Hurricane Harvey Update0

As Hurricane Harvey barreled into the Gulf Coast, Nova employees diligently focused on continuity of operation plans that were created for those very moments. At first glance, the 40-50 inch rainfall projections issued by the National Weather Service were impossible to believe. There was also uncertainty as to the final path the storm would take and if our Pasadena, Texas, location would face the eye of the storm. Our leadership team made the decision to evacuate all non-essential personnel from the plant, with the remaining skeleton crew focused on ensuring the pumps that were removing water from the plant, did not lose power.
Our organization will forever be grateful to the brave souls that rode the storm out onsite and responded with professionalism during the most trying of times. This type of character and compassion from our employees, while easily visible during extreme situations such as Hurricane Harvey, is truly part of our everyday culture. No one could have predicted the exact outcome of this storm, the only certainty that has been proven from this event, is that our greatest assets will always be our employees.

The talent imperative in the global chemical industry0

Published by www2.deloitte.com

Executive Summary
The global chemical industry is currently experiencing intense changes. A slew of new and on-going challenges—from constrained margins and increasing cyclicality, to activist investors and a dramatic decline in new product introductions—are forcing companies to make dramatic shifts in strategy to continue to generate the return on capital that investors have come to expect. What is more, global chemical companies will need to manage these changes in a difficult talent environment marked by a looming wave of retirements and incoming talent that seems to have little interest or awareness of importance of the industry to the economy and society at large.
As these changes continue to unfold and impact the industry, global chemical companies will need to attack markets in new and innovative ways. This will likely require companies to introduce new business models and build the corresponding talent capabilities to support them. Companies will also need to understand their talent needs, both in terms of headcount and skills. A talent acquisition strategy could attract the resources companies demand, as well as offer the employees a value proposition that helps with development and retention.

The talent imperative in the global chemical industry provides several tangible steps that chemical companies can consider to proactively tackle the most pressing issues now rather than reacting to them later, when it may be too late:
• Building collaboration with human resources: To arrive at a new state of talent management, business-side executives will need to collaborate with and receive proactive support from human resources.
• Identifying talent early: Waiting for future talent focused on science, technology, engineering, and math (STEM) to be in college before beginning recruiting, may be leaving it too late. Programs initiated in high school to build awareness and interest in the chemical industry could be advantageous for the sector.
• Understanding the Millennials: Working to understand the value proposition that makes other industries more attractive to Millennials could be a key differentiator. Also, reinforcing the growing importance of the commercial and marketing functions, as Millennials place a high value on those skills.
• Thinking more broadly on STEM: Thinking beyond borders to engage potential employees and identifying innovative solutions to attract and retain them, could serve as a powerful recruiting model for hiring STEM resources.
• Balancing flexibility with productivity: Finding the right solution to strike the perfect balance of flexibility and productivity, can attribute to attracting and retaining the top talent the chemical organization needs.
A true, thorough, and effective rethink of a talent strategy is certainly a difficult task for any company, but it becomes especially daunting in the global chemical industry. It means a dramatic shift in thinking. It means moving away from a traditional model that carries with it the inertia of a century-old record of success. The global chemical industry is beginning a new and exciting era. The people working in it will be the catalyst to once again make the industry a leader among sectors and an attractive, exciting place to build a career – but only if executives act now to build those few but critical organizational and talent capabilities required to attract, develop, deploy, and retain the people the industry will need.

The Next Wave of Innovation in the Chemicals Industry0

Discoveries in materials science could lead to a new era of growth. Who is best positioned to benefit — incumbent companies or upstarts?
by Vijay Sarathy, Jayant Gotpagar, and Marcus Morawietz
Published by www.strategy-business.com

The world is potentially on the brink of an age of new powerful materials, ushered in by innovation in the chemicals industry. But to be central players in this story, today’s incumbent chemicals companies will need some vital prerequisites: restructuring of their product portfolios, successful exploitation of digital technologies, and rewriting business models to generate higher returns on their investment in innovation.
To understand the dilemma facing the chemicals industry today, you have to understand its past. Its history since World War II can be divided into two broad eras. The first period (from the 1950s through the 1970s) was a time of constant innovation. Dozens of new chemicals and compounds were discovered and commercialized. Most of these were plastics and polymers, many derived from hydrocarbons, particularly petroleum. The high value of these innovations allowed the chemicals sector to play a pivotal role in global economic activity.
The world is potentially on the brink of an age of new powerful materials, ushered in by innovation in the chemicals industry. But to be central players in this story, today’s incumbent chemicals companies will need some vital prerequisites: restructuring of their product portfolios, successful exploitation of digital technologies, and rewriting business models to generate higher returns on their investment in innovation.
To understand the dilemma facing the chemicals industry today, you have to understand its past. Its history since World War II can be divided into two broad eras. The first period (from the 1950s through the 1970s) was a time of constant innovation. Dozens of new chemicals and compounds were discovered and commercialized. Most of these were plastics and polymers, many derived from hydrocarbons, particularly petroleum. The high value of these innovations allowed the chemicals sector to play a pivotal role in global economic activity.

After 1980, though, the pipeline of new products largely dried up. During the next 30 years, until 2010, chemicals companies focused on growth through global expansion. It started with demand-led growth in Korea and Taiwan and then China, followed by new markets in the petroleum-rich (and thus feedstock-advantaged) Middle East. As these regions undertook ambitious new projects, many Western chemicals companies moved production into these regions. They discovered that the returns on investment in emerging markets were higher than the returns on R&D spending. Moreover, in these global high-growth regions, new materials were not a priority for customers. Instead, to succeed in this landscape, chemicals companies needed a competitive cost structure and a plan for growing market share against local players selling “good enough” products (products with 80 percent of the functionality at 50 percent of the price). Innovation was not a primary concern.
But then, on the heels of the financial crisis of 2008, globalization stalled. As their products turned into commodities, chemicals companies expanded through acquisition. As a result, many legacy chemicals businesses are large and cumbersome. Their R&D funds are spread too thin for them to compete against more entrepreneurial outfits on long-term research projects with uncertain outcomes. They rely on revenues from best-selling chemicals that are decades old. Polyvinyl chloride (PVC) was invented in 1913, polyethylene in 1936, and polypropylene in 1954. Even specialty chemicals that are highly profitable when first introduced — including many additives, pigments, and polycarbonates — can easily become commodities, with producers competing largely on price.
Meanwhile, innovation in the materials world has taken on a new life — largely outside the established chemicals industry. For example, the nanoscale revolution — the remarkable discoveries of two-dimensional, single-atom materials such as graphene from carbon or silicene from silicon — has resulted in new materials that are lighter, stronger, more malleable, and more temperature-resistant than any chemical products in history. But despite their potential applications in technology, healthcare, consumer goods, manufacturing, and the environment, their immediate profit potential is still unknown. A few startups and academic research centers are conducting most of the R&D on these new materials — and gaining most of the initial revenues from them. They are, in effect, drawing the contours of a new chemicals industry. The incumbent large chemicals companies, with their R&D centers in a state of neglect, are barely involved.
If the incumbents remain on the sidelines, the industry could cede the “high ground” to the upstarts. There is still time for the stalwarts to make up for their lethargy and profit from nanomaterials and other notable breakthroughs. In fact, if you look closely, some of the recent strategic steps taken by chemicals companies hint that the sector may be moving in this direction — and perhaps poised to recover the mojo it once had with plastics.
Three new developments could help the chemicals industry lead a new age of materials innovation.
The quest for portfolio coherence. Activist investors have been particularly vocal in the chemicals industry during the past decade, a trend that’s likely to continue. They see value that is trapped in incoherent and overly ambitious portfolios and believe that breaking these companies up will allow the new entities that emerge to offer more focused value propositions. This idea is already having an impact. Recently, we have witnessed “big bang” restructuring deals in various chemicals sectors, including crop protection, industrial gases, and coatings. When this quest for portfolio coherence is complete, the chemicals industry will be populated by more targeted companies, each of which can more fully dedicate its resources to enhancing its individual market narrative. As innovation resumes, these newly structured chemicals companies can better harvest organic growth opportunities, rather than continuing to rely on M&A.
The emergence of digital technologies. Some chemicals companies are adopting digital technologies that will allow them to become true materials and solutions providers to their customers. For example, they are installing sensors at customer sites to track how their products perform in their customers’ (and sometimes even the customers’ customers’) operations. The sensors will allow the chemicals providers to continually improve their products and will give them a direct relationship with their customers’ end businesses. Their products will now be embedded in the innovation and operations functions at automobile, aerospace, technology, hardware, consumer goods, and healthcare equipment companies, to name a few, where they will gather data that leads to insights, culminating in stickier relationships and more sales to each customer.
Business model innovation. Endorsing portfolio coherence and digitization doesn’t by itself make a company more innovative. It must simultaneously align these activities with an innovative business model that generates healthy, self-sustaining returns from R&D investments. In some cases, wholly new approaches will have to be adopted, such as outcomes-based pricing and sharing the risk with customers in implementing new materials and products. Steps like these can forestall product commoditization while ensuring high margins.
The plastics revolution was so world-changing that it sustained the chemicals companies for decades. With the advent of new materials and their extraordinary possibilities, chemicals companies face another transformative moment. They must choose what to be in the new materials age: witnesses or leaders.

Author Profiles:
• Vijay Sarathy is a thought leader with Strategy&, PwC’s strategy consulting group. He helps chemical industry executives interpret changes in their external environment to develop pragmatic strategies for profitable growth. He is a principal with PwC US, based in Boston.
• Jayant Gotpagar is an advisor to executives for Strategy&. Based in Houston, he is a principal with PwC US. He focuses on strategy-driven transformation programs for chemicals industry clients.
• Marcus Morawietz is an advisor to executives in the chemicals industry for Strategy. He is a managing director with PwC Strategy& Germany, based in Frankfurt.

Sumter Production Acquisition

FOR IMMEDIATE RELEASE

July 10, 2014

Contact:

Jim Williams

Vice President, Sales and Marketing

Nova Molecular Technologies, Inc.

608-°©‐754-°©‐6682

Nova Molecular Technologies, Inc. Sumter production acquisition

On July 1, 2014, Nova Molecular Technologies, Inc. acquired the assets of EMES, LLC. This purchase consists of a production facility and rail yard terminal located in Sumter, South Carolina.

This purchase will allow Nova Molecular Technologies to further develop its high purity solvent offerings to the pharmaceutical and agricultural markets. It also fits well into Nova Molecular Technologies’ strategy to increase its presence in the high purity solvent custom distillation segment. EMES previously offered multiple high purity solvents to the marketplace. One of these solvents, high purity acetonitrile, will remain a major focus going forward and fits the current Nova Molecular solvent portfolio.

The addition of the Sumter site allows Nova Molecular Technologies additional distillation capabilities and the ability to provide better economics to its East Coast customers. Nova Molecular Technologies services will increase as it continues to invest and expand both the Sumter and Pasadena, Texas site in the future.

For further information please contact your Nova Molecular representative.

Nova Molecular Plant Expansion Update

FOR IMMEDIATE RELEASE
September 11, 2013

Contact:
Jim Williams
Vice President, Sales and Marketing
Nova Molecular Technologies, Inc.
608-754-6682
Nova Molecular Plant Expansion Update

Janesville, Wisconsin – As an update to our November 2012 communication regarding our capacity expansion, in late July, 2013 Nova Molecular purchased the adjacent property to our Bayport facility. In addition to allowing for further future capacity/equipment expansions this site includes additional onsite tank storage.

With the added production capacity the new acquisition will bring, Nova will be poised to support our targeted effort to increase our sales of Nova’s industrial solvents, gas scrubbing products and the custom manufacturing business.

Nova Molecular Technologies, Inc. is a privately owned company located in Pasadena, Texas, with close proximity to the Port of Houston. Nova began operation in 1991 and offers custom manufacturing services to the chemical industry that includes catalytic hydrogenation (batch and semi batch), high pressure reactions, fractional distillation (batch and continuous) and high value solvent recovery. Nova also markets tetrahydrofuran and natural gas scrubbing products as well as a furfural derivative product line of solvents that include 2-methyltetrahydrofuran and tetrahydrofurfuryl alcohol.

For additional information regarding the expansion, product offerings and custom manufacturing services please call 1-800-445-6682 or visit www.novamolecular.com.

2013 Nova Molecular Plant Expansion Update

We reported in November of 2012 that the new 60-stage continuous distillation column had been commissioned and put into service and that we were well underway on the installation of our second pressure reactor.  We are now excited to announce that our plant expansion project is complete and fully operational.

The new 3,000 gallon, 650 psig, agitated reactor was commissioned in late December and is now well into its maiden campaign.  Combined with our 2,500 gallon, 1,000 psig, agitated reactor and three 7,500 gallon, 50 psig, agitated reactors we now have over 28,000 gallons of reactor capacity. Our new 60-stage continuous distillation column in addition to upgrades to our existing 60-stage continuous column and our 25-stage batch distillation system, have already improved our manufacturing flexibility and performance.

With the added production capacity we are now in a position to support our targeted effort to increase our sales of Nova’s industrial solvents, gas scrubbing products and the custom manufacturing business

Download a printable version of our press release.

Nova Molecular Plant Expansion Update

FOR IMMEDIATE RELEASE

June 25, 2012

Contact: Jim Williams
Vice President, Sales and Marketing
Nova Molecular Technologies, Inc.
608-754-6682

Nova Molecular Plant Expansion Update

Janesville, Wisconsin – As an update to our June 2012 communication regarding our capacity expansion, the new 60-stage continuous distillation column has been commissioned and is fully operational. The new column, along with our other 60-stage continuous column and our 25-stage batch distillation system, not only adds significant capacity but also allows for a variety of distillation scenarios.

The 3,000 gallon, 650 psi, agitated reactor is undergoing the final vessel modifications and the structural steel modifications needed to hold the vessel will be complete by the end of November.

In July, we also transitioned to the new Rockwell Plant PAX computer system used for plant control which will gives us a stable operating platform for years to come.

With the added production capacity the new units will bring, Nova will be poised to support our targeted effort to increase our sales of Nova’s industrial solvents, gas scrubbing products and the custom manufacturing business

Nova Molecular Technologies, Inc. is a privately owned company located in Pasadena, Texas, with close proximity to the Port of Houston. Nova began operation in 1991 and offers custom manufacturing services to the chemical industry that includes catalytic hydrogenation (batch and semi batch), high pressure reactions, fractional distillation (batch and continuous) and high value solvent recovery. Nova also markets tetrahydrofuran and natural gas scrubbing products as well as a furfural derivative product line of solvents that include 2-methyltetrahydrofuran and tetrahydrofurfuryl alcohol.

For additional information regarding the expansion, product offerings and custom manufacturing services please call 1-800-445-6682.