CHEMTURA WINS MARKET SHARE IN CHINA

The challenges of expanding in China today are often as great as the opportunities. Jebsen Industrial worked closely with global specialty chemicals leader Chemtura to offer superior technical support to Chinese customers, winning a significant PetroChina contract and boosting Chemtura’s profile and its market share.


 

The Challenge: Becoming More Competitive in China


Chemtura Corporation is a global specialty chemicals company with leading positions in diversified markets around the world. Providing sustainable solutions to the transportation, energy, and electronics industries, and the agriculture sector, it has sales operations in more than 100 countries, manufacturing facilities in 14 countries, and 4,300 employees worldwide.

 

Chemtura products have been available in China through Jebsen Industrial since 1985. The company has also been directly investing in China since 2009. Its Asia Pacific headquarters are located in Shanghai and it has invested US million in joint ventures with Chinese companies over the past two years. In 2010, Chemtura established a new Application Development Center (ADC) in Nanjing as a center of technical excellence, research, and innovation for its businesses in Asia Pacific.

 

Chemtura’s product quality is very high and it has demonstrated a strong commitment to its customers in China. New formulations are now being developed at the Nanjing ADC to meet local needs and Chemtura is increasingly working with customers to help them evaluate new products and increase their competitiveness,” said Lorenz Zimmermann, Director, Jebsen Industrial. “However, both Jebsen Industrial and Chemtura felt that more could be done to enhance Chemtura’s market share in China.” 

 

Chemtura faces strong competition in China, where two other global chemical companies have been active for many years, developing substantial local facilities and good reputations.

 

The Solution: Proactive Support of an Expert Partner


Jebsen Industrial’s solution to increasing Chemtura’s market share was to reach out to key industry decision makers and work closely with Chemtura to offer very high levels of technical support on its products.

 

This approach draws on Jebsen Industrial’s in-depth knowledge of industry in China and its reputation as a trustworthy partner. Its success in securing the PetroChina Fushun metal alkyls contract for Chemtura is an example of how this works.

 

 

PetroChina Contract Proves Challenging


Jebsen Industrial approached PetroChina in late 2010 to suggest high-quality Chemtura metal alkyls for its new refining and petrochemical complex in Fushun, Liaoning Province. At that time, the new plant (Fushan Petrochemical) was being built as the largest integrated refining and petrochemical base in North-eastern China, with an 800,000tpa ethylene plant, a 300,000tpa polypropylene (PP) plant, and a 350,000tpa high density polyethylene (hdPE) plant, among other facilities.

 

Initially, Fushan Petrochemical wanted to use another brand of metal alkyls since it was already widely used in China. The company also preferred high-pressure storage containers.

 

Metal alkyls are highly flammable and must be protected from contact with water or air during transport and storage. To ensure safety, Chemtura transports its alkyls in custom-designed, company-owned steel containers. These pressure-resistant containers are able to bear a high-working pressure and have been constructed, tested, and approved according to the world’s most stringent transport regulations. 

 

 

PetroChina Appreciates Local Technical Support


Jebsen Industrial was proactive in offering Fushan Petrochemical a very high level of local support. Its value-added service included:

Specialist technical support from experienced Jebsen Industrial staff in China, with additional technical support from Chemtura when required;

 

  • Free safety training and fire-drill simulations by Chemtura;
  • Free protective clothing, first aid boxes, and connecting flanges.

 

Chemtura also agreed to provide special high-pressure containers for Fushun Petrochemical.

 

Fushan Petrochemical thus selected Jebsen Industrial and Chemtura to supply a range of high-quality organometallic compounds including TEA (triethylaluminium), 13% DEAC (diethylaluminum chloride), 50% THA (trihexylaluminum), and IPRA (isopropenylaluminum).

 

The order of metal alkyls helped boost Chemtura China sales by about 15% in 2011.

 

“Jebsen Industrial has been active in the petrochemicals industry in China for more than two decades, with a history in chemical products distribution that stretches back more than 100 years. We are committed to supporting our valued partners, such as Chemtura, and to continuing to help China’s petrochemical sector enhance product quality and output,” Mr. Zimmermann concluded.

 

For More Information

For more information about Jebsen Industrial solutions in the speciality chemicals sector, please send an email to indenquiry@jebsen.com or visit the website at: www.jebsenindustrial.com

 


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