HELPING CHEMICAL & PHARMACEUTICAL CLIENTS GROW IN ASIA
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1 HELPING CHEMICAL & PHARMACEUTICAL CLIENTS GROW IN ASIA
2 AN EXCITING AND DYNAMIC MARKET: Whilst sales of generic medicines are booming globally, researchfocused biopharmaceutical companies are investing in their R&D programmes to try and produce a small volume of breakthrough products that will shape the future of the pharmaceuticals market. Demand for these new products will likely come from rapidly emerging markets and it s no surprise that some of the most innovative current research is emerging from markets like China, India and Singapore as Asia based R&D centres become the norm rather than the exception. Within the global chemical and pharmaceutical industries we re also seeing more consolidation with a steady increase in Mergers & Acquisitions activity, as well as tighter regulations in areas including energy conservation, water treatment and waste minimisation. This changing market environment is driving different business strategies within both sectors. Organisations are increasingly outsourcing secondary processes such as procurement, property and facility management and engineering and design, as they seek to respond to the growing cost-pressures and a desire to operate more efficiently. Similarly, manufacturing is on the move again both towards Asia and within the region itself. A decade ago China ranked fairly lowly in terms of demand for pharmaceutical products however today it s regularly in the top 5, competing alongside traditionally strong markets like Germany and France. Within the Chemicals sectors it s a similar picture with recent research from The Boston Consulting Group indicating that approximately 2/3 of total global demand for Chemicals will come from within Asia. CallisonRTKL 2
3 UNDERSTANDING A BROAD RANGE OF CLIENT NEEDS: Although the business environment in Asia is radically different to Western markets, multi-nationals rightly expect the same quality levels of service delivery and a high return on their capital investments. To achieve this international corporations need truly global partners that have in-depth local knowledge but who at the same time, understand global best practices in areas including risk management, project governance and corporate social responsibility requirements. Dramatic portfolio shifts in the pharmaceutical sector, characterised by deals between Novartis and GSK, Merck and Bayer, are becoming more common as companies seek to secure their future positions in a fiercely competitive market. Businesses are under immense pressure from shareholders to deliver attractive returns yearon-year. This creates a need for greater certainty of return from capital investment in new assets including R&D and manufacturing facilities. This focus on delivering greater shareholder value is also driving a sharper focus on new and innovative ways to reduce operational expenditure. Across many parts of Asia today, multi-nationals are investing in a number of large-scale industrial and infrastructure assets and are paying more attention to environmental risk mitigation and social impact evaluation. For both the chemical and biopharmaceutical sector this is an important development; they will need to have a strategy and the necessary governance in place to manage and minimise environmental liabilities, and ensure the most beneficial re-use of valuable resources such as water and energy in order to deliver a higher return. 3
4 HELPING CLIENTS ACROSS THE LIFE CYCLE OF A PROJECT: Arcadis Services Client Need Planning the Asset Creating the Asset Operating the Asset Redefining the Asset Delivering capital investment programmes on time and budget Portfolio/ Programme Management Cost Management Programme/ Project control (planning, schedule, cost, contract management & administration) Construction Management & Supervision Designing firstclass buildings and infrastructure to support business strategy Architecture, Design and Engineering for R&D Office Buildings Civil and Utilities Design and Engineering for Buildings (geotechnical, mechanical and electrical) Protecting safe business investment, operating and reputation Green building Design Certification EIA and EISHA Transactional Services in M&A Design Management and Assurance for Infrastructure and Building Designs Product Stewardship and Chemical Risk Evaluation Analysis, Evaluation and Managing of Risk Hazardous Material Identification & Management Turning environmental challenges into a competitive advantage Safety Management Services (H&S plans, audits and management systems) Site selection, Evaluation and Feasibility Studies In-situ Remediation Treatment Ex-situ Remediation Treatment Exacavation and Offsite disposal Environmental Investigations (soil, groundwater, surface water and sediments) for Remediation Geotechnical Services for Environmental Remediation Ensuring access to required utilities and securing utility supply Supply Chain Organisation & Management/ Capacity and Resource Planning Efficiency and Productivity Improvements Sustainable Water Management: Optimise Supply, Usage and Disposal 4
5 DELIVERING SUCCESSFUL CLIENT OUTCOMES IN ASIA: ROCHE PHARMACEUTICAL, CHINA: Roche invested in a significant expansion of one of their R&D campuses as it sought to boost production capacity in order to respond to an increased demand for their products in both Asia and across the globe. Arcadis was appointed to ensure that the client s high standard were carried through in the Phase II expansion of the operating site. In order to achieve this, we mobilised a team of experts from within our China business and from across the globe. This included leading professionals in Project Management, Document Control, Scheduling, Lead Engineers and Quality Controls, to help Roche Pharmaceutical meet its goals. The Benefits: Successful placement of key personnel augmenting Roche Pharmaceutical staff during the duration of the project has contributed to the current success of the Phase II of the project Met aggressive schedule targets as a result of effective communication and coordination among project teams Our programme-level management approach to the scheme ensured the highest quality of outcomes were delivered Optimised energy performance and minimised environmental impact - projected energy consumption for new manufacturing accounts for only a few percent of existing manufacturing facilities. The level of insight that Arcadis could provide by combining their understanding of our business needs with their expertise in project management and engineering has been crucial to the success of our Site Master Plan projects. By transferring leaders from Europe to Asia who are familiar with previous projects manufacturing extension project, Arcadis really went the extra mile in providing certainty of outcome which is what we need from a global partner. Dr. Hans Tanner, Head Project Management China 5
6 B.BRAUN, VIETNAM: Arcadis was appointed by B.Braun to provide full quantity surveying services for the 12,000 sq. m medical building in Hanoi, Vietnam, with the first phase capacity 15 million pieces/year and the second phase raised to 150 million/year. Arcadis managed the complete cost control and construction realisation from beginning to end. By developing the Cost Estimate and cash flow, conducting procurement advisory and tender analysis, the plant was successfully built on a tight time schedule. The Benefits: Restrained budget overruns in difficult variable project settings and conditions Timely delivery so the client could meet growing market demands Solid partner relationship between Arcadis and B.Braun. ASTRAZENECA, CHINA: Over the last 15 years the Arcadis cost management experts have partnered with AstraZeneca to provide technical support on all of the client s major expansions in China. These projects have covered a wide range of facilities including workplaces, pharmaceutical plants and extensions, and packing/ receiving centres. Our comprehensive commercial management approach enabled us to offer pre and post contract commercial management advice as well as strategic cost estimating, reviews and monitoring. The Benefits: Provided commercial skills and expertise for over RMB900 millions of investment, with a total floor area of 130,000 m2 Agreed a project management framework covering EMEA to deliver the first ever project in South Africa. 6
7 CONFIDENTIAL CLIENT, CHINA: One of the world s leading pharmaceutical businesses acquired a piece of contaminated land in Nantong, China. In order to enable imminent plant expansion, effective remediation technology and solutions were urgently required. Arcadis coached a competitor and various subcontractors, re-assessed the remediation strategy, and were instrumental in delivering this project on-time and significantly under the proposed budget. Our remediation approach was to surgically target hotspots in the soil and smear zone, plus intelligent use of on-site validation tools and techniques. We also ensured compliance with regulators and internal controls to avoid long-term liabilities. The Benefits: Project brought back on schedule by collaboration and one-team approach Two months delay recovered Remediation delivered swiftly, enabling the new-build programme to start as planned No additional cost for treatment of groundwater remediation following risk review Significant overall saving as a result of technical knowhow and diligent cost and programme management 37% cost saving realised: actual US$285K vs. budget US$450K. ABOUT ARCADIS: Arcadis is the leading global Design & Consultancy firm for natural and built assets. Applying our deep market sector insights and collective design, consultancy, engineering, project and management services we work in partnership with our clients to deliver exceptional and sustainable outcomes throughout the lifecycle of their natural and built assets. We are 28,000 people active in over 70 countries that generate more than 3 billion in revenues. We support UN-Habitat with knowledge and expertise to improve the quality of life in rapidly growing cities around the world. 7
8 E CONTACT Matthias Boos Head of Chemical & Pharmaceutical Sector, Asia T E Arcadis
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