How does Baerlocher “add character to plastics”, and what is your overriding purpose in the chemicals industry?
Baerlocher plays a unique role in the chemical industry by enhancing the quality and performance of plastics. Our approach involves the incorporation of specialized additives that improve the functionality and sustainability of plastic products. As a company with a 200-year legacy, our purpose revolves around innovation and sustainability in the plastics sector.
Being a family-owned enterprise significantly shapes our strategic outlook and decision-making processes. Unlike publicly listed companies, where decisions often prioritize shareholder returns, our family ownership allows us to focus on long-term goals and sustainable practices without the pressure of short-term financial returns. This structure supports our commitment to having a positive impact on society through responsible business practices. It also provides us with the flexibility to pursue a sustainable business model, a crucial aspect as we lead our company and the industry towards more sustainable futures.
How is Baerlocher addressing the transformation of the plastics industry towards sustainability?
The transformation towards sustainability is a primary focus for Baerlocher. We are actively investing in and developing our portfolio to include more sustainable additives, particularly in the PVC (Polyvinyl Chloride) additive sector where we are considered leaders. We also develop special additive solutions for broader use of plastic recyclates. The industry's shift towards sustainable practices is not just about adapting existing products but also about innovating new solutions that comply with stricter environmental regulations and consumer expectations. This commitment is evident in our efforts to lead the transition within the industry to adopt more environmentally friendly and sustainable practices.
How does Baerlocher develop a sustainable product portfolio while also considering its financial objectives?
Developing a sustainable product portfolio involves a strategic balance between environmental responsibility and economic viability.
Our approach includes enhancing the sustainability of our existing products and introducing innovative solutions that meet both regulatory standards and market demands. This strategy is complemented by our commitment to achieving carbon neutrality by 2045 across all scopes, including our supply chain.
We invest in technologies and practices that reduce our carbon footprint, such as solar farms and biomass boilers, while also focusing on creating products that enable the use of more recycled materials, supporting a more circular economy.
How does Baerlocher engage with the evolving regulatory and market landscapes to advance its sustainability goals?
Navigating the complex regulatory environments across different regions, including the European Green Deal, influences our strategic decisions significantly. We align our sustainability initiatives with these regulatory frameworks, focusing on carbon neutrality and the strategic use of non-toxic chemicals. Our product development is geared towards creating additives that support the recycling and reuse of materials, aligning with the principles of the circular economy. By fostering collaborations across the value chain, from chemical producers to recyclers, we position ourselves at the forefront of industry transformation.
Given the distance from the end user in your industry, do you feel compelled to match the pace of your clients' innovations, especially in different geographies with varying appetites for biobased solutions?
Indeed, operating in the B2B segment of the plastics industry presents unique challenges, particularly because our influence on end consumers is indirect. Our pace of innovation is largely synchronized with that of our clients, who are directly regulated and influenced by shifting market demands. Regulatory forces drive the adoption of new solutions for bioplasticizers to replace phthalates, compelling us to stay ahead of these regulations.
How do you navigate the complexities of market demands, particularly when consumers are indirectly engaged with your products?
Our engagement with the market is multifaceted. Despite our primary B2B focus, we deeply analyze consumer behaviors and market trends, which influence our business strategies significantly. For example, our involvement in workshops with brand owners exposes us to the downstream effects of consumer indifference towards sustainable packaging. Consumers often do not realize the recycled content in products, which does not translate into a willingness to pay a premium for sustainability. This presents a challenge in developing a business model that not only adheres to environmental standards but also remains profitable.
In the context of sustainability challenges and global environmental concerns, what keeps you up at night?
The overarching challenge that occupies my thoughts is the transformation towards a petro-free, sustainable future for Baerlocher. This is a profound shift, distinct from typical financial or operational crises management—it is about redefining our business model for the next centuries. As we prepare for future generations, considering both our family business's legacy and the need for innovation in sustainability, the task is daunting. Our focus isn't just on surviving market shifts but fundamentally transforming to lead in a sustainable chemical sector, a commitment that extends beyond simple compliance to active industry leadership.
Looking ahead, what excites you most about Baerlocher’s role in the chemical industry over the next few years, especially with incoming regulations like the Green Deal?
Over the next few years, I am particularly excited about the opportunities arising from new regulations that will push the market towards more sustainable practices. Our traditional portfolio is adapting to include more sustainable PVC additives, especially in markets like India, which is a significant shift. We are also advancing in bioplasticizer technologies and exploring scalable, food-contact approved alternatives for PFAS. These innovations are crucial as they demonstrate our ability to adapt and lead in creating sustainable solutions that are directly responsive to both regulatory changes and market demands.
