Since January 2021, Brenntag has been managed through the two global divisions Brenntag Essentials and Brenntag Specialties, which are headed by our Chief Operating Officers, Steven Terwindt and Henri Nejade. They talk about how these two new divisions will enable us to better serve our partners – customers and suppliers.
STEVEN TERWINDT First of all, I would like to stress that Brenntag’s business model is not changing at all. We will continue to offer both industrial and specialty chemicals and ingredients, with our customers getting everything from a single source. But our approach is evolving to meet the changing needs of our customers and suppliers. We are making changes to the way in which we will approach our markets going forward.
HENRI NEJADE Both divisions operate in attractive, growing markets and will strengthen Brenntag’s position as global market leader. What is important is that we will focus and manage the two divisions precisely in line with market requirements. That goes for our sales organization and our technical advice as well as logistics and services.
ST Brenntag Essentials stands for everything that has long set Brenntag apart. A reliable and efficient global network with deep local market knowledge and proximity to its customers. We offer an extensive portfolio of products and services in a wide variety of industries, while complying with the highest standards of quality and safety.
The typical Brenntag Essentials customer usually buys standardized chemicals in relatively large quantities, but also in smaller packaged formats. For our suppliers in the Brenntag Essentials division, it is therefore extremely important that Brenntag is a strong local distribution partner that ensures smooth and cost-efficient supply chains while at the same time being able to respond to fluctuations in demand with flexibility and agility.
HN At Brenntag Specialties, the emphasis is on value-added services and expertise in the focus industries that we have defined. I would like to stress once again that Brenntag is already the largest specialty chemical distributor worldwide. Last year, this area of our business accounted for almost 40% of our operating gross profit. We are therefore building on a very strong foundation. With our industry experts, application knowhow and extensive value-added services, we will strengthen relationships with our customers even further by supplying them with precisely the solutions they are looking for.
HN Our focus industries at Brenntag Specialties are Nutrition, Pharma, Personal Care/HI&I, Water Treatment, Lubricants and Material Science. Material Science comprises Coatings & Construction, Polymers and Rubber. All these industries are shaped by regional or global trends. They show strong growth potential and the customers have an increased need for value-added services. We concentrate on sharing application advice and dedicated knowledge of these industries with our customers and offering tailored solutions for high-quality products and complex applications.
ST Brenntag Essentials is the flexible distribution partner for customers and suppliers at local level. The chemical distribution business is very local. Therefore, it is important to have access to local end customers and be able to offer them a broad product portfolio and flexible delivery service. Our aim is to optimize our costs and offer our products and supply chain services at competitive prices. On top of this, there is our first-class customer service with its rapid response times, strong reliability and highest standard of quality.
HN The two divisions complement one another and will contribute jointly to Brenntag’s future success. Under the Brenntag roof, both will contribute to strengthening and expanding our position as the global leader in chemical distribution with a full-line range.
ST The site network is generally overseen by Brenntag Essentials, and we will make our logistics services available to Brenntag Specialties. We are also working to harmonize and standardize our administrative functions such as IT, finance and human resources. Centralizing these functions will increase our functional excellence and allow the two operating divisions to concentrate fully on working with our customers and suppliers. And additionally, we will of course continue to apply the leading safety and compliance standards in the chemical distribution industry.