How to Minimize Process Safety Risk on Specialty Chemicals Contract Manufacturing Purchase for Resale Operations

One of global chemical companies new challenges for the next years is how to manage and mitigate risks in Contract Manufacturing Operations, specially PFR (Purchase for Resale) for specialty chemicals and the associated difficulties are found such as lack of supplier information, on-site auditing difficulties to perform, low expertise on this subject and high costs involved. In Latin America there are many global chemical companies that relies on local chemical companies to produce their products through toll manufacturing contracts.

 The types of risks presented by PFR Operations are very similar to other Contract Manufacturing Operations such as tollers: Human Rights; legal aspect; poor products quality delivered, impact to Company brand, reputation and/or customer´s satisfaction and Process Safety risks.

Despite the availability of preventive approaches and procedures, the effective practice of risk analysis and mitigation for PFR operations is still a challenge for the companies regardless the area of expertise.

This work presents an approach that companies can use to face the current challange of managing contracted companies that provides chemical production services and keep them under Process Safety Management requirements and expectations.