Insights from industry

Fine Chemical Custom Manufacturing: Evaluating the Make-or-Buy Decision



“Fine Chemical Custom Manufacturing can range from providing spare capacity, all the way to the establishment of a full-service sourcing partnership. When a company wants to get their product to market as quickly as possible and at the best cost position, they should consider partnering with an experienced and fully-integrated fine chemical custom manufacturer."

In this interview, Jeff Black, President and Site Manager of Evonik Jayhawk Fine Chemicals Corporation, talks to AZoM about the benefits of partnering with an external provider to meet specific sourcing requirements.

What is fine chemical custom manufacturing and what services do they provide?

Fine chemical custom manufacturers provide a broad range of competencies in the manufacture of complex chemical intermediates. Available services include process development, procurement expertise, logistics management, regulatory support, accounting, analytical and IT services.

With knowledge in something as simple as a distillation to recover raw materials to a complex 10 to 15 step synthesis, in many cases, a fine chemical custom manufacturer is the most cost effective means to address the client's make-or-buy decision.

What is the make-or-buy decision?

The make decision, or insourcing, refers to the client’s deployment of internal assets and resources to best meet production and economic requirements.  

The buy decision, or outsourcing via an external provider, can often bring fresh expertise and demonstrated capabilities to a client’s specific technology or chemistry requirement that may not be available within their own operation.

The external partner will likely possess capacity and equipment options that can be adapted to a specific project or process requirement.

What benefits can a fine chemical custom manufacturer bring to the table for outsourcing?

An external manufacturer offers cost and process improvements, speed and flexibility, throughout the product lifecycle. Clients can minimize capital investment with a proof-of-concept project or launch their products stepwise utilizing a phased capital approach.

Rapid growth may require clients to seek out additional capacity to keep up with market demands. Lastly, clients may want to preserve mature products by outsourcing.

In all cases, fine chemical custom manufacturers offer attractive solutions for the best allocation of client resources.

What range of services does Jayhawk provide for fine chemical custom manufacturing?

Clients benefit from Jayhawk’s core competence in specialty chemistry, extensive process development capabilities, waste and cost minimization, management of co-product streams, and full accreditations.

Jayhawk can provide the creative and technical skill, the continuous quality, and the efficiency that customers might expect of their own operations.

How do you define a successful partnership with a fine chemical custom manufacturer?

Success requires trust, open communication, mutual information sharing and creative problem solving. The fine chemical custom manufacturer should serve as an extension of the client’s own manufacturing operation, getting their product to market as quickly as possible and at the best cost position.

This leads to a continued partnership, especially when it comes to supporting the client’s own pipeline of product development programs.

Where can our readers go to learn more?

The Jayhawk website has information on the different products and services we provide, as well as webinars and videos on the core chemistries and unit operations available to clients.

About Jeff Black

Jeff Black is the site manager of Evonik’s fine chemical custom-manufacturing hub for complex chemical intermediates and active ingredients.

Beginning as an analytical chemist in 1989, Jeff has worked through a number of assignments at Evonik Industries AG ranging from production to management.

Jeff serves as President and Site Manager of Evonik Jayhawk Fine Chemicals Corporation in Galena, KS.

Disclaimer: The views expressed here are those of the interviewee and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.

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