what is Chemical Leasing info Chemical Man

Chemical Leasing is a business model that intends to shift the focus from increasing sales volume of chemicals towards a value added approach. It may lead to more efficient use of chemicals, and to quality, environmental, and economic benefits.

The producer mainly sells the functions performed by the chemical and the functional units, such as the number of pieces painted, are the main basis for payment. It is a business model in which a customer engages with a service provider in a strategic, long-term contract to supply and manage the customer’s chemical and related services. This model has been practiced by the paint industry for decades. For example, the painting of roads or sidewalks are often charged on the basis of the number of kilometers to be covered, rather than on the litres of paint consumed. This concept is referred to by several different names, such as "eco-efficient services", "product-service systems", "chemical servicizing", "chemical management services", and the "product service system".

Chemical leasing promotes the sustainable management of chemicals. By shifting the focus from increasing the sales volume of chemicals towards a more value added approach, it is an illustration of extended producer responsibility. The chemical company supplies a substance for a specific service, such as powder coating, dyeing or painting, but retains ownership over the chemical, and also advises the user on its best use. The producer owns the machinery, and maintains responsibility over the manufacturing process. As a result, it is in the interest of all parties to use the substances as efficiently as possible.