ChemConnect Doubles Volume in 2002

22-Jan-2003

ChemConnect Inc. announced business highlights for 2002, a year in which ChemConnect doubled its pro forma transaction volume over 2001 with 16,000 transactions valued in excess of $8.8 Billion USD. 2002 also saw Membership reach more than 30,000 individuals in 150 countries.

The year began with the acquisition of CheMatch, quickly followed by ChemConnect's move to Houston, Texas, in order to be closer to its customer base. Shortly thereafter, ChemConnect acquired the natural gas liquid (NGL) Trading Platform of Altra Energy, known as Chalkboard. These strategic moves were designed to bolster product liquidity and, in October, the company completed the integration of these acquisitions by launching its Commodity Markets Platform, which supports the physical and financial trading of NGLs and commodity chemicals, such as aromatics, oxygenates, and olefins.

Using ChemConnect's online auctions, Members completed more than 1,000 product negotiations. Of particular note was an increase in sell-side auctions-comprising over 40% of the total-as suppliers embraced ChemConnect as a cost-effective sales channel to reach current and new customers. On the purchasing side, a number of customers expanded their use of ChemConnect's online reverse auctions making them an integral part of their procurement process, with the intention of moving more than half of their direct material spend through ChemConnect auctions. In addition, new personalization features allow Members to track only the products they buy or sell. Using these features on the Trading Center, Members actively follow more than 4,700 different products to determine market conditions and identify new business partners around the world.

ChemConnect Connectivity solutions continued to expand in 2002 as the company announced a strategic partnership with GE Operation Services, now Intellitrans, for vendor managed inventory (VMI) tracking and management. Also, ChemConnect and Global eXchange Services (GXS) are exchanging electronic documents through a hub-to-hub connection enabling the transfer messages between thousands of trading partners within and outside the chemical industry. In 2002, more than 30 companies exchanged in excess of 250,000 messages via the ChemConnect hub.

https://www.chemeurope.com/en/news/19265/chemconnect-doubles-volume-in-2002.html