spolchemie vleugels vienna 2010
DESCRIPTION
Spolchemie general manager, Francois Vleugels, presents his rescue strategy for the Czech epoxy resin producer. Presented this week at the Vienna Global Chemicals Conference organised by the World Refining Association.TRANSCRIPT
1François VleugelsCEO Spolchemie
Ústí nad Labem
CENTRAL EUROPE& Czech Republic
•Geographical & logisticadvantaged position in Europe
•More than century of tradition in chemical production
•Skilled blue and white collars
•Personnel costs advantage to the West Europe countries
•All logistic infrastructure near Usti n.Labem plant (road, rail, water) 2
Spolchemiehistory
• 1856 – Austro-Hungarian aristocracy grounded the company
• 1918 – heavy chemistry in Czechoslovakia concentrated in Spolchemie
• 1945 – Nationalisation• 1990 – Privatisation –
joint stock company
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IN SHORT
• 750 employees• Turnover 2008 approx 200 million € • More than 90 % of Spolchemie’s
production is sold outside the Czech Republic
• Major European player in resins market for coatings and composites
• Products– Resins– Inorganics– Specialties
RESPONSIBLECARE
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Focus: Mainly Europe & Global
– Tradition– Market knowledge– Flexible and Dynamic – Strong position in epoxy resins – Strong industry segments
• Automotive• Construction
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Focus: Technology
2004 • Restarting of BPA plant
2005• Epispol – latest technology for the production of liquid epoxy resin (license of DIC
Japan)• New SER plant – all products designed for powder coatings• Construction of new unsatured polyesters and alkyds plant
2006• Latest technology for the production of unsaturated polyester resins (cooperation with
Reichhold US)• Construction of Epispol II production facility (startup in October 2007)• Start of production of new unsatured polyesters and alkyds plant
2007• Start-up of a new capacity of glycerin based ECH
2011-13• Conversion of chlorine production into modern membrane technology
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Focus: TechnologyUnique patented ECH process
ENVIRONMENT
• Production from renewable sources (Glycerine)
• Contribution to sustainable development
• Exceeding benchmarks of Best Available Techniques (BAT)
• Unique process safety compare to propylene based technology
ECONOMY
• Production of all wastes much lower than ECH-P ones
• Consumption of all utilities much lower than ECH-P ones
• Turndown of 30%
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Diverse portfolio
• Inorganics– Chlorine– Potassium Hydroxide– Sodium Hydroxide– Sodium Hypochlorite, Hydrochloric Acid– Epichlorohydrin, Allylchloride,
Perchloroethylene
• Specialities– Synthetic Sapphire– Calcium Sulphate– Hydrofluoric Acid– Sodium Fluoride– Potassium Permanganate
Pharmaceutics
Electronics
Food and beverages
Detergents
Paper and celulose
Construction etc.
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• In the end of 60’s PROPYLENE based technology development
• 1973 first propylene-based ECH plant start up
• 1999 start of the GLYCERIN based technology R&D
• Patent application• 2007 New plant start up
Epoxy resins & Epichlorohydrine
- core products- unique technology
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ECH: Core process parameters
0
10
20
30
40
50
60
70
80
90
100
chlorine causticsoda
ECH-P ECH-G
Specific consumption index
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in summary
• GREEN TECHNOLOGY– Technology of Epoxy resins based on Glycerine
• COST STABILITY– Gycerine price not connected to crude oil and less
fluctuating
• FLEXIBILITY– Own strong R&D team works with customers to fully
align the product with requirements
• CAPACITY– Total production capacity increased
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crisis
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Global crisis
Customers hit - demand decreased
Payment delays
Return of investment jeopardized
Cash crisis
Payment to row material suppliers delayed
Delivery problems
QUICK RECOVERY ACTION NEEDEDQUICK RECOVERY ACTION NEEDED13
Key services
• Restructuring approach to address the current economic crisis
• Operational improvements in Production and Supply Chain
• Sales and marketing optimization • Product and asset portfolio optimization as well as
support with the resulting divestments and/or investments.
• Organizational efficiency improvements and leadership selection
• Management control and execution of crisis plan14
Chemical Solutions analysis
New plantUnique technologySkilled staffProduct portfolioTradition
Marketing practicesCompany culture
Optimization
• staffing and HR
• production process
• supply chain
• procurement
• logistics
Co-production
Cash
Credibility loss
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Conclusion for
• Cash problem being addressed – credibility addressed• Marketing focus Europe only – based on portfolio
flexibility, and sales increase (=regain lost market share)• Processes and procedures optimized – significant
efficiency increase• Co-operations – modern technology fully utilised
SHORT-TERM RECOVERY PLAN WAS NEEDED TO OVERCOME CASH ISSUES AND DRIVE
GROWTH BASED ON ITS CORE STRENGHTS & MARKET OPPORTUNITIES
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Recovery projectSTEP ONE - rescue• Stand-still agreement• Payment calendar• Recovery plan - agreed by shareholders and
banks
STEP TWO – savings more than 10mil €
• Staff reduction• Redundant property sales• Process optimisationSTEP THREE – revenue growth of 40mil €
• Regain lost market share• Optimize channels to market
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PROJECT OUTLINE
• SHORT DURATION– 8 weeks project duration from project kick-off to
outcome acceptance
• PROFESSIONALS ONLY– Team of experienced professionals in all area of
Production, Maintenance, Supply Chain, Procurement, HR, Legal and Corporate Governance
• VERY SHORT PAYBACK – Cost of project vs. benefits identified and verified with
management resulted into a very short payback
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Spolchemie - bright future
• Slim, efficient and flexible mid-size company
• Focused marketing – Europe region
• Interesting portfolio – resins, glycerin/green technology, inorganics, specialties
• Reliable partner and co-producer
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Thank you
François Vleugels
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• BACK UP SLIDES
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0
10
20
30
40
50
60
70
80
90
100
Steam Electricity Coolingwater
Processwater
ECH-P
ECH-G
ECH: Core process parameters
Specific consumption
index
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Core process parameters
020406080
100120
hydro
carb
on w
aste
s
was
te w
ater
disso
lved
sal
ts in
WW
COD in
WW
AOX in
WW
EHC-P
EHC-G
Specificproduction
index
23