Jason Cook, Director, Manufacturing and Supply Chain
The arena of chemical research and industrial operations are often characterized by increasing regulations around product approval and rapidly-advancing technologies. In this ever-changing landscape, contract manufacturing is an attractive alternative for companies seeking to produce specialty chemicals at low costs and operate competitively even with fewer resources. Selecting the best chemical contract manufacturer, however, can be a challenging and daunting task. There are numerous decisive factors, such as safety, performance, efficiency, and more, that chemical companies need to consider while choosing their contract manufacturing partner. Besides, they also need to ensure the partners act as an extension of their production team. In addition to these vital requisites, companies are on a constant quest to push frontiers of product superiority and project-data confidentiality. Enter Halliburton [NYSE:HAL].
With an emphasis on quality, Halliburton’s manufacturing services tick all the boxes: safety, flexibility, efficiency, productivity, and cost-effectiveness. And whether it is a customized corrosion inhibitor, a custom flammable blend, or sophisticated, multi-step reaction chemistry, including ethylene and propylene oxide chemistries, Halliburton is committed to providing a variety of quality products to its customers. “We deliver superior service and chemical applications expertise to maximize our customer’s manufacturing and supply chain strategies,” states Larry Ito, global commercial director of contract manufacturing and tolling at Halliburton.
Notably, even before stepping into the specialty chemicals market, Halliburton has been a leading oilfield services company. Through world-class scale-up capabilities, manufacturing in Bayport (TX), and strategic domestic and international blending assets, Halliburton continues to support the oil and gas industry. These facilities are well equipped with state-of-the-art equipment, tools, and laboratories to extend the same services for other specialty chemicals customers. Corroborating to this, the director of the chemical manufacturing and supply chain at Halliburton, Jason Cook, adds: “Our manufacturing plants are providing us the ability to leverage our expertise in moving chemistry from benchtop to commercial production, so that we can respond faster to our customers and their market needs.”
Another differentiating factor for Halliburton is its closely-knit client partnerships. In a time when many companies claim to work as their clients’ business extension, Halliburton takes the idea to a new height that focuses upon awareness of customer’s strategic needs, mitigation of supply chain outages, improvements to production yields while maintaining the highest level of product quality. What’s more? Halliburton offers stringent confidentiality parameters for its clients that want their products to be developed through predetermined manufacturing and production instructions and specifications.
Elaborating on a typical project lifecycle, David DeBlanc, the manager of global business development and marketing for Halliburton’s specialty chemicals business, notes that the process at Halliburton begins with an analysis of a client’s requirements.
Larry Ito, Global Commercial Director of contract manufacturing and tolling and David DeBlanc, Global Business Development and Marketing Manager
On that front, the company’s cross-functional technical team determines if the product can be made safely and in compliance with Halliburton’s global standards. The team also determines manufacturing feasibility, including an analysis of additional equipment if needed. Halliburton strives to responds to client requests within two weeks, thereby providing a price indication and guidance on next steps, which may include a pilot study to produce samples for the project. This allows the customers to verify whether Halliburton’s economic assumptions and the means of producing the product is valid. Once the client validates the result and commercial terms are agreed upon, Halliburton initiates the production process, with focus on Continuous Improvement and striving towards Industry 4.0 principles.
Such an approach to contract chemical manufacturing has undoubtedly helped Halliburton carve its niche in the market. And making it all possible is the company’s highly competent team with a solid background in engineering and an equal measure of creativity and dedication. A case in point would be when a leading multinational chemical organization approached Halliburton to accomplish one of its intricate projects. Having produced the product for more than 30 years, the client had its own traditional strategy of using multiple suppliers to work on various stages of the project. After analyzing the project, Halliburton’s team of experts proposed a working plan, which suggested that the entire project can be successfully completed in its facility. With the help of its world-class lineup of professionals and equipment, Halliburton delivered what it promised. The company simplified the supply chain, becoming a onestop-shop for them and reducing their investment capital in getting the job done. Elated by the result, the client presented Halliburton a multi-year contract.
Striding ahead with similar success stories, Halliburton will continue to manufacture specialty surfactant products, which have garnered a wide range of applications in industries, including oil and gas, agriculture, mining, and more. However, surfactant production poses several challenges as it is produced using very reactive chemicals such as ethylene oxide and propylene oxide. The sale and use of ethylene oxide continues to be an important focus for the producers of EO. And, Halliburton rightly qualifies to utilize ethylene oxide with its extensive vestment in state-ofart production and handling assets. “Our large capital investments will double the available production of surfactant products in our plant within the next couple of months. We are actively seeking additional partnerships that increase shareholder value to both our customers and Halliburton ” says Ito. To further accelerate its fast-growing specialty chemical business, Halliburton is currently building an oilfield chemical plant in Al Jubail, Saudi Arabia. The plant will produce chemicals that will stimulate and boost production in oil wells, pipelines, and refineries. With such significant investments, the company is poised to transform the specialty chemical business around the globe.