CIEX Europe 2023: Navigating the Future of the European Chemical Industry

Unpacking CIEX Europe 2023’s Vision from Chemicals R&D to innovation

Prof. John Metselaar has turned his 30-year global VP-level leadership responsibilities at Procter & Gamble into expertise in leadership, innovation, strategy, and organizational culture. He now serves as Professor at Solvay Brussels School for Economics and Management and is Director of The Conference Board’s (NYC) Innovation & Digital Transformation Institute, as well as its Innovation Councils across Europe, Asia, and the Gulf region. John teaches, speaks, inspires, and advises broader audiences living his purpose of passion for innovation, fascination with leadership, and the power of connecting. He is founding partner of “EI4I – Ecosystem Intelligence for Innovation” and “Includers – unleashing innovation through inclusive leadership

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

Prof. John Metselaar: I’m moderating, not presenting, but during my contribution I’ll try to highlight and emphasize that what Europe needs is more innovation not more R&D. Europe is very strong in R&D but continues to find it hard to extract value from all this great effort. “

Innovation converts creativity and knowledge into new value” – is the definition of innovation I use in my class. And this value that needs to be delivered has multiple dimensions: for consumer/customer, for company, for stakeholders, for planet.

So, how do you turn R&D into Innovation into new Value. What’s the role of Chemical Industry’s leaders in this? How do you envision the future, and communicate this effectively? How do you enable your organization toward excellent execution? And, often ignored and/or overlooked, how do you engage your people and empower your teams to deliver on your goals and strategies?

CIEX: What motivates you to join the Chemical Innovation Conference – CIEX Europe this year?

Prof. John Metselaar: Ah, I go back with CIEX for some seven years now. I love the combo of “insights and network” which this forum does uniquely well, I have found. As a chemical engineer but having moved on over the years, CIEX keeps me in touch with where I started. And I’m keen to contribute to a better industry hence better economy, hence better society, in particular for Europe who needs it badly these days…. Last, I want to help my friends at Merlien 😊.

CIEX: How do you envision the future of the chemical industry? What are the key challenges to overcome and the opportunities to harness?

Prof. John Metselaar: Well, this is the elephant in the room today. The Conference Board Measure of CEO Confidence™ for Europe polls the Members of the European Round Table for Industry (ERT) – the CEOs and Chairs of some of the best-known European industrial and technology companies with operations worldwide. Our (disclosure, I contributed to this work) spring 2023 reading reflected, dramatically, that over 80 percent of CEOs believe Europe’s competitiveness as a base for industry is weakening. And this perception also helps explain why nearly 60 percent of them plan to shift investments and/or operations from Europe to North America within the next two years. Now this is something to lose sleep over when one’s future is linked to Europe’s success.

Martin Brudermüller, Chair of ERT’s Committee on Competitiveness & Innovation, and Chairman of the Board of Executive Directors of BASF stated “The results of this latest survey put Europe’s competitiveness front & centre in the spotlight. The findings are clear and urgent evidence that Europe’s future as a leading base for industry remains at risk. Geopolitical tensions are having huge repercussions – and we in Europe are in the middle of this. So all of us – companies and policymakers alike – have to fight even harder to maintain our competitive edge and our leadership in innovation. Our people, our ideas and our Single Market are our natural assets – but they need better conditions to compete globally.”

Crisis is a combination of danger and opportunity. How can we take today’s crossroads into an opportunity. What role can the chemical industry play, as individual companies but also when they come together as community and influence the EU Commission’s direction in a way that allows them to thrive. CIEX could play a meaningful role in helping to achieve the necessary turnaround…..

CIEX: When looking to other regional markets, what lessons can the European chemical industry learn, adapt or perhaps even use to differentiate itself?

Prof. John Metselaar: As I said earlier, Europe, including the Chemical Industry, needs to gets much better to turn its R&D into Innovation, and into new value. It needs more investment, more agility, more elan, and it needs help by the European Commission and its national governments to achieve this with, for instance, supportive, enabling, not stifling, regulation.

Let me quote Martin Brudermüller, upon the spring 2023 ERT results, once again: “We can still turn this around – if our institutions and governments take up this challenge. The next survey will take place in the autumn – when the European Commission’s proposals to simplify and reduce reporting requirements by 25% are due to be announced – a step which will hopefully bring more optimism and make it easier for Europe to attract investment and jobs in all-important emerging sectors.”

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you, and why?

Prof. John Metselaar: At The Conference Board Europe we did a piece of research early this year to see how companies and their functional leaders in the US and in Europe were looking to integrate the digital opportunities with the needs for sustainability.

Our “Digital for Green” report shared a helpful framework and powerful illustrations and cases for leaders to pull from and explore for their own companies.

How can the Chemical Industry become a cutting-edge force to reinvent Europe’s industrial base through effective embrace and adoption of the “Twin Transition” of digital transformation and responsible, balanced Sustainable?

CIEX: Thank you John, we look forward to hearing more at CIEX 2023!

Join 20+ senior chemical executives including CxOs from Braskem, Levaco, Dude Chem, SCI, Solvay, Domo Chemicals, BASF. Limited Seats Available! CIEX is taking place on 25 & 26 Oct – secure your ticket now!

Redefining the Chemical Landscape: From Tradition to Sustainable Transformation

Transitioning to Sustainability: Insights from Walmir Soller at CIEX Europe 2023

Walmir Soller is CEO of Braskem Netherlands BV, International Holding and Trading for Braskem SA, and VP Olefins/Polyolefins Europe and Asia, having under his responsibility the international trading of Feedstock, Chemicals and Polymers, Global Chartering, production sites in Germany (Polypropylene) and Netherlands (Recycling) and the Green Polyethylene Global business. Walmir Soller is a Chemical Engineer by the Federal University of Rio de Janeiro with MBA by the University of Michigan and has been working in the petrochemical industry for 32 years, being the last 22 years with Braskem in several leadership positions and businesses.

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

Walmir Soller: The chemical industry is going through an unprecedented transition to become more sustainable and that will demand innovation not only in technology but also in business models to combine competences and assets to accelerate the process and minimize costs and investments.

CIEX: What motivates you to join the Chemical Innovation Conference – CIEX Europe this year?

Walmir Soller: This is my third time participating in CIEX, and I believe it’s an excellent opportunity to exchange views with relevant stakeholders in the chemical industry and get an overview of the latest trends in innovation.

CIEX: How do you envision the future of the chemical industry? What are the key challenges to overcome and the opportunities to harness?

Walmir Soller: The chemical industry will remain pivotal in providing materials and solutions to meet society’s current and future demands. However, the prevailing model, which relies on fossil feedstock, faces challenges. Industry players must seek ways to enhance the circularity and sustainability of products and feedstocks. The task ahead involves reconfiguring the current setup and re-engineering the entire industry. Such a complex transition necessitates robust public policies to back the essential investments.

CIEX: When looking to other regional markets, what lessons can the European chemical industry learn, adapt or perhaps even use to differentiate itself?

Walmir Soller: I believe the European Chemical Industry can seize the opportunity to become more flexible and nimble, accelerating its transition to a carbon-neutral circular economy. This shift will require either new competencies or a combination of existing ones, along with reconfigured assets. Traditional setups and business models will need reevaluation. With its vast and diverse asset base, a comprehensive technology portfolio, and a leading role in the global sustainability agenda in recent years, Europe is well-positioned. Thus, the region’s successful model should leverage these strengths, bolstered by a clear regulatory framework to mitigate risks during the transition.

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you, and why?

Walmir Soller: Natura & Co, the Brazilian cosmetic giant (Avon, Natura, The Body Shop e Aesop), has a program to develop alternatives that are economically viable in the Amazon region based on social and environmental principles. The program focus on preventing deforestation and promoting the well-being of the local communities.

Limited Seats Available! CIEX is taking place on 25 & 26 Oct – secure your ticket now!

From Challenge to Change: How SMEs are Shaping the Future of Chemical Innovation

The Role and Challenges of SMEs in Chemical Innovation

Marius Mühlenberg has been CEO of the LEVACO Chemicals Group, based at Chempark in Leverkusen, Germany, for about 2 years. LEVACO is a manufacturer of specialty process chemicals for agrochemicals, fiber production, cable industry and food production as well as for paper manufacturing and coatings. Today, Marius is primarily responsible for sales, production, R&D and supply chain. After studying economics and chemistry at the University of Passau, San Diego and the Technical University of Munich, Marius took his first steps at Clariant. However, he was soon drawn to medium-sized companies and, after various stations, finally to LEVACO Chemicals. LEVACO was founded in 2014 after several intermediate stops as a former part of the Bayer Group and is now part of the Diersch & Schröder group of companies.

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

M. Mühlenberg: One of the core messages is that the industry understands the potentially different challenges SMEs face in this “revolution” compared to larger companies and groups. SMEs continue to play an important role in the overall value creation of the whole chemical industry. Especially in today’s environment, the change in perspective is crucial: we can only be successful as an industry with more collaboration within the branch. Participants will take away that SMEs are also able to react quickly to these changing conditions in the industry and that they can contribute innovative ideas and elements to the transformation process.

CIEX: What motivates you to join the Chemical Innovation Conference – CIEX Europe this year?

M. Mühlenberg: First of all, it is always nice to have the chance to speak in such a highly decorated forum and audience. Once again, a big thank you for that.
In my opinion, the need for the voice of SMEs to be heard gets more and more important, especially in discussions about the changes taking place in the chemical industry nowadays. If we risk that our SMEs are not functioning well, it would strongly influence the entire industry and therefore needs to be reconciled. We must be aware that in Germany in particular, the majority of the chemical industry is made up of SMEs.

CIEX: How do you envision the future of the chemical industry? What are the key challenges to overcome and the opportunities to harness?

M. Mühlenberg: It is very important that we find out which new paths will actually bring us to the goal of a sustainable chemical industry. The big challenge will be to define feasible, realistic and goal oriented targets together with authorities. In my view, this orientation is still lacking at many levels.In addition, it is important that effective political and economic conditions are created so that the green transformation can also be implemented. The level of bureaucratic obstacles is immense. Above all, the slow political decision-making processes is not supporting this path.
Most likely the associated costs for a majority of companies will be very high. Accordingly, the bottom line is that the transformation will only be successful from a position of economic strength. Therefore we have to reconcile ecological and economic goals. Otherwise, I see a significant dissonance that is impairing to the process.

CIEX: When looking to other regional markets, what lessons can the European chemical industry learn, adapt or perhaps even use to differentiate itself?

M. Mühlenberg: Basically, I can see regions where the goals of the industry and the political level are far more closely aligned than it is currently the case in Europe. We see that faster reaction times are possible and that the agility needed in such challenging times is available. We have many great companies in Europe that could bring great innovations to the market in a shorter time. This needs to be supported if we want to continue to play an important role in the long term.

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you, and why?

M. Mühlenberg: The TFS initiative is a fairly broad attempt to define a standardization of goals and work on them accordingly. This is the right signal and a very good initiative from my point of view. I also see many great approaches in the chemical industry in replacing questionable raw materials with green alternatives, for example, in our surfactant chemistry market. Although not all approaches can be implemented commercially yet, it shows what great approaches can be developed in such a short time. I am very sure that if we promote innovations even more intensively, many products can be placed on the market from European companies that will amaze us. I would like to see more of this confidence in our industry, especially from official sources.

Clean Energy – Evonik’s transition from fossil fuel

Evonik: Transitioning from fossil fuel to clean energy – presentation Highlight from CIEX 2022

[yotuwp type=”videos” id=”g8wKVEITOUg” ]

Transitioning from fossil fuel to clean energy as a consequence of the current crisis

Becoming more energy independent and less vulnerable to commodity price shocks driven by supply and demand with renewable energy
Reducing the use of fossil fuels and boosting innovation towards alternative sources of energy: The step by step pathway
Rebuilding a more innovative industry based on renewable and circular feedstocks: Developing new supplies and accelerating green chemistry

Dr. Steffen Hasenzahl, Senior Vice President, Head of Creavis, EVONIK

Watch all CIEX 2023 presentations for free in our Video Archive.

Full abstract below. (Note: This is an AI generated summary, it may contain inaccuracies)

The presentation discusses the need to transition from fossil fuels to clean energy and highlights the environmental challenges we face. The speaker emphasizes the importance of reducing our environmental footprint and taking action to address global warming and other challenges. They provide examples of how Evonik, a leading manufacturer of special chemicals, is making progress in reducing emissions and transitioning to clean energy. They also discuss the cost involved in transitioning to clean energy and highlight the potential of photovoltaic energy. Overall, the video promotes the importance of sustainability and the need for companies to focus on their carbon footprint and strive for a positive impact.

00:00:00 In this section, the speaker discusses the need to transition from fossil fuels to clean energy and highlights the environmental challenges we face. They mention the increasing frequency of floods and the impact of expensive electricity in Europe due to the energy crisis. They also discuss the historical development of the chemical industry and the significant changes it has undergone. Overall, the speaker emphasizes the importance of reducing our environmental footprint and taking action to address global warming and other challenges.
00:05:00 In this section, the speaker discusses the global energy and emissions problem caused by the extensive use of fossil fuels. They highlight that approximately 13 billion tons of fossil fuels are used annually, with the majority being used for energy production and only a small fraction for chemical production. The emissions from the chemical industry alone account for 0.16 billion tons, and when considering all greenhouse gases, the total emissions amount to 58 billion tons. The lack of significant progress in reducing emissions in the past 17 years is also highlighted. The speaker emphasizes the need for six technical avenues, including the use of renewables, bio mass, and energy efficiency, in order to effectively reduce emissions.
00:10:00 In this section, the speaker discusses the transition from fossil fuels to clean energy, using Evonik as an example. Evonik is a leading manufacturer of special chemicals and has organized its business into four divisions—Smart Materials, Specialty Additives, Nutrition & Care, and Performance Materials. They have a strong focus on sustainability and aim to make a real contribution to making the world a better place. The speaker mentions that it is important for companies to focus on their carbon footprint and also strive to have a positive handprint, meaning making a positive impact in their operations. The speaker highlights that Evonik has made progress in reducing its emissions, but there is still work to be done, particularly in the upstream supply chain.
00:15:00 In this section, the speaker discusses Evonik’s transition from fossil fuels to clean energy. They focus on one specific site, Rheinfelden, which produces various products for industries such as batteries, coatings, paper, and solar cells. The site’s energy balance reveals that 80% of its primary energy consumption comes from natural gas, while 20% is derived from hydro power. The speaker emphasizes the need for green electricity to meet their energy demands and highlights the significant carbon footprint associated with the production of certain materials, such as silicon metal. Scope 3 upstream emissions, including the production of materials like sand, also contribute to Evonik’s overall carbon footprint.
00:20:00 In this section, the speaker discusses the cost of transitioning from fossil fuels to clean energy. They explain that there is a significant amount of money involved in reducing CO2 emissions and implementing clean energy solutions. They mention various expenses, such as heat pumps, green electricity usage, and the capture and utilization of bio-gas. The chemical industry is also reluctant to make the move to clean energy. Additionally, the speaker highlights the forecasted energy costs and the potential for generating electricity through photovoltaics. They note that with ample sunshine in southern Germany, photovoltaic energy could meet a significant portion of the energy needs.
00:25:00 In this section, Evonik discusses their transition from fossil fuels to clean energy. They mention their efforts to reduce emissions and their focus on green technologies. One example they provide is the production of green hydrogen using electrolyzers and water. They highlight the benefits of this process, such as not requiring precious metals and expensive materials. Another example they mention is the use of carefully selected bacteria in fermentation to produce special chemicals. They are currently running these processes in pilot plants and aim to scale up production in the future.

Join us at CIEX 2023 for cutting edge stratgies on innovation, sustainablity and product development. Limited seats available at https://ciex-eu.org/.