„Close the gap and develop a good product range“

In 2020, Axel Schneider began as Managing Director of C&G Pigment Europe, developing the European business for iron oxide pigments for his company. After these five years, the BFT editorial team asked him for an initial interim assessment.

BFT International: Mr. Schneider, you started developing the European business for C&G Pigment five years ago; we reported on that. How have those five years been?

Axel Schneider: The beginning was difficult because the pandemic, which began just at that time, limited our opportunities to operate in the market. As a result, projects developed much more slowly than originally planned. Nevertheless, I can say that we have now caught up well and are gradually achieving our goals.

BFT International: But in recent years, one crisis has followed another: pandemic, supply bottlenecks, the war in the Ukraine, inflation, economic downturn, and most recently the tariff discussions with the USA. How do you assess your current situation?

Axel Schneider: Indeed, just like all other market participants, we have to closely monitor developments in a wide variety of fields. The effects of the overlapping crisis areas can be very different in nature and sometimes even reinforce each other. Crisis management is, therefore, part of everyday life, and we have succeeded quite well in this so far.

BFT International: Does the general situation in China help you with this?

Axel Schneider: The market in China is currently not strong, which is in line with most global markets, which are all very cautious. This means that our Chinese manufacturers are also far from being fully utilized. However, this helps us in so far that production times are shortened and we can fulfill our orders more quickly.

BFT International: What is C&G Pigment doing to counteract all these negative influences?

Axel Schneider: First of all, from our point of view, it is very important to maintain a close dialogue with our customers and also with our manufacturers. Only if we understand where both sides set their priorities, can we live up to our commitment to providing good service. If a customer approaches us about a problem, we know where to start working with our manufacturers to find a solution. We have the expertise for this, both structurally and in the technical requirements of the various applications.

BFT International: This probably also leads to new products; you recently reported on your new range of granulated iron oxide pigments?

Axel Schneider: That‘s right. We‘ve expanded our product range in recent years to be able to respond to our customers even more individually. This applies to both, powder products and spray-dried granules.

BFT International: Granulated pigments for use in automatic dosing systems aren‘t exactly groundbreaking, and manufacturers have been around for many years.

Axel Schneider: So far, so good, but on the one hand, numerous customers use both types, powder and granules, and want their pigment suppliers to be able to supply both. On the other hand, the merger of Cathay and Venator Pigments has led to a reduction in the number of competent suppliers. Customers always strive to avoid becoming too dependent. Therefore, we want to close the resulting gap and develop a good product range.

BFT International: How do you currently assess the market in the European construction industry?

Axel Schneider: Unfortunately, very weak. We‘ve been in crisis mode for three years. Whether in Germany, Italy, Spain or France, all economically strong countries are operating at a low level. Many companies are responding with short-time work to make ends meet. This naturally has an impact on the demand for building materials including pigments.

BFT International: Do you expect anything to change in this regard in the foreseeable future?

Axel Schneider: In my view, it‘s essential that something changes. Housing is scarce, but demand continues to grow. How are young people supposed to start families if they can‘t find adequate housing that they can afford? I‘m rather optimistic that there will be a turnaround for the better in the next two years. However, it needs to develop its own momentum, because in times of tight public finances, one cannot rely on continuous government investment.

BFT International: Mr. Schneider, thank you for the interview!