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Regulatory expert for relocation of market-leading chemical plant in Germany

relocation of chemical plant

The situation

When the German subsidiary of a British chemical manufacturing company was forced to relocate, IXPA’s partner in Germany, IMS Interim Management Solutions, was called in to help find a new site for the plant and manage the regulatory and logistical challenges involved in moving the entire production facility to new premises.

The company is a market leader in its field, carrying out a highly specialized manufacturing process. It outputs 80 tons of a very specialized product a year, which forms an important input factor of many other global chemical goods. The factory had been in its original location for 40 years and employed 200. As residential development pushed ever closer to its boundaries, the authorities demanded the relocation of the plant to a less populated area.

The solution

Our German partner IMS recognized the potential challenges involved in moving production to a new site and securing the regulatory approvals required to start chemical manufacturing somewhere else. IMS also saw opportunities for a new purpose built modern plant with the potential to improve efficiency. An interim executive was sourced with significant practical knowledge of the regulatory issues involved. The interim plant director appointed to the role had been a managing director in the chemical industry for 20 years and understood the legislative demands of the sector. Moreover, important enough, he could speak in the right tonality to the authorities involved.

A new site with potential for expansion was found in an unpopulated area 15 miles from the original and the interim plant director used his extensive experience to negotiate with the authorities on compliance. He was able to secure all the necessary approvals and as a result of his diligence the company was ready to move production within nine months of securing the new site.

A smooth transition was key to the successful relocation and continuity of the business. The interim plant director planned and oversaw the transfer of machinery from the old site to the new one, including the movement of highly specialized equipment.  Service levels to customers were safeguarded throughout.

The outcomes

Within 12 months this strategically important chemical manufacturing site had been fully relocated to a brand new factory and site. There was no disruption to production or supply at any point and the new site is modern with more automation than the former premises. The project was delivered on time and within budget and the plant has been designed to deliver ongoing cost savings through improved efficiencies.