Chemical Industry, Magnificent 4 27
Chemical Industry, Magnificent 4 27
Chemical Industry, Magnificent 4 27
1.2
History
2.2
Porter’s 5
2.5
Leading Companies
3
Industry outline
1
1.1 Definition and segmentation
Chemical
Industry
is:
converts:
consists
one of the of:
largest and raw materials
the most companies (oil, natural gas,
diversified engaged in the air, metals and
industries in processing and minerals)
the World.. refinement of
industrial into more than
chemicals as 70 000 different
well as gases.. products
Industry outline
1
1.1 Definition and segmentation
Segmentation by product
Basic
Consumer
• polymers, bulk petrochemicals intermediates
Basicand basic industrials, inorganic
• other derivatives
Chemicals
products; chemicals;
chemicals, and fertilizers
26,70% 42,3%
Life sciences
Basic chemicals
Specialty Life sciences
• electronic chemicals, industrial gases, adhesives
and sealants as well as coatings, industrial
Specialtyand
chemicals
chemicals institutional cleaning chemicals, and catalysts
Consumer products
Consumer
• soaps, detergents, and cosmetics
products
Specialty
chemicals; Life sciences;
9,10% 26,7%
Industry outline
1
1.2
History
Middle
ages
10th cent
6th cent ~1630
AD
7000 BC
BC
Alchemists
Chinese Pilgrims
Middle east Phoenicians
artisans •Black • Chemicals
•Refined powder, a •Gun powder
•Soap
alkali and primitive
limestone to explosive
produce
glass
Industry outline
1
1.2
History
… to the present
1970…
1930 –
1970
1860 –
1800 1920
~ 1860
Concerns about
toxic wastes
• Nylon
•Man made • Increased
fibers •Production of government
Modern organic •Major boost chemicals for oil regulation
chemical during WW 2 •Market
industry •Discovery of saturation
polymers
• Dye for textiles •Plastics, paints
Industry outline
1
Market overview
1.3
http://www.cefic.be/Facts-and-Figures/Profile-of-the-Chemical-Industry/
Industry outline
1
Market overview
1.3
LyondellBasell
Industries; 3,09%
SABIC; 2,75%
Rest; 64,42%
Mitsubishi Chemical;
INEOS; 2,60% 2,72%
DuPont; 2,62%
INEOS; 2,60%
www.icis.com
Industry Analysis
2
2.1 STEEPLE
Sociological
Factors Technological
Factors
•Increased unemployment rate
•Aging population •Huge spending on R&D
•Work force health care issues •& IT Economic
•Activists pressure Factors
Political/Legal
Factors Environmental
Ethical Factors
Factors •New EU regulatory system: REACH
Integration •Pollution
•US Regulatory system: TSCA •Energy consumption
•Responsible Care programs •Strict regulation on working •Green house gas emissions
•Improving working conditions
conditions
Industry Analysis
2
2.2
Porter’s 5
Power of suppliers
Legal
Industry rivalry
•Low product
differentiation
• Low concentrations
• Decreased margins
• High Fixed costs
Power of buyers
… go further
downstream and also
Integrated produce polymers and
even specialty
chemicals
… buy intermediate
products (basic chemical,
polymers) and process
them to specialty
Specialties
products.:
• focused players
http://www.mce-ama.com/ATKearney_report
• broad based players
Industry Analysis
2
Strategic groups & KSF
2.4
Integrated
• Customer intimacy
• Capacity management
• Innovation capabilities
• Supply chain
Specialties capabilities
Leading Companies
3
Beta NA 2,41 NA
company info
Dr. Jergen Hambrecht - Chairman of the Board of Executive Directors
Company info
History:
1897: Dow Chemical Company is incorporated
1906: Agricultural division is established
1930’s: Production of plastic resins
1937: Listed on the NYSE
1952: First overseas subsidiary
1973: First foreign industrial company on TSE
1983: First compact disks are introduced
1990: Product range enlargement
2000- Global presence
Mission:
“to combine power of science and technology
and innovate what is essential to human
progress”
Andrew Leveris
President, Chairman, CEO
Mission:
“The creation of shareholder and societal
value while we reduce our environmental footprint
along the value chains in which we operate “
Vision:
To be the world's most dynamic science company, creating
sustainable solutions essential to a better, safer, healthier life for
people everywhere.
Revenue: $26 Billion
Employees: 58.000
Operations: 80 countries worldwide
Company info