Using technological strengths to facilitate value creation

Azelis expands alliance with Japanese chemical companies.

Azelis, a chemicals distributor headquartered in Luxembourg, sees Asia as one of its most critical markets. The company finds "potential of growth" also in Japan, a market generally regarded as mature. We ask Mr. Laurent Natal, its CEO & President Asia Pacific, about Azelis' business strategy for future and other issues.

SK: How do you characterize Azelis' business?

LN: We are a distributor of specialty chemicals and cutting-edge materials for customers in the life science sector and industry. Azelis is characterized by marketing activities based on our technical capabilities. Our business had focused on Europe. Since 2012, when we started business operations in China, we have been working to develop the Asian market in earnest.

SK: What is the basic direction of your strategy?

LN: Our basic policy is 'asset light'. We own no tank or container ourselves, and outsource logistics. On the other hand, we are absolutely confident of our technological capabilities. Some 60% of our marketing staff have degrees in chemistry, pharmacy, food science, and others. Azelis has set up 30 technical laboratories around the world, and eight of them are located in the Asia Pacific region. They are working on product formulation and compounding of raw materials, as well as technological trouble solutions. They have strengths in linking trends of the market with suppliers to create new added value. That makes us something more than a mere trading company.

SK: Azelis is active in expanding business in Asia.

LN: Having advanced into the Chinese Market, we set up a technical laboratory in Shanghai for studying personal home care and food. A coating laboratory also comes into service soon. Technical laboratories have been in India, Thailand, Vietnam, Australia, and Malaysia, as well. Our business in Asia has been growing steadily, at an annual 40% in average since 2012.

SK: The economy is generally slowing down in Asia. What impact do you feel?

LN: In fact, the economy is slowing down in the Asia Pacific region. But an appropriate team with a relevant approach to the market could deliver growth. Even in economies that shows virtually no growth, Azelis keeps growing. That is also the case in Japan, the most developed economy in the region. We expect another 20% or more growth in business there next year.

SK: What is the key point in your business in Japan?

LN: We founded Azaleas Japan in 2013. Japan is a mature market, but pursues innovation. By supplying the Japanese market with cutting-edge materials from overseas, we believe we can help create new value. We have also started initiatives for sourcing products from Japanese chemical companies working to develop a variety of innovative materials. An example is a business alliance we have formed with Showa Denko for the marketing of cosmetics materials in the European market. We will expand direct transactions with Japanese manufactures and support them in expanding their distribution channels in Asia, EMEA (Europe, Middle East, and Africa), and the United States.

Interview by Satoshi Kiyokawa.
Featured in Japan Chemical Daily. Read the original article here.