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Outsourcing Will Help Small Chemical

November 14, 2005

Outsourcing has emerged as a major trend in the chemical and pharmaceutical sectors to offer value to custom processors, but several barriers have kept outsourcing from succeeding. At Informex 2003 in New Orleans in February, Andrew Liveris, president of Dow Chemical Co.’s performance chemicals group, said chemical manufacturers need to maintain spending discipline, continue to reshape portfolios and consolidate and learn from customers how to meet their needs and rebuild their confidence in these difficult economic times.
“The current confluence of negative factors facing the chemical manufacturing industry could be called ‘the perfect storm,’” said Mr. Liveris. “But opportunities lie ahead, and what will distinguish successful, value-creating companies in the future include more efficient use of capacity and focused resources on innovation rather than maintenance.”
Attendance at Informex, sponsored by the Synthetic Organic Chemical Manufacturers Association, totaled 4,100 with 744 booths. This year, international exhibits grew 31%.

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