Resilience in times of crisis

Resilience in times of crisis

The "R" in Baerlocher stands for resilience. The company successfully masters major challenges time and again. Good leadership and a bit of luck are responsible for this, but success is unthinkable without long-term, stable and, above all, good customer relationships.

Crises strengthen character, they say. Baerlocher has survived numerous political, economic, and social crises and challenges, because the Baerlocher Team sticks together. We build on know-how, experience, and team spirit. We are ready to accept and shape new situations. This applies to the justified expectations for sustainable and environmentally friendly solutions as well as to exogenous shocks. Think of the economic and financial crisis of 2008, the Corona pandemic with its disruption of global supply chains, and the energy crisis resulting from the Russian war on Ukraine. And there are accidents like the major fire in Lingen in 1996. But the global footprint offers fallback options in the event of local challenges. It is this safety net that makes Baerlocher resilient and thus a reliable partner for customers worldwide.

Major fire in Lingen 1996

Lingen: Transformed

At the end of the 1970s, Baerlocher starts anew with the new production site in Lingen, which at that time is probably the most modern production plant for stabilizers. Lingen exceeds expectations and even becomes a symbol for a new Baerlocher era. But in 1996 there is a tragic fire. It is a moment of shock for the whole group. At 2:30 a.m., the smoke alarm goes off due to a system malfunction. A large-scale operation follows that lasts three hours. The fire destroys the three top floors of Tower C. One firefighter is slightly injured. "It was disastrous," recalls management member Andy Jones, who received the news over the phone at the time. On site, the response is swift, the people informed, and all parties closely involved. Raw materials and production capacities are destroyed. A major logistic challenge. But the group sticks together worldwide, from the USA to Brazil, France, Italy and Malaysia. This is also made possible by uniform quality standards worldwide. The task now is to prevent the loss of market share and guarantee the consistency of supply for the customers. And it is becoming apparent in many cases that intensive, long-standing customer relationships pay off And so we continue our path.

By 1998, modernization and automation are carried out to drastically increase competitiveness. The already high safety and production standards are raised again. Eventually, despite the short-term damage, there is a long-term image gain. Something similar plays out in an incident in Italy in 2010. Wolfgang Florian, long-standing chairman of the works council, is convinced that only as a family business does one have the strength "that one can put behind things if one wants to pursue something with vigour".

Global footprint – global resilience

Younger tests

During the lead phase-out in Europe, Baerlocher gains valuable experience with market-oriented future solutions. This soon pays off: There are noticeable shifts in the raw material markets in the mid-2000s. The prices for tin, zinc, crude oil and lead experience a significant increase. This has consequences for Liquid Mixed Metals, the entire stabilizer industry and thus the end users. Between 2006 and 2007 alone, stearic acid in India, for example, increase in price by almost 100 %. The fact that lead prices are also exploding makes lead alternatives such as Ca/Zn systems attractive now also in the PVC markets outside Europe. This enables Baerlocher to fully exploit its lead in experience. In calcium-based systems, for example, Baerlocher Turkey leads in many markets in the Near and Middle East and in Africa.

Just as the Asian crisis throws the Asia-Pacific region into turmoil in the 1990s, the economic and financial crisis dramatically affects Europe and North America from 2008 onwards. This also applies to Baerlocher. Demand for PVC, and thus also for stabilizers, declines. The global market shares are shifting. While Europe is Baerlocher's largest market for a long time, the ratio is now reversing. This is only possible because an intensive internationalization strategy has been pursued since the 1980s. The diversification of the portfolio is also paying off, for example through SPA or new markets such as Wood Plastic Composites (WPC). At the same time, Baerlocher is developing "organizational resilience to exogenous shocks", CEO Arne Schulle states. Because there are always crises, and they happen all over the world, the company is now better prepared for them. The high level of personal responsibility of the employees and their willingness to achieve top performance also contribute to this.

And so, the lessons of the crisis are a strength in the Corona pandemic from spring 2022 onwards. Now a crisis-tested, experienced team is coming together to apply tried and tested mechanisms. The biggest challenge to being fit for the future, however, is to shape the corporate culture long term, to strengthen research and development and to open up new markets and market segments through diversification. And that is exactly what Baerlocher is doing with foresight in a good tradition.

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