INFORMEX: Albemarle looks to double fine chemistry services turnover by 2014
Success attributed to spread of business across multiple industry sectors
With sales of $750m in 2011 the fine chemistry business unit of Albemarle achieved a record year. It was a particularly good result for the contract manufacturing business, and the aim now is to double its turnover over the next two years.
According to David DeCuir, Director, Customer Services and Fine Chemistry R&D, the key to this rapid growth is to spread the net wide over a range of industry sectors, and to view the business as one based on long-term relationships rather than mere transactions. ‘Customers stay with us for years and invest their own money in our plants to enable us to make products for them,’ he explained. ‘This is more cost-effective for them than if we were to recoup an investment through high product prices.’
The value of investments in Albemarle’s fine chemical facilities in 2012 is expected to approach $20m, he added.
The growth target is expected to be met by growth in the company’s pipeline; any acquisition would be additional to organic expansion. Having just missed out on two deals last year, the fine chemistry services business is keen to find a suitable match in 2012, particularly since its plants are running at record capacity.
It will be looking increase its capabilities by moving into different areas both in terms of activity – high potency is a distinct possibility - and in terms of area. ‘We are firmly centred on North America,’ said DeCuir. ‘We don’t yet have a presence in India, so that is a big target - bigger than China.’
