OverviewChemConnect Experiences its Sixth Consecutive Quarter of Increased Volume; Conducts Close to $2.4 Billion in Annualized Transaction Volume
Multiple industries embrace company's e-commerce services and benefit from market prices
San Francisco, CA, April 12, 2001 – ChemConnect Inc., the company that operates the World Chemical Exchange™, offering buyers and sellers of chemicals and plastics a dynamic online marketplace supported by strategic e-commerce services, announced today that it recorded its sixth consecutive quarter of increased transaction volume on the World Chemical Exchange since Q4 1999. The World Chemical Exchange moved close to $2.4 billion in annualized transaction volume in direct raw materials in Q1 alone, a 33% increase over Q4 2000. Average transaction values reached more than $1.1 million.
Factors Contributing to Growth
Significant factors for growth include ChemConnect's flexible technology, which is specifically designed to meet the needs of buyers and sellers of chemicals and plastics across multiple industries.
ChemConnect's e-commerce services include:
- Corporate Trading Rooms: auctions for buyers and sellers of chemicals and plastics that allows them to make decisions, not only on price, but also on delivery terms, levels of service, and product specifications. To enhance its auction offer, ChemConnect introduced E-Procurement Services that offer proven methodologies, in-depth market and e-commerce expertise, and technology to achieve optimum auction results;
- Exchange Floor: where global buyers and sellers negotiate with each other, often for the first time, for lower volume chemicals;
- Commodities Floor: introduced in Q4 2000, a global marketplace where buyers and sellers trade high-volume commodity chemicals in a firm bid/ask negotiation model.
Many customers across multiple industries realized the benefits of ChemConnect's e-commerce services, including:
- A major household products producer saved approximately $700,000 or 15.6% on a oleochemical purchase;
- A manufacturer of petrochemicals increased its profit margin by $275,000 in ninety minutes through an online auction;
- A specialty chemical producer saved more than $800,000 through a reverse auction. The company saved more than six weeks compared to the normal procurement process.
Delivering chemical and plastics buyers and sellers with a fast track to integrate e-commerce into their sales or sourcing process, ChemConnect's solution is browser-based, requiring minimal implementation costs, and with low hurdles for adoption: once approved, companies can begin doing business on the World Chemical Exchange immediately. With Forrester Research predicting that companies will spend an estimated $5.4 million to $22.9 million each to integrate into online markets over the next five years (Forrester Research, March 22, 2001), ChemConnect offers a low-cost alternative that is ready-now and offers immediate benefits.
"We're thrilled to kick off Q1 with another milestone of success, six quarters of growth and counting," said John Robinson, CEO of ChemConnect. "With the economy shifting, industries across the board are seeking creative ways to conduct business efficiently and get the best market prices. ChemConnect offers buyers and sellers of chemicals and plastics a fast track to e-commerce. Our minimal implementation costs provide a quick route to smooth, competitive spot and contract sales and purchases."
For more information, please contact:
Bob Osmond
UpStart Communications
(510) 457-3111
bosmond@upstart.com
Liz Youngs
UpStart Communications
(843) 881-5751
lyoungs@upstart.com
Note to Editors: ChemConnect is a registered trademark of ChemConnect, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.