Risiko-Management im Einkauf der BASF anhand des Beispiels der Seltenen Erden

Transcription

1 Lynas Corp. - Mt. Weld Mine Risiko-Management im Einkauf der BASF anhand des Beispiels der Seltenen Erden Filipe Fünfgeld Head of Global Procurement Inorganics Oktober

2 BASF s Global Procurement Raw Materials What are we buying? Inorganics Building Blocks Metals Basic products (large bulk volume) Chemicals (containers - small bottles) Aromatics C1 Products Renewables > 20,000 Products > 6,000 Suppliers 22 billion Energy Performance Chemicals All business units Industrial Chemicals All sites Construction Chemicals Additives Plastics 2

3 BASF Management in Procurement Critical Raw Mat Single Source Contract BASF Mgt. Price Volatility Sustainability SLS EHS Compliance Reach 3

4 Critical Raw Materials Early Warning Rare Earths Quantitative criteria Supply - Index for Raw Materials (max score 9) Example Rare Earths Country risk Country concentration Company concentration Criticality: high Qualitative criteria Supply / Demand (current & trend) Non - Substitutability Protectionism Future technologies high / problematic middle / moderate low / relaxed Action required: RETF was set up in September 2010 Due date: Solution until June

5 Rare Earths Supply Did the development alert us? 197,000 t 180,000 Molycorp / Lynas Corp projected light REE production Tonnes of REO 120,000 80,000 US $ 30 US $ 70 China (production) 40,000 30,582 t ROW (production) US $ Modified from: USGS, IMOCA, Lynas Corporation Ltd, Laurentian Bank 5

6 Rare Earths Supply A amply quota over years reduced our attentiveness! mt Quota Earthsquake Japan Demand ROW China has more than 95% market share Chinese government cut export quota by mid 2010 resulting in shortage Prices sky-rocketed 6

7 Sustainability s Product Social Labor Standards Environmental, Health & Safety S c o r i n g Sustainability Y-Axis Supplier / Product Matrix Selected material - Value A B C # 3 # 13 # 124 # 4 # 16 # 17 C B A # 9 # 5 # 3 tons REACH Compliance X-Axis Business Impact (i.e. Single Source ) 7

8 Sustainability s EHS The burden of progress Source: Stern 8

9 Sustainability s EHS Environment, Health & Safety (EHS) assessment based on product risk by hazard (to humans & environment) and country risk Supplier audits on-site, performed and tracked by local EHS experts Advice on measures to be taken, timeline agreed for improvement Follow-up and re-audit after 6 months Pass or Disqualification of suppliers Our suppliers comply with our quality management requirements and act in accordance with the Principles of the Global Responsible Care initiative. 9

10 Management Good reasons to thoroughly analyze risks 1. BASF has a high risk exposure because we directly spend ~1/3 of our turnover for raw materials. 2. A capable Management helped us to make profit even during the financial crisis. 3. BASF Raw Materials Procurement implemented a comprehensive Management system to be prepared for such uncertainties. 4. Management is an integral part of our procurement strategies which helps us to reduce unacceptable risks. 10

11 Management Limits of Management Crude Oil Value Chain Crude Oil Recovery Petroleum Refining Fluid Catalytic Cracking Gasoline Production Distribution to filling stations Consumer Access Dependence on Middle East Rare Earths Value Chain Rare Earths Minerals Metal Oxides Magnet Powders Magnet Production Motors & Generators Vehicle Assembly Sales Showroom Dependence on China Source: Molycorp Minerals Llc. / Prof. Kausch 11

12 Developing a sourcing strategy for Rare Earths Supply/demand balance 2020 Lanthanum Global Balance Chinese Balance RoW Balance Cerium Praesodymium Neodymium Samarium Europium Gadolinium Terbium Dysprosium Erbium Yttrium There will be a battle for Dysprosium and Europium The Chinese will start buying some elements from outside China A relocation of production to China might not help to solve the problem 12

13 Developing a sourcing strategy for Rare Earths A task force from all affected businesses analyzed short- and long-term options. 13

14 Rare Earths Sourcing Strategy Three Pillar Strategy 14

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