Chemical Leasing — Changing Your Mindset

An innovative system, called Chemical Leasing, whereby performance rather than chemicals and service are sold can result in massive savings and increased efficiencies.

Through Chemical Leasing, a Chemical Product Service model (CPS), companies are invoiced for chemicals used per square meter or per time rather than material. This aligns incentives for both service provider and client bringing about a win-win situation.

In essence, Chemical Leasing takes the focus of CPS on performance and services one step further.

In the surface cleaning sector, this means that the revenue of the chemical supplier shifts from being based on the volume of sold solvents to the volume of cleaned metal. This is a clear paradigm shift.

Whereas more and more companies are starting to offer CPS, Chemical Leasing business models are still a novelty.

The system is based on the efficiency of the provided services. This means that solvent consumption becomes a cost factor for the supplier rather than the client.

Thus Chemical Leasing creates a situation in which the chemical supplier and its customers share the same objective: maximizing the efficiency of the cleaning process and reducing the solvent expenditure.

Comparison graphic of Traditional and Chemical Leasing Model for solvent consumption

First results showed that Chemical Leasing enables metal cleaning companies that already work with modern closed cleaning machines to reduce solvent consumption by up to 80 percent.

 Chemical Leasing model for the industrial surface cleaning industry:

  • Solvents are integral part of the full service package - the performance is sold
  • Invoicing is based on a product performance parameter like cleaned parts or life-time of solvent
  • Enhanced know-how pooling within a Service Alliance throughout the whole supply chain
  • Optimization of cleaning process by steering the process