Case Studies

Best-In-Class-Manufacturing:

"CrossChem has a proven model to identify and select best-in-class manufacturing. They not only ensured that product remained in the pipeline, they provided us with an intermediate so improved that it enabled us to eliminate a crucial but time consuming step in our manufacturing process." Pfizer, Inc.

HiPure ECN™ (ethylene cyanohydrin)

In the late 1990's many mergers and acquisitions occurred in the specialty chemical industry. Mergers such aas Dow/Union Carbide, Rohm and Haas/Morton International and others consolidated several companies and businesses. These activities resulted in a rethinking of strategic focus in terms of product portfolio, product life cycles and asset management. Defining and implementing new strategies occasionally produced exit plans for some products from portfolios. In some cases, closing single and multipurpose manufacturing plants was included in the overall strategy.

While these business decisions are often justified to ensure the long term health and growth of a company, they often leave undesired consequences for existing customers. This is particularly true for those products that are well into their life cycle or show limited growth opportunities.

The Exit Strategy
For many years Morton International produced purified ethylene cyanohydrin, HOCH2CH2CN (ECN-P), in their Moss Point, Mississippi facility. Moss Point's value added manufacturing step was relatively simple. They processed a technical grade product to create a high purity intermediate used primarily within the pharmaceutical industry. While Morton's product met customer specifications for many years, the assets used in the process were relatively unsophisticated limiting any potential product quality improvements.

The Moss Point facility was one of several plants identified for closure following its acquisition by Rohm and Haas Company. ECN-P was one of several products reviewed that did not fit Rohm and Haas' strategic portfolio. Soon after review, Rohm and Haas developed an ECN-P exit strategy

The CrossChem Model: Best-In-Class Manufacturing
CrossChem recognized that the product met its portfolio and strategy criteria and began to locate a new facility for production. The process of identifying the appropriate manufacturing partner led to the selection of several candidates based on plant capabilities, process skill sets, logistics, ISO and cGMP compliance capability among other benchmarks. CENTAURI Technologies, a Pasadena Texas contract manufacturer proved to be the best fit for the needs of the customers and product. The plant quickly passed the required pharmaceutical industry audit and began producing our HiPure ECN™ that far exceeded three critical specifications: purity, ethylene glycol content and water content. In fact, CrossChem's HiPure ECN™ was so superior to any other purified ethylene cyanohydrin product Pfizer used that they were able to revalidate their active pharmaceutical intermediate (API) with a process that eliminated a critical, time consuming step.

Cause for concern occurs anytime a manufacturer sees one of its key raw materials being eliminated. It would be disingenuous to say that the Moss Point closing announcement did not concern Pfizer and other key customers for purified ethylene cyanohydrin. The demand for the high purity volume was limited creating few alternative sourcing options. CrossChem, however, saw the Rohm and Haas exit strategy as an opportunity to satisfy an unmet need in the marketplace.

CrossChem implemented its network of manufacturers and chose the best-in-class candidate to produce a product that exceeded expectations.

Consolidations Will Continue
Change in the specialty and fine chemical landscape continues today with firms actively seeking mergers and acquisitions. These activities require companies to routinely evaluate their portfolios to ensure they are providing all stakeholders with optimum value based on core competencies. CrossChem will continue to maintain its niche in the market by evaluating those voids where consolidations leave unmet needs.