- Previous Article
- Next Article
- Table of Contents
Chemical Engineering & Technology, Vol.27, No.7, 713-721, 2004
Business models in fine chemical engineering
Chemistry and pharmaceutical companies are increasingly awarding assignments for plant planning and construction to external engineering service providers. Both national and international companies with various business models are active in this growth market. A number of variously oriented engineering companies have specialized in the specific demands of planning plants for the production of fine chemicals and active ingredients for pharmaceuticals. Customers as well as the service-providers themselves ask which companies or company models meet customer needs best in this segment. Which assignment form is the most efficient? Is it an award to a general contractor, possibly with a lump-sum turnkey assignment? Or is the customer better off with individual planning assignments? A study with focus on the Central European fine chemical and pharmaceutical industries shows: there is no standardized engineering solution. Each business model has specific advantages and disadvantages; as a result, the partners must design their individual model. The respective contract form depends on many components - on product, time and cost pressure and, last not least, on the customer's remaining engineering competence.