Chemicals

Shaping the Transition: Transformation of the Chemical Industry

As complex as the chemical industry itself are its challenges – including geopolitical shifts, competitiveness, reliability of raw material and energy supply, and stricter regulatory frameworks. In addition to these challenges, the sector is experiencing a demand-side shocks caused by inflation and increased uncertainty in chemical end markets. Chemical companies are responding by structurally changing the value chains of particularly energy-intensive activities, initiating efforts to restore competitiveness, and intelligently driving ESG transformations towards climate neutrality and circular economy.

Adapting to these challenges requires a deep understanding of the industry and functional expertise tailored to the specifics of the chemical sector.

Current situation in the industry

01

Ensuring Competitiveness through Operational Excellence

The room for action is subject to regular change, but few industries have recently undergone such profound transformations as the chemical industry. Especially in Germany, high energy prices coupled with increased sustainability requirements pose significant transformation needs. The production of basic chemicals is often no longer internationally competitive. Therefore, it is crucial to regularly review and optimize internal processes. Operational excellence across the entire value chain is a prerequisite for sustainable competitiveness. This includes critically examining the production footprint and aligning and simplifying the operating model in terms of agility, transparency, and simplicity.

Through consistent alignment of the operating model and process optimization, we assist chemical companies in unlocking untapped potentials in their value-generating processes and achieving operational excellence across the entire value chain.

Karsten Schulze

Karsten Schulze

Senior Partner & Member of the Board
02

Sustainable business model transformation towards Climate Neutrality and Circularity

The EU Commission introduced the "Green Deal" in December 2019, envisioning a climate-neutral continent by 2050. The "Fit for 55" goals set even shorter deadlines until 2030. This puts significant pressure on the sector to invest more in energy and resource-efficient processes. Additionally, focus shifts to areas such as material recycling and the development of innovative technologies to enable the use of low-carbon energy and circular raw materials. ESG requirements resulting from initiatives like the introduction of supply chain laws further intensify this pressure. However, they also present opportunities to further develop business models towards climate neutrality and circularity, unlocking new value pools in end markets with innovative and sustainable products and solutions.

We assist companies in prioritizing areas for action. Together with management, we define a holistic ESG program and help implement specific measures.

William Kaffka

William Kaffka

Manager Markets & Strategy

Success stories

  • Mechanical/plant engineering

    Repositioning a market leader

    FTI-Andersch supported the management under the leadership of Ralf Haspel with precise analysis and global strategy to sustainable turnaround and increased company value.

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  • In addition to the high level of commitment and professionalism, I particularly appreciated the focus and the efficiency of the collaboration with FTI-Andersch. Within a short period of time, the team clearly worked out the core statements and thus decisively contributed to the stability of the financing process.

    Xu Tao

    Xu Tao

    Group CFO, Pacoma, Manufacturer of hydraulic cylinders
  • Industrial equipment supplier

    FTI-Andersch supported MAX Automation in the refinancing of the existing syndicated financing in the amount of € 190 million and contributed to the success of the negotiations through targeted analyses and presentations as well as content-related input. During the mandate, the cooperation was always characterised by mutual trust, openness and professionalism.

    Dr. Christian Diekmann

    Dr. Christian Diekmann

    CEO/CFO, MAX Automation, Industrial equipment supplier
  • Industrial Automation and Trade

    The FTI-Andersch team has always supported us in a solution-oriented, pragmatic and efficient manner. Together we managed to realise the necessary refinancing. This has brought our company forward sustainably.

    Richard Mayer

    Richard Mayer

    Geschäftsführer/CFO, Blumenbecker, Industrial automation and trade
  • Consistent performance increase

    The team at FTI-Andersch worked in partnership to support us in reviewing our ways of working in the plants, our site network and the existing Operational Excellence program. The findings from the project were jointly reflected upon and integrated into the existing performance improvement program. To guarantee transparent and quantifiable implementation, FTI-Andersch actively supported us in implementing a program management organization.

    Michael Lindner

    Michael Lindner

    Board of Directors (Production), Linde + Wiemann, Automotive Supplier

What challenges does the chemical industry face, Karsten Schulze?

How do financial resources influence industry dynamics?

Efficient capital allocation plays a crucial role, especially in times of rising interest rates and persistent inflation, particularly considering the imminent investment needs driven by the direct impact on numerous chemical processes on the path to sustainability and climate neutrality. Our approach involves aligning available financial resources with strategic priorities such as process optimization, supply chain resilience, and innovation to derive robust investment decisions.

How does demographic change affect the chemical industry?

The chemical industry in Germany still benefits from a high level of qualifications among its employees, embedded in a holistic chemical ecosystem with its chemical parks, service providers, universities, and sophisticated customer applications. However, demographic change, in the form of an impending shortage of skilled workers, poses a risk. To maintain their competitive position, companies increasingly need to optimize and digitize their processes and procedures, ensuring the retention of critical knowledge and innovation capabilities.

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