Analysis & strategy for a chemical process

Abstract

The aim of this master thesis is to investigate the reasons why manufacturers of flat stainless steel products are hesitant to acquire spray-roasting type acid regeneration plants for mixed acid, despite all the economic and environmental advantages. The thesis begins with an overview of the stainless steel market and the market potential for acid regeneration technologies. It continues with a short overview of existing commercialized technologies and their potential. Lastly, barriers to investment from the customers' perspective have been investigated and analyzed.The main reasons for the reserved investment willingness of customers are three-fold: a) lack of information about the economic and environmental impact of the technology, b) weak local environmental regulations which incentivizes the purchase of low-budget and environmentally unfriendly technologies and c) less willingness to invest in new technologies due to the high competitiveness and precarious financial situation of steel manufacturers.A proposal to counteract these three dimensions is then conducted, concluding that a) the lack of information can be mitigated by a strategy of marketing and the diffusion of innovations, b) local authorities could be advised and consequently environmental regulations could be tightened through strategic lobbying and c) an alternative to the traditional sales model could be a service-oriented business model: the BOOT and "Chemical Leasing Concept." This innovative and environmental friendly concept is then adapted to the steel manufacturing industry. The last chapter is a proposal for the launch of an innovation management department in Andritz, but may also be applicable to any other company or organization with a similar structure and culture.