Custom Synthesis of Chemical Intermediates in Non-Life Science Applications

Core Messages

• The main advantages of outsourcing are lower spending on investments and access to know-how not available in-house.
• The main disadvantages of outsourcing were identified as potential know-how transfer and increased complexity.
• Technological expertise is the main success factor for custom synthesis.
• The more technologies a provider has to offer, the greater are its chances of being selected for custom manufacture.
• Rapid and cost-effective process implementation in existing plants is important.
• Differentiation by technology alone is not enough (as in the lifesciences) because it is too expensive for a company to provide all technologies, and customers often do not understand this (focus on products and applications).
• Accumulation of extensive knowledge of specific applications is not the key to success.
• Custom Synthesis for industrial applications has good medium to long term market prospects.
• The closer the specialty chemicals company is to the end customer and the more it looks upon itself as a problem-solver, the more willing it is likely to be to outsource chemical production. However, this applies only if chemistry is not a core competence or if the company has a very broad technology platform
• Outsourcing chemical production and custom synthesis is seen as a lucrative growth market likely to generate growth through new business.