Reportlinker Adds The Top 10 Global Fine Chemicals Companies: Industry Overview, Key Trends, Growth Strategies, Financial Performance, and SWOT Analysis

Jun 21, 2010, 14:27 ET from Reportlinker

NEW YORK, June 21 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

The Top 10 Global Fine Chemicals Companies: Industry overview, key trends, growth strategies, financial performance, and SWOT analysis

The history of the fine chemicals industry dates back to the late 18th century, when the early chemical industry was evolved from natural dyes and explosives into modern pharmaceutical products. However, by the end of the 19th century, the commercial production of branded pharmaceuticals flourished in Europe (especially in Germany, as many of the active pharmaceutical ingredients were produced in this country).

Fine chemicals are generally produced on a large scale, which can be measured in thousands of tonnes per year for certain food additives and drug intermediates. Fine chemicals manufacturing is typically carried out in batch processes, with synthesis being followed by separation and purification steps.

Pharmaceuticals has always been the largest market for the fine chemicals industry. Moreover, it is likely that pharmaceutical intermediates will account for over two-thirds of the fine chemicals market by 2012. Although the number of fine chemicals companies involved in the manufacture of high potency APIs (HPAPIs) has historically been limited, the segment has attracted more companies recently.

Profitability levels have fallen for many fine chemical companies in recent years. However, the recent focus on biopharmaceutical products holds promise for this industry in the future. For instance, many of the larger fine chemicals players have invested in biotechnology, either through self-funded R&D programs or through alliances and partnerships.

Key features of this report

  • Overview of the global fine chemicals market
  • Market dynamics and profitability of the global fine chemicals market
  • Detailed profiles of the leading 10 players in the global fine chemicals market
  • Key partnerships and M&A activities in the fine chemicals sector
  • Key trends and opportunities in the global fine chemicals market

Scope of this report

  • Develop insights into the global fine chemicals market, including pharmaceutical intermediates, agrochemical intermediates, flavors and fragrances, dyes, and others
  • Build knowledge of key partnerships and M&A activities that are shaping the future of the global fine chemicals industry.
  • Understand the major issues affecting the global fine chemicals industry.
  • Assess the competitive landscape of the global fine chemical industry.

Key Market Issues

  • Increasing demand for HPAPIs: HPAPIs are very effective in treating diseases at low dosage; however, the production of such potent compounds requires significant investment. Thus, many companies are also differentiating their products from their competitors through specialized technologies and demonstrated expertise. The growth in demand for HPAPIs, primarily in cancer therapies, is expected to increase its sales in the near future. Additionally, the ability to increase life expectancy among cancer patients will also drive the demand for HPAPIs in coming years.
  • Relocation to emerging and fast growing markets: Managing and rationalizing existing assets in the EU and investing in new facilities in emerging and fast growing markets has been a key trend in the fine chemicals sector recently. Growth in Western Europe started to slow in recent years, making Asia (mainly China and India) and Latin American countries the new growth markets for the fine chemicals industry.
  • Advanced technologies: Recently, many of the leading pharmaceutical and fine chemicals manufacturers have started to focus on small-scale complex products, an area where advanced technologies are required. For example, in June 2009, Italian fine chemicals company Endura announced that it would commercialize a technology that encapsulates insecticide into very small crystals. The encapsulation delays the release of insecticides, thus enabling an enzyme inhibitor to disable the enzymes that insects use to block pesticides. Moreover, Endura will also promote the concept of microencapsulated piperonyl butoxide (PBO, a naturally occurring synergist) in agriculture throughout the world in collaboration with strategic partners.

Key findings from this report

  • The pharmaceutical industry has always been the largest market for the fine chemicals industry. Although the number of fine chemicals companies that are developing high-potency APIs has been limited, this segment has attracted many companies in recent years.
  • Fine chemicals players with significant exposure to the generics segment are likely to face pressure on their profitability levels in the near future. However, the recent shift in focus toward biopharmaceutical products will expand the margin of this industry in coming years.
  • Agrochemical intermediates represent the second largest category among fine chemicals (after APIs), the majority of which are used in the manufacture of pesticides, herbicides, insecticides, fungicides, and fumigates.
  • Outsourcing has become a key trend in this industry, fueled by the growing importance of biopharmaceutical and virtual pharma companies in low-cost destinations such as Asia. Outsourcing from biotech and pharmaceutical companies will strengthen the custom manufacturing industry in India and China.
  • BASF is one of the leading chemical producers in the world, with significant exposure in fine chemicals. With a presence in over 80 countries, BASF is one of the leading suppliers of chemical intermediates to the plastic, automobile, agriculture, and pharmaceutical industries.

Key questions answered

  • What are the key trends of global fine chemicals industry?
  • Which are the leading players in the global fine chemical market?
  • Which companies will drive the future of the global fine chemicals market?
  • What are the key strengths, weaknesses, threats, and opportunities for the leading fine chemicals players?
  • How has the financial performance of leading players in the global fine chemicals market faired through the recent economic downturn?
  • Which companies are best positioned to succeed in the global fine chemicals market during 2009–14?

Table of Contents

The Top 10 Global Fine Chemicals Companies

Executive summary 12

Industry overview 12


Lonza 13

DSM 14

Sumitomo Chemical 14

Merck KGaA 15

Lanxess (Saltigo) 16

Sigma-Aldrich 16

Jubilant Organosys 17

Johnson Matthey 17

Evonik Chemicals 18

Chapter 1 Introduction 20

What is this report about? 20

Methodology 20

Chapter 2 Industry overview 24

Summary 24

Fine chemicals – an overview 25

Different types of fine chemicals 26

Pharmaceutical intermediates 27

Agrochemical intermediates 28

Flavors and fragrances 28

Dyes and others 29

Market dynamics 29

Size and structure 29

Profitability 30

Competitive landscape 30

Manufacturing standards and their potential benefits 32

Potential benefits of the guideline 33

Key partnerships and M&A activity in the fine chemicals sector 34

Key trends 35

Advanced technologies 35

Increasing demand for HPAPIs 35

Relocation to emerging and fast growing markets 36

Increasing use of biotechnology and nanotechnology 36

Chapter 3 BASF 40

Summary 40

Company overview 41

Business segmentation 41

R&D focus 42

Financial performance 42

Growth strategies 44

Leading supplier of chemical intermediates 44

Verbund, an innovative approach 44

Diversified product portfolio 45

SWOT analysis 45

Chapter 4 Lonza 48

Summary 48

Company overview 49

Business segmentation 49

R&D focus 50

Financial performance 51

Growth strategies 52

Chemical manufacturing strengthens Lonza's technology platform 52

Partnership with biopharmaceutical and chemical companies 52

SWOT analysis 54

Chapter 5 DSM 56

Summary 56

Company overview 57

Business segmentation 57

R&D focus 58

Financial performance 60

Growth strategies 61

Increasing R&D activity in emerging markets 61

Microreactors: a new technology for pharmaceutical production 61

SWOT analysis 62

Chapter 6 Sumitomo Chemical 64

Summary 64

Company overview 65

Business segmentation 65

R&D focus 66

Financial performance 67

Growth strategies 69

Strong progress in major R&D projects 69

Pursuing a new strategy of creative hybrid chemistry 69

Strong response to the EU's REACH legislation for chemicals 69

Creation of next-generation chemical safety information management database 70

SWOT analysis 71

Chapter 7 Merck KGaA Chemicals 74

Summary 74

Company overview 75

Business segmentation 75

R&D focus 76

Financial performance 76

Growth strategies 77

Merck KGaA and Millipore partnership for specialty products 77

New pharmaceutical production plant to increase Merck KGaA's capacity in

Germany 78

Stronger presence in India through acquisition of Bangalore Genei 78

Merck Serono to build its R&D operations in China 78

SWOT analysis 79

Chapter 8 Lanxess (Saltigo) 82

Summary 82

Company overview 83

Business segmentation 83

R&D focus 84

Financial performance 84

Growth strategies 85

Expansion in BRIC countries 85

Advanced Intermediates segment 86

Custom manufacturing 86

SWOT analysis 87

Chapter 9 Sigma-Aldrich 90

Summary 90

Company overview 91

Business segmentation 91

R&D focus 92

Financial performance 92

Growth strategies 93

Strong focus on emerging markets 93

Partnerships and alliances 94

Targeting the high-growth biology segment 94

SWOT analysis 95

Chapter 10 Jubilant Organosys 98

Summary 98

Company overview 99

Business segmentation 100

R&D focus 101

Financial performance 101

Growth strategies 104

Integrated business model 104

Strong R&D and manufacturing services for intermediates and APIs 104

Positioning as an outsourcing partner of choice 105

SWOT analysis 106

Chapter 11 Johnson Matthey 108

Summary 108

Company overview 109

Business segmentation 109

R&D focus 110

Financial performance 111

Growth strategies 112

Johnson Matthey's Sustainability 2017 initiative 112

Strong market position in APIs and contract manufacturing services 112

SWOT analysis 113

Chapter 12 Evonik Chemicals 116

Summary 116

Company overview 117

Business segmentation 117

R&D focus 117

Financial performance 118

Growth strategies 119

Specialty chemicals remain a key focus area for Evonik 119

Strong commitment to custom manufacturing business 120

SWOT analysis 121

Chapter 13 Other major players 124

Boehringer Ingelheim 124

Company overview 124

Recent financial performance 124

Divis Laboratories 125

Company overview 125

Recent financial performance 126

Pfizer CentreSource 127

Company overview 127

Recent financial performance 127

Cambrex 128

Company overview 128

Recent financial performance 128

Fabbrica Italiana Sintetici 129

Company overview 129

Recent financial performance 130

Appendix 131

Glossary 131

Index 133

List of Figures

Figure 2.1: Fine chemicals and their usage 27

Figure 3.2: BASF SWOT analysis 45

Figure 4.3: Lonza business divisions 49

Figure 4.4: Lonza SWOT analysis 54

Figure 5.5: DSM business focus 58

Figure 5.6: DSM SWOT analysis 62

Figure 6.7: Sumitomo Chemical research laboratories 67

Figure 6.8: Sumitomo Chemical SWOT analysis 71

Figure 7.9: Merck KGaA Chemicals SWOT analysis 79

Figure 8.10: Saltigo SWOT analysis 87

Figure 9.11: Sigma-Aldrich SWOT analysis 95

Figure 10.12: Jubilant Organosys business segmentation 100

Figure 10.13: Jubilant Organosys SWOT analysis 106

Figure 11.14: Johnson Matthey business segmentation 109

Figure 11.15: Johnson Matthey SWOT analysis 113

Figure 12.16: Evonik Chemicals SWOT analysis 121

List of Tables

Table 2.1: Global fine chemicals market size, 2009–2015 30

Table 2.2: Leading 10 global fine chemicals companies, 2009 32

Table 3.3: BASF snapshot 40

Table 3.4: BASF financial performance by segment, 2009 43

Table 3.5: BASF chemical sales performance, 2009 44

Table 4.6: Lonza snapshot 48

Table 4.7: Lonza financial performance by operating segments, 2009 51

Table 5.8: DSM snapshot 56

Table 5.9: DSM key launches in 2009 59

Table 5.10: DSM R&D expenditure, 2009 59

Table 5.11: DSM financial performance by segment, 2009 60

Table 5.12: DSM fine chemicals performance by segment, 2009 61

Table 6.13: Sumitomo Chemical snapshot 64

Table 6.14: Sumitomo Chemical financial performance by operating segments, FY 2008 68

Table 6.15: Sumitomo Chemical financial performance during FY 2004–2008 68

Table 7.16: Merck KGaA Chemicals snapshot 74

Table 7.17: Merck KGaA sales performance, 2009 77

Table 7.18: Merck KGaA Chemicals segmentation sales performance, 2009 77

Table 8.19: Lanxess (Saltigo) snapshot 82

Table 8.20: Lanxess financial performance by operating segments, 2009 85

Table 9.21: Sigma-Aldrich snapshot 90

Table 9.22: Sigma-Aldrich financial performance by operating segments, 2009 93

Table 10.23: Jubilant Organosys snapshot 99

Table 10.24: Jubilant Organosys financial performance by operating segments, FY 2009 102

Table 10.25: Jubilant Organosys financial performance during FY 2005–2009 102

Table 10.26: PLSPS revenue distribution by segments, FY 2009 103

Table 10.27: CRAMS revenue distribution by segments, FY 2009 103

Table 11.28: Johnson Matthey snapshot 108

Table 11.29: Johnson Matthey financial performance by operating segments, FY 2008 111

Table 12.30: Evonik Industries snapshot 116

Table 12.31: Evonik Industries financial performance by operating segments, 2009 118

Table 12.32: Evonik Chemicals financial performance by segments, 2009 119

Table 13.33: Boehringer Ingelheim snapshot 124

Table 13.34: Boehringer Ingelheim financial performance by operating segments, 2009 125

Table 13.35: Divis Laboratories snapshot 125

Table 13.36: Divis Laboratories financial performance, FY 2008 126

Table 13.37: Pfizer CentreSource snapshot 127

Table 13.38: Cambrex snapshot 128

Table 13.39: Cambrex segmental revenue, 2009 129

Table 13.40: Fabbrica Italiana Sintetici snapshot 129

To order this report:

Chemical Industry: The Top 10 Global Fine Chemicals Companies: Industry overview, key trends, growth strategies, financial performance, and SWOT analysis

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    Nicolas Bombourg
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