lanxess liquid purification technologies experience with ... · lanxess liquid purification...

1 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project

LANXESS Liquid Purification Technologies

Experience with the GoAfrica! Project

5th German African Infrastructure Forum

Gerhard Simon - Director Sales Development EMEA


Introduction

- LANXESS

- Business Unit Liquid Purification Technologies


� Spin-off from Bayer in 2004

� Specialty chemicals portfolio: plastics, rubber, intermediates and

specialty chemicals

� 75 sites worldwide

� Approximately 19,200 employees in 25 countries

� Global sales of EUR ~9.2 billion in 2016*

� Enhancing its leading position in mid-sized markets

LANXESS –A globally operating specialty chemicals company

Specialty chemicals company

Global success story

Strategy of profitability and resilience

*Combined sales of LANXESS and Chemtura in 2016


LANXESS with new strategic focus: Building a more balanced company

Advanced

Intermediates

Performance

Chemicals

Engineering

MaterialsARLANXEO*

joint venture with

Saudi Aramco

established 2016 for

synthetic rubber

LANXESS AG

*ARLANXEO to be fully consolidated by LANXESS for the first three years

Specialty

Additives

� Material Protection

Products

� Inorganic Pigments

� Leather

� Liquid Purification

Technologies

� High Performance

Materials

� Urethane Systems

� Advanced

Industrial

Intermediates

� Saltigo

� Additives

� Rhein Chemie


Chemicals

Consumer Goods

OthersAutomotive

Construction

Agro

LANXESS well diversified (pre Chemtura acquisition)

ARLANXEO sales by industry 2016

Tires

Automotive

Others*

* Amongst other consumer, chemicals, construction

New LANXESS sales by industry 2016LANXESS group - sales by industry 2016

ChemicalsConsumer Goods

Tires Others

Automotive

Construc-

tion

Agro

Tires


Visible integration of Corporate Responsibility in the overall LANXESS strategy

� Signatory to the

U.N. Global

Compact

Joint initiative of international chemical companies for sustainable supply chains

in the chemicals industry

� Improving the sustainability and transparency supply chain

� Monitoring compliance with the “Supplier Code of Conduct”

� Sustainability assessment and joint audits

� Member of the Dow

Jones Sustainability

Index (World)

� Signatory of the

Responsible Care®

Global Charter

� 9001 & 14001:

Global matrix

certificate

� Member of

FTSE4Good

� Climate A List

� Sector Leader

„Energy &

Materials“

Initiatives and ratings


Facts

Products & Brands

Applications

� Part of: LANXESS Performance Chemicals Segment

� Customers: > 1,500

� Market position: One of the top ion exchange resin (IX) manufacturer, strong commitment to new reverse osmosis (RO) business

� Ion exchange resins, iron oxide adsorbers & functional polymers

� Reverse osmosis membrane elements

� Leading design software for IX and RO equipment dimensioning

BU Liquid Purification Technologies – a leading global solution supplier for liquid treatment


� Desalination of brackish water and seawater to

produce drinking water

� Drinking and groundwater remediation, removal of

contaminants such as arsenic, chromium, uranium

and heavy metals

� Removal of heavy metal ions and organic

contaminants from industrial wastewater

� Applications in fossil fuel power plants and nuclear

power plants include:

− Demineralization of boiler feed water

− Condensate polishing

− Water treatment in cooling ponds

− Wastewater treatment

Power generationWater treatment

Tailor-made solutions for over 500 applications in key industries (1/3)



� Cartridges (mains water)

− Softening (removing hardening materials)

� Beverages (soft drinks, juices, beer)

− Softening, desalination, debittering

� Sugar & sweeteners

− e.g., demineralization, decolorization, final

cleaning (polishing), inversion, chromatography

� Industrial food processing

� Catalysis

− Catalysis for plastics production or esterification,

e.g., BPA, MTBE

� Chloralkali electrolysis (brine processing)

� Process steam treatment and recycling

− e.g., in the metal processing and finishing

industry

� Purifying organic chemicals

− e.g., using adsorbers

Chemistry & petrochemistryFood & beverages


� Recovering base metals, rare earths

and precious metals

� Processing metal concentrates

− e.g., purification of electrolytes

� Acid processing

� Treatment of mining wastewater

− e.g., removing heavy metal traces

− AMD (Acid Mine Drainage)

� Treating ultrapure water to manufacture:

− Semiconductors

− LCD screens

− Solar cells

− LED components

Electronics & microelectronicsMining



Experience with the GoAfrica! -

Project of LANXESS LPT

Basic Idea & Scope

Step 1 Data Analysis

Step 2 Define Focus Countries

Step 3 Roll-out




Basic Idea & Scope



Step 3 Roll-out


� Global production network to

serve worldwide demand

� Three state-of-the-art IX

production sites in Germany

and India

� Production facilities for RO

membrane elements and iron

oxide adsorber in Germany

� Global sales with approx. 60

direct marketing experts and

strong distribution networks

Leverkusen, DE

Birmingham, US

Bitterfeld, DE

A reliable partner – worldwideProduction site Technical marketing center

Jhagadia, IN

Toyohashi, JP

Singapore, SG

Shanghai, CN

Mumbai, IN

São Paulo, BR

México City, MX

Johannesburg, SA

Sydney, AU

LANXESS sites for liquid purification applications –products and solutions for customers worldwide

Krefeld, DE

Moscow, RU


Geographical coverage in 2015

� North African countries (Morocco, Algeria, Egypt, Tunisia,

Lybia) are covered by Sales Director located in Italy;

Business is handled by a Middle East distributor

� Sales Director Africa located in Johannesburg plus two

distributors focusing on South Africa region

� „Whitespot“-area identified between North-African belt and

South-Africa region

subject to „GoAfrica!“ Project

LANXESS LPT Africa set-up at starting point


Actions to prepare market entry

� Selection of 2-3 focus areas and countries respecting economic criteria as well as language, culture,

distances and political situation

� Gain information about market potential and market size for LPT

� Check on suitable business models

� Visit stakeholders in focus countries

� Identification and contact to potential local partners in focus countries

� Indentify and contact major accounts

� Communication and networking with global and local stakeholders (government & authorities, associations,

engineering companies, etc.)

Project scope “GoAfrica!”




Basic Idea & Scope



Step 3 Roll-out


Step 1 Data Analysis1st selection of focus countries - Subject to further evaluation

Criteria

� Fit into the selected

geographical area

� Total GDP

� Political stability /

accessability by travel

� Language barriers

� Known basic information

about present stage of

industrial development


Quality of Data

� Statistics often not very

well maintained

� data either not

available or not

consistent from diff.

sources

� Material not appearing

when part of a plant

Step 1 Data AnalysisMarket size estimation – Import statistics

2014 2015 2016

Value (USD)

2014 2015 2016

QTY (KG)

2014 2015 2016

Av. Price (USD/KG)

Source: Global Trade Atlas


Tricky to find

� Provider of study

needs reliable

database and proven

experience in the field

� Many market studíes

do not contain

breakdown of Africa to

countries

� At least few

information for major

countries as Nigeria,

Kenya, etc. are

available

Step 1 Data AnalysisMarket size estimation – Market Studies

Source: Global Water Intelligence - Global Water Market Study 2017

Equipment (USD) 2013 2014 2015 2016 2017 2018 2019 2020

Ion exchange, Industrial

High pressure membranes (RO/NF); Industrial

High pressure membranes (RO/NF), Utility

ED/EDI, Industrial

Activated carbon; Utility

Total

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Ion exchange, Industrial

High pressure membranes (RO/NF); Industrial

High pressure membranes (RO/NF), Utility

ED/EDI, Industrial

Activated carbon; Utility

mn

US

D


LXS risk map Africa

Step 1 Data AnalysisPolitical stability – Preset focus areas vs. LXS risk map

Travel ban

Travel warning

as of 8/2016

Selected focus areas




Basic Idea & Scope



Step 3 Roll-out


Strategic geographical focus for LPT

West-Africa:

� Nigeria defined as focus country to start

� in 2nd step Ghana and Cote d´Ivory as hub to cover

francophonic countries in West-Africa

East-Africa:

� Kenya defined as focus country to start

� in 2nd step extent as hub to Tanzania, Uganda,

Rwanda, Ethiopia

Central Africa (2nd step):

� Zambia defined as focus country as hub to Angola &

DR Congo

Step 2 Define Focus CountriesFinal definition of focus areas and focus countries

Focus area

Focus country




Basic Idea & Scope



Step 3 Roll-out


� Delegations of the German Chamber of commerce

(AHK) in Kenya and Nigeria

� German Trade and Invest (GTAI): Information

service financed by German Government with

correspondents located in several SSA countries

� German Water Partnership (GWP) Working Group

Africa: joint booth on fares, arranging travels,

exchange forum for companies with SSA Strategy

� Deutsche Gesellschaft für Internationale

Zusammenarbeit (GIZ), Kenya: steering local

projects with technology companies and

governmental organization

� Afrikaverein der Deutschen Wirtschaft (AV):

arranging travels & meetings with local Gov.,

Authorities, industrial customers

Local actions

� Meeting with local offices of organizations

mentioned on the left

� Visits on trade fairs/conferences in Ghana, Kenya

and Nigeria

� Discussions with Western Companies doing

business in Africa

� Started a list of potential partners from meetings/

trade fairs/conferences in Europe and Subsahara

Step 3 Roll-outActions 2016 – Preparation

Organisations supporting market entry


� Selection of support for market entry actions in

focus countries such as:

� Research of target industries

� Research of potential partners

� Research of business conditions

� Coordinated business trips

� Discussion with consultants

� Discussion with AHK´s

Actions / StatusStructured research for market entry

� LPT internal decision to start project for market

entry support in Kenya and Nigeria with AHK´s in

December 2016

� Projects with AHK Kenya and Nigeria started in

Jan 2017:

� Phase 1: Data evaluation

� Phase 2: Business trips to visit stakeholders

� Phase 3: follow-up

� Several potential cooperation partners identified,

first business started

� Continued efforts to promote brandname, as

technical trainings involving local associations

Step 3 Roll-outDevelopment 2017 - Market entry activities


Just about 2 years of experience…

� Take your time - establishing a network needs

time, expect business on mid-term

� You need to be there – search for local

representatives, work with local institutions &

partners

� Be persistent – one contact is no contact

� Spend efforts to establish the brand in the

countries – e.g. events, promos, publications,

seminars

� Be open minded to understand cultural

differences and work as a translator in the

company

Experience with the GoAfrica! - Project of LANXESS LPTLessons learned


Safe harbour statement

This presentation contains certain forward-looking statements, including assumptions, opinions and views of the company or

cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results,

financial position, development or performance of the company to differ materially from the estimations expressed or implied

herein. The company does not guarantee that the assumptions underlying such forward looking statements are free from errors

nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual

occurrence of the forecasted developments.

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information,

including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any

errors, omissions or misstatements contained herein, and, accordingly, none of the company or any of its parent or subsidiary

undertakings or any of such person’s officers, directors or employees accepts any liability whatsoever arising directly or

indirectly from the use of this document.

lanxess liquid purification technologies experience with ... · lanxess liquid purification...

Documents