Dubai | 07.10.2021

Pioneering Technology in Chemical Repacking Solution in Dubai

The chemical industry is a crucial component of the global supply chain. Various industries across the world are dependent on the supply of chemicals for their production- from the food industry, pharmaceuticals, automobile, agriculture, packaging and many more.

“More than 96% of all goods manufactured globally directly reliant on the chemical industry.” – US Department of Energy.

During the past year of numerous disruptions in our supply chains, affecting hundreds of thousands of businesses and, ultimately, all of us as consumers, it has never been a better time for the chemical industry to improve their supply chain system. With that, several resilience strategies have started gaining traction such as localization or nearshoring, data management and the implementation of technology in various areas of the chemical industry including logistics and supply chain and one of the increasingly significant activity nowadays, repacking of bulk chemical products (e.g. drumming).

Bulk in - Packed Goods out, RSA-TALKE Repackaging bulk chemicals at strategic key points in the supply chain gives many advantages to chemical suppliers. It provides them the flexibility to cover the demands of different markets for different order sizes in the fastest and cost-efficient way possible. Recently, the global freight situation and the impact of the ocean freight availability and costs has been driving the industry’s focus to look into localization/nearshoring as a way to increase resilience and speed to market and to fulfil the increasing demand.

Storing chemicals in bulk and large inventory volumes consume a lot of space in a production facility. These spaces can instead be used to expand production, quality assurance or R&D operations. As a resource-efficient and cost-effective option, chemical suppliers can contract activities like packaging and repackaging, storage, inventory management, and distribution to an experienced chemical logistics provider. Even certain value-added activities like mixing and blending can be executed by experienced partners so that suppliers can fully focus on production and/or their trading core activities.

Chemical Tank Container Yard at RSA-TALKE, JAFZA, Dubai, UAE Driven by the vision of the UAE government to help the manufacturing sector increase their GDP contribution from 11% to 25% by 2025, industrial activities in the country are on the rise.

This is evident in the current infrastructure setup in the country, with Dubai hosting over 550 million sq. ft. of available land area strategically located near the biggest port in the Middle East – the Jebel Ali port and numerous airports (Khalifa Airport, Al Maktoum Airport and Dubai International Airport) with access to the main transportation networks of nearly all modes to other key industrial hubs in the region. In addition to that, one of the most sought-after technological developments in the country today, the Hyperloop Dubai, is set to revolutionize the speed and sustainability of goods and mass transport in the country.

Dubai’s industrial sector is foreseeing a growth rate of 51% over the next decade since 2017 and with the new strategies and legislations in place, the chemical market will only be expecting a growth surge in the years to come.

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