WEBVTT NOTE This file was generated by Descript 00:00:01.000 --> 00:00:05.224 Victoria: the reality is when we look across the chemical industry We 00:00:05.245 --> 00:00:08.875 operate in global chemical markets, global chemical and energy markets, 00:00:08.874 --> 00:00:12.425 Patty: when it comes down to the selling process, it's more than just the words. 00:00:12.525 --> 00:00:17.084 There's a deeper level of connection that you're trying to reach that level 00:00:17.084 --> 00:00:18.985 of understanding the pain points. 00:00:19.504 --> 00:00:23.814 It has to be a win win, and it's easier to get to that win win in the local 00:00:23.814 --> 00:00:26.484 language with that level of trust. 00:00:26.553 --> 00:00:28.623 Natural gas is the clean fuel. 00:00:28.843 --> 00:00:30.313 It is the bridging strategy. 00:00:30.563 --> 00:00:32.423 Everyone can say it's going to be wonderful. 00:00:32.423 --> 00:00:37.163 And in 5 10 years, we're going to move massively away from hydrocarbons. 00:00:37.213 --> 00:00:39.213 But the reality is some of those technologies. 00:00:39.528 --> 00:00:41.468 May not be ready and 00:00:41.538 --> 00:00:44.958 natural gas is a cleaner fuel, a cleaner option than coal. 00:00:45.188 --> 00:00:48.748 Victoria: Control the things you can control and currency is not one of them. 00:00:50.788 --> 00:00:53.588 A key component of the modern world economy, the chemical 00:00:53.588 --> 00:00:57.028 industry delivers products and innovations to enhance everyday life. 00:00:57.648 --> 00:01:01.638 It is also an industry in transformation, where chemical executives and 00:01:01.638 --> 00:01:05.268 workers are delivering growth and industry changing advancements while 00:01:05.268 --> 00:01:09.008 responding to pressures from investors, regulators, and public opinion. 00:01:09.558 --> 00:01:12.498 Discover how leading companies are approaching these challenges 00:01:12.508 --> 00:01:14.078 here on The Chemical Show. 00:01:14.568 --> 00:01:16.828 Here's your host, Victoria Meyer. 00:01:18.818 --> 00:01:20.338 Victoria: Hi, this is Victoria Meyer. 00:01:20.448 --> 00:01:23.858 Welcome back to The Chemical Show, Where Chemicals Means Business. 00:01:24.278 --> 00:01:27.258 Today, I am speaking with Patty Summers, who is the Global 00:01:27.258 --> 00:01:29.248 Business Director at Zeochem. 00:01:29.758 --> 00:01:30.948 Patty's been on the show before. 00:01:30.948 --> 00:01:32.978 We will link to her prior episode. 00:01:33.028 --> 00:01:36.848 Today our theme is around managing globally and how chemical companies 00:01:36.878 --> 00:01:41.958 and many of whom have very diverse operations Have to manage globally. 00:01:42.008 --> 00:01:44.208 Patty Welcome back to The Chemical Show. 00:01:45.049 --> 00:01:45.799 Patty: Thank you, Victoria. 00:01:45.799 --> 00:01:47.009 It's a pleasure to be back. 00:01:47.238 --> 00:01:48.208 Victoria: Well, thanks for being here. 00:01:48.408 --> 00:01:53.398 So let's just start with a brief Introduction to you and to Zeochem. 00:01:53.418 --> 00:01:56.358 Tell us who you are and tell us about Zeochem. 00:01:56.888 --> 00:01:57.288 Patty: Yes. 00:01:57.288 --> 00:02:01.309 So Zeochem is a very old Swiss based company, and one of our product 00:02:01.309 --> 00:02:05.839 lines is molecular sieves, which we manufacture across the globe, um, in 00:02:05.889 --> 00:02:09.049 Europe, uh, China, and here in the U. 00:02:09.049 --> 00:02:09.199 S. 00:02:09.634 --> 00:02:14.094 And so we are a company that sells into a lot of diverse markets. 00:02:14.314 --> 00:02:16.144 My role is chemicals and energy. 00:02:16.374 --> 00:02:20.624 So I spent a lot of time in the natural gas treating markets, uh, 00:02:20.673 --> 00:02:22.684 little bit of petrochemicals refining. 00:02:22.694 --> 00:02:26.234 It's those kinds of applications that are project based that use molecular 00:02:26.234 --> 00:02:30.074 sieves to do purification steps for the materials that go downstream. 00:02:30.414 --> 00:02:32.884 So I've been at Zeochem about seven years now. 00:02:34.179 --> 00:02:36.909 But I've been in the molecular sieve industry for decades, going back 00:02:36.909 --> 00:02:42.039 to initially starting, um, at Union Carbide, the, that became part of UOP 00:02:42.059 --> 00:02:44.509 and now it's wholly owned by Honeywell. 00:02:44.929 --> 00:02:45.399 So, 00:02:45.599 --> 00:02:47.029 I had over 20 years with them. 00:02:47.149 --> 00:02:51.099 I took a short break from molecular sieves and joined Endress Hauser, where I did 00:02:51.099 --> 00:02:56.119 a little bit of, um, analyzers, managing that group and finding applications there. 00:02:56.709 --> 00:02:59.349 around the globe for their products, which typically were 00:02:59.349 --> 00:03:01.709 downstream of molecular sieves. 00:03:01.719 --> 00:03:04.719 So there was a great fit there in terms of the marketplace. 00:03:04.909 --> 00:03:08.779 However, it got back to my roots, um, in molecular sieves by joining, 00:03:08.839 --> 00:03:10.839 um, Zeochem about seven years ago. 00:03:11.018 --> 00:03:11.398 Victoria: awesome. 00:03:11.448 --> 00:03:15.128 I love it Well, you know, so we started talking about this and I thought 00:03:15.148 --> 00:03:18.188 it was just such a great and timely conversation for us to have Right. 00:03:18.188 --> 00:03:23.613 So the reality is when we look across the chemical industry We operate 00:03:23.613 --> 00:03:27.023 in global chemical markets, global chemical and energy markets, right? 00:03:27.023 --> 00:03:30.873 Cause you, your company branches into some broader territory. 00:03:31.233 --> 00:03:35.033 Um, and yet within the global market, there are also 00:03:35.033 --> 00:03:36.763 significant regional differences. 00:03:37.093 --> 00:03:40.843 Um, and many companies, smaller companies such as Zeochem and really 00:03:40.863 --> 00:03:44.093 80 percent of the chemical industry, I categorize in the small to midsize. 00:03:44.593 --> 00:03:49.603 There's a lot of partnership, um, and diversity that takes place 00:03:49.623 --> 00:03:53.973 when they look at managing global businesses and global supply chains. 00:03:54.253 --> 00:03:57.693 So, you know, what we're seeing today, of course, as people know, in the broadest 00:03:57.703 --> 00:04:01.623 sense, we're seeing significant oversupply across many products and markets. 00:04:02.043 --> 00:04:06.303 With some moderation of demand, yet continued new build and 00:04:06.303 --> 00:04:10.233 developing regions in China, for the most part, the view is that U. 00:04:10.233 --> 00:04:10.383 S. 00:04:10.413 --> 00:04:13.773 markets are fairly strong, although we've seen some weakness, maybe in 00:04:13.773 --> 00:04:18.733 the second half of 24, but generally seen as a robust and resilient market. 00:04:19.063 --> 00:04:25.113 On the other hand, Europe sees continued challenges right on a cost basis and 00:04:25.183 --> 00:04:29.783 energy basis perspective and then some, some weakening of demand and 00:04:29.783 --> 00:04:34.453 then, you know, Middle East influenced by Europe and also by Asia and then 00:04:34.483 --> 00:04:36.513 Asia, of course, is dominated by China. 00:04:37.583 --> 00:04:40.083 Heavily heavy growth in the future growth. 00:04:40.083 --> 00:04:44.043 I know coming from India, which is where you've recently been. 00:04:44.073 --> 00:04:49.663 So seeing significant effects of tariffs, particularly in China, and that effect, 00:04:49.723 --> 00:04:55.983 um, supply chain issues and more so bottom line is, you know, this and I know this, 00:04:56.053 --> 00:05:01.568 the role of a global chemical executive is always interesting and Ever challenging. 00:05:01.798 --> 00:05:05.548 So I know that you just recently returned from a trip, trip to India, Dubai. 00:05:05.558 --> 00:05:09.218 And so thought it was really timely to get some of those recent perspectives, 00:05:09.608 --> 00:05:15.488 particularly about doing business, um, and how they are seeing the 00:05:15.488 --> 00:05:21.528 global marketplace, but also how you as a US based global executive 00:05:21.688 --> 00:05:25.878 work with partners, um, in India, in the Middle East and elsewhere. 00:05:26.804 --> 00:05:27.314 Patty: Yes. 00:05:27.394 --> 00:05:28.274 Well, that's a mouthful. 00:05:28.698 --> 00:05:29.628 Victoria: It is a mouthful. 00:05:29.898 --> 00:05:30.228 It is a 00:05:30.514 --> 00:05:33.654 Patty: Let me just start by saying, you know, having partnerships is 00:05:33.714 --> 00:05:37.444 absolutely key and it goes everywhere around the globe, but you're right 00:05:37.484 --> 00:05:41.964 at who we choose and how we choose to interact will change by the region. 00:05:42.424 --> 00:05:44.774 Um, and our products are used. 00:05:45.754 --> 00:05:50.304 With other technologies that we don't necessarily have in our portfolio. 00:05:50.544 --> 00:05:55.244 So first and foremost, it's important to partner with people who have complimentary 00:05:55.264 --> 00:05:59.354 products so that their sales activities and their interactions with the customers. 00:05:59.869 --> 00:06:04.558 are not solely dependent on when these customers may need molecular sieves or 00:06:04.559 --> 00:06:07.069 not because our sieves have a long life. 00:06:07.439 --> 00:06:10.699 So they're, they're loaded into these large vessels, they're used 00:06:10.719 --> 00:06:14.899 and they're regenerated and their life can be anywhere from four years 00:06:14.899 --> 00:06:19.729 to over 10 years, depending on how it's used, what applications and 00:06:19.729 --> 00:06:21.749 how frequently it's regenerated. 00:06:22.079 --> 00:06:26.069 So we need customers and we actually need distributors. 00:06:26.399 --> 00:06:29.679 that will be interacting with our customers in between all that. 00:06:29.709 --> 00:06:29.889 So 00:06:29.889 --> 00:06:33.569 they know when the customers need help, when they need molecular sieves. 00:06:34.069 --> 00:06:37.109 Uh, so that helps us a lot 00:06:37.333 --> 00:06:37.573 Victoria: Yeah. 00:06:37.573 --> 00:06:37.903 And 00:06:38.009 --> 00:06:39.103 Patty: increasing heart spread. 00:06:39.403 --> 00:06:39.643 Victoria: yeah. 00:06:39.643 --> 00:06:40.333 And that's true. 00:06:40.333 --> 00:06:45.573 I think for you guys across the globe, leaning into distributor relationships 00:06:45.573 --> 00:06:49.943 as a way of expanding your reach and expanding your touch points. 00:06:50.589 --> 00:06:51.119 Patty: Yes. 00:06:51.169 --> 00:06:51.539 Yes. 00:06:51.759 --> 00:06:53.779 Now you talk about the different regions. 00:06:53.789 --> 00:06:56.809 In some places we act as, we want agents. 00:06:57.359 --> 00:07:00.259 And they'll help line up the sale and we give them a percentage, 00:07:00.259 --> 00:07:01.259 you know, commission based. 00:07:01.599 --> 00:07:04.859 Um, but in other areas like the Middle East in country value is 00:07:04.859 --> 00:07:09.349 becoming more and more prevalent as a key part of the decision process of 00:07:09.453 --> 00:07:10.579 those purchasing agents. 00:07:10.889 --> 00:07:14.029 And what that means is that they're giving preferential. 00:07:14.654 --> 00:07:18.684 Uh, treatment to those companies that have invested in that country 00:07:18.694 --> 00:07:24.324 in Saudi Arabia or in Qatar so that they have stock, they have employees, 00:07:24.674 --> 00:07:28.084 they might even have blending facilities, repackaging or testing or 00:07:28.084 --> 00:07:30.174 even some other light manufacturing. 00:07:30.514 --> 00:07:32.474 So that has become a key element. 00:07:32.744 --> 00:07:35.774 And that has a lot to do with who you choose to partner with, with 00:07:35.774 --> 00:07:40.334 what kind of strength they have in that value as the scoring during 00:07:40.334 --> 00:07:42.194 those purchasing um, processes. 00:07:43.109 --> 00:07:45.749 And we've seen that increase over time. 00:07:46.188 --> 00:07:46.538 Victoria: Yeah. 00:07:46.548 --> 00:07:47.298 I, it makes sense. 00:07:47.328 --> 00:07:47.648 Okay. 00:07:47.648 --> 00:07:51.688 So let me just, just do a little decoder ring action here. 00:07:51.908 --> 00:07:55.548 So how do you differentiate between an agent and a distributor for 00:07:55.548 --> 00:07:57.108 those that maybe aren't as familiar 00:07:57.149 --> 00:07:57.489 Patty: Yeah, 00:07:57.929 --> 00:08:01.099 a distributor will actually purchase the material and take possession. 00:08:01.778 --> 00:08:02.158 Victoria: Okay. 00:08:02.228 --> 00:08:06.148 Whereas the agent acts as a selling, a sales agent on your behalf. 00:08:06.479 --> 00:08:12.299 Patty: So in, if we have an agent, we are directly, our, our order is with the end 00:08:12.299 --> 00:08:17.749 user and they are paying us and we pay for the service, the sales help and the 00:08:17.749 --> 00:08:19.739 assistance that we had from our agent. 00:08:20.079 --> 00:08:24.499 So you're, you're paying them for a service rather than a distributor 00:08:24.499 --> 00:08:26.129 will be buying the material. 00:08:26.429 --> 00:08:29.778 Victoria: So, yeah, I mean, so you maybe touched on this then, you know, 00:08:29.778 --> 00:08:33.558 so when you think about this, you know, how do these, how do cultural 00:08:33.578 --> 00:08:37.688 and business practices, particularly in India, and as we look at the Middle 00:08:37.688 --> 00:08:43.198 East impact your approach, how does it change your approach to customer 00:08:43.198 --> 00:08:44.908 engagement and to partnerships? 00:08:46.239 --> 00:08:48.069 Patty: so it varies quite a bit. 00:08:48.349 --> 00:08:54.249 Um, I know in India, we, for the most part are focused in on the ethanol market. 00:08:54.259 --> 00:08:57.959 So this is the dehydration step that allows the ethanol to be blended with 00:08:57.959 --> 00:09:01.869 the gasoline pool for transportation. 00:09:02.679 --> 00:09:07.019 So it's an important sustainability step for the Indian folks. 00:09:07.049 --> 00:09:10.249 And the government, Modi has taken the lead and said he has, 00:09:10.634 --> 00:09:15.014 This goal of having a 20% blend right into their gasoline pool. 00:09:15.434 --> 00:09:16.484 Um, they're, yes. 00:09:16.634 --> 00:09:17.204 So it's quite 00:09:17.218 --> 00:09:17.818 Victoria: That's big. 00:09:17.834 --> 00:09:18.224 Patty: think it's 00:09:18.284 --> 00:09:18.898 20% 00:09:18.944 --> 00:09:20.854 by 2025 even. 00:09:20.854 --> 00:09:22.054 So by the end of next year. 00:09:22.374 --> 00:09:25.884 But they're only currently at 11 or 12%. 00:09:26.174 --> 00:09:26.804 So they still 00:09:26.804 --> 00:09:30.404 have some growth to go in terms of building new plants and getting the 00:09:30.404 --> 00:09:34.994 production settled in the marketplace to supply all this increasing demand. 00:09:35.354 --> 00:09:39.134 Um, and as such, the structure is that the government. 00:09:39.504 --> 00:09:41.724 We'll determine how many plants are to be built. 00:09:42.074 --> 00:09:48.304 They will then tell the banks that they need to fund a certain number of plants. 00:09:48.804 --> 00:09:53.144 And then the engineering firms will be getting distributions from those 00:09:53.154 --> 00:09:54.794 banks according to a schedule. 00:09:55.024 --> 00:09:58.684 So when it comes to doing those initial fills of our molecular silks into those 00:09:58.694 --> 00:10:02.234 plants, it's highly dependent on the cash flow that comes from the government. 00:10:02.934 --> 00:10:08.854 So we, we have open orders, they slip in terms of, um, when 00:10:08.854 --> 00:10:10.074 they're going to ship Because 00:10:10.074 --> 00:10:13.054 in India, you know, getting payment is more challenging 00:10:13.054 --> 00:10:14.114 than other parts of the world. 00:10:14.114 --> 00:10:17.074 So not a lot of credit that's offered in those markets. 00:10:17.394 --> 00:10:20.054 And, um, we rely on prepayment. 00:10:20.184 --> 00:10:23.174 And again, the flow goes back to the government and the banks, and 00:10:23.174 --> 00:10:24.914 it's all about the money flow. 00:10:25.174 --> 00:10:28.134 So that's a different element that we don't really take into account. 00:10:28.304 --> 00:10:31.204 account fully in other regions necessarily. 00:10:31.414 --> 00:10:33.394 Not that we don't have prepay accounts around the globe. 00:10:34.304 --> 00:10:35.314 I mean, everybody does. 00:10:35.314 --> 00:10:38.034 Everyone's in different financial situations, but for the ethanol 00:10:38.034 --> 00:10:44.394 market in India where we participate there, it dictates a lot of the timing 00:10:44.918 --> 00:10:49.638 Victoria: it's so project dependent and tied to the government objectives 00:10:49.638 --> 00:10:51.568 and government fundings and priorities. 00:10:52.114 --> 00:10:52.484 Patty: Yeah. 00:10:52.684 --> 00:10:56.684 And because the, at the end of the day, the plants are owned and 00:10:56.684 --> 00:10:59.134 operated by farmers, by cooperatives. 00:10:59.859 --> 00:11:03.349 It's still very much, you know, back to the early days when we had a lot 00:11:03.349 --> 00:11:07.729 of plants here in the U S it started with the farmers having the feedstock, 00:11:08.468 --> 00:11:08.848 Victoria: So, 00:11:09.129 --> 00:11:11.119 Patty: we've grown up and become a little more corporate here in 00:11:11.119 --> 00:11:15.089 the U S but in India, it's still very much the local cooperatives 00:11:15.238 --> 00:11:18.538 Victoria: So that makes me think that it's really important to have 00:11:19.008 --> 00:11:24.628 local presence and people that, um, really locally know the businesses. 00:11:24.628 --> 00:11:30.098 So if I think about, um, the oil and gas market, for instance, in North America, 00:11:30.098 --> 00:11:32.948 which is the areas that I'm familiar with, you know, when people go out to 00:11:32.948 --> 00:11:37.008 West Texas and they're selling oil field chemicals, a lot of times it's people 00:11:37.008 --> 00:11:38.998 that grew up in those communities. 00:11:39.248 --> 00:11:40.898 They have very tight relationships. 00:11:40.898 --> 00:11:42.338 They live in those communities. 00:11:42.428 --> 00:11:44.428 Do you see the same thing happening? 00:11:44.743 --> 00:11:45.993 As you do business in India. 00:11:46.549 --> 00:11:47.609 Patty: Yeah, very much so. 00:11:47.629 --> 00:11:51.529 And even more so because India is a collection of a 00:11:51.529 --> 00:11:53.099 lot of states and each state. 00:11:53.454 --> 00:11:55.854 We'll have their own local language as well. 00:11:56.314 --> 00:12:01.254 So even communicating across the country, um, presents a bit of a challenge. 00:12:01.554 --> 00:12:01.803 Victoria: Yeah. 00:12:01.924 --> 00:12:05.594 Patty: only people in the big cities can, can fluently speak English. 00:12:05.594 --> 00:12:09.474 You can find English in some of the other larger cities, but really getting down 00:12:09.474 --> 00:12:15.174 to, um, to the purchasing decision, you do need to rely on locals to navigate that. 00:12:15.653 --> 00:12:15.893 Victoria: Yeah. 00:12:15.893 --> 00:12:16.593 That's interesting. 00:12:16.593 --> 00:12:22.998 I think we sometimes, uh, Number one, so there's so many, um, Indian companies 00:12:22.998 --> 00:12:27.558 that we work close, closely with across, you know, the U S across the globe. 00:12:27.878 --> 00:12:31.938 Um, and, you know, on a regular basis encounter Indian people 00:12:31.938 --> 00:12:34.438 that are very fluent in English. 00:12:34.798 --> 00:12:39.198 And yet it's interesting, the whole, uh, the variety of languages and the 00:12:39.198 --> 00:12:44.048 skills that are needed to really do business effectively in, in the country. 00:12:44.499 --> 00:12:47.879 Patty: And I think not to cut you off, but that's business doing business 00:12:47.989 --> 00:12:51.609 effectively, I think is the key because a lot of these people will 00:12:51.609 --> 00:12:53.679 speak English and we can communicate. 00:12:53.949 --> 00:12:56.429 But as you know, when it comes down to the selling process, 00:12:56.489 --> 00:12:58.019 it's more than just the words. 00:12:58.119 --> 00:13:02.679 There's a deeper level of connection that you're trying to reach that level 00:13:02.679 --> 00:13:04.498 of understanding the pain points. 00:13:05.109 --> 00:13:05.509 And, 00:13:05.628 --> 00:13:07.669 you know, you've talked about it before about getting to know 00:13:07.669 --> 00:13:09.679 your customers and and bridging. 00:13:09.689 --> 00:13:13.999 It has to be a win win, and it's easier to get to that win win in the local 00:13:13.999 --> 00:13:16.669 language with that level of trust. 00:13:16.739 --> 00:13:21.309 So, um, yes, a local presence is absolutely key. 00:13:21.499 --> 00:13:22.809 You see that in the Middle East as 00:13:22.809 --> 00:13:24.859 well for slightly different reasons. 00:13:25.209 --> 00:13:30.484 Um, because the Middle East is, as you know, has very distinct protocol 00:13:30.594 --> 00:13:34.294 and procedures that you need to go through for these massive RFQs. 00:13:34.834 --> 00:13:41.044 And, um, understanding how to navigate the particulars of those 00:13:41.074 --> 00:13:44.994 individual RFQs issued by large corporations where they have a lot 00:13:44.994 --> 00:13:46.924 of people checking all the boxes. 00:13:47.384 --> 00:13:49.454 Um, and you can be kicked out if you don't check out. 00:13:50.109 --> 00:13:51.619 You know, tick all the right boxes. 00:13:51.999 --> 00:13:55.349 So it's important to have somebody who understands the culture, understands 00:13:55.349 --> 00:14:00.349 each customer knows how to ask the questions for clarification ahead of 00:14:00.349 --> 00:14:02.769 time before you might be on the outside 00:14:03.259 --> 00:14:03.869 looking in. 00:14:04.418 --> 00:14:04.668 Victoria: Yeah. 00:14:04.738 --> 00:14:05.328 Interesting. 00:14:05.648 --> 00:14:10.858 So you talked a little bit about, um, the fact that this is really much of your 00:14:10.858 --> 00:14:16.578 business there is in India in particular is project based, time-tables slip. 00:14:17.413 --> 00:14:18.943 , you know, you don't always have control of that. 00:14:19.263 --> 00:14:20.683 How do you manage that? 00:14:20.693 --> 00:14:24.813 That is a, that is definitely a variability in supply chain and 00:14:24.813 --> 00:14:28.283 in your, um, your sales and your delivery process that, you know, 00:14:28.303 --> 00:14:32.413 the reality is from an operations perspective, steady state is always 00:14:32.413 --> 00:14:35.073 the best predictability is preferred. 00:14:35.433 --> 00:14:38.263 And yet it sounds like you don't necessarily have a lot 00:14:38.263 --> 00:14:39.473 of predictability at times. 00:14:39.833 --> 00:14:40.993 How do you guys manage that? 00:14:41.063 --> 00:14:45.482 Yeah. 00:14:45.619 --> 00:14:46.019 Patty: That's right. 00:14:46.019 --> 00:14:46.829 I can't forecast. 00:14:47.209 --> 00:14:51.319 What I try to do on a global basis is streamline the product line. 00:14:51.639 --> 00:14:57.249 So we have a handful of major movers in terms of the product, the product 00:14:57.249 --> 00:15:03.329 size and how it's packaged so that we can deal with those flexibilities. 00:15:03.349 --> 00:15:04.749 We still have product moving. 00:15:04.859 --> 00:15:09.199 It may not be to customer A, but we've got it in stock. 00:15:09.199 --> 00:15:11.159 It's going to go to customer B because they paid first. 00:15:11.469 --> 00:15:12.999 So it's very fluid. 00:15:13.579 --> 00:15:18.969 But by streamlining and having, um, Um, only a few products for the major markets. 00:15:18.969 --> 00:15:22.519 We do have the specialties, but it's a smaller part of my business. 00:15:22.639 --> 00:15:31.139 Um, but by having the large volume movers, I can oversee, you know, across 00:15:31.609 --> 00:15:33.889 multiple customers and balance it out. 00:15:34.519 --> 00:15:36.309 So it all comes together. 00:15:36.369 --> 00:15:42.085 Not perfectly mind you, but it's not as much chaos as it must, it might seem 00:15:42.385 --> 00:15:43.263 Victoria: Yeah, that makes sense. 00:15:43.263 --> 00:15:45.763 I mean, I think there's this whole element of standardization 00:15:45.763 --> 00:15:47.623 that's needed to be effective. 00:15:47.663 --> 00:15:50.373 Um, and it's kind of the whole 80, 20 rule. 00:15:50.463 --> 00:15:55.633 I would imagine, you know, the Pareto principle applies for so many factors 00:15:55.643 --> 00:16:00.403 for a reason, because, you know, if you can get yourself to 80%, whatever your 00:16:00.413 --> 00:16:04.783 target number is of standardization, it gives you that ability to navigate. 00:16:05.629 --> 00:16:06.079 Patty: It does. 00:16:06.079 --> 00:16:10.059 And it helps us manage our inventory and it helps me have more inventory 00:16:10.099 --> 00:16:14.599 available on demand, which in the U S market, I think has really given 00:16:14.599 --> 00:16:19.819 us a distinct advantage that we, we maintain good levels of stock and can 00:16:19.819 --> 00:16:21.779 respond rapidly to our customer's needs. 00:16:21.779 --> 00:16:24.329 Cause there are those unplanned upsets and, 00:16:24.449 --> 00:16:27.749 and we are the go to I I'd like to think we are the go to because 00:16:27.749 --> 00:16:32.479 we can supply on short notice for those customers that have an upset. 00:16:32.838 --> 00:16:33.128 Victoria: Yeah. 00:16:33.388 --> 00:16:33.838 Makes sense. 00:16:33.838 --> 00:16:34.318 That's great. 00:16:35.178 --> 00:16:37.588 Let's talk a little bit about sustainability, right? 00:16:37.588 --> 00:16:42.308 So we know that sustainability is becoming increasingly critical across 00:16:42.558 --> 00:16:45.178 all businesses, all geographies. 00:16:45.178 --> 00:16:46.508 Well, I say all geographies. 00:16:47.268 --> 00:16:47.908 Is that true? 00:16:47.908 --> 00:16:54.458 As you venture into India and the Middle East, where does sustainability, 00:16:54.508 --> 00:16:58.664 carbon reduction and other things factor into their priorities? 00:16:58.964 --> 00:16:59.414 Patty: hmm. 00:16:59.954 --> 00:17:03.654 India is a tough one because I'm not involved down at the 00:17:03.684 --> 00:17:05.714 individual plant level per se. 00:17:05.934 --> 00:17:08.124 But we can say that their use of ethanol and wanting to 00:17:08.124 --> 00:17:09.744 blend that into the gas pool. 00:17:10.374 --> 00:17:13.314 is having a positive impact on the environment. 00:17:13.644 --> 00:17:15.550 Um, so, so that's India. 00:17:15.874 --> 00:17:20.284 If you look at the other markets that I sell into natural gas, let's just say at a 00:17:20.284 --> 00:17:23.084 high level, natural gas is the clean fuel. 00:17:23.304 --> 00:17:24.774 It is the bridging strategy. 00:17:25.024 --> 00:17:26.884 Everyone can say it's going to be wonderful. 00:17:26.884 --> 00:17:31.624 And in 5 10 years, we're going to move massively away from hydrocarbons. 00:17:31.674 --> 00:17:33.674 But the reality is some of those technologies. 00:17:33.989 --> 00:17:35.929 May not be ready and 00:17:35.999 --> 00:17:39.419 natural gas is a cleaner fuel, a cleaner option than coal. 00:17:39.649 --> 00:17:46.459 So, uh, we are seeing strong markets for, uh, natural gas processing and even the 00:17:46.479 --> 00:17:50.409 LNG plants, especially here in the U S that we've seen grow, they've been strong 00:17:50.409 --> 00:17:55.749 in, in other parts of the world for quite some time, but anyway, there's investment 00:17:55.789 --> 00:17:58.449 in natural gas and LNG for those reasons. 00:17:58.719 --> 00:18:01.439 Now, when it comes to using our products. 00:18:02.169 --> 00:18:07.729 In the processing of natural gas, it's mature technology. 00:18:07.759 --> 00:18:13.099 But what we're seeing is that our customers are very receptive to our 00:18:13.099 --> 00:18:15.223 services of helping them optimize. 00:18:15.664 --> 00:18:20.524 So use less energy in the processing of natural gas, getting more life 00:18:20.554 --> 00:18:25.124 out of the molecular sieve loads that we do put in so that they have less 00:18:25.124 --> 00:18:27.164 environmental impact on disposal. 00:18:27.334 --> 00:18:31.094 And even just the whole reload process of the trucking of the 00:18:31.094 --> 00:18:36.334 vans to get it there, trucking the spent material to be disposed off. 00:18:36.664 --> 00:18:41.224 So it's, it's got its own little, circle their circle of life and 00:18:41.224 --> 00:18:46.204 trying to get longer life, minimize those disruptions and disposal costs. 00:18:46.404 --> 00:18:49.584 Use less energy as you're operating those plants day to day. 00:18:49.794 --> 00:18:52.514 We've got, we formed some tight partnerships that have really helped 00:18:52.514 --> 00:18:57.294 us differentiate ourselves from our competitors to be able to impact that. 00:18:57.763 --> 00:18:58.263 Victoria: That's great. 00:18:58.693 --> 00:19:02.603 And I think your point about, you know, uh, natural gas being the clean fuel of 00:19:02.603 --> 00:19:05.303 choice or at least a bridging strategy. 00:19:05.303 --> 00:19:09.183 I think that is one of these reflections that, um, depending on who you're 00:19:09.183 --> 00:19:12.173 talking to, but I think more people are coming to that realization of 00:19:12.173 --> 00:19:17.788 the, uh, the, um, future world where we're, we're looking into green energy 00:19:17.788 --> 00:19:23.357 sources, whether it be solar, wind and other things it's a ways away, right? 00:19:23.357 --> 00:19:25.887 We're not ready yet to have it fully impacted. 00:19:25.907 --> 00:19:28.827 And so when you think about moving from. 00:19:29.472 --> 00:19:30.982 Coal to natural gas. 00:19:31.032 --> 00:19:32.992 Natural gas is a cleaner alternative. 00:19:33.272 --> 00:19:35.732 Um, heavy hydrocarbons to the light hydrocarbons. 00:19:35.752 --> 00:19:37.012 It's a cleaner alternative. 00:19:37.012 --> 00:19:42.162 So it's all kind of this stepwise sustainability progress 00:19:42.562 --> 00:19:43.792 that we're seeing take place. 00:19:44.483 --> 00:19:46.693 Patty: And it's nice because it's established technologies. 00:19:47.138 --> 00:19:48.098 We know how to do it. 00:19:48.118 --> 00:19:49.648 We know how to do it responsibly. 00:19:50.028 --> 00:19:53.598 And, um, yeah, I think it'll be around for longer than people want. 00:19:53.598 --> 00:19:55.408 I mean, I hope we get there sooner with 00:19:55.408 --> 00:19:55.958 some of these 00:19:56.152 --> 00:19:59.518 greener technologies, but the reality is, I think there's going 00:19:59.518 --> 00:20:01.498 to be another decade or two. 00:20:02.237 --> 00:20:02.797 Victoria: At least. 00:20:02.827 --> 00:20:05.557 I've seen somebody said, you know, another 70 years. 00:20:05.587 --> 00:20:06.027 We'll see. 00:20:06.127 --> 00:20:06.227 I 00:20:06.368 --> 00:20:06.618 Patty: Oh 00:20:07.097 --> 00:20:07.207 Victoria: I 00:20:07.207 --> 00:20:09.287 don't know how to, you know, but I think it all depends on what you're 00:20:09.287 --> 00:20:10.527 looking at and what you're measuring. 00:20:10.527 --> 00:20:11.157 So we'll see. 00:20:11.197 --> 00:20:12.057 Time will tell. 00:20:12.827 --> 00:20:16.547 So, you know, let's turn and talk a little bit about leadership and strategy. 00:20:16.547 --> 00:20:23.297 So as a leader in a midsize international company, how do you balance local 00:20:23.297 --> 00:20:25.752 autonomy and global strategy. 00:20:26.282 --> 00:20:29.402 Um, and I think about this, you have employees, but you also have 00:20:29.592 --> 00:20:34.062 tight business partner relationships who are obviously external to you, 00:20:34.322 --> 00:20:38.692 but who also need to align to your business objectives, to your business 00:20:38.692 --> 00:20:40.332 strategy as you serve markets. 00:20:41.313 --> 00:20:41.343 Patty: Right. 00:20:41.503 --> 00:20:43.123 It takes a lot of coordination. 00:20:43.123 --> 00:20:43.833 I will say that. 00:20:43.853 --> 00:20:47.813 And thank goodness we all got used to Zoom and Teams and these other 00:20:47.813 --> 00:20:49.823 remote ways of communicating. 00:20:50.143 --> 00:20:54.833 Um, because it's not as good as being there, but it's better than a phone call. 00:20:55.093 --> 00:20:58.113 And so we can stay connected in ways that we, we couldn't before. 00:20:58.113 --> 00:21:02.863 But, but in addition to that, having the, the right, Channel in country 00:21:02.953 --> 00:21:07.233 chosen for that country for whatever they bring to the party, depending 00:21:07.233 --> 00:21:08.513 on what part of the world we're in. 00:21:08.853 --> 00:21:14.303 as I manage, I'm in touch with my team so that they know throughout the month how 00:21:14.303 --> 00:21:16.563 we're progressing, what I'm looking for. 00:21:16.873 --> 00:21:22.073 And it is a coordination because, um, as we try to branch out into new 00:21:22.083 --> 00:21:25.053 regions, references are really important. 00:21:25.153 --> 00:21:29.683 And so we just got a great reference in, um, in the Middle East that's 00:21:29.683 --> 00:21:31.953 going to help us in China, for example. 00:21:31.953 --> 00:21:32.022 all. 00:21:32.363 --> 00:21:34.307 Just to show that yes, we have good products. 00:21:34.393 --> 00:21:38.223 Others have have trusted our materials for decades. 00:21:38.253 --> 00:21:39.483 And now you can too. 00:21:39.483 --> 00:21:40.143 It's okay. 00:21:40.473 --> 00:21:43.473 So trying to coordinate and make all that come together is fine. 00:21:43.493 --> 00:21:46.693 Now, me personally, I do a little bit of block flow. 00:21:46.943 --> 00:21:53.343 I will focus in on certain regions for a couple of weeks, if not four weeks 00:21:53.803 --> 00:21:55.203 and make sure everything's aligned. 00:21:55.213 --> 00:21:55.993 Move on to the next. 00:21:55.993 --> 00:21:56.283 Nothing. 00:21:56.283 --> 00:21:57.613 I'm touching, not touching base. 00:21:57.713 --> 00:22:02.953 In between, but I do tend to focus and dive in deep in one region and 00:22:02.953 --> 00:22:06.613 then move to the next and move to the next just kind of works for me. 00:22:06.613 --> 00:22:09.242 And 00:22:09.342 --> 00:22:13.622 Victoria: know, the whole studies of, um, you can't multitask very effectively. 00:22:13.622 --> 00:22:14.692 None of us really can. 00:22:14.702 --> 00:22:18.812 And so I think this idea of block focus, uh, in different markets 00:22:18.812 --> 00:22:21.072 in different regions makes sense. 00:22:21.082 --> 00:22:24.132 It's in a, it's the, uh, focus in a bigger way. 00:22:25.602 --> 00:22:25.932 Yeah. 00:22:25.963 --> 00:22:28.703 Patty: I try not to focus too much on currency exchange. 00:22:28.953 --> 00:22:30.563 That's just that's just me. 00:22:31.623 --> 00:22:33.863 We report our earnings in Swiss francs. 00:22:34.383 --> 00:22:37.593 So that doesn't always work in my favor, depending where in the world. 00:22:37.623 --> 00:22:42.193 But if I found that if I focus on the customers focus on the value. 00:22:42.263 --> 00:22:47.583 And even a couple of pennies count, you know, just being very mindful 00:22:47.603 --> 00:22:51.763 of those margins, uh, points me in the right direction has been a good 00:22:52.087 --> 00:22:53.347 Victoria: Yeah, I think it's a good point. 00:22:53.397 --> 00:22:57.477 I mean, control the things you can control and currency is not one of them. 00:22:57.777 --> 00:22:58.473 Patty: No. 00:22:58.503 --> 00:23:03.683 And, and you know, you, in my business, and I think in any business, you 00:23:03.683 --> 00:23:05.393 can't keep changing your strategy. 00:23:05.903 --> 00:23:10.413 You have to have a strategy and it's multi year and you might tweak and 00:23:10.423 --> 00:23:14.293 change a little bit along the way, but you can't be, you know, Managing 00:23:14.293 --> 00:23:16.893 and reacting to swings in currency 00:23:16.947 --> 00:23:17.807 Victoria: Yeah, awesome. 00:23:17.997 --> 00:23:19.677 So, so we're here. 00:23:19.677 --> 00:23:21.677 We're approaching the end of 24. 00:23:21.697 --> 00:23:26.667 We're at, you know, we've recently gone through a presidential election in the U. 00:23:26.667 --> 00:23:26.987 S. 00:23:26.987 --> 00:23:29.677 We're at the cusp of a new administration. 00:23:30.217 --> 00:23:34.318 Lots of conversations around what that potentially means for global trade, 00:23:34.437 --> 00:23:35.781 particularly when we think about trade. 00:23:35.862 --> 00:23:36.692 Tariffs. 00:23:37.092 --> 00:23:38.502 Um, did that come up at all? 00:23:38.502 --> 00:23:42.772 Is that how are you or your business partners thinking about that as you look 00:23:42.772 --> 00:23:44.822 forward over the next 12 to 24 months? 00:23:44.832 --> 00:23:46.242 Is it too soon to tell? 00:23:46.242 --> 00:23:47.392 Or do they 00:23:47.573 --> 00:23:48.303 Patty: Well, it's, 00:23:48.743 --> 00:23:49.853 it's a little soon. 00:23:49.913 --> 00:23:57.033 Um, but if you take some of the pre election information and talk and chatter, 00:23:57.473 --> 00:24:02.073 uh, into account, we will see increased tariffs on imports coming into the U S. 00:24:02.513 --> 00:24:06.603 Um, while that gives me a little bit less flexibility in terms of 00:24:06.603 --> 00:24:09.633 sourcing from the multiple plants, cause there's times where I do want to 00:24:09.633 --> 00:24:11.463 source, From China and bring to the U. 00:24:11.463 --> 00:24:11.693 S. 00:24:11.703 --> 00:24:14.443 Depending on the product, depending on the strength of the individual 00:24:14.463 --> 00:24:16.053 markets and the demand on our plant. 00:24:16.433 --> 00:24:20.353 Um, what I'm really looking at now is how is that going to 00:24:20.353 --> 00:24:21.973 change the competitive landscape? 00:24:22.253 --> 00:24:23.193 And I think it will. 00:24:23.743 --> 00:24:27.483 And I think that's what Trump's all about, is that there in his 00:24:27.483 --> 00:24:30.693 mind, there maybe is too much presence from the low cost Chinese 00:24:30.693 --> 00:24:33.583 material with the increased tariffs. 00:24:33.633 --> 00:24:34.262 I think Yeah. 00:24:34.603 --> 00:24:37.333 it's going to be impactful for some of our competitors. 00:24:37.673 --> 00:24:42.083 Currently the molecular sieves coming in from China are tariffed at 25%. 00:24:42.503 --> 00:24:45.362 So if it goes to 60, that's, that's a big step. 00:24:46.143 --> 00:24:49.403 Um, and I think it's a game changer for some of my competitors. 00:24:49.623 --> 00:24:53.723 Now with my big plant in Louisville, Kentucky, I think it may open 00:24:53.723 --> 00:24:56.933 up some of the market to us that wasn't available before. 00:24:57.263 --> 00:25:00.658 So, you know, a little bit, it's, It's a little bit of having 00:25:00.668 --> 00:25:02.058 more market available to me. 00:25:02.058 --> 00:25:03.548 But how do I do the sourcing? 00:25:03.548 --> 00:25:04.852 How do I change my sourcing a little 00:25:04.852 --> 00:25:08.898 In that direction of sourcing the rest of the world from the China plant best I can. 00:25:08.908 --> 00:25:11.628 We're sourcing Brazil, India, Middle East from China. 00:25:12.128 --> 00:25:16.787 Um, and so we've already started down that path. 00:25:18.078 --> 00:25:23.348 Um, but I will tell you that, um, in the past, the 25 percent tariff wasn't really 00:25:23.348 --> 00:25:25.558 enough to change the market dynamic. 00:25:25.908 --> 00:25:28.668 I mean, we were not able, there's market prices and we weren't able 00:25:28.668 --> 00:25:32.148 to just pass on that 25 percent because all of a sudden there's 25%. 00:25:32.758 --> 00:25:35.748 So, but I think 60 is a different, it's a higher level. 00:25:35.748 --> 00:25:36.178 I think that's 00:25:36.232 --> 00:25:37.252 Victoria: It is a game changer. 00:25:37.552 --> 00:25:40.478 Patty: So it's only now that, and well, we did a little bit ahead of time, but 00:25:40.698 --> 00:25:43.668 now we're doing our math and trying to see what is, what is it really? 00:25:43.668 --> 00:25:43.682 Okay. 00:25:43.963 --> 00:25:48.073 Me more to our competitors, and I'm glad we have a plant in the US. 00:25:48.662 --> 00:25:49.672 Victoria: Yeah, absolutely. 00:25:49.672 --> 00:25:53.742 And I think that's a great, a great point though, in terms of as. 00:25:54.787 --> 00:25:58.417 We gear up for a new administration, potentially new trade policies. 00:25:58.427 --> 00:26:05.837 It's a great time to reflect on strategy, um, and what it means for global balances, 00:26:05.877 --> 00:26:10.157 business strategies, market strategies, sourcing strategies is, um, I think a 00:26:10.157 --> 00:26:14.447 lot of work going on behind the scenes, uh, not just at Zeochem, but everywhere. 00:26:15.023 --> 00:26:19.253 Patty: Oh, yes, including raw materials and parts and pieces, you know I was 00:26:19.253 --> 00:26:22.273 reading something on the news just yesterday about can we even get the 00:26:22.433 --> 00:26:24.623 parts we need for me raw materials? 00:26:24.773 --> 00:26:30.803 you know, we've gotten used to a world of Available things that 00:26:30.803 --> 00:26:35.843 we can use and have access to and now that might not be available. 00:26:36.257 --> 00:26:36.787 Victoria: absolutely. 00:26:36.987 --> 00:26:37.237 Good. 00:26:37.507 --> 00:26:40.187 Well, Patty, thank you for joining us today on the chemical show. 00:26:40.187 --> 00:26:41.667 Really appreciate having you here. 00:26:42.723 --> 00:26:43.903 Patty: Well, it's my pleasure 00:26:44.242 --> 00:26:46.292 Victoria: Thank you and thanks everyone for listening. 00:26:46.292 --> 00:26:49.082 Keep listening, keep following, keep sharing, and we will 00:26:49.082 --> 00:26:50.292 talk with you again soon.