Jason Cook, Director, Manufacturing and Supply Chain
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 with fewer resources. Selecting the best chemical contract manufacturer, however, is a challenging task. There are numerous decisive factors, such as safety, performance, efficiency, that chemical companies must consider when choosing their contract manufacturer. They also need to ensure the vendor acts as an extension of their production team. In addition to these prerequisites, 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 specialty chemicals manufacturing services tick all the boxes: safety, flexibility, efficiency, productivity, intellectual property protection, and cost-effectiveness. Whether it is a customized corrosion inhibitor; a custom flammable blend; or a 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 customers’ manufacturing and supply chain strategies,” states Larry Ito, global commercial director of contract manufacturing and tolling at Halliburton.
For more than 100 years, Halliburton has led through different market cycles by taking care of customers and developing value-added relationships. Through world-class specialty chemicals scale-up capabilities and manufacturing at their plant in Bayport, Texas, as well as strategic domestic and international blending assets, Halliburton continues to support the oil and gas industry. These facilities contain state-of-the-art equipment, tools, and laboratories to extend the same services for specialty chemicals customers in other industries. Jason Cook, director of chemical manufacturing and supply chain at Halliburton, adds: “Our manufacturing plants 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 customer relationships. In a time when many companies claim to work as their customers’ business extension, Halliburton excels at this by focusing on their customers’ strategic needs, mitigating supply chain outages, and improving production yields while maintaining the highest level of product quality and safety. What’s more? Halliburton offers stringent confidentiality parameters and systems to protect intellectual property for customers who want their products to be developed through predetermined manufacturing and production instructions and specifications.
Larry Ito, Global Commercial Director of contract manufacturing and tolling and David DeBlanc, Global Business Development and Marketing Manager
Elaborating on a typical project lifecycle, David DeBlanc, 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 customer’s requirements. 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 if additional equipment is needed. Halliburton responds to customer requests quickly, providing a price indication and guidance on next steps, which may include a pilot study to produce samples for the project. This allows the customer to verify whether Halliburton’s economic assumptions are valid. Once the customer validates the result and agrees on commercial terms, Halliburton initiates the production process.
Halliburton’s approach to contract chemical manufacturing has undoubtedly carved a niche in the market. 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 is when a leading multinational chemical organization approached Halliburton with a complex project. For more than 30 years, the customer produced their product with multiple suppliers, each working on various stages of product development. After analyzing the project, Halliburton’s team of experts proposed a working plan that the entire project could 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 and reduced the customer’s investment capital by becoming a one-stop shop. Elated by the result, the customer presented Halliburton a multi-year contract.
Halliburton will continue to manufacture specialty surfactant products, which have a wide range of applications across various industries, including oil and gas, agriculture, mining, and others. Surfactant production poses several challenges as it is produced using very reactive chemicals such as ethylene oxide and propylene oxide. Halliburton rightly qualifies to utilize ethylene oxide with its extensive investment in state-of-the-art production and handling assets. “This quarter, we are bringing online a significant capacity expansion to double plant capacity of surfactant products. We are actively seeking additional business to increase shareholder value for 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. These significant investments allow Halliburton to provide differential customer value in both hemispheres.