Industries

Chemical Manufacturing

The global chemical industry is going through difficult times. Geopolitical tensions, inflation, sustainability pressures, supply-chain interruptions, and demographic challenges have greatly complicated its operations. On top of these issues, the prices of natural gas—the primary feedstock for the industry—have risen 420 percent compared with average prices in Europe in 2010 to 2020. However, Europe is the second-largest chemical market in the world and a leader and a highly innovative sector. For Europe to remain competitive on the world stage, it must embrace and unlock innovations in manufacturing technology.

Chemical sector in numbers

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Chemical companies in Europe

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of EU manufacturing

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Value of European chemical sales in 2021

Massive sector changes

The sector is currently undergoing rapid structural change as it faces major challenges that include:

Managing raw materials

The chemical industry, specifically chemical manufacturing, relies heavily on raw materials. Raw material prices, such as those for crude oil, are volatile and can fluctuate at any given time. This can make it difficult to forecast costs and budget and, keep prices competitive

Purchasing expenditures are equivalent to 20 to 60 percent of sales revenue for specialty-chemical players

Supply chain disruption

Chemical industry supply chains can be long and complex. They have many moving parts, making the transportation of chemical products a challenge. If you add in transportation disruptions, it makes it even more problematic

97% of companies reported having to change their operations due to supply chain issues in recent years

New regulations

Chemical products are often specialised and need specific storage and handling. In addition, they face strict regulations on the transport of their products, especially hazardous materials. These regulations are necessary to have in place to protect the environment and people

Chemical companies will have to spend more than $300 billion over the next few years to meet regulations

The need for innovation

The sector needs to become climate neutral, circular, innovate towards safe and sustainable chemicals and increasingly digital, all of which while remaining competitive in the global market to keep a thriving chemical industry in Europe.

The chemical industry will invest over US$7 billion in digital technologies by the start of the next decade

Sustainability

Chemical companies are under pressure to develop their environmental, social, and governance (ESG) standards to drive their decarbonisation strategies

The EU Chemicals Strategy for Sustainability adopted by the European Commission in October 2020 proposes more than 80 legislative and non-legislative measures

It means having access to accurate data and a complete audit trail has never been more important.

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Providing solid foundations to build the future of chemical manufacturing

Gather and analyse data from multiple sources

IoT technology is empowering chemical companies to gather and analyse data from multiple sources, including sensors and devices, to make data-driven decisions and optimise their processes and monitor the performance and conditions of the equipment used during the manufacturing process. VX Observe currently monitors more than 21,000 sites and 160 million assets alarms per year and can help chemical companies:

Predict and prevent asset failures days before they happen
Improve first-time fix rates
Maximise operational efficiency
Reduce equipment downtime and impacts

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Identify potential equipment issues before they become critical

Predictive maintenance is vital in a sector where equipment failure can result in costly downtime, safety hazards, and environmental damage. By using data analytics and machine learning techniques, predictive maintenance can identify potential equipment issues before they become critical. Maintenance Connection - an easy-to-use platform with a simple quick implementation - helps maintenance teams:

Transition from reactive to preventive asset maintenance
Extend asset life
Maximise the ROI

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A single source of truth in complex environments

The chemical sector is governed by diverse regulations necessitating meticulous documentation while quick information retrieval and secure record-keeping are crucial for transparency, efficiency, and regulatory adherence. Meridian provides a single source of truth in complex engineering, project, and operational environments. It serves 50% of the top 10 chemical companies helping them to:

Streamline document management
Ensure safety and compliance
Maximise company-wide collaboration
Achieve a single source of asset information

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Focus on Energy management to improve efficiency

The European chemical sector is energy-intensive with costs contributing significantly to a chemical plant’s production costs. With macroeconomic activity in a constant state of flux, chemical manufacturing companies must focus on energy management systems to improve energy efficiency. Observe for Energy Management can help achieve this by providing monitoring and targeting capabilities helping to: