Chemical manufacturing shifts into high gear, relocating its production base
In the ever-evolving landscape of global industry, European companies are making significant moves to adapt and thrive. One such example is Austrian machine builder Engel, which is relocating approximately 20% of its manufacturing to lower-cost Eastern European countries like the Czech Republic. The company is also exploring options in the Balkans and North Africa, driven by cost pressures and competition from Asia. Swiss industrial firms, particularly machine builders, are following suit, considering moving parts of their production to the EU to benefit from lower US tariffs and improve competitiveness in key markets.
These strategic shifts are not limited to the machine-building sector. Pollmann, another company, is consolidating and relocating production sites to strengthen market position and improve service quality in response to market fluctuations.
The chemical industry is also recognising Digitalization as a key management topic for future growth. Peter Hartl, an Associate Partner at Horváth, an international management consultancy with expertise in large-scale corporate transformation projects in the chemistry and energy sector, is at the forefront of this digital revolution. Hartl, who studied chemistry and biology at LMU and business biology at TU Munich, emphasises the strategic importance of Digitalization & AI, including AI technology, for the chemical industry.
AI technology is permeating internal processes and core functions such as production planning, sales, pricing, and decision-making for maintenance in the chemical industry. One of the most significant benefits of AI is its ability to optimise maintenance cycles. By improving forecasting and automating spare parts reordering, AI can help the chemical industry streamline its operations and reduce costs.
Horváth AG has a wealth of experience advising companies in the energy, chemical, oil, and raw materials industries on sustainability, decarbonization, and circularity. Hartl's work includes projects related to hydrogen, carbon management, energy management, geothermal energy, and the green transformation of existing production facilities.
In the current year, Digital Transformation ranks second as a top management priority for the chemical industry. The strategic importance of Digitalization & AI, including AI technology, has grown significantly for the industry, as companies strive to stay competitive in an increasingly digital world.
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