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I N T E R N AT I
Value Creators: the best
Chemical Connections: how
performing chemical companies
liberalized chemicals trade
revealed by a TSR analysis
underpins global value chains
Pages 8–9
Pages 10, 20
Rawpixel - Fotolia.com
gui yong nian - Fotolia.com
The End of One Era and the Beginning of Another
Be part of
The years following World War quire — I believe — a new structure industrial laboratories continued
II were very kind to chemis-
for the field, and raise a fundamen-
until the 1980s, and then slowed.
tal question: „What must chemistry
Since the 1990s, the chemical
try. The research universities
be in the future?" It has been the
industry has focused on process
and the chemical industry — one of field of science that studied atoms,
improvement and on short-term
something the most beneficial partnerships our bonds, molecules, and reactions. product development, rather than
And 50 years from now? Will it still
to contribute actively to the devel-
technologically sophisticated society be the study of molecules and what opment of new areas of large-scale
has seen— developed the forms that
they do? Or will it deal with com-
chemistry. In the past two decades,
BUSS CHEMTECH
we know. Industrial chemistry became
plex systems that involve molecules,
the chemical industry has intro-
EICKHOFF
in any form — in materials science,
duced few fundamentally new prod-
a core part of the industrial world; aca-
biology, geology, city management,
ucts. The changes that forced large
demic chemistry explained how atoms
whatever — „chemical" or not?
companies out of long-term research
VENTURIS IT
and molecules made reality happen.
are relatively straightforward to un-
Chemistry Blended the
derstand: the goals of capitalism and
Practical and Conceptual
the public markets, and incentives
Join us at Achema
During this time complex organic
for senior management, both favor
15-19. Juni, Halle 9.1, Stand D 66
synthesis, quantum chemistry, laser
This postwar era simultaneously investments in which financial re-
spectroscopy, production of polyole-
developed academic chemistry — to
turns are expected to be short-term.
fins, organometallic chemistry, mo-
analyze and understand complex-
Research is generally a long-term
lecular beams, medicinal chemistry,
ity — and industrial chemistry — to
investment. In the face of pressure
Newsflow
and countless other areas developed
produce the chemicals used by for profitability, much of industry has
and flourished. The range of com-
society. The two are sometimes de-
chosen to emphasize the manage-
mercial and scientific opportunities
scribed as separate, and even antag-
ment of existing businesses, rather
Ashland sells the car-care products
was very large.
onistic. Far from it! The interchange
than to try to create new ones: re-
of its Valvoline business to Niteo.
This prolific era is over, and between them — albeit usually un-
search in the chemical industry is
chemistry is now facing classes of
planned and often haphazard
now often considered as an expense,
Mylan tries to escape its pursuit
opportunities, and obligations to so-
provided extraordinary benefits to
rather than an investment.
ciety, that are even more interesting,
both. This stimulating exchange of
More on Page 2 and 3 ▶
but entirely different. They will re-
information between academic and
Continues Page 6 ▶
Prof. George M. Whitesides, Harvard University
Moberg has acquired Balmex from
Chattem for $3.9 million.
Dow and Olin in $5 Billion Asset Merger
Shell to Buy UK's BG Gas Group
Daiichi Sankyo has unloaded its
entire 8.9% stake in Sun Pharma-
ceutical, raising $3.2 billion.
More on Page 3 ▶
In a tax-efficient Reverse Morris Trust
ments to support downstream prod-
transaction valued at $5 billion,
ucts aligned with Dow‘s market fo-
Energy and petrochemicals
giant Shell has announced
cus. Separately, the companies have
Dow Chemical has agreed to sepa-
agreed a 20-year capacity rights con-
plans to acquire UK oil and
rate a significant part of its chlor-alkali
tract calling for Dow to supply ethyl-
gas exploration company BG Group in
A. Schulman plans to invest €5-7
and derivatives businesses and merge
ene from its US Gulf Coast grid. Dow
a cash and share transaction valued at
million to build a new masterbatch
would receive payments up-front
them with chlor-alkali specialist Olin.
plant in Turkey.
and Olin ethylene at „co-investor, in-
£47 billion.
Andrew Liveris, CEO, Dow
tegrated producer economics."
Ben van Beurden, CEO, Shell
Lanxess has started production
The merged company incorporat-
"We have jointly created a solid
The deal would give investors a
at its new EPDM rubber plant at
ing Dow's US Gulf Coast chlor-alkali
foundation for success for Olin, driv-
premium of about 50% to the clos-
Changzhou, China.
and vinyl, chlorinated organics and
existing Olin shareholders owning en by the benefits of greater scale,
ing price of BG Group‘s shares on
be a "springboard for a faster rate
global epoxy businesses would have
about 49.5%. Olin would continue to
an enhanced ability to capitalize on
April 7, the date the plans were an-
of portfolio change, particularly in
More on Page 15 and 18 ▶
revenues of almost $7 billion, more
be headed by CEO Joseph Rupp and
globally advantaged cost positions nounced. BG Group is the UK‘s third
exploration and other long-term
than double Olin‘s current sales. a senior management team made up
backed by US shale gas economics,
largest energy company, employing
plays," he added.
Pro forma EBITDA would be around
of Dow and Olin employees. Three
technology advantages, broader 5,200 people in 24 countries.
Combining the two businesses
Merck has named Udit Batra to
$1 billion based on 2014 figures and
new members nominated by Dow market access and significant enve-
Shell CEO Ben van Beurden, is expected to further develop the
lead the life science business after
excluding synergies. Olin expects would join the existing nine direc-
lope integration," Dow CEO Andrew
commented: „BG will accelerate Anglo-Dutch group's competitive
the integration of Sigma-Aldrich.
annualized cost synergies of at least
tors on Olin‘s board.
Liveris, said.
Shell‘s financial growth strategy, position in the LNG market, includ-
More on Page 19 ▶
$200 million within three years.
With Dow an important anchor
With this transaction, Dow stands
particularly in deep water and liq-
ing the core growth regions of Asia
In the transaction expected to customer of Olin as it grows the ac-
to exceed its target to divest $7 bil-
uefied natural gas (LNG), two of and the Atlantic basin. Total LNG
close this year following regulatory
quired business, the relationship is
lion to $8.5 billion of non-strategic
Shell‘s growth priorities and areas
capacity following the merger is
approval, Dow shareholders would
planned to include several long-term
businesses and assets, Liveris add-
where the company is already one
expected to be 45 million t in 2018,
receive 50.5% of Olin shares, with
supply, service and purchase agree-
of the industry leaders. It will also
compared to Shell‘s 26 million t in 2014.
The acquisition of BG would
boost Shell‘s proven oil and gas re-
entgelt bezahlt · 78719
serves by 25% and its production
capabilities by 20%. The deal would also give it enhanced positions in competitive new oil and gas projects,
particularly in Australia‘s LNG mar-ket and in Brazilian deep water oil exploration.
Shell said it expects to realize
annual pretax savings of $2.5 bil-lion by 2018, comprising $1 billion of operating cost savings and a $1.5
DISTRIBUTION& LOGISTICS FOR THE
billion reduction in exploration ex-penditure. If the deal goes through,
CHEMICAL AND LIFE SCIENCE INDUSTRIES
BG shareholders will own approxi-
Special Supplement
mately 19% of the combined group.
chris/sharpnose/Kai Krüger – fotolia.com
in this Issue!
CHeManager International 5/2015
Clean. Safe.
Efcient.
UNION Instruments Corp.
measuring devices ensure
that energy-containing gases
are used as economically
Front Page
Chemicals
South African Analytical Lab optimizes Pipetting
as possible.
Monika Alder Novotni, Hamilton Bonaduz
In reneries, chemical plants,
Reinventing Chemistry
Surfactants in a Globalizing World
steel mills, oil and gas
The end of One era and the Beginning of another
The Requirement for More Sustainable and effective Materials en-
Quality and efficiency in Pharma Manufacturing
industries, biogas plants, and
Prof. George M. Whitesides, Harvard University
sures a Demand for Innovation and Technological DevelopmentInterview with John Hibbs, CESIO
Part 2: PaT Can Turn Batch Processes into
in the gas supply.
Continuous Processes
no Compromise on Performance
David Humphrey, ARC Advisory Group
With explosion protection!
Market & Companies
The Challenges on the Road to non-Phosphate Dishwashing TabsHeike Kohm, BASF
Current and Future trends for Pharma Logistics
Pharma Management Radar Survey Finds Optimism
Reinventing Sustainable Value Creation
Strategy & Management
but also expectations To Cut Costs
Why the Chemical Industry Must Decouple economic Growth
June 15-19, 2015, Frankfurt/Germany,
Dr. Josef Packowski and Andreas Gmür,
from ecological Footprint
Intellectual Property in China's Chemical Industry
Hall 11, Booth E27
Camelot Management Consultants
Prof. Thomas Müller-Kirschbaum, Henkel
Companies Will Have to Prevent, Detect and Respond to IP Loss to access Growing Market
Roles Under ReACh
Value Creators
ReaCh Demands that Competitors Work Closely Together —
Nick Blank, Blackpeak Group; Dr. Kai Pflug,
BCG's Total Shareholder Return (TSR) analysis Reveals
Certain Tasks Still Challenge Industry
Management Consulting – Chemicals
Best Performing Chemical Companies
Dr. Susanne Kamptmann
Yves-Pierre Willers, Andreas Gocke,
People · events · Publications
The Boston Consulting Group
Production
US Companies Point to Increase Federal
UNION Instruments GmbH
At A Glance
Regulations as Barrier to Growth
Zeppelinstr. 42, 76185 Karlsruhe/Germany
Industrial Water Management
By Reducing Its Thirst for Water the Process Industry can
Phone: +49 (0) 721-68 038 10
Lawrence D. Sloan, SOCMA
Conserve Resources and Cut Cost
Fax: +49 (0) 721-95 243 33
Chemical Connections
How Liberalized Chemicals Trade Underpins
new Challenges in Chemical Purification
Global Value Chains
Ion exchange Resins Lead the Way to Comply with High eU Standards
Servet Gören, CEFIC
Alexander Lane, Dow Chemical
SABIC in Shale Gas Deal With
Henkel to Acquire Adhesives
Proxy Advisory Firm Backs Hedge
Unnamed US Supplier
Producer Novamelt
Fund's Criticism of DuPont
Saudi Arabian petrochemical giant
Former CEO Mohammed Al-
Düsseldorf-based German consumer
hotmelt adhesives used most widely
Nelson Peltz, the activist sharehold-
lieves operating efficiency has room
SABIC has signed a deal to import
Mady, who left the company in Feb-
chemical specialist Henkel said it in self-adhesive labels and tapes. Its
er owner of hedge fund Trian Fund
for improvement, as the board and
shale gas from the US for use at its
ruary to become president of Saudi
plans to acquire Novamelt, a private-
UV-curable hotmelts in particular Management, which is pressing for
management "are not communicat-
Teesside complex in the UK, act-
Arabia's Military Industries Corp, ly owned company based at Wehr in
are claimed to withstand even high
DuPont to split into two companies,
ing well with shareholders."
ing chief executive Yousef Abdul-
had previously said SABIC was in-
southern Germany, to further en-
temperatures and heavily changing
has gained a powerful backer in
In response, DuPont's manage-
lah al-Benyan told the news agency
terested in importing US shale gas to
hance its competence in the area of
weather conditions.
proxy advisory firm Institutional ment said it strongly believes that ISS
upgrade its Teesside cracker.
hotmelt adhesives. Financial terms
"Targeted investments in com-
Shareholder Services (ISS).
"reached the wrong conclusion" in
The executive did not reveal the
Benyan said SABIC is still consid-
of the acquisition, which is subject
plementary leading technologies
Without naming any names, the failing to recommend that sharehold-
name of the gas supplier, saying no
ering a proposal to build a plant to
to anti-trust approval, are not be-
are an integral part of our global firm on Apr. 27 recommended that
ers vote on for all 12 of its "highly-
agreement on disclosure had yet convert crude oil directly into chemi-
ing disclosed. Closing is subject to strategy," said Csaba Szendrei, sen-
DuPont shareholders give seats on qualified and experienced director
been reached.
cals, bypassing the refinery step. The
anti-trust approval. In addition to ior vice president, Packaging and the board to some of Trian's proposed
nominees" rather than only eight.
Benyan said the timing and other
proposal was originally announced by
its German base, the company with
Consumer Goods Adhesives at Hen-
new directors. Altogether, the fund
"By ignoring the success of our
details of the project, which he de-
Saudi oil minister Ali al-Naimi early
100 employees has a US production
kel. "Novamelt's solutions perfectly
has nominated four, including Peltz.
transformative strategy and the
scribed as the first use of shale gas
last year. Asked if talks had been held
site at High Point, North Carolina, as
fit to our existing pressure sensitive
Trian, which currently owns 2.7%
value-destructive nature of Trian‘s
exported from the US Gulf in Britain,
with companies to develop the pro-
part of a 51:49 joint venture.
adhesives business," he added.
of the US chemical producer, wants
break up agenda, as well as dis-
are planned to be announced during
ject, Benyan told Reuters that, "ide-
With annual sales of around €50
Henkel's Adhesive Technologies to see it group its agriculture, nu-
missing the fact that the addition
the third quarter. The gas will meet
ally SABIC would like to do the project
million in 2014, Novamelt manu-
business unit reported sales of more
trition and health and industrial of Trian‘s nominees would remove
the company's "full demand" for the
by itself." Any partner "would need to
factures a wide range of specialty
than €8 billion in 2014. (dw)
biosciences units into one higher-
critical experience from DuPont‘s
next ten years and is renewable be-
make an important contribution and
growth company, while separating
board," the chemical giant said ISS
yond ten years, he added.
help to spread risks." (dw)
out its more cyclical businesses.
"demonstrates a fundamental lack
ISS said it believed some of Tri-
of understanding of our business
Ashland Sells Valvoline
an‘s criticisms of DuPont may be and the needs of a global science warranted. Especially, it said it be-
IMCD Buys India's
Business to Niteo
US specialty chemicals producer Valvoline-branded and private-label Ashland has agreed to sell the car-
maintenance chemicals sold into the
PPG Buys Automotive Materials
Dutch specialty chemicals distribu-
€9 million and employs 18 people, care products of its Valvoline busi-
do-it-yourself (DIY) sector.
tor IMCD has acquired Kushalchand
will be integrated into IMCD India.
ness to Niteo, a subsidiary of private
Sam Mitchell, Ashland‘s senior
Supplier Revocoat
Sons in India. The family-owned
Mr. Amit Hirani, former owner of
equity firm, Highlander Partners. vice president and Valvoline‘s pres-
business, based in Mumbai, distrib-
Kushalchand and the new business
The deal includes the manufactur-
ident, said the proceeds from the US-based PPG Industries has com-
The addition of Revocoat to
utes specialty ingredients to India‘s
director of IMCD India, comments:
ing and distribution assets in Her-
sale of the non-strategic asset will
pleted the acquisition of Revocoat the automotive coatings business
fast-growing processed food indus-
"IMCD and Kushalchand share a nando, Mississippi. Financial terms
be reinvested in generating more from the Axson Group. Financial de-
strengthens PPG‘s global automo-
try. Financial details were not dis-
common strategy through provid-
were not disclosed.
rapid, profitable growth within the
tails were not disclosed. Headquar-
tive adhesive and sealants product
ing the Indian food industry with a
Car-care products represent less
company's core lubricants business.
tered in France, Revocoat is a global
and technology offerings, said Cindy
IMCD said the purchase will wide range of key ingredients from
than 4% of Valvoline‘s sales which
Jeff Hull, managing partner of supplier of sealants, adhesives and
Niekamp, PPG‘s senior vice presi-
provide a platform for it to further
world leading manufacturers. This
were $2 billion for the year ended
Highlander and chairman of Niteo,
damper products for the automotive
dent, automotive original equipment
strengthen and expand its activities
synergy will enable IMCD to further
Dec. 31, 2014. They include the said the Valvoline assets will provide
industry. It employs more than 500
manufacturer (OEM) coatings. (eb)
in the country‘s food market. Kushal-
strengthen their presence on the In-
brands Car Brite, Eagle One and the foundation for a „strong buy and
people and operates eight manufac-
chand, which has revenues of about
dian market." (eb)
Pyroil. Also included in the sale are
build platform." (eb)
turing facilities and one R&D center.
CHeManager International 5/2015
Mylan Said to Prepare Poison Pill Potion Against Teva
Braskem Reevaluating West Virginia Cracker
US-managed generics drugmaker
In moving its headquarters out of
than $30 billion in annual revenue,
Brazilian chemical giant Braskem is
While Braskem believes the pro-
stream, and many of these are not
Mylan, now domiciled in the Nether-
the US, through a $5.3 billion deal to
add to earnings in the first year and
reviewing plans to build a world-scale
ject is still interesting, especially as
lands, is said to be preparing a "poi-
acquire parts of Abbot Labs' gener-
eventually generate $2 billion in an-
ethane-fed cracker and downstream
feedstock from the nearby Marcellus
Braskem is still contemplating
son pill" defense to escape its pur-
ics portfolio, Mylan not only escaped
nual savings.
polyethylene plants in Parkersburg in
Shale gas fields is easily accessible
whether to build new polypropylene
suit by Israeli generics giant Teva.
US corporate taxes, reports say.
The purchase of Mylan would the US state of West Virginia.
and 40% of US demand for PE within
plants in the US, where availability
Teva has offered $40.1 billion Through the relocation, the drug-
also help the Jerusalem-based
Speaking in New York at a meet-
500 miles of the proposed facility,
is still tight, or debottleneck existing
to acquire its smaller rival, which
maker is now able to benefit from
group expand its offering of harder-
ing of Société de Chimie Industrielle,
he said the cost advantage of a US-
plants. Much depends on the avail-
itself is pursuing a smaller player,
anti-takeover defenses anchored in
to-produce medical products such Fernando Musa, CEO of Braskem based ethane cracker over a naph-
ability of propylene feedstock in the
Perrigo. Analysts have speculated Dutch law.
as soft-gel caps, topical and inhalant
America – which also oversees Eu-
tha-fed unit has sunk from $600 right quantity at the right location,
that Mylan's grab for Perrigo was a
The poison pill Mylan will be able
technologies and injectables, while
ropean operations – said that in million a year ago to only around
tactic to help fend off Teva. Perrigo
to leverage foresees the board creat-
increasing its portfolio of treatments
light of receding crude oil prices $150 million at present.
The Brazilian petrochemical
has now rejected Mylan's nearly $29
ing an independent foundation that
for the nervous system.
the company would not build a US
As another cost factor, the Bra-
group currently has five PP produc-
million takeover bid.
can exercise a call option agreement
Teva has come under pressure cracker to go on stream before the
zilian executive also pointed to the
tion facilities in the US – at Marcus
The Israeli drugmaker's offer is
set up between itself and the com-
through the emergence of generic
year 2020. Most of the engineering
long availability of ethylene, as in Hook, Pennsylvania; Kenova, West
contingent on Mylan not completing
pany, diluting the rights of ordinary
competition for its multiple sclerosis
work for the planned facility's first
the wake of the shale euphoria, Virginia; La Porte, Freeport, and
the proposed deal with Perrigo. In
drug Copaxone, as well as from new
phase already has been completed.
many new plants were brought on
Seadrift, Texas. (dw)
its first reaction to the hostile take-
The foundation would have the
oral treatments.
over bid by Teva, the board of the
right to exercise the call option if it
A merger of Mylan and Teva
Dutch-based drugmaker has unani-
feels it is in the best interest of the
would create a generics giant with
mously rejected the more than $40
company. This would free manage-
annual sales of around $30 billlion
CCS to Be Commercialized at Grangemouth
billion offer.
ment to pursue alternative plans.
and market capitalization of around
After a comprehensive review
Teva meanwhile has been press-
$100 billion. It also would be the The UK and Scottish governments
Recent reforms in the UK elec-
"is evidence that the UK govern-
conducted in consultation with its ing ahead with its quest for Mylan,
biggest pharmaceutical industry plan to invest more than €5 million in
tricity market reform, combining an
ment's steps to promote CCS are
financial and legal advisors, the announcing that it could "prompt-
deal so far this year and the second
engineering and feasibility studies for
Emissions Performance Standard working."
board said it had concluded the ap-
ly" divest some of its operations to
largest of the past 12 months, fol-
a Carbon Capture and Storage (CCS)-
(EPS) and the Contract for Differ-
Summit will spend 18 months un-
proach "did not meet any of the key
obtain regulatory clearance. The lowing the takeover of Botox manu-
equipped coal gasification power ence (CfD), are said to make such
dertaking detailed research and fea-
criteria that would warrant Mylan
company said it planned to work facturer Allergan by generics rival
plant in Grangemouth, Scotland. What
low carbon investments increasing-
sibility studies with the ultimate ob-
departing from its successful and with antitrust authorities to assure
makes the Caledonia Clean Energy ly attractive. Jonas Helseth, direc-
jective of designing, siting, financing
longstanding standalone strategy that the deal can be completed by
The latter deal followed a failed
Project somewhat unique, its backers
tor of Bellona Europa, a Brussels-
and building the new 570 megawatt
and consider engaging in discus-
the end of 2015; however, it did not
hostile takeover attempt by Ca-
say, is that the governments do not
based nonprofit organization that
coal-gasification power plant Scottish
sions to sell the company."
reveal which operations it might be
nadian pharmaceutical producer intend to directly subsidize the facility
supports environmental improve-
power plant. Fitted with CCS technol-
In a letter sent on Apr. 27 to Teva
prepared to divest.
Valeant in cooperation with activ-
being built by Summit Power, based at
ment projects throughout the EU,
ogy, it will attempt to capture up to
CEO, Erez Vigodman, the Mylan
Citing people familiar with the ist investor Bill Ackman‘s Pershing
Seattle, Washington, in the US.
said the Grangemouth CCS project
90% of its CO2 emissions. (dw)
board's executive Chairman, Robert
matter, the news agency Reuters Square Capital Management. Mar-
J. Coury, said the board had "unani-
said some of Mylan's top investors,
ket speculation has it that Valeant
mously determined that Teva‘s pro-
including Paulson and Co – a New
and Novartis' generics arm Sandoz
posal grossly undervalues Mylan, York-based hedge fund that owned
may be interested in acquiring Per-
Solvay Creates Business Unit for Specialty Chemicals
and would require Mylan‘s share-
around 3% of Mylan at the end of
holders to accept what we believe
2014 – have encouraged the compa-
Sandoz is currently embroiled in
Solvay has established a new global
The Special Chem unit, with „With its increased scale and en-
are low-quality Teva shares in ex-
ny's board to consider the proposal.
a patent dispute with Teva over a
business unit for rare earths, spe-
annual sales of about €850 mil-
hanced innovation capabilities,
change for their high-quality Mylan
Teva said the acquisition of Mylan
generic MS drug that would compete
cialty chemicals and fluorine. The lion in 2014 and 3,100 employees
Solvay Special Chem is better posi-
would create an entity with more with Copaxone. (dw)
fluorine business was formerly part
worldwide, will be headquartered tioned to capture growth opportu-
of Solvay‘s aroma performance busi-
in Seoul, South Korea. It will be led
nities and will focus on leveraging
ness unit with net sales of nearly by Hua Du and reported within the
our technology and market position
€30 million last year.
advanced materials operating seg-
in auto-catalysts and fluor special-
Total Spending €600 Million on Refinery Conversions
Solvay said the move was to sim-
ties to drive new growth in targeted
plify and improve the efficiency of
Roger Kearns, member of markets, namely in automotive and
its overall group structure.
Solvay‘s executive committee, said:
electronics." (eb)
Total has revealed plans to revamp
At Donges, near Nantes, Total and react to a decline in profitability,
and upgrade two of its five refiner-
will spend €400 million to convert
which Total blames on overcapacity
ies in France to meet the demands
its refinery to produce low-sulphur
and heightened competition from
of new markets and restore profit-
fuels in line with the latest EU speci-
players in Asia and the Middle East
fications and to "capture profitable
as well as US companies with access
The oil and petrochemicals giant
to cheap shale oil and gas.
is spending €200 million to turn the
Conversion of the facilities will
Total said there is no need to
La Mède facility in the south into take place without layoffs or per-
convert the refineries at Gonfre-
France's first biorefinery. As one of
sonnel transfers to other group sites,
ville in Normandy, Grandpuits in
the biggest in Europe, the upgraded
the group stressed.
the Paris region and Feyzin near
plant will be able to meet the grow-
CEO Patrick Pouyanné pointed to
Lyon, as these have state-of-the-art
ing demand for biofuels, it says. the need to realign refinery opera-
operations and are still profitable
Crude oil processing here will be tions and products in Europe to the
despite the deteriorating refinery
phased out up to the end of 2016.
meet the needs of changing markets
EU Commission Accuses Gazprom of Antitrust Violations
The European Commission has said, the EU believes Gazprom dered competition in the gas mar-charged Russian gas giant Gazprom
"may have built artificial barriers
kets of Bulgaria, the Czech Republic,
with abusing its dominant market preventing gas from flowing from
Estonia, Hungary, Latvia, Lithuania,
position in central and eastern Eu-
certain central European countries
Poland and Slovakia.
ropean gas markets and violating to others, hindering cross-border
In a statement, the gas giant
the EU's antitrust rules.
called the objections unfounded,
If it can prove competition viola-
"Keeping national gas markets saying the company "strictly ad-
tions, the Commission can impose separate also allowed Gazprom to
heres to all the norms of interna-
fines of up to 10% of Gazprom's charge prices that we, at this stage,
tional law and national legislation
global turnover. It has given the consider to be unfair," she said.
in the countries where it conducts
company 12 weeks to respond to
The Commission says Gazprom business."
the allegations.
used oil-linked formulas to favor
Russia supplies an estimated
In particular, Competition Com-
some countries and penalize oth-
one-third of the EU's gas require-
missioner Margrethe Vestager ers. In its view, the company has hin-
Chemspec Europe
US Chemical Activity Barometer Suggests 2015 Gains
The Chemical Activity Barometer might continue to see a strengthen-
can be used to determine turning
(CAB) of the American Chemistry ing. Construction-related chemis-
points and likely trends in the wider
Council (ACC) was up 0.1% in April,
tries have been adversely affected
as measured on a three-month mov-
by bad weather so far this year, but
US chemical producers also re-
ing average, the US chemical pro-
we expect an improvement as we main upbeat on their shale gas cost
ducers' association said.
get further into spring," said Kevin
advantage, despite recent steep de-
Having reached an index of 98.1,
Swift, the association's chief econo-
clines in the price of crude oil.
last seen in January 2008, ACC said
Speaking at a recent Responsible
the CAB – reflecting production, eq-
"The data on plastic resins and
Care conference held by the Ameri-
uity prices and product prices, along
polymers for packaging suggest that
can Chemistry Council, the indus-
with other indicators – remains retail sales should continue to be try association's CEO Cal Dooley 2.6% ahead of the year-ago figure.
strong as well," Swift added.
pointed to the ongoing investment
This, it says, suggests that gains in
The activity barometer is derived
boom across the country, which he
business activity will continue into
from a composite index of chemical
said gives the industry the chance to
the fourth quarter.
industry activity and, as the industry
reestablish itself as a leading global
"All of the major production-
has been found to consistently lead
supplier of energy and feedstocks
related indicators are up and we the US economy's business cycle, it
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
Current and Future Trends for Pharma Logistics
Pharma Management Radar Survey Finds Optimism but also Expectations To Cut Costs
A wind of change is in the air when it comes to logistics in the pharma-
to concentrate on their core busi-
ceutical industry. although most companies are still quite optimistic
ness. While for the Generics mere financial considerations also play a
with regard to the current business climate, there seems to be a rising
very important role for logistics out-
awareness of the important role logistics might play in current and future chal-
sourcing, other major drivers for the
lenges such as price pressure. and new service offerings "beyond the pill" also
Innovators are the qualification and specialization of service providers
could affect logistics substantially: The majority of industry players are currently
and the flexibility they offer.
executing focus initiatives in various fields of logistics, including organization,
Given the expectation that phar-
process and network setup. at the same time, however, there is still some room
maceutical companies, especially Innovators, will increasingly offer
for optimization with regard to various strategic changes in logistics to further
additional services in the medium-
term future, logistics strategies will have to align closer with manufac-turing and commercial strategies. So
This is the picture that emerges This type of pessimism has gained
far, however, little more than 10% of
from the fifth Camelot Manage-
relevance over the last 12 months,
respondents have a regular process
ment Consultants Pharma Man-
which might be seen as a sign of
with clear global roles and responsi-
agement Radar survey, a biannual
still-growing competitive pressure
bilities in place when it comes to the
survey that examines the general on some Innovators due to expiring
alignment between logistics distri-
climate in the pharmaceutical in-
patents and increasing regulatory
bution strategy and manufacturing
malp - Fotolia.com
dustry and takes an in-depth look
strategy. Regarding the integration
at a varying current management
In accordance with their general
with commercial strategy, there is
topic. In a one-week period between
industry outlook, most respondents
dropped dramatically in terms of last year. In addition, more than 40%
ture. Some considerable movement
even more room for optimization.
January and February, more than are optimistic with regard to their
investment attractiveness (from 50%
of respondents are nervous about can be observed, however, when it
It seems, however, that this prob-
20 executives from globally active
own business development. More to 17%) since last year. For Southern
political risks in growth markets, comes to service-related trends. The
lem has been realized, as intra-
pharmaceutical companies based in
than 90% expect their sales perfor-
Europe, the situation looks equally
which is of course due to the politi-
relevance of additional patient-spe-
company collaboration is widely
16 countries and spread over four
mance to improve while 96% are bad — it has not improved during the
cal and economic developments in
cific services such as prescription considered a subject for logistics
continents participated in the online
confident of being able to raise EBIT
last 12 months.
Russia/Ukraine, Southern Europe management, consulting services, focus initiatives in the next two or
survey. Companies with a business
and other emerging markets.
product kits, as well as the impor-
three years. The survey found that at
model predominantly characterized
Given these problems, it is not tance of home-care services, is ex-
the moment, there is a lot of move-
Logistics will play an increa-
by developing and/or commercial-
surprising that more than half of pected to be much higher by 2020
ment in other areas of pharma lo-
izing innovative medicines ("In-
singly important role for coping
respondents consider cost reduction
than during the next year.
gistics: Approximately two-thirds
novators") comprised the majority
the most important industry trend.
One trend to be observed within
of the respondents have currently
with future challenges in the global
of respondents; roughly one-fifth
Securing supply reliability, which pharma logistics is the move toward
ongoing initiatives to change logis-
pharmaceutical value chain.
were participants from companies
is vital for business success, is the
regional logistics organization — tics organization and process setup
predominantly active in the generics
Dr. Josef Packowski, Camelot Management Consultants
second top trend while the continu-
segment ("Generics"). Panel partici-
ing trend toward outsourcing is also
pants represent almost two-thirds of
(earnings before interest and taxes)
Quite interestingly, the will to reflected in this ranking. Another
We have seen already a shift in the
the global Top 20 pharmaceutical in 2015. When it comes to where this
invest and the general economic measure to cope with increasing
organization of logistics: from a local
companies. The focus topic of the growth is expected, both the Euro-
optimism are not accompanied by
competitive pressure is the crea-
fifth Pharma Management Radar is
pean debt crisis and the military growth in employment figures. On
tion of additional revenue sources.
approach to a regional/global one.
pharma logistics.
conflict in the Ukraine are clearly
the contrary, nearly half of all re-
Subsumed under the term "beyond
Andreas Gmür, Camelot Management Consultants
The executives' view of the busi-
reflected in the pharmaceutical in-
spondents are planning to decrease
the pill," these services do not yet
ness climate for the pharmaceu-
dustry's demand expectations: Rus-
their number of employees, and a
belong to the top priority trends for
tical industry has essentially re-
sia and Southern Europe perform third expect their staff to remain the next 12 months in logistics, but
especially with regard to Europe, — which again indicates a possible
mained as positive as it had been
extremely poorly in this respect. In
constant. One year earlier, more they are considered a priority trend
where this was the top answer. move away from a strictly local set-
in the Pharma Management Radar
contrast, expectations have further
than a third of respondents had with an interesting perspective for
Generally, however, the traditional
up to a more regional or even global
Survey conducted one year earlier.
brightened up for various emerg-
been willing to increase employment
the medium-term future.
model of local logistics organization
logistics focus.
This particularly applies to the Ge-
markets — especially
figures. As a logical consequence of
still plays a major role, while the op-
nerics executives, all of whom rate
and Eastern Europe. In the mature
the cautious employment strategies,
Service-Related Trends to
posite concepts, i.e., global respon-
the business climate as "good" or markets of Germany and the UK, the
the external sourcing trend remains
Become More Important
sibility for logistics or an end-to-end
Dr. Josef Packowski, managing
at least "mostly good," whereas the
Generics see a considerably better
on a very high level, with more than
responsibility for complete supply partner, and Andreas Gmür, part-
share of pessimistic Innovators has
perspective for themselves than the
two-thirds of respondents planning
When asked about market trends in-
chains segmented by product/chan-
ner and head of logistics practice,
slightly increased year-over-year.
Innovators, which may be due to the
to make use of external support fluencing logistics organization and
nel groups, are applied rather sel-
Camelot Management Consult-
These mood differences are also
rising cost pressure in these coun-
during the next 12 months. Just setup, the majority of respondents
ants, Mannheim, Germany
reflected in the outlook on the eco-
tries' health-care systems.
like in 2014, this trend is particu-
see increased challenges in products
In accordance with the general
nomic developments during the next
These expectations are also re-
larly strong in the Generics segment,
requiring active temperature control
sourcing trends, external support
12 months: While all participat-
flected in many of the pharmaceu-
where none of the respondents has
and traceability both in 2015 and has become a matter of course with
Please register here to participate in the
ing Generics are optimistic, more tical industry's regional investment
plans to decrease external outsourc-
during the next three to five years.
regard to logistics as well. For near-
next Pharma Management Radar survey:
than one in four Innovators fear plans for the next 12 months. China
ing in 2015.
Security requirements and meas-
ly all regions of the world, at least
that the business climate will "re-
is clearly considered the most im-
As far as the greatest risks for
urements against counterfeiting as
four in 10 respondents say that they
Order free copies of Camelot's studies on
main just as bad" or "deteriorate."
portant market while Russia has the companies' business develop-
well as pressure to reduce logistics
have outsourced the biggest share
the global pharmaceutical industry at:
ment during the next 12 months are
costs are also expected to become
(more than 75%) of their warehouse,
concerned, price decrease due to more important or even significantly
transport and order-management
patent expiry has climbed from the
more important both with regard to
services. When extending the scope
fourth position to the top risk since
the near- and the medium-term fu-
to the year 2020, the respondents do not leave any doubt that the out-
sourcing trend in logistics will con-
tinue. As main drivers for this de-
Camelot Management Consultants
velopment, most respondents name
the avoidance of investments into
low value-added services in order
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
DuPont to Buy Microbials Specialist
Recipharm Buys Synthonics
Daiichi Sankyo Unloads Entire Stake
in Sun Pharma
DuPont has announced plans to buy
our in-house microbial discovery Swedish drugmaker Recipharm has
The pharmaceutical firms first In a pre-negotiated share sale announced, allowing it to recoup al-
California biotech company Taxon programs."
acquired $2 million worth of pre-
began collaborating in 2013 with agreed a year ago, Japan‘s Daiichi
most all of the rupee-denominated
Biosciences, specialized in microbi-
Testing of Taxon products is ex-
ferred stock in Synthonics and has the signing of a joint marketing built
Sankyo has unloaded its entire 8.9%
original acquisition price.
omes for development of biological
pected to begin this year, and Du-
promised to buy an additional $2 around Synthomer's drug delivery stake in India's mammoth generics
In buying Ranbaxy, Daiichi San-
Pont expects the first products to be
million of the stock, contingent on the
technology for metal coordination producer Sun Pharmaceutical In-
kyo had hoped to cash in on the ge-
Terms of the deal, set to close launched within five years.
US metal coordination chemistry spe-
of pharmaceutical APIs.
dustries, raising 200 billion rupees
nerics boom, but instead found itself
during the second quarter, were not
DuPont's agrochemicals arm cialist achieving certain milestones
Synthonics CEO Ken Slepicka ($3.2 billion).
having to write down $3.7 billion
generated more than $1 billion in
expected during 2016. In connection
said his company is "delighted" to
Indian media reported that Dilip
half a year later when the extent of
Taxon's products for pest con-
annual sales of biologicals in 2014.
with the investment, Recipharm's join Recipharm in helping advance
Shanghvi, Sun Pharma's founder, the US Food and Drug Administra-
trol and plant quality will help Du-
Many global agrochemical and Carl-Johan Spak, executive vice presi-
promising molecules to market. was among the buyers of the Dai-
tion's sanctions against the company
Pont create new seed, leaf and soil
seed market leaders, including dent, technology and development has
He added that the agreement and
ichi shares. The sale closes the fi-
for manufacturing irregularities be-
products for row crops, fruits and
DuPont's US rival Monsanto and joined Synthonics' board of directors.
financial support "will help us fur-
nal chapter of the Japanese drug-
came public.
vegetables, the US chemical giant
Germany's Bayer, are also pursu-
Additionally, the two companies
ther advance several of our current
maker's 2008 acquisition of India's
Noting that Sun Pharma has a
ing bolt-on acquisitions to broaden
have signed a joint development projects to commercialization."
Ranbaxy, which was acquired in full
record of acquiring troubled drug-
Frank DeGennaro, director of their biological products for plants.
agreement, giving Synthonics access
Spak said the transaction ex-
by Sun in March of this year.
makers and returning them to prof-
DuPont Biologicals, added that the
Experts forecast growth rates of 10-
to Recipharm's expertise in drug de-
pands Recipharm's footprint in the
Observers of the deal said Dai-
it, media reports quoted Shanghvi
"broad intellectual property hold-
15% for this market segment, which
velopment, marketing and manufac-
US and builds on the existing joint
ichi Sankyo profited from the 80%
as saying the company's priority is
ings" of the company founded in currently counts around $2 billion in
turing in exchange for a royalty pay-
marketing agreement with Syn-
increase in the value of its Sun to regain the trust of US regulators.
2000 will „complement and enhance
annual sales. (dw)
ment on certain compounds.
shares since the Ranbaxy deal was
AbbVie and Puerto Rico Announce
Sartorius Stedim Biotech Buys
Moberg Buys OTC Brand Balmex
$30 Million Expansion
From Sanofi
AbbVie is expanding an existing site
Puerto Rico Industrial Develop-
French biopharmaceutical industry
assays are used in the early stages of
Sweden's Moberg Pharma has ac-
"Adding Balmex to Moberg
in Puerto Rico at a cost of $30 mil-
ment Company (PRIDCO) is promot-
contract supplier Sartorius Stedim
drug comparison and comparability
quired US over-the-counter drug-
Pharma's US portfolio is a great fit,
lion, adding to its capacity for bio-
ing the expansion with incentives for
Biotech (SSM) has acquired Bio-
as well as for lot-release testing of
maker Balmex from Chattem, the within our core area of topical der-
job creation and infrastructure.
Source, a privately owned Glasgow,
US consumer healthcare division of
matology," said Moberg CEO Peter
The proposed expansion will
"AbbVie's expansion in Barcelon-
Scotland-based biotech firm for
French pharmaceutical producer
Aubagne-headquartered SSM
take place in AbbVie's site located
eta is very important for us, as this
an undisclosed sum. The Scottish said the acquisition will "help de-
Sanofi, for $3.9 million in cash.
He said the company is "con-
in the northern municipality of site is one of the world's most ad-
company, in the market since 2007,
velop its service offering through the
The acquisition sum is roughly in
tinuously evaluating opportunities
Barceloneta, already home to two
vanced biopharmaceutical facilities,
employs 85 people and has annual
drug development pathway."
line with the more than $4 million an-
to further leverage its US sales and
of the company's state-of-the-art contributing to our island's growing
sales of about €9 million.
The French company with an-
nual sales of the OTC specialist, whose
marketing infrastructure," and this
reputation as a biotech hub," said
BioOutsource provides contract nual sales of €683.5 million has its
portfolio includes products used for
deal contributes immediately to
According to Stephen Muldoon, Puerto Rico governor Alejandro testing services to clients in the global
own manufacturing and R&D sites
diaper rash. The brand will be sold
sales and earnings as well as the
vice president of engineering and García Padilla.
biopharmaceutical sector to monitor
in Europe, North America and Asia
through Moberg's current OTC chan-
long-term financial goal of deliv-
operations, the company is focused
The US drugmaker established safety and quality of biological drugs
and a global network of sales offices.
nel in the US, primarily in chain drug-
ering profitable growth and an
on "providing a significant impact its first manufacturing facility on and vaccines and also offers services
Its key manufacturing and research
stores, as well as hypermarket chain
EBITDA margin of 25% from 2016.
the island in 1969. (dw)
to the biosimilars industry, where its
site is in Germany. (dw)
Walmart and at specialty toy retailers.
BASF Sues Umicore over
Evonik Inaugurates €1 Million Super
A. Schulman Adds Masterbatch
Alleged Patent Breach
Capacity in Belgium
A US court has given Belgium's Laboratory in 2009. Argonne is par-
German chemical producer Evonik
as the new EDANA mannequin test
US plastics compounder and distrib-
"This investment is indeed
Umicore, one of the leading pro-
ticipating in the suit.
has inaugurated a new €1 million
for incontinence articles.
utor A. Schulman has added a new
aligned with current megatrends
viders of cathode materials for
Along with breaching its patents,
application technology center for su-
For the first time, the company
PET compounding unit at its Bor-
and addresses the needs of the
batteries, until Apr. 17 to reply to
BASF accuses Umicore of selling perabsorbent polymers in Krefeld,
said, this test allows the application
nem masterbatch plant in Belgium.
packaging market," said Heinrich
allegations by BASF that the com-
the battery technology to another Germany.
of realistic in-use conditions to the
While not disclosing either in-
Lingnau, vice president and general
pany breached patents for nickel-
firm. It also asserts that the com-
Evonik said the enlarged labora-
standardized lab evaluation. It is vestment cost or capacity figures, manager Europe, Middle East and
cobalt-manganese (NCM) cathode pany threatened to sue a customer
tory strengthens its position as an
also open to customers for training
the company said the additional ca-
raw materials used in lithium-ion
considering a switch to the Ludwig-
innovative solutions provider for and testing sessions.
pability will "significantly increase"
Schulman markets its PET prod-
batteries for electric cars and port-
shafen group as its supplier of bat-
superabsorbent polymers, allow-
"Our customers will directly ben-
output and reinforce its position as
ucts under the "PolyPet" brand
able electronic devices.
tery components. BASF claims that
ing implementation of the newest efit from an even further improved
a supplier of masterbatches for the
name. In other news, the US compa-
The German chemical giant, Umicore's action has cost it billions
test methods, which will further technical service," said Norbert European food sector.
ny has launched a registered public
which filed suit in a federal court
of dollars in potential sales and de-
strengthen product knowledge and
Westerholt, head of Evonik's Baby
In its first phase, the new line will
offering of $110 million aggregate
in Wilmington, Delaware, as well as
prived it of the ability to compete
target-oriented innovation efforts.
Care Business Line. Evonik's supera-
be dedicated primarily to the pro-
liquidation preference of Cumulative
with the Federal Trade Commission
as a supplier for electric car plat-
The new facility is equipped for
bsorbent polymers business employs
duction of additive concentrates and
Perpetual Convertible Special Stock,
(FTC), licensed the patents from forms expected to launch in 2016 the evaluation of superabsorbent more than 600 people worldwide. white PET masterbatch.
subject to market and other condi-
Chicago-based Argonne National and 2017. (dw)
polymers and hygiene articles, such
SiVance Opens Lab for Silane
and Silicone Technologies
Belgium's SiVance, a subsidiary of
ity to quickly develop and scale new
Milliken & Company, has opened silane and silicone technologies.
a new research and development
The lab is also planned to speed
IMPROVING THE PHARMACOKINETIC
laboratory at its R&D and manu-
process development for custom
PROFILE OF DRUGS
facturing campus in Gainesville, manufacturing of specialty silanes, Florida.
silicones and other chemistries.
SiVance said the new center,
"This state-of-the-art facility is a
CHEMICAL
part of a planned series of invest-
major milestone in our continuous
ments targeting current and future
investment strategy for the busi-
customer needs in markets such as
ness, which was initiated following
electronic semiconductors, contact
Milliken's acquisition of SiVance in
lenses, coatings and light-emitting 2011," said SiVance vice president, diodes (LEDs) will enhance its abil-
Saikat Joardar. (dw)
OF PEPTIDES
Interferon β-1a
is a glycosylated 166
amino acid protein and an
approved drug substance to
treat multiple sclerosis.
UCB to Sell Established Brands in
Bachem and
India to Dr. Reddy's
Two pioneers in their respective
ADVANTAGES OF CHEMICAL
fi elds collaborating to advance
Belgium‘s UCB has agreed to sell
dy‘s Laboratories, said the acquired
innovation in drug development.
• Homogeneous products: chemical
its established brands in India, portfolio would accelerate his com-
synthesis yields well-defi ned
including its franchises in the ar-
pany's presence in the high growth
eas of allergies and respiratory areas of dermatology, respiratory dis orders, to Dr. Reddy‘s Labora-
and pediatrics with market lead-
• Most chemically synthesized
tories for the equivalent of about
ing brands like Atarax, Nootropil,
peptide drugs can be easily adapted to glycosylation
€118 million. About 350 members
Zyrtec, Xyzal and Xyzal M.
of staff will transfer from UCB to
Mark McDade, UCB‘s chief oper-
• Competitive production costs
Dr. Reddy‘s.
ating officer, said the sale will allow
Alok Sonig, senior vice president
the company to focus on its neurol-
and India business head of Dr. Red-
ogy portfolio in India. (eb)
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
◀ Continued Page 1
be (in principle) easily accomplished:
SeanPavonePhoto - Fotolia.com
combining different departments
This choice of direction has had sev-
(chemistry, biochemistry, chemi-
eral consequences:
cal engineering, materials science),
1) It has ended (or constrained
broadening education, and changing
in scope and character) the unique
the criteria for tenure to give credit
and mutually beneficial intellectual
for collaborative research are among
partnership between industrial and
them. Others may be more difficult.
academic chemistry that character-
For example, there is growing agree-
ized the 1960s to 1980s.
ment (at least in the US), that gradu-
2) It has increasingly limited the
ate research groups in many areas
number of jobs for chemists in in-
of science (including chemistry) need
dustry, and made a career in indus-
some form of restructuring.
trial chemistry less attractive for
The big chemical companies
students choosing what to study.
are essential to the production of
3) It has limited the options for
chemical products and hydrocar-
chemistry to explore new areas,
bon fuels that require handling
since many of these areas require
large amounts of materials, energy,
the kinds of resources and skills in
and capital. They have settled into
large-scale project management
a strategy of technically sophis-
that only industry can provide.
ticated improvements to existing
The narrowed focus of industry
processes and products. Industries
on maintaining profitability in com-
that do not change when technology
moditized product lines, in a busi-
One of the new constructions of humankind is the "megacity". An example of such a metropolitan area with a total population of ten million people or more is Chongqing in China. Managing these ensembles
shifts dramatically sometimes dis-
ness environment in which costs due
requires both knowledge and technology to solve problems at every level, among which are: mass transport of people, water, food, construction materials, power, heat, pollution, and waste; control of dis-
appear — companies that produced
to regulation (especially environ-
ease; management of education, self-governance, rumor, unrest, and crime. Based on its experience with modeling large numbers of interacting molecules and particles, chemistry may have more to offer to
steam engines, film for silver halide
mental regulation) and safety are in-
the science of sociology and related areas concerned with large numbers of interacting people than one might expect.
photography, and adding machines
creasing, has had another important
are examples — but Society will con-
effect. It has made the chemical in-
tinue to need sulfuric acid, concrete,
dustry seem relatively uninterested
lems, academic chemistry will need
service business model leaves it un-
Table 1 contains examples of opportunities (and obligations), but
and polyethylene film.
and uninvolved in research whose
to integrate „solving problems" and
arguably essential, but not exciting.
challenges. Some are obvious. Some
they are also evanescent: if chem-
The largest chemical companies
outcome might have social benefit „generating understanding" bet-
Does this mean the field is over?
are "inevitable," in the sense that it
istry does not accept them, other will not disappear, but a future pro-
rather than financial return. The dis-
ter. Industry must either augment
No. It is not over. In fact, a look at
is certain that the problem is real
fields will. For large chemical com-
ducing commodities at declining
interest in social return has placed
its commodity- and service-based the problems facing society, and the
and will be addressed somehow. panies, short-term financial return
margins is not exciting. More im-
the chemical industry increasingly model to re-engage with invention,
requirement for the skills of chem-
(The only question is "How?") Some
will continue to dominate strategy.
portantly, these enormous, techni-
in the position of appearing to be a
come simply by assuming that com-
Will it be possible to combine the cally sophisticated companies have
necessary, valuable, but not neces-
mon wisdom is wrong. Some are academic enthusiasm for obligation-
unique skills in managing technical-
sarily attractive part of the industrial
purely my personal opinion and free funding, government´s need to
ly demanding and dangerous pro-
economy. That strategy may not be
Research in the chemical industry
their connections with „chemistry",
solve problems, and industry´s focus
cesses on very large scales, in con-
the best for it in the long term.
is now often considered as an expense,
as it currently defines itself, may, for
on profitability?
trolling flows of heat and materials,
Although academic chemistry
some, not be immediately obvious.
and managing capital: it would be a
rather than an investment.
has migrated into new fields (bio-
If chemistry needs to great loss if those skills were not ap-
chemistry, materials science, and
Setting Priorities for the Future
change — from the style developed
plied to managing water resources,
computational chemistry are ex-
in the period post-WW II to that atmospheres, and megacities. So-
amples), and academic departments
or face the prospect of settling into
istry that can be applied to the so-
For the foreseeable future, many of
needed to solve very different types
ciety (and their own stockholders)
have proliferated, the historical core
a corner of an industrial society lutions of these problems, indicates
the most important problems for so-
of problems — who should lead the
would be much better for it if they
disciplines have drifted more toward
that is comfortable, but largely ir-
exactly the opposite. But the struc-
ciety (and perhaps for government)
were to choose to explore avenues
"iteration" and "improvement" and
relevant to the flows of technology
tures that served so well in the past
will require chemistry, although not
Universities should, ideally, lead in
for growth, rather than to settle into
away from "discovery."
that change the world.
will not do equally well in the future.
necessarily the kind of chemistry changing the structure of chemistry,
a retirement that is irrelevant to
In the new era, both academic
One change is that some of the now popular in the research univer-
not because they are more competent
channeling the streams of technol-
Nothing Goes on Forever
and industrial chemistry (ideally chemical "opportunities" are now ur-
sities. Stabilizing the environment,
than industry or government, but ogy that will shape the future world.
with cooperation from government)
gent necessities. Academic scientists
managing energy, providing afforda-
because they are less constrained,
The depletion of the vein of new would benefit from abandoning dis-
are uneasy when faced with "time-
ble healthcare, generating jobs, pro-
and because one of their jobs is edu-
ideas and commercial opportunities
tinctions between science and engi-
lines" and "deliverables." Some of the
tecting societies in unsettled times:
cation, and education is the future.
that marked the end of the postwar
neering, between curiosity-driven problems facing society (for example,
all are extraordinary challenges, Many useful types of change would
In short, chemistry must expand its
period was inevitable: nothing goes
understanding and solving hard climate change, management of en-
mission from "molecules," to "every-
on forever. And the issue is cer-
problems, and between chemistry ergy production and use, lowering
thing that involves molecules." For
What's next?
tainly not that society has run out
and other fields, from materials sci-
costs of healthcare and distributing
academic chemistry, this expansion
New classes of problems – new directions for chemistry
of problems for chemistry to solve.
ence to sociology.
its benefits) must, in fact, be attacked
will provide fresh intellectual and
1) What is the molecular basis of life, and how did life originate?
In fact, I would argue the opposite:
immediately, and finding approaches
practical challenges, and fulfill its
2) How does the brain think?
that chemistry may now be the most
What's Next?
to their solution is urgent.
ethical obligations to the taxpay-
3) How do dissipative systems work? Oceans and atmosphere, metabolism, flames.
important of the sciences in its po-
Other, seemingly less urgent,
ers who pay the bills. For industrial
4) Water, and its unique role in life and society.
tential to impact society. The sci-
Coming out of this extraordinary enigmas (for example, understand-
chemistry, the expansion of scope
5) Rational drug design.
ence and technology that developed
era of the 50s to the 80s, chemis-
ing the molecular basis of life) will
would open the door to new com-
6) Information: the cell, public health, megacities, global monitoring.
in this period will continue as the
try has a certain intellectual and be entirely based on curiosity. While
mercial opportunities, and to future
7) Healthcare, and cost reduction: "End-of-life" or healthy life?
foundation of whatever the field be-
organizational style. The percep-
there are many problems to which
growth. For government and for
8) The microbiome, nutrition, and other hidden variables in health.
comes, but the most urgent oppor-
tion — by society, and probably by chemistry is the discipline offering
Society, it would build some of the
9) Climate instability, CO2, the sun, and human activity.
tunities now lie in new directions.
most chemists — is that chemistry is
the most plausible expertise, how
capability needed to solve problems
10) Energy generation, use, storage, and conservation.
These new opportunities are, less exciting than biomedicine, brain
will the participants (research uni-
that currently seem insoluble.
11) Catalysis (especially heterogeneous and biological catalysis).
however, much broader in scope science, "social engineering", stud-
versities, industry, government, and
12) Computation and simulation of real, large-scale systems.
and greater in complexity than the
ies of climate change, astronomy, interestingly, in the future, founda-
Prof. George M. Whitesides,
13) Impossible materials.
simpler, previous problems, and re-
and a number of other fields. The
tions) set priorities? Who will do
14) The chemistry of the planets: Are we alone, or is life everywhere?
quire new structures and methods.
increasing evolution of the chemical
what, in what order? How long will
15) Augmenting humans.
To deal efficiently with these prob-
industry toward a commodity-and-
16) Analytical techniques that open new areas of science.
Chemistry, Public Understanding, and a Sense of Style
17) Conflict and national security.
18) Distributing the benefits of technology across societies: frugal technology.
This article is based on an essay Prof. White-
If someone asks: "what does chemistry do? "better glue" is not an arresting answer. Let me sketch a conversation I have had on various
19) Humans and machines: robotics.
sides published in Wiley's journal angewand-
occasions—in one form or another. The person next to me says, "What do you do?" I answer "I'm a chemist." S/he responds: "Chemistry
te Chemie International edition, Vol. 54, 2015.
was the one course in high school I flunked. What is it that chemists do, anyway?" I have tried two types of answers.
21) Controlling the global population.
The complete essay and references are
One is: "Well, we make drugs. Like statins. They are inhibitors of a protein called HMGA-CoA reductase, and they help to control choles-
22) Combining human thinking and computer "thinking."
available on Wiley Online Library via the fol-
terol biosynthesis and limit cardiovascular disease." (This answer usually ends the conversation.)
23) All the rest: jobs, globalization, international competition, and Big Data.
lowing link: http://onlinelibrary.wiley.com/
The second is: "We change the way you live and die." The second answer works better.
24) Combinations with adjacent fields.
Emerald Kalama Wins First OK for
Kuraray Expands into
Invista Brings Terrin Polyols
Dutch Benzoic Acid Unit
Bio-based Barrier Materials
to Europe
Emerald Kalama Chemical has re-
The added purification and finish-
Japanese plastics and fibers group
creasing global demand of bio-based
Invista is now producing Terrin to serve the growing European de-
ceived preliminary approval to build
ing capacity will support growing Kuraray is expanding into bio-based
food packaging materials, it said.
polyols at its plant in Vlissingen, the
mand for competitively priced prod-
a second benzoic acid purification
demand for the company's high barrier materials with the acquisi-
Kuraray said its global sales Netherlands, as well as in the US.
ucts with sustainable content," said
and finishing process at its facil-
purity Kalama and Purox brands of
tion of Australia-based Plantic, one
network will help develop Plantic's
The site produced its first commer-
Nadine de Vries, vice president of
ity at Rotterdam, the Netherlands.
benzoic acid flakes, sodium benzo-
of the leading global producers of
bio-based barrier business in Eu-
cial volumes in late 2014, as well as
Terrin and Terate polyols for Invista
A building permit is expected later
ate granules and liquid benzoic acid,
bio-based barrier film used in food
rope, US and Asia, where demands
completing its registration under EU
Specialty Materials. Terrin aliphatic
this year, and the expanded output
which it provides to the market and
in terms of improved freshness, re-
REACh legislation. Invista also pro-
polyester polyols contain a minimum
of 100,000 t/y is expected to be in
utilizes for the production of down-
Plantic, founded in 2001, produc-
duced food loss and waste can be
duces aliphatic Terrin and aromatic
of 50% recycled content, with some
the market by in Q4 2016. The pro-
stream products, notably K-FLEX es bio-based barrier materials us-
met with the use of the environmen-
Terate polyols in Wilmington, North
also containing renewable content.
ject is the US company's seventh non-phthalate plasticizers and coa-
ing a patented polymer technology
tally friendly material.
Carolina, US.
Formulators can use Terrin polyols
multi-million-dollar investment in lescents. (dw)
based on high-amylose starch. The
By developing new markets, the
"By expanding production of the instead of, or in combination with,
the past several years at the Dutch
acquisition of the Australian com-
Japanese group said it expects to Terrin family of polyols into Europe
conventional polyether or polyes-
site acquired from DSM Composite
pany will enable Kuraray to provide
achieve revenue of 10 billion yen and utilizing an existing Invista ter polyols to formulate a variety of
Resins in 2010, the company said.
barrier materials which meet the in-
(€78 million). (dw)
manufacturing facility, we are able
polyurethane products. (eb)
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
Chengdu Rongsheng Pharmaceutical
Ashland Invests in Specialty
Goes Digital with MES
Ashland Specialty Ingredients is binders and coatings, among oth-
investing about $89 million over ers.
he Rongsheng pharmaceu-
2014, the MES now ensures exclu-
into two stages. The implementation
Improving GMP Production Quality
the next three years to increase
Capacity for Natrosol will be ex-
tical production plant at sively electronic operations and FDA
includes completely integrating the
production of specialty chemicals panded by 4,700 t/y, or 40%, and
21 CRF Part 11 compliant workflows
data at the PCS layer with the ERP
For the purpose of patient safety, at its facility in Hopewell, Virginia,
that for Klucel by about 50%. Work
Chengdu in China's Sichuan
with electronic records and elec-
layer, as well as real-time commu-
pharmaceutical quality assurance, US. The majority of the investment
is expected to start in mid-2015. As
province has entered into the digital
tronic signatures.
nication. The result is a three-layer
and data integrity, the project en-
will be spent on raising production
a result of the expansion, Ashland
age. The contract signed in June 2011
The project covers the entire structure of automation, MES and compasses real-time electronic of two key product lines - Natro-
expects to add around 17 new jobs
blood products factory of Rong-
ERP, the foundation of the digital batch records, electronic signature,
sol hydroxyethylcellulose (HEC), to the plant‘s current total of 237.
between Chengdu Rongsheng Phar-
sheng, including production plan-
batch design, execution and review
used as a thickener in latex paints,
The state of Virginia will support the
maceutical Co. and Siemens has been
ning, equipment status manage-
The project strictly follows GMP
by exception, full audit trail and and Klucel hydroxypropylcellulose
investment with a $700,000 grant as
successfully completed. It covered the
ment, process monitoring and man-
requirements. Implementation and
genealogy. It ensures that there is
(HPC), used to enable time-release
well as other benefits and services.
ufacturing declaration of finished validation of the entire project no cross-contamination between delivery in pharmaceutical tablet (eb)
different phases of implementing a goods to the warehouse. It meets are completed in compliance with batches. Further, it ensures that Manufacturing execution System (MeS)
GMP regulations in terms of pro-
GAMP5 guidelines through a col-
only equipment that meets the re-
Roquette Commissions
at the Rongsheng Chengdu plant.
duction procedure standardization
laboration between different Rong-
quirements in terms of sterilization
and lean manufacturing manage-
sheng teams (QA, manufacturing, or cleaning and calibration is used.
ment. It also supports strict control
IT) and the Siemens Industry Soft-
The MES system controls the release
Compliance with FDA Requirements
requirements of effective production
ware organization in China and of production quality parameters. It
procedure in compliance with GMP
France. All aspects and steps of the
also releases production schedules
French family-owned group Roquette
with a purity of above 99.5%. Ro-
After the implementation and suc-
specifications. Over 50 work orders
implementation from the Unique and plans, and controls the expiry
has started up a second production
quette's isosorbide is sold under the
cessful go-live of phase I in Decem-
and 1,000 tasks are carried out on
Requirement Specification, Func-
date, accuracy and genealogy of plant for its plant-based material, brand name Polysorb and is used in
ber 2012, and of phase II in Septem-
a daily basis.
tional Specification, Design Specifi-
materials. It significantly decreases
isosorbide. Roquette said the facil-
performance plastics such as poly-
ber 2013, the MES system was used
cation, to Factory Acceptance Test,
risks due to manual operations in
ity in Lestrem, Pas-de-Calais, is the
ester, polycarbonate, and polyure-
in parallel with the paper-based
Implementation of
Site Acceptance Test to Installation
the production process and im-
world‘s largest isosorbide production
thane, and curable resins. It can also
flows and systems, in compliance
Siemens Industry Software
Qualification and Operational Quali-
proves production compliance unit with a capacity of 20,000 t/y.
substitute for bisphenol A in poly-
with FDA requirements for GMP
fication, were meticulously carried
through strict process control, the
The new plant uses the group's
carbonate, and standard plasticisers
(Good Manufacturing Practices), In order to ensure smooth imple-
out, carefully following validation use of electronic instructions and patented process based on sorbitol
such as the phthalates used in PVC.
until August 14. Starting in August
mentation, the project was split up
bar code technology.
that can produce isosorbide grades
Bayer CropScience to Invest at
New Reactor Ups Arkema's
Evonik's Alabama Site
Brazilian Coating Resin Output
Bayer CropScience plans to locate
Evonik, one of Alabama's largest
Arkema's Coating Resins business has
er range of chemistries," including
a plant that would supply produc-
foreign investors, will supply start-
expanded its acrylic resin manufac-
100% acrylic, styrene acrylic, vinyl
tion of its Liberty brand glufosinate-
ing materials for the herbicide. Ac-
turing capacity at Araçariguama, Bra-
acrylic, the company's vinyl VeoVa
ammonium herbicide at Evonik's US
tual production of the finished crop
zil, by 60% through the installation of
and polyvinyl acetate (PVA), Schmitt
site in Mobile, Alabama.
protection agent will take place at
a new reactor. With the start-up, the
Troy Wayman, vice president of other Bayer plants.
French chemical producer said it has
As production ramps up, Arkema
economic development for the Mo-
Wayman said co-location ar-
"improved virtually every aspect" of
said it will begin introducing new
bile chamber of commerce, told an
rangements linking international its latex production in Brazil, includ-
products based on demand and
ACHEMA, Frankfurt/Main, Germany
Alabama business promotion website
chemical producers are becoming ing manufacturing, logistics and ship-
market potential. Products initially
June 15 – 19, 2015
the Bayer group company will spend
more common. In 2013 the devel-
ping, storage, filtration and the capa-
added will include a high scrub-
Hall 3.0, stand F50
$120 million on the project, which opment board approved a tax abate-
bilities of the reactor itself, which will
bing styrene acrylic resin for use
will go on stream before the end of
ment for BASF Corporation, US sub-
enable manufacturing of new product
in architectural coatings; a 100%
2015 and benefit from local invest-
sidiary of the Ludwigshafen, Ger-
chemistries in the region.
acrylic ideally suited for fast-dry
ment incentives. Initially, Wayman many, chemical giant to co-locate
"These improvements will enable
traffic paints; a styrene acrylic la-
said, the Monheim, Germany-based
an $84.3 million facility at Evonik's
us to begin migrating production tex for use in mortars and grouts,
agrochemicals producer had in-
Mobile site.
capabilities and product lines cur-
tile adhesives and waterproofing
tended to build an integrated facility
In August 2014, Evonik announced
rently available in other parts of the
membranes, as well as cement-
worth just under $400 million, which
plans to invest $113 million at Mobile
world to the facility in Brazil," said
based skim coats, gap fillers and in
would have produced its own starting
to create a chemical park that would
Eric Schmitt, president of Arkema decorative concrete applications;
material. However, as the expected
attract co-location projects. The ex-
Quimica Ltda. Brazil.
and a high solids acrylic pressure
investment cost ballooned to $500 pansion is expected to be completed
Products manufactured at the sensitive adhesive for label applica-
million, Bayer decided to co-locate.
in mid-2017. (dw)
plant will now include a "much wid-
Huntsman Increases
Ineos' Ratcliffe Suing
SOME THINK
Specialty Amine Capacity
Former Partner MacLean
US chemical producer Huntsman
Over the past several years A feud between Ineos chairman
Ratcliffe is said to be seeking
has announced plans to expand Huntsman, which claims to be the
Jim Ratcliffe and former business to cancel MacLean's severance
capacity for specialty amines at world's leading manufacturer of partner Calum MacLean has taken
package worth "tens of millions of
DECREASE
its sites in Petfurdo, Hungary, and
specialty amines, said it "has seen
a dramatic turn, with Ratcliffe now
pounds," as he believes the "poach-
Conroe, Texas, US, by 2016. Finan-
interest in many specialty amine suing his Ineos co-founder and ing" of an Ineos executive violates
cial investment and capacity were
product lines accelerate from users
former righthand man who rose the terms of the sign-off. Although
IN ENERGY
not disclosed.
in the polyurethane foams, coatings,
to prominence by micromanaging most of the money is believed to
The company said its new multi-
lubricants and detergents across the
the industrial dispute at the Gran-
have been already paid out, City said
purpose unit at Petfurdo will add to
gemouth, Scotland, refinery and the Ineos chairman wants to with-
its manufacturing portfolio, further
Stu Monteith, president of Hunts-
chemical complex.
hold "the remaining millions."
leverage its integrated amines capa-
man's Performance Products divi-
According to the London business
In the meantime, Ratcliffe has con-
bility and increase existing specialty
sion, said the capacity expansion newspaper City A.M, which broke firmed having written to Synthomer
COMPROMISE
amine production capacity at the leverages the company's strong the story, the multi-million pound – saying that hiring Bennett reflects Hungarian facility by 20%.
manufacturing and technology lawsuit centers around MacLean's "very badly" on the reputation of a
THROUGHPUT.
At the Texas plant, Huntsman base and enhances what he said is
2014 resignation as chief executive
company whose code of business as-
will add equivalent capacity and im-
already the widest in-house manu-
of Ineos Olefins and Polymers Eu-
serts that the trust and confidence of
prove the flexibility of its specialty
facturing capability across the in-
rope to take the same job at Syn-
suppliers and customers is one of its
thomer, formerly Yule Catto. The most important resources.
newspaper said MacLean, who was
After receiving a reply, the Swiss-
"raided" by the UK-based chemical
based entrepreneur is said to be
Air Liquide Starts Steam
company, subsequently lured away
"considering" his position – Ineos
Ineos' finance executive Steve Ben-
and Synthomer companies are en-
At BEUMER we have a reputation for making things a little
nett to become Synthomer's chief twined in several trading agree-
diff erent. Take the stretch-fi lm pallet packaging system,
Reformer at Bayer TDI Site
financial officer.
BEUMER stretch hood®. In a sector where energy-intensive shrink hooding is still common, BEUMER stretch hood® uses
French industrial gases producer bon monoxide and hydrogen to the
a non-thermal stretch-fi lm system. The result: better load
Air Liquide has officially started new 300,000 t/y plant TDI operated
stability, higher throughput, up to 10 times less fi lm consump-
up its new state-of-the-art Steam by Bayer MaterialScience at the
Socar Licenses Innovene Process
tion and 90% energy savings. All this makes a big diff erence
Methane Reformer (SMR) in Ger-
site. Dormagen is the designated
to productivity – and to the environment.
many's Chempark Dormagen. The
TDI hub for the soon-to-be-spun
for Azerbaijan PE Plant
For more information, visit www.beumergroup.com
new €100 million unit described off engineering plastics producer. by Air Liquide as "highly flexible"
Connected to Air Liquide's 600km Ineos Technologies has licensed its
The facility, scheduled to go on
has annual capacity for 22,000 t/y
Rhine-Ruhr pipeline, it will also sup-
Innovene S process for high den-
stream in 2016 in the Chemical
of hydrogen and 120,000 t/y of car-
ply hydrogen to other customers in
sity polyethylene to Socar Polymer,
Technology Park in Sumgayit will
bon monoxide.
part of the State Oil Company of produce a wide range of HDPE
Under a long-term agreement
Azerbaijan for a 200,000 t/y HDPE
grades to supply growing demand
signed in 2012, the gases plant will
plant it is building at Sumgayit, for high performance products.
be the dedicated supplier of car-
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
BCG's Total Shareholder Return (TSR) Analysis Reveals Best Performing Chemical Companies
For the second consecutive year, the Boston Consulting Group has con-
ducted a total shareholder return (TSR) analysis of the chemical industry. The top 10 chemical companies have excellent returns — fourth best,
in fact, among the 25 industries BCG analyzed. There have been big shifts in the composition of the top-performer list compared with the year before. US and european chemical companies have come roaring back, displacing the emerging-market chemical producers that were getting the best TSRs only a few years ago.
Yves-Pierre Willers,
Andreas Gocke,
Boston Consulting Group
Boston Consulting Group
Until recently, the TSR differences European companies are disciplined among regions and subsectors about shedding businesses that have followed a predictable pattern: yielded disappointing profits. Anoth-Emerging-market chemical com-
er is the trend toward teaming up in
panies had the highest returns of a multispecialty: the Rhodia-Solvay all regions, and agrochemicals and
and Clariant-Süd-Chemie mergers
fertilizers had the highest returns of
have fueled expectations of further
all sectors. But that changed dur-
consolidation. The third develop-
ing the most recent five-year period.
ment is the likelihood of outbound
Although some emerging-market M&A: for example, Chinese investors companies with five-year TSRs still
have made moves to acquire stakes
approach or exceed 30%, there are
in foreign multispecialty companies
Rawpixel - Fotolia.com
also quite a few emerging-market or acquire them outright.
companies whose five-year TSRs are
Looking more closely, we see
negative. As a result, the average that eight of the top 10 companies
primarily on its understanding of come much more profitable, closing
remarkably little to R&D: less than
panies have been particularly smart
five-year TSR of emerging-market are based in developed economies,
its customers and only secondarily
what was once a big gap with their
1% of revenues.
in their approach to apportioning
chemical companies is a dismal -2%;
and only two have headquarters in
on its roots of selling cleansers and
US counterparts. Portfolio transfor-
What explains the absence of a
overhead, putting highly skilled
only Japan's average (-8%) is worse.
Latin America. The top companies
other hygiene chemicals to institu-
mations, the divestiture of subcriti-
correlation between large R&D pro-
managers in emerging markets
achieved their superior TSRs in tions such as hotels. Other power-
cal businesses, and the shift away
grams and the success of a chemical
that can't reasonably be expected
Strength In Maturity
one of four ways: through aggres-
ful business systems give companies
from the commodity business to company? To some extent, compa-
to run on autopilot while eliminat-
sive revenue growth (for example,
control of intellectual property (for
more advanced chemical segments
nies' thinking about R&D may be ing administrative layers in more
The average five-year TSRs of Euro-
Synthos, Mexichem and LG Chem);
example, Victrex), or allow them to
have all contributed to European outmoded. Many chemical compa-
mature markets. European com-
pean and North American chemical
through feedstock-based margin do more innovative application de-
companies' improving margins. nies, including some scientific blue
panies have not followed this tactic
companies are much higher: 7% and
expansion (Westlake and SQM); velopment (Croda).
These companies have also focused
chips that are still magnets for the
nearly as faithfully, and as a result,
4%, respectively. Emerging-market
through pricing-based margin ex-
on productivity in a variety of ways,
world's best chemical talent, empha-
some of them still have layers of
chemical companies tend to focus pansion (Croda); and through valu-
How the Top Performers Created Value
including consolidating country size chemical breakthroughs. This management that are more com-
on the base-chemical and basic-
ation multiple improvements result-
structures into regional structures,
is true of many Japanese chemical
plex — and costly — than necessary.
plastic sub-segments, leaving them
ing from improved macroeconomics
Chemical companies can improve setting up shared services for ad-
companies, as well as some Euro-
To the extent that they can let go of
vulnerable when demand cools off in
(Sherwin-Williams, Eastman and their performance in a number ministrative functions, unwinding pean and US ones. Companies in their insistence on organizational
those sectors. We expect all of these
W.R. Grace).
of ways: They can use technology, complexity in the reporting matrix,
these regions all make relatively consistency, European companies
factors to change in the next dec-
switch to a new kind of feedstock,
and removing layers from their or-
large R&D investments.
may be able to get a few more per-
ade, and for Asia-Pacific and Latin
go after a new customer segment ganizations.
Yet it is legitimate to ask how centage points of cost out of their
American players to emerge as
or enter a new region, or make a
In contrast, Japanese companies
many breakthroughs can be expect-
SG&A functions.
much stronger competitors. But for
A different analytic ap-
business model change. Eventually,
have continued to struggle to im-
ed from the world's chemical labs. In
Fixed-Asset Productivity: The
now, the less mature structures and
proach — viewing the top compa-
all of these show up in operational
prove and now have the bottom of
most chemical segments, it is prob-
chemical industry is, in general,
business models of chemical compa-
nies through three different time metrics — specifically, in the seven the profitability rankings to them-
ably less important to find the next
capital-intensive, and diversified
nies in these regions have put them
periods — suggests that there are measures we believe are the most
breakthrough innovation than to be
chemical companies in particular
at a disadvantage.
two strategic points of control that
closely tied to TSR:
Within the sectors, the big profit
creative about applying and adapt-
face a big challenge in allocating
In contrast, conditions are be-
chemical companies use. Either
▪ revenue growth;
accelerator has been the world's ing compounds that already exist.
capital. Chemical companies have
coming more favorable for North of these two strategies can give
rising need for food from the agri-
This is not to say that R&D has
a tendency to overinvest in the ac-
American chemical companies, chemical companies market values
▪ innovation and R&D;
cultural sector. Agrochemicals and
lost its value — far from it. But the
tivities that led to success in the
particularly with the rise of shale that vastly exceed the replacement
▪ selling, general, and administra-
fertilizers have benefited from the
evidence suggests that companies past and to underinvest in activi-
gas as a resource. Shale gas, which
value of their physical assets — the
tive expenses (SG&A);
huge demand and from the resulting
should revisit the goals of their ties that might be important in the
serves as a ready form of low-cost
clearest indication of the power of a
▪ fixed-asset productivity;
price increases. The loss of arable
R&D programs and manage their future. Indeed, executives need to
feedstock, stands to make the entire
company's business model.
▪ working-capital productivity;
land combined with an increased R&D expenditures more rigorously,
watch for this, as one of the ongo-
North American chemical industry
The first, more common point
▪ portfolio management
need for agricultural output has shifting their R&D efforts toward ing impediments to value creation
more competitive. To date, most of
of control is advantaged access to
boosted demand for productivity-
finding solutions and innovations in the industry.
the shale gas benefit has been cap-
scarce physical assets. For instance,
Revenue Growth: As with companies
enhancing chemicals. The dynamics
for specific customers and customer
Nevertheless, in the past 20
tured by petrochemical divisions of
mining assets have been a power-
in other industries, there is usually
of the food commodity boom have
years, the chemical industry has
integrated oil companies that are ful source of advantage not only in
a positive correlation between rev-
also benefited precursor businesses
Selling, General and Administra-
made strides in its overall fixed-
not included in this survey, but the
the potash industry but also in busi-
enue growth and chemical company
that supply active ingredients, aro-
tive Expenses: SG&A costs diverge
asset productivity. Until 2000, aver-
benefit eventually will extend to nesses as diverse as sulfur deriva-
TSR. However, the correlation has
matic feedstock, mining chemicals
widely within chemical segments, age annual capital expenditures ex-
many of the more than two dozen
tives, fluorine chemistry, tungsten been less pronounced over the past
and formulation aids for fertilizer but in the past 20 years the trend in
ceeded 10% and sometimes topped
North American companies on our
carbide, lithium derivatives and 20 years, and in some cases, other
and agrochemical companies.
all regions and sectors has been the
20% in the area of base chemicals
bromine-based flame retardants. In
factors appear to outweigh revenue
All other sectors have under-
same: downward.
and basic plastics. In recent years,
Europe is the region in which BCG's lists of top performers, Pot-
growth in determining TSR.
gone some margin erosion, with
On average and across all re-
capital spending has been much
chemical TSRs have remained ash, K+S, Mexichem, Israel Chemi-
Indeed, a few chemical compa-
base-chemical and basic-plastic gions, SG&A spending has come more restrained. This is partly be-
strongest. This may be because of
cals and SQM have all benefited nies have achieved TSRs in excess
companies faring the worst. These
down in the past 20 years — from
cause of the thresholds that most
the abundance of multispecialty from their advantaged access to of 10% while generating almost no
companies have had to absorb oil
almost 20% to 15%. A lot of this non-Asian companies — reluctant
companies there. At one time, scarce resources. Other asset-based
growth. The companies that have price increases since the Iraq war in
improvement has resulted from to saddle themselves with excess
companies in this subsector were strategic points of control include done this tend to be either highly 2002, and they lack the value-added
the effective use of technology to capacity — have put on large-scale
among the worst performers of the
standard setting (Victrex getting its
disciplined about margin manage-
products that would allow them to
improve productivity. This is par-
investments, and partly because of
chemical industry. But since 2012,
specialized PEEK polymer defined ment or creative about generating
recover their increased costs.
ticularly true of European chemical
the move away from the 1990s men-
the average TSR of multispecialty as a certification requirement for profits from noncritical business
Innovation and R&D: Theoreti-
companies since 2000. Heavy invest-
tality of investing one's way out of
chemical producers has improved some aerospace and medical ap-
cally, innovation is important for ments in ERP and CRM — undertak-
bad results; nowadays, the mindset
plications), brands (the position
Some companies have had low high-margin businesses. But as the
en to minimize IT-related problems
is more that operations and busi-
Sherwin-Williams has carved out TSRs despite rapid revenue growth.
data shows, there is not necessarily
when fears about the Y2K bug were
ness units must earn the right to
for itself in the US paint industry),
Most of these have benefited from
a positive correlation between R&D
at their height — have allowed com-
invest. The big exception to the rule
easement (SABIC's access to low-
some sort of commodity price in-
expenditures and TSR in the chemi-
panies to improve the efficiency of
of caution in capital spending seems
Investors seem to be focusing on cost feedstock), and scale (BASF's flation, and their poor TSR perfor-
cal industry. In fact, only one of the
their accounting, sales, back-office
to be China, which is creating over-
three developments with potential-
longtime leveraging of its Verbund
mance suggests that investors are
companies in our sample with R&D
and supply-chain functions. Today,
capacity in many areas relating to
ly favorable implications. One is the
hesitant to reward companies whose
expenditures exceeding 4% of rev-
European companies have SG&A base chemicals as part of a move
portfolio restructuring happening at
The second point of strategic revenue gains may be attributable
enues achieved an above-average levels comparable to those of US and
to outmaneuver Western chemical
companies such as Arkema, which
control is having a superior busi-
to external trends.
TSR, and that result is distorted Japanese companies.
divested its vinyl-product business,
ness system. An example is Ecolab's
Margin: The big change with re-
by the fact that the company has
Companies that operate inter-
In most other areas, fixed-asset
and Rockwood, which divested its ‘Circle the Customer — Circle the spect to chemical company margins
a sizable pharmaceutical business.
nationally can reduce SG&A costs
productivity has been converging,
titanium-dioxide business. These Globe' strategy. The company's new
has been the improvement in Eu-
Indeed, many emerging-market by not maintaining the same infra-
divestitures are indications that the
products and services are based rope. European companies have be-
companies with high TSRs devote structure in every region. US com-
Continues Page 9 ▶
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CHeManager International 5/2015
◀ Continued Page 8
payment more efficient in the core
Best performing chemical companies
does it take great predictive pow-
Regarding flexibility, companies
European Union market. There has
ers to see that 10 years from now,
often hesitate and display a kind of
not diverging. Twenty years ago, been no equivalent to economic uni-
a similar set of dynamics will have
"collective myopia" when change
European companies' ratio of rev-
fication in emerging markets or in
played out and some companies that
looms on the economic and social
enues per dollar of capital invested
Japan, which may explain their rela-
are around today will have been ac-
was twice that of emerging-market
tively high levels of working capital.
quired and absorbed by others.
Perhaps it's not all that helpful
companies. Now, most regions' ra-
Whatever accounts for it, working
The coming period of consolida-
to say that companies need to be
tios are clustered around 1.5:1. In
capital is a third area (after profit-
tion will present many opportunities
smarter than their peers in antici-
North America, however, the ratio ability and SG&A spending) in which
and risks — especially in an environ-
pating the second-order effect of
is closer to 1:1. The good news for
European companies have made
ment of higher multiples. The survi-
trends in feedstock, technology and
North American companies is that
big strides in the past 20 years and
7. Westlake Chemical
vors will be those that demonstrate
customer demand. The more action-
the shift reflects huge investments
are now virtually on par with their
speed, flexibility, and strategic focus.
able advice might be that companies
in shale gas, which is likely to boost
North American peers.
In terms of speed, the chemical need to improve the quality of their
the region's financial performance
Portfolio Management: The avail-
industry is undergoing huge chang-
corporate planning and foresight
for years to come.
9. eastman Chemical
able data does not allow for a 20-
es — in terms of demand and supply
Working-Capital Productivity: year analysis of M&A activity. Still,
* Average annual TSR 2009-2013
and regional power shifts. On the
When it comes to strategic focus,
Working-capital management var-
the 10-year data reveals a striking
More industry rankings are included in BCG's 2014 Value Creators Report.
demand side, formerly hot growth too many chemical companies are
ies widely among chemical compa-
pattern: From 2003 through 2012,
areas — notably renewable energy in
in the habit of letting operational
nies. Because inventory levels are US and European companies con-
Europe, defense programs in the US,
matters become preoccupations
a critical part of working capital, ducted a number of transactions, but
M&A: Opportunity and Risk Ahead
them. A multispecialty company that
and e-mobility everywhere — have
of the corporate board. There is
companies that have a flexible sup-
US companies concentrated mostly
is in one type of plastics could move
cooled. But there are numerous up-
no mystery about why this is the
ply chain — and therefore don't have
on acquisitions, while European Higher prices that chemical com-
into another type or into hybrid ma-
and-coming growth applications that
case: chemical companies are com-
to carry as much inventory — tend to
companies focused more on dives-
panies have been able to charge terials. These companies have prod-
are taking the place of those demand
plex, and internal departmental is-
have better working-capital ratios.
titures. This difference almost cer-
and more rigorous expense con-
uct boundaries that are, in a sense,
drivers, including 3D printing and sues often require resolution. But
Many factors determine why one tainly stems from the European in-
trols have left many companies permeable. Fertilizer companies wearable electronics. On the supply
a plethora of operational topics in
company has a good supply chain
dustry's greater diffusion. European
with excess cash. As a result, these
typically don't.
side, there's the influence of shale gas
the top-management suite keeps
while another company's is inad-
companies had more ill-fitting parts
companies may be on the prowl for
One of the implications of this is
in North America and of coal-to-ole-
many companies from focusing on
equate, but one significant factor to shed. In emerging markets and in
acquisitions — or looking for other that the quality of a company's M&A
fins in China. Chinese companies are
more strategic issues. Leaders have
is the interface between sales and
Japan, M&A activity of any sort has
ways to grow inorganically, by, for
function — already important — is
by far the biggest new regional force;
to find ways to minimize their op-
manufacturing. In companies with a
generally been more sporadic.
example, taking minority stakes in
going to become critical in the next
their push into high-value chemical
erational involvement, preferably
good sales-manufacturing relation-
Although the data about US and
joint ventures.
few years. It is inevitable that many
sectors is likely to create challenges
by pushing their direct reports and
ship, the supply chain is typically European company M&A activity
Japanese companies provide chemical companies will acquire for many Western companies and operational entities to act effective-
better, and the working capital-to-
is necessarily focused on the past,
perhaps the clearest example of a
their way into sectors in which jeopardize the profits of those that
ly at the interfaces and to resolve
revenue ratio is usually lower than
we think it offers a forward-looking
group that should be taking advan-
they don't currently have expertise.
are currently operating in Asia.
cross-unit conflicts with minimal
in other companies.
implication: US companies have tage of their financial flexibility. For
Knowing how to make these moves
To thrive in this environment of
The other two components of greater skill in the risky business of
senior executives at Japanese com-
successfully is one capability that is
change, chemical companies are go-
working capital are receivables adding new businesses. US chemical
panies, the challenge will be to en-
going to separate the value creation
ing to need to quickly adjust their
Yves-Pierre Willers,
and payables. European compa-
executives are continually scouring
ter the world of outbound M&A and
leaders from the laggards.
resource allocations and be crea-
senior partner, Boston Consulting
nies appear to have benefited from
the landscape for companies to buy;
divestitures — a world from which
tive about seeding new businesses
Group, Shanghai, China
unification and from the move to a
they may be said to have an always-
they have been largely absent.
Who Will Create Value in the Future?
through their venture-capital arms,
Andreas Gocke, senior partner,
single currency, which have made
on approach to M&A. If, as we be-
But the Japanese aren't alone in
investing in joint ventures, and re-
Boston Consulting Group, Munich,
lieve, this always-on M&A capabil-
facing risks in an era of accelerat-
It doesn't take a deep knowledge of
thinking their supply chains and Germany
ity will be a major source of future
ing M&A. Many agrochemical and
the chemical industry to see that it
business models. It won't be enough
value creation, European chemical
fertilizer companies face risks and
has changed over the past decade.
to understand the tactical options;
A comprehensive version of
companies, as well as those in other
will have a harder time than, say,
Many companies that were around
the winners will be those that an-
2 [email protected]
this article can be found on
regions, may be at a disadvantage
multispecialty companies in find-
10 years ago — including some with
ticipate where the market is going
compared to US companies.
ing adjacencies that make sense for
storied histories — are now gone. Nor
and get there the fastest.
US Companies Point to Increased
eder tHE ENcyclOPEdIa ONlINE
al Regulations as Barrier to Growth
Specialty chemical manufacturers latory pressures" among the top ing regulations suggest that if these
The third edition of the
have identified federal regulations
three responses. This option ranked
regulatory barriers were addressed,
as a barrier to growth in a recent in-
second only to "global competition."
companies would be able to allocate
dustrywide Business Outlook Survey
Rounding out the top three risks was
further resources to innovation and
Wiley encyclopedia
conducted by the Society of Chemi-
"availability of suppliers."
growing their businesses.
cal Manufacturers and Affiliates
"There is a place for — and often
It is also clear from this survey
(SOCMA) in partnership with UBM.
a need for — effective, efficient regu-
that specialty chemical manufac-
According to the survey, more lations that help protect the environ-
turers play a key role in the global
than half of those who responded say
ment, instill public confidence in our
economy. This in turn demands a
federal and state regulations were industry and protect workplace and
keen understanding of often com-
a significant barrier to growth last
consumer safety," said Sloan. "Un-
plex foreign regulations that will
AVAILABLE
year and will continue to be a bar-
fortunately, there are regulations on
help the industry reach the 95% of
rier in 2015. Responses also indicate
the books now that ultimately im-
consumers who reside outside the
these companies expect to spend pose significant burdens and costs
US. SOCMA understands the increas-
more money on regulatory compli-
that impact companies of all sizes.
ing importance of access to new
ance this year than last year, and The majority of SOCMA members markets, and is a staunch supporter
Online ISBN: 9781118785317
a quarter of respondents say they are small and medium-sized busi-
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nesses, which often feel a dispropor-
enable its member companies and
environment before deciding to ex-
tionate impact of these regulations.
other specialty chemical manufac-
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pand their manufacturing business.
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"The survey results underscore
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While optimism is a bit measured
the need for federal lawmakers to
without compromising industry's in some areas, the overall results of
Online Reference Works combine the quality content you'd expect in a landmark print
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manufacturers," said Lawrence D. the global marketplace."
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SOCMA President and CEO.
encing, and regular updates, these expertly edited
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"Onerous and inefficient regulationsces set the benchmarks for scholarly r
Survey found that specialty chemical eference.
deprive our members of significant
manufacturers are demonstrating
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US Environment Agency May Restrict Some Neonic Use
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Syngenta and BayerCropScience, the
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and supporting information
with Europe in restricting the
ing an assessment of six types of European Union imposed a two-year
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Faced with mounting criticism maining two a year later. Up to now,
tario province announced plans to
and enhanced MARC records at no extra charge.
as well as a still pending lawsuit —
the EPA has not recognized the need
reduce the acreage sown with crop
Praise for the Second Edition
filed in 2013 by a coalition of bee-
for immediate action on neonics. The
seeds treated with neonicotinoid-
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keepers, environmental and con-
agency said early this month it would
based insecticides by 80% up to 2017.
Library Journal
sumer groups in a federal district
review its de facto moratorium if new
Pesticide producers blame the
court — the Environmental Protec-
crop protection problems appeared
bee disease known as Colony Col-
Speak to your Wiley r
Agency (EPA) has said it is un- ep today,
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lapse Disorder on a variety of fac-
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likely to call +44 (0)1243 843291
approve new or expanded
of the pesticides in question.
tors, including habitat loss and dis-
uses of certain pesticides before the
Over protests by agrochemicals
ease, while disputing that neonics
risks are fully evaluated.
giants including market leaders are the primary cause. (dw)
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CHeManager International 5/2015
How Liberalized Chemicals Trade Underpins Global Value Chains
Chemicals are vital to our well- chemical industry, bolstering sales
way for other bilateral and multi-
being. They help us grow more
and jobs. But barriers need to be
lateral negotiations with and be-
stripped away. Despite some mul-
tween Asian economies. It can also
abundant crops and preserve
tilateral trade deals within the
contribute to broader acceptance of
our food. In the form of plastics, rubber
General Agreement on Tariffs and
world standards by Japan, where
and foam, they help make our homes,
Trade (GATT) framework and some
many barriers stem from stricter
bilateral agreements between the
Japanese standards. And thirdly,
factories and vehicles clean and com-
European Union and its partners,
an agreement with Japan could
fortable. They enable us to make safer,
much remains to be done in open-
reduce any handicaps suffered by
lighter, cheaper, more durable goods
ing markets. And our industry
European companies arising from
also needs better access to afford-
the proposed Trans-Pacific Partner-
and structures. and they help us to ex-
able energy and raw materials and
ship (TPP) agreement to which the
tract energy and use it efficiently. Trad-
greater harmonization of standards
EU will not be a party.
ing chemicals around the world stimu-
and regulations around the world.
The EU chemical industry also
A more coherent policy framework
has a lot to gain by increasing our
lates competition, provides an incen-
would help the European chemical
chemical connections with regions
tive to develop new markets through
industry fulfill its vocation of ensur-
including India, China, the Gulf Co-
innovation and boosts production ing that by the year 2050 more than
operation Council (GCC) and Merco-
9 billion global citizens live well,
sur. Spurring EU chemical industry
efficiency. But above all, it helps to im-
within the resources of the planet.
growth in all these regions requires
prove the quality of human life.
eliminating all chemical tariffs and
removing all trade barriers, includ-ing export restrictions and export
Between 2014 and 2050 the world's
duties on raw materials. Ensuring
population will surge from 7.2 bil-
effective protection and enforce-
lion to 9.5 billion, according to the
ment of intellectual property rights
United Nations. But over the same
is essential to give investors confi-
period, Europe's total population
dence and foster innovation. Non-
will decline to 709 million, just 7.5%
tariff barriers such as double-testing
of the total. Meantime Asia's popu-
of products and burdensome licens-
Servet Gören, CEFIC
lation will grow to 5.1 billion, 54%
ing and labeling requirements, and
of global citizens; and Africa will be
failure to comply with international
home to 2.3 billion, twice as many as
standards prevent the EU and these
Most chemical products are inter-
today, and a quarter of those on our
regions from achieving the full com-
mediates, used in the production of
planet. World chemicals production
mercial potential of their chemical
other goods. The chemical industry
is set to almost double from €3.4
underpins virtually all sectors of the
trillion in 2013 to €6.3 trillion in
economy and its strategies directly 2030. But most of this growth will be
Broad-Based Tariff Liberalization Needed
affect downstream chemicals users.
outside the EU: If Europe's industry
Fig. 1: Compounding trade deals in key EU markets
The big industrial users of chemicals
is to grow and share in the rewards,
Despite talks about the importance
are rubber and plastics, construc-
Europe must reinforce its role as a
of global value chains, many coun-
tion, pulp and paper, and the auto-
chemical exporting region.
Multilateralism Is the Best Option
the WTO lives up to the proclaimed
Doing Bilateral Deals
tries have yet to draw logical con-
motive industry. Nearly two-thirds
importance of global value chains,
clusions that growth of all their
of EU chemicals are supplied to the
Why Liberalized Trade Needs to Happen
By its nature, the chemical industry
the goal of the Doha round should be
Because the Doha round has made
economic sectors requires liber-
EU industrial sector, and more than
benefits from liberalized trade. Its
to substantially reduce or eliminate
such slow progress, the EU and alization of not only end-products
one-third of chemicals go to other Growth in post-recession Europe products are hugely diverse, innova-
tariffs for intermediate products in-
other regions and countries have but especially of intermediates like
branches of the EU economy such remains low, hampered by mature
tive and widely used, and its plants
cluding chemicals to help the devel-
sought to liberalize world trade chemicals. A narrowly focused en-
as agriculture, services, and other markets and an aging population. and employees are located world-
opment of these economies.
via bilateral free-trade agreements
vironmental goods agreement be-
wide. Improving trading opportu-
The European chemical indus-
(FTAs, c.f. figure 1). CEFIC considers
ing pursued by a group of countries
nities for chemicals can make the
try is being increasingly harmed by
that FTAs complement the search therefore misses the point. The
industry more competitive.
measures in other regions including
for a multilateral deal and offer op-
world economy needs broad-based
The successful Uruguay round double pricing, export restrictions
Trade barriers need
of multilateral trade talks in 1994
and export taxes. The chemicals
to be stripped away.
achieved the Chemical Tariff Har-
sector is especially concerned about
monization Agreement (CTHA) and
discriminatory practices regarding
The WTO must include in its
Pharmaceutical Agreement, which
ethylene feedstock, gas, palm oil
agenda more ambitious deals
harmonized chemical import du-
and important minerals such as yel-
at a regional level.
business activities. The rise of global
Domestic and international eco-
ties at just 6.5%, 5.5% or 0%. The
low phosphorous, fluorspar or rare
value chains gives all countries an in-
nomic uncertainty aside, EU chemi-
European Chemical Industry Coun-
earths. It therefore welcomed rulings
terest in keeping chemical import du-
cal industry exports did reach €139
cil (CEFIC) then started advocating
by the WTO Dispute Settlement Body
ties low. Nowadays trade is no longer
billion in 2013, delivering an EU for a new, ambitious and proactive
that export duties and export quo-
portunities to achieve agreements in
tariff liberalization, including ambi-
about "produced here, sold there" but
chemicals trade surplus of nearly agenda. The successive extensions
tas applied by China to rare earths,
areas that are not yet or not suffi-
tious tariff reductions for chemicals.
"produced everywhere, sold there."
€49 billion.
of the CTHA to new members of the
tungsten and molybdenum breached
ciently addressed by the WTO.
The plethora of regional and bilat-
Given an appropriate domestic WTO and updates to the Pharma-
its WTO obligations. CEFIC supports
Negotiations on TTIP — a radical,
eral trade deals being struck may
Future Economic Growth
and international policy framework,
ceutical Agreement have delivered
the strong stand the European Com-
far-reaching trade agreement — be-
reinvigorate participants to agree
Beyond Europe's Borders
the European chemical industry has
gan in July 2013 and are ongoing.
to international trade rules under
strong potential to benefit from fur-
TTIP can help reduce the cost of the aegis of the WTO. If the WTO is
Since 90% of gross domestic prod-
ther forecasted growth in global
trading with the U.S. in various to keep relevance for 21st century
uct growth will take place outside
chemicals demand. The industry
TTIP would help companies
ways. A deal would help companies
trade, it must include in its agenda
Europe in the next decade, inter-
firmly supports the European Com-
compete more effectively in increasingly
compete more effectively in increas-
more ambitious deals at a regional
national trade should be a poten-
mission's endeavors to underpin the
ingly globalized and competitive level.
globalized chemicals markets.
tial growth driver of the European
internationalization of European
chemicals markets.
companies and further liberalize
As regards Japan, negotiations Servet Gören, international trade
trade — preferably at a multilateral
for an EU-Japan Free Trade Agree-
manager, CEFIC, Brussels, Bel-
level through the World Trade Or-
tangible benefits for the industry as
mission takes against breaches of ment were launched in March 2013
The new CEFIC publication, Chemical
ganization (WTO) or via bilateral or
well as for consumers worldwide. WTO obligations and the commis-
and are proceeding. An FTA with
Connections, analyzes the importance
regional trade agreements such as
Consumption and production of sion's pursuit of bilateral free-trade
Japan not only has the potential to
and impact of chemicals trade. More
the Transatlantic Trade and Invest-
chemicals is growing most strongly
negotiations. But ultimately we need
enhance market access and regu-
charts displaying facts and figures from
ment Partnership (TTIP) or proposed
in emerging and developing econo-
improved rules governing access to
latory coherence between the EU
this publication can be found on page 20.
EU-Japan Free Trade Agreement.
mies and in global value chains. If
raw materials at a multilateral level.
and Japan, but it will also pave the
CEFIC: EU Chemical Output Stagnant in 2014, Trade Surplus Contracts from All-time High
European chemical production lowering producer costs, long-term
some €3.1 billion lower than in
Data from January 2015 show contracted by 1%, while output of
rose 0.2% in 2014, the chemical problems persist, especially the 2013. This is attributed in part to a
that "the worrying performance polymers and consumer chemicals
industry federation CEFIC said in
challenge of securing affordable sharp fall in net exports to impor-
continued," the CEFIC report says.
declined 0.6% and 0.2% against
its just-published Chemicals Trends
energy supplies," he said.
tant trading partner Russia.
Output contracted by 0.3% against
January 2014.
Report. By contrast, sales fell 1.1%
Net exports of chemicals from the
The EU's chemicals trade surplus
January 2014, and selling prices
CEFIC said chemical produc-
year-on-year against the 2013 fig-
EU, at €44.1 billion last year, were
with Asia — excluding Japan and
plunged by 6%.
ers' confidence also deteriorated in
ure of €527 billion, and prices sank
"significantly" below the record China — widened by €544 million.
EU chemicals output in Janu-
the first quarter of 2015 compared
€48.2 billion surplus achieved in But its net chemicals trade surplus
ary declined by 0.3% overall, with
to the last quarter of 2014. Mov-
"The lack of European growth in
2013, the organization said.
with China contracted from €1.3 bil-
worst-hit petrochemicals sliding ing into the second quarter, order
2014 was partly due to falling ex-
The net positive trade balance lion to €671 million. The US further
7.6 % against the same month of
books were thinner and the out-
ports," said CEFIC Director General
with non-EU countries — includ-
narrowed its chemicals trade deficit
2014. This was partially offset by
look for production in the coming
Hubert Mandery. "Even if the price
ing Russia, Turkey and Switzer-
with the EU by €889 million to €5.4
4.2% growth in specialty chemi-
months had worsened. Stock levels
bluebay2014 - Fotolia.com
of oil has fallen here in Europe, land — was €11.7 billion in 2014, billion.
cals. Basic inorganics production remained unchanged. (dw)
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Follow us on
Surfactants in a Globalizing World
The Requirement for More Sustainable and Effective Materials Ensures a Demand for Innovation and Technological Development
The 10th CeSIO World Surfactant Congress and Business Convention in
Istanbul, Turkey, 1 – 3 June, 2015 organized on behalf of the european Committee of Organic Surfactants and their Intermediates (CeSIO) will
showcase an extensive scientific program on the main theme „Surfactants in a Globalizing World - Creating new Possibilities". Sessions, posters and exhibition will cover the scientific, economic, technical, as well as safety and regulatory aspects of surfactants and surfactant applications in the industry and consumer products. In the run-up to the event, Michael Reubold asked John Hibbs, President elect of CeSIO, to provide a status report on the industry and a sneak preview on what will be discussed in Istanbul.
CHEManager International: Mr a requirement for more sustainable
Hibbs, this year's congress theme
and effective materials, ensuring a
is "Surfactants in a Globalizing demand for innovation and techno-
World — Creating New Possibili-
John Hibbs, CESIO
ties". Which new possibilities can
you imagine and what will it need
What are the main growth drivers
to take advantage of them?
in terms of geographies? Do you
factant use rising in oil producing
expect the BRICS and MIST coun-
J. Hibbs: Surfactants have and have tries (including Turkey, the host
For the "mature" markets, such
always had a very large range of country of the congress) to set the
as Europe, we should not overlook
applications, because of their ver-
pace or are there other markets the dynamic created by the demand
satility. Industry has, and continues
that are thriving?
for more sustainable and effective
to be able to innovate to meet the
products. This drives innovation,
requirements of growing demands,
J. Hibbs: A simple view of statistics which is not necessarily visible in
and increasing constraints, in terms
would suggest that, as mentioned,
volume/ value statistics. Mature does
of regulatory and user require-
population growth and GDP growth
ments. We see surfactants being are the key factors. This is certainly used to replace traditional solvents,
seen, as China, India, South America
What are the main growth drivers
giving lower risk and reduced envi-
and SE Asia head the volume growth
in terms of application areas?
ronmental impacts. Surfactants can
statistics. What is less apparent is
Dmytro Tolokonov - Fotolia.com
play a key role in the development
the growing sophistication of mar-
J. Hibbs: The key volume markets for
of technologies such as nanomateri-
kets, often linked to increasing con-
surfactants are household and per-
als, and the use of surfactants and
sumer affluence and awareness. sonal cleansing, so the state of these
J. Hibbs: We have seen a high level ing environmental burden associ-
J. Hibbs: As a global industry, we face
soluble polymers is a major enabler
This drives a growing consumption
key areas will always have a sub-
of activity in the development of ated with transport, controlling the
the challenge of meeting the grow-
in the efficient extraction of our oil
in more specialty surfactants, linked
stantial impact. The rise of extended
surfactants & polymers in oil ex-
manufacturing conditions (social ing demands of our customers, both
to more use of highly formulated oil recovery, including fracking, has
traction and production, which chapter) and contributing to wealth
in terms of scale, and complexity,
is why this topic is featured more
production in Europe. Hence, com-
within the constraints of finite mate-
How have the global and the Eu-
strongly in our 2015 conference. panies like Solvay are continuing to
rial resources, economic pressures,
ropean market for surfactants as
The source of the carbon backbone,
invest in Europe.
and growing regulatory burden.
a whole developed in recent years
The use of renewable resources
which normally forms the bulk of
While every person in Europe (for
and what are your growth expec-
the molecule, is also a topic of inter-
What role do natural or bio-based
example) uses surfactants on a daily
often plays a key part in sustainability,
tations for the years to come?
est and there is work on biomass
raw materials for "greener" sur-
basis with extremely few instances
but it's not the whole story.
conversion to provide new sources
factants play for consumers/cus-
of adverse effects, the regulatory
J. Hibbs: It is widely believed that the
of surfactant feedstock, with more
tomers and how can they create burden on the products continues
demand for surfactants grows in line
efficient use of natural resources. value for the surfactants industry?
to increase. The cost of doing busi-
with GDP, and this is generally what
laundry products, automatic dish-
driven a large increase in use of sur-
There is also a trend to more "skin
ness in Europe, compared to other
we see. In developing regions we washers and specialized cleansing
factants and soluble polymers.
friendly" surfactants in personal J. Hibbs: Surfactants industry has regions is currently being assessed
also see a link to population growth.
products, together with increased
care, replacing the standard pri-
always sourced its feedstock from in a cumulative cost study. This has
In the future, we expect this trend
use of personal care products. This
Surfactants are used in a wide mary surfactants with amino acid
both bio-based and petrochemical to be seen as an opportunity for EU
to continue, since surfactants are an
growing" middle class" can be seen
spectrum of applications – from based products. That creates de-
important contributor to the qual-
in regions like Turkey, Russia and detergents to crop protection, from
mands for more efficient synthesis,
ity of life. The European demand for
China. Oil production is also a ma-
the cosmetics to the oil & gas in-
and formulation aids to give good
surfactants is fairly static in terms
jor consumer of surfactants, both dustry. What are currently the hot
product rheology etc.
Oil production is a major consumer of
of volume - in line with the region's
for exploration, production and ex-
topics in surfactants R&D? What
surfactants, both for exploration, production
economic trends - however there is
tended recovery, so we can see sur-
could be the next innovation leap?
Sustainability has become a buzz
and extended recovery.
word in many industries. What
are the most important aspects of
sustainability in the surfactants
industry?
feedstock to address the demands
based businesses to highlight the
Clean Growth: Market for Surfactants
of downstream industry and devel-
barriers of doing business in Eu-
J. Hibbs: Many people make a subcon-
op surfactants with properties for rope. We have already seen a num-
scious link between "sustainability"
specific applications. There are no
ber of consuming industries move
to Exceed $40 Billion by 2022
and "natural". It's true that the use
fully "natural" products which have
outside of the EU (such as textiles),
of renewable resources often plays the properties required of the sur-
and the low cost of the surfactants
a key part in sustainability, but it's
factants we all use I our daily lives,
they use, often means that the ma-
Surfactants facilitate the removal of
ers and detergents. In 2014, around
est growth is recorded by non-ionic
not the whole story. Our industry is
so synthetic chemistry is essential to
terials must then also be produced
dirt and enable to finely mix water
56% of total demand accounted for
surfactants. With this type, fatty al-
exemplary in the use of renewable
give us safe and effective products.
and oil. These surface active chemi-
this segment. Also, surfactants are
cohol ethoxylates (FAEO) dominate.
resources, with roughly 50% of the
While surfactants consume signifi-
We have seen how our industry
cal substances are used in every used for example in cosmetics and
They can be obtained from palm mass of all surfactants consumed cantly less than 1% of oil production
has adapted and developed in the
household but also serve for numer-
textiles. They are also included in kernel oil or coconut oil and are con-
coming from renewable resources, - 90% is burned as fuel - a whole-
past to challenges of providing safe,
ous industrial applications.
pesticides, antistatic agents, lubri-
sidered to be more environmentally
which is substantially better than sale change to totally renewable efficient and cost effective materials
"In 2014, a worldwide turnover
cants, printing ink and many other
friendly alternatives to LAS.
other mass- consumption chemicals,
materials would stress global land
into a growing and demanding mar-
of $33.2 billion was achieved with
products. For the application area
like plastics and coatings. Despite use, and create competition with ket. These changes will continue,
surfactants" says Oliver Kutsch, paints and plastics, Ceresana fore-
Other Countries, Other Surfactants
leading the way, I'm proud to say that
food crops. It is essential for com-
and there are still opportunities to
manager of the market research casts the highest growth in demand:
CESIO is playing a leading role in an
ing generations that we DO increase
continue to develop products which
institute Ceresana. "We expect a 2.6% per year until 2022.
With a world market share of more
EU project to increase further the use
the use of renewable materials, but
give higher performance (allowing
further growth in sales of approx.
than 36%, the Asia-Pacific region has
of renewables in surfactants. Green
this needs to be achieved in a sus-
lower consumption) based on sus-
2.5% per year so that more than $40
Anionic vs. Non-ionic
the highest demand for surfactants.
Carbon is only a waypoint on the road
tainable way. Value creation can be
tainable materials and processes.
billion are reached in 2022."
The product types reveal significant
to true sustainability, as we have to
achieved through more efficient use
It's a simple fact that the surfactants
Depending on charge and polarity,
regional differences: Currently, Asia
consider the wider impact of produc-
of a wider range of biomass espe-
we use in our homes and our work
Growth in the Segment Paints and Plastics
a difference is made between ani-
reaches a market share of more than
tion, distribution and consumption of
cially that which is produced outside
improve our quality of life, from
onic, cationic, non-ionic and other
43% with alkyl benzene sulfonate. On
our raw materials and finished goods
the tropical regions.
basic hygiene to the production of
Ceresana already analyzed the surfactants. The current most sig-
the other hand, consumers in West-
From a "local" perspective, a key
low energy electronic devices. The
world market for surfactants for nificant type are anionic surfactants:
ern Europe and North America domi-
step in sustainability for the sur-
What are major challenges the challenge (and opportunity) of the
the second time. Surfactants are the so called linear alkyl benzene nate the market for alkylsulfates factant industry is to continue to surfactants industry is facing and
future is to continue to meet the
mainly used to improve the proper-
sulfonates (LAS) are mainly used for
(FAS), alkyl ether sulfates (FAES) and
provide the European downstream
how could these challenges be developing needs of our consumers,
ties of aqueous formulations. The detergents and have a global market
alcohol ethoxy sulfates (AES) with a
industries with products which are
overcome or even turned into op-
in a way that benefits every stake-
best-known applications are clean-
share of 53%. However, the strong-
share of around 62%.
produced in Europe, thereby reduc-
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
No Compromise on Performance
The Challenges on the Road to Non-Phosphate Dishwashing Tabs
The global world is connected
ing function of phosphate, leading to
via social media, search en-
lower performance and dirty dishes.
This experience should not be re-
gines and blogs. Mega trends
peated in Europe. High consumer
are shared in seconds. Online commu-
trust must be upheld, which includes
nities give 24-hour guidance on in-
the necessity to reformulate existing
products in order to maximize per-
gredients, performance, use and price
formance. How can this be achieved?
of detergents and cleaning products.
Companies can develop products
Cleaning performance, in addition to
without phosphate by using highly sophisticated ingredients, such as
convenience in use, is still the main
powerful yet sustainable, read-
prerequisite for purchasing a product
ily biodegradable chelating agents.
One alternative is MGDA (methyl-glycindiacetic acid), offered by BASF under the brand name Trilon M. Of course, the best ingredient is not enough. It additionally requires the top formulation expertise in the labs of the brand leaders and private-label producers.
Dear Retail: It Comes Down to Winning or
Besides price, consumers com-
ing category in automatic dishwash-
Phosphate performs this task the way they express their know-
Losing a Category — Performance is the Key
Heike Kohm, BASF
pare cleaning performance more ing detergents in Europe. However,
superbly, but has a poor reputa-
how in cleaning, filming and rinsing
often in this connected world. Now-
their well-known cleaning level and
tion in ecological terms. In 2017, a
benefits, as well as in drying proper-
Naturally, retailers also need to be
adays, consumers are informed the perceived benefits such as fat re-
regulation change will take effect ties on different surfaces or build-up
convinced to defend their strong
Multibenefit tabs in automatic dish-
about the benefits of their cleaning
moval, drying of plastic, and perfect
in the EU: The use of phosphates in
on cutlery and tableware. Neverthe-
category of automatic dishwashing
washing are an example of this. products by watching TV or YouTube
sparkling dishes and glasses could
dishwasher products, such as dish-
less, consumers are experienced in
detergents. Phosphate is not only a
They enable easy dosing and save
commercials and are evaluating the
be subject to change in 2017, with
washer tabs, will be limited.
judging the results of these most low-cost material but also extremely
time for the consumer without com-
claims on the packaging to make the upcoming ban of phosphate for
With the regulation changes on important criteria of automatic dish-
effective. The more sustainable al-
promising on cleaning performance.
their purchase and repurchase de-
this application.
the horizon, formulators of cleaning
washing detergents as published in
ternative needs to be as powerful
However, with the phosphate ban for
By now, most multi-benefit tabs
products in Europe are searching consumer test magazines. By study-
and high-performing but at the
automatic dishwashing detergents
Let's take the example of auto-
consist to about one half of phos-
unceasingly for alternative chelating
ing these magazines or social media,
same time readily biodegradable.
in Europe taking effect in 2017, the
matic dishwashing tabs. With their
phates. They act as chelating agents
agents to secure the established and
they might even link their results to
Why is this important?
performance levels in this category
multipurpose cleaning and caring to prevent unsightly scale on dishes
consumer-expected high cleaning specific ingredients.
Cleaning performance is and will
could change. The consumer in the
solution, as well as their easy hand-
by trapping the calcium and magne-
performance level — not only for the
remain the dominating buying fac-
connected world will take note of ling, they have advanced to the lead-
sium ions of water.
branded but also for the private-label
Phosphate Alternative — Let's Not Repeat
tor long before price. Consumers are
this immediately. It's thus time to
products sold in large numbers by
only willing to repeat their purchases
make the right choice now.
regional retailers. Nobody can afford
in this category if the product meets
to put products on the shelves that
Brand owners had to learn this les-
their established, high performance
Consumers Are Well-Informed
do not satisfy consumer expectations.
son the hard way, when the phos-
expectations. Consumers are not will-
Around the Clock
Naturally, consumers do not phate ban was introduced in parts of
ing to accept any trade-offs on clean
speak the language of formulators
the U.S. market in 2010. Alternatives
and shiny dishes and are certainly
Globally, 80% of the population has
— the producers of these tabs — in
did not reproduce the strong chelat-
not prepared to unload dirty teacups
a mobile phone. Smartphone pene-
or dishes with bits of lasagna from
tration runs at an annual growth
last night's dinner. Nor are they will-
rate of 30% – 50%. We are heading
ing to drink from turbid wine glasses.
toward an almost universal mobile
How annoying is it to rewash your
connectivity. Near-field communica-
dishes by hand at the last minute
tion will let our machines commu-
while waiting for your guests?
nicate with each other and directly
In the connected world, innova-
with the supplier of refills when the
tive choices for high-performing and
auto dispenser is running low. Who
more sustainable ingredients for de-
would have expected to ever live in
tergents and cleaning products are
such a smart world?
available. It's time to choose.
In 2014, already one-third of
shoppers in the UK compared pro-
Heike Kohm, director marketing
ducts via their smartphone while
home care and industrial & insti-
shopping. What does that mean for
tutional cleaning, BASF, Ludwigs-
retailers, for the formulators of con-
sumer products and for suppliers of ingredients?
Figure 1: Ingredients of a multipurpose dishwashing tab
Figure 2: Evaluation of the cleaning performance in the BASF lab
2 www.homecare-and-i-and-i.basf.com
Arvinas Collaborates with Merck &
Oxea Extends European Distribution
Chemical Industry Security Lag Said
Co. on Novel Therapeutics
Pact With IMCD
to Put US at Risk
Private US biotechnology company
Merck-related research. In addition,
German-based chemical group success in expanding its customer
The slow implementation of the the Chemical Facility Anti-Terrorism
Arvinas has announced a multi-year
Arvinas could earn up to $434 mil-
Oxea has expanded its European base over the past two years, said
Chemical Facility Anti-Terrorism Standards (CFATS), the study's au-
collaboration with Merck & Co. to
lion if all targets, initially selected
distribution agreement fir amines the company's European Marketing
Standards (CFATS) in the US as part
thors say very few chemical facili-
create novel therapeutics using its
by Merck & Co., are met, as well as
with Dutch distributor IMCD. At Manager Michael Harbich. ICMD of homeland security and anti-ter-
ties have actually implemented the
PROTAC (proteolysis-targeting chi-
tiered royalties.
the beginning of April, IMCD began
market manager Stephen Rosenthal
rorism measures is leaving chemical
security measures.
meras) technology.
The partnership will encompass
distributing Oxea's TCD diamine, a
said the extended distribution pact
plants vulnerable and putting the
The researchers urge the indus-
PROTACs are bifunctional small
multiple disease targets across sev-
high performance epoxy hardener
with Oxea will strengthen his com-
population at risk, a study published
try and DHS to work more closely
molecules that target proteins for eral therapeutic areas. Merck & Co.
for specialty adhesives and surface
pany's portfolio and enable it to in the International Journal of Criti-
together "before it is too late to en-
degradation and removal from a may also, at its discretion, decide to
cover the special formulation needs
cal Infrastructures suggests.
sure the safety and security of the
cell. This is in contrast to more tra-
expand the collaboration to include
The decision to continue the part-
of customers in the European coat-
Although the Department of US population." With almost 1 mil-
ditional drug development that is additional diseases.
nership with IMCD reflects Oxea's ings and adhesives sectors. (dw) ▪
Homeland Security (DHS), estab-
lion direct employees, the US chemi-
based on inhibiting proteins.
Arvinas said only 25% of the
lished after the terrorist incidents cal sector sustains an additional 5.5
Financial details of the collabo-
body's 20,000 proteins can be
of Sept. 11, 2001, was charged with
million jobs in other sectors. It is
ration were not revealed, however
drugged by traditional methods,
regulating the safety and security also represents 2 % of GDP — based
Arvinas will receive an up-front leaving the remainder as potential
Residues of Glyphosate Found in
of chemical facilities and in 2007 on 2009 figures — and is the na-
payment and funding to support targets for PROTACs. (eb)
added an interim final rule, called
tion's biggest exporter. (dw)
Food and Body Fluids
Private labs in the US are said to
laboratory detected the chemical in
BASF Trials MDI Precursor
have found significant residues of three of 18 breast milk samples and
Shintech Going Ahead With
the glyphosate weed-killer, mar-
in six of 40 infant formula samples.
Production at Chongqing
keted by Monsanto as Roundup, in
Although testing has increased
$1.4 billion US Gas Cracker
samples of honey, soy sauce, infant
over the past two years, US lab oper-
BASF has begun trial operations at
for the entire project are pegged at
formula and even breast milk and
ators are quoted as saying requests
Shintech, US subsidiary of Japa-
billion facility,is expected to begin
its 400,000 t/y mononitrobenzene €860 million. The site will also pro-
have skyrocketed since the end of
nese PVC producer Shin-Etsu, said
shortly. Construction is being han-
plant at Chongqing, in western duce 300,000 t/y of aniline, 400,000
Tests by the Abraxis lab found March, when the French-based WHO
it plans to start up a 500,000 t/y eth-
dled by Toyo Engineering Corpora-
China. The new facility will feed the
t/y of crude MDI and will also have
glyphosate residues in 41 of 69 research unit IARC announced plans
ylene gas-fed cracker at Plaquem-
tion, and Lummus Technology US
group's integrated MDI complex at
an MDI splitter with a capacity of
honey samples and in 10 of 28 soy
to classify glyphosate as "probably
ine, Louisiana in the second quarter
will provide the ethylene process
the same location. Investment costs
400,000 t/y. (dw)
sauces, while tests by the Microbe
carcinogenic to humans." (dw)
of 2018. Construction on the $1.4 technologies. (dw)
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
Reinventing Sustainable Value Creation
Why the Chemical Industry Must Decouple Economic Growth from Ecological Footprint
In the last several years, we have Our sustainability strategy summa-
value chain from raw materials to
witnessed global trends that are
rizes the objective of every business
disposal on the one axis and all six
to achieve more value with fewer re-
focal areas of sustainability from
changing the way global chemi-
sources and therefore demonstrates
performance to waste on the other
cal companies operate. These trends that sustainability is a critical factor
axis. That makes it very convenient
include a consolidation of suppliers, to be competitive.
to check which field makes the big-gest difference when improved.
manufacturers and buyers; the shift
Driving Sustainability along the Value Chain
The Henkel Sustainability#Master
of growth to emerging markets and
serves as a communication tool.
highe r market volatility with faster Creating more value can be achieved
The Marketing and Sales teams fill
through our partners, our products
it with specific product information
transfer of information. But these and our people. Only by joining forc-
and adapt it to suit each specific re-
trends are not the only developments
es can leading chemical companies
gional market. It is also widely used
having an impact on our business.
drive sustainability along the value
as a presentation tool in dialogue
chain. That's why we have been de-
with retail partners, non-govern-
veloping innovative solutions and
mental organizations, research in-
setting new standards together with
stitutions and other stakeholders.
our partners to manage complexity and risk in our global value chains.
For example, in 2011, we and five
other companies in the chemical
Finally, every company in the in-
industry established the "Together
dustry must engage its employees
for Sustainability" initiative (TfS) to
around the same sustainable goals
Prof. Thomas Müller-Kirschbaum, Henkel
harmonize the increasingly complex
to create value globally. Our shared
Michael Flippo - Fotolia.com
supply chain management processes
vision and our corporate values are
and to optimize the dialogue among
what unites us worldwide to create
The acceleration in global economic
business partners worldwide. At the
for the value chain. We are com-
laundry and home-care solutions of
ity strategy, i. e. performance, social
more value and build our success.
activity and continued population heart of the initiative is the idea that
mitted to zero net deforestation by
the future in the "Henkel Innovation
progress, safety and health, energy
If we want to achieve our goal for
growth are putting immense pres-
"an audit for one is an audit for all."
2020. Therefore, the palm and palm
Campus for Advanced Sustainable and climate, water and wastewater
2030, we need everyone to contrib-
sure on our planet's resources. In With TfS, suppliers only need to pass
kernel oil that we use should not Technologies" (HICAST).
as well as materials and waste.
ute. That's why we strive to give our
this context, we, as an industry, one assessment or audit performed
contribute to deforestation of prima-
The cooperation has three objec-
These focal areas summarize employees a clear understanding of
must address the relationship bet-
by independent experts. 1,100 au-
ry or secondary forests with signifi-
tives: to find new sustainable feed-
the main challenges of sustainable
sustainability and enable them to
ween economic growth and re-
dits and assessments were carried
cant ecological value. We are work-
stocks that can be used as raw ma-
development as they relate to our
convey the importance of sustain-
source consumption. Can we grow
out under the TfS initiative at our
ing with our partners to establish terials in our products, create high-
operations. The idea is to start with
ability to others. Our Sustainability
despite the sustainability challenges
suppliers last year and 90% of the
full traceability of palm and palm performing ingredients and exploit
a qualitative assessment of the sus-
Ambassador program was launched
that we face? The answer is ‘yes' suppliers who underwent a repeat
kernel oils used in ingredients for
unknown synergies between new tainability contribution at the very
in 2012 to engage employees more
but we need to become more effi-
audit had improved their sustain-
our products, such as surfactants, and existing washing agents. The beginning of every research project
deeply on the topic of sustainability.
cient, i.e. create more value with a
ability performance. In 2014, the by 2020.
unique advantage lies in the seam-
and turn it into a quantitative evalu-
Since then, Henkel has trained more
smaller footprint. We cannot afford
initiative turned its focus toward
We are providing targeted sup-
less cross-disciplinary cooperation ation, which ends with a life cycle
than 3,800 Sustainability Ambassa-
to pursue economic growth alone.
emerging markets, particularly port to plantations and smallholders
of four professors and their research
analysis (LCA) for the final product.
dors — including all Management
The chemical industry, in particular,
those in Asia. The intention is to ac-
in palm-growing countries to pro-
teams specialized in process tech-
This year, we reinvented the ap-
Board members — in 70 countries.
has already done a lot to decouple
tively involve suppliers in sustain-
mote sustainable farming practices,
nology, biotechnology, as well as proach by integrating the planned
Since the start of the program, the
growth from footprint but there still
ability assessment processes and improve livelihoods and ensure that
physical and polymer chemistry.
sustainability contribution into the
Sustainability Ambassadors have
is some way to go. We can and must
sufficient volumes of sustainable oil
We expect game-changing in-
briefing phase of the new product
educated about 36,000 children in
are available on the market. After
novations, which will significantly development.
Incentivizing Suppliers to
developing our first smallholder contribute to better performance,
In summary, the industry has a
Vision 2050
Develop Sustainable Solutions
project with NGO partners in Latin
resource use efficiency and preser-
very important role to play in de-
America, we have recently signed a
vation of the climate, from the co-
coupling growth from footprint if
Creating value in this new reality re-
We need to incentivize our suppli-
second project in South East Asia.
Innovation will reinvent the indus-
we want the world population to
quires a clear vision and transpar-
ers to develop new innovative and
try's contribution to a more sustain-
live well by 2050. We have to face
ent goals. At Henkel, we are working
sustainable solutions. At Henkel,
Industry – Academia Collaboration
Revolutionizing Product Development
able world. It starts with the identi-
our responsibilities and reinvent
with Vision 2050 developed by the
we work with strategic suppliers on
fication of sustainability "hot spots"
sustainable value creation wherever
World Business Council for Sustain-
process optimization, resource ef-
Creating superior value also means
Based on internal innovation and for each product or category. These
possible. And for us, sustainability
able Development (WBCSD). The vi-
ficiency, environmental and social that the businesses and the academ-
our partners´ support, our pro-
are areas where a particular pro-
is not only a responsibility but also
sion states: "In 2050, 9 billion peo-
standards, as well as innovation. In
ic community must come together to
ducts must deliver more value at a
duct can have a very significant posi-
a great opportunity to continuous-
ple live well and within the resource
addition, we have been recognizing
tive impact — when designed in the
ly improve and to strengthen our
limits of the planet."
strategic supply chain partners that
right way. Unfortunately, there are
competitiveness. Sustainability has
This vision is the basis for our make the biggest contribution to
not many tools available to monitor
already become a key differentiator
strategy of "achieving more with sustainability for each of our three
a company´s product portfolio, espe-
for business success.
Sustainability is a critical
less." We need to create more value
business units since 2011. BASF,
cially for small and medium-sized
— for our customers and consum-
Croda, Evonik, Monosol, Novozymes
factor to be competitive.
Prof. Thomas Müller-Kirschbaum,
ers, for the communities we operate
and Solvay are among the strate-
That's what motivated us to cre-
corporate senior vice president of
in, and for our company — while re-
gic partners that have received an
ate the "Sustainability#Master" to Research & Development, Laun-
ducing our environmental footprint.
award for their outstanding contri-
systematically measure and con-
dry & Home Care, co-chair of the
By 2030, we want to triple the bution.
work on innovative sustainable solu-
reduced ecological footprint. That's
tinuously improve a product's sus-
Sustainability Council, Henkel,
value we create through our busi-
Partnership should not be limited
tions. This partnership is extremely
why we systematically integrated tainability performance. It consoli-
ness operations in relation to the to cooperation between a company
important for Henkel and that's our sustainability strategy into the
dates information from life cycle
environmental footprint of our and its own suppliers. We, as an in-
why we started a cooperation with
innovation process in 2008. Each analyses, stakeholder feedback and
products and services. We summa-
dustry, should make all efforts to the Technical University (RWTH) in
new product has to demonstrate a
external product requirements. At
rize this ambition to become three
safeguard existing, and create new
Aachen, Germany. There, we are specific advantage with regard to the heart of the system is a matrix
times more efficient as "Factor 3."
sustainable renewable feedstocks researching and developing the the focal areas of our sustainabil-
with 36 fields mapping the entire
Emerald Kalama Enters Distribution
Omni-Chem136 Adds Harke Group
ExxonMobil President Says
Agreement with BCD and Caldic
as New European Member
Bureaucracy Strangling LNG Exports
Emerald Kalama Chemical, a busi-
able and REACh-registered. In addi-
Omni-Chem136, the world's larg-
throughout Europe, Harke Group The US is at risk of losing economic
"LNG exports can provide the
ness of Emerald Performance Ma-
tion, they enhance key performance
est alliance of regional independ-
opens industrial sourcing and sales
opportunity and the ability to so-
spur to further increase America's
terials, has made key new distribu-
features, such as film formation, ent chemical distributors with 18
markets for its customers and sup-
lidify its role as a global leader in
natural gas production, providing
tion appointments for the K-Flex adhesion, processing characteristics
member companies in North Amer-
pliers in Europe and around the energy production if policymakers
all the attendant benefits that would
platform of fast fusing plasticizers
and resistance of the end-product to
ica, South America and Europe, world. The product portfolio of the
do not quickly move to approve liq-
generate," the executive said.
and low-VOC coalescents. BCD Che-
oil, grease and water.
more than 145 facilities and $3.0 B
group includes industrial, specialty
uefied natural gas (LNG) exports,
ExxonMobil is currently engaged
mie will service the DACH region
"Emerald continues to build its
of combined sales has announced
and high purity chemicals, plas-
Rob Franklin, president of Exx-
in a $10 billion project to convert
(Germany, Austria and Switzer-
infrastructure in the EMEA region
that Harke Group of Germany has
tic additives, plastic raw materials
onMobil Gas & Power Marketing the LNG regasification terminal at
land), while Caldic Spécialités will
in response to demand for more joined the alliance effective Feb-
and plastic products, high qual-
Company, said in a speech at the
Golden Pass, Texas, into an LNG ex-
manage K-FLEX distribution in environmentally friendly materials
ruary 1, 2015. Harke Group, head-
ity pharmaceutical excipients, food
Johns Hopkins School of Advanced
port terminal. An application to ex-
that deliver the performance that quartered at Mülheim an der Ruhr,
additives and ingredients, dietary International Studies in Washing-
port to non-Free Trade Agreement
K-Flex products are utilized as manufacturers need," said Hans Germany, is a wholly owned private
supplements and ingredients for ton DC.
countries was submitted to federal
effective plasticizers in adhesives, Dick Terhenne, K-Flex business di-
the personal care and clean care
With bureaucracy stalling legisla-
officials more than two years ago,
PVC plastisols and compounds, rector for EMEA.
"The addition of Harke Group to
industries. In addition, Harke Group
tion and issuance of export permits,
but no decision has been made.
caulks, sealants and other latex
Emerald Performance Materi-
our alliance is another significant offers related services such as con-
the US role as world's leading en-
As global LNG demand is ex-
polymer applications, as well as als had been an affiliated portfolio
step forward in our strategy to build
tract packing, mixing and blending,
ergy producer is at stake, Franklin
pected to triple between 2010 and
coalescents in paints, coatings, inks
company of Sun Capital Partners a global chemical distribution alli-
legal consulting and representative
added. In his view, exports of LNG
2040, the amount of incremental gas
and graphic arts. The products are
since 2006 and, in August of 2014
ance", says Fred A. Buehler, Manag-
services concerning EU chemical "should be treated no differently needed to meet global demand by
known as environmentally friendly
changed hands to become an affili-
ing Director Omni-Chem136.
(REACH), pharmaceutical and food
from other exports such as agricul-
2025 will be almost double the size
specialty plasticizers and coales-
ate of private equity firm American
As an international distributor legislation. (mr)
tural goods, automobiles and com-
of the entire US gas market today.
cents: low-VOC, readily biodegrad-
Securities. (mr)
with subsidiaries and sales offices
puter products.
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
Roles Under REACh
REACh Demands that Competitors Work Closely Together — Certain Tasks Still Challenge Industry
Almost eight years have entrants to participate in a joint
transported isolated intermediate.
passed since ReaCh went submission causes extra costs, if
This was less expensive for the sin-
this was not considered before the
gle company but not for the benefit
into effect, but some prob-
signature procedure in consortia
of ECHA as it originally demanded
lems remain in regard to joint submis-
agreements. Now there may be a
"one substance, one registration"
sions. The cooperation of members need to involve lawyers again to
and now has to examine several
create or check the letter of access
dossiers for the same substance.
within consortia is arranged by con-
contracts and also do necessary
tracts that in most cases were signed
adaptations in already existing
Special Arrangements for Small and
after the preregistration period in the
consortia agreements to cover the
Medium Enterprises (SMEs)
needs of late entrants appropriately.
end of 2008 and previous to the first
Cost-sharing needs to be discussed
Small and medium enterprises can
registration deadline in 2010.
again and agreed on in consortia by
pay lower fees to ECHA if they have
respecting the rule that cost-sharing
proof of not being a large company.
has to be done in a fair, transparent
ECHA also had the idea that small
and nondiscriminatory way. Calcu-
and medium enterprises shall bene-
lations in regard to splitting of the
fit from lower costs within consortia.
costs and eventual refunding to all
If a consortium is willing to consider
former members is extremely time-
the company size of its members,
consuming and causes an increase
that will lead to additional work to
of consortium-management costs.
calculate costs for each member of
To save costs, consortia often
the consortium. Furthermore, there
Dr. Susanne Kamptmann, Steinen
agree on doing the refunding pro-
remains the question whose obliga-
cedure only twice instead of a yearly
tion it is to double-check whether
As time was running toward the recalculation. It seemed sensible to
a company may benefit from SME
first deadline, the contracts signed
do that for the first time after the
status and what needs to be done
before this deadline did not cover
2013 deadline, and it was common
when there is a change in a com-
all important aspects in regard to
sense to do the second refund after
pany's status. As the competition
data sharing and late(r) entrants, the 2018 deadline. In general each
law always needs to be respected,
therefore consortia also have to member of the joint submission will
psdesign1 - F
it seems necessary to have an inde-
find solutions to cover the needs of
be pleased to have a refund, but
pendently acting trustee (e. g., a con-
future registrants. Cost-sharing is it is useful to reconsider whether under which no refunds will be is no contractual basis for that at costs for further studies and tests,
sultant or a lawyer) who does the
an important topic, as it needs to be
a refund shall be done only when
this stage of the registration process.
and also for the tasks that need to
calculation and invoicing for each
done in a fair, transparent and non-
there is a considerable sum to be
Therefore the willingness of prereg-
be done by the lead company for the
single member of a consortium.
discriminatory way, but the REACh
refunded. If only a few hundred eu-
The Unpopular Role of the
istrants to become SIEF formation
benefit of the registrant-to-be.
A small company with few sub-
(Registration, Evaluation, Authoriza-
ros need to be refunded, the time
SIEF Formation Facilitator
facilitators has decreased over the
The second option is to transfer
stances to register even when a
tion and Restriction of Chemicals) needed for transferring the money
last eight years.
the role of the lead company to the
higher volume band is required may
regulation itself does not define how
from a consortium account to the The European Chemicals Agency
In particular, for substances that
registrant-to-be with the highest have less total cost than a larger
this may be achieved in practice.
members of the consortium and (ECHA) demands Substance Infor-
are manufactured in smaller volumes
data requirements. In this case, the
company that has to cover the regis-
also the double-checking of calcu-
mation Exchange Forum (SIEF) sur-
by the group of the preregistrants former lead company may be inter-
tration of hundreds of small-volume
Covering the Needs of Late Entrants
lations and the bookkeeping within
veys done by a SIEF formation facili-
and that did not have a registra-
ested in having a compensation for
substances on its own. Therefore
the member companies will exceed
tator, but usually the efforts of the
tion deadline in 2010, the originally
the work it had already done. The
some may question whether it is
Creating contractual documents the profit. Therefore many consortia
company having this workload will
foreseen procedure was amended situation will become really difficult
fair to make a distinction between
for a letter of access to enable late
have agreed on a minimum amount
not be compensated, because there
by industry. If a company could ful-
if there are already further regis-
small and large companies in regard
fill all data requirements on its own,
trants whose rights also have to be
to consortium costs.
it started by registering on its own
An easier approach to share costs
and then offered a letter of access to
To avoid all the discussions in re-
is to do it based on the type of regis-
the other pre-SIEF members. Neither
gard to financial issues and further
tration and connected data require-
the REACh regulation nor ECHA in-
contracts in these two options, a ments. As for the registration of a
tended this, but it often kept costs low
third option can be considered. The
transported isolated intermediate
for all involved parties.
registrant-to-be with higher data above 1,000 tons per year, a reg-requirements may prepare an own
istrant has to fulfill the same data
How to Cope with Registrants-to-Be that
registration dossier and either opt
requirements as a registrant for a
Have Higher Data Requirements than the
out, or — if agreed on in the pre-
standard registration in the smallest
Former Lead Company
SIEF — the pre-SIEF could be split
tonnage band of up to 10 tons per
into two groups: a registration group
year. (Remark: In both cases, data
IN 3 CLICKS!
Difficulties may arise when a lead
for a transported isolated interme-
requirements in accordance with
company registers with fewer data
diate only and another group for Annex VII of the REACh regulation
requirements (e. g., registration for
those that require a standard reg-
have to be fulfilled.) It seems to be
a transported isolated intermediate
istration. The registrant-to-be then
fair, transparent and nondiscrimina-
• Follow this link:
only), but later a further registrant-
can become the lead company for
tory that costs for these two types of
to-be needs to register with higher
the standard registration group.
registration shall be the same.
data requirements (e. g., standard registration in a lower tonnage
Opt Out because Participation in a Joint
Dr. Susanne Kamptmann,
• Register with few personal details
band). In such a case there are three
Submission is too Expensive
ways to solve the problem, but each of them will require at least some
Management of consortia is time-
2 [email protected]
• Confi rm Double-Opt-in email
discussions and a sort of agreement
consuming and often has high costs
within the group of the registrants
— sometimes it is even more ex-
. and with a little luck
pensive than the studies and tests
win a trip to Wiley‘s hometown
The first possibility to solve the
needed to prepare the registration
New York!
issue is that the lead company up-
dossier for a certain substance.
This is the final of a series of four articles
dates the registration dossier to That already has led to an increas-
from Dr. Kamptmann on the REACh legis-
cover the needs of the registrant-to-
ing number of opt-outs in particu-
lation. Parts 1, 2 and 3 were published in
be. One of the most important tasks
lar by companies that registered
issue 11-12/2014, 1-2/2015 and 3-4/2015
will be to define who will bear the
in a smaller tonnage band or for a
of CHEManager International.
EU Authorizes 17 GMOs for Food and Feed
Hot on the heels of its proposal to
The GMOs approved today had re-
The GM food and feed authoriza-
permit member states to reject the
ceived "no opinion" votes from mem-
tions will be added to the existing
import of genetically modified crops
ber states in both the Standing and
list of 58 GMOs authorized in the
Joshua Haviv - Fotolia.com
for food and feed, the European Appeal Committees, as no qualified
EU for food and feed uses (cover-
Commission has authorized 10 new
majority had been reached either in
ing maize, cotton, soybean, oilseed
GMOs for this purpose, renewed favor or against the import. Authori-
rape, sugar beet) and are valid for
seven existing authorizations and zations had not been granted during
allowed the importation of two GMO
the past months while a review of the
Any products made from these
Register for our newsletter today
and support our data protection drive!
cut flowers.
decision-making procedure on GMO
GMOs will be subject to the EU's
In a statement, the Commission
— announced on Apr. 2 — was in pro-
labelling and traceability rules. All
All participants will be entered in a Prize Draw
pointed out that the products all had
gress, the EU regulatory agency said.
but one of the food and feed prod-
for a 5-Day Trip to New York worth EUR 2,500.-
gone through a full authorization
Until the new proposal is adopted
ucts is manufactured by GMO giant
Getting to New York has never been so easy!
procedure, including a favorable by Parliament and Council, the au-
Monsanto. One, a cotton product, is
* All Newsletter readers above the age of 18 may participate with the exception of Wiley employees and their dependants. The judges‘ decision is fi nal.
scientific assessment by the Euro-
thorization process will continue to
made by Bayer.
Closing date is 31st October 2015. The voucher cannot be exchanged for cash. Your data will not be disclosed to third parties. Cancellation of the News-letter is possible at any time.
pean Food Safety Authority (EFSA).
be based on the current applicable
The cut flowers, carnations, are
The permits do not extend to crop
legislative framework, the Commis-
manufactured by an Australian
sion pointed out.
company, Florigene. (dw)
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
Frankfurt am Main · 15 – 19 June 2015
Please visit us: Hall 6.1/5.1 Booth B8
Meeting Point of Industrial Biotechnology
Production www.facebook.com/
Industrial Water Management
By Reducing Its Thirst for Water the Process Industry can Conserve Resources and Cut Cost
How well does industry man-
age water resources? The general tendency today is to
take a holistic systems approach. More process water is being recirculated and industrial producers are recovering re-usable substances and water treatment chemicals. Companies are also taking a new approach to effluent manage-ment. Partial flows are being diverted at an early stage, making treatment easier and less expensive. Technology is even available which can virtually eliminate effluent.
Plants, animals and humans depend
treatment is relatively inexpensive.
However treatment of the residual
water management research project
match reverse osmosis technology,
The French startup Magpie Poly-
on water for survival, but water is
Experts say that water recycling concentrates is problematic. Choos-
in the chemical industry, a number
reports Sulzer.
mers has developed a highly effi-
also an essential technical resource
is less efficient for waste streams ing a site with an abundant supply
of plants in Belgium, France, Hol-
Sea water is not the only option.
cient filtration method for captur-
for industry — whether as cooling that are highly contaminated and/
of water and implementation of an
land and Spain are working in uni-
Desalinated ground water is another
ing re-usable precious metals even
agent, transport medium, solvent or
or contain substances that have a
industrial water management pro-
son to significantly reduce fresh wa-
potential source, for example in the
if they are only present in minute
process water in a range of qualities
very diverse range of chemical and
gram are generally preferable to the
ter consumption. At Solvic and Dow
dry American South, claims GTAI amounts. Various filters made of
from industrial water to softened or
physical properties. The basic pre-
burdens associated with zero liquid
Benelux, water flows from different
(Germany Trade & Invest). Texas, polymer beads are installed, and
demineralized water to highly puri-
requisite for water recycling is the
discharge production which is very
plants are joined together. Treated
Florida and California are leading
the metals form selective bonds with
fied water for the pharmaceutical establishment of an efficient water
energy intensive. As a result, experts
effluent from one plant is used as
users of the technology. Seawater the beads. The technique is already
management system to separate are pinning their hopes on tighter
feed water for another plant. The desalination is becoming an increas-
being deployed at several European
Industrial water consumption is
water that readily lends itself to re-
integration of water and energy goal is to reduce fresh water con-
ingly significant factor, particularly
not free. Inlet water normally needs
cycling from water that is less suit-
sumption by up to 50%.
in California where megaprojects
The chemical group Lanxess also
to be conditioned, and treatment able. Most of these internal recycling
Bayer Technology Services has
are in the planning pipeline. De-
provides technology for recovering
costs money. Circulation pumps con-
processes are located at or near the
developed a process for handling
Membrane Process:
mand for high-efficiency pumps and
re-usable materials. Ion exchangers
sume energy. Post-treatment is also
source where the complexity of the
effluent which contains organic
Learning from Mother Nature
rugged membranes continues to in-
function as selective adsorbers for
normally required so that the water
constituents is limited and additive
matter as well as inorganic salts at
crease. Financing for many projects
fine purification of wastewater flows
can be re-circulated or discharged
techniques can be deployed with an Indian pharmaceutical plant. The
The use of membranes in water is now provided by public-private and process electrolytes. Heavy met-
into receiving watercourses. For minimum effort and expense.
new stand-alone treatment process
treatment technology has been on
als and other substances such as
cost and environmental reasons, it
The integrated energy supplier has three stages: the organic mat-
the increase for many years. There
Jim Taft, Executive Director of the
boric acid, chromate, arsenate, fluo-
is advantageous to reduce water Suncor Energy recycles more than
ter is removed by biological purifi-
are good reasons why that is the Association of State Drinking Water
ride and ammonia in salt solutions
movement, water heating and wa-
90% of the water contained in steam
cation and the salt concentration is
Administrators (ASDWA), says that
can be selectively captured.
ter contamination, and this is where
which the company uses to extract
increased through reverse osmosis
▪ Membranes run continuously and
mobile desalination systems have
Little use has been made so far
industrial water management has a
oil from oil sand. Instead of storing
to minimize energy consumption in
are fully automatic.
very significant potential. Demand
of wastewater as a heat source.
role to play.
injection steam in underground dis-
the subsequent evaporation stage.
▪ Membrane materials are now is likely to increase because these In the past, utilization of this en-
Technological complexity is lower
posal wells, recycled saline water is
Veolia Italy has developed a
cheaper and more effective.
systems in the South could help the
ergy was seldom possible, one of
in regions where there is an abun-
treated, the salts and solids are fil-
zero liquid discharge system for a
▪ The membranes operate at lower
water industry to manage more fre-
the constraining factors being the
dance of water compared to parts
tered out and the water is reused to
global manufacturer of dispersions
pressure and that reduces energy
quent periods of drought or tempo-
65 °C flow temperature limit for
of the world where water is scarce.
produce steam again.
and adhesives that can treat 15 t/d
rary supply shortages.
heat pumps. Ochsner now markets
The costs of closed-loop recircula-
What Wabag is currently doing is
of wastewater. In the first stage, a
Some membrane system suppli-
high-temperature heat pumps with
tion or even water-free production
another example. At the beginning
heat pump vacuum evaporator with
More than 2/3 of new desalination
ers have now started to standard-
flow temperatures up to 100 °C,
are more acceptable there than in
of 2014, the company was awarded
forced circulation pre-concentrates
capacity being installed worldwide
ize their systems. Higher production
opening the door to totally new in-
countries like Germany. Whatever a contract to build a wastewater the rinsing water. A vacuum evapo-
is now based on reverse osmosis. In
volumes drive down the manufac-
dustrial and commercial heat pump
the water supply situation, produc-
treatment plant at the new indus-
rator with heat pump and scraper
contrast to traditional evaporation-
turing costs for these plug-and-play
tion and water technology are al-
trial park in the city of Al Kharj in
system in the boiling chamber then
based technologies, no heat energy
solutions which are used to purify
ways closely interrelated, creating
Saudi Arabia. Effluent from various
produces a final concentrate which
is needed for this technology and
service water and drinking water
Smart Use of Water
the need for integrative technologies
production facilities at the site will
is mixed with fresh dispersion to ob-
thus the cost of desalinated water
and also for treatment of industrial
and water management systems.
be treated to the maximum extent
tain a constant density. The distillate
is reduced. Even in regions where
wastewater. It takes minimal effort
Resource conservation and economic
possible for re-use as process wa-
is treated for use in washing, reduc-
energy costs are relatively low such
to connect the pre-assembled sys-
considerations make it imperative
Water Recycling and Elimination
ter. The plant will have a capacity
ing the wastewater volume to zero.
as the Middle East, reverse osmo-
to make intelligent use of industrial
of Production Effluent
of 10,000m3/d.
What used to be a waste pro duct sis is increasingly the solution of
process water and to consume as
that was sent for disposal is now choice. Given the right plant de-
Recovery of Energy and Re-usable Materials
little as possible. Water should not
„Off-the-shelf" industrial water
Zero Liquid Discharge —
re-used in the production process.
sign and the right equipment (60%
be transported, heated or contami-
management does not exist. That is
the Model for the Future?
As part of the EU E4Water Pro-
of total energy consumption is used
When there is direct contact, it is nated more than is absolutely neces-
the conclusion reached in a Process-
ject, currently the world's largest to power the pumps), nothing can
impossible to prevent production sary to meet process needs. Water
Net position paper on the trends and
Instead of purifying water to the
materials from contaminating the re-circulation and re-use are two
outlook in industrial water techno-
extent possible prior to discharge,
process water. As a result, the pro-
crucial aspects of "smart water".
logy, which was published in March
would it make more sense to elimi-
cess water contains varying concen-
The article is based on a trend report commissioned by Dechema and written by internatio-
2014. Tailored strategies are needed
nate water discharge altogether?
trations of contaminants (ranging Dechema Gesellschaft für
nal trade journalists. Industrial water management will be one of three focal topics at Achema
for the specific industry, application
Elimination of effluent from pro-
from a few ppb to several %). If a
Chemische Technik und Biotech-
2015 on 15 – 19 June 2015 in Frankfurt, Germany. The world forum and leading trade show
and site. Water recycling based on
duction (zero liquid discharge) is
substance can be re-used, recovery
nologie e.V., Frankfurt am Main,
for the process industry brings together experts from a wide range of disciplines, institutions
recirculation of process water is currently the subject of a highly
can make economic sense in addi-
and generations to stimulate scientific exchange in chemical engineering, process enginee-
normally only a viable option if con-
controversial debate. 400 plants are
tion to helping protect the environ-
ring and biotechnology. Dechema is globally known as the organizer of Achema.
tamination levels are low and water
already operating around the world.
A. Schulman to Build Masterbatch
Solvay Building Korean
IDT Opens Molecular Biology R&D
Plant in Turkey
Plant for Tire-grade Silica
Facility in Redwood City
US plastic compounds and resins breathable masterbatches for food
Solvay has broken ground at Gun-
allow for higher productivity and Integrated DNA Technologies (IDT)
manufacturing capability. The new
company A. Schulman is planning and industrial packaging customers
san, South Korea, for a Highly Dis-
greater flexibility in producing en-
is capitalizing on its expertise to R&D center of excellence keeps IDT
to build a new masterbatch plant in
in Turkey as well as countries in the
persible Silica (HDS) plant that it ergy saving passenger car and truck
deliver a broader range of vali-
on the cutting edge of innovation
Turkey, leasing existing industrial Middle East and North Africa.
says will develop innovative HDS tire compounds.
dated molecular biology products.
in molecular biology applications,
facilities in the greater Istanbul
Heinrich Lingnau, vice presi-
grades and address growing de-
With the new production plat-
Research and development for particularly qPCR, next generation
dent and general manager Europe,
mand in Asia for energy saving tires.
form dedicated to silica innovations
these products will now be per-
sequencing (NGS), and synthetic
The cost of the plant, expected to Middle East, Africa (EMEA), said
The plant with an annual capac-
for Asia and the silica research fa-
formed in a newly built facility in
bio logy (SynBio).
go on stream by the end of the com-
the company will be "ideally posi-
ity of more than 80,000 t/y is ex-
cility that belongs to Solvay's new
Redwood City, California/USA. The
To lead Redwood City's Product
pany's 2016 fiscal year, is estimated
tioned to participate more fully in
pected to be operational within the
R&I Center at the Ehwa University
building houses state-of-the-art Development Team, IDT announced
at €5-7 million.
the accelerating growth occurring next two years.
Campus in Seoul, the company in-
labs that will allow the scientists
that Dr Caifu Chen has joined the
The facility will produce about 40
throughout Turkey and other coun-
The advanced grades produced
tends to speed up innovations in of the manufacturer of custom nu-
company as Senior Vice President
million lbs/y (18,000 t/y) of A. Schul-
tries in the Middle East and North
at the Korean site by Solvay's global
close cooperation with its regional
cleic acid synthesis to maximize for Research and Development.
man's premium additive, white and
business unit Silica is reported to customers." (dw)
the company's oligonucleotide (mr)
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
New Challenges in Chemical Purification
Ion Exchange Resins Lead the Way to Comply with High EU Standards
Purification of chemical compounds has become a vital part of most in-
Lactose, one of the best-known
kentoh - Fotolia.com
dustrial processes. Germany, with some of the tightest chemical sector
products for its use in the food and beverage and pharmaceutical in-
regulations in europe, has seen ion exchange (IX) resins become the
dustries, is treated through a com-
leading methodology to remove trace contaminants because of how the resins
bination of methods. First, lactose
selectively, efficiently and flexibly conduct their mission. Dow Water & Process
can be isolated from whey proteins using ultrafiltration. Then it can be
Solutions has developed a special portfolio of ion exchange resin products that
purified through combinations of
purify compounds in a broad range of industrial applications including the pro-
nanofiltration, ion exchange and
duction of biodiesel, caustic soda or lactose.
Some of the most successful
products for lactose demineraliza-
Since ancient times, people have Treaty signed in 1993. In addition,
tion are the resins Amberlite FPC16
purified chemical compounds to Germany approved its own Law of
Na and Amberlite FPA42 Cl. While
improve quality of life. The first at-
Chemicals in 1980, which obligates
the latter is a strong base anion
tempts to filter water as a means to
companies to register their chemi-
resin offering a high yield solution,
purify it were made by Hippocrates
cal compounds in a database that
the former is a gel cation resin with
to treat his patients in the fourth explains the substances and their
high osmotic stability. Completing
century B.C. During the industrial properties.
the pair is Amberlite FPA55, an
revolution, purification started as-
It is clear, therefore, that tailored
acrylic weak base anion resin with
suming a major role and, as a result,
solutions are needed to adapt to a
an excellent physical stability. Fi-
over the years, related regulation complex regulatory environment.
nally, Dowex Monosphere 99K/310
has intensified.
Dow Water & Process Solutions, a
is a chromatographic separation
In this sense, in Germany, waste-
leading filtration, purification and
resin designed especially for sweet-
water is treated following the high-
separation technology supplier, un-
ener applications and purification
est EU purification standards. In derstands the challenge of achieving
of polyols in food and beverage ap-
2006, the Registration, Evaluation the appropriate chemical purity for
cal sponges," removing more than
On the one hand, IX resins are duce the crude biodiesel needed for
and Authorization of Chemicals each application and offers a wide
99% of trace contaminants with an
able to remove trace contaminants
the manufacture of biodiesel fuels.
One of the big advantages that
(REACh) regulation established a range of advanced resin solutions ultratight hold. They also have a selectively by matching contaminant
However, crude biodiesel must be the aforementioned products of-
database in which any company to businesses, consumers, indus-
very high exchange capacity, which
with resin for a lock-and-key fit. On
purified to remove the salts, soaps
fer is their efficiency. IX processes
manufacturing, marketing, import-
tries and municipalities around the
allows them to treat effectively the other, they are incorporated in
and residual glycerol. Amberlite BD-
often concentrate the contaminant
ing or using chemical substances world.
many thousands of volumes of wa-
modular tanks, enabling an instal-
10Dry is the easiest and most cost-
so effectively that the loaded resin
must be registered. Also in the in-
ter before they need to be replaced.
lation to be easily expanded. In this
effective product for a successful re presents the smallest possible vol-
ternational sphere, companies pro-
Ion Exchange Resins
An exceptional selectivity for trace
sense, Dow Water & Process Solu-
ume of waste, which means that, in
ducing organic chemicals must pro-
contaminants makes ion exchange
tions works side by side with compa-
However, it is important to note
some applications, they can be re-
vide a complete accounting of their
Ion exchange resins are particu-
the most cost-effective technology to
nies to design the purification system
that this technology is designed to
generated and used for years.
production activities as a result of
larly well-suited to purification eliminate these naturally occurring
that best meets their specific needs.
be used in a water-free process and
At the same time, to achieve
the Chemical Weapons Convention
requirements. They act as "chemi-
and synthetic pollutants.
As a result, ion exchange resins
that the polymer beads will swell the highest possible performance,
are widely spread in the basic chem-
to up to three times their original
Dowex ion exchange resins —
icals and petrochemicals industries
volume as they absorb water. It is
backed by more than 60 years of
as an economic and effective meth-
strongly recommended, therefore, IX manufacturing expertise — have
od to separate and purify a large to leave sufficient void space in the
been engineered to be the toughest
number of different compounds columns.
beads on the market.
or process streams. Moreover, in
Another substance that has to
All these developments have a
some cases, IX is the only techno-
pass a purification process is sodi-
meeting point in Germany, where
logy available that can produce the
um hydroxide, also known as caustic
Dow Water & Process Solutions has
desired levels of purity.
soda. Although it is widely used in
several of its facilities. The biggest
many industries — more than half
plant is in Stade, Lower Saxony, at
Products for Which Purification is Vital
of all global production has an in-
the Elbe River between Hamburg
dustrial use — it is common to find
and the North Sea. In recent years
Purification treatment based on chloride contaminating sodium hy-
it has become renowned for devel-
ion exchange resins is essential to
droxide when low-chloride caustic
oping the best wastewater solu-
obtain some of the basic products
soda is required. To solve this prob-
tions for industrial and residential
needed both in industrial applica-
lem, the Dowex Retardion 11A8 has
purposes, among other application
tions and everyday life. Biodiesel, been developed as a unique ampho-
for instance, is well-known for being
teric ion exchange resin. It features
used in most injection pump diesel
cation and anion exchange moieties
Alexander Lane, commercial
engines but also, depending on the
in the same bead, being capable of
director for EMEA, Dow Europe,
source of the fatty acids, to signifi-
reducing the chloride content of Horge, Switzerland
cantly dissolve crude oil in industrial
concentrated caustic soda. After the
process, regeneration is achieved
Base catalyzed trans-esterifica-
by applying only hot and deionized
The Stade, Lower Saxony, plant of Dow Water & Process Solutions at the Elbe River between Hamburg and the North Sea.
tion is the preferred method to pro-
South African Analytical Lab Optimizes Pipetting
Regen Waters, an accredited analytical laboratory based in Witbank, in the human error, such as reading errors ferred settings are saved and subse- such as mixing ratios, serial dosing, Essential liquid properties are taken
South african province of Mpumalanga, has been performing chemical
for example or inaccurate pre-con-
quently accessed at the touch of a
dilutions or even reverse pipetting
into account in the pre-stored and
figurations of the pipette.
button. Frequently used parameters,
modes, can thus be quickly applied.
editable categories of liquids for
and bacteriological analyses since 1986. areas of application include
Thanks to the intuitive opera-
aqueous, volatile and viscous fluids,
among others organic analyses of contaminated soil and water as well as compre-
tion via touch screen, the technical
which helps dispensing also fluids
hensive inorganic analysis. The laboratory also maintains and operates wastewater
staff at Regen Waters can program
that are challenging and pipetted
time-efficient, even complicated pi-
with difficulty.
treatment plants for the industrial sector or mining companies. a main focus is
petting steps and link them together.
Additionally, the memory func-
therefore on the study of water samples, which require specific control services
The pipetting station combines the
tion of the device offers the pos-
concerning their chemical and bacteriological quality.
performance of a fully automated
sibility of seamless recording of
liquid handling platform with the
operations that have already been
flexibility and affordability of a man-
performed. Users at Regen Waters
As part of the microbiological tests,
In order to reach the best chemical
ual solution. Especially in situations
have thus access to the date, time
the experts identify any impurities.
dosage of the water samples, labora-
where fluids must be frequently pi-
and past pipetting operations. An
The procedure is important for sew-
tory managers began to search for
petted in succession, there is quickly
optimal traceability is thus ensured
age plant effluent discharges. This
instruments that always allow the
a risk of fatigue and loss of concen-
and frequent repetitions and accu-
can effectively help prevent envi-
same fluid volume intake and dis-
tration. These issues have been tar-
rate processes are performed.
ronmental damages that occur be-
charge in the shortest possible cy-
geted and resolved optimally. Even
According to Ludolf Uys, the own-
cause of unsuitable water usage or
cles, without leading to a high error
intermediate steps, such as chang-
er of Regen Waters, Microlab 300 is
discharge. Thus the water quality is
risk for the user.
ing pipettes, are superfluous since
an excellent instrument to ensure
checked on a regular and defined
The semi-automatic pipetting the pipetting station covers a volume
accuracy and repeatability in labo-
basis, with the view to record, for
station Microlab 300 from Hamilton
range of 1 µl to 1000 µl.
ratory practice.
example, the effectiveness of plant
Bonaduz was able to fully meet the
requirements of the laboratory. A
Simple Handling Leads
fast and especially secure handling
to Effective Workflows
2 Monika Alder Novotni,
Pipetting Stations Reduce Error Rate
of the liquids is necessary to obtain
product manager Laboratory Products
and record accurate results. Mi-
Thanks to the so-called "wizards",
Hamilton Bonaduz AG, Bonaduz, Switzerland
Modern laboratory equipment is a
crolab 300 offers features that sig-
users at Regen Waters are also of-
must have to ensure reliable studies.
nificantly reduce the occurrence of
fered higher levels of flexibility. Pre-
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
Quality and Efficiency in Pharma Manufacturing
Part 2: PAT Can Turn Batch Processes into Continuous Processes
An investment in process The pharmaceutical industry is
analytical technology (PaT)
known for high-tech research and development but relatively low-tech
is not just a capital invest-
manufacturing. PAT technology is
ment, but also an investment in hu-
changing that. In the past, the heavy
man resources and a commitment to
R&D focus and strict, validated pro-cesses made it nearly impossible to
change fundamental processes. PaT is
improve manufacturing processes
more than just inline analyzing. as an
with optimization tools commonly
enabler of Quality by Design (QbD), PaT
used in other industries. Started by the U.S. Food and Drug Admin-
affects all pharmaceutical workflows,
istration to proactively improve the
from product development to process
productivity of American drugmak-
design to process control.
ers, the PAT initiative has become a chance for all manufacturers to add sophisticated technology to
The most important aspect of a PAT
their process control with the co-
implementation is to retrain a com-
operation of government authori-
pany's culture to approach quality
ties, rather than being held back by
with a proactive rather than reac-
regulations. As the industry adopts
tive mindset. To achieve this, cross-
PAT, pharmaceutical manufacturers
functional, multidisciplinary teams
may not be able to afford not to in-
are necessary to effect change vest in PAT due to the risk of losing management to devise and imple-
ment the new processes that take full advantage of PAT. A success-
Making a Batch Process Continuous with PAT
ful PAT implementation requires a
RGtimeline - Fotolia.com
rethinking and a reorganization of
Faced with the pressures of glo-
resources. Users should anticipate
balization, some pharmaceutical
an increased need for statistical manufacturers are answering their
content, content uniformity, hard-
ous flow of materials that don't need
Extrusion is essentially a mix-
According to MSD, the HME plat-
analysis and more control engineer-
challenges with innovation. One of
ness and thickness to be adjusted to be stored at a single location. The
ing process during which process form can be easily scaled up to pro-
ing skills as analyzers are integrated
the top five global pharmaceutical
should a batch start to veer out of
result is smaller requirements for parameters for temperature, mix-
duction levels or scale-up can be
into production systems. A key suc-
manufacturers recently employed spec, thus maintaining quality in clean room space, lower clean room
ing and feed rate can be adjusted.
eliminated, depending upon prod-
cess factor, however, is to bring to-
Sipat in a pilot project. Instead of
real time and greatly reducing the
HVAC energy usage, fewer opera-
Extrusion occurs when the mixture
uct volume forecasts, because the
gether development and production
just designing PAT tools into the risk of having to scrap a whole batch
tors, and less work-in-process.
is forced under pressure through an
extruder used for most of process
teams at the earliest stage to ensure
tablet-making process, the company
orifice in the die. As the extrudate
development is essentially the same
the buy-in of top managers of these
took the bold step of converting a
leaves the die, the molten substance
size as the one used later in produc-
classic batch process into a contin-
drops between two chilled rolls, tion. If scale-up is required, CQAs
Pharmaceutical manufacturers may
On the technical side, it's impor-
uous process using Sipat. The goal
causing its temperature to fall below
remain the same while process
not be able to afford not to invest in PAT
tant to understand that PAT tools was to take an innovative approach
its glass-transition temperature and
parameters are scaled up to manu-
and devices won't simply automate
to improve some of the chronic in-
due to the risk of losing competitiveness.
form a brittle glass sheet. The sheet
facture large batches of extrudate
existing processes. Instead, pro-
efficiencies inherent in this type of
David W. Humphrey, research director Europe, ARC Advisory Group
is then broken into smaller flakes of
— up to several thousand kilograms.
cesses like manual quality checks process, including high inventory re-
glass to make it easier to mill. In the
After the successful development
are replaced by automated meas-
quirements, long changeover times,
final steps, the material is milled, and scale-up of a pilot project, MSD
urements. This information in real
disconnected processes, high pro-
at the end of the process. By using
Hot Melt Extrusion as a
blended with excipient, and then has now deployed the HME platform
time allows the process to be adjust-
cess losses and low asset utilization.
PAT tools, company engineers were
Continuous Process at MSD
lubricated and compressed into a to additional sites.
ed, but this new flexibility must be
The production line applies able to deepen their process un-
conventional solid oral dosage form.
built into the process control strat-
high-shear wet granulation process
derstanding much faster. The scale
Extrusion is a process commonly
The extruder's screw and barrel
Last Word
egy — a challenge that will require
technology to produce oral solid of the process equipment used for
used to manufacture plastic parts
are modular, allowing flexible con-
program changes on existing lines,
dosages (tablets). The line consists
continuous manufacturing in the by forcing molten material through
trol of venting, material feed, mix-
Quality by Design takes a different
or consume development resources
of unit operations for granulation,
development phase is the same as
a die under pressure. Merck Sharp
ing, heating and cooling. PAT tools
approach to ensure consistent levels
when engineering new lines. In ad-
drying, milling, blending and com-
for commercial production, so the & Dohme Corp. (MSD), a subsidi-
(NIR, Raman, ultrasound or UV-VIS
of quality by allowing for flexibility
dition, production equipment should
pression, and is controlled by two
company was able to eliminate the
ary of Merck & Co., employs a hot-
spectroscopy) come into play at the
during the manufacturing process.
have redundant systems in place in
PLCs (SIMATIC S7-300) with WinCC
scaling-up process.
melt extruder (HME) in a process
moment of extrusion. These devices
PAT tools play a crucial role in the
the event PAT equipment should fail.
for line visualization. Near-infrared
According to the manufacturer, for manufacturing solid oral dos-
interface to Sipat software from implementation of QbD by providing
(NIR) analyzers measure properties
the new continuous process concept
ages. This process allows a drug Siemens, allowing CQA deviations the real-time feedback that allows
Costs and Risks of Not Investing in PAT
such as moisture, content uniform-
was developed within two weeks substance to be stabilized in its (measured here as percent drug operators to keep CQAs in spec by
ity and assay, and laser diffraction is
and the line was producing tablets
amorphous form within a polymer
loading [wt/wt]) to be identified in
adjusting processes during opera-
Making a business case for PAT is
employed for particle-size detection.
reliably and with excellent quality
matrix, increasing solubility and in
real time. If drug-loading predic-
tion. At the same time, quality data
not straightforward because it is
In this application, Sipat software
after just six months. The in-line vivo exposure, which is useful when
tions are outside of specification, collected during the process can
difficult to estimate future returns
collects and evaluates multivariate
quality checks now make possible
the active pharmaceutical ingredi-
alarms trigger, immediately acti-
take the place of end-of-line QC,
from improved quality or the lower
product quality information (CQAs),
real-time release with significant ent has low solubility. The HME vating a switch gate to divert out-
drastically cutting batch release
costs of generating less waste. A PAT
such as loss on drying or particle-
increase in efficiency versus tradi-
process combines multiple steps of-spec material to waste. Any CQA
times. The many business benefits
investment is not just in equipment,
size distribution, as well as uni-
tional batch methods with end-of-
such as mixing, melting, degassing
deviations are brought back into line
of employing PAT tools are highly
but also in people and processes, variate process data such as speed,
line QC. Interestingly, the equipment
and densification, which increases
by adjusting the necessary process
so those costs must be amortized torque, temperature and compres-
has a substantially smaller footprint
efficiency by reducing the number
over a longer payback period. ARC
sion forces for closed-loop model — requiring only about a tenth of
of unit operations. MSD employs
David Humphrey, research direc-
re commends taking a holistic view
predictive control. Quality param-
the space needed by an equivalent
PAT tools and Sipat software from
tor Europe, ARC Advisory Group,
to the PAT value proposition that eters are shared with a manufac-
batch line. The reason is that a batch
Siemens, using Fourier-transform
This is the second of two articles from David
not only considers the initial capital
turing execution system (SIMATIC process requires all raw materials
near-infrared (FT-NIR) spectros-
Humphrey on process analytical technology
outlay, but also weighs the costs of
IT) that tracks this information for
to be stored locally during the batch
copy to monitor form change, as-
(PAT). Part 1 was published in issue 3-4/2015
organizational change against the real-time release reporting. Sipat al-
process. A continuous process, on say and uniformity of the mixed
2 [email protected]
of CHEManager International.
long-term benefits.
lows parameters such as moisture
the other hand, employs a continu-
Siemens
Fig. 1: PAT measures CQAs after each unit operation to ensure in-process quality.
Fig. 2: Using Sipat to turn batch tablet making into a continuous process with savings in space, energy use and waste. (Source: Siemens)
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
Intellectual Property in China's Chemical Industry
Companies Will Have to Prevent, Detect and Respond to IP Loss to Access Growing Market
Chemicals are an increasingly
the potential infringer. This will help
mature industry with a high
companies formulate legal strate-
gies and choose jurisdiction.
degree of competition. In this
Next, any publicly available infor-
situation, industry participants need
Igor Link - F
mation that can demonstrate a link
to consider how to differentiate them-
between the original technology and the infringer should be identified.
selves and stay ahead of their rivals.
Technicians may have carelessly
Superior intellectual property is such a
disclosed too much about a com-
differentiating factor. It allows compa-
pany's trade secrets in an academic paper. Or a Chinese media article
nies to participate in market segments
may have photos of equipment un-
with a smaller number of competitors
der construction and specifications
and higher margins. However, intel-
about production capabilities. A sus-pected infringer's website may dis-
lectual property is only a differentiat-
close product specifications (some-
ing factor as long as it is restricted to a
times in Chinese language only) that
limited number of players.
are helpful in building a case. Lastly, local environmental regulators may require technical information, dis-closed within the environmental im-pact assessment report, to be pub-licly available for a period of time.
After a thorough review of all
publicly available materials, in-vestigators can focus on gather-ing evidence including interviews,
Nick Blank, Blackpeak Group
photographs of equipment, pro-duct samples, product brochures and certificates of analysis. Clients should discuss in advance with risk consultants and legal counsels how any such evidence might be used in court. This can help guide collection of the evidence so that it is admis-sible in court.
Changes to the Chinese legal
system may also make it easier for
Dr. Kai Pflug, CEO, Management Consulting —
companies to litigate and recover
damages. China announced the es-tablishment of specialized IP courts in Beijing, Shanghai and Guangzhou.
For Western chemical companies, vention of IP loss, detection of IP protecting IP, it is imperative to con-
the same equipment to competitors
Detection of IP Loss
The cases heard by these courts will
the threat of exposing critical intel-
loss, and response to the loss. We sider a broad range of perspectives.
be technically complex matters such
lectual property has therefore fre-
will discuss these issues separately.
After key IP assets are identified,
Access to IP: IP should be avai-
Keeping an eye on the markets; as patents and technical trade se-
quently been a key concern and an
measures should be defined to re-
lable only on a need-to-know basis,
listening to customers, suppliers crets. The Supreme Court has also
obstacle in expanding activities in
Prevention of IP Loss
duce the exposure risk for individual
i. e., access to specific IP should be
and employees; and taking whistle-
proposed removing limitations to
China, particularly in the areas of
IP items. Obviously, these measures
limited to the staff requiring it for
blower reports seriously are all good
damages that can be claimed by
production and research. However,
Any strategy to prevent IP loss must
will affect many different areas, and
their specific work.
measures to detect IP loss. The hu-
patent owners.
China is already the biggest market
start with a definition and prioritiza-
we will only give a few selected ex-
IT setup: Basic precautions such
man resources department also can
for chemicals in the world, and cur-
tion of the IP owned by the company.
as utilizing computers without USB
play an important role, particularly
No Total Security
rent growth rates compared with It is important to note that IP is not
Facility design: Chemical com-
slots, or limiting access to personal
by conducting exit interviews. These
other countries suggest that its im-
at all limited to protecting patents.
panies setting up new facilities may
email websites, should be taken to
interviews may help detect a prob-
Admittedly, all the measures out-
portance will increase even further.
IP covers a far broader area. For ex-
consider designing them from the prevent theft of IP. In one case, an
lem with an employee who is leav-
lined above will only limit the risk
Thus excluding China as a location
ample, it also includes items such
ground up with security in mind. employee downloaded a series of ing. Even more importantly, as em-
and the consequences of IP loss
for chemical production and chemi-
as customer lists, information on For example, conference rooms for
control settings and other key tech-
ployees leave, they may feel more
— there are no guarantees to stop
cal research is not a realistic long-
pricing, experience in how to best
meetings with external guests may
nical and environmental data onto a
comfortable reporting a colleague's
it. Some chemical companies have
term option for companies aiming
train staff, know-how in production,
be located at the main entrance, thus
USB device just days before he re-
experienced significant IP loss, not
to be leading global players. Without
HSEQ (health, safety, environment,
preventing visitors from walking signed. Even though the company
Suppliers and customers are in China, but in their Western home
local production, chemicals produc-
quality) knowledge, information on
through a facility unattended. While
learned about the incident and took
also good sources of intelligence. countries. This has obviously not
ers have serious disadvantages with
chemical formulations, names of key
closed-circuit TV cameras may be action against the employee, it was
They are the ones who are usu-
stopped them from doing business
regard to cost and delivery times.
staff, supplier lists, specifications of
helpful, this investment is a waste
too late to undo damage caused by
ally approached by new companies
there. And with the right strategy,
Without local research, it is almost
raw materials, etc. While identifying
if the security staff is not sufficiently
the employee passing the informa-
purporting to "offer the same tech-
companies will be able to achieve a
impossible to create products suf-
these IP items, the location of the
trained to use the system. Control-
tion to others.
nology at a better price," which is a
similar level of IP security in China
ficiently adapted to local needs.
respective IP within the company ling IP at a single centralized facility
Employee retention: Companies red flag for IP theft. Suppliers also
as in their Western markets.
As a consequence, Western play-
should also be cataloged. Subse-
with robust security is easier than
must be strategic about protecting
have opportunities to visit a range of
ers will have to bring more of their
quently, the intellectual property operating many smaller locations.
their core assets — knowledgeable
plants, and may spot equipment and
Nick Blank, director, Blackpeak
intellectual property into China. At
items should be prioritized based
Black box approach: Bringing IP
employees. This includes creating design infrastructure that copies the
Group, Hong Kong, China
the same time, they will have to on the likely damage a loss of each
in as a "black box" from outside (this
long-term career plans and incen-
original. Informal reports from these
Dr. Kai Pflug, CEO, Management
improve the way of protecting this
item would cause to the company.
may be from outside of China for tives for employees with access to
sources are often the first step in de-
Consulting — Chemicals, Hong
IP. Similarly, Chinese chemical com-
This allows management to focus on
multinational companies, or from sensitive IP. This is particularly im-
tecting IP loss.
panies, particularly those that have
the most critical IP items and ap-
outside of, e. g., a production site for
portant for segments booming in
already been in business for some
ply corresponding levels of protec-
a domestic company). This can apply
China. In these segments, the danger
Response to IP Loss
time and thus have gathered their
tion. However, prioritizing IP is not
to a variety of items including mix-
of competitors poaching knowledge-
own intellectual property, must also
as straightforward as it may seem.
tures of raw materials, equipment
able employees is particularly high.
If a chemical company suspects
protect their IP in order to avoid Opinions may differ about what con-
parts or software. Building equip-
At the same time, companies should
patent infringement or theft of a
competition from other domestic stitutes key IP. For example, the le-
ment in China could mean entrust-
conduct adequate due diligence on
trade secret, it should investigate to
gal team's priorities may differ from
ing contractors with schematics and
new hires to understand if they left
gather more information. As a first
The protection of IP can broadly
those of the research team and so
designs. The same contractors may
any former employers under a cloud
step, it is important to understand
be split in different phases — pre-
on. As all employees have a role in
see business opportunities supplying
of suspicion.
the background and shareholding of
Lanxess Starts New EPDM Rubber Plant in China
BASF Signs Coatings Deal in China
German chemical producer Lanxess
lored to Chinese and Asian custom-
pany said the Marl plant is "the least
Werner Breuers – who had respon-
BASF's Coatings Division has signed
tive refinish coatings is important
has started production at its new ers' needs.
competitive in its EPDM production
sibility for the group's Performance
a manufacturing agreement with for fulfilling the growing market
ethylene propylene diene rubber
With the gradual ramp-up of the
network, due to its poor economies
Polymers business – in August 2014.
Guangdong Yinfan Chemistry Co, a
demands," said Peter Fischer, senior
(EPDM) plant at Changzhou in Chi-
new facility to its nameplate capac-
of scale and relatively high energy
"We still have significant over-
Chinese firm that recently opened a
vice president, Coatings Solutions
na's Jiangsu Province.
ity, Lanxess said it will "complete" its
and raw material costs. Some 120
capacity" for synthetic rubber, cur-
new production facility at Jiangmen
Asia Pacific at BASF. Partnering with
Over the next several months, global EPDM asset base. In fact, with
jobs will be slashed in the move.
rent CEO Matthias Zachert said at
City, Guangdong Province.
Yinfan "supports BASF's ambitious
the company said it will be running
the planned shutdown of the 70,000
Excessive investment in an over-
the annual results press conference.
Under the agreement, Yinfan will
plan in this fast-growing market,"
sampling and approbation processes
t/y EPDM plant at Marl, Germany, supplied rubber market — in which
For 2015, he said the business will
manufacture automotive refinish he added.
with customers. The new 160,000 t/y
by the end of this year, output will
Lanxess is the leading player — has
remain "challenging." Earnings of coatings, targeting the non-premium
Qingtao Zhang, Chairman of
plant in Changzhou Yangtze River-
actually be reduced.
been blamed for the dramatic profit
the Performance Polymers segment,
segment, for BASF at the new plant,
Yinfan, said his company is "fully
side Industrial Park, said to have ac-
In announcing the planned clo-
slide that led to the forced resigna-
which also includes engineering using the German chemical giant's
committed to meeting the stringent
cess to "excellent storage and ship
sure simultaneously with publica-
tion of former CEO Axel Heitmann in
plastics, are expected to be in line
formulas and technologies.
quality requirements of BASF in au-
uploading facilities," will produce tion of its annual results for 2014, in
early 2014 and the subsequent de-
with the 2014 figure of 808 million.
"Establishing a reliable, regional
tomotive refinish coatings." (dw)
ten premium grades of EPDM tai-
mid-March the Cologne-based com-
parture of managing board member
manufacturing footprint for automo-
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
Biorefineries and Chemical Processes
As the range of feedstocks, process
case studies, additional exercises
technologies and products expand,
and examples. This textbook is de-
biorefineries will become increas-
signed to bridge a gap between en-
ingly complex manufacturing sys-
gineering design and sustainability
tems. This book presents process assessment, for advanced students modelling and integration, and and practicing process designers whole system life cycle analysis tools
and engineers.
for the synthesis, design, operation and sustainable development of bio-
2 Biorefineries and Chemical Processes
Stefan Oschmann (57), currently deputy chief executive of
refinery and chemical processes.
Jhuma Sadhukhan, Kok Siew Ng, Elias Martinez
CESIO Congress, 1 – 3 June 2015, Istanbul, Turkey
Merck KgaA, will be promoted to replace current CEO
Topics covered include an introduc-
The 10th CESIO congress will showcase an extensive scientific program on
Karl-Ludwig Kley (63). Oschmann would take on the new role
tion to the concept and development
John Wiley & Sons
the main theme „Surfactants in a Globalising World — Creating new Pos-
next year after the group‘s annual shareholder meeting in
of biorefineries, tools, a look into
Price: € 97.90
sibilities". In addition, business convention facilities will be offered to all
April 2016 or in September next year at the latest, when
biorefinery systems as well as four
ISBN: 978-1-119-99086-4
participants and their companies to do business efficiently. Sessions, post-
Kley‘s current contract expires. The German drugs and
ers and exhibition will cover the scientific, economic, technical, as well as
chemicals maker last September appointed Oschmann, the
safety and regulatory aspects of surfactants and surfactant applications in
head of its pharma business at the time, as deputy chief
the industry and consumer products. The CESIO Congress provides a good
executive from January 2015 on, sharing strategic manage-
opportunity to meet with key contacts along the surfactant value chain.
ment functions and representation of the company with Kley.
2 www.cesio-congress.eu
NanoInnovation: What Every
Udit Batra (44), currently CEO and President of Merck Mil-
Achema, 15 – 19 June 2015, Frankfurt, Germany
lipore, has been appointed to lead the combined life science
Manager Needs to Know
With 3,800+ exhibitors and almost 170,000 participants, Achema is the
business of Merck Millipore and Sigma-Aldrich once the
leading international exhibition congress on Chemical Engineering, En-
acquisition of Sigma-Aldrich has been successfully com-
The innovative, easy-to-read guide
the contents. The result is a vivid,
vironmental Protection and Biotechnology. Environmental Protection and
pleted. Batra has served as CEO and President of Merck‘s
to the „nanoscale revolution", this
yet realistic look at nanotechnology,
Biotechnology are integral general topics at Achema, both exploit the
life science business Merck Millipore since March 2014.
book provides essential knowledge
providing orientation in the nano
technological solutions enabled by process engineering. As a result, the
He joined Merck in 2011 to head the Group‘s Consumer
of nanotechnology and clearly ex-
world: major lines of research, key
synergistic concept of production-integrated environmental protection
Udit Batra
Health business. Prior to that, he worked at Novartis Vac-
plains the fundamentals of nanoma-
players in R&D, as well as social,
has become one of the hallmarks of Achema. In answer to the great de-
cines and Diagnostics, where he was head of Global Public Health and
terials and properties. Written by a
economic and political issues.
mand, the event offers additional exhibition space for Pharmaceutical,
Market Access. He served in a range of executive management positions
technology pioneer, the book shows
Packaging and Storage Techniques.
at Novartis, including global Head of Corporate Strategy and Country
feasible strategies for managers in
President for the Pharma Business in Australia.
nanotech companies, including how to communicate with nanotech engi-
Chemspec Europe, 24 – 25 June 2015, Cologne, Germany
Marie Ffolkes has been appointed to the position of President, Industrial
neers and developers, coupled with
2 NanoInnovation: What Every Manager Needs to Know
Chemspec Europe is the only dedicated event for custom, fine and spe-
Gases–Americas at Air Products, effective May 18, 2015. Across North and
examples of emerging technologies
Michael S. Tomczyk
cialty chemicals professionals and end users from segments like pharma,
South America, Ffolkes will have accountability for safety, plant opera-
and innovations. A level-headed dis-
biotechnology, crop protection, cosmetics, contract manufacture, and
tions, distribution, supply chain, procurement, sales, marketing, as well as
cussion of critical issues for decision
Price: € 49.90
many more. The trade show with a focused range of exhibits and easily
regional operations. She joins Air Products from Tenneco where she was
makers and stakeholders rounds off
ISBN: 978-3-527-32672-3
identified feature areas will be accompanied by a range of conferences,
global vice president and general manager of its Global Elastomer & Ride
seminars, workshops and networking opportunities, as well as new fea-
Performance Group. Prior to Tenneco, she served at Johnson Controls as
tures to celebrate the 30th edition of the event. Chemspec Europe provides
vice president and general manager for its South American Region's Au-
a perfect opportunity to connect with buying teams from every type of
tomotive Group based in Sao Paulo, Brazil. Ffolkes also formerly worked
industry sector ; customers, distributors, end-users and new prospects.
for General Electric in a variety of roles, including senior manager, Global
2 www.chemspeceurope.com
Mergers & Acquisitions–GE Healthcare. She holds an MBA from Columbia
Business Ethics: Readings and
Business School and a B.S. from Brooklyn College.
Specialty & Agro Chemicals America, 9 – 11 September 2015, Charleston, USA
Cases in Corporate Morality
Specialty & Agro Chemicals America focuses on the chemical products and
Svein Tore Holsether will become president and CEO of Yara International
technologies that have specific applications for the agrochemical and spe-
with effect from October 2015. He will succeed acting CEO Torgeir Kvidal.
The fifth edition of Business Ethics
through 53 readings and 30 pertinent
cialty chemical manufacturing markets. Participants cover a diverse range
Holsether is currently serving as president and CEO of Sapa Group, a
addresses current, intriguing, often case studies. Significantly updated, it
of chemical end-uses including adhesives & sealants, agriculture & crop pro-
position he has held since 2011. Kvidal, who has been acting CEO since
complex issues in corporate morality
includes new leading articles, related
tection, coatings & paints, cosmetics & personal care, flavors & fragrances,
October 2014, will return to his position as CFO. Holsether was born in
current cases, and mini-cases based
oilfield & lubricants, pharmaceuticals, plastics & composites, and water
Norway in 1972 and holds a BSc in finance from the University of Utah.
on MBA student dilemmas and pro-
treatment. The conference program includes a mix of presentations focused
vides impartial, point-counterpoint
on both the agrochemical market and broader specialty chemical industry.
Mario Mehren, currently a member of the board of executive directors of
presentations of different perspec-
Wintershall and responsible for Exploration & Production Russia, North
tives on the most important and
Africa and South America, has been named president of BASF‘s oil and
highly contended issues of business
ChemOutsourcing, 14 – 17 September 2015, Long Branch, USA
gas division, effective July 1, 2015. In this function he will be head of
ethics. All authors have substantial
ChemOutsourcing is the largest USA-based API show attracting annually
Wintershall. He succeeds Dr. Rainer Seele, who has been named CEO of OMV,
experience in teaching, writing, and
around 700 chemists from the pharmaceutical, biotech, and chemical indus-
Vienna, Austria, effective July 1, 2015. Seele has been head of Wintershall
conducting research in the field.
tries. The show focuses on API development spanning early drug discovery
through chemical development and commercial supply. Attendees are ex-
2 Business Ethics: Readings and Cases in
ecutive scientists from pharmaceutical companies responsible for sourcing
Michael Pontzen has become a member of Lanxess‘ management board on
Corporate Morality
starting materials, intermediates, and APIs, and experienced in working
April 1, 2015. He assumed the role of CFO at the specialty chemicals
W. Michael Hoffman, Robert E. Frederick, Mark S.
with Contract Research and Contract Manufacturing Organizations (CROs
company. He will succeed Dr. Bernhard Düttmann, who left the company at
& CMOs). Likewise, the show is attended by high-level executive suppliers
the end of March, 2015. Düttmann has been CFO at Lanxess since 2011.
of these services and products, including 100+ exhibitors.
Michael Pontzen was born in Mönchengladbach, Germany, in 1969. After
Price: € 55.90
studying business administration, he held various positions at Ferrostaal,
ISBN: 978-1-118-33668-7
MAN and EADS. He joined Lanxess in November 2004 as head of the investor relations group. In October 2008, he became head of corporate finance within the treasury group. He additionally assumed responsibility for risk and cash management from spring 2009. Pontzen has been head of the corporate controlling group since January 2012.
Peter Vanacker (49) succeeded Dr. Martin Wienkenhöver as CEO of CABB on April
1, 2015. Wienkenhöver will retire later this year after a transition period
and then serve on the company‘s advisory board. Vanacker has served for about 10 years as member of the executive committee of Bayer Material-Science and ran its global polyurethanes business from 2004 to 2011. He was also Chief Marketing and Innovation Officer of Bayer MaterialScience.
…the JUNE issue of
Most recently he has been CEO of Treofan Group.
Oliver Albrecht took on the role as new managing director of Vetter on
April 1, 2015. He replaces Max Horn who left the company in June 2014.
In his new role as Managing Director, Albrecht will be responsible for
two of the eight company divisions, the first of which is comprised of
Finance, Controlling and IT. The second division includes Corporate
THESE ARE OUR FEATURE TOPICS:
Development, Legal and Corporate Compliance. In recent years, he was CFO of SHW headquartered in Aalen, Germany and acted also as an
▪ COVER STORY
▪ MARKETS & COMPANIES
independent consultant for mid-sized companies. Albrecht previously
Creating a Market Leader in Research
Big Data in Life Sciences
held positions at Centrotherm Photovoltaics and in the financial and
Chemicals & Equipment
– Vir Lakshman, KPMG
– Interview with Udit Batra, Merck
banking sector. He holds a diploma in Business from the University of
▪ PHARMA
Mannheim, Germany.
▪ CHEMICALS
Pharma Production 4.0:
Future Growth: Chemtura OMS is Com-
When Purity Becomes a Challenge
Dr. Giorgio Bruno has been appointed General Manager of Recipharm Italia.
mitted to Delivering Customer Value
– Interview with Thomas Zimmer, ISPE
– Interview with Alan Swiech, Chemtura
Highest Safety:
In this role, he will serve as CEO for all of Recipharm's Italian operating
New Openings: Cheap Oil Boosts Demand
Serialization of Pharma ceutical Packaging
companies. Dr. Bruno has long established senior management experi-
for Oil & Gas Chemicals – Sean Milmo
– Daniel Sanwald, Bosch
ence from within the pharmaceutical industry, especially in the area of
manufacturing. He has worked in both Italian and multinational pharma-
▪ PRODUCTION
▪ AGROCHEMISTRY
ceutical companies covering a wide range of disciplines. In particular he
Process Intensifi cation:
Enriching the Microbiome
New Challenges Demand New Processes
– Interview with Marcus Meadows-Smith,
has had responsibility for quality and manufacturing at such companies
Register for free trial copies
including Parke Davis, AstraZeneca and Corden Pharma. Dr. Bruno also
Industrial Plant Manufacturing:
No Contradiction: Improving Crop Yields
of CHEManager International on:
has held a number of positions within Italian based industry associations.
Growth Regions vs. Recession Regions
& Protecting the Environment
– Oliver Kinkel, Michael Willome, Clariant
He holds a Ph.D. in Pharmaceutical Chemistry and Technology from the University of Milan.
+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +
CHeManager International 5/2015
eU Chemicals trade with Major Partners
EU Commission Finalizes New GMO Import Rules
EU chemicals trade flows with the United States
eU – US Chemicals trade
The European Commission has fi-
A deadlock in GM crop approvals
While the US wants Europe to open
nalized new rules allowing mem-
has been a major hindrance to their
its doors to these products, many
extra-eU chemicals trade in 2013 totaled € 229.3
ber states the freedom to restrict distribution in the EU up to now. environmental and health advocates
EU trade balance
billion with exports reaching € 139 billion, thus de-
or prohibit the import of genetically
Only one is currently approved for are vehemently opposed.
livering an eU chemicals trade surplus of nearly € 49
modified crops for food or feed, even
commercial cultivation, Monsanto's
In a statement, US Trade Repre-
billion. The top 10 eU chemical trade partners ac-
if they have been approved by the
insect-resistant maize, MON 810, sentative Michael Froman expressed
counted for 70% of exports and imports (c. f. the
EU legislative authority.
which is grown in Spain and Portugal.
disappointment over the Commis-
article on page 10). The US is by far the eU's biggest
chemicals (€ million)
This proposal, which mirrors a
Of the 129,000 hectares of GM sion's plans to let EU national gov-
trading partner in chemicals. It buys € 26 billion of
directive issued by the EU in March
maize grown in the EU in 2012, fig-
ernments decide for themselves
eU exports, nearly 20% of the eU chemicals total
covering the cultivation of GM crops,
ures show that Spain accounts for
whether to allow GM imports. "Pro-
every year, whilst providing € 20 billion of eU im-
will now be sent to the European more than 90%.
posing this kind of trade-restrictive
EU trade flows with US:
ports. The drop in exports since 2012 is mostly due
Parliament and the Council for a
Currently, 58 GM crops are ap-
action is not constructive," he said,
7,304 7,155 8,454 6,316
to petrochemicals that account for 46% of eU che-
proved for use in feed and food. adding that it appears to divide the
micals exports and have been negatively affected
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Under the latest rules, to opt out of
While very few are on sale for hu-
European trade bloc into 28 sepa-
by the US shale gas boom, hence lowering the total
approving an imported crop for do-
man consumption, an estimated 60%
rate markets.
Source: Eurostat (Comext), CEFIC ‘Chemical Connections' Report, 2014
CHEManager International
export volume.
mestic use, member states will have
of the EU's requirements of vegetable
For their part, European environ-
to provide reasons not already as-
proteins for cattle nevertheless are
mental organizations are fearful that
sessed by Brussels authorities, which
met by imported soy and soymeal the proposed legislation does not pro-
currently include effects on human
from countries such as the US, where
vide a firm legal basis for member
EU chemicals trade flows with China
eU – China Chemicals trade
health and animal health and poten-
GM cultivation is widespread.
states to opt out, exposing them to le-
tial damage to the environment.
The US government and the Eu-
gal challenges from biotech interests.
Within a decade, China has become world leader in
Suggested reasons could include
ropean biotech industry have re-
The right for companies to sue na-
EU trade balance
chemical output by a wide margin, with annual sales
local planning restrictions or lack peatedly complained about the EU's
tional governments seen as restrict-
of € 1,047 billion, a 33.2% share of the global total
of public consensus about the de-
inaction in approving GM products.
ing trade is an especially controver-
and far ahead of the eU's € 527 billion sales and
sirability of the product.
The association representing the sial talking point, which has consist-
16.7% global market share. Today China is the eU's
"The objective is to give national
interests of the biotech industry, ently held up TTIP negotiations.
chemicals (€ million)
second-biggest chemicals trading partner, accoun-
governments' view the same weight
EuropaBio, contends that the Com-
A lack of a consensus about
ting for 8.7% of eU exports. While Chinese chemical
as scientific advice in the authoriza-
mission has not cleared any crops
whether this right should be exclud-
companies are gradually increasing their focus on
tion of GMOs in their territory," Com-
since November 2013.
ed from any deal is one of the rea-
specialty chemicals, the country will remain a major
petition Commissioner Margrethe
Additionally, GM crops are a sons leading European politicians
EU trade flows with China:
importer of commodity chemicals for some time to
Vestager, standing in for Health point of controversy in negotiations
such as Germany's vice chancellor,
come. Chinese expansion does not necessarily imply
Commissioner Vytenis Andriukaitis,
between the EU and the US over the
Social Democrat Sigmar Gabriel,
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
europe loses out. Rather, there are wins for both, and
said at a press briefing to announce
Transatlantic Trade and Investment
predict that the agreement may
Source: Eurostat (Comext),
China offers many opportunities.
the proposals.
Partnership free trade deal, TTIP. never be concluded. (dw)
CEFIC ‘Chemical Connections' Report, 2014
CHEManager International
EU chemicals trade flows with India
eU – India Chemicals trade
India is the world's second-largest emerging market,
EU trade balance
and the eU is India's biggest source of foreign direct
investment. eU-India trade in goods and services
accounted for nearly € 73 billion in 2013, of which
€ 7.2 billion was in the chemicals sector. eU chemi-
chemicals (€ million)
cals trade with India tripled in value during the last
decade. exports in 2013 reached € 3.5 billion, of which petrochemicals, specialties and polymers ac-
counted for almost one third each. Basic inorganics
EU trade flows with India:
and consumer chemicals share the remaining 11%
almost equally. But, still, India buys only 3.1% of eU
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
chemical exports, which is modest compared to po-tential trade between the two economies.
Source: Eurostat (Comext), CEFIC ‘Chemical Connections' Report, 2014
CHEManager International
EU chemicals trade flows with the GCC
eU – GCC Chemicals trade
In 2013, the Gulf Cooperation Council (GCC) was the
draghicich - Fotolia.com
fifth largest trade partner of the european chemical
EU trade balance
Mediterranean Biochemistry — Pesto (Italian for "crushed") is a paste made out of pine nuts, garlic, hard cheese, olive oil, and — abo-
industry, with a trade flow of € 11 billion. Thanks to
ve all — basil. The dish originated in Genoa, Italy, where basil (Ocimum basilicum) played an important role as early as the Middle ages
sustained economic growth, since January 2014 the
as a medicinal agent. When we take pesto prepared from fresh basil, spread it onto steaming pasta, and allow the inimitable fragrance
GCC countries no longer qualify under the Genera-
to rise up, we ask ourselves: with what aromatic molecules is this plant blessing us? Prof. Klaus Roth answered this question in an ar-
lised Scheme of Preferences (GSP) that allows prefe-
chemicals (€ million)
ticle in Wiley's journal "Chemie in unserer Zeit". The principal component of the Mediterranean-type basil — usually used for pesto
rential tariffs for the least developed countries. They
— is linalool. Other components are α-pinene, β-pinene, 1,8-cineol (eucalyptol), camphor, methyl chavicol (estragole), eugenol,
are subject to full import duties when exporting
α-bergamotene, and τ-cadinol. and now: buon appetito!
chemicals to the eU. This matters because thanks to
their huge output of low-cost fossil fuels, GCC mem-
EU trade flows with GCC:
bers are massive exporters of energy-intensive pet-
rochemicals and polymers. Thus, the eU exports
This issue of CHEManager International contains the
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
primarily specialties and consumer chemicals into
Source: Eurostat (Comext),
special supplement Distribution & Logistics
CEFIC ‘Chemical Connections' Report, 2014
CHEManager International
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SIBUBO – ALERTA BIBLIOGRAFICA (octubre a noviembre 2014) Sede Viel: (56) 22477 4131 – 22477 4130 – 22477 4184 Sede Rondizzoni: (56) 22477 4271 Estimados lectores: Esta Alerta de Novedades contiene los materiales ingresados en los meses de octubre y noviembre del 2014. Las referencias bibliográficas contenidas se encuentran en formato de normativa APA, a fin de familiarizar al lector en su uso, incorporando además el número de pedido de Biblioteca, para facilitar el acceso al material.
The Egyptian Cabinet Information and Decision Support Center Center for Future Studies Sustainable Cities in Egypt Learning from Experience: Potentials and Preconditions for New Cities in Desert Areas Dr. Nisreen El-Lahham Dr. Waleed Hussen September 2009 Sustainable Cities in Egypt