The chemical solution Perstorp

THE CHEMICAL SOLUTION

Well-established Swedish company Perstorp is one the world’s leading suppliers of chemical products. With plans for strategic expansion in high-growth areas, Perstorp’s second century looks likely to be just as successful as the first. Following an interview with head of business group and deputy CEO, Mats Persson, Emma-Jane Batey reports for Industry Europe.

Established in 1881 in the southern Swedish village from which it takes its name, specialist chemical supplier Perstorp has grown to become a USD2.5bn company with more than 2200 employees. Privately held until 2001, Perstorp is currently owned by one of Europe’s largest private equity companies, PAI Partners. Perstorp has manufacturing units in 11 countries worldwide, particularly present in Asia, Europe and North America, with its very active plans for continued expansion focusing on the increasingly important Chinese market.

As one of the world’s leading suppliers of chemical products for a wide range of industries and applications, Perstorp is especially active in the field of coatings. With its ‘130 years of winning formulas’ a well-known marketing slogan in the global chemicals market, Perstorp is justifiably proud of the competitive advantage its lengthy history offers. Head of business group Speciality Intermediates and deputy CEO, Mats Persson, explained, “We are in a leading position wherever in the world we are active, which we have achieved by focusing on the local market in each territory and responding to the precise needs of each market. So although we are not the biggest chemical company globally, we lead wherever we are, in the first, second or third market position in every region we’re in. As we steadily and strategically increase our global presence, we are more and more aware of the advantage of our 130-year history, not just in terms of marketing but because it means that we have come across so many situations throughout our history that we are always able to find a suitable solution.”

Plenty of advantages

This focus on delivering solutions to the chemical production industry also helps set Perstorp apart from the competition. The company works to produce special building blocks for the chemical industry by working closely with its customers as a solutions provider and development partner. With around 80 per cent of its research and development linked to chemical solutions that are environmentally friendly and sustainable, Mr Persson’s assertion that much of its activity is driven by a passion for sustainability, both within Perstorp and by its customers, is certainly backed up.

Perstorp’s product portfolio is broad but can be divided into four core platforms, with each working with the other as needed to deliver complete solutions. The first platform is Perstorp’s polyalcohol activities, in which it is the global leader. This important area includes the company’s core industry sector of coatings, with its main customers using its chemicals for various technical solutions.

The second Perstorp platform is its caprolactones activities, with the company holding the leading position in each territory in which it is active. Perstorp is in the final stage of building a new unit alongside its existing unit which will double its caprolactones production. Mr Persson added, “We see a great future in caprolactones and we are investing a great deal in this new facility. It’s a great chemical that has a vast range of applications, from

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The third platform in which Perstorp is active is its ‘oxo business’ where it also enjoys a strong presence. The ‘oxo business’ is connected to key raw material suppliers within Sweden’s petrochemical industry, and the company is predicting this to be an important growth market in the coming years. The fourth and final platform is Perstorp’s isocyanate range of plastic polymers, which includes its Tolonate and Scuranate brands. The company operates this provision mainly from its location in France, where it is also the global leader in this field.

Meeting the global demand

The increasingly global reach of Perstorp is perfectly in tune with the general megatrend of customers wanting global suppliers. Mr Persson said, “Each of our four platforms listens closely to the changing needs of our customers, and we all communicate closely to ensure that we benefit from feedback and expertise. We are finding that as many of our customers are increasingly active worldwide, so too do they want to deal with global suppliers, suppliers that understand how their business is both the same and yet different in different countries. We excel

in this field, and are a committed solutions provider to customers worldwide.”

With 50 per cent of Perstorp’s current business activity focused on the coatings industry and extensive investment in R&D, the company’s future is clearly well-positioned to respond to the most modern of megatrends. It has recently launched a nearly 100 per cent green pentaerythritol product, VoxtarTM , which has a carbon footprint that is 70 per cent less than comparable products.

The company also aims to expand its activities in China with the long-term aim to give strong attention to the exciting opportunities across Asia. The high-growth region has an increasing demand for chemical products, and Perstorp is working to deliver sustainable solutions. It is also open to considering suitable acquisitions to continue its expansion in the region.

Perstorp will continue to be driven by the increasingly strict regulations for reducing environmental impact for coating systems in particular, and is looking forward to meeting the challenges of this fast-growing, dynamic sector. n