1 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
LANXESS Liquid Purification Technologies
Experience with the GoAfrica! Project
5th German African Infrastructure Forum
Gerhard Simon - Director Sales Development EMEA
2 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Introduction
- LANXESS
- Business Unit Liquid Purification Technologies
3 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
� Spin-off from Bayer in 2004
� Specialty chemicals portfolio: plastics, rubber, intermediates and
specialty chemicals
� 75 sites worldwide
� Approximately 19,200 employees in 25 countries
� Global sales of EUR ~9.2 billion in 2016*
� Enhancing its leading position in mid-sized markets
LANXESS –A globally operating specialty chemicals company
Specialty chemicals company
Global success story
Strategy of profitability and resilience
*Combined sales of LANXESS and Chemtura in 2016
4 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
LANXESS with new strategic focus: Building a more balanced company
Advanced
Intermediates
Performance
Chemicals
Engineering
MaterialsARLANXEO*
joint venture with
Saudi Aramco
established 2016 for
synthetic rubber
LANXESS AG
*ARLANXEO to be fully consolidated by LANXESS for the first three years
Specialty
Additives
� Material Protection
Products
� Inorganic Pigments
� Leather
� Liquid Purification
Technologies
� High Performance
Materials
� Urethane Systems
� Advanced
Industrial
Intermediates
� Saltigo
� Additives
� Rhein Chemie
5 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Chemicals
Consumer Goods
OthersAutomotive
Construction
Agro
LANXESS well diversified (pre Chemtura acquisition)
ARLANXEO sales by industry 2016
Tires
Automotive
Others*
* Amongst other consumer, chemicals, construction
New LANXESS sales by industry 2016LANXESS group - sales by industry 2016
ChemicalsConsumer Goods
Tires Others
Automotive
Construc-
tion
Agro
Tires
6 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Visible integration of Corporate Responsibility in the overall LANXESS strategy
� Signatory to the
U.N. Global
Compact
Joint initiative of international chemical companies for sustainable supply chains
in the chemicals industry
� Improving the sustainability and transparency supply chain
� Monitoring compliance with the “Supplier Code of Conduct”
� Sustainability assessment and joint audits
� Member of the Dow
Jones Sustainability
Index (World)
� Signatory of the
Responsible Care®
Global Charter
� 9001 & 14001:
Global matrix
certificate
� Member of
FTSE4Good
� Climate A List
� Sector Leader
„Energy &
Materials“
Initiatives and ratings
7 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Facts
Products & Brands
Applications
� Part of: LANXESS Performance Chemicals Segment
� Customers: > 1,500
� Market position: One of the top ion exchange resin (IX) manufacturer, strong commitment to new reverse osmosis (RO) business
� Ion exchange resins, iron oxide adsorbers & functional polymers
� Reverse osmosis membrane elements
� Leading design software for IX and RO equipment dimensioning
BU Liquid Purification Technologies – a leading global solution supplier for liquid treatment
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� Desalination of brackish water and seawater to
produce drinking water
� Drinking and groundwater remediation, removal of
contaminants such as arsenic, chromium, uranium
and heavy metals
� Removal of heavy metal ions and organic
contaminants from industrial wastewater
� Applications in fossil fuel power plants and nuclear
power plants include:
− Demineralization of boiler feed water
− Condensate polishing
− Water treatment in cooling ponds
− Wastewater treatment
Power generationWater treatment
Tailor-made solutions for over 500 applications in key industries (1/3)
9 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Tailor-made solutions for over 500 applications in key industries (2/3)
� Cartridges (mains water)
− Softening (removing hardening materials)
� Beverages (soft drinks, juices, beer)
− Softening, desalination, debittering
� Sugar & sweeteners
− e.g., demineralization, decolorization, final
cleaning (polishing), inversion, chromatography
� Industrial food processing
� Catalysis
− Catalysis for plastics production or esterification,
e.g., BPA, MTBE
� Chloralkali electrolysis (brine processing)
� Process steam treatment and recycling
− e.g., in the metal processing and finishing
industry
� Purifying organic chemicals
− e.g., using adsorbers
Chemistry & petrochemistryFood & beverages
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� Recovering base metals, rare earths
and precious metals
� Processing metal concentrates
− e.g., purification of electrolytes
� Acid processing
� Treatment of mining wastewater
− e.g., removing heavy metal traces
− AMD (Acid Mine Drainage)
� Treating ultrapure water to manufacture:
− Semiconductors
− LCD screens
− Solar cells
− LED components
Electronics & microelectronicsMining
Tailor-made solutions for over 500 applications in key industries (3/3)
11 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Experience with the GoAfrica! -
Project of LANXESS LPT
Basic Idea & Scope
Step 1 Data Analysis
Step 2 Define Focus Countries
Step 3 Roll-out
12 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Experience with the GoAfrica! -
Project of LANXESS LPT
Basic Idea & Scope
Step 1 Data Analysis
Step 2 Define Focus Countries
Step 3 Roll-out
13 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
� Global production network to
serve worldwide demand
� Three state-of-the-art IX
production sites in Germany
and India
� Production facilities for RO
membrane elements and iron
oxide adsorber in Germany
� Global sales with approx. 60
direct marketing experts and
strong distribution networks
Leverkusen, DE
Birmingham, US
Bitterfeld, DE
A reliable partner – worldwideProduction site Technical marketing center
Jhagadia, IN
Toyohashi, JP
Singapore, SG
Shanghai, CN
Mumbai, IN
São Paulo, BR
México City, MX
Johannesburg, SA
Sydney, AU
LANXESS sites for liquid purification applications –products and solutions for customers worldwide
Krefeld, DE
Moscow, RU
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Geographical coverage in 2015
� North African countries (Morocco, Algeria, Egypt, Tunisia,
Lybia) are covered by Sales Director located in Italy;
Business is handled by a Middle East distributor
� Sales Director Africa located in Johannesburg plus two
distributors focusing on South Africa region
� „Whitespot“-area identified between North-African belt and
South-Africa region
subject to „GoAfrica!“ Project
LANXESS LPT Africa set-up at starting point
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Actions to prepare market entry
� Selection of 2-3 focus areas and countries respecting economic criteria as well as language, culture,
distances and political situation
� Gain information about market potential and market size for LPT
� Check on suitable business models
� Visit stakeholders in focus countries
� Identification and contact to potential local partners in focus countries
� Indentify and contact major accounts
� Communication and networking with global and local stakeholders (government & authorities, associations,
engineering companies, etc.)
Project scope “GoAfrica!”
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Experience with the GoAfrica! -
Project of LANXESS LPT
Basic Idea & Scope
Step 1 Data Analysis
Step 2 Define Focus Countries
Step 3 Roll-out
17 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Step 1 Data Analysis1st selection of focus countries - Subject to further evaluation
Criteria
� Fit into the selected
geographical area
� Total GDP
� Political stability /
accessability by travel
� Language barriers
� Known basic information
about present stage of
industrial development
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Quality of Data
� Statistics often not very
well maintained
� data either not
available or not
consistent from diff.
sources
� Material not appearing
when part of a plant
Step 1 Data AnalysisMarket size estimation – Import statistics
2014 2015 2016
Value (USD)
2014 2015 2016
QTY (KG)
2014 2015 2016
Av. Price (USD/KG)
Source: Global Trade Atlas
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Tricky to find
� Provider of study
needs reliable
database and proven
experience in the field
� Many market studíes
do not contain
breakdown of Africa to
countries
� At least few
information for major
countries as Nigeria,
Kenya, etc. are
available
Step 1 Data AnalysisMarket size estimation – Market Studies
Source: Global Water Intelligence - Global Water Market Study 2017
Equipment (USD) 2013 2014 2015 2016 2017 2018 2019 2020
Ion exchange, Industrial
High pressure membranes (RO/NF); Industrial
High pressure membranes (RO/NF), Utility
ED/EDI, Industrial
Activated carbon; Utility
Total
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
Ion exchange, Industrial
High pressure membranes (RO/NF); Industrial
High pressure membranes (RO/NF), Utility
ED/EDI, Industrial
Activated carbon; Utility
mn
US
D
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LXS risk map Africa
Step 1 Data AnalysisPolitical stability – Preset focus areas vs. LXS risk map
Travel ban
Travel warning
as of 8/2016
Selected focus areas
21 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Experience with the GoAfrica! -
Project of LANXESS LPT
Basic Idea & Scope
Step 1 Data Analysis
Step 2 Define Focus Countries
Step 3 Roll-out
22 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Strategic geographical focus for LPT
West-Africa:
� Nigeria defined as focus country to start
� in 2nd step Ghana and Cote d´Ivory as hub to cover
francophonic countries in West-Africa
East-Africa:
� Kenya defined as focus country to start
� in 2nd step extent as hub to Tanzania, Uganda,
Rwanda, Ethiopia
Central Africa (2nd step):
� Zambia defined as focus country as hub to Angola &
DR Congo
Step 2 Define Focus CountriesFinal definition of focus areas and focus countries
Focus area
Focus country
23 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Experience with the GoAfrica! -
Project of LANXESS LPT
Basic Idea & Scope
Step 1 Data Analysis
Step 2 Define Focus Countries
Step 3 Roll-out
24 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
� Delegations of the German Chamber of commerce
(AHK) in Kenya and Nigeria
� German Trade and Invest (GTAI): Information
service financed by German Government with
correspondents located in several SSA countries
� German Water Partnership (GWP) Working Group
Africa: joint booth on fares, arranging travels,
exchange forum for companies with SSA Strategy
� Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ), Kenya: steering local
projects with technology companies and
governmental organization
� Afrikaverein der Deutschen Wirtschaft (AV):
arranging travels & meetings with local Gov.,
Authorities, industrial customers
Local actions
� Meeting with local offices of organizations
mentioned on the left
� Visits on trade fairs/conferences in Ghana, Kenya
and Nigeria
� Discussions with Western Companies doing
business in Africa
� Started a list of potential partners from meetings/
trade fairs/conferences in Europe and Subsahara
Step 3 Roll-outActions 2016 – Preparation
Organisations supporting market entry
25 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
� Selection of support for market entry actions in
focus countries such as:
� Research of target industries
� Research of potential partners
� Research of business conditions
� Coordinated business trips
� Discussion with consultants
� Discussion with AHK´s
Actions / StatusStructured research for market entry
� LPT internal decision to start project for market
entry support in Kenya and Nigeria with AHK´s in
December 2016
� Projects with AHK Kenya and Nigeria started in
Jan 2017:
� Phase 1: Data evaluation
� Phase 2: Business trips to visit stakeholders
� Phase 3: follow-up
� Several potential cooperation partners identified,
first business started
� Continued efforts to promote brandname, as
technical trainings involving local associations
Step 3 Roll-outDevelopment 2017 - Market entry activities
26 5th German African Infrastructure Forum Nov. 2017 – LANXESS LPT – Experience with the GoAfrica! Project
Just about 2 years of experience…
� Take your time - establishing a network needs
time, expect business on mid-term
� You need to be there – search for local
representatives, work with local institutions &
partners
� Be persistent – one contact is no contact
� Spend efforts to establish the brand in the
countries – e.g. events, promos, publications,
seminars
� Be open minded to understand cultural
differences and work as a translator in the
company
Experience with the GoAfrica! - Project of LANXESS LPTLessons learned
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Safe harbour statement
This presentation contains certain forward-looking statements, including assumptions, opinions and views of the company or
cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results,
financial position, development or performance of the company to differ materially from the estimations expressed or implied
herein. The company does not guarantee that the assumptions underlying such forward looking statements are free from errors
nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual
occurrence of the forecasted developments.
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information,
including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any
errors, omissions or misstatements contained herein, and, accordingly, none of the company or any of its parent or subsidiary
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indirectly from the use of this document.