News bulletin – chemical distribution

NEWS BULLETIN

CHEMICAL DISTRIBUTION

UK OPTIMISM EVAPORATES

The UK Chemical Business Association’s (CBA) latest Supply Chain Trends Survey reveals that order books, current sales and sales margins have all shown “a downward trend” over the last three months. “The positive trend in order books and sales reported in July 2017 appears to have evaporated,” CBA says. “Though still remaining positive, their momentum has slowed and, in relation to order books, weakened significantly. The outlook for future sales also remains uncertain whilst the industry expects to create more jobs over the next three months.”

Conducted during the three weeks between 23 October and 10 November, the survey’s findings are based on responses from 56 member companies, with CBA asking firms to appraise key commercial criteria on a ‘better–worse–same’ basis compared to the previous three months. To measure short-term trends, the analysis ignores responses answering ‘same’ and focuses instead on the positive or negative balance provided by the difference between the ‘better-worse’ responses.

In terms of current order books, the survey found a positive balance of +14 per cent, “a significant decline” from the +54 per cent recorded in the last survey in July. Mirroring the trend with order books, current sales volumes, CBA says, “continue to show a positive balance of +11 per cent, though this represents a marked slowdown to the positive balance of +51 per cent” revealed in the previous poll. Future sales, though, “remain in positive territory at +14 per cent, roughly the same as [the +16 per cent] reported in July”.

Meanwhile, current sales margins “have declined with a negative balance of -12 per cent and member companies expect this trend

CHEMICAL DISTRIBUTORS IN THE UK ARE EXPECTING

A DOWNTURN IN OPERATING CONDITIONS IN THE to continue at least for the next three months as they also expect a further 12 per cent decline in future sales margins”. Nevertheless, “member companies remain positive about employment levels”, with the current survey showing

“CALDIC TO BUY ELASTOMERICS Caldic UK has signed an agreement to acquire Macclesfield-based Elastomerics, which specialises in the distribution of polymers and additives to the surface coatings, plastics, rubber, adhesives and sealants sectors. “The Elastomerics product portfolio perfectly complements our existing business by expanding our speciality product offering and gives us a much stronger presence in our focus markets,” says Caldic UK managing director Philip Robinson. “Whilst we already have business in these markets, this acquisition enables us to offer a comprehensive portfolio to our customers, backed up by the excellent service and technical expertise of the Elastomerics team.”

Meanwhile, Rudi Appels, formerly solvents division manager at Caldic Belgium, has been promoted to the post of managing director of Caldic Chemie. “Rudi officially started on 1 October 2017 and comes with many years of experience in the chemical industry,” the company says. “Together with the Belgian solvents team, he created substantial growth for the division based on strong relationships with customers and suppliers. With the appointment of Rudi Appels, we are looking forward to continue and further expand the Caldic Chemie business.” www.caldic.com

BIESTERFELD REORGANISES FOR GROWTH

Biesterfeld Spezialchemie is creating a new business unit for healthcare distribution as part of an ongoing drive to develop its market segment focus. “The healthcare market is influenced by mega trends that will have a crucial impact on society, which makes it an attractive growth market for us,” says managing director Peter Wilkes. “We understand the exceptionally stringent requirements in this segment and we have aligned our distribution business accordingly. Setting up this business unit is an important step in our strategy of delivering competent, intensive and highly focused service to very demanding market segments.” www.biesterfeld-spezialchemie.com