Auriga

Companies // Chemicals

• Background

  This company is a constituent of the chemicals sector. Chemical products are designed to make our lives easier by increasing the quality of other products and making our food more nutritious. There are very few industries which don’t make use of chemicals in one form or another: chemicals are used across all industry sectors, be it as fertilisers or fungicides in agriculture, as medication or sterilisers in healthcare, as a component for the manufacturing industry or an ingredient in household products. The chemical sector comprises groups of businesses, either specialising in certain areas or, in the case of the large multinationals, covering a spectrum of chemical products. Businesses focusing on commodity chemicals, or bulk chemicals, manufacture their products from a variety of natural raw materials including oil, gas, coal, air, water and minerals. They include organic and inorganic chemicals as well as agricultural chemicals and industrial gases such as propane or helium. Commodity chemicals are used for the manufacture of plastics, glass and fertilisers. They are particularly sensitive to price moves in the commodity sector. Speciality chemical producers serve a specific group of clients, such as companies in the electronics industry, or a special purpose like adhesives. Its green credentials represent a particular challenge for the chemicals industry. Its products increasingly need to be recyclable or disposable in a way that only causes minimal damage to the environment. Ironically, chemicals manufacturers are becoming more engaged in education efforts to avoid the overuse and unnecessary use of its products. This industry is highly energy-intensive, and consequently energy prices can affect production and transportation costs. Research teams and their advisors continue to work towards making processes more efficient, saving energy and reducing waste. Watch this space: The chemical industry has subscribed to a social sustainability code called Responsible Care. It means that the industry vows to be committed to health, safe practices and the environment. Chemical companies have also promised to be more open with their stakeholders and engage in dialogue with the public. The aim is to improve the reputation of the industry, which has been criticised for being too secretive.

• Influencing Factors

  Patent regulations and the demand for more generic drugs. Other factors include fluctuating commodity prices, the state of the manufacturing sector and transportation costs.