Think global, act local!

Jean-Luc Lesage, CEO of IFB Refractories and ex-senior executive at Saint Gobain shares how IFB Refractories plays it local to counter the different events that disrupt the global supply chains. 

How IFB Refractories keeps it local in a global market.

The refractory industry operates on a global scale, serving major industrial sectors such as glass, aluminum, and chemicals. These sectors require affordable energy prices, substantial production assets, and reliable sources of raw materials to maintain competitiveness – a need shared by the refractory industry itself. However, the significance of these requirements varies across geographical zones; some countries have access to cheaper energy and abundant raw materials than others. Moreover, the industry faces the ongoing challenges of innovation and the development of regulations, whether technical or qualitative. The increasing emphasis on Corporate Social Responsibility adds another layer of complexity. Meeting these demands requires significant resources and talents, leading to a consolidation of proficient players in the field.

Recent events have highlighted the vulnerability of global supply chains. In under five years, the world has endured a global pandemic, numerous disruptions on key sea routes, and escalating geopolitical tensions between countries that were once established business partners. This swift evolution underscores the importance of constructing a diversified and secure network of suppliers. It also necessitates a reassessment of how to mitigate the uncertainty linked to prolonged delays and price volatility in supply chains resulting from unpredictable events.

IFB Refractories, a well-established manufacturer of insulating fire bricks, has prioritized local sourcing as a fundamental aspect of its strategy. Founded in 1919 in the Centre-Val de Loire Region in France, during a period when resources and transportation were less abundant than today, the company strategically positioned its plant in close proximity to the necessary natural raw materials. This decision ensured a consistent supply and minimized transportation requirements. In light of the growth in production over the years and the heightened demand for raw materials, the commitment has remained unchanged: The company still operates its own quarry and all raw materials are sourced locally or at the shortest possible distance.

The virtuous circle of a local strategy approach

Acting locally is not just about anticipating supply chain disruptions and unpredictable events; it also fosters positive initiatives such as:

• Strong traceability: This is a crucial aspect of IFB Refractories' commitment to sourcing locally. Establishing a robust traceability ensures transparency and accountability in the supply chain. It enables to track the origin of raw materials, to monitor the production process, and guarantees the quality and sustainability of the products.
• Significant reduction in transportation footprint: Maritime freight is responsible for 2.9% of greenhouse gas emissions worldwide, which is nearly as much as the aviation sector. By minimizing the distance traveled to source raw materials and deliver finished products, industrial companies can greatly reduce their carbon emissions and overall environmental impact.
• Local anchoring: By developping a strong local activity, industrial companies not only safeguard their supply chain but also foster a sense of trust and reliability among their suppliers, customers, employees and local communities

Given the uncertainties and challenges posed by the recent events and the increasing volatility of the worldwide context, securing a reliable European base of suppliers has become a strategic move for industrial companies. As history is teaching, sourcing locally is an excellent way to develop stability, quality, and vision for long term businesses.