division, which is part of the business segment Agricultural Products Nutrition produces large volume aroma chemicals (a.o. 40,000 metric tons/year of citral) and vitamins (A, B2, C and E), as well as several lines of specialty chemicals (a.o. excipients and personal care products). Fine chemicals as defined in Section 1.1 account for about 150 million ( 190 million) in 2006, after full consolidation of the Swiss Fine Chemical company Orgamol, acquired in 2005. BASF holds a leading position in ibuprofen (made in USA), coffein and pseudoephedrin (made in Germany). BASF forecasts a further increase to 500 million ( 625 million) within 10 years which should make it the third largest fine-chemical company. 

Successful specialty chemicals companies can still reap rich rewards and create value in the future, by concentrating on two key factors for success they have to develop strategies which allow them to shape leading positions in markets or arenas that fit their competitive advantages, and achieve superior operational performance at the business unit level. In this chapter we map out the key strategic levers that specialty players can pull to achieve this, and assess what is needed to fulfill them. 

Having sold all these base chemicals - most of them at peak value - UCB focused on innovative specialty resins such as UV cure resins, powder coating resins, and high-solid resins for automotive, graphic arts, and industrial applications. At the end of 2004, just before the closure of the sale to Cytec and two years after the acquisition of the Solutia activities, UCB s chemicals activity had a turnover of EUR 1.1 billion, around 40 percent of which was outside Europe, an EBITDA of EUR 147 million, and a leading position in most of its markets. 

Ciba-Geigy owes its leading position to a number of factors long perseverance in the specialty, an efficient research base through which the universally used Irganox antioxidants were developed, application services adapted to all the polymers requiring stabilization, worldwide production units estab-... 

Chemicals. With a turnover of around 3.3 billion it is nevertheless a well-diversified specialty chemicals company, with leading positions in ethylene propylene rubber, plastics additives, and rubber chemicals as well as crop protection products and silanes. 

Considerable disappointment arose when it was found that the formation of phenoxymethyl penicillin had already been described, and patented, by O. Behrens from E. Lilly in the US, who had, however, not recognized its acid stability. Successive negotiations were able to settle this problem in a most satisfactory way for both sides and both companies were able to acquire leading positions as producers of oral penicillin. Biochemie Kundl GmbH., now part of Novartis Ltd., is still one of Austria s biotechnical companies most renowned for its production of antibiotics, enzymes and other specialties such as e.g. cyclosporin. Quite recently (1998), the company acquired the fermentation facilities of Hoechst Marion Roussel at Lrankfurt to enlarge its production capacity about twofold. 

In order for sellers to sell and buyers to buy, an understanding of each other s negotiating position and constraints can be helpful. Also, in the business of water treatment, with its emphasis on marketing specialty products and services, it is useful to reflect on the sequence of events that leads not only to a successful sale but also to the realization of benefits for each party. Thus, this chapter attempts to discuss some of the more basic, yet important, elements of the marketing process. 

Specialty companies are facing an ever tougher environment. Eventually, the extent to which a company will manage to outperform other players, be they existing players, financial investors or new low-cost entrants, will depend on its ability to develop a strategy which will enable it to shape a leading competitive position in a market or arena that can allow it to tap into its advantages, and to achieve superior operational performance at the business unit level. 

PPG has been pushed back to second world position with 450 million liters. But with its 100 percent stake in France s Corona and its controlling share in Italy s IVI and in Germany s Wiilfing, the U.S.-based PPG has maintained a comfortable technological lead in the application of cataphoresis in automobile bodies, accounting for 60 percent of the world market in this specialty. 

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