Catalyst supply breakthrough

(2001-07-05) The ICI company Synetix is to become Hydro Agri's preferred supplier of catalysts for ammonia production. The two companies have entered into a three-year contract worth NOK 150 million.

The catalysts are used in a critical phase in the production of ammonia from natural gas. For Hydro's ammonia plants, which every year use gas worth several hundred million kroner, the catalysts represent a relatively small but crucial expense. Poor catalysts detract significantly from the efficiency of the production plants.

The contract involves both Hydro Agri's support functions and technical milieux at the production sites.
 
"The keywords quality, price and reliability best describe the right procurement policy. This contract is a good example of theory being put into practice. Our requirements regarding quality and reliability were already being met - now we have achieved a more rational supply arrangement and an improved price," explains vice president David Carnes of Hydro Agri Operational & Business Support.

Efforts to achieve a coordination so that the Synetix catalysts can be used in nearly all phases of the process have been demanding, but they have continued unaffected by the organizational changes undertaken by Hydro over the past two or three years. Carnes adds that the technical units deserve a lot of praise for their efforts.

Norbert Van Daele, director supply management at Hydro Agri purchasing, has played a major role in the negotiations. He explains that it has been Hydro Agri's intention to build a long-term relationship allowing the parties to collaborate in order to improve the use of the catalysts. The contract includes a renewal option.

"Catalysts are now our most important business area. Although ICI no longer produces mineral fertilizer, we have maintained our technological expertise in this area. This is possible by, for example, working closely together with our customers in their plants. We assist both in maintenance and in making improvements to the production process. We also take back used catalysts and recycle the materials. It goes without saying that we shall make sure the contract is renewed, " says Bill R. Bell, Vice President, Ammonia and Methanol, of the ICI subsidiary Synetix.