As a major manufacturer of chemicals for everyday use, what is driving the growing demand for your products?
When looking at growing demands, emerging nations, especially Brazil and other regions in South America and Africa are significant areas of expansion for us. These regions are gradually showing interest in our sanitizing products in which sodium percarbonate is a key ingredient. We offer a sanitizer that not only disinfects and bleaches laundry effectively but unlike conventional liquid bleach, which relies on hypochlorite, we present a safer alternative that incorporates hydrogen peroxide, which decomposes into harmless water and oxygen. Additionally, it containssoda ash, a natural mineral derived from Trona in Wyoming. This commitment to using natural ingredients aligns with the growing environmental movement and push towards more eco-friendly products.
Why is culture such an influential factor in growing the demand for any product?
Twenty years ago, Europe was pushing to remove sodium perborate manufacturing because products were based on boron, a toxic and environmentally hazardous material. That push forced the biggest users at the time to reformulate with sodium percarbonate.
Making green chemicals that are less hazardous, less wasteful, and easier to handle is an evolving process.
You are working in an industry tackling potentially hazardous materials - what are the conditions under which sodium percarbonate remains safe?
Hot and humid climates like in the Southern U.S. can lead to the decomposition of sodium percarbonate. An optimal product would be as potent if it was purchased today as it was when manufactured 12 months ago. Upon use, it should readily dissolve in water and release oxygen efficiently. Addressing these challenges involves the development of a coating that not only protects the sodium percarbonate from environmental elements but also dissolves quickly. This requires a blend of scientific innovation and artistic finesse.
Policies are black and white; because we hit the criteria for an oxidizer, government regulations have put us in that category of hazardous chemicals. That might be true, but if you handle and store it correctly, you're not going to run into these hazards.
What kind of technological solutions are you deploying to widen your product offering?
Making things consistent and getting rid of inefficiencies and variances means using computer systems that run everything automatically. Our sensors monitor the process all the time, which helps us keep the quality tight and on target. Also, once we have a good starting product, we use a small lab where we can pilot different coatings or test chemicals so if something goes wrong, it’s only with small batches of material, not huge shipments. We look at patents and coatings on other products for ideas that might lead us to try something new.
China holds a significant market share in the peroxygen market - how do you manage to remain competitive?
China’s evident advantage lies in cheaper labor, as well as the fact their shipping lanes tend to come out of China. There are fees tacked onto the shipment of hazardous materials. With the huge volumes being exported out of China, they have a better freight rate ocean-wise than us. On sheer numbers, I have a lot fewer people and I am relying on a computer to run things so I can stay competitive.
The reverse is that China gets a lot of bad press for waste, environmental issues and other things that one does not do in the U.S., Europe, or other parts of the world. But they will catch up; so we have to stay ahead of the game. As long as we can stay ahead, we will be in good shape.
The U.S. reported 322 chemical incidents last year, with serious consequences occurring about once every two and a half days. Could you tell us about OCI Peroxygens’ Safe Start program?
Safe Start is a behavior-based safety system that aims to address things that the rules and regulations do not. Behaviors become habits and those habits keep people safer. Otherwise, you are relying on enforcement and it is more about the club than the carrot. It is about looking in the rearview mirror, reporting statistics on things that have happened, and anticipating things that could happen. You can get away with prioritizing volume over safety for a while, but it catches up with you.
Given that partnerships are a big piece of your operations, are there any parts of the supply chain that need fixing?
We work with multiple suppliers to mitigate issues, try to anticipate shipping constraints, and avoid shipping through problematic routes. Challenges like the current limitations on ships passing through the Panama Canal due to drought, potential disruptions in the Suez Canal, and even the Red Sea with the current situation in Israel all necessitate having diverse sources.
North America is our main market where we utilize rail and truck transport. However, seasonal demands can disrupt our outbound logistics, with hazardous goods often being deprioritized on shipping lines. We advise customers to secure materials before Thanksgiving to ensure availability by Christmas.
