How has it been taking over a company that had such a longstanding CEO?
Taking over Teknor Apex after Jonathan Fain's 52-year tenure as CEO has been a unique and humbling experience. I've been with the company for six and a half months now, and it's been quite the journey, especially as the first non-family CEO in its centennial year. My previous interactions with the Fain family, as a supplier, customer, and competitor, have provided me with a diverse perspective on the company's operations and culture. Teknor Apex has continually reinvented itself over the past century, transitioning from a basic tire recapper to a leader in rubber and chemicals, and now we're poised to transform into the chemical company of the future.
As a plastics manufacturer, Teknor Apex operates in a segment that can be villainized and misunderstood. What are the current challenges and opportunities for Teknor Apex in the plastics industry?
Our aim is to shift the narrative by highlighting our commitment to sustainability and circularity. We've been focusing on ensuring that new plastics do not end up in landfills or oceans and are instead repurposed into high-end applications. Our efforts extend to reducing our carbon footprint and exploring innovative solutions such as enzymatic recycling and bioplastics. Despite the challenges, we see this as a long-term journey to maintain our leadership and commitment to sustainability.
In 2015, Teknor Apex received two awards for the Terraloy technology. Why are you relaunching the Terraloy technology now?
The decision to relaunch the Terraloy technology stems from increased market demand for sustainable solutions and our investments in enzymatic recycling and biopolymers. Despite initial challenges, including the cost implications of recycling, we believe the current focus on sustainability and our enhancements in both chemicals and plastics position us to make a significant impact. Our goal is to not just talk about these investments but to commercialize them effectively, navigating the competitive landscape with a focus on real-world applications and innovations.
What makes Teknor Apex proud of its technological advancements?
What sets us apart and makes us proud is our ability to offer a broad range of solutions to the market, particularly in sustainable applications. Our focus on real applications development allows us to tackle real-world problems alongside our customers, whether it involves low carbon footprint materials or innovative polymers. This approach underscores our commitment to not just have a brand but to be at the forefront of designing products that, as they scale, have a definite place in the market.
Privately held companies can often have a longer-term mindset than those listed. How does Teknor Apex's status as a privately held company impact its strategic decisions?
Being a privately held company with a strong balance sheet allows us to allocate resources towards long-term investments through our TekVentures group. This flexibility enables us to partner with inventors and develop minimum viable products without the pressure of meeting short-term financial targets. Our focus remains on making meaningful investments that align with our vision for the future, underpinned by a commitment to doing the right thing, which has been the cornerstone of our success and was emphasized during my transition into the CEO role by our investors.
Teknor Apex’s blog aims to humanize plastics by linking it to its real-world applications. What are you doing to address the negative perceptions of plastics?
We are actively working to change the narrative around plastics by highlighting their essential role in various applications and their sustainability potential. Our efforts include addressing misconceptions about the environmental impact of polymers and promoting the benefits of recycling and circularity. Despite the challenges posed by regulatory changes and the cost implications of developing environmentally friendly plastics, our focus remains on innovation and improving recyclability to tackle the issue of single-use plastics and enhance food preservation and transfer solutions.
What challenges does the EU's regulatory environment pose for Teknor Apex?
Navigating the EU's regulations, particularly with new REACH revisions and the push for extensive animal testing, presents an interesting landscape for Teknor Apex. While these regulations ensure safety and environmental protection, they can also influence innovation and increase the timeline of developing sustainable products. Our approach is to carefully evaluate these changes, maintaining our commitment to transparency and sustainability without compromising our principles. Despite the obstacles, our focus remains on advancing sustainable products and technologies that reduce our environmental footprint.
In terms of bioplastics and innovation, where do you see the industry headed, and when do you feel an inflection point will come when bioplastics will be commercially viable cross industry?
Our TekVentures Group was established precisely because predicting the future, especially in biopolymers and biology-based chemistries, is complex.
We are intrigued by enzymatic recycling and the potential it holds for transforming waste into prime-quality materials. However, turning these innovations into cash flow positive ventures could take three to five years, if not more. The leap from small-scale laboratory successes to commercial viability is a significant one. The journey from current capabilities to scaling up production is filled with uncertainties, but it's an essential path we're navigating to ensure Teknor Apex remains at the forefront of the industry.
The chemicals industry has often sided away from high-risk ventures. What value does having a ventures team bring for Teknor Apex?
Having a ventures team is quite unique for a company of our size and reflects our commitment to innovation and sustainability. While R&D spend in the chemical industry is traditionally modest, we believe it's crucial to make substantial bets on the future. This strategy involves partnering with scientists and startups to explore new avenues, such as green chemistry. Our focus on reinventing the company aligns with our long-term vision to not just survive but thrive by adapting our product lines and market approaches to the evolving global landscape.
Looking forward, what are Teknor Apex's key milestones and goals for the next few years?
Over the next few years, our priorities include making Teknor Apex a safer workplace, reducing our carbon footprint through energy conservation and renewable energy investments, and advancing circularity in our products. We aim to introduce more circular, engineered applications and achieve measurable environmental impacts. Our TekVentures group is expected to make significant strides in areas like biopolymers and enzymatic recycling. These efforts are not just about product innovation but also about mastering application development to ensure our solutions meet customer needs and drive industry progress.
Can you provide more insight into enzymatic recycling and its potential impact on the industry?
Enzymatic recycling represents a promising frontier in sustainability, offering a way to transform waste into valuable raw materials. This approach competes with significant investments from large brand companies, but we're committed to exploring its potential through small-scale experiments and collaborations. The versatility of products derivable from enzymatic processes, such as adipic acid for nylon or plasticizers, underscores the vast possibilities for non-oil-based chemicals. Our investment in verifying the viability of these alternatives reflects our belief in their potential to replace traditional plastics and contribute to a more sustainable future.
