Strategic Growth For Maneuvering Industry Changes

C O M P A N Y    P R O F I L E

BY LAUREN MILLIGAN

AgriBusiness Global DIRECT caught up with Mitch Klann, Vice President and General Manager for Actylis, formerly Aceto. The company’s recent name change was announced on September 26 to promote Actylis’ global brand expertise in raw material manufacturing and sourcing. Like many international sourcing companies, over the last two years, Aceto was challenged with logistics, increased shipping costs, and supply shortages amid a global pandemic. In addition to modifying their practices during these challenges, Aceto also expanded their business by acquiring six new companies over the last 18 months and launched a new global brand name, Actylis, that integrates the expertise of all its acquired industry specialists, 11 in total. Klann shares about the company’s growth, rebranding efforts, and adaption to recent challenges in the key regions of North America, Asia, and Europe.

MITCH KLANN

ABG: Actylis has acquired six new companies over the last 18 months. Was this a smooth transition considering current industry challenges and changing dynamics?
MK: Actylis has been looking for great partnerships over the past couple of years to add to our current business portfolio. While the last 18 months have seen challenging issues, such as a lack of supply, increased costs, and slow logistics, these acquisitions have overall been very smooth. If anything, these additions have helped Actylis find unique, comprehensive solutions to the problems that are occurring today. Many of these acquisitions have been upstream of the supply chain and have helped provide better clarity on the changing dynamics that are occurring with the supply of many ingredients.

ABG: How have these accruals contributed to Actylis’ overall growth? are any similar transitions in the works?
MK: Actylis’ growth over the past several years has been from both acquisitions and internal customer growth. For our agricultural business, our focus has been adding new products and growing with our existing customers. Currently for Actylis Agriscience, the plan is to grow more at the active ingredient level and provide a broader offering to our customers. However, we are always considering opportunities that may be able to enhance the product or services we could offer our customers.

ABG: How has Actylis adapted to supply shortages?
MK: Actylis has worked closely with our supply partners as these shortages have been an issue for over a year. Our international procurement teams have a strong presence in Europe, China, and India. We are working with suppliers in these regions daily to understand constraints, and issues, while gaining visibility into future product availability. Having a strong local presence in these countries has been an asset during these challenging times. This real-time market intelligence has helped us make rapid, informative decisions as issues arise. This has helped us communicate better with our own customers and set expectations on product requirements and availability.

ABG: How have these supply shortages and rising shipping costs affected your partnerships overseas, specifically in China and India?
MK: Actylis worked on having strong and transparent relationships with our partners in both China and India. There have been many issues surrounding the lack of supply, rising costs, and product unavailability. The biggest problem we try to mitigate is any inadequacy in communication. We worked over the last 18 months to inform our suppliers of our timelines and constraints, and they have provided the same information for us. During uncertain times like in the past year, we have strengthened many relationships through these trials as we have worked together with our partners to get product in the hands of our customers on time.

ABG: Shipping costs have significantly risen over the last few years. How has Actylis adapted?
MK: Over the past several months, Actylis has worked to maximize the opportunities that are available in both international and domestic logistics. We are forecasting needs and volumes early to get dedicated and predictable shipping routes. Our primary focus is to get the product to the customer in time for the season. Again, one of the benefits of these acquisitions has been an increased presence in the international freight market to help us secure lines quickly and at better rates.

ABG: Have there been any significant challenges in any of Actylis’ key regions of Asia, Europe, and North America?
MK: The biggest issue that has impacted Actylis’ agriculture business is at the production, packaging, and raw material level. While a lack of supply has impacted the active ingredient business before, this year we saw considerable constraints in both the raw material and packaging markets. Almost every aspect of the business has seen an increase in cost as both labor rates and energy and utility costs have risen. Every production plan for the 2022 season was impacted at some level by supply chain delays.

ABG: Has there been a significant change in your access to active ingredients? How has this change varied by region?
MK: Access to active ingredients has, indeed, changed significantly for us. With all the acquisitions Actylis has made, our on-the-ground procurement teams have grown in both China and India. The agricultural business of Actylis will be launching more than eight new products in the 2023 season and has plans to launch an additional three to five products each year over the next five years. It is a very exciting time to be here at Actylis as we look for and find unique opportunities to grow the business.

ABG: Is there anything else you would like to add?
MK: This September, Actylis launched as a global brand to integrate the forces of our company and our 10 acquired industry specialists to provide a unique hybrid model of specialty ingredient manufacturing and sourcing with flexibility for individualized, customer-centric solutions, and supply chain dependability.