COVID Supply Chain Limitations Impact on Chemical Distribution
The modern supply chain crisis brought about due to the COVID-19 pandemic continues to impact numerous companies and industries around the globe. From shipping to trucking, rail and infrastructure, nearly every aspect of the supply chain is affected. As a provider of high-quality base components, chemical intermediates, chemical additives and functional fluids, our commitment to each customer remains solid even as we face our own ongoing challenges as a supply chain partner. We are nimble to solve problems that arise and confident in the strength of our partnerships to deliver the care to our customers that we stand by.
Supply Chain Disruption
It’s important to understand that there are numerous parts to the overarching issue within the supply chain over the past two years. Corporations’ product processes have recently been exposed to new risks and vulnerabilities resulting in global factory closures and manufacturing slowdowns. With numerous reports of low or no stock on products also dramatically impacting the overall supply chains, issues in transportation to both suppliers and consumers have arisen as the globe appears to be stuck in “undersupply.” These conditions require all market participants, including us, to be ever more flexible on budgets and expectations, and committed to finding creative solutions.
The US has seen a record number of container ships sitting idle waiting to dock at various ports. was an average increase of delays among NACD members (National Association of Corporate Directors) of over 11 days in summer 2021 alone with delays only getting longer from there. There was simply not enough global ship capacity to handle the demand for existing space. The trucking industry has continued to face a driver shortage with vaccine mandates and the CA AB-5 (California Assembly Bill) precluding carriers from using independent drivers unless classified as employees. Issues within the railways also picked up speed with declining service and pricing issues alongside failure of the proposed merger of key providers; Kansas City Southern and Canadian National Railway.
Logistics Costs
Although the precise supply chain issues of 2020 and 2021 are likely to fade, there will still be new challenges. The costs associated with the supply chain are growing rapidly across chemical sectors due to the aforementioned factors and the recent rise in oil prices. Global logistic costs face additional increases too, including never-before-seen surcharges being applied by container shipowners to oceangoing containers at the time of loading. In response to these various challenges, Soltex is focusing on our strong partnerships who understand and are able to accommodate customer needs. We are also staying informed so as to anticipate, plan for and get ahead of such issues.
Soltex’s Partnerships
As a company, we are focused on taking action along with our team of partners, to alleviate and ultimately entirely diminish negative impacts of global supply chain issues. It’s essential in forging future success that we sustain our level of customer service commitment throughout. Diverse Trucking, out of Chicago, for example, is an incredibly reliable and important partner to Soltex as they work with us to assist customers with potential short lead times. Their ability to get product from point A to the customer is especially noteworthy in this current age. Maintaining a dependable carrier like Diverse Trucking has allowed our team to respond in a timely manner and has kept our grid functional. Our production plant in Belleville, Ontario also continues to be a key player in providing the highest quality and efficient care to our customers. There are no scenarios in which their product is not precisely what needs to be delivered.
Things are additionally looking up nationally as The Bipartisan Infrastructure bill, which in large part is focused on the efficient transport of goods and produce across the country, was also passed last fall. While the impacts of this bill have yet to be felt, it bodes well for necessary changes in national supply chain issues. And though the reality of the situation has not been largely promising, Soltex is committed to working hard to deliver value to our customers and remain a superior, reliable supplier and partner.
Soltex Reactions Q1 – 2022
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The Soltex Philosophy: 32 Years of Adding Value to Your Formulations
Since 1990, Soltex, a privately held Houston-based chemical company, has been offering high-quality base components, chemical intermediates, chemical additives, and functional fluids that improve the performance of products used in industrial, automotive, and consumer applications. Initially called Synthetic Oils and Lubricants of Texas, then a few years later changed to Soltex, the company was founded with the purchase of Chevron’s RF & DF, and has seen multiple expansions since. Exporting and selling products to South America, Europe, and Southeast Asia, the Soltex philosophy to provide high-quality products, exceptional customer support, and innovative problem solving over the last 30+ years remains a guiding force behind our continued success as a company.
Acquisitions Spur Growth of Quality Products
From additional services offered to new markets and products, our momentum has been strong and steady. In 1986, Soltex began selling refrigeration fluid (RF) for compressor lubrication, dielectric fluid (DF) for power transmission cables and specialty branched alkylbenzene (BAB) for agricultural emulsifiers. Just a few years later starting in the 1990’s Soltex began sales and marketing on behalf of Chevron Chemical for its polybutene plant in Brazil. As the polybutene product continued to show strong sales, Soltex purchased Chevron Phillips Chemical’s (CPC) Shawinigan Black business in 2004. Later this product became known as Soltex’s Acetylene Black (AB) as CPC pursued more profitable returns on direct sale of their acetylene gas. Although Soltex had never sold a product in powder version, the team met the new challenge of storage issues and significant new inventories all while identifying alternate sources and working on new product approvals. Recognizing that AB had synergies with other core Soltex lines of products, it became a very strategic product for overall company growth.
Two years later in 2006, Soltex purchased a major competitor in North America, H&R (heritage Dussel Campbell), leaving only two competitors of DF in North America. This opened doors for new customer relationships, particularly in Canada. H&R manufactured products in Belleville, ON, and as a result, they had a majority of the business in that area. Building on these acquisitions, Soltex saw consistent growth, and in 2012 expanded its product line to include synthetic base oils, refrigeration fluids, base components, and chemical and performance additives for industrial and consumer applications. This added another slate of products to offer existing accounts while also targeting new business.
A big milestone was reached in 2015 when Soltex Canada was established through the purchase of OMG Belleville, putting Soltex in ideal proximity to the major market of the Northeast thus shortening transit times and reducing logistics costs. After the acquisition of OMG Belleville, Soltex acquired Petroleum Chemicals expanding its Chemical Additives/PCA line. Following the Petroleum Chemicals buy, Soltex secured an opportunity to purchase Tabler in 2018, giving Soltex additional products that were primarily directed to the paint and coating business.
Exceptional Company-wide Customer Support
Manufacturing for Soltex occurs in the US and Canada. Specifically, most of the performance chemical additives (PCA) are produced in the US. Made in Canada are dielectric fluids, refrigeration fluids, cable flood, fill and gels, metal carboxylates as well as some of the performance additives.
Soltex manages and operates warehouses and packaging operations in Houston, TX, along with toll manufacturers in Canada and US. With high quality products and a fair price, customer service is among the highest of priorities. Soltex employees are driven by their desire to support and connect with their customers and prospects. From initial sampling to formulating and logistics, you’ll encounter the utmost responsiveness and agility from all of our staff. By bringing knowledge about the chemical supply chain and an eagerness to share that knowledge, Soltex employees are able to help customers with their chemical product and application needs in a thorough, professional and highly personal manner. As a supply chain partner, our logistics and distribution resources enable our team to also provide efficiencies in warehousing and transporting products worldwide.
Innovative Problem Solving
Soltex exports and sells products to South America, Europe and Southeast Asia. Our wide range of products serve numerous customers, each with different needs and goals. We want to be our customers’ first call and even if it isn’t our area of expertise, we find a way to help solve the issue. Equipped with an in-house laboratory and expertise, we are able to provide reliable technical support and jump in to serve unique needs as they arise. Our close relationships with carriers coupled with a strong supply chain group make our logistics stand out above competitors. Distribution resources at Soltex also enable efficiencies in warehousing and transporting products worldwide via our primary sites of distribution including multiple domestic locations in the US and Canada.
With business acquisitions and product expansions over the years, Soltex remains committed to the philosophy of providing high-quality products, exceptional customer support, and innovative problem-solving. Our sights continue to be set on additional growth through continuous product portfolio expansion and new business partnerships.
Product Spotlight: PIB
Have you ever wondered what paint, adhesives, caulks, sealants, cling film, lipstick and chewing gum all have in common? Probably not, but now you might be giving this question a ponder.
The Soltex team is here to inform you that each of those items has a common chemical in their compounding, i.e., some form of polybutene. Polybutenes provide “tack” to films and other products requiring cling to substrate. Their tackiness vastly contributes to their wide array of applications. Each day you encounter and probably use products with polybutenes.
Polybutenes are synthetic hydrocarbon polymers made by polymerization of C4 olefins. They are available in a wide range of viscosities which contributes to their versatility in use significantly. With control of polymerization conditions, polymer chains of different lengths are manufactured giving a wide range of polybutene grades having different physical properties.The different physical properties come from various chain lengths. Short chain-length polybutenes are free-flowing, medium chain-length polybutenes are sticky with a honey-like consistency, and those with the longest chain length are extremely tacky, nearly solid materials.
Soltex has the aforementioned broad range of polybutenes from low to heavy molecular weight/viscosities. Polybutenes are also available in packaged or bulk quantities, allowing for consumers with varying uses in application to partner with us. With superior customer service and product expertise, we work closely with our partners who source polybutenes from us to ensure their needs are met from inquiry to end use.
Other noteworthy attributes about this surprisingly versatile chemical include its ability to decompose cleanly. Polybutenes are synthetic, have good oxidative and thermal stability, carry NSF, Kosher and Halal approvals to meet your formulation requirements. Low to medium molecular weight polybutenes are commonly used in cling films, paints, adhesives, caulks, sealants, lubricant, and cosmetic applications while higher molecular weights are used in grease, cable compounds and chewing gums. The next time you pick out a new paint color for your home, pop in a piece of chewing gum or apply lipstick, give a quick internal nod to the chemical making such everyday things possible.
Connecting with Soltex: Trade Shows In the Coming Weeks
We’re back! After an extended hiatus due to the pandemic, Soltex is excited to be a part of numerous in-person trade shows throughout 2022. These shows serve as valuable opportunities to connect with both companies and individuals across industries and spaces Soltex participates. Here’s a preview of the upcoming trade shows we are looking forward to attending with more to come later this year.
IEEE PES T&D
When: April 25-28
Where: New Orleans/Ernest N Morial Convention Center
Designed to “drive the future design and development of a reliable, resilient grid,” IEEE PES T&D returns this year in New Orleans. Along with the technical program, numerous exhibitors, and special features new this year like the smart cities pavilion, which will feature a variety of case study exhibits showcasing effective collaboration to make smarter cities a reality.
Learn more: IEEE PES T&D
STLE Exhibition
When: May 15-19
Where: Lake Buena Vista/Walt Disney World Swan and Dolphin Resort
The tribology and lubricants community will come together for the 76th STLE Annual Meeting & Exhibition this year in Orlando, FL. There will be industry-specific education courses offered, as well as application-based case studies, best practice reports, and discussion panels on technical and market trends that occur throughout the trade show.
Learn more: STLE 2022 Annual Meeting & Exhibition
Soltex is looking forward to attending each of the aforementioned trade shows this spring. Not only do they serve as an enormous opportunity for connection with other industry professionals, they also act as inspiration for our team to seek additional innovative solutions to better serve our customers. If you’re planning to attend any of these trade shows, we’d love to connect! Let us know by emailing us at [email protected].
Meet the Team: Inside Sales
Prior to the COVID-19 pandemic, Soltex did not have an Inside Sales model. Now, just a few years later, Inside Sales has become an integral part of Soltex’s continued growth and success in the chemical industry. Our Inside Sales team spend their days selling and promoting our innovative offerings as a chemical supplier remotely. This includes over the phone, online, or via video call, among other methods. The success of inside sales ultimately boils down to building relationships while delivering helpful and important information.
In our first employee profile blog, we introduce Celina Desvard and Matthew Massoud who both work in Inside Sales. Celina is an International Sales Rep who has worked at Soltex for 11 years. Matthew is an Account Manager and IT Software Development Manager and has been at Soltex for seven years.
Celina has been connected to the chemical industry since the very beginning of her career. Her role on the team directly manages and develops new business with international customers. Describing herself as service-oriented, Celina additionally spearheads maintaining and building upon relationships with existing customers and prospects through consistent communication including timely inquiry responses and order follow-ups. She mentions that developing an international presence for Soltex has been challenging but also equally rewarding, she has enjoyed being a part of the creation and growth of a new market for the company. Fluent in both English and Spanish, her language skills have been an asset in the international market. Describing her work experience with Soltex, she says it is “such a positive and open work environment with helpful employees from the bottom to the top of the company.” Based in Argentina, Celina has two young children, and credits her long-term partner Gaston for his unwavering support. In her spare time, she enjoys playing card games and cooking.
Like Celina, Matthew wears many hats within Soltex and shares the same passion for customer service and continuous improvement. A large part of his time goes to managing online inquiries and operating the website Live Chat. He also maintains multiple inside sales accounts and Software R&D and optimization. He explains that “Inside Sales gives us an edge when it comes to providing better service. Our Outside Sales Team is covering the majority of Soltex’s main accounts, so it helps having an Inside Sales team to focus on what can be managed in house.” Outside of work, Matthew enjoys fitness and sports (go Astros!) and dreams of one day exploring Norway. He also has two children, Maya (4) and Maddox (2).
