Chemove launches e-commerce logistics market CNI News -- 21-Jul-00 18:57 LONDON (CNI)--

Plans for a new Internet-based logistics market for the chemicals and plastics industries have been announced by Chemove, the independent business to business (B2B) service backed by Morgan Grenfell Private Equity, part of Deutsche Bank. Chemove (http://www.chemove.com)which is supported by Internet professional services company marchFIRST, has been established by Mark Betts and Chris Badenhorst, former employees of South African chemicals company Sasol.

They told CNI that the Chemove service would be formally launched this autumn (Q3/4). It is currently being tested among a small number of potential customers. Chief executive officer Betts and chief operating officer Badenhorst stressed that among Chemove's advantages was its independence and thus strength of appeal to both producers and vendors. "We see ourselves as a neutral market place," said Betts. "For the market to be efficient, we need to be truly independent." Chemove said producers will be able to procure their logistics service requirements such as shipping, transport (road, rail, intermodal), storage and other services online. Similarly, logistics service providers will be able to offer their services online, leading, Chemove claimed, to greater transparency and efficiency for both buyers and sellers. It maintained that the net result would be a reduction in the cost of logistics through better utilisation of available infrastructure.

Betts said Chemove would be prepared to work with other chemical e-commerce sites, including those established by major logistics firms such as Ellis & Everard and Royal Vopak. Chemove is aimed initially at the West European chemicals logistics market which Betts estimates as currently worth around $40bn (Euro43bn). Badenhorst said he believed the service could break even in one to two years. By Neil Sinclair +44 20 8652 3230