The Olympic Games are a world-famous competition, which is regularly held in various sports. Since 1896, the competition has been realized in different countries and amuses the spectators. This year, the Winter Olympics will take place in China. The capital Beijing is already preparing intensively to offer athletes and spectators an unforgettable competition. The Games will be officially opened on February 4 and will end on February 20.
The impact of the Olympic Games on the chemical industry
Already in the past, we have had the experience that major events affect the production of Chinese chemical companies. Official requirements also lead to a temporary reduction in production capacities during the upcoming Olympics. Production is stopped before and during the current competition. In addition to the national holiday week “Spring Festival” impacts to the chemical production can be expected mid-January to the end of February.
The Olympic Games and the Supply Chain
The reduction in production capacity leads to delays in the supply chain. Changes in the freight market have also been observed in this respect. Even if this situation lasts only for a short time, companies who buy their intermediates or finished goods from China should be as proactive as possible in adapting their flow of goods. It is also advisable to build up buffer stock, ideally already in the fourth quarter.
Team Petrex has organised all necessary steps to secure a steady supply to our customers. For any questions please do not hesitate to contact us.
Since we joined the EcoVadis Program in 2017, the role of sustainability is more important than ever. Companies have to raise awareness of issues related to the environment and question their ethical point of view. This forward-looking topic is an important concern for us and we are pleased to have found a rating service that can quantify our efforts. Being sustainable is a necessary measure to save the planet.
Petrex GmbH joins EcoVadis programm
EcoVadis is a certificated service for companies that analyses the sections environment, fair business practice, sustainable procurement, labor, and ethics of a participating company. As a result, an evaluated business gets a scorecard with an overview of its sustainable performance. The rated company can compare its score with the benchmark in their industry. Depending on your score results, you get possible bronze, silver, gold or platinum ratings.
The score shows the transparency and sustainability of Petrex GmbH
As an importer of chemicals and pharmaceuticals, a high understanding of ethics is imperative – not only for our employees but also for every business partner. We have evaluated comprehensive measures to act sustainably in the long term. We are pleased that our efforts and our improvements have been recognized with a platinum medal. In all the areas, we can achieve a rating well above the industry average. This makes us one of the one Top-1%-companies of all the companies rated by EcoVadis. Sustainability is a matter of the heart for Petrex GmbH. We also want to improve continuously in the future. Any questions? Feel free to contact us!
Temporary power cuts in China are regularly organized – especially in the wintertime. There are a variety of possible reasons for this e.g. electricity supply issues or regulations to protect the environment. Since a few weeks, a new power supply cut has been realized. To meet environmental goals, the country’s environmental officer arranged the measure.
Who is affected by the power supply cut?
The regions affected most particularly are Jiangsu, Zhejiang, Shandong, Yunnan, Guizhou and Guangdong. But not everyone is affected by the restriction. Initially, the companies have been ordered to halt production to meet energy consumption targets. This arrangement primarily covers companies in the textile, dyeing, and chemical fiber industries. There may also be temporary power outranges in private households.
Consequences of power supply cut
According to the latest information, production will be impacted for several weeks at least. Every province’s government makes its individual regulations. This influences the availability and price of some raw materials like fibers or phosphor. Short-term product shortages may occur.
Every year over 1.800 primary students, kindergarten children and over 2.000 visitors joined the local soccer tournament in our neighboring city St. Hubert. The annual and three-day-running event already reached cult status in our area.
What is Young masters?
Young Masters is the largest promotional event for children’s football in the region. Children get to know soccer at this cooperation event and thus make their way into this team sport. The little athletes enjoying this time and love the concept “1:0 for children”. Soccer inspires people and connects generations.
The role of Petrex
In his over 30-year-old history, we are a long-term partner of the sports club St. Hubert and proudly support the soccer events financially. We are happy to take our part in the intermediation of precious values for the children and look forward to joining the event.
The FM Global Group provides the Global Resilience Index every year. This tool evaluates and brings together economic, supply chain, and risk quality data from almost 130 countries. As a result, global resilience can be rated validly.
FM Global Resilience Index 2021 for risk management…
The report enables companies to better assess the potential risks a region presents. It provides an important basis for future strategic decisions. The document contains an interactive world map with resilience rankings and scores based on 12 objective metrics. The report 2021 shows unexpected results and is worth a visit. It must be pointed out that pandemic risk is not explicitly measured in the index.
Our findings from FM Global Resilience Index 2021
We gained valuable insights from this report and incorporate them into our corporate decisions. Only a critical risk analysis enables us to conduct morally justifiable business activities.
2020 was a challenge for many companies – not only because of the Corona pandemic. The Munich-based IT provider riskmethods examine each year in their risk report which risks have particularly affected companies. However, the effect of Covid-19 is less than expected.
The risk report and its results…
The impact of the pandemic on global supply chains is focused on in the report. According to riskmethods, the number of risk alerts increased by 57 percent in 2020 compared to the previous year. The consequences were capacity limits, product shortages, and in many cases a significant decline in sales and orders. Suppliers, in particular, came under pressure. Almost every second risk alert in 2020 showed a financial problem among suppliers.
The pandemic causes new risks
The pandemic supply chain problems value for only a small proportion of 4% in the survey, the rest being taken by other risks. The paper lists the top 3 SCM threats for 2020 as changes in revenue and growth prospects, changes in the ownership structure, and changes in key employees. An overview of the 10 most common risks can be found in the figure. Risks are also expected to increase in 2021. Challenges of shipping blockades and also the problem of cybercrime in the Home Office could grow even further in 2021.
EU Climate Legislation becomes increasingly important and the topic does not stop at the EU-borders. Why is it so relevant to all of us?
Importance of EU Climate Legislation
The topic of climate change touches all of us. This is why a new set of rules with defined screening criteria has recently been published – the so-called Taxonomy Regulation. This document is already available to the EU member states. But due to different positions between the Federal Ministry for the Environment, Transport, and Economic Affairs, Germany has not been able to take a position on this paper so far. In particular, Commission proposals on the combustion engine and electricity generation remained uncommented. This stance is surprising since Germany has already planned a phase-out of coal and nuclear power, particularly in the field of electricity generation.
Germany and EU Climate Legislation
Germany’s passive position has been negatively perceived in the European Parliament, and German Members of the Parliament are also denouncing this behavior. These have called on the Chancellery Ministers to show a stronger commitment. This criticism from the own ranks seems to have been successful, and missing comments are to be provided soon.
“Where flowers bloom so does hope”
We wish you a warm spring begin and believe good things are coming.
Our office is located in charming Kempen on the Lower Rhine. The city is established in the west of North Rhine-Westphalia and offers many attractions in the local area. Walking distance from our office, we can reach the medieval village center. Time seems to have stopped here, and medieval half-timbered houses and cobblestones exude an incredible enchantment. The many small streets and alleys, as well as lovingly landscaped green belts, invites you to stroll and relax. It’s worth a visit!
The Ever Given’s trap had far-reaching consequences. The giant container freighter, which had blocked the Suez Canal for six days, is now on the chain. Egypt claims damages from the Japanese owner. The vessel blocked the Suez Canal for about a week in March. But not only the global supply chain was constrained by this situation, but also the operators of the Suez Canal themselves suffered large losses. The Canal Office had said that Egypt had lost between 12 and 15 million dollars a day because of the blockade. As a result, they are demanding compensation of 900 million dollars for the blockade of the Suez Canal. Until the sum is received, the container ship is seized as security. We will keep you posted when the vessel will start moving.