Increase in Efficiency and Alternative Raw Material Sources
Symrise uses natural and synthetic
raw materials in production. The natural raw materials include plants
as well as plant and fruit extracts. The synthetic products used
include organic chemicals.
Symrise manages raw materials procurement within the divisions centrally. The divisions negotiate global supplier agreements for the most important raw materials in order to achieve cost-efficient and secure supply. At the present, around 50% of Symrise’s raw materials are procured via European markets or suppliers. The remaining raw materials are procured on the respective global markets. Local production facilities outside Europe cover part of the raw material requirements via local raw materials markets, but intermediate products are also purchased from the main production facilities in Holzminden, Germany.
The raw materials used by Symrise are subject to price fluctuations. We use a number of methods to manage price risks. Symrise has negotiated supply agreements for the bulk of its procurement volume, under which prices are fixed for a maximum period of one year. In addition, Symrise is making increasing use of new raw materials markets, such as those in India, to benefit from the price advantages offered. Furthermore, the Company is succeeding in successively reducing the number of raw materials used.