Summary: Producing new formulations is time-consuming and expensive. When custom chemical reactions are involved, both the time commitment and expense go up. But there is a better way than keeping things in-house. Formulators can partner with a tolling service provider.
The path from breakthrough concept to market-ready product can seem like a marathon to specialty formulators. Worse yet, imagine running a marathon with hurdles to jump. That is exactly what formulators have to go through. From million-dollar budgets to a boatload of technical challenges, the task of getting to market before a competitor is a tough one. Formulators need innovation.
The most successful companies in specialty chemicals are no longer measured by what they come up with in-house. They are measured by how well they leverage external expertise. That’s where Trecora comes in. With our custom chemical process, known as ‘tolling’, we can turn a traditional outsourcing agreement into an innovation powerhouse.
Partnering with us makes it possible to get around the capital trap, moving from pilot to full production at a pace that simply cannot be matched by in-house expansion. In essence, our custom tolling services accelerate your innovation so that you beat the competition to market.
To Invest or Not Invest?
Innovation is expensive. Formulators know this all too well. Infrastructure costs alone place a huge financial burden on a new project from the very start. For our clients, it often comes down to the question of just spending the money or putting it elsewhere. Is the new project worth investing in?
Consider a new project involving a formulation requiring polymerization or hydrogenation. Achieving complex chemical reactions does not come cheaply. A formulator must consider:
- Total Cost – It could take years and millions of dollars just to design new infrastructure, obtain the necessary permits, and build the actual facility.
- Timeline – The timeline for the new formulation might dictate that a company cannot wait until the next internal budget cycle or space opens up at an existing facility.
- Partnerships – When it doesn’t make sense to produce a new formulation in-house, a formulator can partner with a specialist like Trecora. The specialist becomes the tolling expert with high-spec infrastructure already in place.
We consider partnering with a specialist a plug-and-play solution. Formulators come to Trecora, leveraging our established network of U.S.-based facilities. They avoid not only investing in new infrastructure, but also the associated depreciation and interest costs. Instead of new capital expenditure, they only need to deal with operating expenses.
Mastering Complex Reaction Chemistry
Above and beyond the capital question is the equally pressing question of complex reaction chemistry. Has a formulator mastered it or not? From our perspective, custom chemical processing is a lot more than mere tank rental. It is about leveraging specialized reaction capabilities calling for the strictest safety protocols and expert chemical engineering. In short, we have mastered complex reaction chemistry on behalf of our clients.
We specialize in several critical reaction types that are founded to our clients’ needs. For example:
1. Polymerization
The process of linking small molecules into long, high-value chains is known as polymerization. This process is the heart and soul of so many specialty chemicals developed around the world. From advanced adhesives to specialized coatings, polymerization is the chemical glue that holds everything together.
We have the ability to handle both batch and continuous polymerization. We can dial in a specific molecular weight and the unique performance characteristics a formulator needs. Everything from melting point to viscosity is on the table. Best of all, our customer doesn’t have to master process engineering in-house.
2. Oxidation
Oxidation transforms a basic hydrocarbon into a functional additive. For example, oxidized polyethylene wax has polar groups that allow it to bond with metals and still emulsify in water. Oxidation is notoriously difficult to control, but when mastered, it can be utilized to create all sorts of products. Among them are things like moisture-resistant packaging and no-slip floor cleaners.
3. Hydrogenation
Hydrogenation is a process we use to remove impurities or boost thermal stability via molecule saturation. Hydrogenation also allows us to create unique chemical intermediaries. But working with high-pressure hydrogen requires specialized tools, skills, and a level of safety that cannot be compromised.
Shortening the Timeline
Because mastering complex reaction chemistry takes time, doing things in-house can keep products off the market longer than anticipated. Partnering with a specialty chemical provider can shorten that timeline significantly. This is important, given the fact that the chemical industry tends to reward those who get to market first.
Building a new reaction suite can easily take 18 to 36 months thanks to permitting and commissioning. But what if a formulator can get right to production without having to build a new facility? A tolling partnership with us takes a 36-month timeline and shortens it to 3-6 months. Some timelines can be shrunk down to just a few weeks.
Here’s how a tolling partnership shortens the timeline:
- Rapid Scaling – We can scale up quickly from a 5-gallon lab batch to a 5,000-gallon commercial batch quickly and seamlessly. Our facilities are built to scale as needed.
- Compliance – We already operate under the strictest industry standards and environmental permits. We are compliant long before your project begins.
- Agility – We have the capability to adjust production volumes at a moment’s notice. So even if market demand shifts, there is no risk of underutilizing a multi-million-dollar asset you just spent the last two years building.
As the tolling partner, we handle all the things that can slow your project down. All you have to worry about is getting the formula right. And of course, we are there to help.
Quality Control Is Built-In
There are always concerns about quality control when outsourcing certain processes. Formulators do not want to lose quality. They can’t afford to. We maintain our own laboratories equipped with the latest analytical tools. We rely on statistical process control to monitor all processes as well. Quality control is baked into our tolling services.
If your company is looking at new projects involving complex reactions, you don’t have to go it alone by keeping things in-house. You can outsource to a specialty chemical provider to leverage their existing facilities, expertise come and quality control. That is what we offer at Trecora.
FAQs
What is the difference between tolling and contract manufacturing?
Under a tolling agreement, the customer provides the raw materials and sometimes the formula. The processor (like Trecora) provides the equipment and labor. Under a contract manufacturing scenario, the processor provides everything.
What is the biggest risk in chemical innovation?
The biggest risk tends to be scaling up. Reactions that work just fine in the lab might perform differently during a production run. Some processes become much harder to control at scale, requiring precision engineering to manage.
What is the difference between batch and continuous processing?
Batch processing is a one-off exercise. You produce a small and defined amount. Continuous processing sees raw materials continuously fed into the system while finished products come out the other end.
Does a tolling agreement save money?
In many cases, tolling agreements save money by leveraging existing infrastructure and facilities. Formulators do not have to build new. Every dollar saved can be put back into perfecting the formulation.
