1. Introduction
Pierre Lyot – an engineer from the École Nationale de Chimie de Montpellier, specializing in Macromolecular Chemistry – has spent 23 years of his professional life with the SNF SAS group, developing polymerization processes and formulations for water-soluble polymers for applications ranging from Textiles to Cosmetics and Detergents, via Oil & Gas, Paper and Wastewater and Drinking Water Treatment. Developing new products for all types of applications, bringing production innovations from France to the United States or India via China or Australia, solving local problems and optimizing production tools while meeting customers’ needs have been his daily lot. Managing his R&D teams in France, working in collaboration with local R&D centers and seeking out the best partners have enabled him to grasp the international challenges facing the chemical industry today and in the future. Here, he shares his thoughts on innovation and chemistry in France and around the world.
2. How to innovate and produce in chemistry?
Innovation lies at the very heart of chemistry, and it is this innovation that enables us to offer new solutions in every area of modern life. From agriculture and paper to energy and medicines, chemistry is all around us. But after years of unchecked progress, times have changed. The town of Seveso in Italy paid a high price for the absence of regulation, and was a first step on the road to safety for chemical installations and operators. Accidents at the AZF site in Toulouse, and more recently at Lubrizol in Rouen, demonstrate the urgent need for strong supervision of your processes and procedures, both for you and for your service providers. Regulations, certifications and laws are at the very heart of the innovation process. Today, the best idea in the world cannot be taken to the local and international industrial level without understanding from the outset the constraints and implications in the short, medium and long term. All projects must now be approached with a global vision capable of encompassing safety, regulatory, cultural, strategic and financial components, without of course leaving out science and technology, and even less so the issues of intellectual property and industrial secrecy.
3. Good advice and support are essential.
REACH regulations in Europe, TSCA in the United States, AICS in Australia, etc., which apply to your chemical products and sometimes to your raw materials, can be seen as a brake on innovation. But when you master them, these constraints become precious allies that will protect you from the competition and enable you to set up your network of customers and distributors. As is often the case, any patents you may generate will be your first line of protection. But they will be bolstered by local regulations that will keep you one step ahead of many of your competitors, who will be slow to obtain production and marketing authorizations. What’s more, you’ll be able to consolidate your leading position by being warned in advance of any new product registrations, and therefore of any potential new competitors. The supply of raw materials, which seems to be less and less of a problem in the age of globalization, is once again becoming a key factor in any long-term production strategy, due to the protectionism of the United States and other countries following in its footsteps. Knowing how to forge partnerships locally or abroad can also give you the strategic boost you need to generate the margins you need. Knowing your partners’ synthesis processes is also a plus, as it gives you access to the technical and financial limits of your projects. Even high value-added products can’t do without fine-tuning R&D and production costs.
4. Multiply partnerships and sources of supply…
…and be ready to produce in degraded conditions. COVID 19, climate change, changes in legislation, the strategic choices of major groups and your partners, the publication of new standards and regulations are all shocks capable of jeopardizing your projects. If you want to avoid falling victim to a force majeure problem, building a broad, structured network will enable you to get out of crisis situations. And, who knows, the disruptive element capable of redefining the new rules of the market could end up being you.
5. Diversify your production sites…
…can be absolutely crucial to your success. Potential logistical problems are present in both the supply of raw materials and the transport of finished products. Short supply chains are becoming more and more common, and producing as close as possible to your customers can be a necessity. Internal and external partnerships need to be forged, and the transmission of formulations from one production site to another, taking into account local operating conditions and process differences, becomes crucial. You’ll need support staff capable of transmitting and adapting information and methods. Adaptability and flexibility will be the watchwords of formulation transfers. In all cases, knowledge of cultures outside the European community will be key to your commercial success. Understanding the different cultures you work with is not so simple, but it will open many doors for you. You won’t negotiate with your Chinese partners in the same way as you would with your Indian or American partners. These cultural and societal differences are real, and can only be understood through several years’ experience in foreign countries.
6. Know how to talk to teams on site…
…transmitting decisive information in an intelligible and comprehensible way, understanding sensitivities and integrating the fact that time does not necessarily have the same value throughout the world, translating the needs of internal or external customers for your employees, learning to compose and make the best use of available resources – these are the things that an experienced manager must now be able to achieve. ISO 9000 and 14000 standards, good manufacturing practices, and the safety of personnel and facilities are all part of our daily routine. But they are only the tip of the iceberg. Continuous improvement of your processes and of your entire structure must take place at all levels and involve all your staff.
7. Your various departments must be able to work in synergy.
This is the only way you’ll be able to achieve energy savings in production, reduce pollutant discharges, and substitute raw materials with bio-sourced and/or less toxic compounds that are more respectful of the environment. In addition to the competitive gains you’ll make, you’ll be proving that the chemical industry is now just as mature and responsible as many other so-called clean industries. Of course, you can, and indeed should, take advantage of local incentives linked to your R&D activity. The French Research Tax Credit (Crédit Impôt Recherche – CIR) is a very important source of tax reduction capable of making your research more competitive. Taking the time to structure your R&D strategy and departments so as to meet 100% of the formalities required for the drafting of your CIR, listing the pilot equipment that is eligible for the CIR, and working with CIR-approved institutes and partners will enable you to drastically reduce the cost of your R&D. And what applies to France often also applies to other countries where your R&D may also be present. The procedures for obtaining tax credits differ and may be linked to your publications and patent registrations, as in China for example. But the gains are such that you absolutely must be ready to invest if need be in an entity capable of meeting local demands.
8. Information – whether technical, legal or financial – is available to a degree never before achieved by the human race…
…but it’s also this profusion of patents, articles, publications, press releases, books and training courses that ends up blurring the message and the goals to be achieved. Only a spirit of synthesis can enable you to find your way in the profusion of data that surrounds us. More than ever, time has become our most precious resource. If you can’t react quickly enough, others will innovate for you. They’ll be able to draw on what already exists, on well-known chemical processes and applications, to imagine the innovations of tomorrow. This blend of experience and outside perspective – the famous “distance” – is also one of the keys to success. They didn’t know it was impossible, so they did it… a well-known adage. But when it comes to chemistry, I’d say anything is possible, because human inventiveness knows no bounds. The frontiers of the possible are not creativity or even technology, but the desires and receptivity of the target market. The right product at the right cost at the right time. Triple equation, triple challenge. There’s no secret to bringing your chemical innovations to fruition: just common sense, motivated teams, solid upstream and downstream partners, a clear short- and medium-term strategic vision, mastery of the technical aspects of your products and processes, in-depth knowledge of your target market, and the ability to support your internal and external customers. Innovation in chemistry is more possible than ever, provided you have the necessary skills available. Knowing how to surround yourself with the right specialists who can accompany you on your path to innovation will enable you to move forward more quickly and more serenely, and avoid the pitfalls and traps that are bound to arise. The challenge of innovation in chemistry is still very real, but the tools to transcend it are available.
P. LYOT