ICI » Topics » Markets and distribution

This excerpt taken from the ICI 6-K filed Mar 21, 2007.
Markets and distribution
ICI sells its products through an extensive network of subsidiaries, associates and distributors.

Specialty products manufactured by National Starch are sold mainly by direct sales forces and distributors. Customers are primarily other manufacturers in a range of markets from consumer-orientated manufacturers of branded goods in the food, perfume and personal care sectors to those involved in lubricants, papermaking and other chemicals.

Paints are sold through a range of distribution channels. Branded architectural paints are sold through a combination of independent trade and retail outlets, as well as the Group’s own trade stores, particularly in North America and the UK. Can coatings are sold to packaging manufacturers but supplied directly to beverage and food manufacturers in Europe, the Americas and Asia, where they are used in the production process.

The Group’s Regional and Industrial businesses sell into a wide range of industries including consumer products, electronics, engineering, extractive industries, food and beverages, pharmaceuticals and textiles. These products are either marketed directly or through independent merchants, wholesalers and distributors who resell to consumers. Commodity products are sold through a direct sales force or through distributors, primarily to other operators in the chemical industry.

This excerpt taken from the ICI 20-F filed Mar 31, 2006.
Markets and distribution
ICI sells its products through an extensive network of subsidiaries, associates and distributors.

Specialty products manufactured by National Starch, Quest and Uniqema are sold mainly by direct sales forces and distributors. Customers are primarily other manufacturers in a range of markets from consumer-orientated manufacturers of branded goods in the food, perfume and personal care sectors to those involved in surfactants, lubricants, papermaking and chemicals.

Paints are sold through a range of distribution channels. Branded architectural paints are sold through a combination of independent trade and retail outlets, as well as the Group’s own trade stores, particularly in North America and the UK. Can coatings are sold to packaging manufacturers but supplied directly to beverage and food manufacturers in Europe, the Americas and Asia, where they are used in the production process.

The Group’s Regional and Industrial businesses sell into a wide range of industries including engineering, textiles, pharmaceuticals, aerospace, electronics and the extractive industries. These products are either marketed directly or through independent merchants, wholesalers and distributors who resell to small users. Commodity products are sold through a direct sales force or through distributors, primarily to other operators in the chemical industry.

Competition
Owing to the breadth and variety of the products and end markets served, the Group encounters a wide range of competitors, from multinational companies to many small local and independent firms.

National Starch does not compete with any one competitor in all of its markets. However, multinational competitors in specific markets include H. B. Fuller, Rohm and Haas, Henkel, Air Products and Chemicals and A. E. Staley. Similarly, Uniqema does not compete with any one competitor in all of its markets, but competitors in particular markets include BASF, Cognis, Croda, Degussa and Rhodia.

Quest is a leader in the development, application and production of flavours and fragrances. Quest’s main competitors are multinational flavour and fragrance houses, including International Flavors & Fragrances (IFF) and Givaudan.

ICI Paints’ principal competitors have regional strengths in decorative coatings and include Sherwin-Williams (North America), BASF (Latin America), Akzo Nobel (Europe) and Nippon Paint (Asia).

Seasonality
Due to the diversity of their product portfolios and broad international coverage, seasonality within National Starch, Quest, Uniqema and the Regional and Industrial businesses is not significant. ICI Paints, however, is affected, with trading patterns influenced by prevailing weather conditions. With the geographic profile of ICI Paints, this typically results in higher levels of activity in the second and third quarters of the year.

Sources and availability of raw materials
The raw materials used by ICI’s businesses are from a variety of sources, principally comprising petrochemical-based raw materials, renewable resources and a range of other materials. A brief description of the raw materials and respective sources is provided for each business below. ICI has established a core capability in procurement, embedded within its businesses but managed across the Group by a Procurement Board. ICI believes that the cost savings generated by improving its procurement capabilities have been significant and that there is still scope for significant further improvement.

The prices of raw materials are subject to normal conditions of supply and demand. However, the prices of some raw materials are volatile and are affected by cyclical movements in commodity prices and the availability of such materials.

The primary raw materials used by National Starch are petrochemical based or are derived from corn and tapioca. A wide range of suppliers are used, and materials are generally available in most geographic markets. Specialty hybrid corns (high amylase and waxy seeds) are planted under contract for National Starch to help ensure supply of these special strains. Many of National Starch’s products, especially in the Electronic and Engineering Materials business, contain one or more proprietary raw materials, developed and manufactured in-house. These materials are not available to National Starch’s competitors, therefore providing a unique position in a number of markets.

Quest purchases thousands of different raw materials from sources around the world. The main natural raw materials are extracts and concentrates from fruits, vegetables and other flora, as well as animal-based products and essential oils. Synthetic raw materials are mostly organic chemicals.

The raw materials for Uniqema include a wide range of both renewable (palm oil, rape-seed oil and tallows) and petrochemical-based (ethylene oxide and propylene oxide) raw materials. Tallow is typically procured in Europe, North America and Latin America, while palm oil is normally sourced from Asia.

Key raw materials for ICI Paints include resins, solvents and pigments supplied by major chemical companies. Materials are typically available worldwide, and ICI Paints believes its strong global footprint provides commercial advantages in securing the supply of essential materials.

Intellectual property
ICI has many patents and patent applications which help to protect its technology and numerous trademark registrations which help to protect its brands. In addition, ICI derives substantial competitive advantage from proprietary business knowledge relating to formulae, products, processes and technical know-how.

ICI uses appropriate terms of employment and management processes to identify and protect its intellectual property. As necessary, it enters into confidentiality agreements with customers, suppliers and other third parties to protect the confidentiality of its proprietary, technical and business information.


   
   

ICI Group and its businesses
ICI Annual Report and Accounts 2005 19

Back to Contents

This excerpt taken from the ICI 6-K filed Mar 14, 2006.
Markets and distribution
ICI sells its products through an extensive network of subsidiaries, associates and distributors.

Specialty products manufactured by National Starch, Quest and Uniqema are sold mainly by direct sales forces and distributors. Customers are primarily other manufacturers in a range of markets from consumer-orientated manufacturers of branded goods in the food, perfume and personal care sectors to those involved in surfactants, lubricants, papermaking and chemicals.

Paints are sold through a range of distribution channels. Branded architectural paints are sold through a combination of independent trade and retail outlets, as well as the Group’s own trade stores, particularly in North America and the UK. Can coatings are sold to packaging manufacturers but supplied directly to beverage and food manufacturers in Europe, the Americas and Asia, where they are used in the production process.

The Group’s Regional and Industrial businesses sell into a wide range of industries including engineering, textiles, pharmaceuticals, aerospace, electronics and the extractive industries. These products are either marketed directly or through independent merchants, wholesalers and distributors who resell to small users. Commodity products are sold through a direct sales force or through distributors, primarily to other operators in the chemical industry.

Competition
Owing to the breadth and variety of the products and end markets served, the Group encounters a wide range of competitors, from multinational companies to many small local and independent firms.

National Starch does not compete with any one competitor in all of its markets. However, multinational competitors in specific markets include H. B. Fuller, Rohm and Haas, Henkel, Air Products and Chemicals and A. E. Staley. Similarly, Uniqema does not compete with any one competitor in all of its markets, but competitors in particular markets include BASF, Cognis, Croda, Degussa and Rhodia.

Quest is a leader in the development, application and production of flavours and fragrances. Quest’s main competitors are multinational flavour and fragrance houses, including International Flavors & Fragrances (IFF) and Givaudan.

ICI Paints’ principal competitors have regional strengths in decorative coatings and include Sherwin-Williams (North America), BASF (Latin America), Akzo Nobel (Europe) and Nippon Paint (Asia).

Seasonality
Due to the diversity of their product portfolios and broad international coverage, seasonality within National Starch, Quest, Uniqema and the Regional and Industrial businesses is not significant. ICI Paints, however, is affected, with trading patterns influenced by prevailing weather conditions. With the geographic profile of ICI Paints, this typically results in higher levels of activity in the second and third quarters of the year.

Sources and availability of raw materials
The raw materials used by ICI’s businesses are from a variety of sources, principally comprising petrochemical-based raw materials, renewable resources and a range of other materials. A brief description of the raw materials and respective sources is provided for each business below. ICI has established a core capability in procurement, embedded within its businesses but managed across the Group by a Procurement Board. ICI believes that the cost savings generated by improving its procurement capabilities have been significant and that there is still scope for significant further improvement.

The prices of raw materials are subject to normal conditions of supply and demand. However, the prices of some raw materials are volatile and are affected by cyclical movements in commodity prices and the availability of such materials.

The primary raw materials used by National Starch are petrochemical based or are derived from corn and tapioca. A wide range of suppliers are used, and materials are generally available in most geographic markets. Specialty hybrid corns (high amylase and waxy seeds) are planted under contract for National Starch to help ensure supply of these special strains. Many of National Starch’s products, especially in the Electronic and Engineering Materials business, contain one or more proprietary raw materials, developed and manufactured in-house. These materials are not available to National Starch’s competitors, therefore providing a unique position in a number of markets.

Quest purchases thousands of different raw materials from sources around the world. The main natural raw materials are extracts and concentrates from fruits, vegetables and other flora, as well as animal-based products and essential oils. Synthetic raw materials are mostly organic chemicals.

The raw materials for Uniqema include a wide range of both renewable (palm oil, rape-seed oil and tallows) and petrochemical-based (ethylene oxide and propylene oxide) raw materials. Tallow is typically procured in Europe, North America and Latin America, while palm oil is normally sourced from Asia.

Key raw materials for ICI Paints include resins, solvents and pigments supplied by major chemical companies. Materials are typically available worldwide, and ICI Paints believes its strong global footprint provides commercial advantages in securing the supply of essential materials.

Intellectual property
ICI has many patents and patent applications which help to protect its technology and numerous trademark registrations which help to protect its brands. In addition, ICI derives substantial competitive advantage from proprietary business knowledge relating to formulae, products, processes and technical know-how.

ICI uses appropriate terms of employment and management processes to identify and protect its intellectual property. As necessary, it enters into confidentiality agreements with customers, suppliers and other third parties to protect the confidentiality of its proprietary, technical and business information.


   
   

ICI Group and its businesses
ICI Annual Report and Accounts 2005 19

Back to Contents

This excerpt taken from the ICI 20-F filed Apr 1, 2005.
Markets and distribution
Specialty products manufactured by National Starch are sold mainly by direct sales forces, alliances and distributors. Customers are primarily other manufacturers, in a range of markets from consumer-oriented manufacturers of branded goods in the food and personal care sectors to those involved in papermaking and packaging industries.


 

ICI ANNUAL REPORT AND ACCOUNTS 2004


Back to Contents

DESCRIPTION OF BUSINESS   11

 

 

 

     
  Raw materials  
     
     
  The primary raw materials used by National Starch are petrochemical based raw materials, corn and tapioca. National Starch’s main chemical raw material is vinyl acetate monomer.  
     

This excerpt taken from the ICI 6-K filed Mar 16, 2005.
Markets and distribution
Specialty products manufactured by National Starch are sold mainly by direct sales forces, alliances and distributors. Customers are primarily other manufacturers, in a range of markets from consumer-oriented manufacturers of branded goods in the food and personal care sectors to those involved in papermaking and packaging industries.


 

ICI ANNUAL REPORT AND ACCOUNTS 2004


Back to Contents

DESCRIPTION OF BUSINESS   11

 

 

     
  Raw materials  
     
     
  The primary raw materials used by National Starch are petrochemical based raw materials, corn and tapioca. National Starch’s main chemical raw material is vinyl acetate monomer.  
     

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki