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FERALCO

Flexibility and proactivity
are the recipe for success

Feralco’s objective is to remain the most reliable supplier of water
treatment chemicals in Europe. 2023 was the company’s best year
 ever, and going forward it will be investing to meet the growing

      demand for even cleaner drinking water and wastewater.

On a daily basis, Feralco’s work enables 130 million people to                LOCAL PLAYER FOCUSED ON SUSTAINABILITY
            have access to clean drinking water. As the world struggles
            against the headwinds of inflation, energy crises and war, this   Feralco has managed to maintain its ability to be a local player, with
work is becoming all the more important. It is in troubled times that our     18 production units across Europe. For several years, the company
most basic needs come under the spotlight – and clean water is one of         has been one of the few companies that has been able to deliver
them.                                                                         without any interruptions. Its local presence means products are
                                                                              transported over short distances and the supply network is stable,
    Heading into 2023, Feralco anticipated a turbulent market with            with sustainability always front and center.
major cost increases and disruptions in the supply chain, according
to CEOs Stephen Childs and Ludovic Huitorel. Thanks to high-cost                “Almost all our suppliers are in Europe,” says Ludovic Huitorel. This,
investments to ensure flexibility in manufacturing, delivery, stock-          combined with our large storage units and the fact that most of our
keeping, and the successful integration of two important acquisitions         raw materials are transported by boat or train, means short transport
made in 2021, the company has been able to create a sustainable               distances and low emissions. But we always strive to improve and
business model. Despite the turbulent market situation, Feralco has           reduce our carbon footprint even more, including by performing
managed to deliver to its customers in a punctual and reliable manner.        updated life cycle analyses. We’ve also hired a circularity manager this
As a result, Feralco was able to reap the benefits of its hard work – with    year to further streamline our sustainability efforts.”
2023 being the company’s best year yet.
                                                                              FLEXIBILITY AS A FOUNDATION FOR AN UNCERTAIN
INVESTMENT IN OWN OPERATIONS                                                  FUTURE

As Feralco sees the demand for its products continue to grow, the             As Feralco looks to the future, it is clear that the ability to act flexibly
company is investing even more in its existing manufacturing units. In        will provide the company with an advantage in a turbulent market. But
2023, investments were mainly made in France and in 2024, they will           Feralco needs to maintain its focus on customer relations if it is to
be primarily made in the UK.                                                  bring its customers along on the journey.

  “The clear focus on sustainability, circularity and the legal                 “Although we’ve proved that we’re a reliable and stable supplier,
requirements introduced regarding improvements in water standards             there’s still uncertainty among our customers that we need to address,”
and supply, contribute and will continue to contribute to a greater           says Stephen Childs. “Uncertainty is our biggest challenge for next year.
demand for our products,” says Stephen Childs. “These processes               We must also recognize that times have changed. For example, long-
take time, but we’re investing in our businesses now to meet growing          term price commitments are no longer possible. This can be difficult to
future demand. This means increased production of the right type of           convey and requires new ways of doing business. We need to work with
chemicals, more warehouse space and a broader supply chain.”                  our customers to adapt to a world in a greater state of flux.”

    Feralco believes that the most strategic thing it can do now is to          “Our entire way of working and manufacturing has changed
prepare for large-scale events like the pandemic, the war in Ukraine or       dramatically over the past three years,” says Ludovic Huitorel.
the energy crisis. This is why the company is investing in fundamental       “Processes change every week, and we’re extremely grateful that
aspects of its business to become more flexible, reduce potential risks       our skilled staff are able to adapt. We have to be flexible all the time,
and absorb crises more effectively.                                           because what the customer needs is still the same – when they turn
                                                                              on the tap, water must come out. We act as a buffer, ensuring that the
  “Nobody knows what the world will look like in a few years’ time, and       water continues to flow regardless of what’s going on in the outside
we have to evolve with it,” says Ludovic Huitorel. “What we’re doing is       world.”
increasing our assets and options, such as the supply of raw materials,
production capacity and cooperation between countries within
the company. Our investments have two objectives: to improve our
manufacturing network by expanding capacity and to prepare for the
next crisis. We always endeavour to be more proactive.”

                                                                                  Stephen Childs and
                                                                             Ludovic Huitorel, CEOs

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