About packaging - For packaging

Interview "Alastian: way of buying polymers via Internet" (17)

28.05.2007

Basell, the world leading producer of polypropylene and polyethylene, presents Alastian - way of buying polyolefins via Internet.

Alastian is 100% owned by Basell and has been founded in April 2004 as part of the Polyolefins Europe Business for those converters who know which grade they need and how to convert this material. Due to this success in Western Europe, Alastian have launched similar activities in North America and Turkey already last year.

Since the end of 2006 Alastian was launched in Russia and CIS.

Alastian offers more than 80 grades of polyolefins including LDPE as well as MDPE/HDPE for Injection Moulding, Small/Large Part Blow Moulding and Film applications and also comprehensive portfolio of Polypropylene with Homo, Heco and Raco grades for Blow Moulding, Thermoforming, Extrusion, Injection Moulding and BCF.

The key benefits of Alastian are:
- Transparent and aggressive pricing
- Cumulative volume discount to maximize savings
- Ability to compare prices of grades in an instant
- Online ordering - fast, reliable and fully secure 24 hours per day
- Open account payment terms

In this interview you have an unique opportunity to put your questions about Alastian to General Manager of the project - Mr Filip Van De Vliet. Within two weeks (since May 28 to June 10) Mr Filip Van De Vliet is going to answer all your questions which can be asked via form below.

 

 

 

 

Text of the interview is available in English and Russian language.

1. Eugeniy Vande-Kergof, Ukraine

Is it possible to supply Basell grade MOPLEN HP 540J to Ukraine? Now we are consuming this grade and are satisfied with the results. We are interested in the price for this grade. Our month consumption is near 40 MT and it’s going to be increased by 60% in the nearest time. Thank you.
 
Filip Van De Vliet, (Alastian) 
The Moplen HP 540J grade, typically used for thermoforming applications, is indeed part of our Alastian product portfolio. We suggest that customers interested in the Alastian business concept and the Alastian product offering register on our website where, at their convenience, they can check on-line product availability and product pricing information for the grades they are interested in.
 
2. Kamolkhon Isaev, Uzbekistan
When Alastian will be available for Uzbekistan and Uzbek customers could place orders?
 
Filip Van De Vliet, (Alastian) 
At the moment among CIS countries only customers from Russia , Ukraine and Belarus could register and place orders. But we will start this process of adding the missing CIS countries immediately, and starting from the next week all CIS customers, including Uzbek companies could be Alastian customers.
 
3. Ekaterina Morozova, Moscow
Is there any information about the efficiency and results of working of Alastian model? How many companies in the world and particularly in Russia placed their orders (bought) via Alastian?
 
Filip Van De Vliet, (Alastian) 
Since Alastian was launched in Europe in April 2004, its success has been quite spectacular. At present we have more then 3000 registered customers of which the vast majority are regularly buying. In the 2004-2006 period the Alastian business has quadrupled. Lately we have extended our geographical reach to North-America and Turkey where the Alastian business is also developing successfully.
Since we launched our business in CIS about 6 months ago at the occasion of a market conference in Alushta, Crimea , the number of customers registered at Alastian has been steadily increasing. In order to support this fast growing customer base we have installed an Alastian focal point in Moscow early this year (Roman Chepushtanov tel +7 495 641 3322, +7 910 490 1094 ). Today it is too early to do an evaluation of the Alastian model in CIS but the feedback we are getting from the market is positive and promising and makes us believe in the value of Alastian as an innovative business model for the CIS polyolefines market.
 
4. Viktor Pugachev, Unipack.Ru, Moscow
You plants are located in 20 countries and your company sells you products to more than 120 countries. Which industries the main consumers of your products, could you give some figures? And what is the share of packaging industry? And one more question: from which plants do you supply products to Russia?
 
Filip Van De Vliet, (Alastian) 

Alastian offers a specific portfolio of PE and PP commodity grades which are widely used in a number of standard applications. Alastian grades are produced in Basell plants meaning they have a high and consistent quality. We ship to Russia in principle from all our European plants, but since our model is based on optimized sourcing and charges actual freight cost, the most beneficial offering will often come from the Polish plant in Plock .

Our pricing mechanism can be summarized as follows:

Initial price

The initial price is the price for the product ex works in bulk. For deliveries in bags we apply a surcharge. This base price is then reduced by the

Volume and loyalty discount

The volume discount is a rebate growing with every order and is always based on the total purchase from Alastian over the last 12 rolling months.

For regularly buying customers (every month) we give an additional loyalty discount in addition to the volume discount. Based on the volumes and the buying behaviour customers can build up an interesting and immediate discount on the Alastian base price.

Transport cost

For transport to the customer we add on the actual freight cost from our plant to the customer. This charge is based on the real cost of transport and we only pass on to the customer what we pay to our haulier. The system does not foresee delivery ex works yet, but this is being worked on.

Payment term adjustment

We offer only the following payment terms: cash in advance, 15, 30 and 60 days end of month. The standard payment term is 15 days end of month. For longer payment terms we charge an extra fee. For cash in advance we grant a discount of 1%. With every order the customer can decide which payment term he would like to use.

This leads to the Final Price

In case you need technical support and require the visit of a technical service person we will charge you separately for this visit.

 
5. Liza Solomina, Tver
What are your main advantages in comparison with local producers? How competitive your prices in Russian market in comparison with local producers taking into account possible discounts? Or you could only compete with those grades which are not produced in Russia?
 
Filip Van De Vliet, (Alastian) 

Alastian benefits from the fact that Basell is the world’s largest producer of Polypropylene, a leading supplier of Polyethelyne and advanced Polyolefins products, and a global leader in the development and licensing of polypropylene and polyethylene processes and catalyst.

The high quality of the products, the great brand-name and the marketing network are of direct advantage for Alastian and its customers.

Basell is continuing and expanding a technology heritage that dates back to the very beginning of Polyolefins Industry. This ensures that Alastian is not only offering products against a competitive price, but also with the necessary technological advantage to remain competitive on a sustainable basis. For us, customer relation management is a proven and highly valued concept.

Alastian can be more competitive than other suppliers/traditional channels because our offer is based on a standardized product and service portfolio. To implement and keep this standardization we have established a number of business rules :

The minimum volume per order is a full truck load per grade. We are not able to accept partial shipments.

The order placement needs to be at least 5 working days prior to delivery. E.g. earliest delivery for an order placed on the 9th of October is the 13th of October. Rush orders are not possible.
Orders can only be placed within a time window of 30 days. This means on the 12th of October you can place an order for delivery until the 12th of November.

As order changes are creating additional cost we charge a flexibility fee for each order change orcancellation.

The standard payment term in WE is 15 days from the end of the month. Other payment terms as 30 or 60 days are subject to an additional fee. For cash in advance we grant a discount of 1%.
Alastian The benefits for our customers

Despite these strict business rules, the Alastian concept and the online selling offers numerous advantages to our customers :

1. Alastian prices are competitve due to

> unbundled services, meaning you pay for a standardized package, only in case of extras
you pay an extra charge

> the immediate discount is growing with every order and is always based on
the purchase of the last 12 months ; on top of that we can offer a loyalty discount

> transport will be charged at real freight cost

2. Alastian gives access to a high quality commodity portfolio at attractive prices

3. Alastian platform provides customers with actual market information online

4. Ordering/pricing window 30 days gives you the possibility to fix prices over 30 days.

5. Alastian stands for reduced complexity and an easy to use/convenient tool

 

6. Gulyaga Abishev, El-Plastik LLC
Our company is quite big converter of different types of polymers in Azerbaijan (LDPE, HDPE, PP and some other polymers). Our month consumption is 300-400 MT. And we would like to cooperate with you as you are a supplier of polymers with low prices.
 
Filip Van De Vliet, (Alastian) 
You could either send us list of PP and PE grades you need or check on our web-site ( www.alastian.ru ). If you find grades you are interested in, you could register and check current prices taking into account your volume discount any time.
 
7. Kvitkov G.S, Most-1, Moscow 
We need fat-alcohol-proof copolymer (ionomer) for the heat sealing in producing of combined materials based on aluminum foil. Can you supply?
 
Filip Van De Vliet, (Alastian) 
Unfortunately, we do not produce ionomers. We produce and offer low, medium and high density polyethylene and different grades of polypropylene (Homo, Raco, Copolymers)
 
8. Eugeniy Mikhailovich, Moscow 
Do you have analogues of Russian polypropylene grades 01030 and 01130 in your portfolio? If yes, are the prices comparable taking into account delivery costs and customs duty?
 
Filip Van De Vliet, (Alastian) 
From Alastian portfolio these grades could be an equivalent to:

PP 01030 (MFR 2,9-3,5):

  • PP HP3-4 / Moplen HP500J
  • PP HP3-2 / Moplen HP540J
  • PP HP3-3 / Moplen HP456J

PP 01130 (MFR 10-15)

  • PP HP12-1 / Moplen HP500N
  • PP HP13-1 / Moplen HP552N

As to the prices comparability, our prices are dynamic that means that it reacts on current market situation and could be changed quite often. So we recommend to register on our web-site and check the prices so that you could compare and estimate their attractiveness.

9. Eugeniy Metlenkin, Evrazium, Moscow 
Which grades of nucleated or clarified polypropylene Alastian offers for Russian market?
 
Filip Van De Vliet, (Alastian) 
In our product portfolio we have the following clarified or nucleated grades of polypropylene:

Random copolymers:

  • Alastian AT PP RP75-1 ( MFR 75) - nucleated
  • Alastian PP RP35-1 ( MFR 35) – clarified
  • Alastian PP RP2-1 ( MFR 2) – clarified
  • Alastian PP RP12-1 ( MFR 11 ) – clarified

Homopolymer s :

  • Alastian PP HP53-1 ( MFR 53) – nucleated
  • Alastian PP HP5-1 ( MFR 5,5) – nucleated
  • Alastian PP HP35-5 ( MFR 35) – nucleated
  • Alastian PP HP35-2 ( MFR 35) – nucleated
  • Alastian PP HP35-1 ( MFR 35) – nucleated
  • Alastian PP HP3-2 ( MFR 3,2) – nucleated
  • Alastian PP HP23-1 ( MFR 23) – nucleated
  • Alastian PP HP22-2 ( MFR 22) – nucleated
  • Alastian PP HP20-2 ( MFR 20) – nucleated
  • Alastian PP HP12-3 ( MFR 12) – nucleated

Impact copolymers:

  • Alastian AT PP EP6-1 ( MFR 6) – nucleated
  • Alastian PP EP50-1 ( MFR 50) – nucleated
  • Alastian PP EP48-1 ( MFR 48) – nucleated
  • Alastian PP EP44-1 ( MFR 44) – nucleated
  • Alastian PP EP35-2 ( MFR 35) – nucleated
  • Alastian PP EP21-1 ( MFR 21) – nucleated
  • Alastian PP EP100-2 ( MFR 100) – nucleated
  • Alastian AT PP EP100-1 ( MFR 100) – nucleated
  • Alastian PP EP1-1 ( MFR 1,3) – nucleated

For more detailed information about these grades, please visit our Web-site www.alastian.ru

10. Alexander Shimpf, Chernomorpachat, Ukraine 
We are buying BOPP film and one-layer film and interested in regular supplier (quantity – more than 60 MT per month)
 
Filip Van De Vliet, (Alastian) 
Unfortunately we produce raw materials (polypropylene) for BOPP film production, not the film
 
11. Andrey Shilov, Kristall Technology Co Ltd.
Is there an opportunity to buy later version of grade Clyrell RC 514L for injection moulding now? What is the current price for this product?
 
Filip Van De Vliet, (Alastian) 
Unfortunately exactly this grade is not in Alastian portfolio, so you should contact Basell directly concerning this grade.
 
12. Jean Bergman, France
Mr Filip Van De Vliet, уou are taking an active part in the interview on Unipack.Ru. But your blog on Alasian is abandoned. Why?
 
Filip Van De Vliet, (Alastian) 
Very valid point, at this point in time the Blog, although important, has not received my top priority. I will do my utmost to improve there!
 
13. Anatoly Mikhailov, Siberian region
Is there plans of opening representative office of your company in Siberian region of Russia? If yes, when can it happen? Thank you.
 
Filip Van De Vliet, (Alastian) 
It is not in our short term plan to open a representative office in the Siberian Region of Russia. However, we have opened a branch office of Basell Sales & Marketing in Moscow that can provide all necessary services.
 
14. Abaydulin S., EliPak, Novosibirsk
How could buy small lots of your products on regular basis? We are interested in HDPE and LDPE film grades and are ready to buy at the moment from 3 to 5 Mt per delivery
 
Filip Van De Vliet, (Alastian) 
We have quite many HDPE and LDPE film grades, but unfortunately the minimum quantity you could order via Alastian is 20 M.
 
15. Oleg Savin, Unipack.Ru, Moscow
Buying raw materials via Internet is quite comfortable as it's save time. I would like to know how many people support the work of the system and where they are located? And what is the share of Alastian sales in overall Basell sales?
 
Filip Van De Vliet, (Alastian) 
Together with our customers w e have learned over the past 3 years that buying and selling commodity products over the inter net indeed is very convenient . Transactions happen on-line and automatically with very little manual intervention ; all customers need to "connect" is a fast and robust Internet connecti on . In order to support our customers there is a small Customer Service desk based in Wesseling, Germany , the location of Basell's largest integrated olefin/polyolefin site. On top of that there are a few regional Concept Sellers who hel p onboarding customers by explaining our systems when required.

Alastian sells a growing share of the commodity volumes of Basell

16. Mikhail Nefedov, Ukraine
I read that within the work of the conference "Innovations of polyolefins market" in October 2006, where official ceremony of launching Alastion in CIS took place, the first registered buyer was awarded. What was the prize, if it is not a secret for the Russian buyer? And were there the same award for customers in other countries, for example in Ukraine?
 
Filip Van De Vliet, (Alastian) 
Yes, it's true that the official launch of Alastian took place on the conference "Innovations of polyolefins market" organized by IC Business company ( www.icbiz.ru ) in October 2006, but we awarded there not the first buyer, but the company which first in CIS registered in our portal. And, by the way, it was Ukrainian company and they got an Ipod as a prize as far as I remember. We also usually conduct lotteries on our booth during every big polymer exhibition in CIS where we take part, so you are welcome to join.
 
17. Dmitriy Epifanov, Polimer-Plus, Russia
Is there any difference between Alastian prices and Basell prices?
 
Filip Van De Vliet, (Alastian) 
The main difference between Alastian and Basell prices is that Alastian prices are dynamic. Basell prices are settled once per month and they are fixed within next month, while Alastian prices could dynamically react on current market situation taking into account current demand and supply level, raw materials prices, LME quotes for PP and PE, etc. Such pricing gives better feeling of the market situation and satisfies market needs.

As to the level of prices, in certain moment Alastian prices could even be higher than Basell ones, but usually the situation is opposite. The reason for such attractive price is that the customers pay only for what they need.

That’s why within this interview I avoided giving exact prices for certain grades because prices could be changed even several times a day (surely it is not related to the prices when you are already placed your order. In this case the price is fixed. And it’s one more advantage of our model that you could fix your price for the goods with delivery one month later which will ensure you of price increase risk). That’s why we recommend to those customers who are interested in Alastian just to register on our web-site (www.alastian.ru) and check our prices any time they wish and estimate their competitiveness.

 


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