Coming Home

Complexity is nothing new in the field of fine chemicals, which include everything from advanced to pharmaceutical intermediates. Many within the field also say they have noticed the Asian trend is reversing, with many companies once again turning to trusted Europe-based companies with strong track records of reliability and supply chain security. Brandi Schuster spoke to Dr. Andreas Meier of Solvay Flour prior to the CPhI.

What are today's main trends in fine chemicals in terms of chemistries, synthetic routes and reprocessing?

A. Meier: The trend towards increasingly larger and more complex synthetic components is becoming stronger. Manufacturers are making use of synthetic building blocks with more functional groups to be able to produce increasingly complex active ingredient molecules as easily as possible. Fluorine-containing building blocks are becoming more and more important because fluorine in the molecule increases efficacy. It makes active ingredients more stable and increases membrane permeability. However, fluorine chemistry requires very special know-how and equipment. Active ingredient manufacturers like to buy that expertise together with the entire molecule. We are noticing that customers who used to buy simple molecules, such as TFAC (trifluoroacetyl chloride), are now changing to more complex molecules like ETFBO (4-ethoxy-1,1,1-trifluoro-3-butene-2-one).

How did the fine chemicals business fare over the course of the economic downturn?

A. Meier: The highroad through an economic crisis is reducing spending to an absolute minimum. In the fine chemicals industry, as well as in other areas of the business, we have observed that customers are postponing investments and projects and reducing stock. We are glad to observe an excellent order situation since the spring of 2010. Now it looks as if everyone is trying to make up for the time lost during the economic crisis.

How do you compete with price pressure from competition from the East?

A. Meier: Asia has not really been a strong competitor for know-how sensitive products that also have to meet the high quality requirements of the active ingredient manufacturers. The early trend to go to Asia is being reversed. The great pharmaceutical companies once again appreciate European manufacturers in order to protect their know-how and to be on the safe side regarding warranty claims, quality and supply chain security.