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Brenntag will implement global transformation program to position the Group for sustainable organic earnings growth

The Management Board and the Supervisory Board of Brenntag AG (ISIN DE000A1DAHH0), the global market leader in chemical and ingredients distribution, decided about the scope of Project Brenntag, the company’s comprehensive transformation program, that is expected to deliver a sustainable annual contribution of additional operating EBITDA of 220 million EUR in total, which will increase year by year to the full annual potential already by beginning of 2023. The program is designed to further expand Brenntag’s global market leading position through an increased focus, reduced complexity, and even stronger partnerships with customers and suppliers. Starting in January 2021, the company will be steered in two global divisions with a strong focus on changing customer and supplier needs: Brenntag Essentials and Brenntag Specialties. As part of the transformation, Brenntag will invest in optimizing its global site network and improve its utilization.

  • Transformation program “Project Brenntag” to deliver additional operating EBITDA contribution of 220 million EUR in total, which will increase year by year to the full annual potential already by beginning of 2023
  • Significant investments in optimizing the global site network to improve utilization 
  • Reduction of about 1,300 jobs globally intended and to be carried out in a socially responsible manner over the next two years
  • Total net cash outflow of around 370 million EUR by 2023
  • Christian Kohlpaintner, Chief Executive Officer Brenntag Group: “We are determined to sustainably strengthen our global leading position. With Project Brenntag we take decisive action and will ensure consistent execution of our transformation journey.”

Christian Kohlpaintner, Chief Executive Officer Brenntag Group, said: “With our transformation program Project Brenntag, we take decisive action to create the strong basis for sustainable organic earnings growth in the coming years. The introduction of our new operating model was a first important milestone to cope with future requirements and stay at the top of our industry. To harvest our full potential, it is crucial to become leaner and more efficient. The implementation of the various measures of Project Brenntag will also include an adjustment of our global workforce. This step will be anything but easy for us, but it is necessary to ensure Brenntag’s success in the long-term. We intend to perform any planned reductions in a socially responsible manner and strive to avoid compulsory redundancies.”

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Significant operating EBITDA uplift 

The Group expects Project Brenntag to deliver a sustainable annual contribution in additional operating EBITDA of 220 million EUR in total, which will increase year by year to the full annual potential already by beginning of 2023. The total net cash outflow to incur in course of the implementation of Project Brenntag is expected to amount to around 370 million EUR. Project Brenntag will lead to significant efficiency gains and will contribute to top-line growth as well. 

Brenntag expects the implementation of the various measures over the next two years to lead to a reduction of approximately 1,300 jobs in total out of its workforce of about 17,500 employees worldwide, of which a reduction of less than 200 jobs is expected to impact Germany. Brenntag plans to use natural fluctuation, mutually agreed separation, and regular and early retirement schemes to perform the adjustments in a socially responsible manner and strives to avoid compulsory redundancies. The measures will be further elaborated over the coming months in line with local rules and labor regulations. Brenntag will maintain a close and trusting dialog with employee representatives and follow the appropriate information and consultation procedures in the concerned countries.


Consolidated global network of sites with increased proximity to customers

To become leaner and more efficient, Brenntag will invest significantly in its site network to support customers faster, broader, and better. While maintaining its global reach, with the optimized network Brenntag will improve efficiency, leverage scale benefits across divisions and products, and increase proximity to business partners. The optimization envisions closing sites to consolidate the site network in geographies and improve the utilization of existing sites. Brenntag plans to close about 100 sites across all regions, half of which are Third-Party Logistics Sites. At the same time, the Group will invest into existing and new sites, create regional hubs, and close white spots in the network. 

New leadership culture with clearly defined accountabilities

In line with the operating model, Project Brenntag also entails new roles and clearly defined accountabilities and responsibilities. It includes a new leadership structure, starting with the composition of the Management Board and the top leadership team. The competences and skills needed for the transformation have been defined, and Brenntag will invest significantly in training to enable its employees to bring in their strengths and expertise in the best possible way.

Note:

Further details regarding the transformation of Brenntag Group and "Project Brenntag" will be presented at a Capital Markets Update on November 4, 2020.

About Brenntag:

Brenntag is the global market leader in chemical and ingredients distribution. We connect our suppliers and customers in value-adding partnerships. Our almost 17,500 employees provide tailor-made application, marketing and supply chain solutions. Technical and formulation support, market, industry and regulatory expertise as well as advanced digital tools are just some examples of our services that are aiming to create an excellent customer experience. Our full-line portfolio comprises specialty and industrial chemicals and ingredients of a world-class supplier base. Building on its long-standing experience, unmatched global reach and local excellence, Brenntag works closely alongside its partners to make their business more successful. We are committed to contribute towards greater sustainability in our own business and the industries we serve, and to achieve sustainable profitable growth. Headquartered in Essen (Germany) and with regional headquarters in Philadelphia, Houston and Singapore, Brenntag operates a unique global network with more than 640 locations in 77 countries. The company generated sales of EUR 12.8 billion (USD 14.4 billion) in 2019. Brenntag shares are traded at the Frankfurt Stock Exchange (BNR).

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Brenntag introduces new operating model with two global divisions to serve its business partners faster, broader, and better

Brenntag, the global market leader in chemical and ingredients distribution, is introducing a new operating model. As per January 2021, the company will be steered in two global divisions with strong focus on customer and supplier needs and derived from this, a distinct market approach: Brenntag Essentials and Brenntag Specialties. The new operating model is a core element of the company’s transformation program "Project Brenntag" that aims to set the base for sustainable organic earnings growth in a rapidly changing global market environment.

  • As per January 1, 2021, Brenntag will operate with two global divisions: Brenntag Essentials and Brenntag Specialties 
  • Based on its core as full-line distributor of chemicals and ingredients, Brenntag will gain a sharpened profile towards relevant industry segments
  • Christian Kohlpaintner, CEO Brenntag Group: “The two Brenntag divisions with their clear focus, differentiated steering and distinct market approach will create even stronger partnerships with customers and suppliers.”

Full-line chemical and ingredients distribution will remain the core of Brenntag’s business model. Brenntag continues to offer the most comprehensive portfolio of chemical products, ingredients, and value-added services in the industry. With the two new divisions the company will better leverage on its strengths while sharpening its profile towards relevant industry segments.

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Christian Kohlpaintner, Chief Executive Officer of Brenntag Group, said: “We are in a leading position globally and have a resilient business model. However, the requirements of our business partners and industry change. By setting up two global champions with a differentiated steering approach and addressing the diverse markets needs and expectations, we develop our company to lead our industry as preferred partner for customers and suppliers.”

Brenntag Essentials 

Brenntag Essentials will market a broad portfolio of process chemicals across a wide range of industries and applications. The division will leverage scale with flexible and cost-efficient delivery at competitive prices and a highly efficient business process backend. Brenntag Essentials builds on its global reach and comprehensive product portfolio and continues to follow a geographic and regional logic. “Brenntag Essentials will be the agile, lean, and efficient distribution partner of customers and suppliers in local geographies in a broad range of industries. It stands for superior customer proximity and local market know-how”, said Steven Terwindt, Member of the Management Board of Brenntag Group and future COO Brenntag Essentials.

Brenntag Specialties 

Brenntag Specialties will focus on ingredients and value-added services that are directly used in the production of the customers' end-products. The division will thus focus on selected industries: Nutrition, Pharma, Personal Care / HI&I (Home, Industrial & Institutional), Material Science (Coatings & Constructions, Polymers, Rubber), Water Treatment and Lubricants. These focus industries are large globally relevant industries with significant solutions potential and characterized by high regulatory requirements. “The division will more consequently leverage the full potential of our product and ingredients portfolio, which is the broadest in the market, and our unique technical and application expertise. Thus, we will capture untapped opportunities together with our business partners”, said Henri Nejade, Member of the Management Board of Brenntag Group and future COO Brenntag Specialties. 

Both Brenntag divisions will equally contribute to strengthening and expanding Brenntag’s global market leading position in specialties and full-line chemical distribution. Their differentiated market approach is backed by a globally consistent and advanced customer segmentation and a customized sales organization designed to reinforce Brenntag’s leadership in sales and customer service in the chemical distribution industry.

New Management Board responsibilities

In accordance with the new operating model, roles and responsibilities in the Management Board of Brenntag AG will partly change as per January 1, 2021. Besides CEO (Christian Kohlpaintner) and CFO (Georg Müller), the roles of two Chief Operating Officers (COO) are introduced: While Steven Terwindt will take over the responsibility for Brenntag Essentials as COO, Henri Nejade will lead Brenntag Specialties as COO. Furthermore, Brenntag will introduce the role of a Chief Transformation Officer (CTO) who has yet to be appointed. The CTO will be amongst others responsible for the overall transformation process initiated, drive functional excellence and the digital transformation of Brenntag, completing the future five-member Management Board. In addition, Brenntag has already appointed the new Level-1 Leadership Team members, who will drive the implementation and execution of the new operating model.

About Brenntag:

Brenntag is the global market leader in chemical and ingredients distribution. We connect our suppliers and customers in value-adding partnerships. Our almost 17,500 employees provide tailor-made application, marketing and supply chain solutions. Technical and formulation support, market, industry and regulatory expertise as well as advanced digital tools are just some examples of our services that are aiming to create an excellent customer experience. Our full-line portfolio comprises specialty and industrial chemicals and ingredients of a world-class supplier base. Building on its long-standing experience, unmatched global reach and local excellence, Brenntag works closely alongside its partners to make their business more successful. We are committed to contribute towards greater sustainability in our own business and the industries we serve, and to achieve sustainable profitable growth. Headquartered in Essen (Germany) and with regional headquarters in Philadelphia, Houston and Singapore, Brenntag operates a unique global network with more than 640 locations in 77 countries. The company generated sales of EUR 12.8 billion (USD 14.4 billion) in 2019. Brenntag shares are traded at the Frankfurt Stock Exchange (BNR).

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Lenzing is founding partner of the Renewable Carbon Initiative

The newly launched Renewable Carbon Initiative strives to herald the end of the fossil age for all organic chemicals and materials by 2050. Within the RCI Lenzing will especially focus on further greening up the textile and nonwoven businesses.

Lenzing – Eleven leading companies from six countries founded the Renewable Carbon Initiative (RCI) in September 2020 under the leadership of nova-Institute (Germany). The aim of the initiative is to support and speed up the transition from fossil carbon to renewable carbon for all organic chemicals and materials.

Besides Lenzing, these ten companies are founding members of the RCI, which also form the Core Advisory Board: Beiersdorf (Germany), Cosun Beet Company (The Netherlands), Covestro (Germany), Henkel (Germany), LanzaTech (USA), NESTE (Finland), SHV Energy (The Netherlands), Stahl (The Netherlands), Unilever (UK) and UPM (Finland).

The Renewable Carbon Initiative (RCI) addresses the core problem of climate change, which is extracting and using additional fossil carbon from the ground. The vision is stated clearly: By 2050, fossil carbon shall be completely substituted by renewable carbon, which is carbon from alternative sources: biomass, direct CO2 utilisation and recycling. The founders are convinced that this is the only way for chemicals, plastics and other organic materials to become sustainable, climate-friendly and part of the circular economy – part of the future.

Robert van de Kerkhof, Chief Commercial Officer of the Lenzing GroupRobert van de Kerkhof, Chief Commercial Officer of the Lenzing Group

Robert van de Kerkhof, Chief Commercial Officer of the Lenzing Group: „We at Lenzing believe that we need to create strategic partnerships to implement systemic change. Therefore, we support the Renewable Carbon Initiative. First of all, because it is the right thing to do and, second, it is also fully aligned with our corporate strategy. Therefore, we are part of the RCI from the beginning and its commitment to start acting now.”

Michael Carus, CEO of nova-Institute and head of the Renewable Carbon Initiative: “This is about a fundamental change in the chemical industry. Just as the energy industry is being converted to renewable energies, so renewable carbon will become the new foundation of the future chemical and material industry. The initiative starts today and will be visibly present from now on. We want to accelerate the change.”

The main avenues on which the initiative wants to deliver change are threefold. One, the initiative strives to create cross-industry platforms that will demonstrate feasibility of renewable carbon in tangible activities. Two, one main target will be to advocate for legislation, taxation and regulation changes to give renewable carbon a level commercial playing field to play on. Finally, the third avenue will be to create a wider pull for sustainable options by raising awareness and understanding of renewable carbon level amongst the business community and the wider public.

The Renewable Carbon Initiative has made a powerful start with eleven international member companies and the personal support of more than 100 industry experts. The initiative hopes to gain many additional members and supporters in the upcoming months to keep the strong momentum of the initiative. Working together, RCI will support and accelerate the transition from fossil to renewable carbon for all organic chemicals and materials.

In the end, the aim is as complex as it is simple: renewable energy and renewable carbon for a sustainable future. Within the RCI Lenzing will especially focus on further greening up the textile and nonwoven businesses. Here we will promote this concept and encourage our partners to become a part of this vision.

More information about the Renewable Carbon Initiative can be found on www.renewable-carbon-initiative.com

About the Lenzing Group
The Lenzing Group stands for ecologically responsible production of specialty fibers made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments.
The Lenzing Group’s high-quality fibers form the basis for a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.
The business model of the Lenzing Group goes far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, creating added value for consumers. The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy.

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6 New Products for Use in Li-ion Batteries

Goodfellow is pleased to announce the addition of six chemical compounds for use in Li-ion batteries. Each of these materials offers something different in terms of the variables associated with Li-ion batteries, such as energy density, potential safety, cost, recharging time, cycle life, scalability, etc. Customers are encouraged to contact a member of the Goodfellow technical team to discuss specific application requirements.
 
A lithium-ion battery consists of a cathode (positive electrode), an anode (negative electrode), and an electrolyte (used as a conductor) with a charge-discharge cycle.

Li-ion battery technologyLi-ion battery technology

Cathode materials*

LiCoO2    Lithium Cobalt Oxide                       
As one of the most common oxide cathode materials for traditional Li-ion batteries, LiCoO2 (LCO) is also under consideration for use in all solid-state batteries.       
 
LiMn2O      Lithium Manganese Oxide       
The spinel lithium manganese oxide (LiMn2O4 or LMO) is an exceptional cathode material for aqueous and organic lithium-ion batteries due to its low cost, environmental friendliness and suitable potential capabilities.
                             
LiNi0.5Mn1.5O4   Lithium Nickel Manganese Oxide (LNMO)              
Lithium nickel manganese oxides are promising, being nontoxic while having high thermal stability. They currently are attracting attention as alternative cathode electrode materials to the commercial LiCoO2 electrode.

Anode materials*

Li4Ti5O12   Lithium Titanium Oxide
LTO (Li4Ti5O12) has been highlighted as anode material for next-generation lithium ion secondary batteries due to advantages such as a high rate capability, excellent cyclic performance, and safety.
 
Solid electrolytes*

Li7La3Zr2O12      Lithium Lanthanum Zirconium Oxide (LLZO)          
Solid-state electrolyte lithium lanthanum zirconium oxide garnet (LLZO) has attracted a great deal of attention due to its high room temperature conductivity of lithium ions and stability against lithium metal electrodes.
 
Li4SiO4   Lithium Orthosilicate                            
This is a solid-state electrolyte for lithium-ion batteries and specifically for the production of solid-state thin film batteries (TFB).
 
Other products available from Goodfellow which can be used in lithium batteries

Li3PO4    Lithium Phosphate – a thin film solid electrolyte material known as LiPON used in thin film lithium batteries (TFB).          
Copper foils (as current collectors), nickel foils, cobalt foils, aluminium foils (battery slurry)
Graphite – for negative electrodes
Silicone elastomer in any form
PVDF films – used as binders, depending on the battery

*Available as sputtering targets, or in powder form upon request.
 
About Goodfellow
For more than 50 years, Goodfellow has been a leading supplier of metals, polymers, ceramics and other materials to meet the needs of science and industry worldwide. The company specialises in supplying small quantities (a few grams to a few kilos) of metals and materials for research, prototype development and specialised manufacturing applications. Standard products can be found online at the comprehensive Goodfellow Catalogue. Custom products and materials in larger quantities are available upon request at info@goodfellow.com.

Goodfellow Cambridge Limited
Ermine Business Park, Huntingdon, PE29 6WR, UK
Telephone: +44 1480 424800      Fax: +44 1480 424900
E-mail: info@goodfellow.com   Web: www.goodfellow.com

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CSafe Global Publishes Results of Second Pilot Test for New Shipment Visibility Capability

CSafe Global has published the results of their second pilot shipment which focused on data accuracy between the real-time data delivered and the data recorded and stored in the containers. 

CSafe Global, the innovation leader in temperature-controlled container solutions for the transport of life-enhancing pharmaceuticals, continues rigorous testing of the company’s forthcoming end-to-end shipment visibility capability and has today, published the results of a second key pilot shipment focused on data accuracy.    

CSafe is the first cold chain packaging provider to successfully implement end-to-end shipment visibility capability and is nearly through their development timeline. The goal for this most recent pilot shipment completed in August was to determine if container readings, payload readings and pre-established alerts transmitted in real-time during the shipment and matched the validated data the container logged.  

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“It’s not enough to collect and transmit data,” explained Tom Weir, CSafe’s Chief Operating Officer. “We must be certain the information being supplied to our customers and partners reflects the actual real-time conditions of the container and the payload. Offering complete confidence in the real-time data, provides the assurance our customers need that their products are secure or that intervention is required to preserve a payload. This is what the pharmaceutical industry has been requesting and I am pleased to report that this and subsequent tests have been extremely successful. The hardware and software systems are performing as expected and we are moving into the next phase of testing.”

With more than 20 total pilot test shipments complete, CSafe containers, the integrated tracking devices and the shipment visibility platform have all performed flawlessly. The published results for this test, available in a white paper on the CSafe Global website, provide detailed information on the accuracy of the data collected with the tracking device in the new visibility platform against shipment information collected directly by the containers’ measurement systems. Historically, this information was only available post-shipment.

CSafe published another white paper in July that focused on validating the integration of the tracking device installed in the RKN and RAP containers and the measured parameters tracked.

“The entire project team along with our partners on this project could not be more pleased with these results,” said Weir. “Not only does it confirm that we have chosen the right hardware and software, but also that the planning, effort and investment we’ve made has been well worth it. We are now preparing for the next testing phase and expect similar results.”

About CSafe Global

CSafe Global logo rgbCSafe Global provides end-to-end thermal shipping solutions to the pharmaceutical and life science industries worldwide. Using its proprietary, fully-integrated Artificial Intelligence capability, CSafe ensures containers are available when and where customers need them. Combined with the company’s industry-leading retest and reuse program, all CSafe customers are assured ongoing superior product performance for every shipment that also meets customers' sustainability objectives. With a presence in 150 countries, CSafe is committed to providing its solutions on-demand 24/7 with a 100% guarantee, thus making CSafe the partner of choice for the most challenging customers in the cold chain.

CSafeGlobal.com