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How Evonik boosts supply performance by evaluating scenarios

March 14, 2023

How Evonik boosts supply performance by evaluating scenarios

Evolutions in the oil, gas, and specialty chemicals markets have made planning the supply of Evonik’s Performance Intermediates business line more complicated than ever. As raw material quality and downstream demand became less predictable, the company began to understand that a more structured tactical planning process, driven by reliable demand and supply data, was needed.

After implementing OMP’s Unison Planning™, Evonik can now create and evaluate multiple supply scenarios every month, leading to plans that are more reliable, deliver better service, and lower costs. “This flexible scenario planning was a tremendous game changer for us,” according to Evonik’s David Kochanek.

 

 

Performance Intermediates: a complicated side-stream

Kochanek has been working as a business process specialist at Evonik’s Performance Intermediates business for ten years. During that time, he has witnessed how business at the plants in Marl (Germany) and Antwerp (Belgium) has been growing both in size and complexity.

“Our Performance Intermediates business is a major producer of C4 chemicals,” he elaborates. “We have been producing C4 chemicals for more than 50 years. With this experience, we have developed a cross-site production network that is unique in the world. In Marl and Antwerp, we process around two million metric tons of raw material per year. This corresponds to five tank cars per hour.”

“And besides being huge, it’s also complex. The C4 stream is in fact a side-stream, processing the leftovers from ethylene and propylene production. But these raw materials vary a lot in concentration, depending on the cracker operation mode. This presents a major challenge to our planning process.”

Kochanek also notes that in the C4 stream, prices of raw material and products are subject to significant variations, which further complicate matters: “We negotiate pricing formulas with our suppliers and customers, where we agree on different factors such as which concentrations to consider.”

About Evonik

Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated salesof €15 billion and an operating profit (adjusted EBITDA) of €2.38 billion in 2021. Evonik goes far beyond chemistry to create innovative, profitable, and sustainable solutions for customers. About 33,000 employees work together for a common purpose: “We want to improve life today and tomorrow.”

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