Specialist chemicals manufacturer leases production facility
For chemicals specialist EVONIK, the ability to combine innovative strength and client focus is the key to success. And that is why the partnership with CHG-MERIDIAN works so well, as the experts in project finance and technology management are able to supply a tailored solution for any of EVONIK’s specific requirements. Only recently, EVONIK was faced with a complex challenge, and CHG-MERIDIAN provided crucial support:
EVONIK required a solution for the expansion of a chemical production facility that it owned in Belgium so that it could be used by PROVIRON, one of the company’s suppliers, to manufacture silanes. CHG-MERIDIAN was tasked with preparing the necessary contracts for the sublease so that they met the specifications of EVONIK’s head office in Germany and were valid in Belgium.
As a first step, CHG-MERIDIAN analyzed which lease model was the best fit for the project’s specific requirements.
One particularly important factor for EVONIK was that CHG-MERIDIAN is able to deliver this contractual concept, which was negotiated in Germany, in more than 27 countries, if required. In compliance with the tax and accounting frameworks in each country, of course.
“We negotiated the conditions set by EVONIK in Germany, and our colleagues in Belgium implemented them locally.”
Leasing the facility has zero impact on EVONIK’s balance sheet as it remains the property of CHG-MERIDIAN throughout the term of the lease. This allows the chemicals company to invest in new machinery, or improve existing machinery, without running the risk of overstretching its budget. CHG-MERIDIAN is able to offer EVONIK significant added value by transforming capital spending (capex) into operating expenses (opex).
“CHG-MERIDIAN has created a customized business concept for us that meets our accounting requirements and offers favorable terms. CHG-MERIDIAN’s expertise in industrial goods was a huge benefit,” says Andreas Brauer, Sourcing Manager Mobility at EVONIK.
“My colleagues in Belgium are accomplished finance specialists. Their expertise and my experience in engineering provided the basis for great teamwork,” Pieper adds.
“CHG-MERIDIAN offers us technical and commercial industry expertise and maintains a full overview of EVONIK’s technology investments at all times. We have the peace of mind that the leasing models will match our requirements and budgets to the greatest possible extent.”