The global chemical manufacturing industry is undergoing a period of major disruption and transformation driven by many factors, from the pandemic to increased costs of feedstocks. Where obviously the decoupling of the global supply chain and the transition towards net-zero emissions are merely some of the factors affecting how businesses today plan and invest for their future.
Alongside with that, a major trend the world is facing, is adopting digitalization and artificial intelligence (AI) into all areas of a business, fundamentally changing how products are both conceived and manufactured. A 2021 survey conducted by McKinsey found that AI adoption in business is on a steady rise, with 57% of respondents in emerging economies reporting adoption, up from 45% in 2020. While some organizations in this sector may view this as a tough act to follow, SABIC sees this as a tremendously challenging opportunity.
Before all else, SABIC has built their own home-grown AI-powered Virtual Experimentation (AIVE) platform. Machine learning enables optimization of process or product performance even before a product is manufactured. AIVE thus spurs innovation agility by narrowing down the test conditions before physical experimentation takes place.
This means chemical manufacturers benefit from reduced development costs, fewer lab and plant trials, shorter development times and more capacity for virtual experimentation, opening the door to more innovative products. SABIC can now better tackle complex challenges in various process and product areas.
In addition, SABIC’s digitalization has made major advancements in safeguarding the health of manufacturing assets. This means minimizing unplanned outages and downtimes. The key for achieving this is that AI and advanced analytics not only deliver real-time information on the condition of machinery, but also promptly predict potential equipment failures. These insights allow manufacturers to be proactive towards maintenance issues, helping them to be resolved before they become more serious, and saving both time and money.
Moreover, digital technologies in SABIC raise the bar by enabling new levels of plant efficiency. It carried out successful pilots that have helped to optimize the overall energy plant performance, increase production-run length and improve consumption levels.
Digitalization is here to stay – traditional manufacturing as we knew it is changing and new digital technologies are emerging to become our industry’s “great equalizer”. The chemical businesses that succeed in the future will be those that embrace change and successfully make the leap towards more digital, dynamic, and efficient operations.
Those that are left behind, will simply not survive. Data is our new feedstock.
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