Frequently Asked Questions About Toll Manufacturing

Toll manufacturing, also known as contract blending or contract manufacturing, is a service whereby the manufacturing of chemical products is outsourced to a blender (a third-party company). These days, it is common for chemical companies to do everything within their power to reduce production risks. You provide the formula, and the toll blender scales your formula up, blends your formula to your requirement, and then packages your product and delivers it to you or your customers (depending on your specification).

Contract manufacturing or chemical toll manufacturing can be an excellent solution for many industries. Today, we have put together some frequently asked questions along with the answers to those questions. Continue reading to learn more.

What is toll manufacturing?

This is a service offered by a company having specialized equipment that processes, packages, stores, and ships your products.

How is my Product Going to be Packaged?

Your products are packaged based on your specification. There are different packaging options such as bags, cartons, or drums.

Can my product be shipped in liquid form?

Yes. The most excellent part of toll manufacturing is the variety of shipping and packaging options available. Chemical toll manufacturing companies can blend your raw materials in a tank and load them directly into a tank truck. This is done using an automated unloading and loading system. This system has the ability to move products from the company’s bulk tanks to anywhere in the plant and thereafter to the unloading and loading station, which is outside the plant.    

Will the product be tested?

Yes, they will be tested. Each product is tested and then approved in a laboratory by professional laboratory technicians.

How is the finished product stored?

The storage pattern of finished products depends on the quality of your finished products, as well as the date of your desired ”need by.”

Usually, product shipping from the toll manufacturing company soon after the completion will be stored there until it is shipped. This storage will be done on-site.

But if the product is to be shipped to end-users in the future, then it might be stored in an off-site warehouse.

Does the toll manufacturer provide the raw materials for blending?

This depends on your needs and requirements. Most companies desire to outsource the entire process of producing chemicals, while other companies choose to provide the ingredients themselves. This includes the purchase of raw materials/ingredients. In all, a good chemical supplier and chemical manufacturer will adopt their pattern of working to the needs of your business.

Will my formula be safe when choosing toll blending services?

Absolutely! A chemical manufacturer should welcome a Non-Disclosure Agreement (NDA) with their business partners to ensure full confidentiality.

Optimal Chemical is a full-service chemical company having the infrastructure to turn ideas into solutions and products. We are a leading worldwide supplier of specialty chemicals, custom chemical manufacturing, and toll services. To experience top-quality service, contact us today.  

Energy Storage Market: Opportunities Abound for Entrepreneurial Focused Companies Through 2030

By Gene Williams, President of Optima Chemical

Climate change and environmental sustainability continue to take center stage around the globe due to increased pressure from world leaders to reduce carbonization. As a result, the global energy storage market is positioned for future growth given that battery storage systems remain crucial to supporting the transition to clean and renewable energy sources. In fact, despite the economic hardships created by the COVID-19 pandemic over the last 18 months, 2020 was a record year for growth in the global energy storage market, according to a recent report by energy market analyst group Wood Mackenzie, entitled “Global Energy Storage Outlook H1 2021.” The report underscores that last year, this sector saw a 51% increase in gigawatt hour (GWh) usage as compared to 2019 and goes on to say that “approximately $5 billion of new investment was committed to storage projects across the world last year, increasing the cumulative total to $22 billion.” 

The outlook going forward is also very positive and indicates significant growth over the next decade. The Wood Mackenzie (WoodMac) report estimates that by 2025, investment projects will reach $86 billion, with a 24% compound annual growth rate (CAGR) and will continue to grow 27 times its current size by 2030 “by adding 70GWh of storage capacity a year to surpass 729 GWh in 2030.”

Given the supportive fundamentals of this sector now and into the coming years, there is a tremendous opportunity for companies – both large organizations and start-ups – to enter into the energy storage marketplace during this upswing in order to capitalize on the growth projections within this highly desirable segment. But, before doing so, it is critical to first gain a better understanding of the specific areas of the energy storage market that will likely have the most potential for continued expansion, as well some energy technology trends that could spur innovation and create a pathway to success within this sector. What follows is an overview of those two important topics, as well as the ways in which a toll manufacturing company like Optima Chemical – a leading global supplier of specialty chemicals, toll services, and manufacturing – can be an essential tool for organizations that need help breaking down the barriers to entry. 

Understanding the Main Segments of the Energy Storage Market 

The expansion of renewable energy and continued decline in the costs of battery energy storage systems are the primary drivers for growth in this marketplace, meaning these types of technologies will likely be included in national and global energy and carbonization plans now and in the years to come. 

Companies looking to break into this space must understand the marketplace. To that end, there are three main segments of the energy storage market: pumped storage hydropower (PSH), stationary source, and transportation. Research indicates that the stationary and transportation energy storage subsectors show the most potential for future growth. For example, together these markets are estimated to grow 2.5–4 terawatt-hours (TWh) annually by 2030, which represents a growth rate of 3 to 5 times its current 800-gigawatt-hours (GWh). 

Breaking things down further, we turn to the “Energy Storage Grand Challenge: Energy Storage Market Report,” which states that “electrified powertrains (i.e., onboard energy storage) have gained greater acceptance and have transitioned mobility to the largest single demand for energy storage, representing approximately five to ten times greater usage by energy capacity than stationary energy storage. The convergence of electrified transportation, a rapid decrease in battery storage costs, and increased variable renewable generation has led to a surge in research and market deployments of energy storage across the global electric and transportation sectors. Although once considered the missing link for high levels of grid-tied renewable electricity, stationary energy storage is no longer seen as a barrier, but rather a real opportunity to identify the most cost-effective technologies for increasing grid reliability, resilience, and demand management.”  In terms of renewable electricity, there is a huge growth potential here given that countries around the world are setting goals to generate 50% of their total energy from renewables by 2030 as part of their decarbonization efforts. With this kind of demand on the horizon, renewable energy plants will need to be outfitted with battery energy storage systems that can store excess energy during times when generation is high, as well as when generation is low but demand remains high, thus illustrating an opportunity for companies that might be in search of pathways into this market. 

Of course, the vast majority of growth is due to the adoption of electronic vehicle (xEVs), says the report, and continued adoption (i.e., 30% of vehicle sales) of xEVs could catapult the market into the 4 terawatt hour (TWh) territory. Going forward, the growth seen over the last few years in xEVs is expected to continue as “central and local government incentives for consumers remain in place in many major world markets, and as manufacturers increase the size of manufacturing platforms. Analysts project mobility storage demands in 2030 of 0.8 to 3.0 TWh, with the demand for light-duty EVs dominating near-term markets.” A Bloomberg report notes that by 2022, there will be over 500 different EV models available in the marketplace and that by 2040, over half of all passenger vehicles sold will be electric. 

On the stationary energy source front, the report notes that pumped-storage hydropower (PSH) dominates the category currently. However, new projects tend to be focused on lithium-ion (Li-ion) batteries due to decreasing prices. By 2030, “annual global deployments of stationary storage (excluding PSH) is projected to exceed 300 GWh, representing a 27% compound annual growth rate (CAGR) for grid-related storage and an 8% CAGR for use in industrial applications such as warehouse logistics and data centers.”

Key Emerging Energy Technology Trends

The biggest energy technology trend now and into the future is lithium-ion (Li-ion) batteries. This type of battery is utilized in both the stationary and transportation markets, and they also play a big role in powering consumer electronics, meaning there will be continued demand for this product as the xEv market continues to expand. In fact, most industry analysts expect that Li-ion batteries will capture a majority of the market within the next 10 years. The transportation sector dominates the Li-ion market and is also the fastest growing segment of the energy storage sector (only 1% of automotive sales consuming 60% of Li-ion batteries). This demand is bolstered by the current pricing trend of Li-ion battery packs – according to a Bloomberg report, Li-ion battery pack prices “fell 87% from 2010 to 2019, with the volume-weighted average hitting $156/kWh. Underlying material prices will play a larger role in the future, but the introduction of new chemistries, new manufacturing techniques and simplified pack designs will keep prices falling.” Together this demand and falling prices indicate a continued upward tick of activity within the sector going forward. While China is the primary manufacturer of Li-ion battery cells today (accounting for 80% of the global manufacturing capacity, or approximately 525 GWh), the Unites States follows directly behind China, making up “8% of current global capacity, primarily due to the Tesla-Panasonic plants in Nevada. The United States also has 6% (~90 GWh) of the facilities planned/under construction,” illustrating further expansion of the market share in the coming years. 

Another key technology in this sector is lead acid batteries, which are prevalent in both the stationary and transportation segments of the market. In addition to providing starting, lighting, and ignition (SLI) power to many on and off-road vehicles in the market, this type of batter also supplies a significant amount of energy storage for the industrial sector, including telecom battery backup, UPS and data centers, as well as forklifts. According to the “Energy Storage Grand Challenge Market Report, global lead–acid battery sales grew annually by more than “20% from 2013–2018 to $37 billion. Currently, they provide more than 70% of all rechargeable markets and 75% of lead–acid sales are in the automotive SLI sector.” It goes on to say that “although lead–acid batteries are currently the most common battery in both stationary and transportation applications (for SLI), they are expected to still lead in capacity (GWh) by 2025, but may lag in sales dollars.” Demand for this type of battery technology is primarily driven by China, with Europe coming next and then the United States at the tail end of the demand lifecycle. Finally, according to the Energy Storage report, industry analysts believe that lead acid chemistry could have a big impact on the stationary storage market in the future, opening up “potential opportunities including the following: 

• Investment in bipolar design to increase energy density and reduce cost;
• Behind-the-meter storage and other applications where safety is critical; and
• Telecom reserve power deployment in developing countries and for 5G deployment.”

The third type of battery technology is pumped storage hydropower (PSH), which is one of the earliest energy storage methods available in the marketplace. A majority of the usage of this segment is found in Asia and Europe, and while the “amount of operating PSH is significant, not all of it was designed to meet today’s grid challenges,” which don’t support continued expansion of this technology going forward, particularly in the United States. Industry analysts project the capacity in this segment to “increase 50% to 240 GW by 2030, with 65 of the new projects in China, 19 in the United States, and 10 in both Australia and Indonesia.” The report continues, stating that “from 2020–2026, China is expected to deploy more than 35 GW of PSH, typically as very large plants. For example, China’s $2.8-billion Fengning County plant, intended for the 2022 Winter Olympics, is 3.5 GW.” This shows a growing demand in Asia, without much deployment planned here in the United States. 

There are two smaller subsections of energy storage technologies to note. The first is compressed air energy storage (CAES), which is only utilized in the stationary market and has just seven commissioned facilities worldwide. The United States deployed the largest quantity of both capacity and power from 2011-2019. China accounts for the next biggest user of this technology, having secured financing for three facilities which were under construction as of 2019-2020 but according to the Energy Report, “no information was found on whether any of these projects were completed.” The final technology to note is redox flow batteries (RFB), which are also exclusively used in the stationary market and typically have a water solvent base. Asia, and China in particular, are the leaders in RFB deployment within the marketplace. The Energy Report states that “of the 800 MWh of RFB projects deployed since 2008, more than 75% were deployed in the last 2 years,” indicating and increased interest in this technology within recent years. The report continues, stating that redox flow batteries have “an average system duration of 4 hours” and “could compete with lithium-ion for up to 69 GWh (46%) of the total 150 GWh of required capacity in 2030.”

Benefits of Partnering with Third Party Chemical Suppliers and Toll Manufacturers 

The WoodMac report makes clear that Li-ion batteries are the future of the energy storage market. It concludes that “long-duration batteries helped to strengthen grid reliability and reduce the risks of power outages during this period. By 2030, the average lithium-ion project size will increase from 100-MWh scale to 1-GWh scale, up sevenfold.” 

Given all the opportunities that are presented by the above battery storage demand and technology trends, particularly within the Li-ion subcategory, many start-up companies and large corporations are interested in breaking into the market. However, many of these companies lack the scientific expertise, resources, and facilities to develop the necessary chemistry needed to manufacture these types of products. Partnering with a third-party chemical supplier and toll manufacturer, such as Optima Chemical, presents a viable solution for companies looking to break down the barrier of entry into this marketplace. 

As a full-service chemical company with the infrastructure to take ideas through to delivered products and solutions, Optima Chemical has the engineering capabilities needed to manufacture high energy and high hazard, sensitive chemistry safely at large scale. Optima Chemical has two U.S. based plants, where they manufacture products for their partners as well as develop their own proprietary products, which offers one-stop-shopping for its toll partners, with services such as technical support, analytical development, route development, and scale-up available for all customers, be it for custom made products or some short-term use of their facilities. 

Simply put, entrepreneurial companies that are looking for a point of entry at the ground floor of the energy storage market should consider working with a third-party chemical toll manufacturing company. With so much growth potential in this expanding and in-demand sector, getting a piece of the pie will come down to understanding the limitations of your company and its expertise. Let them focus on the chemistry while your company manufactures and supplies the batteries to the leading transportation and stationary market players. 

Some Challenges Faced by the Chemical Manufacturing Industry

Being a chemical manufacturer does come with its set of challenges. As the market keeps on changing, new ones are popping up all the time, so it’s imperative to be able to adapt. Staying afloat in this business means overcoming these challenges. With that in mind, here are some challenges many chemical manufacturers face in today’s world.

Commodity prices that keep on changing

As a chemical custom manufacturing business, you have to keep on looking for ways to keep the costs as low as possible, which means keeping in touch with new opportunities and upgrading your gear as needed. Energy costs, just to name one example, used to be much higher than a mere decade ago. With newer and better technology, energy costs are able to be much lower. Being able to respond to fluctuating energy costs is not to be questioned either.

Working towards better efficiency

As a chemical supplier, striving for better efficiency and cost reduction is key. At the same time, a manufacturer should not venture outside of the framework of whatever regulations are in effect to ensure compliance. When all is said and done, formula optimization is an ongoing process that helps keep the costs down.

On one hand, a chemical manufacturer needs to provide the end products at affordable costs. On the other, taking shortcuts is next to impossible when compliance is on the table. The solution lies in finding the golden line between pleasing them both.

Data management

Gathering the data is one thing, but managing it is another story. While the customers are looking for the kinds of data that will help them get a better deal, the regulators are looking for transparency and ensuring that everything is in line with the local guidelines. Rest assured that you will be questioned by both at some point – do you have the answers ready? With proper data management, this tends to be a breeze.

Quality audits are going through an upward swing

Chemical manufacturers are subject to regulatory audits to ensure compliance at all times. Maintaining a high level of quality goes without saying. Not only that, but they are also expected to document the operational processes so they can be prepared in the unfortunate event of recalls. Transparency is key; all the data gathered should be made available for any customer and chemical supplier to see.
The chemical toll manufacturing industry is ripe with opportunities, but to reach the highest potential in the business, being familiar with its current trends and challenges is needed. Today Optima Chemical is a full service chemical manufacturing company striving to deliver the best products and solutions to our customers.

Optima Chemical Receives Seven Seals Award for its 

Support of Employees that Serve in the Military and Reserves

By Gene Williams, President of Optima Chemical

It is a great honor to announce Optima Chemical’s receipt of the Seven Seals Award for meritorious leadership and initiative in support of the men and women who serve America in the National Guard and Reserve. 

This prestigious award is the broadest and most inclusive award given by Employer Support of the Guard and Reserve (ESGR), which is a Department of Defense volunteer organization that was established in 1972 to promote cooperation and understanding between Reserve Component Service members and their civilian employers and to assist in the resolution of conflicts arising from an employee’s military commitment, providing free education, consultation and, if necessary, mediation for employers of veteran Guard and Reserve employees. The Seven Seals Award represents the seven military reserve components – Army, Navy, Air Force, Marine and Coast Guard reserves, along with the Army and Air National Guard – and is presented at the discretion of the State Chair or by ESGR senior leadership. According to the ESGR website, “is in recognition of significant individual or organizational achievement, initiative, or support that promotes and supports the ESGR mission, to include the efforts of the more than 4,500 volunteers who carry out ESGR’s mission across the United States on a daily basis. Service members wishing to have their employer or other deserving individuals considered for the Seven Seals Award should email their ESGR State Committee via the ESGR State Pages link.”

For many years, Optima Chemical has been able to give back to the men and women who have bravely served our country by offering applicable candidates employment opportunities at Optima Chemical when available. As an employee driven award, we are grateful that one of our esteemed veteran staff members submitted Optima Chemical as an organization that has significantly advanced the ESGR’s mission because we value the contribution veterans bring to our company. And while this is the first time this award has been bestowed upon Optima Chemical, we view this as the chance to continue to contribute to the betterment of our country by supporting veteran staff members who formerly or actively serve in all branches of the military and reserve. 

With five current veteran employees on staff at Optima Chemical, two of whom are currently active in the reserves, we do everything we can to honor their dedication to our country through donations to veteran based organizations, sponsorships at military focused events, and the importance Optima Chemical places on hiring men and women who have served in the military. In the past, Optima Chemical has had several employees who were in the National Guard and we worked with them to accommodate their schedules when they were called out on duty, which we will continue to do with the current members of our staff who are still making sacrifices to serve our country in the reserves. 

As a leading global supplier of specialty chemicals, toll services and custom manufacturing, Optima Chemical is a growing organization that has a robust staff of smart, hard-working, and devoted employees in the core markets in which we service our customers. We are continuing to expand our footprint and offerings on both a local and global scale, meaning we are always in search of new talent to bring onboard to help support our customers’ changing needs. Optima Chemical values the time, faithfulness, and sacrifice that our veteran employees have made on behalf of the United States, and we vow to continue to support our local veteran community in every way we are able to, both now and into the future.

Best Practices from Optima Chemical on Working with a Toll Manufacturing Company

By Gene Williams, President of Optima Chemical

Toll manufacturing, which is when a company (source company) outsources the production of raw materials, semi-finished products, and finished products to a third-party service provider (toll manufacturer), is playing an increasingly important role in the chemical industry for several reasons. 

First is the cost savings. This type of contractual arrangement allows a source company to reduce overhead costs while gaining access to a highly specialized workforce and state-of-the-art production plants that it does not possess itself. Next, there is protection against production and regulatory risks. Manufacturing chemicals – whether that includes blending/mixing, isolating/purifying solids, or fractional distillation/ solvent recovery – is challenging and can be dangerous if the right safety protocols and skilled professionals are not in place to operate the necessary equipment and handle the chemicals. Working with a toll manufacturing company helps mitigate these risks while absorbing the burden of regulatory compliance. Finally, using a toll manufacturing company allows source companies to focus on growing their core business instead of learning how to produce chemicals effectively, efficiently, and safely. Think about it – given that toll manufacturing companies specialize in chemical processing and production, the end-product will be of higher-quality, more consistent, and safer to use for the end-customer than if a company tried to produce the chemicals in-house. By partnering with a well-established toll manufacturer, source companies can expend their time and energy on growth instead of worrying about expensive up-front costs associated with building a plant and convening the necessary team of chemists required to produce a first-rate product. Together these three factors have been driving increased interest in toll manufacturing within the chemical processing industry over the past decade, particularly in the specialty plastics, performance materials/consumer goods, and pharmaceutical industries. 

With two chemical manufacturing sites in the U.S., Optima Chemical is an experienced and well-recognized provider of chemical toll manufacturing services to a broad range of chemical markets. We are known in the marketplace for providing fast and reliable engineering and manufacturing solutions that meet our customers’ individual requirements, be it in Optima Chemical’s existing toll manufacturing plant or in a new build. Our fast, reliable engineering and toll manufacturing solutions for chemical markets means Optima Chemical can get new equipment and plant installations up and running quickly. Most importantly, Optima Chemical offers our customers: capital resources and the ability to amortize capital over a contract period; the capacity to move quickly on capital projects from installation to start-up; and comprehensive scale and unique manufacturing capabilities. The bottom line is that, as a leading global supplier of specialty chemicals, toll services, and custom manufacturing, Optima Chemical has a long-standing track record of providing customers with solutions to their own internal manufacturing limitations by helping them bridge volumes for new product launches and handling specialist chemistries that are not core to their own expertise.

After three decades of being a trusted partner to source companies operating within the chemical manufacturing industry, Optima Chemical is urging companies that are looking for the right toll manufacturer to consider the following best practices when making their determination: 

1. Make sure what you are paying for meets your specific needs – Not all toll manufacturers are created equal, so the services and products each provider offers can vary widely from company to company. And while most toll manufacturers say they are nimble and flexible, they simply might not have the right equipment or expertise in place to deliver what you need within the timeframe in which you need it. Therefore, it is imperative that you align your needs with each toll manufacturing provider’s service offerings before partnering with anyone. For example, do you need to outsource the raw materials for your product, or are you looking to supply those and the formula? Do you require processing, packaging, labeling, and delivery to end-clients to be included in your agreement? At Optima Chemical, we cater our services to the needs of each customer, and we have the capital, talent, and tools to source materials in bulk, process and manufacture chemicals using your formulation, provide logistical capabilities to get your product to your end-clients when they need it, and the ability to scale up as needed. 
2. Ask the right questions – While you are weighing the pros and cons of each potential toll manufacturer partner, it is essential that you ask the right questions to better understand the company’s business model and service offerings. Some things to consider asking include: whether the manufacturer has the capacity to handle all of your production needs (i.e. small and large batch productions) currently and in the future if your needs change; an estimated production schedule/timeline and better insight into their lead times; and if they can provide certifications indicating regulatory compliance. Optima Chemical is a full-service chemical company with the infrastructure to take ideas through to delivered products and solutions. Since our inception in 1991, Optima Chemical’s customers have supplied the need, and we provide everything else, from producing the right product or service at the right price to delivering that on time, no matter what. We are compliant with all current regulatory requirements and we have high standards when it comes to safety, the environment, and the quality of our products. 
3. Do your due diligence on the company before signing a contract – With any contract, once you are locked into an agreement the terms cannot be altered. Thus, it is of critical importance that you conduct meticulous due diligence to vet the toll manufacturer with whom you intend to enter into a partnership. The following are things you should consider doing ahead of contracting with anyone: run a background check on the company’s executive team; audit their financial statements; do physical inspections of their facilities; ask for references from current or former clients, as well as references for key employees and an organizational chart that outlines the company’s structure; and ask for a list of all current clients. At Optima Chemical, we are always transparent with our prospective clients on our previous experience, client relationships, pricing structure, and always welcome in-person tours of our facilities. 
4. Protect your trade secrets – Given that you are providing a unique formula to a third-party provider, you need to ensure that all confidential information is protected at all times. Any toll manufacturer worth their salt will agree to a non-disclosure agreement (NDA) that outlines the company’s relevant trade secrets, the measures the toll manufacturer will take to protect that confidential information – including protocols for employees and contractors that need access to this type of information – and the inclusion of non-compete language to disincentivize the third-party provider from misusing the source company’s trade secrets. At Optima Chemical, we put the needs of our clients first and always hold their right to privacy above everything else. As a trusted partner to a multitude of customers spanning the last three decades, we provide assurances, and the appropriate legal documentation, that your formulation lives on within your company and your company alone. 

As the chemical manufacturing space continues to evolve, toll manufacturing remains a growing segment of chemical production in the current supply chain ecosystem, given the cost-effective advantages it offers to a broad range of companies, such as start-up organizations that might be looking to get a product to market quickly or companies that only require small batches of product for prototyping purposes. Whatever your circumstances might be, toll manufacturing has proven to be a winning proposition for many customers worldwide and will undoubtedly continue to be the right choice for a variety of source companies now and into the future. 

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Optima Chemical Earns Silver Medal Certification for Sustainability from EcoVadis 

By Gene Williams, President of Optima Chemical

The word sustainability is defined as “the quality of not being harmful to the environment or depleting natural resources, and thereby supporting long-term ecological balance.” In simpler terms, it means being able to meet the needs of today without compromising the ability to meet the needs of future generations. And while sustainability can mean different things to different people and organizations, one thing is for certain – it is of growing importance to businesses and consumers alike as each group looks for ways to reduce their carbon footprint. 

In fact, over the past two decades, governments across the globe have been calling for corporations to enhance their sustainability goals to help mitigate global warming and lessen our society’s consumption of natural resources, while imposing stricter enforcement protocols to encourage compliance. From an industry perspective, chemical manufacturing companies seem to be at the forefront, folding sustainability strategies into their daily operations. According to a 2015 survey by Boston Consulting Group and MIT Sloan Management Review “on sustainability issues in a variety of industries, 85% of chemical companies reported having a sustainability strategy. That was more than any other industry covered, and a 70% increase from 2009.” This illustrates that the world at large, and the chemical industry in particular, is listening and answering this environmental call to action. 

As a leading global supplier of specialty chemicals, toll services, and custom manufacturing, Optima Chemical recognizes the importance of sustainability and is committed to finding ways to mitigate waste generation and incorporate strategies for sourcing eco-friendly materials from like-minded companies and partners. We remain focused on delivering what our clients want and need in this current environment – which is to minimize our footprint and maximize the quality of our products and services – and we know that a commitment to sustainability is the right thing to do to ensure our customers, and Optima Chemical, are here for the long term. 

That is why it we are very pleased to announce that Optima Chemical has been recognized for our commitment to corporate social responsibility (CSR), having recently received EcoVadis’ Silver Medal certification for sustainability across four categories: environment, labor practices, ethics, and sustainable procurement. This silver medal certification is only awarded to the top 25% of global companies assessed by EcoVadis, an international and independent ratings provider that evaluates corporate sustainability management system performance and provides tools to drive improvement among global supply chains. Adding to the excitement of receiving this sustainability designation by EcoVadis is the fact that it comes directly after Optima Chemical accepted the Silver Performance Improvement Award (PIA) from the Society of Chemical Manufactures & Affiliates (SOCMA), the leading trade association representing specialty and fine chemical manufacturers, for its outstanding efforts in improving environmental, health, safety, and security (EHS&S). 

In order to understand the importance of earning this sustainability certification for Optima Chemical, it is critical to first explain the rigorous evaluation process employed by EcoVadis. So, to put things in perspective, according to EcoVadis, “the objective of the EcoVadis methodology is to measure the quality of a company’s sustainability management system through its policies, actions and results. The assessment focuses on 21 sustainability criteria that are grouped into four main CRS themes: Environment, Labor & Human Rights, Ethics and Sustainable Procurement. These criteria are based on international sustainability standards such as the Ten Principles of the UN Global Compact, the International Labour Organization (ILO) conventions, the Global Reporting Initiative (GRI) standards, the ISO 26000 standard, the CERES Roadmap, and the UN Guiding Principles on Business and Human Rights, also known as the Ruggie Framework. These are evaluated with a survey tailored to a company’s country, sector, and size; by gathering public and stakeholder information, as well as an assessment of the company’s corporate policies. The company ensures and supports its answers to the questionnaire by formalized documents that reflect the company’s CSR management system.” 

Receiving the Silver Medal certification by EcoVadis marks an important step in Optima Chemical’s efforts to achieve global environmental benchmarks and illustrates our commitment to continually improve our sustainability processes based on the needs of our customers. At Optima Chemical, we set our standards high, which is why we have not had any violations relating to our permits in synthetic air emissions, hazardous waste handling, stormwater and wastewater discharge, and alcohol (ethanol) use for the past eight years, nor have we received adverse findings from the additional environmental audits that are carried out by many of Optima Chemical’s contract manufacturing customers. 

Ultimately, Optima Chemical believes that by investing in cutting-edge technologies and our people, we will be able to provide the environmentally focused products, brain power and skill sets that our eco-conscious customers have come to expect from us, both now and for future generations to come. We know at Optima Chemical that innovation, evaluation, and data management are important pillars for measuring sustainability, and certifications such as the EcoVadis Silver Medal will be instrumental in ensuring our sustainability goals are being met.  

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Optima Chemical Examines the History, Applications, and Benefits of Boronic Acids 

By Gene Williams, President of Optima Chemical

As a leading U.S. supplier of boronic acids, with more than 200 currently available, Optima Chemical is dedicated to manufacturing high quality boronic acids that will continue to meet the growing needs of our customers. This is because Optima Chemical has seen boronic acids evolve into one of the most important synthons in organic chemistry over the past three decades, since the formation of Optima Chemical in 1991. 

You might be wondering about the driving force behind this growing interest in boronic acids within the marketplace. Well, that answer is relatively simple: they are stable, easy to handle, have high melting points, and low inherent toxicity, which allow for a diverse range of applications. But before we get into the uses of boronic acids, it is important to first understand the history and transformation of the compound. First synthetized in 1860 by a British chemist named Edward Franklen, boronic acids were not popularized within synthetic chemistry until 1979, when Dr. Akira Suzuki introduced the Suzuki-Miyaura reaction, which coupled boronic acids with an organohalide catalyzed by a palladium(0) complex that unlocked the potential of this element. 

Like the scientific community at large, Optima Chemical marveled at the potential new uses for boronic acids using Suzuki coupling, due to its ability to bind with amino acids, sugars, and hydroxamic acids. According to a 2019 article in News Medical Life Sciences, which explains how the Suzuki coupling process works, it is stated that “the Suzuki-Miyaura reaction requires the addition of a base to activate the boron compounds. The base is involved with the formation of the palladium complex and trialkyl borate as well as accelerating the final elimination step.” The article goes on to say that “the reaction leads to the synthesis of biaryls, which are important compounds in many fields including industrial chemistry and pharmaceuticals.” 

At Optima Chemical, we know that Dr. Suzuki is a visionary whose work has changed the ecosystem of organic chemistry. In order to continue learning from his work, Optima Chemical invited Dr. Suzuki to tour the Optima Chemical plant in Douglas, GA, and meet with the Optima Chemical research staff to discuss the cross-coupling reactions of organoboron compounds. Almost a decade later in 2010, it was determined that Dr. Suzuki’s discovery of palladium-catalyzed cross couplings was so revolutionary that he and his fellow scientists, Richard F. Heck and Ei-ichi Negishi, were awarded the Nobel Prize in Chemistry. 

In terms of the applications and benefits of boronic acids in the broader commercial marketplace today, Optima Chemical has seen the compound studied and utilized in a wide range of pharmaceutical products – including anticancer drugs and antiviral medications – making it a key element in producing bio-active molecules for medicines. Additionally, some boronic acid derivatives have even been used as sensors in drug delivery systems. And, according to the 2019 in News Medical Life Sciences, boronic acids have been used in the assembly of advanced materials such as light-emitting polymers and have been helpful in producing polymers for electronic chip insulation and the compounds used in organic light emitting diodes. And finally, more recently, products resulting from Suzuki coupling could have significant roles in the new field of nanotechnology, utilizing organic materials with electronic, optical and mechanical properties. 

As one of the key players in specialty chemical manufacturing, Optima Chemical’s team of experienced chemists and engineers know how to make chemicals safely at scale, offering our customers full service abilities from laboratory, kilo lab and Pilot Plant to full scale-manufacturing. As the utilization of boronic acids continues to unfold, along with the advancements of science and technology, Optima Chemical will be on the forefront of delivering new solutions and products to our customers now and into the future. 

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2021 Chemical Industry Outlook: Q&A with Optima Chemical’s President, Gene Williams

By Mike Harrison, Business Development at Optima Chemical

2020 brought on unprecedented challenges for chemical companies due to the global pandemic but, according to the American Chemical Council (ACC), the industry is already in recovery mode in 2021. In fact, the specialty chemical market is expected to reach more than $530 billion by 2022, signifying a growth rate of approximately 6% from 2015 to 2022.

The ACC further indicated that opportunities could arise in production and manufacturing due to the shifting needs of customers in this new ecosystem, such as new demand for personal protection equipment, consumer spending on home improvement products, more demand for specialty chemicals as the vaccine continues to roll out, and the increased opportunities from onshoring activities. To get a better handle on some of the trends occurring across the chemical landscape, I sat down with Optima Chemical’s President, Gene Williams, to get his thoughts on what’s ahead for Optima Chemical and the industry at large in 2021.

Q. It goes without saying that 2020 was a difficult year for most global businesses due to Covid-19. Can you speak to any of the challenges that the chemical industry faced and some of the ways companies like Optima Chemical were able to overcome these obstacles?

A. First, thank you for sitting down with me today to discuss the state of our industry. I believe we are at an inflection point right now where there are some good opportunities for growth, and I remain excited about what’s ahead in 2021.

To answer your question, and to reiterate some of what I mentioned in my “2020 Employee Appreciation Address” I gave late last year, 2020 has been a difficult year from just about every aspect of life. We know some people on our Optima Chemical team have suffered losses, and our thoughts and prayers go out to them and their families during this difficult time. As a business, Optima Chemical has also been impacted by Covid-19, as some of our customers did not have the success that they would have hoped for in 2020, which directly affected us. But in spite of it all, we consider ourselves blessed because we have managed to get through the year without furloughs or layoffs, and many customers have decided to stick with us during this period of time.

In terms of challenges the industry faced, some customers were forced to shut down manufacturing operations due to the pandemic, and demand for some chemicals declined due to shifting priorities among end-user industries like electronic, automotive, and construction. Additionally, we saw some pricing pressures and trade uncertainty due to some of the geopolitical issues in play at the time. However, companies like Optima Chemical rose to the challenges presented by the pandemic by sitting down with our customers to better understand what their immediate needs are in this shifting landscape, and focused on accommodating those needs in every way we could. Ultimately, we remain very optimistic about 2021, with several exciting projects taking place on the horizon.

Q. You mentioned that you are bullish about 2021. Can you elaborate on what exactly Optima Chemical has in the works over the next 12 months?

A. Yes, we have two projects lined up that we are especially excited about. The first is the development of a new catalyst to be commercially engaged, and the second is the development of a novel material that has application in a next generation energy storage. Both projects were slowed by Covid-19 travel and collaboration restrictions in 2020 but have now progressed to move forward in 2021.

These projects and others scheduled for 2021 will not only manifest in business opportunities but also result in increased capacity in several key unit operations, including reactor capability and solids separation. 

Q. Thanks, Gene. It sounds like there are some exciting opportunities coming down the pike for Optima Chemical. Before we close the discussion, I was just wondering if you might be able to share where you see Optima Chemical in the next 4-5 years in terms of growth?

A. While I don’t know what the future holds, I do know that Optima Chemical is, and has always been, razor focused on ensuring that we provide our customers with the excellent service that they have come to expect year-in and year-out, despite any hurdles that might crop up along the way. This ethos is seen across every level of our organization, and it has been a key to Optima Chemical’s growth strategy since our inception.

Another area of growth for us has been in R&D, having grown from a company that offered a single product 30 years ago to the full-service chemical company that we are today, with an array of products and service offerings that meet the changing needs of our customer base now and into the future. More specifically, we are very interested in energy storage markets and applications because we believe that our experience and expertise make us particularly well suited to participate in opportunities that crop up in this exciting space. Of course, speed from an idea/concept to a viable commercial process is becoming more and more critical in this fast-changing environment, which has always been one of our strengths at Optima Chemical. We continue to seek new ways to help our customers be successful, and that desire to find solutions for difficult and challenging applications will continue to drive growth for us over the next 4-5 years.

Finally, Optima Chemical has made significant capital investments in our infrastructure over the years, which have helped us grow, including the addition of a new state-of-the-art headquarters in 2019, which increased efficiencies and collaboration among our employees, and investments in our plants. We are always looking for ways to better support the needs of our employees and our customers, and we know through experience that investing in our facilities and workforce will help to drive growth.

Optima Chemical Reflects on the Importance and Power of Giving Back to Your Local Community

By Gene Williams, President of Optima Chemical

The beginning of each new year offers our society the unique opportunity for reflection, introspection, and change. We all take the time to digest what has happened over the past 12 months and resolve to improve the ways we conduct ourselves personally and professionally in the year ahead. We set ourselves new goals and review our engagement with the people in our community, whether they be strangers, colleagues, family, or friends.

At Optima Chemical, one of our proudest achievements, and a core tenet of our company, is our dedication and ability to give back to the local communities in Douglas and Coffee County, especially when it comes to bettering the lives of children and students in the region. This is evident This is evident in our partnerships with charitable organizations like the Academic Booster Club of Coffee County, which aims to promote, support, recognize, and reward academic excellence within public schools. We also work with the South Georgia State College Foundation, which was created in 1971 to help to transform the lives of the school’s diverse student population by providing educational opportunities, financial support, and advocacy for its students.  Additionally, Optima Chemical donates annually to other similarly focused charities in the area including Night to Shine, Boy Scouts of America, Coffee County Board of Education, Douglas Exchange Club, James M. Dye Foundation, Technology Student Association, and the STEAM Program, all of which are instrumental in helping to shape youngsters into future leaders.

Optima Chemical’s collaboration with each of these associations is very personal to us because we live, work and raise our families here in Coffee County and are dedicated to the community’s success and enrichment. Optima Chemical is dedicated to enabling the success of young people through academic achievement and helping people access necessary healthcare services in and around our community. Two particular points of pride for Optima Chemical’s faithfulness in these endeavors is our work with the Coffee Regional Medical Center (CRMC) Hospital Foundation, and the Boys & Girls Club, which Optima Chemical helped establish in 2013.

The stated purpose of the CRMC Hospital Foundation is to enhance CRMC’s impact on healthcare services to patients and families in Coffee and surrounding counties, now and for future generations. It strives to help provide life-saving tools like 3D Mammography Technology, which screens and detects breast cancer, as well as the Oncology Center, which offers all of South Georgia access to the treatment of adult malignancies – ranging from lung, colon, and breast cancers, to lymphomas, leukemias, and sarcomas – and a full spectrum of cancer care, including immunotherapy, targeted therapy, and chemotherapy. These services would not be possible without community support and Optima Chemical is honored to be a part of such a critical and noble cause.

The mission of the Boys & Girls Club is to “enable all young people, especially those who need us most, to reach their full potential as productive, caring, responsible citizens,” which it carries out by providing a series of programs that help to shape the lives of those who participate in the program. Optima Chemical recognized that this was a program that provided local kids with a safe environment and dedicated, caring mentors who could help them realize their full potential. After careful planning, Optima Chemical helped create a local chapter of this foundational and instrumental organization eight years ago. We began by donating $10,000 per year for the next three years to assist with needed funding to form and operate the club. Since then, Optima Chemical’s continued financial contributions have helped capitalize on important programs like the Lights On After School Program, which provides much-needed meals, learning experiences, and new skills to at-risk-children. Optima Chemical has also been involved in financing critical fundraiser events such as Dancing with the Stars, Kickin’ It for the Kids, and Casino Night.

There is no doubt that the formation of the Boys & Girls Club has positively impacted the lives of many young people in our area, creating an outlet for them to positively engage with education and improve their academic performance. In fact, 97% of club teens expect to graduate from high school; 88% expect to complete a form of post-secondary education; 57% say the club saved their lives, and 81% agree that the club helped them to develop a sense of responsibility and a desire to give back to their community.

Optima Chemical’s commitment to supporting local charitable organizations has been in place since our company’s inception in 1991 and continues to expand with each passing new year. As 2021 continues to unfold, we at Optima Chemical are extremely proud to contribute and serve these highly beneficial and respectable groups and look forward to new opportunities to help improve the lives of people in our community well into the future.