Chemistry
The near collapse of the global financial system in 2008 set off a worldwide recession that first impacted the building and construction industry, as well as an automotive sector already struggling with structural problems. Due to its dependence on those bulk buyers, the chemical industry, too, has seen a sharp drop in demand. Even suppliers as diversified as world-market leader BASF have had to lower their sales projections.
The economic downturn will accelerate the industry's consolidation. Chemical companies that seize the occasion to organize their orderly retreat from unprofitable or unsustainable lines of business are likely to emerge from the crisis stronger than before. In addition, chemicals suppliers need to continue their efforts to make corporate structures and processes more flexible, and tighten their value chains.
Another ongoing subject on the industry's agenda is legal and regulatory compliance. Although the European Union's REACH regulation became effective in mid 2007, many firms have yet to incorporate it into their IT systems. Opportunity also arises from Germany's recent accounting-law reform act (BilMoG) since it allows chemical corporations to carry product development costs as assets on their balance sheets.
Consileon has helped many companies with mergers, acquisitions and divestitures. Our services range from due-diligence involvement through unlocking synergies to systems integration. Focal points include portfolio management and realigning our clients' operations around innovative, sustainable business approaches.
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