Benvic has recently been acquired by ICIG and has acquired companies itself, including Chemres. What is the current direction and strategy behind Benvic's acquisitions and divestments?
Our strategy is twofold. Globally, our aim is to become a leader in all polymers, emphasizing developing a strong, sustainable, and innovative offer where innovation plays a crucial role. In the U.S., the focus is more on integrating teams into the U.S. strategy, consolidating our operations, and preparing for growth. This involves acquiring companies with high margins, particularly those active in niche markets with substantial know-how, which is especially relevant in the U.S. due to its emphasis on innovation and quality, driven largely by medical applications.
How does Benvic integrate compounding and recycling within its business model?
The integration of compounding and recycling is multifaceted, involving both the recycling of our own waste and working with customers on recycling initiatives. For instance, we acquired a small recycling company in France, which now recycles 95% of our French waste. This effort is primarily local due to the challenges of scaling recycling, including sourcing materials.
Our focus extends beyond just recycling our waste to integrating recycled materials into our manufacturing processes, leveraging our compounding knowledge to provide customers with compounds that can be based partially or entirely on recycled materials.
What drives the demand for sustainable materials in your industry, especially considering regulatory aspects?
We are at the beginning of the supply chain and do not manufacture finished goods, so direct regulatory expectations or consumer demands on us are minimal. Despite this, there is a significant expectation for us to innovate towards more sustainable solutions, even though we are primarily B2B and our direct contribution to final products may not be as visible. Our approach involves anticipating future regulations and customer expectations, particularly concerning the use of recycled materials. For instance, we are already working on solutions like incorporating recycled materials or natural fibers into our products, which not only addresses sustainability but also matches the high standards and specifications our customers expect from us.
Considering the challenges of introducing more sustainable and eco-friendly solutions, how is Benvic navigating the shift towards sustainability?
Introducing more sustainable solutions is complex, as it involves balancing environmental benefits with the technical specifications and performance requirements of our products. Our strategy encompasses not only recycling and the use of alternative materials but also improving our manufacturing processes and supply chain management to minimize environmental impact. This holistic approach to sustainability extends beyond just material composition to include significant efforts in reducing our carbon footprint, improving energy efficiency, and engaging in social and governance practices that reflect our commitment to ethical and sustainable business practices.
How do you anticipate the PVC market evolving, especially considering its current growth trend?
The future of the PVC market is uncertain, especially with discussions at the European Union level regarding the use of PVC in medical applications. The potential elimination of PVC in this sector poses significant challenges, as we currently have no viable alternatives for its use in critical medical supplies such as syringes, blood bags, and IV tubing. The perception of PVC by regulators and the public often overlooks its essential applications in healthcare, where it is favored for its cost-effectiveness and safety. This scenario underscores a broader issue where regulations may be crafted without a deep understanding of the material's critical applications and the lack of suitable replacements.
Regarding increased reporting in the EU, how does Benvic navigate the current landscape?
Sustainability and corporate social responsibility are paramount, yet challenging, with the upcoming CSRD (Corporate Sustainability Reporting Directive) promising to end greenwashing by enforcing more stringent reporting requirements. Our approach is transparent, focusing on genuinely active policies rather than adopting measures solely for compliance or optics. This commitment extends to our work on sustainability, aiming to make substantial, verifiable progress rather than merely achieving certifications or meeting superficial standards.
In the context of global regulations and standards, how does Benvic align its practices across different regions?
The U.S. and Europe present contrasting regulatory environments, with the former focusing more on safety and the latter on stringent regulations. Despite these differences, Benvic, as a European company, applies European standards globally, including to our U.S. operations. This ensures a consistent approach to safety, data protection, and environmental standards across all our locations. The emphasis on comprehensive reporting and data sharing through initiatives like CSRD and ESG is crucial for raising awareness and fostering a culture of safety and sustainability within the company, underscoring the importance of collective effort and leadership in these areas.
Looking forward, what excites you most about Benvic's future and what achievements would you highlight?
In the coming years, I am most excited about fostering a workplace where employees are genuinely proud to be part of Benvic. Achieving this means creating a meaningful work environment, especially challenging in an industry often criticized for its environmental impact. Our goal is to demonstrate the significance of our work and its contributions to daily life and global progress, from healthcare to transportation and beyond. Building a company that not only leads in its industry but also provides a fulfilling and impactful place to work would be my greatest achievement. This focus on employee satisfaction and purpose is essential for driving innovation and making a lasting impact.
