The Revolution of Chemical Development:

Dixie Chemical Shares Their Vision & Expertise

Although authorized standards and guidelines are not yet a reality, there are select, leading companies who have adopted practices that certainly may become the architecture of future, formal certification in sustainability – one being Dixie Chemical.

Dixie Chemical Company is a 60 year old chemical company with headquarters in Houston, Texas and a manufacturing facility in Pasadena, Texas. Dixie's three main business areas include pharmaceutical intermediates, custom contracting and a proprietary line of industrial chemicals.  Michael Gromacki, Vice President – Operations/Chief Sustainability Officer at Dixie, sat down with Jennifer Jessup, Brand Director – Informex/UBM, to discuss corporate strategy, the future and how InformexUSA can play a role in educating and formulating best practices that very well may become future standards.

JJ: How has the focus on sustainability changed Dixie Chemical’s corporate strategy? 

MG: We do not think of it as changing our corporate strategy.  Many of our products, technologies, and production capabilities currently respond to market and societal needs for sustainability and clean technology. It is really a matter of alignment of capabilities and building effective partnerships.

JJ: Was there a model that Dixie Chemical used in building this corporate green initiative?

MG: We did not adopt one specific business model, but integrate parts of several established models relating to sustainability, innovation and change management.  Key company models we respect include the Interface Model, the Game-Changer from Procter & Gamble, and Market Based Management TM from Koch Industries.  We believe these models bring unique tools to address sustainability in the context of continual improvement and innovation.

JJ: What has been the greatest challenge in implementing sustainability initiatives and solutions?

MG: The greatest challenge is the rapid rate of change in the market, which means suppliers must remain close to their customer and societal trends. This also translates to a risk of business volatility, as seen in boom and bust cycles in biofuels like ethanol and biodiesel.

JJ: Has Dixie Chemical moved beyond managing sustainability risks/issues and moved on to creating revenue opportunities?

MG: Sustainability risk is always there, so we can never move beyond it. We have expanded our vision and now explore opportunities associated with this market shift. Dixie believes it is well positioned in its core capabilities for these opportunities.

JJ: How large is Dixie Chemical’s Sustainability Division?

MG: We do not see sustainability as a Division. As the Vice President of Operations and Chief Sustainability Officer, it is my mission to integrate these activities into our daily activities and core business.

JJ: Do your business partners/customers understand the complexity of sustainability and how have you been able to assist them in their strategies?

MG: Sustainability is a very broad and complex concept. Our approach is to engage our partners or customers to identify both their stated and unarticulated needs regarding sustainability. By bringing solutions to our customers and the market, we have the opportunity to contribute a small part to the larger effort. We do not try to solve the world’s problems, but there is a business role and we can best contribute by helping our customers.

JJ: Have you found that sustainable chemistry is in demand by your customers…are their supplier selections driven by this desire?

MG: In our view, sustainable chemistry is all about balance. There is a role for both synthetic and renewable materials.  We focus on the best overall performance and the reliability and affordability of raw material supply.

JJ: Do you find higher demand in specific end-user sectors? 

MG: We find strong interest for partnership and innovation regarding sustainability in a variety of markets including forest products, coatings, composites, and building materials.  We have also seen growing interest in the Pharma market.

JJ: You have been involved with USBCSD (United States Business Council for Sustainable Development) – of their missions, which have most impacted the chemical industry?

MG: I currently serve as the Chair of the USBCSD. USBCSD members focus on authentic sustainability projects in five key sustainability platforms. We are perhaps best known for advancing the platform of By-Product Synergy in the U.S. and globally. By-Product Synergy is a strategy to convert one company’s waste into a valuable resource for another. This conserves materials and reduces water use and carbon emissions.  In sustainability circles, this concept is summarized as “Waste=Food”. Dixie has strong experience in By-Product Synergy.

JJ: Would you suggest a program or track be crafted for InformexUSA 2010 that literally provides the tools (“how to”) for companies to begin or further sustainability initiatives? 

MG: A program track at InformexUSA 2010 regarding tools and strategies for sustainable enterprise would be very useful. Informex has a diverse participation and this could support a great exchange.  

JJ: Any final thoughts for your customers or potential customers who are trying to understand the trend toward sustainability? 

MG:We find a critical aspect to be collaboration and partnership. If you follow these sustainability trends closely, you will find fascinating and successful partnerships between companies and organizations that would otherwise have nothing in common.

Michael Gromacki
VP – Operations/Chief Sustainability Officer
Dixie Chemical Company, Inc.