Specialty Chemicals Businesses in Several Global Chemical Companies

 In a previous blog, I showed the reporting segment names used by 38 global chemical companies.  (Click here to see that blog.)   Seven of the 38 companies have specialty in one of their reporting segments names (Albemarle, Clariant, Covestro, Evonik, Shin-Etsu, Solvay, and Wacker).   

In this blog, I provide brief descriptions in the table below on those seven companies’ (Albemarle, Clariant, Covestro, Evonik, Shin-Etsu, Solvay, and Wacker) specialty chemicals businesses.  I also reviewed the annual reports of the other 31 companies as to what specialty chemicals businesses they have, even though they have no specialty chemicals reporting business segments.  The other companies that indicate specialty chemicals businesses are also presented in the table, along with brief descriptions of their specialty chemicals businesses based on my review of the companies’ annual reports.  Altogether, 11 of the 38 companies indicate specialty chemicals businesses, and 27 of the 38 companies report no specialty chemicals businesses and are not listed in the table below. 

 

company	additive businesses
albemarle	highly-engineered specialty chemicals	bromine-based chemicals for flame prevention, etc.	tertiary amines for surfactants, biocides, etc.
celanese	chemicals produced for several industries
chemours	titanium dioxide, refrigerants, fluoropolymer resins, and sodium cyanide used in several industries
clariant	pure-play specialty chemicals company	high value and often custom-manufactured chemicals with specific performance and functionality
eastman	objective is to be an outperforming specialty chemicals company
evonik	focuses on businesses with clear specialty chemicals characteristics	specialty chemicals make indispensable contributions to  the benefits of customers' products
lanxess	honing profile as a specialty chemical company	specialty chemicals for battery technologies
shin-etsu	cellulose derivatives -materials made from a natural polymer	synthetic pheromones	aroma chemicals
solvay	putting customers at core of its organization to enhance long-term growth as specialty chemicals company
sumitomo	one of busines segments characterized as specialty chemicals	raw material additives
wacker	states that Wacker is a global company with state-of-the-art specialty chemical products found in countless everyday items

 

Here are some conclusions from my research of the annual reports of the 38 global chemical companies related to their “specialty chemicals” businesses: 

• As indicated in the table above for Clariant and Evonik, a special chemicals business is one that is of high value and offers custom-manufactured chemicals with specific performance and functionality to customers.   Specialty chemicals make indispensable contributions to the benefits of the  customers’ products. 
• Several chemical companies in the table above, e.g., Clariant, Eastman, Evonik, Lanxess, Solvay, and Wacker, consider themselves as purely a specialty chemicals company or are pursuing that goal as the best alternative for them.  Stated reasons for this relate to the higher margins, higher profits that can be obtained by providing customers with specialty chemicals that are vital to those customers’ businesses. 
• Success as a specialty-chemicals company probably requires excellent research & development (R&D) to find those chemicals and chemical technologies that will make a difference for their customers.  Perhaps one way of differentiating a special chemicals company from other chemical companies is in the company’s R&D programs and expenditures. 
• The two Japanese chemical companies in the table above (Shin-Etsu and Sumitomo) do not emphasize those segments that are described as specialty chemicals (they represent small percentages of overall sales) or that they are aiming to be a specialty chemicals company.

Nutrition Businesses in Several Global Chemical Companies

In a previous blog, I showed the reporting segment names used by 38 global chemical companies.  (Click here to see that blog.)   Three of the 38 companies have nutrition in one of their reporting segments names (BASF, DSM, and Evonik).   

In this blog, I provide brief descriptions in the table below on those three companies’ (BASF, DSM, and Evonik) nutrition businesses.  I also reviewed the annual reports of the other 35 companies as to what nutrition businesses they have, even though they have no nutrition reporting business segments.  The other companies that indicate nutrition businesses are also presented in the table, along with brief descriptions of their nutrition businesses based on my review of the companies’ annual reports.  Altogether, 6 of the 38 companies indicate nutrition businesses, and 32 of the 38 companies report no nutrition businesses and are not listed in the table below. 

 

company	nutrition businesses
arkema	produces methyl mercaptan used in animal feed dietary supplements
basf	additives for food and feed, such as vitamins, carotenoids, sterols, enzymes, omega-3-fatty acids, and human oligosaccharides
dsm	nutritional ingredients for humans and animals, such as vitamins, nutritional lipids, minerals, eubiotics, enzymes, yeasts, and human milk oligosaccharides	precision and personalization solutions for optimal nutrition	plant-based specialty proteins
eastman	allylamine derivatives used in animal nutrition, e.g., gut health
evonik	animal nutrition, e.g., essential amino acids	human nutrition, e.g., omega-3-fatty acids
yara	crop nutrition

The data presented above suggests that a nutrition business is not being pursued by most of the 38 large global chemical companies being researched. Two of the 38 companies, Dupont and FMC, had nutrition businesses but recently sold them.  Five of the six companies in the table above are European.  This might suggest a different perspective in Europe on the business prospects for nutrition by a chemical company compared to America and Japan company perspectives.  Of the European companies in the table, DSM seems to have the most unique commitment of their resources to pursuing a nutrition business.  For example, DSM offers a service business in which it provides customers a personalized, precision solution related to nutrition.  DSM also, interesting, is pursuing business in the cultured meat and plant-based protein areas as an alternative to meat-base food.

Polymer Businesses in Several Global Chemical Companies

 In a previous blog, I showed the reporting segment names used by 38 global chemical companies.  (Click here to see that blog.)   Five of the 38 companies have polymer in one of their reporting segments names (Evonik, Lanxess, Lyondellbasell, Solvay, and Wacker).   

In this blog, I provide brief descriptions in the table below on those five companies’ (Evonik, Lanxess, Lyondellbasell, Solvay, and Wacker) polymer businesses.  I also reviewed the annual reports of the other 33 companies as to what polymer businesses they have, even though they have no polymer reporting business segments.  The other companies that indicate polymer businesses are also presented in the table, along with brief descriptions of their polymer businesses based on my review of the companies’ annual reports.  Altogether, 25 of the 38 companies indicate polymers businesses, and 13 of the 38 companies report no polymer businesses and are not listed in the table below. 

 

company	polymers businesses
arkema	high performance polymers for uses in foot ware, technical fabrics, batteries, additive manufacturing, etc.	polyamide and pvdf fluoropolymer recycling	biobased polymers	electroactive polymers
asahi kasei	membrane and separation technologies polymers
basf	biodegradability of biopolymers	polyamides
celanese	high performance, engineering polymers	liquid crystal polymers	emulsion polymers	ethylene vinyl acetate polymers	specialty polymers
chemours	fluoropolymers
clariant	biopolymers
covestro	high-tech polymers	biopolymers	polycarbonates	polyurethanes
dow	silicone polymer systems	biobased polymers	polymer recycling	polyurethanes	functional polymers
dsm	polymers for use in personal care	biomedical polymers
dupont	polymer-based, high performance materials	thermoplastic and thermoset engineering polymers	biopolymers
eastman	polyester polymers	specialty polymers
evonik	high performance polymers such as polyamide 12	pharmaceutical polymers	biodegradable polymers
huntsman	epoxy, acrylic and polyurethane, and acrylonitrile butadiene-based polymer formulations
kemira	polymers used in water treatment
lyondellbasell	polymer solutions such as polypropylene compounds	advanced polymers	polymer recycling
mitsui	functional polymers used in automobiles, smart phones, semiconductor manufacturing, and packaging	performance polymers	polypropylene products	biobased polymers
nitto denko	polymer function control technology	polymer analysis and evaluation technology
shin-etsu	super absorbent polymers	functional polymers	silicone-based polymers	polycarbonate sheets
solvay	high performance, specialty polymers such as pvdf	aromatic polymers	high-barrier polymers	fluoropolymers
sumitomo	liquid crystal polymers	polyethylene and polypropylene	mma polymers	polyether sulfone (pes)	polymer oled materials
toray	high performance polymers such as abs, nylon, pbt, pps, and liquid crystals	biomass polymers	polymer recycling	polymer films
tosoh	polyethylene polymers
trinseo	styrene-butadiene rubber products	copolymers such as abs, san, and pc
wacker	polymer binders	polymer powders	construction polymers	polymer additives
westlake	polyethylene

  

The high percentage of the 38 companies pursuing polymer businesses (25 of 38 companies; 66%) suggests the importance and the demand for polymer technologies and polymer materials in the economy.   The brief descriptions in the table indicate the views of many chemical companies on the importance of polymers as innovative performing materials, materials that are needed if technology breakthroughs are going to be commercially successful.  The descriptions also show that many chemical companies are pursuing biobased raw materials in producing polymers, reducing the reliance of fossil fuels in producing polymers.