Almatis relies on regional production to counter growing volatility
by Dagmar Dieterle-Witte
Energy prices, supply chains and fluctuating demand are increasing the pressure on the industry. Chuck Compson explains why Almatis relies on a decentralised production network.
Past years have also transformed the markets for refractory and ceramic products. According to Almatis, fluctuations in demand, energy and logistics are now occurring more frequently. Chuck Compson sees the company’s globally distributed production network as an asset.
marketsteel: Mr Compson, the past few years have been characterised by volatile markets, energy price shocks and supply chain issues. How is Almatis dealing with this?
Chuck Compson: Volatility is now a more regular and frequent occurrence. This affects demand as well as logistics, supply chains and energy. One advantage for us is that we have a presence in various regions around the world through smaller production sites. If a particular region is affected by specific problems, this impacts us less severely than it would with a highly centralised production model.
marketsteel: Does that also mean producing more specifically for the respective regional market?
Compson: Our supply chains are largely geared towards customers in the respective region. Of course, we are not entirely independent of global developments either. But with a more regionalised structure, we can better limit the impact and respond more flexibly.
marketsteel: Which factors will be particularly important for future decisions on where to locate?
Compson: Above all, energy and water. Both are becoming increasingly critical factors for production and can have a very direct impact on operations and business development. That is why, when making future investments, we must carefully consider where we grow and to what extent we need to have a local presence.
Photos: marketSTEEL