Linde Sells Business to Airgas

4/2007 4/2007MayMay

Markets & Companies Production Intellectual property The N e WSPa P e r Dispersion of auction to take place nano-sized in May in Munich for T he C hemiC al aN d particles Page 6 life SCieNCe S markeTS Page 7

Newsflow Young Company, Big Plans Market r eport Air Liquide has acquired the engineering firm Lurgi, which is owned Japanese Pharma Market by Global Engineering Alliance (GEA The Arkema Group Has Set the Bar High Group), based on an equity value of Study by PriceWaterhouseCoopers approximately €550 million, which he Arkema Group was cre- in May 2006. When the management was appointed, the Japan has the world’s second-biggest economy after the U.S., is equivalent to an enterprise value ated in October 2004 from of €200 million after including the company had low profitabil- with GDP reaching nearly US-$5 trillion in 2005. Between the assumption of Lurgi’s cash posi- the reorganisation of Total’s ity. Today we believe we have 1960s and 1980s, the country’s real economic growth was spec- T turned the corner and we can tacular, but the pace slowed dramatically in the 1990s, as the tion as well as its pension and other Chemicals branch. Divided into three liabilities. The transaction is subject to be proud of our achievements in after-effects of over-investment in the late 1980s and domestic approval by the European and Ameri- business segments – vinyl products, 2006. We had set a target of an policies intended to extract speculative excesses from the stock EBITDA growth between 10 and and real estate markets began to bite. The global economic can competition authorities. industrial chemicals and perform- With nearly 1,300 employees and 15 % per year between 2005 and downturn at the start of the decade exacerbated Japan’s woes, total sales of around €850 million ance products – the company initially 2008. In 2006, we have been but it now seems to be recovering. in 2006, Lurgi, a German-based able to increase our EBITDA by Soaring exports and solid consumer spending saw the econ- struggled with profitability problems. € company, has a particularly large 20 % at 425 million, which is omy grow 2.6 % in 2005 – its best performance since 2000 and portfolio of technologies, from Arkema’s executive vice president for well above our objective. Also our net income, following three Japan’s economy is growing faster than that Figure 1 producing hydrogen and synthesis strategy, Bernhard Boyer, said that the gas to biofuel production processes years of losses, is positive and of Euroland € (bio-ethanol, bio-diesel). Its main company has now “turned a corner” amounts to 45 million. We currently have a large number of 5 engineering centres are situated in and has ambitious plans for growth on going projects relating to the U.S. Germany, Poland, United States, Euroland

P 4 India and South Africa. through 2010. Brandi Schuster spoke different businesses and geogra- Japan phies to transform our group. GD E www.airliquide.com to him about the company’s future, We are building Arkema 3 E www.lurgi.com its presence on the Parisian stock step-by-step: Since its creation in 2004 Arkema has become a BASF Future Business is extending its exchange and its plans for upcoming 2 much stronger company, and we technology portfolio and cooperation ercentage change in

acquisitions. want to turn it into a competi- P network in the printed electronics sec- 1 tive and growing leading chemi- tor by starting a collaboration with the CHEManager Europe: How has cal company by 2010. We are U.S. company Polyera Corporation, Arkema grown since being spun today confident in the potential 0 Illinois. The partnership will focus on 2005 2006 2007 off from Total in 2006? of Arkema and its capacity to the development and commercializa- meet its objectives. Source: International Monetary Fund, tion of new organic semiconductors World Economic Outlook Database, September 2006 © GIT VERLAG B. Boyer: Arkema was created Bernhard Boyer and dielectrics for use in CMOS-analog in October 2004 and spun off Arkema’s executive vice president for strategy E Continues Page 4 E Continues Page 3 printed circuits. The partners intend to develop these materials as well as a printed prototype CMOS circuit within the next three years. E www.basf-fb.de E www.polyera.com ‘Disruptive’ Behaviour New Dynamic Growth Aker Kvaerner has been selected for the basic and detailed engineer- Dow Corning’s Innovative Business Model Start-ups Need Innovation, Not Administration ing design and for the provision of offshore procurement services for fter decades in the business, model, called Xiameter, he “Bayer Chemical Start-up start-up. A critical suc- PetroquímicaSuape’s new Purified to offer mature products cess factor in the start-up Dow Corning realised a few Initiative” launched by Bayer Terephthalic Acid (PTA) plant, to online at market-driven phase is having reliable be built at the Port of Suape, Per- years ago that they were prices. The business Industry Services (BIS) in 2003 partners when it comes nambuco, in North East Brazil. Aker A rules we established for T to technical know-how, not effectively serving their custom- is a comprehensive service for new Kvaerner has signed an Early Works Xiameter require large- finance, marketing and Contract with PetroquímicaSuape ers needs. The company responded by volume purchases, spe- companies. This BIS initiative is aimed networking. And Ger- for the development of purchase cific lead times and cer- many certainly has large created a web-based business model, at providing support for new chemical- orders for the long delivery equip- tain payment terms. Xi- reserves of expert knowl- ment items and technical advisory Xiameter, a no-frills platform for cus- ameter allows us to offer related businesses looking to move to edge to call on – which services. The new plant will produce a new choice for people is the most important tomers looking for good quality at a one of the Bayer Chemical Park sites 640,000 t/y of PTA. The project com- who know how to use sil- resource in terms of start- mences immediately, and start-up of good price. Brandi Schuster spoke to icone materials but don’t in Leverkusen, Dormagen or Krefeld- up support – in order to the new plant is scheduled for the need additional technical draw up an effective Eric Peeters, executive director seal- Uerdingen. CHEManager Europe spoke end of 2009. service and expertise. long-term business plan E www.akerkvaerner.com ants and adhesives, Core Products What made this business to Dr. Volker Wege, Manager of the that will ultimately pave model potentially “disrup- the way for a successful Business at Dow Corning about the Bayer Chemical Start-up Initiative, tive” – a term developed market launch. company’s business model and how by the firm Innosight about promoting innovation and how which helps companies How does Germany com- it has affected business. new companies fare in Germany com- powered BY understand and over- pare with other countries Eric Peeters come disruptive innova- pared with the rest of the world. Dr. Volker Wege in terms of the opportu- CHEManager Europe: Mr. Peeters, Executive director sealants and adhesives, tion challenges – is that Manager of the Bayer Chemical Start-up nities it offers for start- Dow Corning has incorporated Core Products Business at Dow Corning it could have competed CHEManager Europe: Dr. Wege, Initiative ups? what is described as a “disrup- with Dow Corning’s tra- when Bayer Industry Services tive” business model. What does tomers based on their differ- ditional, premium offering. So launched its start-up initiative V. Wege: The economic baro- V. Wege: The conditions are that mean? ent needs. That showed clearly differentiating the two brands about four years ago, Germany’s meter is definitely showing an actually excellent in Germany there was a market segment was critical. In addition, it was reputation as an industrial loca- upwards trend for Germany at because of the country’s inno- E. Peeters: Several years ago, we were not serving sufficiently the first time such a business tion was not that good. Has the the moment, but actually, Ger- vation-oriented structures, such we conducted a study that – price-seeker customers. So we country’s reputation improved many has always been an ideal looked at segmenting our cus- created a web-based business E Continues Page 15 since then? location for a chemical-related E Continues Page 10

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G· Fee paid · D 12264 e paid · D 12264 G· Fee Plant Planning and Construction Components for plant construc- Pumps and Compressors Send an e-mail to a Pharmatechnology tion and apparatus engineering Maintenance lisa rausch at · PF 11 05 64 · 64220 Darmstadt 05 64 · 64220 G · PF 11 Thermal Process Technology Process Automation Mechanical Process Technology l.rausch@ gitverlag.com Pressepost · DP GIT Verla

[email protected] page Markets & coM panies CHEManager Europe 4/2007

Content

Front page eco-efficiency analysis of colorant systems �� 8 Learning to share Data�� 14 More Sustainability by Using Modern Management Tools Opportunities and Obligations under Reach Matthew Curl, TSG Europe Market report �� 1, 3 Dr. Peter Saling, BASF Japanese Pharma Market a small Business perspective �� 14 PriceWaterhouseCoopers shear-free Dispersion process �� 8 Technology Transfer between Academia and Industry Eliminating Agglomerates from Batches Victor P. Janule, SensaDyne Instrument Division Young company, Big plans �� 1, 4 Peter Schertenleib, Netzsch-Feinmahltechnik The Arkema Group Has Set the Bar High the clock is running �� 15 Interview with Bernhard Boyer, Arkema The Impact of Reach on Coating Suppliers Mineral Fibre insulation Goes Green �� 9 Dr. P.K.T. Oldring, The Valspar Corporation new Dynamic Growth �� 1, 10 New Acrylic Binder Exemplifies Environmentally Start-ups Needs Innovation Not Administration Advanced Technology Interview with Dr. Volker Wege, Bayer Industry Services Guy Clamen, Rohm and Haas France S.A.S. chemicals 16

‘Disruptive’ Behaviour�� 1, 15 Journey to the copper age�� 16 – 17 Dow Corning’s Innovative Business Model Advances in Dual Damascene Copper Deposition Technologies Businesspartners 10 Interview with Eric Peeters, Dow Corning Robert Preisser, Atotech

chemical Distribution 17 Markets & companies 1 – 6 reach 11 – 16

More For Less �� 17 portfolio �� 4 Brave new World �� 11 Comments on the Chemical Distribution Consolidation Trend Deep Innovation Post-Reach Marc Fermont, Districonsult teammates as Well as targets�� 5 Richard Miller, Chemistry Innovation Knowledge Transfer Network A Case for Rethinking Pharmaceutical eStrategy Matthew Dick, Datamonitor pharma 18 reaching a Dialogue �� 1

What am i Bid? �� 6 Communication Important Between Suppliers and Downstream the German Drug Market �� 18 Intellectual Property to be Auctioned Off in May Users of Chemical Substances Reforms Could Endanger Pharmaceutical Innovation Interview with Manfred Petri, IPA Dr. Siegfried Wallat, Cognis Deutschland GmbH & Co. KG Dr. Timm Volmer, Wyeth Pharma GmbH

stuck in the Middle �� 1 – 13 people · events · awards 19 production 7 – 10 Impact of Reach on Mid-sized Companies Importing from Outside the EU Under construction �� 7 Dr. Heiko Thoms, Lehmann & Voss & Co. KG at a Glance 0

Dispersing nanosized particles�� 7 index �� 0 Characterisation of Different Machines Be prepared �� 13 Prof. Dr.-Ing. Arno Kwade, TU Braunschweig TÜV Rheinland Certificate for Good Reach Preparations at Biesterfeld imprint�� 0

Dow Chemical Fires Two Senior Executives Chemtura Announces Restructuring

Dow Chemical said it has fired talks. Dow spokeman Chris US-$50 billion, the company Chemtura Corporation an- Additives and Flame Retard- competitive position,” said two executives, including the Huntley said Reinhard will reiterated that Dow has had nounced that it is implement- ants business units and will be Robert Wood, chairman and send your former finance chief, who it remain on the board until a no talks to be acquired. ing an industry-based business led by Anne Noonan; Perform- chief executive officer. “As we said had held unauthorised vote by shareholders on his Dow said it had received model in order to improve ance Specialties, which will evolve from a functional to an article ideas to discussions to sell the composition. information about the actions performance and accelerate include the former Petroleum industry-focused commercial Kreinberg, who is accused of the executive and the board Additives, Urethanes, Opti- organisation, we will present of “conspiring with banks member from a source, whom cal Monomers and Fluorine a more coordinated face to the cHeManager and foreign governments to it would not identify. “These Specialties and will be led customers and have better acquire the company” deined by Bob Wedinger; Consumer insight into their current and e urope team the charges. He told The As- future needs. The market- sociated Press, “The behavior place has been very clear in “We will present of the company is very unu- “We are greatly defining what constitutes a sual, and the accusations have a more coordi- preferred, valued-added sup- absolutely no substance and saddened by the plier and our business leaders are highly damaging to my nated face to cus- will be accountable for part- reputation after 30 years of disrespect shown Robert Wood nering with customers to meet Chemtura CEO Andrew Liveris employment.” those demanding standards.” Dow CEO tomers and have “The values of integrity by our former growth. By focusing on end- Organisational streamlin- and respect for people are colleagues.” use markets, the company better insight into ing is expected to result in a pany. A board member, Pedro at the very core of our com- said it will be better able to reduction of the company’s Reinhard, who retired as chief pany,” said Andrew Liveris, serve current customer needs, their current and global workforce by approxi- financial officer in 2005 after Dow chairman and CEO. “I anticipate their future re- mately 10 % (620 positions), Brandi Hertig schuster 10 years, and Romeo Krein- think I speak for all employ- employees went to great quirements and target rapidly future needs.” resulting in an annualized cost editor-in-chief berg, executive vice president ees when I say we are greatly lengths to hide this from us,” growing industry segments. reduction of approximately tel.: +49 6151/8090-186 of performance businesses, saddened by the disrespect Huntley said. “We have no Chemtura will simplify its Products, led in the interim US-$50 million beginning in [email protected] “were engaged in business shown by our former col- idea in terms of what their financial reporting structure by Kim Nicholson; and Crop 2008. The company expects activity that was highly in- leagues.” motivations were.” from the current six units to Protection, led in the interim to record charges related to appropriate,” Dow Chemical Despite speculative re- four, as shown on the attached by Greg McDaniel. the restructuring in the range said. ports that U.S. buyout firms organization chart, each led “We are excited about of US-$25 – 35 million. The company said the and Middle Eastern investors by a group president: the impact we expect these board voted to fire the execu- were preparing a takeover bid Polymer Additives, which changes to have on our growth tives after disclosure of the for the company of at least E www.dow.com will include the former Plastic prospects and long-term E www.chemtura.com

Schwarz Pharma, UCB Agree on Compensation ABB Wins US-$110 Million in Marine Orders

Schwarz Pharma’s execu- guaranteed dividend shall ment require approval by the ABB has signed contracts and power-distribution sys- range from late 2007 through tive board and the manag- add up to a gross amount of shareholders’ Schwarz Phar- worth more than US-$110 tems for 19 new vessels be- 2009. Dr. roy Fox ing directors of UCB have €3.43 (net amount: €3.18) ma. The Belgian drug maker million to supply Azipod pro- ing built in Europe and Asia. editor agreed upon the terms and per no-par value share for announced last September pulsion, power-generation Deliveries for the new vessels E www.abb.com € tel.: +49 6151/8090-18 conditions of the domination each full financial year. In that it would pay over 4.4 and profit transfer agreement addition, UCP undertakes to billion for Schwarz Pharma. [email protected] and signed the contract. UCB acquire upon demand the UCB currently holds 87.6 % of CorreC tion said it guarantees the out- shares of any outside share- Schwarz Pharma’s stock. CHEManager Europe 3/2007, Ion Exchange Reins Busi- ance Chemicals business side shareholders of Schwarz holder in return for a cash “A Lanxess Growth Story: ness Unit makes up roughly unit, not for the entire com- € Pharma an adequate guaran- compensation of 104.60 Turnaround after Successful 10 % of the overall turnover pany. CHEManager Europe teed dividend in the form of a per share. The domination E www.ucb.com Portfolio Adjustment.”: The for the Lanxess’ Perform- regrets this error. recurring cash payment. The and profit transfer agree- E www.schwarzpharma.com

[email protected] CHEManager Europe 4/2007 MarketS & CoM panieS page

Market r eport Japanese Pharma Market

E Continued page 1 companies can market their drugs in cheaper generics. However, drugs Several leading foreign generics chemicals and food and beverage the Japanese affiliate which plays Japan without operating their own currently account for about 20 % of producers certainly seem to think sectors selling off their pharmaceuti- the bigger part in determining a a showing that far surpassed the lev- production facilities. the Japanese National Health Insur- that the climate will soon become cals divisions to concentrate on their foreign company’s success. Lastly, el of growth in Euroland (fig. 1). The In April 2004, the system for reg- ance scheme’s total expenditure, and much more favourable. In November core activities and increasing private while it is important to be attuned 44 % rise in the Nikkei Index since ulating drugs was also overhauled. the government is eager to promote 2005, for example, India’s Ranbaxy equity participation in the area. In to Japanese culture, foreign firms January 2005 reflects this improve- The three main regulatory agencies the use of generics. Laboratories increased its stake in the short term, this may boost the should never try to be more Japa- ment in Japan’s prospects, and most – the Pharmaceuticals and Medical In July 2005, the MHLW proposed Nihon Pharmaceutical Industry, a competition for attractive targets, nese than the Japanese. economists believe it has now turned Devices Evaluation Centre, Japanese a scheme under which patients could joint venture with Nippon Chemi- but in the longer term it should gen- the corner. The OECD predicts that Association for the Advancement of choose generics rather than brand- phar, and is clearly positioning itself erate further merger and acquisition Conclusion the economy will grow 2.5 % this Medical Equipment and Organisa- name drugs, if the prescribing doc- to capitalise on the expansion of the opportunities as financial investors year, while the International Mon- tion of Pharmaceutical Safety and tor ticked a box on the prescription generics space. seek to realise their profits. In short, Japan cannot be described etary Fund forecasts an increase Research – were merged to form a Conversely, for companies with as an emerging market in any con- of 2.7 %. With the appointment of single administrative body, which Tapping Into the Japanese Market healthy pipelines which have already ventional sense; on the contrary, new Prime Minister Shinzo Abe in is responsible for all clinical test- The Japanese established a presence in Japan the it is one of the strongest and most September 2006, any fears that old- ing consultation, drug reviews and So how should foreign pharmaceuti- potential for organic growth is now highly industrialised countries in the guard politicians and entrenched approvals, and postmarketing sur- pharmaceuticals cal firms set about entering Japan considerable. Most of the multina- world. But for many Western drug business interests might impede the veillance. or securing a stronger footing there? tionals began by out-licensing or manufacturers, it still represents country’s economic progress have One of the primary aims of the market is expected to We believe that, for all the cultural co-promoting products – largely comparatively new ground. That also been put to rest. Abe has already new Pharmaceutical and Medical difficulties associated with acquisi- because, until 1985, foreign compa- ground is becoming increasingly indicated that he intends to continue Devices Agency (PDMA) is to accel- grow quite slowly over tions, new market entrants would nies could not file new drug applica- attractive, with the removal of the the fiscal reforms instigated by his erate the approvals process. In 2003, do better to buy than to build – and, tions. Some of the industry leaders obligation to manufacture locally, predecessor, Junichiro Koizumi. the average time from submission to the next few years. preferably, to focus on niche areas. have since set up joint ventures or the introduction of a faster system approval of a new chemical entity Over the past few years, there has wholly-owned subsidiaries, and the for approving new drug applica- A Large Pharmaceuticals Market was about 19 months in Japan, com- been a marked trend away from most successful firms have typically tions, the promise of better prices pared with an average of about 12 stating that generic substitution mega-companies covering every line been those that focused on mar- for truly innovative drugs, govern- Despite the economic difficulties months in the U.S. and Europe. By was permissible. This scheme has of business; this is especially true of keting novel therapies rather than ment interest in promoting generics of the past decade, Japan remains 2009, the PDMA plans to review 80 % now been adopted, although most the biopharmaceuticals arena. So, trying to compete in overcrowded and an aging, educated population one of the wealthiest countries in of all new drugs within 12 months. It doctors will take some persuading although some opportunities for therapeutic areas. with high healthcare expectations. the world, with GDP per capita of also intends to introduce a fast-track to use it. The MHLW also plans to broad alliances like the joint venture It is also essential for such com- However, any company that wants US-$30,400. It also has a highly process for reviewing new drugs improve generic supplies by making between Roche and Chugai still re- panies to develop a strategy that in- to do business in Japan should be developed healthcare system pro- with significant clinical benefits. the manufacturers produce the same main, there are now greater oppor- tegrates their Japanese operations aware of the political and legal viding universal coverage, both fac- These improvements will make range of dosing strengths as those in tunities for deal-making at the more with their remaining activities, and restrictions and sensitive to differ- tors which help to explain why the it easier for multinationals to bring which the original brands are avail- specialised end of the spectrum. to drive that strategy from the top, ent cultural mores. market for prescription products is their products to market, and max- able, rather than cherry picking the We expect this trend to continue, since it is the strength of the corpo- second only to that of the U.S. The imise the sales they generate before most popular formulations. with a number of companies in the rate head office rather than that of E www.pwc.com latest figures from IMS Health show the patents expire. Moreover, the that, in 2005, the Japanese pharma- potential backlog of new drugs is ceuticals market reached US-$60.3 huge. According to IMS Health, only billion and saw its highest year-on- 48 of the 168 new chemical entities year increase since 1991, with sales launched worldwide between 2000 rising 6.8 %. and 2004, and showing December Demographic trends will play a 2004 sales, had been approved in large part in boosting future sales. Japan. The United Nations Population Divi- sion predicts that the population will Growing Western fall from 128 million to 112.2 million Pharmaceutical Presence over the next 45 years. The propor- ”Think before you act” – that’s how the tion of the populace aged 65 or more A growing number of Western saying goes. And by doing just that and by will rise from 19.7 % to 35.9 % over pharmaceutical firms have already the same period – thanks to an aver- responded to this more liberal en- listening to its customers, Uhde succeeds age lifespan of 82 years, the highest vironment by increasing their pres- in providing optimum solutions tailored to in the world. ence in Japan. Foreign multination- the individual requirements of chemical and Consumers have also played a als now account for 34 % of the mar- other industrial plants. This means en- large part in sustaining the over- ket, and three of them rank amongst the-counter (OTC) market, which the top 10 drug makers in the coun- suring economical processes, comprehen- was worth nearly US-$10 billion in try, measured by sales (fig. 2). Roche sive service and customer satisfaction at all the fiscal year ending March 2006. was one of the earliest entrants. In times – that's what we call Engineering Although demand for many OTC late 2002, it acquired a 51 % stake in with ideas. The top 10 pharmaceutical companies in Japan Figure 2

Ranking Company Japan sales* Growth %** With an international engineering capacity Japanese market 60,289 7 and over 2,000 plants in more than 60 1 Daiichi-Sankyo 4,107 2 countries to its credit, Uhde is one of the 2 Takeda 3,892 10 3 Pfizer 3,451 6 leading engineering contractors worldwide. 4 Astellas 2,768 0 This worldwide network with over 4,100 5 Roche 2,697 16 employees focuses on the following sectors 6 Otsuka 2,480 7 7 Novartis 2,294 10 of the international plant construction busi- 8 Eisai 2,072 8 ness: fertilisers; electrolysis; gas tech- 9 Dainippon Sumitomo 1,725 6 10 Mitsubishi Pharma 1,538 3 nologies; oil, coal and residue gasification; Total top 10 27,024 organic intermediates, polymers and Total others 33,265 synthetic fibres; and also coke plant and Note: * 12 months Q4 2005 (US-$bn) ** at fixed rate 12 months Q4 2005 Source: IMS Health high-pressure technologies.

products has stagnated for the past Japanese pharmaceuticals manufac- four years, sales of vitamins, dietary turer Chugai, which merged with its We offer our customers not only cost- supplements and beauty/health- local subsidiary, Nippon Roche. The effective high-tech solutions in industrial care goods targeted at middle-aged move propelled Roche into fourth plant construction and the entire range of women have completely bucked this place in the Japanese market. But services associated with an EPC contractor, trend. Pfizer, Novartis and Merck have also The Japanese pharmaceuticals invested heavily; and AstraZeneca, but also comprehensive service packages What exactly is market is expected to grow quite Johnson & Johnson and Eli Lilly Ja- for the entire life cycle of their plants. slowly over the next few years. Da- pan are rapidly moving up the league tamonitor estimates that it expanded table, on the back of strong sales. ”Engineering with ideas”? at a compound annual growth rate Just how serious the industry of just 1.8 % between 2001 and 2005, leaders are is clear from the size of and predicts that the rate of growth their sales forces; IMS Health reports Visit us at will slow down still further over the that the top five foreign companies next five years, bringing the market had a combined Japanese sales force to $70.8 billion by the end of 2010. of 9,030 in early 2004, compared with 6,500 for the top domestic Beijing/China, 14-18 May New Regulations For Old manufacturers. Hall 3, Stand G13

But though the Japanese market Opportunities For Generics Producers may be growing more slowly than many emerging markets, it is also The relatively underdeveloped ge- opening up to a much greater extent nerics market could likewise offer than before. One major turning point some substantial opportunities for was the revision of the Pharmaceu- generics manufacturers. According tical Affairs Law in July 2002. The to the MHLW, generics accounted for key changes, which came into effect just 16.4 % of the Japanese pharma- Uhde GmbH between July 2003 and April 2005, ceuticals market in 2005, compared Friedrich-Uhde-Strasse 15 include new regulations covering with 55 % in the UK, 53 % in the US 44141 Dortmund Germany biologics; the introduction of post- and 41 % in Germany. Uhde Phone +49 2 31 5 47-0 marketing surveillance; and the Two factors explain this poor Fax +49 2 31 5 47 30 32 A company of ThyssenKrupp Technologies amendment of the drug marketing take-up: Many Japanese doctors and manufacturing approval sys- believe that generics are inferior to tem to let companies outsource the branded products; and wholesalers manufacturing process. This last receive rebates that are based on the change is particularly significant, prices of the drugs they distribute, since it means that pharmaceutical so they have little incentive to sell www.uhde.biz ThyssenKrupp

[email protected] page Markets & CoM panies CHEManager Europe 4/2007 Young Company, Big Plans The Arkema Group Has Set the Bar High

E Continued page 1

Arkema was listed on the Parisian stock exchange in May 2006. How has that helped business?

B. Boyer: Our stock market listing has Kemira to Acquire Arkema Business Kemira Water has agreed to acquire considerably accelerated our trans- Arkema’s coagulants business for water treatment. In 2006, the reve- formation. Today, with a new stream- nue of Arkema’s coagulants business for water treatment totaled about lined and decentralized organisation, €19 million. Arkema’s coagulants business for water treatment includes we are more reactive, flexible and three production units located in France and Spain. By this acquisition focussed in the way we run our busi- Kemira said it would improve its market position for coagulants in France ness, we develop the company and we and Spain. This acquisition is subject to information and consultation of serve our customers. Arkema’s personnel representatives and to the approval of the relevant In addition, as an independent antitrust authorities. company we can implement our strat- E www.kemira.com egy at an accelerated pace in order to E www.arkema.com improve our performances, develop the best product lines and create Beckman Coulter to Acquire Biosite Beckman Coulter and Biosite Incorporat- value for our shareholders. ed have entered into a definitive merger agreement under which Beckman Coulter will acquire all of Biosite’s outstanding common stock in a cash ten- How has the stock been performing? der offer of US-$85 per share, or approximately US-$1.55 billion on a fully diluted share basis. The proposed transaction is expected to immediately B. Boyer: Nine months after the spin accelerate Beckman Coulter’s revenue growth, improve operating margins off, the share price has increased and be accretive to GAAP earnings in 2008 and beyond. The transaction is by approximately 40 %. This excel- expected to close in the second quarter of 2007. lent performance is largely due to all E www.beckmancoulter.com the progress accomplished since the Arkema’s site in Changshu, China E www.biosite.com creation of Arkema. The good set of 2006 figures confirms that the trans- In industrial chemicals, we are amides capacity at its Changshu; the relevant is this show for Arkema? Glenmark to Acquire Medicamenta Glenmark, a wholly owned Swiss sub- formation of the company is well on among the global leaders in growing increase is expected to come on stream What are your expectations? Will you sidiary of Glenmark Pharmaceuticals, has concluded a deal to acquire a track. markets for most of our product lines. by September. How important is the present new innovations? majority shareholding of the company Medicamenta. This would be Glen- We definitely want to take advantage Asian market for business? mark’s first commercial foothold in the European market. Under Czech Law, Thierry Le Henaff, Arkemas’s CEO, has of this favourable position to create B. Boyer: We will indeed be exhibit- a holding of more than 90 % shares in a company will trigger a mandatory said the group is considering making value through selective growth. We B. Boyer: Asia is an integral part ing at the K 2007 trade fair with all takeover bid for the remaining shares. Details of the acquisition were not targeted acquisitions over the next two have a number of attractive invest- of our strategy. In addition to the our plastics activities – PVC, PMMA, disclosed. to three years to add €500 – 800 mil- ment opportunities in this segment announcements regarding perform- technical polymers, functional addi- E www.glenmarkpharma.com lion of sales. What markets would be to either expand the capacity of our ance polyamides, we started up an tives). K2007 will give us the oppor- interesting for Arkema? best sites in Europe and in the U.S. or organic peroxides production unit in tunity to showcase new applications 3M to Acquire E Wood Holdings 3M and E Wood Holdings PLC announced an create new capacity in Asia. In both 2005, and we have increased by 50 % in PMMA, in particular for flat televi- offer to acquire the entire issued and to be issued share capital of E Wood B. Boyer: We are thinking of small- cases we see a good potential even if our production capacity in fluoro- sion screens. We will also have new Holdings, a North Yorkshire, UK-based manufacturer of high performance to medium-size targeted acquisitions, the approach will remain selective. chemicals at Changshu. We are also developments in technical polymers, protective coatings for oil, gas, water, rail and automotive industries. The in particular in the downstream of In performance products, the key in the process of doubling our H2O2 in particular in Rilsan and Pebax board of E Wood has recommended the offer to E Wood shareholders. The industrial chemicals, such as acryl- objective is to improve profitability. To plant near Shanghai. In January this product ranges. offer values E Wood shares at approximately US-$78 million. 3M has offered ics and fluorochemicals, and in high- this end we are rolling out a strategy year, we announced the signing of a US-$6.28 per E Wood share. The transaction is expected to close in April, added value technical polymers or based on a combination of innovation, memorandum of understanding with What do you consider to be the greatest subject to customary closing conditions, regulatory approvals, and obtaining specialty chemicals. The objective is selective growth, restructuring and the Indian group ESSAR with the challenges facing the European chemi- the requisite E Wood shareholder acceptances. to reinforce the best product lines of portfolio management. The progress objective to build a world-scale acryl- cal industry in the next decade? E www.3m.com Arkema, reduce the cyclicality of its already accomplished in 2006 shows ic acid production plant in India. E www.ewoodholdings.com portfolio and move toward less capi- that we are well on track to transform Asia represents today 13 % of Arke- B. Boyer: The European chemical tal-intensive businesses. Given the this business segment and improve its ma’s sales, and 8 % of our employees. industry has always been confronted Roche to Acquire THP Roche has acquired Therapeutic Human Polyclonals ongoing disposal of non-core assets profitability. We will continue to increase our sales to many challenges and opportuni- (THP) a privately-owned biotechnology company based in California and and our capacity to generate cash we significantly in the next few years. We ties. Today, in order to be successful Germany. The company paid US-$56.5 million in cash to acquire 100 % are confident to achieve this acquisi- Tell us about the reorganisation of are planning to spend over the next in the long term, the industry will ownership of THP and plans to fully integrate THP into the Roche Pharma tion plan without downgrading the activities in Rhône-Alpes and Arkema’s three years around €50 million per have among other things to adapt Centre of Excellence for Protein Research in Penzberg, Germany. quality of our balance sheet. ambition to turn it into a competitive year in capital expenditures in Asia. to a high pricing environment for E www.roche.com European site in fluorochemicals. energy and raw materials, to take The company is made up of three busi- Where do you see future markets? advantage of sustainable develop- Solvay Acquires Quality Plastics Pipelife, Solvay’s 50:50 joint venture with ness units: vinyl products, industrial B. Boyer: The main issue at Pierre- What are your activities in the Mid- ment opportunities, to deal with Wienerberger, has acquired Ireland’s Quality Plastics, a manufacturer of chemicals and performance products. Bénite was a lack of competitiveness east, for example? more and more stringent regulations, specialty pipes and fittings. Pipelife intends to serve clients with these prod- In which area do you see the most in our fluorochemicals upstream and to preserve its competitiveness ucts and technologies throughout Europe. Quality Plastics operates two potential? Where are investments activities. Our objective today is to B. Boyer: Obviously in Europe and in especially in front of emerging low factories near Cork in Ireland achieving sales of €42 million with 174 em- being made? focus on profitable activities, fluoro- the U.S. we are focusing on the most cost producers. ployees in the latest business year. chemical intermediates and down- promising product lines and markets We are convinced that Arkema has E www.solvay.com B. Boyer: For the vinyl products, our stream products, for which we have to grow our business. Regarding the right assets, resources and strat- E www.wienerberger.de strategy is to reduce the cost base and a strong development potential. emerging markets we are concentrat- egy to face these challenges and we improve the overall competitiveness. Investments are planned to improve ing our efforts on Asia and in particu- are confident in its capacity to meet Akzo Nobel Sells MACC Unit to Balchem Akzo Nobel has agreed to sell its All the investments in that segment processes and industrial reliability, to lar China and India. In other emerg- the objectives which have recently Methylamines and Choline Chloride (MACC) unit to the New York-based Bal- are dedicated to the on-going restruc- rationalise existing equipments and ing economies we will have a selective been set for 2010. chem Corporation for an undisclosed sum.The deal completes Akzo Nobel’s turing plan. We are confident in the to optimise energy consumption. and opportunistic approach. chemicals divestment program. Balchem Corporation’s European subsidiary, improvement of EBITDA margins but Balchem, BV, will acquire MACC, which is located in Marano Ticino, Italy. have no plan to expand our existing Arkema has announced that it will Other large plastics producers won’t Under the terms of the deal, MACC’s operations in Marano and approxi- capacity. double its high performance poly- be participating in the K 2007. How E www.arkema.com mately 80 employees will be transferred to the new owner. E www.akzonobel.com E www.balchem.com Linde Sells Business to Airgas Symrise Alliance with Brain, AnalytiCon Cerep Agreement with Lilly Renewed for 2007 Cerep has renewed its scientific agreement signed with Eli Lilly and Company for the year 2007. The Linde Group has signed a defini- The business to be divested had Symrise, a fragrance and flavour- cosmetics. Financial details were not This collaboration agreement was originally signed in 2003. Through this tive agreement to sell its packaged sales of US-$346 million and EBITDA ings supplier, said it has entered a disclosed. agreement Lilly will continue to utilize Cerep’s extensive experience in high gases business with retail stores in the of around US-$36 million in the finan- strategic partnership with biotech throughput compound profiling to enhance the fundamental understand- U.S. to the industrial gases company cial year 2006, with a workforce of specialists Brain and AnalytiCon Dis- ing of the relationships between chemical structure and biological activity. Airgas Inc. at an enterprise value of approximately 1,400. The closing of covery. The partnership will allow E www.symrise.com Financial terms are not disclosed. US-$310 million. Linde will retain the transaction is subject to regula- Symrise to expand its development E www.brain-biotech.de E www.cerep.fr certain packaged gases accounts re- tory approval and customary condi- of new active ingredients for use in E www.ac-discovery.com E www.lilly.com lated to its independent distributors, tions. including acetylene production sites Biesterfeld Petroplas to Distribute Ineos Products Biesterfeld Petroplas, UK, and filling plants. E www.linde.com as with immediate effect has been appointed by Ineos as its Distributor for EnBioTec, Peakdale Enter Agreement LDPE and LLDPE for the mainland UK market. Biesterfeld Plastic Germany Peakdale Molecular (UK) has entered able to distinguish between agonist is Ineos Polyolefins’ largest European distribution partner. The distributor Aspectrics, Thermo Fisher Collaborate into an agreement with EnBioTec and antagonist compounds. Peakdale offers Ineos products in continental European markets including France, Laboratories (Japan) to co-develop Molecular will provide a targeted set Aspectrics has entered into an exclu- cient alternative to traditional NIR Germany, Spain, Portugal, Austria, Switzerland, Italy and Central Eastern nuclear receptor based lead com- of compounds for RCAS and function- sive agreement with Thermo Fisher systems, with a spectral range ex- Europe. Biesterfeld extended its reach into the UK in March 2006 via a pounds for drug discovery. EnBio- al assay testing and will work with Scientific to seamlessly integrate tending further than the common 50:50 JV with the former Petroplas. The objective was to offer products and Tec Laboratories has developed the EnBioTec to custom synthesize novel Thermo Scientific GRAMS spec- 2,100nm and achieving a range of services to the UK Polymer Industry, which is the fourth biggest polymer Receptor Cofactor Assay System compounds based on the subsequent troscopy software with Aspectrics’ 1,375 – 2,750 nm. market in Europe. (RCAS) to investigate the interactions test results. Encoded Photometric Near Infra- E www.biesterfeld.com between nuclear hormone receptors, red (EP-NIR) process analyzers. Ac- E www.ineos.com co-factors, and ligands. The system E www.peakdale.co.uk cording to the company, Aspectrics’ E www.aspectrics.com is cell-free, highly sensitive and is E www.enbiotec.co.jp/en EP-NIR analyzers offer a more effi- E www.thermo.com HPD to Supply for MagMinerals HPD has been selected to provide evaporation and crystallization technology for the Kouilou Potash Project located in the Republic of Congo, 15 kilometers from the Atlantic port city of Pointe- Givaudan, ChemCom JV for Research Parker Hannifin Acquires Rectus Noire. The project, which will produce 580,000 t of potash per year, is owned by MagMinerals, a wholly owned subsidiary of MagIndustries of Toronto, Givaudan has entered into a joint sensory innovation and technology Parker Hannifin, producer of motion (U.S.), its TEMA operation in Skovde, Canada. The production process will produce potassium chloride from venture agreement with Chemcom, platform by creating a unique center and control technologies, has acquired Sweden and several international solution-mined carnallite. HPD will provide a brine concentration system a company in the field of olfactory of expertise combining biotechnology Rectus, manufacturer of quick discon- sales offices. Rectus’ revenues were to reconstitute the carnallite directly from solution mining operations. The receptor technology. The new com- and leading fragrance expertise and nect couplings and related products approximately US-$115 million in concentrated carnallite will then be processed in a five-stage crystallization pany, named TecnoScent, will build experience. for pneumatic, hydraulic, medical 2006. Earnings are expected to be system that shall produce the expected capacity of 580,000 t/y potash to the on ChemCom’s proprietary receptor and chemical processing applications. accretive to Parker in the first full quality specified by MagMinerals. technology and focus on the discov- The company employs approximately year. Terms of the deal were not dis- E www.hpdsystems.com ery and development of innovative 380 people worldwide including its closed. E www.magindustries.com fragrance ingredients. This part- E www.givaudan.com headquarters in Nussdorf, Germany, E www.parker.com nership shall strengthen Givaudan’s E www.chemcon.be its Nycoil operation in Randleman, NC E www.rectus.com

[email protected] CHEManager Europe 4/2007 MARKETS & COMPANIES Page 5 Teammates as Well as Targets A Case for Rethinking Pharmaceutical eStrategy

n developed healthcare markets Millions of Internet Users then why have pharmaceuti- dors aim for what is possible Can’t Be Wrong cal eStrategies not been more instead of what is feasible giv- such as the U.S., western EU and effective? Generally speaking, en the way doctors and nurses Japan, it may soon become easier If designing an effective mar- there is a failure to truly focus work.” I keting strategy is indeed a on the needs of the end user, Towards this end, pharma- to find a primary care doctor who numbers game, then the 211 O’Malley says. “High-quality ceutical companies need to does not own a stethoscope than to million internet-users in the online content that is targeted work more closely with health- U.S. should translate into sure towards groups of physicians or care professionals to develop find one who does not have access to success. However, the nature of consumers is being developed. online content and services the internet. While slower to develop the internet – as a pull rather However, the true advantage of that make sense not only for than a push medium – has prov- the internet over other chan- prescribers, but also for the online strategies than many other en to be a significant barrier nels of communication is that patients they are caring for. industries, pharmaceutical companies for the pharmaceutical indus- brand teams can move beyond In fact, there is a significant try. With internet penetration reaching groups of individuals opportunity for pharmaceuti- ultimately recognised the potential of rates among the general popu- to build a relationship with the cal companies to build brand the internet to reach prescribers and lation ranging from 60 – 70 % individuals themselves through loyalty by investing in disease in the U.S., the UK and Japan, tailored information and serv- management and compliance patients. Many major pharmaceuti- the internet has created a con- ices online.” programs. Physicians are very cal manufacturers created dedicated sumer who demands not only At the core of every unsuc- interested in expanding their more sophisticated informa- cessful online campaign is a use of disease management eBusiness teams and nearly all invest- tion, but also a bigger role in failure to meet the needs of the programs, O’Malley says, how- ed heavily in exploring the potential how that information is applied end-user, she says. “The central ever few have the time or the to their lives. While physicians goal has to be to make it easier resources necessary to design of Web-enabled sales practices such are still the ones making the for individuals to either gather or support their own programs as eDetailing and eSampling. final decision about whether information or make a decision. on an ongoing basis. “The in- to prescribe a specific drug, As a result, the knowledge gap positive effect on clinical out- tle chance of being heard. “On Although it is hard to believe, dustry should work closely with However, as highlighted in a Datamonitor finds that physi- between healthcare profession- comes.” the other hand”, O’Malley said, it has only been very recently physicians to design programs recent report from independ- cians now report that patient als and patients has decreased. A key point to remember “if the information provided by that brand teams have begun to that focus on enhancing patient ent market analyst Datamoni- requests for specific medica- Empowered with greater access in the face of several years of a company does meet a specific really consider the needs of the compliance, which everyone tor (DTM.L), reaching target tions at the point-of-care are as to information and educa- disappointing returns on invest- need, it is growing increasingly individual in front of the com- benefits from. There is a lot audiences online has proved influential as office visits from tion, patients have begun to ments (ROIs) is the fact that the likely that consumers will take puter screen.” to be gained by treating physi- to be more problematic than pharmaceutical sales repre- play a more significant role in internet is actually highly influ- that information to the physi- We see a very similar pat- cians as teammates in patient planned and few companies sentatives. the healthcare decision-mak- ential. To be successful brand cian during an office visit, which tern in the healthcare technol- care instead of solely as sales achieved the expected return The patient-physician re- ing process. While initial pre- teams must keep in mind that may impact the physician’s pre- ogy industry as well, O’Malley targets.” on their initial investments. lationship is rapidly evolving, dictions warned that patient not only are web users highly scribing decision.” says. “Take electronic health Despite this, a strong case with dramatic changes due empowerment would ultimately goal-driven, but the goal they records systems, for example. can be made for moving for- to increased internet-access undermine the medical estab- have is rarely the same as the Failure To Focus Most healthcare professionals ward with a pharmaceutical becoming increasingly evident lishment, it appears that the company that wants to reach would agree that electronic eStrategy, particularly in the in the last few years. Online in- opposite is true, O’Malley said. them. You can have a highly If consumers are looking for records are needed in order  Contact: U.S., said Datamonitor senior formation has permanently al- “The level and quality of inter- effective drug and the right information pertaining to their to improve patient safety and Matthew Dick analyst Kimberly O’Malley, pro- tered the patient-physician re- actions between patient and patient clicking the mouse, but health online and pharmaceu- modernize the delivery of Datamonitor vided that the pharmaceutical lationship by enabling patients physician has improved which if the message you deliver fails tical companies are investing healthcare; yet adoption rates Tel.: + 44 20 7675 7824 industry is willing to rethink its to become better informed has, in turn, both enhanced to answer his or her specific in providing online disease- remain surprisingly low. The [email protected] approach. about their healthcare options. patient satisfaction and had a information needs you have lit- and drug-focused content, problem is that software ven- www.datamonitor.com

DuPont, Honeywell Enter JV Dow, Chevron Phillips Chemical Form Styrenics JV DuPont and Honeywell an- potential (GWP) refrigerants ly identify, develop, test and HFC-134a mobile air condi- The Dow Chemical Company necessary approvals, the par- polystyrene plants (Gales Fer- nounced a global joint develop- in mobile air conditioning (AC) qualify new low GWP refrig- tioning system technology and and Chevron Phillips Chemi- ties would expect the transac- ry, Connecticut; Ironton, Ohio; ment agreement to accelerate applications. Today’s automo- erants that are cost-effective offers a more cost- effective cal Company LP have signed a tion to close in the second half Joliet, Illinois; Torrance, Cali- the development and commer- tive air conditioners use hy- alternatives to other technolo- industry transition versus CO2 non-binding Memorandum of of 2007. fornia; Cartagena, Colombia; cialization of next generation, drofluorocarbon (HFC)-134a. gies being considered by the technology. Understanding relating to the The 50:50 joint venture is and Guaruja, Brazil). Chevron low global warming refriger- The new regulation is sched- auto industry. Automakers are formation of a joint venture expected to establish the com- Phillips Chemical intends to ants for the automotive air uled to take effect in 2011 for currently evaluating mobile AC involving assets from their poly- petitive model for an integrat- contribute a styrene monomer conditioning industry. The new model automobiles, with systems that use such technolo- styrene and styrene monomer ed producer of polystyrene in plant (St. James, Louisiana) and new refrigerants would enable the transition complete by gies. Ideally, automakers are businesses in the Americas. The the Americas. Subject to due a polystyrene plant (Marietta, automakers to meet new regu- 2017. seeking a commercially viable new venture is subject to cus- diligence, the parties intend to Ohio). lations in Europe that require Under the agreement, Du- fluorinated gas solution that is  www.dupont.com tomary regulatory review, due contribute the following assets the use of low global warming Pont and Honeywell will joint- compatible with conventional  www.honeywell.com diligence, completion of defini- to the venture. Dow intends to tive agreements, and corporate contribute: a styrene monomer  www.dow.com and other approvals. Upon the plant (Camacari, Brazil) and six  www.cpchem.com EU Introduces Import Tariffs

The EU has imposed tariffs of as the European Commission, EU ing chemicals to shield higher- CHEManager Europe welcomes high as 67.4 % on imports from peroxosulfate producers that cost producers in Europe. The two new members to its team: the U.S., China and Taiwan of also include RheinPerChemie bloc uses anti-dumping duties a chemical used for treating suffered “material injury” to try to prevent imports from water and metals, seeking to as a result of a “substantial undercutting European manu- Lia Feldmann protect German manufactur- increase” in imports at „very facturers. Bloomberg also reported that China, Taiwan and the U.S. increased their combined share of the EU peroxosulfate market to 30.2 % in the 12 months through last June from 22.6 % in 2003. China expanded its hold on the European market to 14.9 % from 8.3 %, Born on 2 April to Lana Feldmann, CHEManager Europe assistant Taiwan increased its share to 5.9 % from 5.3 % and the U.S. raised its share to 9.3 % from 9 % percent over that period, Simon Washburn the commission said. The six- month anti-dumping duties follow a dumping complaint last May by Cefic and an inves- tigation begun last July by the commission. Under EU rules, ers, including Degussa. The low and dumped prices“ from the commission can introduce EU has accused U.S., Chinese the U.S., China and Taiwan. provisional anti-dumping duties and Taiwanese peroxosulfate The levies, which are 22.6 % for six months. exporters – including FMC and against Taiwan and as much Born on 3 April to Birgit Washburn, CHEManager Europe editor DuPont – of price dumping. as 67.4 % against China, are – compiled from wire reports The duties, which amount to in effect. 39 % against FMC and 10.6 % According to a report from against DuPont, are for six Bloomberg, the EU is seeking to months and may be prolonged stem imports from around the for five years. According to world of commodities includ-  www.europa.eu )43 .)#% 4/2%-%-"%2!,,4(%4().'3 9/5#!../7 Bayer Schering Buys Novartis Plant Bayer Schering Pharma said it ing Novartis current royalties will manufacture it for Novartis #OMPLIANCE -ANAGEMENTFROM4ECHNI$ATA &/2'%4 bought a U.S. biologics plant on Betaseron (interferon beta- beginning in 2009, receiving in from Novartis. The plant is lb) from October 2008. Bayer return double-digit royalty pay- currently used to make mul- Schering also said it will allow ments from Novartis. 4HENEXTSETOFRULESANDREGULATIONSISJUSTAROUNDTHECORNER)NFACT ITSOFTENCLOSERTHANYOUTHINK tiple sclerosis drug Betase- Novartis to develop its own 4HEPENALTIESARECONSIDERABLEFORCOMPANIESTHATDONTKNOWALLTHEREGULATIONSOREVENVIOLATEONE ron; the deal is worth around brand of interferon beta-lb. BUTCOMPLIANCESOLUTIONSFROM4ECHNI$ATASTOPITGETTINGTOTHATSTAGE/URBUSINESSCOMPLIANCE € SERVICES FOR ENVIRONMENT HEALTH AND SAFETY ENSURE THAT YOUR COMPANY REMAINS ON TRACK )N FULL 110 million. Under the deal, Once the new brand is approved  www.bayer.com COMPLIANCEWITHALLREGULATIONSINFORCE!NDWITHYOURSUCCESSINFOCUSWWWTECHNIDATADE Bayer Schering will stop pay- by regulators, Bayer Schering  www.novartis.com

[email protected] page Markets & CoM panies CHEManager Europe 4/2007 What Am I Bid? Intellectual Property to be Auctioned Off in May

hat will take place on is the main target – the main It worked perfectly. We wanted range of customers we want to to make it very clear that this is 15 May in Munich, have. not a platform for somebody to Germany, is something test the market. W What countries will be partici- relatively new to Europe: an auction pating in the auction? How much money can somebody for patents, licences and trademarks. get for a patent? M. Petri: We’ve done some Over the past years, intellectual research and marketing in M. Petri: As much as the mar- property (IP) ownership rights have countries like India, China ket is willing to pay. and Southeast Asia. We have become more and more important for seen a huge amount of interest I can’t even imagine where that global business. The IP Bewertungs especially in China, and we cer- would begin. Can you give me a tainly expect some companies ball park figure? AG – a European IP service provider from China to participate in the – recognised this trend and founded auction. M. Petri: I could give you a couple of examples of how the pric- IP Auctions (IPA). IPA will be con- Dr. Manfred Petri Is there an overview of what ing, especially the first calling ducting the auction in May with the IPA’s general agent countries are selling patents? price, is calculated. If the seller customers. In Europe, there is Can you say that there is a defi- sets a reserve price, then the goal of commercialising first-class traditionally a certain reserve nite group from one country or first calling price is more or less IP rights through auctions The auc- against auctioning patents, is it pretty much spread over defined by the reserve price. If which is why we decided to sell Europe? the seller does not have any idea tion will feature patents from many patents of European origin to what his patent is worth, it starts fields, including mechanical engineer- an international audience. This M. Petri: Here we have to make at a minimum of €25,000. And makes a big difference, and it a differentiation. Individual in between there is everything ing, process automation, IT, chemical takes some time to build up a inventors are coming from the possible. The sky’s the limit. engineering and life science. Brandi customer base internationally U.S. and Europe. Research for IP rights. This is also one institutes are coming from Ger- There is also opportunity for Schuster spoke to Dr. Manfred Petri, of the major reasons why we many only, and then we have interested parties to do due dili- IPA’s general agent, about the auction did not start at the same time the international companies gence, that they can look at the to promote and carry out this like Rolls Royce, like Bayer option documents beforehand and what can be expected from this idea as in the U.S. Patent GmbH. It’s difficult to in order to inform themselves. event. say that something is merely Do you think that this is enough How long has the planning phase German when the inventors for a layperson to estimate the CHEManager Europe: Dr. Petri, been for this auction? are multinational. It is interna- validity and the application were there any legal issues that tional as far as the submitters range of a patent? had to be sorted out to see if M. Petri: The planning phase or as far as the sellers are con- this kind of auction is legal in was rather short – about six cerned. And we are putting a M. Petri: I would not say that Europe? months. It is very important to lot of effort now in getting the a layperson is the normal or create an international basis bidders side. the average bidder. Especially M. Petri: Legal issues were not for these kinds of patents which in the IT area there are very a problem at all. The Ameri- mainly address those who are What are you doing to get bid- specialised people who are in- can auctions so far have been manufacturing and those who ders? What are you doing to gen- terested in these patents. They dealing with U.S. patents to U.S. are providing services. This erate interest in this auction? are experts and these experts have certain questions because they have dug in so deep into M. Petri: We have two ways comes from the fact that Europe the matter. The online due dili- of doing that. The first is an is traditionally is focussed on gence is designed to give them intensive press work. The other these technologies sufficient time to ask the inven- thing is we go there directly. It’s tor or to ask the owner of the Gear up about creating the atmosphere It’s a little difficult to picture an patent his specific questions by press releases, creating the auction for non-physical items. online; therefore, we have a attention and then going to How can we picture what this dialogue on legal and technical for ChemSpec Europe individual companies and ad- auction is going to look like? matters. This is the difference dressing them really one by one between eBay and us. – which is tough work, sure, but M. Petri: Of course we will not with selling stuff is tough work. have any Renoirs or Chagalls What are the advantages of auc- hanging around or antique tioning off these patents like you How has the response been? tables from 17th century Spain; will be doing in May as opposed however we will have a kind of to trading them over the inter- M. Petri: It differs. People in bill board where the lot descrip- net? India are interested, but this is tion is reflected and otherwise it a brand-new concept for them. will be exactly like a Christies’ M. Petri: A live auction has the The Chinese are very interested or Sotheby’s auction. advantage that on 15 May at Don‘t miss out on the chance to reach your because they are facing several 4:30 in the afternoon you know problems: The time when they The Chicago-based patent con- exactly: I do have the patent or target audience before and at the show! were forging things is apparently sulting firm Ocean Tomo held an I do not have it. On the internet, over – or at least the peak of this IP auction last year in the U.S. it is very difficult because there time is over. Those companies that wasn’t as successful as they isn’t a fixed period of time. The in China who have agreements had hoped; many of the sellers timeframe is much larger than a with international companies got less money for their patents live bid, and there is no chance CHEManager Europe 5/2007: know that without patents and than they expected. What are for due diligence. This quite a without new ideas, they cannot your expectations for this auc- difference. We can provide a Show issue survive the next 10 years. There tion in May? fixed period of time with ample are other nations, like Vietnam time for due diligence, and so Deadline: 11 May and Cambodia, who are manu- M. Petri: I wouldn’t say that we reduce the transaction costs Publishing date: 25 May facturing much cheaper than people were disappointed with by keeping up transparency at they are. What surprised me Ocean Tomo’s auction. It’s the same time. most is that among the top always very tough to introduce CHEManager Europe 6/2007: three priorities of this interest a new idea into the market, Is there a difference between pat- was green technology or envi- and one should give this idea ents which are being auctioned Show issue ronmental technology. time to let it grow. And what’s a that were issued by the Europe- disappointment? The first auc- an Patent Office and those that Deadline: 1 June What was surprising? Just the tion brought in about US-$3 were issued by the German Pat- Chinese interest in green tech- million plus the results in the ent Office? Publishing date: 28 June nology or in general? post auction time, which ended up at US-$9 million altogether. M. Petri: There might be a dif- M. Petri: In general in green I think it is going too fast to say ference as far as the validity is technology but the main that this is good or bad or dis- concerned, i.e. the area where Your Contacts: interest came from China. The appointing. the patent is protected. The Eu- first thing they asked for was ropean Patent Office is allowed mechanical engineering, the Ocean Tomo complained that a to give protection in all Euro- second was medical science lot of the sellers had unrealistic pean member countries where- and the third priority was green price wishes for their lots. What as the German Patent Office is technology. And this reflects the measures are you taking to pre- only allowed to give protection kinds of patents that are going vent sellers from being unrealis- in Germany. to be auctioned. tic with their starting prices? And there are patents of both Photos: Pixelquelle.de What kinds of patents are going M. Petri: We have introduced a kinds being auctioned, i.e. Euro- to be auctioned off? limit-related fee as 3 % of the pean Patent Office patents and requested limit of the seller. German patents? Brandi Hertig Schuster Dr. Roy Fox Mike Reubold Miryam Preußer M. Petri: We have 79 lots con- This should force the seller to Editor-in-Chief Editor North America ads D / A / CH ads taining about 395 patents. The think about the height of the M. Petri: Yes we have a few Tel.: +49 6151 8090-186 Tel.: +49 6151 8090-128 Tel.: +1 201 748-8810 Tel.: +49 6151 8090-134 strongest group is mechanical limit. If the seller insists that the patents that only have protec- [email protected] [email protected] [email protected] [email protected] engineering. Then we have limit is absolutely realistic and tion in Germany. The majority is automotive, we have medical the patent is indeed auctioned, at least protected in European science and we have material they will then get this fee back. member states of the EPO and science. This is different from This worked out well. We had a again a large number is also what I remember from Ameri- couple of sellers who had sky- protected in nations like Japan can auctions where in the past rocketing ideas and when they or the U.S. See you 27 – 29 June in Amsterdam! they focussed on consumer heard they had to pay 3 % in www.gitverlag.com electronics, microelectronics, advance, they came down and IT. The difference most likely down and finally dropped out. E www.ip-auction.eu

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CHEManager Europe 4/2007 ProductionFacilities · Processes · t echnologies Page 7

Production Production Reach

Eco-Efficiency Analysis: Mineral fibre Deep innovation More sustainability by using insulation in a modern management tools goes green post-Reach world Page 8 Page 9 Page 11 Dispersing Nanosized Particles Characterisation of Different Machines

n many cases, nanoscaled particles by fluid, on one or between two dispersing limit exists since the illustrates the progression of the roles and the suspension by surfaces. These different stress strength of the particle aggre- maximum reached particle size increasing the shear rate in the are produced through pyrolysis mechanisms occur with vary- gates or agglomerates increases as function of the shear stress gap of the 3-roller mill. There- as dry powder or in precipitation ing frequency and intensity in with decreasing size. for the dissolver, the kneader fore, the theoretical shear rate I different dispersing machines. In order to quantify the influ- and the 3-roller mill. The high- is much higher than the effec- processes with drying afterwards. Different machines show a dif- ence of the stress intensity on the er the shear stress and, thus, tive shear rate in the gap. air Products to Build hydrogen Facility Main target of producing nanosized ferent dispersing behaviour. The intention of this study is Conclusion Hydrogen provider Air Products will build a hydrogen produc- particles are properties which are to characterise the dispersing tion facility in Garyville, La. (U.S.). to help support the planned determined particularly by the high process comparing the different The efficiency of the dispersing expansion of a local refinery. The company said the new facility dispersing machines: kneader process strongly depends on the will expand the capacity of its Louisiana pipeline and will supply surface to volume ratio for example (HKD-T 0,6; IKA), 3-roller mill stress intensity acting on the the Garyville crude oil refinery of Marathon Petroleum Company, attractive forces, their transparency (Exakt 80 SE; Exakt), lab dis- particles. The estimation of the a subsidiary of Marathon Oil Corp. Air Products expects the solver (Dispermat CA C60; shear stress acting on the sur- facility to come online in late 2009 in conjunction with Mara- or their size itself. In most cases VMA-Getzmann GmbH) and face of the agglomerates shows thon’s refinery expansion project. Marathon plans to increase its nanosized particles are produced not stirred media mill (PM 1; Drais). an increase of the end product refining capacity at its facility to 425,000 barrels per day from The dispersive effect of each fineness by increasing the stress 245,000 barrels per day, Air Products said. as single primary particles but rather machine was determined on intensity. In the range below 100 E www.airproducts.com as particle collectives (e.g. agglomer- the base of dispersing an aque- nm, very high shear stresses ous nanoparticulate aluminium are necessary to break up the ates or aggregates), consisting of sev- Dow chemical to Build epoxy Facilities in shanghai oxide For each machine the agglomerates. In this range, eral primary particles. changes in median particle size stirred media mills are capable Dow Chemical said it will build two epoxy plants in Shanghai. as function of specific energy in- of reducing the particle size to The company will build a 150,000 t/y glycerine-to-epichloro- The particle collectives can be put was analysed. The specific Figure 2: Dependency of the maximum reachable product fineness on the shear below 100 nm. The dispersing hydrin plant (GTE) and a 100,000 t/y liquid epoxy resins plant distinguished in aggregates, energy is defined as the quotient stress acting in the different dispersing machines process in kneaders and 3-roll- at the Shanghai Chemical Industry Park. Both are due to start agglomerates and flocculates. of total net energy input into the median particle size, the value the higher the stress intensi- er mills for particle size range operations in 2009-10. The GTE facility will use patented tech- Aggregates are conjoined plane process volume and the stressed of the shear stress acting on ag- ties, the higher the maximum above 100 nm and high viscosi- nology to convert bio-diesel derived glycerine into epichloro- bedded and normally coalesced solid mass of the product. The glomerates or aggregates has to reachable product fineness is. ties is very efficient regarding hydrin. Epoxy products are used in a wide range of applica- primary particles are linked by division the power input of the be estimated for each dispersing The shear stresses generated in specific energy requirement. tions, including coatings for marine, automotive and packaging machine. In case of dispersing the dissolver are relatively low products as well as in electrical laminates, adhesives and civil with a dissolver the shear stress compared to the kneader and References are available on engineering. Dow did not disclose the investment involved for acting on the agglomerates is 3-roller mill as postulated be- request from the author. the projects. The company announced plans in August to invest estimated adopting the Kol- fore. The decrease of the maxi- more than US-$200 million in China’s epoxy market over the mogorov theory of turbulence. mum particle size by an increase E Prof. Dr.-Ing. Arno Kwade next five years (CHEManager Europe 6/2006). For dispersing with a kneader of the shear stress in the 3-roll- Dipl.Ing. Carsten Schilde, E www.dow.com and a 3-roller mill and assuming er mill by varying the gap width Institute for Particle Technology that laminar state flow prevails and the peripheral velocity is TU Braunschweig shell launches Project in singapore in the gap between the dispers- significantly lower than the Braunschweig, Germany ing tools, the shear stress act- decrease of the final particle Tel.: +49 531 3919623 Shell Eastern Petroleum has taken a final investment decision ing on the agglomerates can be size in the other machines. The Fax: +49 531 3919633 to proceed with the construction of a new butadiene extraction estimated by adopting the model reason for this effect is the raise [email protected] unit on Pulau Bukom (or Bukom Island), Singapore. The project of Rumpf and Raasch. Figure 2 of the wall gliding between the www.tu-bs.de will have an initial capacity of 155 kt/y and is part of the world- scale Shell Eastern Petrochemicals Complex (SEPC), targeted for start-up in 2009-2010. According to the company, the project Figure 1: Structure of different stress mechanisms of dispersing machines will now enter the implementation phase. solid bonding. The aggregate’s machines by the specific energy E www.shell.com surface is less than the sum of results in the production rate or all primary particles surfaces. mass flow rate of the machine. sasol to Build second MiBK Plant in south africa Agglomerates are composed Moreover, operating parameters of primary particles or ag- and the mass concentration was Sasol announced that it is to proceed with construction of a gregates, which are attached varied in order to characterise second methyl isobutyl ketone (MIBK) production plant in Sas- at corners and edges and are the dispersing process regard- olburg, South Africa. MIBK is manufactured from acetone and held mainly together through ing the stress intensity and fre- hydrogen and is used as a solvent in surface coating, adhesives nonpolar, polar or electrostatic quency. and pharmaceuticals. The new plant will double MIBK output interactions, especially by Van to almost 60,000 t/y, which the company said will make it the der Waal’s forces. The agglom- Dispersing of Nanostructured second largest producer in the world. The plant is expected to erates’ surface is little smaller Aluminium Oxide come on stream in the first half of 2009. than the sum of all primary E www.sasol.com particle surfaces. A flocculate is It can be noticed that machines an agglomerate, which accumu- in which high shear rates are solvay, BasF to Built PVDc latex Production Unit lates in suspension and can be realised have a high specific separated by a low shear force. energy requirement. Especially Bayer Chemical Start-up Initiative SolVin, a joint venture between Solvay and BASF, is planning to The strength of particle collec- the dissolver needs much more build a second production unit of Polyvinylidene chloride (PVDC) tives depends on the elementa- specific energy and produces a latex in response to growing global demand. PVDC latex is a spe- ry structure and the size. The lower product fineness than the cialty barrier material used as coating in packaging applications strength of particle collectives other machines. The reason for where the integrity of the goods is critical - essentially in the food increases with decreasing par- the high specific energy require- and pharmaceutical sectors. SolVin currently serves PVDC latex ticle size, since with decreasing ment is the high percentage Bayer Industry Services (BIS) is the biggest chemical park operator clients out of its production unit in Tavaux (France) and is now particle size the bonding force of energy dissipated into heat in Germany with three sites in the largest chemicals region in Europe. considering the creation of a new unit with an annual production between the particles collec- through friction inside the fluid. Through the Bayer Chemical Start-Up Initiative BIS now wants to capacity of 10,000 t, to be located possibly in Asia – for instance tives decreases less than inertia Moreover, the stress intensity in bring up-and-coming young scientists on board: in Map Tha Put, Thailand. The company is expecting to make a and other forces. The higher the the dissolver is comparatively decision by the third quarter of 2007 and to start construction • Advice in the development and implementation of your strength of the particle collec- low. Therefore, the produced work subsequently. business idea tives, the higher the required product fineness per load and E www.solvay.com • Essential contacts to network partners and investors stress intensity to disperse the the energy efficiency are rela- • Attractive leasing models for a top infrastructure E www.basf.com agglomerates, aggregates or tively low. In contrast to the dis- • Possibilities of cooperation with all companies at the flocculates is. solver, in the size range above Bayer Chemical Parks Boehringer ingelheim to expand capacity 100 nm the dispersing process Stress Mechanisms in a kneader and a 3-roller mill Contact: Boehringer Ingelheim microParts has begun building an addi- are very efficient regarding Dr. Volker Wege tional production building at the site in Dortmund, Germany. The required stress intensity in specific energy requirement if Tel.: +49-214-30-6 15 48 The new building – a state-of-the-art factory for the worldwide Fax: +49-214-30-3 19 18 fluids can be transferred through the suspension viscosity is high inhaler production – is set to cost a total of €70 million. With [email protected] different machines and, thus, enough. In the size range below this investment, Boehringer Ingelheim said will further expand different stress mechanisms. A 100 nm, stirred media mills the production capacity of Boehringer Ingelheim microParts. classification of these different can reduce the particle size The new, four-storey production building will be built on the stress mechanisms, which are very efficiently because within company’s premises in Dortmund’s science park. The facility will often used in combined form, is the mills the stress intensity have 12,000 m2 of floor space, 4,000 m2 of which will be clean- possible on the basis of different clearly increases with decreas- room areas. A high stacker warehouse is to be built alongside criteria. Figure 1 shows differ- ing particle size whereas in the Bayer Industry Services focus on your success the new production building to deal with the increased material ent stress mechanisms on basis other three machines the stress GmbH & Co. OHG flows. The building is scheduled for completion mid-2008 and 51368 Leverkusen of direction of force or energy intensity is independent of par- for commissioning mid-2009. Germany initiation, like shear or compres- ticle size or even decreases with www.bayerindustry.de E www.boehringer-ingelheim.de sive stress, and the type of force decreasing particle size. There- transmission, for example stress fore, for stressing in a fluid a

[email protected] Page Production CHEManager Europe 4/2007 Eco-efficiency Analysis of Colorant Systems More Sustainability by Using Modern Management Tools

urrently, ecological con- ing products and processes and the favourable environmental Figure 1 makes it possible to determine Base case Figure 3 rating of UV and petroleum- siderations are high on the the most eco-efficient of the based offset printing inks and Aqueous Coating agenda of most key decision Energy consumption various alternatives. The aim is UV flexographic printing inks. 2 C-PU Coating 0,1 Aqueos-varnish C 1 to offer the best possible cost- In this case, the VOC emissions makers. An eco-efficiency analysis is AC- Coating UV-varnish 0,8 NC- Coating effective products with good 2 C-PU-varnish of the water-based ink feature seen as a life-cycle management tool UV- Coating environmental performance. Customer AC-varnish particularly highly. There are 0,6 related NC-varnish In order to be able to illus- benefit: also considerable differences and involves assessment of the en- Raw materials 0,4 Emissions to trate eco-efficiency, BASF has Coating of in terms of toxicity potential, consumption 1000 wooden 0,2 air, water, ground 1,0 tire product life-cycle – from concept developed the eco-efficiency doors with a with the former systems earn- The base case 0 portfolio shown (fig. 3). The val- semi gloss, ing particular plus points in the development, to design and imple- transparent shows the UV- ues calculated from the ecology texture varnish as the eco-toxicity stakes. The less most ecoeffective mentation, further to marketing, and fingerprint are multiplied by alternative favourable status of the water-

weighting factors that are relat- Environmental impacts (normalised) based inks is due to the use finally, end-of-life issues. The analysis 1,0 = worst position better number < 1 ed to the relative importance of 1,9 of oil in the printing process. 1,9 1,0 0,1 may incorporate both economic and economic versus environmental Total costs (normalised) With the exception of the space Risk potential Toxicity potential effects in a particular study. requirement, water-based inks environmental aspects and lead to a The higher up on the portfolio occupy the least favourable Source: Saling © GIT VERLAG Source: Saling © GIT VERLAG comprehensive evaluation of prod- an alternative lays, the lower position in all of the environ- Environmental fingerprint for alternative curing systems. the environmental impacts. The Eco-efficiency portfolio for alternative curing systems. mental categories compared to ucts and processes over their entire further to the right, the lower the alternative systems in the life-cycle. “lifetime” from production and ble. “Cut-off” criteria must be are the costs. The position of results in all environmentally The eco-efficiency analysis comparison. use to disposal and thus analyse defined and verified. an alternative relative to the categories. The low film weight showed that the new primer For the calculation and com- the associated effects of such BASF’s eco-efficiency analy- diagonal line in the portfolio and the absence of a need for cures 10 times faster than con- Summary parison of the environmental environmental influences. This sis looks at the entire lifecycle is a measure of eco-efficiency. thermal drying results in high ventional thermally cured prod- position of each alternative, Thus, alternatives having dif- productivity and the lowest pro- ucts. Since UV-curing is light- The Eco-Efficiency studies pre- data from the different produc- ferent economic and environ- duction costs (fig. 2). activated and does not rely on sented in this publication were tion methods are assimilated Figure 2 mental scores can be identical This overall result is shown heat, it eliminates the need for initiated by BASF in order to and analysed to provide a value in eco-efficiency provided that in the eco-efficiency portfolio in bake ovens. As a result the ener- obtain information on the sus- for energy consumption, raw- 4000 their distance from the diagonal figure 3. The alternative with gy consumption in a body shop tainability of various coating material consumption, emis- is the same. the highest eco-efficiency is in is reduced by approximately and printing systems. Sustain-

sions, use of area, risk potential 3000 this case the UV-curing alter- 80 % Furthermore it is less cost- able development is one of and toxicity potential. All Case Studies native. It might be different in intensive, which results in the the strategic building blocks, materials required in the proc- other applications, so a case- highest eco-efficiency for this which pays particular atten- ess – and how these are derived 2000 Coating of 1,000 wooden doors with a by-case decision is necessary. product. tion. The eco-efficiency analysis – are factored into the study, as semi gloss, transparent texture Many scenarios are evaluated is an important tool for bring- are the steps required to bring The coating of 1,000 wooden in such studies and will guide Printing processes ing together a wealth of data,

Costs (  /user benefit) 1000 the product to the end-user. door fronts with different coat- to an effective process develop- Another eco-efficiency analysis evaluating it and implementing In the same manner, eco- ing technologies was investigat- ment. To give an example: Even compared various printing proc- it in market strategies as well nomical data from the life-cycle 0 ed. It should also be noted that if the energy consumption rate esses. The basis of the analysis as in research and development 2 chain of a product application UV-system Aqueous 2 C-PU system AC system NC system the technical performance and is doubled, the UV system is still was the printing of 1,000 m of activities. Over 300 studies in or process evaluation may also system the lifetime of the doors have the most eco-efficient alterna- folding boxboard. The result different industrial areas have be calculated and summa- Primer Coating Stain Machinery Personnel cost Energy no difference and was therefore tive. shows that UV offset printing been performed. rised. At the end, this analysis not considered in study. The inks, conventional petroleum- can lead to better decisions Source: Saling © GIT VERLAG UV system in the focus of the UV-Primer for automotive application based offset printing inks and A list of references can be with regard to product design, Life cycle cost calculation of alternative curing systems. analysis was a UV formulation Here, application and curing of UV flexographic inks represent requested from the author. material utilisation and capi- based on low viscous polyether primer on 1 m² of automobile eco-efficient alternatives for tal investment. The rationale creates an assessment basis for of a product, “from the cradle acrylates. Alternatives to the surface area is considered. The folding box printing. They fea- behind this assessment tool has all products. The precise proce- to the grave,” starting from the UV-technology in the follow- study encompasses production, ture a good environmental pro- E Contact: been described by Saling et al. dure for drawing up LCA sheets extraction of raw materials to ing eco-efficiency analysis are application and curing of the file and an excellent cost struc- Dr. Peter Saling (2002) and by Landsiedel and is described in the standards of using the product and ending aqueous varnish, 2C-PU var- coatings, cleaning of applica- ture. Water-based flexographic BASF Saling (2002). ISO 14040. The entire prod- with recycling or disposal after nish, acid curing varnish and tion equipment between appli- printing inks, on the other hand, Ludwigshafen, Germany The aim of a life cycle uct lifetime and the ecological use. Such an analysis allows nitro cellulose varnish. cations, and fuel consumption exhibit the least eco-efficiency. Tel.: + 49 621 60 58146 assessment is to portray the impacts of all the stages of that both economic and environ- The environmental finger- of the automobile over its life- The significantly lower emis- Fax: + 49 621 60 58043 environmental pollution that lifetime must be considered mental aspects to be considered print (fig. 1) shows that the time, resulting from the weight sions, particularly in terms of [email protected] products generate on their as comprehensively as possi- when developing and optimis- UV-roller coating has the best of coating on the vehicle. air emissions, are the key to www.oekoeffizienzanalyse.de Shear-free Dispersion Process Eliminating Agglomerates From Batches

or as long as man has attempt- version Micro Ψ-Mix (fig. 1) was recently developed. With ed to mix solids with liquids, this machine being designed he has struggled to avoid an for tests and the production of F small batches, a safe scale-up to annoying, if not wholly unacceptable, the production machine guar- by product – lumps, or more scientifi- antees a high degree of safety and flexibility. On the produc- cally, agglomerates. In the case of a tion sized machine batch sizes single serving of a food product, as between 100 and 15,000 l can be processed. in your morning coffee when you add powdered creamer, these agglomer- Comparison of Different Methods for Dispersion ates may be merely objectionable. In

the case of a large batch of high-value When comparing the variety Fig. 2: Comparison of different dispersing systems Fig. 3: Optimum dispersion of different dispersing systems product, such as pharmaceuticals or Fig. 1: Micro Ψ-Mix the relevant literature is not of the agglomerated particles are well known. What is new on shearing speeds break apart nology has reached a stand- fumed silica slurries, agglomerates or shear-thickening materials supporting production param- initially produced by the wet- this machine is the treatment these stable, wet agglomerates. still, the invention of the Ψ-Mix are easily processed within the eters. Equations mainly sup- ting process, from 10 microns of the solids and liquids during Sub-level vacuum feeding or the shows promise for the future. can render the product useless, or design of the process chamber. port mechanic layout of mixing (µm) to 2.0 mm and more. The initial wetting. A design crite- condensation principle with gas It may be difficult to fully inte- greatly increase production time by Compared to convention- systems to determine power request for more dust-free and rion was the controlled forma- grate the concept of this new al rotor-stator systems, this requirements. The field of effi- process reliable powder han- tion of wet agglomerates, with invention, but from a techni- creating the need for a grinding or machine uses significantly less ciency linked to the applications dling leads to granulates and the aim of an “optimum disper- cal point of view there are no pulverization process. energy for dispersion. Tem- and information about specific palletised raw materials, which sion” (fig. 3), i.e. to achieve the objections. This new concept perature-sensitive products energy remain undefined. Fig- is not supporting the basic of required degree of dispersion. may raise some conflicts with Starting with the fundamental and materials with a broad vis- ure 2 shows the most common wetting micronised primary In contrast, one could define conventional mixing systems. idea of wetting finely dispersed cosity range can be processed. system groups with saw disks particles at all. an “ideal dispersion” where For established dispersion sys- powder in a large liquid surface, The Ψ-Mix can be easily inte- and butterfly tools in compari- This wide distribution of dry every primary particle is com- tems, it may define a new era the inline disperser Ψ-Mix was grated into automated plants son to the Ψ-Mix, specified by agglomerates results in an obvi- pletely wetted. In most cases, in the market for dispersing developed by Netzsch-Fein- that process large batches and installed power, which seems to ous difference in the required the ideal dispersion is not the equipment, and manufactur- mahltechnik. Effective wetting is especially suited for emis- be an indication for installation specific energy input to achieve same as the quality specifica- ers of mills will need to make of solid particles by high-quality sion-free and explosion-proof and running costs. a specific degree of dispersion. tion, i.e. the required degree of adaptations to accommodate dispersion improves quality and operations. The design of the The energy input on the Considering the processes that dispersion or fineness of grind Fig. 4: Function principle of the Ψ-Mix the higher throughput rates. enables unmatched operation of machine is distinguished by Ψ-Mix relates only to the pow- may follow, i.e. fine grinding that has been developed by con- This concept should prompt one the machine at high production the fact that foreign bodies in der feeding time. The volumet- (fine dispersion) on bead mills, ventional methods. exchange can be an acceptable to do some rethinking about the rates. The Ψ-Mix combines a the pigment suspension do not ric dosing rate of up to 5 m3/h the energetic differences inher- One problem for an effective solution to this problem. dispersion process and to look new dispersion method with an cause damage to the system. A together with the bulk density ent in the type of pre-dispersion wetting process is the quantity at an innovative dispersion emission- and dust-free inline further significant feature of of the dry components results process become even more of micro air included in the Summary technology. process. The solid components the Ψ-Mix that contributes to its in the batch time. Additional obvious. An optimum pre-dis- charge of solid components. are dispersed on a large liquid success is the deaeration func- rework, in most cases, is not persion reduces the running This air is inherent in the dry Innovative dispersion technol- surface created by the pre-load- tion that occurs automatically necessary. time on a mill considerably and agglomerates. When the dry ogy sets new benchmarks for E Contact: ed liquid in the batch tank. Since within the operating method Most methods are based on possibly eliminates the need of agglomerate is immersed into modern production processes in Peter Schertenleib the new machine is capable of of this new machine. This is a producing wet agglomerates, fine grinding. the liquid, the capillary path all fields where micronised, pul- Netzsch-Feinmahltechnik GmbH processing both low- and high- major improvement for process- which should be broken apart on the exterior of the particle is verised solids have to be mixed Selb, Germany viscosity suspensions, the entire ing water-borne suspensions. by mechanical energy input via Background of the Ψ-Mix filled, sealing the interior of the as fine and as homogenously Tel.: +49 9287 797 0 application range of dispersion For batch sizes starting from rotation. One of the problems dry agglomerate. In the core, as possible. If the impression Fax: +49 9287 797 149 technology is covered. Applica- 15 l up to 700 l of suspension, with conventional technology The advantages of in-line an air pocket is created that within the industry is that the [email protected] tions for temperature-sensitive the pilot plant and small batch is the broad size distribution processing of solids into liquids stops the wetting process. High development of dispersion tech- www.netzsch-grinding.com

[email protected] CHEManager Europe 4/2007 Production Page Mineral Fibre Insulation Goes Green New Acrylic Binder Exemplifies Environmentally Advanced Technology

he manufacturing of mineral bind the mineral fibre filaments is a recent example of the in- would have to provide at least novation that characterizes the fibre insulation requires two comparable performance under most successful chemical com- main materials: filaments of the same conditions all across panies. Other examples include T the board: in the manufacturing the move from 100 % solvent- fibre spun from molten sand or stone, process, shipping, installation, based house paint in the 1950s plus something that binds the chopped and end use. This is proving to to the top-performing, more en- be the case. vironmentally advanced water- fibre filaments together. For decades, based paints we know today, as that “something” has been formal- Comparable Performance well as the more recent move Across the Board to water-based acrylic paints dehyde-containing resin, the use of for traffic markings. And in the which produces a stiff yet fluffy and In the manufacturing plant, near future, the same environ- the environmentally advanced mentally advanced technology moldable batt that insulates the walls acrylic polymer binder is sup- used for mineral fibre insula- and roofs of homes and commercial plied in water, then diluted tion may find application in a and sprayed on layers of min- host of other building products buildings and reduces the amount eral fibre filaments. This may the same way it has already of energy required for heating and require an adjustment to exist- found application in automo- ing equipment. During the cur- tive liners, another area where cooling. New technology, spurred by ing process, the acrylic polymer indoor air quality is critical. advances in acrylic polymer chemistry produces water rather than This new environmentally formaldehyde emissions. And advanced technology, Aquaset and increasingly strict environmental unlike a formaldehyde-con- acrylic thermosetting binder regulations worldwide, has resulted in taining resin that needs to be from Rohm and Haas, was rec- refrigerated before use, binder ognized by the American Chem- a major development in the composi- without formaldehyde is stable ical Society (ACS) with a 2006 tion of mineral fibre insulation: the for long periods of time at room Heroes of Chemistry award. temperature. Each year, this ACS award pro- use of an environmentally advanced, Shipping accounts for ap- gram recognises the vital role water-based binder – made without proximately one-third the cost of industrial chemical scientists of mineral fibre insulation, so and their companies in improv- formaldehyde or formaldehyde-gen- how well batting made with ing human welfare through suc- erating materials – that helps manu- an environmentally advanced cessful commercial innovations binder ships is critical. It is and products. facturers offer mineral fibre insulation allowing as little air leakage as peting or from lacquered furni- noteworthy, therefore, that eral fibre batting will resist sag- occupants of homes or buildings with comparable performance to insu- possible. An unintended conse- ture, for example, are generally such insulation has been found ging and stay in place. The use will be better served by the use quence of this practice is what not considered a major concern. to compress during shipping of an environmentally advanced of an environmentally advanced E Contact: lation made with formaldehyde-con- has become known as “sick However, there is increasing and – perhaps more important binder appears to have no neg- binder in their insulation. Guy Clamen taining resins. building syndrome.” concern, especially in countries – “recover” or fluff up after ative effect on this measure of Rohm and Haas France S.A.S. rapidly adopting stricter envi- shipping in a manner that is comparison. Environmental Progress Valbonne, France Over the years, mineral fibre A Step Toward Reducing ronmental regulations, about comparable to formaldehyde- Once installed, the mineral Through Innovation Tel.: +33 493955389 batting has proven to be an Total Emissions the cumulative effect of any- containing insulation. fibre batting can be expected Fax: +33 492969661 excellent insulator that con- thing that might contribute to The major concern during to provide excellent insulation The development of an envi- [email protected] tributes to an overall reduction There are many products inside poor indoor air quality. A step installation is whether the min- for decades to come. Therefore, ronmentally advanced binder www.rohmhaas.com in air leakage into and out of a home or commercial building toward reducing the overall a home or commercial build- that produce emissions affect- burden of emissions is certain ing. In fact, it is estimated that ing indoor air quality. “Tight” to be welcome, and that is why a home with appropriate and buildings – although they do insulation made with an envi- properly installed insulation significantly reduce the amount ronmentally advanced binder will have an energy bill that of energy used for heating and is capturing the interest of the is 30 to 40 % less than a home cooling as well as the emissions building industry worldwide. where materials and installa- associated with such energy use Of course, to be seriously tion are deficient. In an effort – trap these emissions inside, considered as a replacement for to maximise energy savings, where occupants breathe the traditional formaldehyde-con- builders often strive to make same air over and over again. taining resin, an environmen- a home as “tight” as they can, In isolation, emissions from car- tally advanced product used to

Wacker Expands Silicone Rubber Capacity

Wacker Silicones is expanding Wacker Chemie. The new Plzenˇ- The company plans to raise its capacity for ready-to-use sil- based plant is scheduled to start capacity gradually, ensuring the icone rubber compounds. The up in the next few weeks. With high quality of its ready-to-use expansion involves the com- about 20 employees, it will silicone rubber grades. pany setting up a new finishing produce an increasing share plant in Plzenˇ, under the man- of the compounds previously agement of its Czech subsidiary, manufactured in Burghausen. E www.wacker.com

Degussa Gets Approval to Build Facility Degussa has received approv- €250 million. The world-scale Shanghai Chemical Industry al from the Chinese National plant is to go into operation in Park Development. The inte- Development and Reform Com- the course of 2009, after a con- grated MMA plant is designed mission (NDRC) to construct an struction period of two years. to provide an annual capacity of integrated production facility Degussa’s Methacrylates Busi- some 100,000 mt and to supply for methyl methacrylate (MMA) ness Unit is responsible for raw materials for downstream and methacrylic specialties in planning, constructing and monomer and polymer special- Shanghai. The official starting operating the plant, which gives ties for applications in optoelec- shot for the specialty chemi- it production facilities in Asia, tronics, the adhesives and coat- cals group’s currently largest North America, Central and ings industries and automotive individual investment measure Eastern Europe. construction. is expected in a few months’ The production complex time. The investment volume operates on the basis of C4 Noise level 150 dB for the entire plant including technology and is being built all preliminary stages is about at Degussa’s multi-user site at E www.degussa.com VEGAPULS 68: Radar level measurement in Lonza, Bio One Capital to Built Cell Culture Plant extreme ﬁlling noise.

Lonza Group and BioOne Capi- has built. The final build-out of will have up to four mammalian tal broke ground for their large- the facility, will be completed bioreactor trains, each with a To keep your pulse rate down, and safety at its highest: VEGAPULS 68 delivers scale commercial mammalian and become fully operational, flexible capacity of 1,000 up to reliable level data even under difﬁcult conditions of pneumatic ﬁlling and strong dust cell culture manufacturing at the latest in 2011, in line 20,000 l and is inclusive of the generation. Thanks to optimised radar technology, unfavourable repose angles and facility at Tuas Biomedical Park. with customer commitments. respective purification units. This will be the second large- Depending upon customer frequent product changes do not faze it either. VEGAPULS 68: compact outside, scale mammalian manufactur- request, the capital investment innovative inside – and always with proven two-wire technology. ing plant in Singapore, and the could amount up to US-$350 E www.lonza.com third one globally that Lonza million. Lonza Biologics Tuas E www.bio1capital.com Superior level measurement under extreme conditions: VEGAPULS 68

BASF to Discontinue Lysine Business

BASF said it is discontinuing sure is part of the ongoing re- Nutrition unit as of November its lysine business and will shut structuring program of BASF’s 2006 and the divestment of the down its production facility in fine chemicals business, initi- global premix business. In Feb- Gunsan, South Korea, by mid- ated in January 2006. Among ruary 2007, BASF sold a major 2007 to concentrate on its non- other measures, this program part of its premix business to a www.vega.com amino acids business. Lysine is includes the merging of the Dutch company, Nutreco. the only amino acid in BASF’s human nutrition and animal nutrition portfolio. The clo- nutrition businesses into one E www.basf.com

[email protected] Page 10 Production CHEManager Europe 4/2007 New Dynamic Growth start-ups need innovation, not administration

E Continued Page 1 lishing mutually beneficial business support new companies in acquiring relationships and provide one anoth- the necessary financial aid, although as outstanding further education, a er with support. we do not undertake any financial strong midsize industrial sector with involvement with the start-ups our- an enterprise-driven approach, prod- How many new companies have you selves as this is not part of our core uct-oriented companies and besides won over so far? What industries are remit. Once the capital has been that, much more. Traditionally, Ger- represented? acquired, the business plan can then many more than compensates for its be put into effect systematically. supposed disadvantage of having few V. Wege: With the help of the initia- raw materials by its inventiveness tive, eleven start-up and R&D compa- In cases where you are able to help and initiative. As well as establishing nies in the chemical, material science, new companies, what support do you whole industries, we in Germany have technical systems and life sciences offer during the start-up process? always been successful in launch- sectors have moved into the Bayer ing technical and product-oriented Chemical Parks. But it’s not about V. Wege: The Bayer Chemical Start-up developments. The German chemical quantity for quantity’s sake. We want Initiative discusses the whole process industry, with a firm footing on the in the chemical and chemical-relat- every risk, you destroy every oppor- work and become integrated into an to concentrate on quality and pro- from optimizing the business plan to international stage since the 1960s, ed industries will help boost success tunity.” This kind of support for the infrastructure of material sciences, mote consistent development rather actually setting up at the Chemical is a classic example of this. even further. protection of vested interests might chemistry, life sciences and technical than just attract a mass influx of new Park with the start-up company. We have been useful in the past, but to- systems, assuming, that is, that the companies. After all, the established Does this still apply today? The econo- You cited solar technology as an day it would have devastating long- participants are pro-active. I believe companies at the Chemical Park sites my has become more complex in many example. In what other technologies term consequences for an economic the existing innovation network is only benefit from the start-ups if they respects since then. and scientific disciplines does Germa- region in the face of global competi- very well positioned in Germany are successful and enrich the life of “It is not about quantity ny offer an attractive environment for tion. and possibly throughout the world the Chemical Park as a whole. V. Wege: That’s true. Today’s chal- start-ups? in terms of the combination it offers. for quantity’s sake.” lenge is to actually put into practice What examples from abroad could Relatively new technology, research How do you see things developing in the wide-ranging innovations that V. Wege: In recent years, we have serve as models for promoting the and development companies can im- future as the new businesses move already exist. I believe this can only seen interesting new nanotechnology founding and establishment of start- plement developments and offer serv- in? then look at all aspects in detail from succeed by networking industrial applications, and start-up companies ups? ices in cooperation with established the business idea to markets, market structures with existing potential in Germany have been offering out- companies. Opportunities for gaining V. Wege: I see the future absolutely launches, marketing, communica- inventors and developers. BIS hopes standing quality – to global standards. V. Wege: There is a different entre- access to the market can be created positive. The success to date shows tion channels and sales strategies. to help push things in this direction Over the next few years, I believe we preneurial tradition in the U.S. The flexibly on equal terms between com- that we can attractively position the We help the company decide where it with the start-up initiative. will see dynamic growth and some concept of venturing in the sense of panies working in partnership. Fur- Bayer Chemical Start-up Initiative should be based, what space it needs, A recent successful example that pleasant surprises, particularly in the venture capital is related to the term ther benefits include a combination in the market. This will of course and how to manage supply and waste has provided a major boost for the field of medicine. “adventure” and does not simply of flexibility, short decision-making act as a magnet for other interested volumes. We also assess the logistics German national economy is the solar I think that in addition to nano- represent a form of bank credit seen processes for start-up partners and parties. We are currently involved in outlay and provide tips on the basic industry. Thanks to broad-based technology, key areas for innovation from a purely financial perspective. the opportunities and resources of some very interesting discussions and equipment the business requires. political support, this new branch of also include surface/coating tech- a global company. One example is are fully committed to these potential industry has already become a suc- nology, energy systems, biotechnol- the range of possibilities offered by new partners. As operators and man- What infrastructure can you offer new cess story. Its developments offer ogy and security technology. As yet “We need a culture an outstandingly comprehensive agers, we are constantly developing companies? enormous potential for the provision undreamt-of new developments and analytical framework characterized the Bayer Chemical Park sites and of high-quality energy. The interna- applications may emerge from within where failure can by professional support for prod- searching for opportunities for fur- V. Wege: The Bayer Chemical Start- tional market potential for this know- the powerful sphere of these partic- uct developments. In short, syner- ther start-ups. up Initiative provides comprehensive how from a country lacking in raw ular disciplines. The right approach also mean a new gies occur and existing strengths advice and implementation within an materials is very great and promises here is to reinforce strengths by pro- are reinforced. BIS also helps these What qualities does a person starting established commercial environment to generate wealth and help provide moting emerging research focuses. beginning.” companies by offering special start- a new company need to have in order – this combination offers tremendous a reliable source of income for many We also need a philosophy and up rental terms. to really benefit from the support of the potential for success. We provide tai- German citizens. The solar industry is culture where failure can also mean Bayer Chemical Start-up Initiative? lor-made laboratory modules to tech- a good example of how different dis- a new beginning, and this approach Key models for the establishment of Why should a new company base nical service center standards and a ciplines can come together to create needs to be supported by the political start-ups include linking up existing itself in a chemical park with large V. Wege: An innovative or at least full portfolio of services including new products through a combination framework. Target-oriented realiza- regional strengths with a financial established companies when there research-oriented business idea in the research, development and proof networking and cooperation. tion of innovations by founders of new tool. This might, for example, be a are many smaller technology parks it chemical or chemical-related sector duction – from supply, logistics and businesses and developers in corpo- foundation that provides a company could go to? of course is important. The company acquisition to materials, analysis and How has the situation improved in rate environments need to be reward- with capital resources and is linked founder should also be well versed in waste management. All this is avail- terms of the political framework over ed with greater financial support and to setting up the company at a suit- V. Wege: Our start-up partners ben- the challenges involved in gaining a able right from day one as part of the last few years? by increased recognition. able location. I also believe that the efit from numerous cooperation op- foothold on the market. The primary a highly reliable service. In tandem philosophy of successful companies portunities with established Chemical qualities this person must have are with the consulting service, the tech- V. Wege: In recent years, politicians This surely requires a change of reinvesting part of the capital they Park partners. As part of a network a willingness to learn, determina- nical and logistical framework forms have responded to the changed condi- mentality, not to mention a different have earned in new developments is of around 10,000 products, they are tion and persistence in dealing with a compact unit that the start-ups can tions of a globalised world by encour- approach to bureaucracy. a very sensible idea. able to harness considerable syner- problems that arise and, most impor- rely on in order to get their business aging those starting new companies gy potential for developing products tantly, passion for their idea and its idea off to a flying start. to take responsibility for implement- V. Wege: Definitely. Unfortunately, Which incentives does BIS offer new or supporting these processes. The realization. The main hurdles to be ing new product developments. This we in Germany have a tendency to companies above and beyond state- Chemical Park and North Rhine-West- overcome are usually the professional E Contact: could spark off a new wave of dynam- over-organize and over-manage. We run promotional initiatives? phalia region are also excellent sales business plan and the search for suit- Dr. Volker Wege ic growth in the midterm. Politicians would often rather look for mistakes markets. This is, after all, Europe’s able financing. The business plan is Bayer Industry Services GmbH & Co. OHG have also provided a model in the and give reasons not to go ahead with V. Wege: The Bayer Chemical Start- key chemical region with very good where the BIS support really comes Leverkusen, Germany form of high-tech founder funds with a particular development than create up Initiative offers companies access rail, road, river and air connections. into its own. Our experienced experts Tel.: +49 2143061548 the support of the industrial sector. an innovation-friendly environment. to a professional industrial innovation What’s more, some of our new Chemi- know exactly what’s required as well [email protected] The promotion of existing key areas Someone once said: “By avoiding environment where they can net- cal Park partners are already estab- as the critical success factors. We also www.bayerindustry.com

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[email protected] CHEManager Europe 4/2007 ReachRequiR ements · Consulting · i mpaC t page 11

Reach Reach Chemical Distribution

The importance of communication The ABCs of Shake up on between chemical suppliers data sharing the chemical and downstream users under Reach distribution scene page 12 page 14 page 17 Brave New World Deep Innovation Post-Reach

any ingredients will disap- but to use it as a springboard to equipment to separate high and able competitive advantage, not compass encourage a team to product. New automobile ble Poly-Lactic Acid (PLA) for products and services that bet- low voltages, reducing the area to win eco-awards. think hard about the current lubricants have a dramati- their MildDisc biodegradable pear with the implementa- ter meet the needs of our cus- in a product that needs to be A lot of green product design form and function of a specific cally lower viscosity on cold CDs and DVDs, and a range of tion of Reach. It is tempt- tomers. The obvious solution to protected, or by eliminating the is the same as any good new product, looking for new ideas. start. This means lower fuel biopolymers are now used for M losing current ingredients is to use of high voltages altogether. product development process. The seven dimensions are: consumption during win- packaging. ing to simply find a suitable substi- find a Reach-registered substi- There is a continuum of ideas The key that enables green  Convert the product into a ter commuting in Northern tute and carry on as before. However, tute. This might require some from redesigning the substance, product design is a way of think- service so that more value Europe and lower tailpipe Reach will bring change. Exist- tweaking of the formulation, comes from the intangible emissions. ing technologies and materials when the full costs of substitution are but surely it is the quickest part of the product. The  Improve the human and envi- will disappear and be replaced included this “shallow” innovation is and most cost-effective solu- flooring company Interface ronmental safety of the prod- by new ideas. Existing products tion? Unfortunately, the cost of has converted carpets into uct by reducing toxic materi- and services will be replaced less attractive. “Deep” innovation simple substitution can be very a service. Under their Ever- als and avoiding emissions. by new and better alternatives. rethinks the product in the context of high. The British Coating Fed- green contract, Interface will Printers use volatile solvents Smart companies will take ad- eration showed that a simple install a carpet, maintain it, to clean ink from the machines vantage of the wave of change; its application. Incorporating life-cycle substitution of a single ingredi- replace it when you want a leading to human health risks positioning themselves to lead it thinking into the innovation process ent in an aircraft coating could new one and recycle the old and VOC emissions. Non vol- and not be overwhelmed. cost nine man-years of effort carpet. Interface redesigned atile solvents produced from you can develop concepts that perform just to get back to where you all aspects of the system, in- plant oils eliminate almost all E Contact: better and have lower impact. were before. cluding the carpet itself, to atmospheric VOC emissions, Richard Miller support this model. and are much safer to use. Chemistry Innovation Knowledge There is one certain outcome of Shallow And Deep Innovation  Improve the durability of the  Improve resource use by con- Transfer Network Reach; we will not be using the Fig. 1: Alternative strategies for fire prevention in electronic devices product so that the financial serving depleting resources Runcorn, UK same chemicals and materials Simple substitution is an exam- and environmental costs of and using renewables or Tel.: +44 1928 515662 in our products in the future. ple of shallow innovation. You disposal and replacement are recycled materials where pos- [email protected] Some will disappear because fix the problem, but don’t offer cut. Most small laser printers sible. Sanyo will use renewa- www.chemistryinnovation.co.uk of genuine safety issues, oth- any new benefits to the custom- combine the imaging drum ers will vanish for economic er. There are other strategies. with the toner cartridge. This reasons – the available market Deep innovation reconsiders the is quick and convenient, but doesn’t warrant the cost of reg- entire system; looking beyond creates a lot of waste. The istration. substitution to product rede- Kyocera Ecosys laser printer For some application areas, sign, delivering functionality in system uses a separate imag- the number of ingredients a new way, and redesigning the ing drum with a much longer that might be lost is large. For complete business system. This a life than the toner cartridge. example, more than 5,000 in- offers bigger improvements in This cuts waste and reduces gredients are used in formulat- the environmental impact and the cost per page by about ing adhesives and sealants, and better solutions for the user. 50 %. more than 10,000 in coatings. Since shallow innovation can  Design the product for reuse, Many of these are used in small be costly, deep innovation offers Fig. 2: Eco-Innovation Compass remanufacture and recycling quantities and are vulnerable. market differentiation at a com- to reduce the impact on dis- A formulator estimated that parable price. Consider the al- through materials to the prod- ing; asking different questions posal. Disposable cameras they could lose up to 58 % of ternative approaches taken by uct itself. Each level increasing and looking at the problem from are not thrown away, but their profit through increased industry to eliminate the most the innovation depth and the a different perspective. are reused. The film is re- prices for ingredients due to dangerous fire-retardants in potential for customer benefit moved, new film put in and registration, and a chemical electronic applications (fig. 1). and market differentiation. The The Eco-Innovation Compass a new cardboard cover pro- company estimated that 20 % Brominated fire-retard- challenge is how to encourage vided. Any components that of their gross margin depended ants such as polybrominated R&D staff to identify the oppor- It helps to have tools that prompt are worn or damaged are on ingredients with a high risk biphenyl (PBB) and pentabro- tunities from deep innovation the right questions. The Eco- scrapped and recycled. The of not being registered. German modiphenylether (PBDE) are un- and not to focus on solving the Innovation Compass, developed average camera goes round paint manufacturers have sug- der threat. A simple substitution immediate problem. by Dow and the World Business the cycle a minimum of five gested between 20 % and 40 % replaces them with tetrabromo- Council for Sustainable Develop- times before the main case of current materials could be- bisphenol-A (TBBA). This has a Green Product Design ment, is a good way of exploring components are recycled. come unavailable. much lower toxicity, but is still a options for new products (fig.  Reduce the mass intensity per Whatever the final number, brominated fire-retardant. Bet- A successful approach to 2). The compass defines seven unit of service of the product. is it will be large. Reach rep- ter is polymerised TBBA, which encouraging deep innovation directions in which you can in- The Dow Sentricon termite resents a major market dis- is less likely to escape into the where there are environmental novate to improve environmen- treatment puts the toxic bait ruption; it is a wave of change environment. Phosphorus and and /or health and safety issues tal impact. An existing product exactly where it is needed passing through industry that mineral based retardants are a is green product design. This is given a score of two on each and protects it from weather reshapes products and proc- shift to a totally different mode means designing a product or axis. Alternative concepts are and exposure to humans or esses, fundamentally chang- of action to avoid health risks, service to reduce overall envi- compared with this baseline; animals. This reduces the ing the technologies we use. but they bring their own diffi- ronmental impact whilst main- higher scores mean better per- amount of pesticide needed Any market disruption is an culties. taining or improving economic, formance, lower scores worse. 1,000 times. The product opportunity for the inventive, Circuit boards can be also be technical and social perform- Different options can be com- is safer, cheaper and more www.umco.de the flexible and those quick to redesigned to use flame-resistance. The goal is to develop pared as spider diagrams to effective. +49-40-41 92 13 00 respond. Our challenge is not ant materials. The industry has products that are commercially show the tradeoffs between.  Reduce the energy intensity merely to comply with Reach, also changed the design of the successful and create sustain- The different dimensions of the per unit of service of the Member of the REACH consultant network CBA: Reach Could Be Too Complex for SMEs Your comprehensive solution The Chemical Business Asso- tual property,” German MEP, for your demands of REACH ciation (CBA) has expressed “From an SME’s Alexander Graf Lambsdorff, concern that the six Reach said. Implementation Projects (RIPs) perspective, the  More than 50 % of SMEs in could make Reach too complex Japan were unaware of Reach for smaller and medium-sized only way forward and its implications, accord- ̈ Awareness raising enterprises (SMEs). ing to a recent survey of the ̈ Substance inventory analysis “We have repeatedly point- for Reach is to chemical sector by Japan’s ed out that simplicity is the Ministry of the Environment. ̈ Consortia management key to Reach compliance for keep it simple SMEs with limited technical “From an SME’s perspective, the ̈ Registration management and financial resources – and and minimise the only way forward for Reach is SMEs account for more than to keep it simple and minimise 95 % of the European chemical bureaucracy and the bureaucracy and complex- industry,” said CBA Director ity,” Newport said. “This does Peter Newport. “It is becom- complexity.” not imply a weakening of the

ing increasingly clear that this Photo: Pixelio new regulations – but it will im- message is being lost within the prove their effectiveness. Apply- Peter Newport, CBA director RIPs which seem intent on over-  According to contract re-  Reach “may turn out to be a ing simplified use and exposure complicating the Reach regula- search firm RCC, “Small nightmare” for smaller com- categories, for example, would tions,” he added. volume producers and ex- panies; the newly-created properly”; and “smaller com- be a major step forward and CBA’s said its viewpoint is porters with multiple prod- European Chemicals Agency panies are worried about would ease the compliance bur- } Environmental protection and plant safety mirrored by other published ucts are likely to see Reach “may be overwhelmed with many obligations to publish den for SMEs.” } Advice on dangerous goods } Chemical product service concerns about various aspects costs of more the US-$1 mil- applications to the point or communicate information } Occupational safety and health } Strategic conceptions of Reach’s development: lion.” where it can’t do its work and fear a loss of intellec- E www.chemical.org.uk

[email protected] Page 12 Reach CHEManager Europe 4/2007 Reaching A Dialogue Communication Important Between Suppliers and Downstream Users of Chemical Substances

nder Reach, more accurate vide a safety data sheet (this is of substances take account of identified use within the regis- Safety Report) deals with this is required whenever a sub- turer should involve his direct a current requirement) and an all the uses of a substance. The tration of the substance. How- subject, but will not be finalised stance or preparation is sup- customer in the collection of information on how chemi- exposure scenario where rel- obligation of registering, however, downstream users will before June. plied to a customer. A safety information of the uses further cals can be used safely will evant. In some specific cases, ever, lies with the manufacturer need to weigh these advantages data sheet for a preparation downstream. U they will have to consolidate or importer. against any concerns that con- Communication Upstream which is not classified as dan- The descriptions of average be generated by the manufacturer or the information obtained from Under Reach, suppliers of fidential business information gerous (according to Directive operational conditions of use importer of chemical substances; this their suppliers and develop a substances to downstream would need to be provided to Under Reach, downstream 99/45/EC) must be furnished to and standard risk manage- new exposure scenario with users solely have an obligation suppliers. The alternative will users have the right or are downstream users on request. ment measures for different information will be included in safety the safety data sheet for their to provide the new information be for a downstream user to required to communicate a Information to be forwarded processes may be developed data sheets and other information customers. If the preparations required under Reach to down- prepare their own chemical certain information upstream. includes: all registration num- by downstream user industry are not dangerous, information stream users once registration is safety report. This process may This includes the right to bers which are given in Section organisations, e.g. in the form provided to downstream users help- on safe handling must also be request a use to become an 1.2 of the safety data sheets of of a set of standard exposure ing them to meet their obligations provided, yet not necessarily in identified use, with the aim of the individual components of scenarios covering different a safety data sheet. having it included in the sup- the preparation; whether the uses within the sector in ques- under the new Reach regulation. Due to the need to know pliers’ exposure scenario, the substance is subject to author- tion. The largest customer of the chemi- more about the use of sub- requirement to inform suppli- isation and details of any au- A supplier has no liability as stances, communication along ers of additional or new infor- thorisation granted or denied to how the substance/prepara- cal industry is the chemical industry the supply chain is likely to mation on substance hazards in this supply chain; and any tion is used by his customers, itself. Most, if not all manufacturers increase significantly. Down- and the requirement to inform other available and relevant he is only required to provide stream users are required to the supplier of inappropriate- information about the sub- guidance on safe use if an and many importers of substances pass information they hold, or ness of risk management meas- stance that is necessary ren- exposure scenario is required. are therefore likewise downstream which is provided by their sup- ures applied. dering possible the appropriate Moreover, the manufacturer/ pliers or customers, up or down Downstream users have the risk management measures to importer has the right not to users in the definition of Reach, i.e. the supply chain. right to make a use known in be identified and applied. It is include a certain use in the ex- they buy substances (or preparations) writing to their immediate sup- likely for the information to posure scenario, i.e. not to sup- Phase-in and the Downstream plier of a substance or prepa- be provided in a safety data port the use. from manufacturers or importers User ration, with the aim of mak- sheet format, even if no safety established within the EU. Downstream users have to ensure that they use chemical substances and ing this an identified use (Art data sheet is required (this is Summary Before and during the phase-in preparations safely. 34.2). For phase-in substance, the current practice of many Most of the current legal period beginning in the second complete. After this, they must also require some preparation the request must be made at chemical suppliers). Downstream users are con- requirements on the use of half of 2008, manufacturers draw up a revised safety data by the downstream user, so it least 12 months before the The manufacturer should cerned that some of the chemi- substances and preparations and importers of substances sheet (or other information) may be advantageous to hold deadline for registration of check whether he has sufficient cal substances may not be reg- will remain unchanged under will be seeking information to with the next delivery of the early discussions with suppliers the substance. In communi- information on each down- istered by their suppliers, for Reach, but there will be some enable them to prepare a reg- substance or preparation at to establish whether this step is cating a use, the downstream stream process/application to whatever reason. In preparing new requirements for down- istration for their substances. the latest. Within 12 months, likely to be necessary. user should provide sufficient prepare an exposure scenario Reach, some downstream users stream users. Major new During this period, downstream the downstream user must Currently standard question- information enabling the sup- (both for making a downstream have approached, or plan to obligations are that downstream users may provide information only use the substance in line naires are under development plier the preparation of an user chemical safety assess- approach, their suppliers and users have to ensure that they to assist in the preparation of a with the conditions set out in and are being discussed by exposure scenario for that use ment or to identify a use). The request information about the use chemical substances and registration. Downstream users the safety data sheet or other European and national chemi- thus including it in the chemi- information is sufficient when it intentions of their suppliers or preparations safely. Suppli- may be contacted by suppliers information. cal industry organisations. cals safety assessment. If the allows determination of a safe even demand commitments in ers will provide information searching for information per- If the substance is not regis- These normative questionnaires immediate supplier is not the exposure level for human health written form from their suppli- on the safe use for dangerous taining to registration. They tered for the use to which the are intended to help purchasers manufacturer or importer, for and the environment from that ers to continue supply in any substances and preparations may also wish to be proactive, downstream user puts it, or and suppliers in an adequate example another downstream use. Potential sources of infor- circumstance. in a safety data sheet (SDS) as in contacting their suppliers to there are authorisation condi- exchange of information for user or a distributor, they are mation include the safety data Nevertheless, initiating a today. In some cases, the safety offer information or assistance tions or restrictions which he registration purposes, without compelled to pass this request sheet of suppliers, experience, dialogue between suppliers data sheet will include an an- associated with the registration does not meet, this may require overly specific details on uses or on to their supplier. emission scenario documents, and their customers is a pru- nex containing one or more process. This may have busi- significant changes by the product composition, i.e. confi- Under Reach, downstream workers’ health information, dent commercial behaviour. It exposure scenarios describing ness benefits for a downstream downstream user. It may be dif- dential business information users may (but are not obliged etc. is suggested to prioritise and how the substance or prepara- user, ensuring that substances ficult for a downstream user to is respected. These question- to) provide information to their The manufacturer may de- focus these discussions on mation is to be used in fact safely. he uses will be registered for make these changes within the naires offer the potentiality to suppliers to assist in the proc- cide to interview some of his terials of strategic importance. Downstream users must ensure his particular use. 12 months’ period, especially if defer answering to a later point ess of registration (Reach Art customers to verify his assump- Substances that may become that the way they use the sub- However, downstream users he needs to make changes to his of time. A careful completion 34.1). During the phase-in pe- tions on the “average client” or subject to authorisation may stance or preparation is cov- will wish to balance the ben- process or to substitute a use of the questionnaires will take riod, a supplier may request in- to collect further information. also be a priority, especially ered by the conditions listed efits of pro-active involvement of the substance. Timely contact some time, because in many formation from a downstream As the exposure scenario is also the substances that are carci- in the exposure scenario and against the work required and with suppliers, to establish what cases requests for information user to help him to complete a tool to influence how a sub- nogenic, mutagenic, or toxic for implement the recommended that needs to be protected as uses they intend to register the will have to be sent to sellers’ registration of a substance as stance is used downstream, the reproduction. risk management measures. confidential business informa- substance for and whether it is suppliers or to purchasers’ such or in a preparation. If the manufacturer may wish to rec- Suppliers will also provide in- tion. Once the phase-in date likely to be subject to authorisa- downstream users. The cur- downstream user does not re- ommend changes to the current formation on risk management has elapsed, downstream users tion or restriction, can help the rently discussed questionnaires spond, the supplier may choose way of handling the substance E Contact: for non-dangerous substances, have mandatory duties under downstream user to plan more might be updated in the months not to include the downstream or preparation, to reduce risks Dr. Siegfried Wallat probably in a form similar to a Reach. effectively for the requirements to come, because more defini- user’s use in his registration. further. The safety assessment Cognis Deutschland GmbH & Co. KG SDS. Throughout the phase-in of Reach. tive information may become or identification of use may Düsseldorf, Germany Formulators who place dan- period, all actors in the supply Providing information will available about the definition Communication Downstream include not only the uses of the Tel.: +49 211 7940 2443 gerous substances or prepara- chain will need to communicate benefit downstream users as of downstream uses. The Reach immediate customers, but also Fax: +49 211 2006 11541 tions on the market for other with each other to ensure that, it will make it more likely that Implementation Project (RIP) Active communication of infor- uses further down the supply [email protected] downstream users have to pro- as far as possible, registrations their use will be included as an 3.2 (generation of a Chemical mation to downstream users chain. In this case the manufac- www.cognis.com Stuck In The Middle Impact of Reach on Mid-sized Companies Importing from Outside the EU

each, which will come into RG or RG CSR (CSA) Reach: Registration Deadlines force in June, will especially Product life Manufacturer/Importer CMR: cancerogenic, mutagenic, reprotoxic impact small- and middle-sized N, R50/53: dangerous for the environment Importer/Manufacturer European Chemicals Agency: R MSDS: MSDS Substances companies in the European Union, Substance info RG/CSR/MSDS 1–10 mt/a Substance evaluation Downstream User New particularly because such companies Application info to: MSDS: application MSDS import raw materials or substance Substance info Downstream User Substance evaluation Substances 10–100 mt/a from outside the EU. Consequently, it Application info to: Downstream-User RG or RG CSR (CSA) with description Application info to: of new application End User Substances is very important to know what this 100–1000 mt/a Registration dossier MSDS Agency Substances New Chemical Safety Report Set-up > 1000 mt/a importing role means for a company. Chemical Safety Report application MSDS incl. > 100 mt/a: N, R50-53 for new applications Pre- Lehmann & Voss (Hamburg), which is MSDS: Material Safety Data Sheet Registration > 1mt/a CMR RG: Registration Dossier a mid-sized chemical company with CSA: Chemical Safety Assessment Year 01 3.5 6 11 CSR: Chemical Safety Report EChA Dec. 2008 Dec. 2011 June 2013 June 2018 activities in the coatings sector, has (European Chemicals Agency) © GIT VERLAG © GIT VERLAG © GIT VERLAG been preparing itself for Reach since Fig. 1: General roles and obligations under Reach Fig. 2: Role of downstream users under Reach Fig. 3: Registration deadlines under Reach 2003. The resulting activities will be and a chemical safety report  Does my product portfolio be submitted to the ECA (see formation is possible, especially obliged to start the registration important for every company illustrated, with focal point on activi- that have to be sent to the Eu- contain exemptions from reg- fig. 2). with suppliers and customers. in the first three years. to decide during 2007 and 2008 ties for imported materials. ropean Chemicals Agency (ECA) istration (e.g. minerals, ores, In addition it is vital that a what substances should or must in Helsinki. ore concentrates, substances For many other small- and mid- company department or spe- Pre-registration Steps be registered. At this point, it Reach will have enormous occurring in nature that are dle-sized companies, there are cific persons are determined to would be advisable to register influence and effects on the How to Prepare for Reach not classified as hazardous)? some remaining substances to deal with Reach; these Reach- The Reach process in detail will all important and/or necessary chemical industry in Europe. Here, one must refer to annex be relevant under Reach, espe- responsible people or depart- start with the pre-registration substances for a company; fur- Especially small- and middle- First of all it is very important to IV and V of the Reach regu- cially those that are imported. ments should know the com- process. This means to register ther steps are possible only sized companies have, in many check the product portfolio us- lation. Consequently, a well-organised pany substances and the Reach some basic information about after pre-registration. cases, to adapt and to check ing e.g. the following scheme:  Will the applications of my preparation for Reach is impor- processes and obligation. the substance and the company Lehmann & Voss has decided their own role because often  What are my imported – or substances be described by tant. It is also necessary to know (see Title III, chapter 3, article to carry out a Reach project in these companies are importing manufactured – substances? my supplier? If not, the sup- your own Reach time table as 28 in the Reach regulation) in 2007 and 2008; at the end of raw materials or substances  Are these substances import- plier can be asked to inte- Preparation: What Does It Mean the registration process has a new database (using the soft- this project, the pre-registra- from outside the EU. Due to ed or manufactured <1 mt/a? grate it into his application for a Mid-sized Company? clearly set deadlines (fig. 3). At ware IUCLID 5 being available tion of all substances being the Reach regulation importers Unless they fall into the cat- descriptions or (if the sup- first the hazardous and high- for all companies during 2007 imported should be finished. have the same obligations as egories of CMR, PBT and/or plier should not be informed It is very important to know volume substances have to be for free, available on the offi- During such pre-registration manufacturers/producers. The vPvB, they are not relevant about new applications) an Reach in general so that dis- registered; so many small- and cial EU website http://ecb.jrc. resulting registration dossier under Reach. additional registration must cussions and exchange of in- middle-sized companies are not it/iuclid5/). Consequently, it is E Continues Page 13

[email protected] CHEManager Europe 4/2007 Reach Page13 Be Prepared TÜV Rheinland Certificate for Good Reach Preparations at Biesterfeld

adveRtoRial Preparing for the new Intensive Dialogue With Customers TÜVRheinland BioTech GmbH Con- Biesterfeld Spezialchemie is a high- Reach regulation is a challenge, especially for sultancy firm and test institute for the growth European distributor of prod- TÜVRheinland BioTech concludes the implementation of Reach. ucts in the areas of LifeScience, Food the chemical retail industry. Trading houses monitoring of the project by awarding Services in the context of Reach: Ingredients and CASE which are subject a multi-level certificate. The “Reach- need to tackle the new challenges now in or- J Project monitoring and controI to declaration. As a partner of leading Approved” seal of approval to the der to ensure that they will remain capable J Cost-effective analysis of the sub- global suppliers, the company presently company. This will offer Biesterfeld a stance portfolio employs 100 members of staff at 14 significant time advantage in terms of of supplying their customers in the future. J Reach impact assessment European sites and distributes a broad communications with customers, as The company TÜVRheinland BioTech certifies J Consortium support range of specialist chemical products the “Reach-Approved” status demon- strates to the executive board and to Reach processes in a multi-stage procedure. J Full performance of registrations and food additives. Beyond the role of a the customers that the company has J Cost reduction strategies traditional distributor, the company also prepared itself intensively for the new A pilot project at the chemicals trad- offers its partners a high level of both Reach legislation and that everything ing firm Biesterfeld in Hamburg TÜVRheinland BioTech sees its role in application-specific and market-driven is on track in relation to the Reach highlights the background to these the development of strategies, addition- expertise. schedule. Of course, this is then moni- new developments. The chemical al resources and testing systems which tored over longer periods of time as industry expects more from its dis- are used to support the industry. As an part of the ongoing monitoring of tributors than just on-time deliveries. independent third party, they focus on able information about substances the project. Ultimately, the goal is to Particularly in the field of specialist Mr. Pietrock (Biesterfeld Spezialchemie GmbH) and Mrs. Zimmermann (TÜVRheinland BioTech standards and set performance bench- for non-European suppliers and the ensure that distribution routes and chemicals, dealers like the Hamburg GmbH) at the handover of the project papers. marks for professional and cost-effec- clarification of copyright issues in product availability remain intact. company Biesterfeld score by not only relation to this data. selling chemicals, but by also offering human resources, communications warehouses, also makes it easier to tive implementation of Reach. In this context, the expert sys- a range of services including tailor- and marketing as well as control- access information which is relevant tem SimReach from TÜVRheinland made consultation services. ling and IT/systems. TÜVRheinland in the context of Reach. Costs Of Registration BioTech allows companies to pre- E Contacts: This approach in particular de- BioTech has accompanied the project However, Reach also requires pare strategic corporate decisions Biesterfeld Spezialchemie GmbH mands that dealers are comprehen- through every phase in the process, more far-reaching information in How much will it cost a company to by simulating registration scenarios. Tel.: +49 40 3 20 08-437 sively prepared for the Reach legis- offering specialist expertise on the addition to this. According to Ewald register all the substances it trades The toxicological expertise contained Fax: +49 40 3 20 08-443 lation, and it is also the reason why new chemicals legislation. Langenohl, director of TÜVRhein- in? One of the important sub-goals in this system results in realistic [email protected] Biesterfeld opted for a co-operation land BioTech, “difficulties may for of any Reach project is to calculate assessments of the costs for each www.biesterfeld.com with TÜVRheinland BioTech in Octo- Defining Concrete Project Goals and example arise in cases where the the costs arising as a result of reg- import product. This in turn allows ber 2006. The latter is well-equipped Schedules exact quantities of the constituents istration. For this purpose, potential senior management and financial E TÜVRheinland BioTech GmbH with subject-related and strategic of imported preparations need to be consortium partners will need to be control departments to incorporate Tel.: +49 221 69 05 89-0 expertise in relation to Reach, hav- The first aim of this project was to determined, or in cases where vary- found who can share the burden the capital requirements resulting Fax: +49 221 69 05 89-13 ing for example developed the soft- integrate Reach in the management ing qualities can have a bearing on of the registration costs. Key areas from European legislation into their [email protected] ware SimReach, which can be used systems already being used within the conclusions of toxicological stud- here include the gathering of avail- strategic planning. www.tuv.com/biotech to calculate the best and worst-case the company. This was done on the ies.” scenarios for how the new chemicals basis of an information and moni- legislation will impact on individual toring system that monitors compli- companies. ance with defined project steps in the This expertise was also the decid- various organisation units. After the ing factor for the chemicals trading subject has been anchored in the dif- firm Biesterfeld in Hamburg. ferent areas of the company, the next Advertorial Feature “Our goal is to achieve a signifi- step was to analyse all of the products cant and lasting growth in turnover which are traded by the company. It within our group of companies in the was important here that products next three years,” said Jürgen Krohn, which are only used in certain areas Joining forces for better guidance through legislation director of Biesterfeld Spezialchemie, or on a short-term basis are not for- one of the companies in the Biester- gotten during the analysis. This made feld Group. “We can only manage this it possible to create the basis for pre- if we are prepared for Reach in the registration at an early stage. EACH will enter into force on 1 June 2007 and all • Up to 20% increase in product costs following a best possible way, as this is the only Biesterfeld Spezialchemie operates producers and users of chemicals need to prepare rationalization of portfolios way to guarantee to our customers also outside the European Union, with Rfor REACH compliance. • Customers reconsidering the formulation of their that even with the new Reach regu- offices in Russia, Croatia and Ukraine. Organisations who ignore REACH not only face preparations lations, we will remain in a position This therefore means that, as part of loss of business, but possible legal action in due course. • Other specific changes in the supply chain where we can offer totally reliable the preparations for Reach, part of The legislation has the potential to enhance and not As can be expected this poses a series of important deliveries and the expertise necessary the challenge is to integrate a wide- hinder the industry, if handled properly REACH questions. Firstly, do these events apply to your business? to substitute products if required.” ly distributed network of sites into Jens-Uwe Pietrock, also direc- the process together with all of the compliant businesses will be seen as forward thinking, Is there a way to prevent them or do you see tor of Biesterfeld Spezialchemie, purchasing and sales departments. responsible and efficient. It will also save time and opportunities behind the changes ahead? Regardless of has responded by setting up an It has proved helpful here for all of money – precious resources no organisation can whether you’ve started your preparations or not, there’s inter-departmental project within the different sites to be linked with afford to waste. no denying that REACH Readiness Review will help by the group of companies extending online IT networks. This direct online establishing a clear path towards this important to senior management as well as access to information, which – on a PREPARATION IS EVERYTHING legislation. And in doing so, assist towards gaining an to the areas of product safety, sales day-to-day basis – makes it possible advantage over competitors. and purchasing, development and to make products available at short To ensure that industry preparation to the new production, legal departments and notice via central or regional storage legislation is made as smooth and efficient as possible, ReachCentrum, the professional services body established by Cefic, has joined forces with SCOPE OF THE REACH READINESS REVIEW PricewaterhouseCoopers (PwC) to set up a new and The table below gives a brief outline of the size and scale of the exciting joint service the REACH Readiness Review. Review. This offer combines Cefic’s in-depth knowledge of Stuck In The Middle the REACH regulation and PricewaterhouseCoopers’ Portfolio assessment excellence in business risk management to safeguard Substance information requirements Auxiliaries E Continued Page12 can be prepared individually, as the and perfect compliance with laws and regulations. Substance information availability Scope and roles Reach legislation does not call for preparation the following check list a specific contract form. It is very Customer information availability Data gaps could be used: important for small- and middle-sized REACH READINESS REVIEW Internal organisation review  Aspects that should be checked for companies to consider the consortia- The REACH Readiness Review is a tool that has every substance being imported. forming process during preparation. Implementation project and team Level of awareness been specifically designed to help you prepare for  Does the non-European supplier This will probably be the most likely Involvement of all stakeholders IT systems ﬁt in REACH, whether you are an early adaptor or still in enough available data, or is more way to fulfil the registration obliga- Management system ﬁt in detailed contact with supplier nec- tions. the starting blocks. By evaluating your status it can essary? In addition, it could be wise to define the actions you need to take for the REACH Business implications review  What are the detailed applications provide customers and/or suppliers implementation phases. Consortia strategy Legal structure of the substances? Are there dif- with active information, such as a This comprehensive analysis reviews your portfolio SIEF strategy Product strategy ferences between supplier and one-page handout describing Reach within your organisation and highlights the relevant Cost overview and planning customer use (fig. 2)? in short and your company’s Reach. implications. All of which stems from ReachCentrum’s Strategy for registration; toll manufacturing  Are there known competitors for This will increase the necessary com- main corporate message of providing guidance and the substance that could be par- munication of all participants in the peace of mind wherever REACH legislation is involved. ticipant of a consortium? process.

 Are there possible European sup- REACH implementation phases until 2010 pliers that could be used? Summary To find out more about this new service, contact either  Are there import substances that Comply Register Register Prepare and get to general Judith Hackitt, ReachCentrum will be exempt from registration? Small- and middle-sized companies tonnage tonnage organised requirements and band I band II Tel: +32 2 676 72 76, Email: jha@cefic.be  Which import substances should be have to check their own role in the pre-register pre-registered? Reach process; often these compa- Paulus Wijffels, PricewaterhouseCoopers Now 06/07 01/09 06/10 nies are importing raw materials Tel: +31 10 407 66 37, Email: paulus.wijff[email protected] For most of the small- and middle- or substances from outside the EU. sized companies, the registration Importers have the same obligations The initial stage of REACH Readiness Review is a process is only possible by joining as manufactures and proper prepara- self-assessment questionnaire and interview to provide consortia. The purpose of a consor- tion is necessary. tium is to avoid unnecessary testings a suitable approach for your organisation. (on animals etc.) and costs for the This review is carried out by a team of specialists companies; and cost sharing based and advisors with individual sector knowledge and e.g. on the market share of a com- REACH expertise. pany. E Contact: There’s no denying that waiting for REACH All participating companies must Dr. Heiko Thoms legislation to become actual management dilemmas is a be registered at the ECA. The com- Lehmann & Voss & Co. KG risk all organisations wish to avoid. With several early panies can decide on their own if Hamburg, Germany studies already indicating potential pitfalls: – additional information (like chemi- Tel.: +49 40 44 197 454 cal safety report or guidelines for Fax: +49 40 44 197 615 safe handling etc.) will be prepared [email protected] individually. The consortial contract www.lehvoss.com

[email protected] Page 14 Reach CHEManager Europe 4/2007 Learning To Share Data Opportunities and Obligations Under Reach

hen the Reach regulation the purposes of this regulation shall “a complete and comprehensive de- phase-in substances. This means that vertebrate data, and it is allowable sharing and compensation is being be undertaken only as a last resort”. scription of the activity performed to if a substance has been registered by to agree compensation for non-ver- drafted by one of the Reach imple- enters into force on 1 June, At higher substance tonnage levels, generate the information. This cov- company A and another company (B) tebrate data. Companies are obliged mentation projects (RIP 3.4), which is manufacturers and importers animal testing can only be conducted ers the complete scientific paper as wishes to manufacturer or import to inform the other members of a due to report shortly. W following approval by the European published in the literature describing the same substance, company B will SIEF of any/all data they possess on The requirements to share and to of chemicals will have new responsibilities Chemicals Agency (ECA). To save the study performed or the full report be required to register it as well. To request. If they possess a study then compensate owners of data, opens up concerning their safety data. Companies money on testing and administration prepared by the test house describing avoid repeat animal testing, the agen- they will also be obliged to provide a potential market for good quality and to reduce vertebrate testing, the study performed”. Article 10 (a) cy will be obliged to use vertebrate the proof of its cost to the requesting test data, particularly from verte- taking part in the registration process will companies will be strongly encour- is also very clear; “…the registrant data from the original registration participant. If data do not exist, then brate testing, where studies cannot be obliged to share any data they have, and aged to work together in consortia shall be in legitimate possession of, (made by company A) to support the companies simply share the costs of be performed if data already exists. or task forces. or have permission to refer to the full second registration, provided com- generating it. For example, if a company is not refusal to share may result in exclusion from study report…” pany B compensates company A. If a company owns a vertebrate intending to support a particular the Reach process and consequent loss of Substance Information Exchange Forum These articles imply that a regis- Unlike the arrangements that are study but refuses to share it with substance but owns vertebrate data trant cannot simply copy end-points in place for Directives 91/414/EEC and other participants, that company can- obtained from it, then there is a mar- market. Even companies who have decided Since it is estimated that there are from the internet or use summa- 98/8/EC (plant protection and biocides not continue its own registration. An ket to sell the study to a company who not to support a substance in the process may 30,000 substances which may fall rised data from other legislative pro- directives), companies do not retain appeals process against the agency is supporting that substance. into the scope of Reach, it is conceiv- grammes (e.g. EPA Registration Eligi- exclusive access rights, and will be will be put in place and penalties can Competing companies, tend to still have useful data, and may even find it able that there may be significantly bility Decisions (RED) or high produc- obliged to come to an agreement on be imposed by Member States. keep their business information as has a market value. more pre-registrations submitted tion volume ((hpv)) programmes). compensation and will have only a In both phase-in and non phase- confidential as possible. In recogni- to the ECA. It is highly likely some month to do so. An arbitration board in situations, a company has little tion of this, Reach allows a third party In the early stages of the development substances could have a dozen or New or Non Phase-in Substances may be put in place to assist in this opportunity to fully protect its verte- representative to anonymously rep- of the Reach regulation, the commis- more registrants. To manage this, process, but if they still cannot agree brate data. The obligation to share resent companies in consortia thus sion was extensively lobbied to en- the agency will create a Substance The Reach regulation applies to new then the agency may grant company non-vertebrate data exists only if the providing some degree of confiden- sure the minimal use of vertebrates, Information Exchange Forum (SIEF) as well as existing substances. Exist- B access if company B pays a propor- prospective registrant requires such tiality. for each substance. The purpose of tionate part of the price to the data data (in which case the owner of non which will be to put all manufactur- owner (company A). It will be pos- vertebrate data is obliged to share). Summary ers/importers of a substance into con- sible to appeal against this decision. tact with each other. Registrants can Submitting data and allowing other Compensation Under Reach, registrants will be then discuss what data is available companies to use it only with per- obliged to share data and compen- and what data need to be generated mission is called protection. Protec- For companies who will be in a posi- sate each other. The cost of gener- on a shared basis. The members of a tion lasts 12 years, so if company B tion to share data, there is the issue of ating new data will also be shared. SIEF can then submit a joint registra- applies 12 years after the original compensation. The articles in Reach Ownership of data may remain with tion using shared data. submission of data then access to it regulation indicate that fair compen- the original owner but newly gener- When considering co-operating is free. Note that access in this case sation should be paid in the case of ated shared data could be owned by with members of a SIEF or form- allows the agency to use the results data sharing. The regulation indicates all parties who co-operated to coming a consortium, it is important to of the study, but it does not confer that for non phase-in substances, mission the study. Data submitted for Terrestrial ecotoxicology seek legal advice to protect both the Vertebrate studies may be a valuable on company B any rights of owner- companies “shall make every effort non phase-in substances will have company’s interests and ensure com- commodity. ship i.e. the right to possess, copy or to ensure that the costs of sharing the 12 years protection but only in as to reduce the testing burden generally pliance with competition law. Legal ing substances, provided they are use it for other regulatory purposes. information are determined in a fair, much that competitors will have to and to encourage help for SME’s. The advice is outside the scope of this pre-registered, will be evaluated in a Supply of reports and permission for transparent and non-discriminatory pay compensation to make use of it; end result of this lobbying was the article but data sharing, protection, phased process and so are therefore other purposes can, of course, be way.” Similarly for phase-in substanc- data is not fully protected from use principle of “one substance, one reg- confidentiality and compensation will called phase-in substances. New sub- negotiated with the data owner. It is es, the owner of a study is obliged to by competitors. istration.” This principle means that be discussed. stances, or those for which pre-reg- also allowable, but not mandatory, provide proof of its cost to the other the registration process will operate istrations were not submitted, will, to agree compensation for non-ver- sharing members of the SIEF. Partici- with one registration per substance, What Is Data? therefore, be non phase-in substanc- tebrate data. pants are expected to agree sharing E Contact: rather than a registration for each es. Within Reach, certain aspects of in a fair, transparent and non-dis- Matthew G. Curl manufacturer/importer. Before considering the issues of shar- data sharing are dealt with differently Existing or Phase-in Substances criminatory way. If they cannot reach TSGEurope The regulation is also very strong ing data it is important to understand for phase-in and non phase-in sub- an agreement, costs shall be shared Knaresborough, UK with regards to vertebrate animal what is meant by data in the context stances. For registration of phase-in substanc- equally – there is a question here over Tel: +44 1423 799 158 testing. For example Article 23 states, of registrations under Reach. Article Sharing, and the payment of comes, the SIEF will be in operation. It the motivation to reach agreement in [email protected] “… testing on vertebrate animals for 3 (27) defines a full-study report as pensation, will be mandatory for non will be mandatory to share existing this situation. The guidance on data www.tsgeurope.com A Small Business Perspective Technology Transfer Between Academia and Industry

mall companies have advantages and for MKC resulted in eventual aban- level must be thoroughly researched, A small company must evaluate Direct University Contact US-$300, US-$1,200, US-$2,250, donment of this new product, even as well as the patentability or pro- the simplicity or complexity of prod- US-$4,500, and US$5,000, from disadvantages when engaged in tech- though it was pursued into patent ap- prietary know how of products. uct manufacturing, and if there is Several years ago, a university profes- year one to year five, payable semi- nology transfer. Limited resources, plication, prototype, and final product Understanding product and techno- any compatibility with existing prod- sor and SensaDyne Tensiometer user, annually; and US-$5,000. semi- S development. I decided to pursue this logical life, new product features, and uct lines, customers, and industries. at his university’s Institute for Applied annual payments after the fifth year. being the norm rather than the exception, new product and negotiated a licens- applications is essential. There has to It must evaluate safety and product Surfactant Research contacted me Any sub-licensee to pay the same 5 % means their criteria for technology transfer ing agreement for the technology and liability, training and support for regarding an idea for a patented stat- royalty. The royalty split was 1/3rd patent rights. The resulting new com- staff, distributors, and customers, ic surface and interfacial tension de- RRI and 2/3rd BC. In addition BC “will must be exact so failure is not an option. This pany was SensaDyne Instruments. on-site and remote. There must be vice. A chemistry graduate student’s have the right, but not the obligation paper covers a company, whose very exist- We commercialised the world’s first recognition of how the new product idea, using a cylindrical rod and a to take appropriate action to defend dynamic surface tension measuring might effect ongoing relationships standard analytical balance, it could its patent rights” against third party ence resulted from technology transfer from instrument, and are in business to- and support for existing custom- be manual or automatic. Mathematics infringers. “If appropriate action is academia, with examples and case studies day, with computer-interfaced labora- ers and distributors. Finally, is this was developed and concept tested. It taken, royalties are still due. If not, tory Tensiometers using Windows OS something that the company will en- was low cost and low technology, and SensaDyne can take action with costs of some past opportunities. New product platforms and embedded CPU, stand- joy doing? could be sold as an auxiliary product deducted from royalties. If no action development ideas come from many sources, alone, in-process Tensiometers. for existing top-loading, analytical, by either, all terms are still in force.” University Techology Transfer – balances or as a new product with a Agreement terminates with patent including literature, direct contact, referrals, Small Company Limitations & Advantages Arizona State University new balance. At the time, our Italian expiration. With no marketing study, brokers, internet searches and academia, but representative manufactured top- minimum R&D and development con- Small companies typically have limit- One example of how a university loading balances, providing us with trol, and minimum five year invest- here we deal with technology transfer from ed product development capital, time, transfers their patented ideas to a known source. ment of US-$50,000, we declined and academia. personnel, and physical resources. industry is Arizona Technology Financial requirements were: one- have never seen this product come Capital is needed for one-time fees, Enterprises (ATE), established by Ari- time fee of US-$5,000; 15 % royalty to market. As Manager of new product develop- patent and licensing costs, prototype zona State University (ASU) in 2003 to per instrument sold; minimum semi- ment at Madison-Kipp Corporation and production development, and replace the ASU Office of Technology, annual payments of US-$7,500; a Summary (MKC), over 25 years ago, my depart- market research. Limited personnel Collaborations & Licensing. ATE’s three-year exclusive license; termina- ment was responsible for developing can sometimes be balanced by multi- primary functions are to apply for tion after three years by either party The old maxim of “buyer beware new products with US-$5,000,000 in talented or multi-technical personnel, patents, market ASU inventions, and if not satisfied; and reasonable devel- and seller take care” is particularly annual sales. Being close to the Uni- but if additional requirements for negotiate licensing deals with com- opment budget funded by SensaDyne. true for small companies involved versity of Wisconsin (UW), we con- marketing, sales, safely, and legal mercial partners. As a limited liability Development requirements were: all in technology transfer, in that the tacted the Wisconsin Alumni Research expertise is not in-house, there are corporation, a private enterprise, it R&D and development done close to company shoulders all of the mon- Foundation (WARF); responsible for extra costs for outsourcing these can more closely mirror how business the university’s location; marketing etary risk. But if a small company matching existing UW patents with functions. Manufacturing resources transactions occur with a commercial and manufacturing by SensaDyne; understands its limitations and potential companies who would com- must be stretched or upgraded for partner. It decides whether to license and new patents to be jointly owned. advantages, and has fully defined mercialise products from these pat- both prototyping and production. technology to other users or start a This came to a base, three year, new product criteria, it can use its ents. We offered a US-$5,000 “find- Small companies should respond company, in most cases with outside US-$50,000 investment cost. limited resources to expand its prod- er’s fee” to students and employees in faster to new opportunities as they be thorough understanding of exist- management, and whether to spin We declined and have never seen ucts and profitability. The selected UW engineering departments whose usually lack layers of bureaucracy, ing and future domestic and foreign out companies if there is really strong this device come to market. case studies presented should give ideas or prototypes might result in have greater open mindedness and competition. platform technology. important evaluation criteria when viable new products. less product tunnel vision. There A small company needs to be par- In fiscal year 2004, 137 institutions Indirect University Contact dealing with academia in technology One idea of interest resulted from may be less competition among few- ticularly cogniscent of product com- at ASU introduced 567 products. Be- transfer situations. a prototype, fluid surface tensiometer er new product ideas, and potentially patibility with existing manufacturing tween fiscal year 2004 and 2006 ATE A SensaDyne user at a U.S. brewing built by a chemical engineering stu- faster product evaluation and market capabilities, existing product costs, generated $7.8 million in licensing company (BC) contacted us regard- dent, based on a 50-years-old idea. research. and pricing. Can the new product be revenue. In fiscal year 2004 through ing a patented Relative Dynamic As no patent had been applied for, produced with existing production 2006 ATE applied for 289 patents and Liquid Surface Activity Detector, the E Contact: WARF felt no need for involvement New Product Criteria technology? Is there compatibility obtained 59, and was involved in 80 rights having been given to Research Victor P. Janule and pursuit of a patent was left to with existing costs and profit margin licensing agreements. ATE spun off 15 & Resources, Inc. (RRI), a for-profit Chem-Dyne Research Corporation MKC, following the award of the find- Criteria for successful new product levels with which the company has companies, of which 5 were acquired subsidiary of the Medical College of SensaDyne Instrument Division er’s fee, split between the graduate development must be exactly defined been successful to date? Are over- by other firms. This year 13 compa- Wisconsin. Arizona, U.S. student and his chemical engineering for small companies, since one or two head, patent, licensing, sales, manu- nies were selected from 70 applicants Financial requirements were: Tel.: +1 480 924 1744 professor. failures can cripple or bankrupt them. facturing, marketing, warehousing, for presentations before accredited one-time fee of US-$5,000; 5 % roy- Fax: +1 490 924 1754 Unfavourable new product mar- Knowing what and where the mar- and distribution costs in line with investors at the 2007 Southwest Capi- alty of net sales with a minimum of [email protected] ket research and recessionary times ket is on a global, regional, and local existing products? tal Conference, an annual event. US-$26,500 over the initial five years: www.sensadyne.com

[email protected] CHEManager Europe 4/2007 Reach / c hemicals Page 15 ‘Disruptive’ Behaviour Dow Corning’s Innovative Business Model

E Continued Page 1 Dow Corning employees had Xiameter and Dow Corning E. Peeters: We have been very that we needed a new business this Seventh Framework Pro- them. If Europe is to thrive in to learn how to become better sales were online. pleased with our progress – in strategy. gramme has a budget of over €50 what is an increasingly com- model had been introduced into consultants. For them, we im- fact we’ve recorded double- Our segmentation research billion. What do you consider to petitive global marketplace, the silicones market. plemented mentor and ambas- How can other companies inte- digit growth every year since and introduction of a solutions- be the best way to boost innova- innovation will have to be at At the same time, we real- sadors programs and offered grate this plan into their own 2002. Offering business solu- driven approach led us to an tion in Europe? the heart of efforts to modern- ised that Dow Corning could training to guide customer in- businesses? tions, in addition to our tradi- “outside-in” perspective. In this ise the region. Clearly, regional use its expertise in other areas teractions. We’ve also encour- tional products and services, way, we are listening to custom- E. Peeters: There is no magic leaders believe that sustainable to revitalise our Dow Corning aged these employees to share E. Peeters: We all know how has been a key growth strate- ers and designing our offerings answer or single action – rath- growth, employment opportu- Brand and help customers solve their success stories. Xiameter important innovation is – but it’s gy. We have also been growing to address customers’ goals and er I think it’s going to take a nities, and a healthy economy problems or seize new oppor- employees had to learn to pro- often quite a challenge to make geographically into developing needs. combination of factors. Edu- are all important drivers in the tunities. So we re-focused our vide exactly what their custom- it an integral part of your busi- countries in Asia and Eastern cation is among the most im- pursuit of more competitive, corporate strategy to place a ers wanted and were willing to ness. What our experience has Europe – most aggressively in Dow Corning has a culture of portant factors – and it starts knowledge-based EU indus- greater emphasis on our so- pay for – no more and no less. shown is that you need to create China. And we’ve expanded “smart innovation.” How does from an early age. We need to tries. lutions and ability to innovate These changes transformed systems to integrate innovation our offerings into new areas this differ from the industry’s ensure that young people have I don’t think it is a question with our customers. For exam- our internal culture. Employ- into everything your company such as solar solutions, pho- current understanding of inno- opportunities to experience of what Europe can learn from ple, we introduced solutions ees now are more involved does. From your corporate pri- tonics, and plasma solutions. vation? science and that our universi- the U.S. in terms of innovation, to help customers create new with customers and feel more orities and employee training Annually, we invest approxi- ties and academic institutions although I notice that Europe- markets, to expand into new ge- connected to the marketplace, programs to the way the com- mately 6 % of revenue in R&D E. Peeters: Our culture of encourage innovation. Within an Commission President, Jose ographies, to create new formu- since they are constantly lis- pany leaders communicate and to develop technologies to spur “Smart Innovation” takes in- companies, we need to create Manuel Barroso, spoke about lations, and to strengthen their tening to customers in order to build commitment to the way growth. We are also exploring novation beyond our laborato- an atmosphere and incentives this to the European Parlia- supply chains and manufactur- match our services up to their you allocate resources. Every- opportunities in silicon bio- ries and our scientists. It now is that encourage our employees ment recently. He pointed to ing processes. We also provide needs. We now focus on the thing should reinforce that in- technology, with our partner reflected in everything we do, to have a passion for innova- the benefits of dynamism and access to knowledge about reg- unique needs of each customer novation is a business impera- Genencor International. To- everyday. This approach aligns tion. being more “flexible and busi- ulations in countries around the and customize our offerings active – during years of expansion gether, we have created a new, employees’ efforts as problem ness friendly” in Europe. The world and environment health cordingly – in other words we and down years as well. proprietary silicon biotechnol- solvers with market needs. A 2004 survey showed that inno- EU’s commitment to innovation and safety practices. Our so- listen, understand, and then act A critical factor is getting ogy platform. We pursue op- As we look to the future, our vation gap between the EU and and research and development lutions business model has exactly according to customer regular customer feedback to portunities in the performance European operations will con- the U.S. had not been reduced is certainly a positive develop- become a strong differentiator needs. monitor your progress and to enhancing materials industry tinue to play a key role in in- since the adoption of the Lisbon ment. for Dow Corning and has pro- stay in close touch with market as well. novation in such fast-growing agenda, despite the fact that the vided a new source of revenue What effect have the new models requirements. At Dow Corning, industries as personal care, U.S. does not have an explicit Where do you see Europe in for the company. had on business? we pay close attention to how How has the business environ- textiles, automotive, and con- national innovation policy and terms of innovation in the next our customers view us. Through ment changed since Dow Corn- struction. Europe is an impor- U.S. federal funding for R&D has 10 years? How did Dow Corning align the E. Peeters: The introduction of global customer surveys, we uti- ing was established in 1943? tant geography for a variety declined significantly as a pro- entire company behind the new solutions has transformed the lize the insight from the “voice What should companies do to of initiatives, including every- portion of GDP. How would you E. Peeters: The region certainly strategy? customer’s experience of our of the customer” as part of our grow with the times? thing from plasma technology explain this? What can Europe has all the ingredients required company. We’ve established decision making processes. This to solar offerings. In addition, learn from the U.S. in terms of for innovation success. In the E. Peeters: The first step was ties to customers on many dif- insight from customers impacts E. Peeters: The business envi- developing markets in Eastern innovation? next decade and until the end to have a clear corporate strat- ferent levels, and they turn to how we allocate resources, for ronment has changed dramati- European and Mediterranean of the century, we believe that egy and a corporate culture in us for an increasingly broad example. Most importantly, cally. For our first five decades population centres offer Dow E. Peeters: Clearly the goal to innovation will be one of the which rewards and recognition range of requirements. We companies need to consider in business, Dow Corning and Corning tremendous opportu- turn the European Union into most important factors in de- were aligned with strategy. At have, in effect, transformed how they can use innovation to the industry were “inside-out” nities to bring innovation and a dynamic, outward looking termining sustainable business Dow Corning, we also found it our company from a product- meet customers’ needs in new driven. Customers were eager other benefits of silicon. knowledge economy through success. helpful to involve all employees focused supplier into a solution ways and to set their companies to buy all the new products the Lisbon Strategy is admira- in innovation processes. One of company. apart from competitors. we could invent. Then in the The objective of the European ble. The U.S. may benefit from the key activities for us was the Another result worth not- 1990s, the industry flattened Union’s Lisbon Strategy is to an educational system and in- training we gave to employ- ing – in 2002 Dow Corning had How has customer satisfac- out and languished. The days make the EU the most dynamic dustries that have had a long- ees to ensure their behaviours virtually zero sales online. By tion helped your company’s of “invent it and they will buy and competitive knowledge- term focus on innovation and match our “brand promise.” 2006, 30 % of our combined growth? it” were over. We recognized based economy in the world, and substantial funding to support E www.dowcorning.com The Clock Is Running The Impact of Reach on Coating Suppliers

alspar, a U.S.-based paint tiatives, this article is a snap- tion, particularly if they are know as soon as possible the purchase? A list of pre-regis- shot in time. made and polymerised in the interpretation of the European tered substances doesn’t help. company, has a wide Euro- same or adjoining plants. Two Chemicals Agency (ECA). For EU-based suppliers, the pean product range, cover- Unclear Terminology such examples could be PVC Publishing a list of pre-regis- pre-registration should not be V made from VCM (vinyl chloride tered substances by 1 January an issue, as the requirements ing coatings for light metal packaging, To many in the coatings industry, monomer) and epoxy resins 2009 seems to resolve many are not onerous and buys the general industrial, coil, vehicle refin- the terminology “intermediate” made from ECH (epichlorohy- issues at first sight, particular- supplier time, but what about has a different meaning to that drin). Both are CMRs and argu- ly with the apparently perfect non-EU suppliers? ishing to name but a few. Most of the under Reach. Clarification of ably need authorisation, which option of a downstream user customers are industrial users, but the the definitions of intermediates means to some downstream being able to ask for alterna- Letting The Customers Know is required. If a coating forms users, correctly or incorrectly, tive suppliers for non-pre-regis- company also supplies aerosol paints a dry film (cures) by a chemical that end uses of the PVC or tered substances using the ECA In the Reach regulation, it states to a number of different retail outlets. reaction such as cross linking epoxy resins will have to be web site. Many of the coating that Reach, manufacturers or rather than by evaporation of authorised. However there are industry raw materials are not importers shall be encouraged In addition some resins, substances solvent, is that coating, which justifiable claims that as they substances, but rather mixtures to let their customers know and intermediates are manufactured is itself a preparation, an inter- are non-isolated intermedi- of substances. How does one whether they intend to register mediate or a polymer? ates, and due to the current self find if a raw material rather the substance and such infor- in-house. In the context of Reach, a There seems to be some contained handling procedures than a substance has been pre- mation should be given to them number of very specific issues arise degree of confusion along the necessary for these monomers, registered when some suppliers sufficiently in advance of the supply chain as to whether neither they nor polymers made will not tell their customers the registration deadline in order due to the different businesses and monomers which are CMR from them need authorisation. identity of the substances in their structures. The company manu- Class 1 or 2 need authorisa- Downstream users need to the raw materials which they E Continues Page 16 factures coatings based on EU sourced raw materials, but it also imports coatings based on non-EU raw materials.

For metal packaging, a joint industry group (JIG) involving all in the supply chain was formed in 1996 to address food contact issues. In some of the other industry sectors the supply chain doesn’t appear to be  Where is the definitive list of don’t want to duplicate efforts as well co-ordinated. Most of the end uses we need in order or waste limited resources; the other business sectors we to contact our customers to thus, we have ascertained are involved in consist of many ensure that our suppliers what we can do today and if more players than those in the cover them in their exposure and how we can influence any JIG, both suppliers and custom- scenarios? of the procedures in the in- ers, and there are smaller com-  How are multiple substance terim, through trade associa- panies involved. Thus some of exposure scenarios going to tion activities etc. Reading the the many questions facing my be handled? Reach regulation doesn’t clarify company and other coating  When are many parts of the the situation for downstream companies today include: Reach regulation going to be users such as paint companies  Which of our raw materials clarified? and, more importantly, their will be registered by their  When are we going to be in customers. Indeed, it could be suppliers or in many instanc- a position to say that we are argued that Reach wasn’t writ- es their supplier’s? Reach compliant as many ten with the downstream user  Can we believe our suppliers customers are demanding in mind. Multiple substances when they say they will regis- today? which are invariably used are, ter their raw materials?  What is Reach complaint? arguably, not considered at all.  Are our smaller suppliers, It is appreciated that many of particularly of some addi- Similar to many companies, we the issues raised are currently tives, going to be able to sup- are actively contacting suppli- being addressed, but with it port the cost and administra- ers and building an internal being very difficult to navigate tive burden of Reach? structure to handle Reach. We through all of the different ini-

[email protected] Page 16 Reach / c hemicals CHEManager Europe 4/2007 The Clock Is Running The Impact of Reach on Coating Suppliers

E Continued Page 15 withdrawal of a raw material? We are may decide not to increase volume “release” is quantified, one hopes mechanism for transfer of informa-  All of our raw materials will in- satisfied today that the large multi- so that they do not exceed that thres- that common sense would prevail tion. However, many of the raw mate- crease in cost to enable them to look for alterna- national suppliers of large volume hold. In many respects, allocation and the interpretation would be in- rials used are mixtures of substances.  There will be a significant increase tives. However, there is no definition chemicals will register them. Indeed is worse than product withdrawal, tentional release, such as that from a Do we get numerous SDSs per raw in administrative burden on us, our of “sufficiently in advance” or any many started the preparatory work because whilst it may be possible to printer ink cartridge rather than the material? Do we then have to take customers and our suppliers potential penalty for failing to comply. years ago. continue to supply existing volumes release from a coated table. This may the individual SDSs of all of our raw  Some raw materials may be subject In coatings for metal packaging, shelf to customers, increased volumes can- seem trivial to some, but if any of the to allocation lives of 3 – 5 years are not uncom- A Substitution Nightmare not be delivered. Product withdrawal substances released even at low lev-  We need our customer’s help in or- mon, and pack tests need to reflect forces one to re-formulate with raw els are suspected endocrine disrup- The clock is running, der to transfer information to our this before a coating is approved. As All coatings need additives which are materials which will be fully support- tors for example, then there could suppliers. it normally takes a minimum of 1 – 2 typically used in fractions of 1 % and ed under Reach. be problems due to alleged low dose and we don’t want to a number are present in any coating Consider a manufacturer with two affects and the potential for them to It is clear that there are many unre- formulation as an “additive cocktail.” EU sites as separate EU legal enti- be treated as authorised substances. have to condense our solved issues and important gaps in Normally, it is this cocktail that gives ties, manufacturing just below two the legislation. It appears that Reach Reach wasn’t written the coating its unique performance different thresholds. The registration Different Interpretations activities into a frantic was not written considering the needs characteristics, with each additive dossier data for the larger manufac- of the downstream user. It seems to with the downstream complementing the effects of others ture can be used for the smaller one. It could be argued that the use of the few months. have been written without many of present in the cocktail. One additive Whilst the substances may be chemi- word “use” in the Reach regulation the rules being in place. There is an user in mind. could be present in numerous coat- cally identical, they may differ in a has many different interpretations urgent need for the missing informa- ings, and it may be used with others physical property that impacts a criti- depending upon its context within materials and attach them to the SDS tion and a greater degree of clarity to that are different in each “cocktail”; cal property of a coating. If the larger Reach. Thus it is very important for for my product? For each coating the be made available. The clock is run- years to substitute an alternative – in therefore, substitution is difficult. One tonnage product is the preferred one agreement of the interpretation of SDS will consist of numerous pages. ning, and we don’t want to have to the best-case scenario – our industry of the coating industry’s concerns is for the coating manufacturer, will “use” every time it appears in Reach. Obviously for us and our customers condense our activities into a frantic needs at least 7 – 10 years notifica- the continued supply of additives, that producer increase this produc- Whilst end use definitions are actively a short SDS is preferable. Indeed I few months. Whilst the objectives of tion if a raw material isn’t going to which by definition are typically small tion and exceed the threshold, with being progressed, they are currently would argue that as we should know Reach are commendable, there are be registered in order to find a vi- volume raw materials. Every formu- associated cost, or increase the pro- a problem. In order to prepare effi- the end use for a customer we could serious issues for downstream indus- able alternative. The argument that lator has their own favourites, and duction at their smaller site until it ciently for Reach, coating suppliers leave all other uses and their respec- try. food contact substances are exempt the substitution of additives will be a approaches that of the larger one? need to be working with their custom- tive exposure scenarios off the SDS from certain requirements of Reach is nightmare, because one can expect ers today in order to obtain informa- for that customer. The author acknowledges the sup- accepted, but few, if any, substances that some suppliers may use Reach No De Minimus Principle tion for their suppliers to use in their Today Reach doesn’t contain port of Tony Newbould of the BCF. are solely used for coatings for food to rationalise their product ranges. exposure scenarios. We desperately enough detail for any downstream contact. Therefore, for their contin- Coating suppliers need to know today There may be an issue surrounding and urgently need a standardised set user to fully understand their obli- ued usage, it was necessary to know which additives will be supported, release of substances from an article. of “end uses” agreed in order that gations. Over the next few months, E Contact a few years ago whether they would in order to promote their use, even There is neither a definition of “re- individuals do not use different terms the situation will become clearer, but Dr. P.K.T. Oldring be supported. The same time frame though the registration deadline for lease” and nor a de minimus principle for the same end use. These uses also for conscientious companies such as The Valspar Corporation or longer applies to other areas, such some additives may be 2018, because for an authorised substance. In real- need to be as generic as possible oth- mine, the earlier the better in order Witney, UK as coil coatings. How can anyone sub- it takes a long time to develop alter- ity, most coated articles will release at erwise we will be in an unworkable to be ready ahead of time. The only Tel.: +44 1993 707400 stitute a raw material and obtain the native additive cocktails. least one or more molecules at some situation. certainty today is that: Fax: +44 1993 775579 relevant performance data necessary Consider a manufacturer or im- point in their lifetime, particularly if It is understood that the safety  Some of our raw materials will dis- [email protected] if they only know weeks before the porter just below a threshold. They land fill sites are considered. Until data sheet (SDS) is the primary appear www.valspareurope.com Journey to the Copper Age Advances in Dual Damascene Copper Deposition Technologies

n 1997 and 1998, the electro-deposition cal vapour deposition process (CVD) tion with inhibitation across the chip For wafer metalization technology, absorption of organic additives from face and offer so a feature to control was a potential candidate, but high structures and so across the whole the fountain plater equipment dem- the electrolyte solution on the surface defects. However, this lowers the cur- of copper for advanced semiconductor aspect ratio and small geometry plat- wafer. onstrated overall the best results. of the copper anode. This however rent density reduces the deposition devices were reported as a solution for ing could not be accomplished at low For the small geometries used with The fluid dynamics can be controlled created a “burst of particles” with rate, the chemistry flow towards the I defect levels. High vacuum sputter the dual damascene technology, a bot- best and so within wafer and wafer every start of the plating mode and wafer surface and requires addition- the need of copper metalization necessary technology was also not achievable tom up filling capability is essential in to wafer variations minimized. The in particular after a longer stand by al maintenance in the “heart of the for advances devices. Advanced devices are for thickness around 1 µm. Finally, order to avoid holes or seam defects wafer edge contacts, rotation and the time of the tool. The adsorbed organic equipment.” the combination of a sputtered Cu- in the middle of the plated structure. cup overflow are the key variables in material was de-composed and could defined as semiconductors with high current seed layer of ~100 nm and further Due to the variable current density the design approach. be measured as fine particles via opti- The Third Step in Technology load, high operating frequencies and further enhanced to around 1.2 µm by elec- on the structures, the additives play Several chemical companies of- cal laser counters (OLC) in-situ and troplating showed the best results for a key role to support this task. The fer plating chemistries (electrolytes), within the plating cell. To overcome the limitation of gas scalable small geometries. However, the volume production. selection of additives depends on the including dosing concepts for the Several defects have been found bubble formation by de-composition shrinkage of the geometries the resistivity However the wet chemistry elec- equipment concept used, the mode organic additive systems. Therefore, leading to the conclusion that this of water during the plating, Atotech troplating technology has changed of operation and the structure of the a wafer-product tailored chemistry effect is the main contributor due introduced a patented new concept of the metal lines affect the gate delay of the a lot since the beginning and is still devices. can be offered which fulfils the device to the adsorption of the fine par- by adding an iron redox-mediator connected transistors. Copper has demon- looking for further enhancements Due to the device design and its requirements in a volume production ticles on the surface of the wafer system into the copper electrolyte. to optimise the process results. The use in different applications the vari- environment. However, what chem- structure. These defects, however, This concept allows to plate directly strated around 40 % reduction in resistance challenging requirements of yield- able geometries range from large to istry should be used has been widely create a risk of limiting yield- and from the anode to the cathode with- compared to Aluminum the main metaliza- and reliability-performance of to days small and to variable size-geometries influenced by equipment companies reliability-results. To overcome this out using a membrane or any other and future devices allow innovative next to each other. The copper depo- who offer the “total solution concept.” disadvantage, the soluble copper gas bubble “trapping devices.” tion material of the past. solutions to be introduced into manu- sition mechanisms are influenced These concepts contain the equip- anode has been substituted by inert The reaction of the Iron media- facturing. by the size and the layout of the ge- ment, the chemistry and pre-evalu- anode concepts where the copper tor prevents in the a certain range This gate delay is mainly influenced The electromigration performance ometries and range from mass trans- ated/qualified operation conditions. source was placed outside the plat- of current densities that the water by the resistance behaviour of the of copper over aluminium has been port to diffusion controlled. This leads This concept was implemented in ing chamber. is decomposed and so no gas bub- material, which will further increase published to range from 10x to 100x to variation in the texture and the the first generation of tools where This reduces the adsorption of bles are formed. Thus techniques with further decreasing feature siz- but even further enhancements are performance of the deposit across soluble copper anode and a separate additives and so the particle gen- allow higher current densities and es. The electrical resistance of the needed for future metalization tech- the chip structures. However, thick- tank for the electrolyte was used to eration. However, the disadvantage so higher deposition rates. However,

structured material is proportion- nologies. ness distribution of ~2 % is achievable feed the plating cells while etching of decomposing water (H2O) of the extensive characterisation of the reli- al to the length of the wiring and today. and cleaning cells where added into electrolyte became a risk; gas bub- ability data and the deposited copper inversely proportional to its cross- The Start-up Copper With mass production soluble the equipment as well. bles were formed, which was then showed, that traces of Iron has been sectional area. Overall, as the radius Deposition Technology copper anodes, mostly doped with trapped on the wafer surface like incorporated into the copper film of the wiring decreases the intercon- phosphorous, has been used in com- The Second Step in Technology small particles. as well, but the iron seems to take nect time delay increases which is Copper electrolytes for metal plat- bination with the sulfuric based This disadvantage, especially “dangling bonds” of the copper crys- the opposite what the technology ing contain a inorganic matrix based electrolyte. This combination offers With the production implementation at higher current densities, can be tal structure away leading to a more is asking for. The metalization for mainly sulfuric-acid based at low the necessary conductivity and the of the Cu-soluble anode, the product minimised at reduced current den- perfect and robust copper structure. devices above 130 nm technology concentrations. Specific organic ad- solubility of the copper for the plat- and operation database has been sity and or by adding a “gas bubble Several parameter results support showed the need for a technical ditives have been added to influence ing process. Limitations in the con- significant enlarged and several sur- trap,” separating the anode and the this conclusion. solution while devices at or below and control the deposition behaviour centrations are defined in the defect prises has been supported by better cathode room e.g. a membrane mate- The resistivity (Rs) has been found 130 nm require solutions to this in the structures on the wafer. They density, which increases at higher statistical bases. Most significant was rial. Gas bubbles and small particles in a 1:1 comparison to be lower com- limitations in order to achieve the balance copper deposition accelera- concentrations of the sulfuric acid. the need of a anode burn in and the can be kept away from the wafer sur- pared to the other described depo- performance targets. sition techniques. Reliability stress- measurements in different applica- Alternatives To Aluminium tions have shown up to 7 % lower failure rates for early- and end of life Significant effort has been put in failures. Most significant are better the development of alternative electro-migration and stress migra- materials to aluminium (resistivity is tion results. It should be mentioned of 2.65 µOhm cm) for many years. As that the comparison of reliability alternative materials copper offered results are very difficult due to the a resistivity of 1.68 µOhm cm and sensitivity of the failure mode and the demonstrated to fulfill all electrical test device used. Therefore, different needs best. As an option, silver with chemistries where used in this com- resistivity of 1.50 uOhm cm was eval- parison as close as possible compari- uated as well but showed limitations son from the equipment- and device- in the electro- and stress-migration and test condition- point of view. performance. Copper (Cu) performs overall best Industrial Usage in comparison for gate time delay and reliability robustness and can The first industrial use of the concept be managed to most users needs. was introduced in 2002 for semi- At the beginning of the development conductors qualified to automotive of aluminum alternatives, different reliability specifications and is still deposition technologies were evaluated for their capabilities. Chemi- Atotech wafer technology E Continues Page 17

[email protected] CHEManager Europe 4/2007 ChemiC al Distribution Page 17 More For Less Comments on the Chemical Distribution Consolidation Trends

he chemical industry has In 2000, the total amount Behind the cards, we saw commercially by channeling 1990s with the result that the modity chemical distributors The chemical distribu spent in M&A in chemical dis here the battle for the North more business to the recently number of companies involved dominate the market and are tion market looks fragmented recently entered again into an tribution reached an all time American and global industry merged or acquired companies. in bulk chemicals distribution able to directly influence their when we only look at the total intense restructuring phase, record above €1 billion, in leadership as well as Brenntag’s The involvement and support of has been drastically reduced. suppliers’ policies and strate number of companies involved T 2003 we reached €2 billion. In positioning for their intended some producers was visible in In most countries the number gies. In the near future, we will in chemical distribution in each without having reached yet the bot- 2006 the total amount of M&A IPO. the Chemcentral process. of distributors able to buy and witness the final bulk chemi country; this is well highlight tom of the business cycle. This new in chemical and polymer distri This happened also recently receive bulk chemicals on their cals distribution consolidation ed on www.chemagility.com, bution reached globally circa Producers’ Strategies when European distributors own sites and ship them as bulk phase. an internet search engine and shake up results from a combina- €4 billion and in the first quar expanded their market cov chemicals in small trucks, re On specialty chemicals, the directory focused on chemical tion of several factors such as higher ter of 2007, we already reached In this changing environment, it erage in Central Europe and turnable containers or IBC’s market looks more fragmented distribution. the same level as in 2000. The is essential for us to understand in Turkey. In Central Europe, is never above ten. In smaller and producers are still influenc However, when we analyse energy costs, slower growth on the total number of 2006 identified chemical producers’ strategies chemical distribution is signifi countries, this number is rarely ing this market as they have the position of the five top dis mature European and North Ameri- and publicised transactions is as they impact significantly the cantly dominated by subsidiar above five. It is also safe to as many more channel options tributors in each country serv above 30, of which about half distributor scene. Producers ies of foreign distributors. The sume that within a few years than for commodity chemicals. ing the main industry sectors, can markets, growing environmen- had a global dimension and namely coatings; adhesives and tal compliance costs and increasing some saw the arrival of new sealants; cosmetics; rubber; players. food and feed additives; and Asian competition for specialty and In 2006, the Noble Group composites, we realise that the fine chemicals, as well as newly built of Singapore acquired Dutch market is less fragmented than trader and distributor Oxide what we initially thought. petrochemical plants in the Middle Chemicals and Gadot of Israel Due to the rising Reach East. bought Bax Chemicals. Brenn compliance costs and other tag simultaneously strength complexities, it is predictable This restructuring takes the ened their positions in the U.S. that many smaller distributors form of inefficient capacities with LA and Quadra acquisi will seek an exit by selling their shut down, new investments tions and in Europe with Albion, operations to the best bidders. near the fast growing con Schweizerhall and Herkommer Many of them are struggling sumer markets and significant und Bangerter. Brenntag also to keep their business even as M&A activities. These activi set foot in North Africa with they must run all the time find ties are facilitated by the easy the acquisition of Groupe Alli ing new suppliers only to com access to cheap financing and ance. Univar acquired a small pensate the loss of old ones. the dynamism of private equity distributor in Shanghai called Mediumsize or larger national investors. In turn, the chemi Shanghai Jixing. IMCD already distributors have the option to cal distribution sector mirrors present in Australia and New carry on their business or seek precisely all these trends in a Zealand bought Solvadis in an exit with a strategic buyer, significant and sometimes spec South Africa. Azelis changed which is more problematic tacular manner. In this article, hands for the third time since when they already have a size we will focus on the impact of 2001 by being acquired by 3i over €100 million. these trends on this important Equity. sector of the chemical industry On the polymer side, Rava More For Less highlighting the consolidation go investment into Mulhstein trends, producers’ new strate Corporation creates a global The ongoing chemical distribu gies and the reshaping of the US$5 billion group of compa tor market consolidation and chemical distribution industry. nies involved in polymer dis restructuring will reduce the tribution, trading, compound number of channel options Endless Consolidation Trends ing and recycling with a com available to suppliers and cus prehensive polymer portfolio, tomers. The chemical distribu The main reasons behind the including commodity, specialty tors, who have the resources chemical distribution consoli and technical polymers, in addi to cope with increasing op dation trends are known: tion to their own manufactured erational and environmental  Increasing costs to stay in compounds. costs, will operate in a less business due to more com In the first quarter of 2007, fragmented and more profitable plex health, safety and envi we already saw about 10 competitive environment. It is ronmental legislation M&A of chemical distributors. partly this growing perception  Unsolved succession issues in Brenntag acquired Lawrence which is gradually pushing up privately owned companies Chemicals and Ulrich in North Reasons for consolidation in the chemical distribution industry include increasing costs, high customer expectations and range of coverage. the value of the well positioned  Customers’ increasing re America. By acquiring the distributors now for sale. quirements for expertise, number four U.S. distributor have a significant influence on local or national distribution most independent bulk com Some leading European players It seems safe to assume that product portfolio and serv Chemcentral, Univar regained the chemical distribution mar concept was not in place there modity distributors will be part like Brenntag, Univar, IMCD or chemical distribution is gradu ices globally its number 1 in chemi ket, particularly when they take in the nineties and did not of bigger international groups Azelis are already leading the ally moving in the same direc  Larger producers’ growing cal distribution and strength a strategic approach to chan significantly materialize there or will survive as large national market and some other inter tion than polymer distribution support to companies offer ened significantly its position nel management and increase after. organizations such as Quimi national companies like Omya, did recently, where seven Eu ing them wider geographical in North America. Brenntag their business with a smaller droga or Penta, which have Warwick, Keyser and Mackay, ropean polymer distributors coverage, sufficient people mingled into the Chemcentral number of selected distributors. Shaping Up The enough regional critical mass Nordmann Rassmann, Grol control 50 % of the polymer dis resources and cost optimisa acquisition process by bidding They have a direct influence Distributor Markets to carry on. mann or Biesterfeld Spezial tribution market. Knowing who tion opportunities. over the Univar US$600 mil on the distributors’ margins On bulk chemicals, produc chemie play a major role. those 10 – 15 chemical distribu  Channel internationalisation lion firm offer by offering late through their pricing policies We are facing two very distinct ers have no other alternative In addition, we find in each tion companies will be in 2015 and the need for critical mass in the game US$100 million and they may also grant dis market situations, namely for than closely cooperating with country some well managed is still an unanswered question, stimulate the growth of bigger more. In addition, Univar had tribution rights for new prod commodity or liquid chemicals Brenntag, Penta or Univar, national distributors like Uni but not for long. distributors at the expense of cleverly negotiated a bitter ucts and formulations to their where a few distributors lead which are the only companies pex in France, Quimidroga or smaller ones. pill of US$22 millions which partners. Conversely, they may the market and for specialty operating many bulk and haz Indukern in Spain, Eigenmann E Contact: a challenger would have had cancel distribution rights when or factory packed materials ardous chemicals sites across and Veronelli in Italy, Algol in Marc Fermont All these factors will continue to pay before entering into necessary or when a company where chemical manufacturers several European countries. Scandinavia or Lehman und Districonsult to dominate the chemical dis the negotiation. Univar is pay is taken over. They can also have apparently more channel Brenntag operates around 150 Voss in Germany who among Leysin, Switzerland tributor scene and contribute to ing the final price of US$650 support their strategic part options and influence. sites in Europe, Univar 50 sites many others have a strong mar Tel.: +41 2449 42380 its further consolidation, while million to the shareholders in ners in their M&A activities by For bulk or commodity and Penta around 60 sites. As ket position and offer their sup Fax: +41 2449 42381 giving a new competitive sce cash based on a 9.3 EBITDA identifying acquisition targets chemicals, the European mar a result of this recent consoli pliers regional alternatives to [email protected] nario. multiplier. and supporting their partners ket scene was shaped up in the dation, the few remaining com the transnational companies. www.districonsult.com

Journey to the Copper Age

SPECIAL RATES ANNUAL E Continued Page 16 vice requirements. Reliability Atotech has introduced a new targets can be met and influ generation of chemistries tai FOR CEE3RD EUROPE DELEGATES! AND CONGRESS successfully used. Since then, lored to high performance other applications and evalua reliability robustness for cop “Market Transformation - Overcoming Challenges” tions at institutes and custom per depositions at reduced 10-12 June 2007 ers have confirmed the superior operating cost. Several base Chemical Distribution in the 21st Century Le Méridien Montparnasse, Paris performance. electrolytes are available and Looking from a different qualified for different semicon angle to the inert anode/redox ductor applications showing system, a lower and slower superior reliability perform Key Speakers include: Congress highlights: decomposition of the additives ance results. Lower resistivity in the solution can be stated Photo: Pixelio and lower additive consump Marc Schuller, President, Arkema Industrial Chemicals • Private equity investors revolutionise the chemical distribution sector Stephen Clark, CEO, Brenntag Holding GmbH as significant. Therefore, the tion are positive side effects • Growth opportunities in chemical distribution Peter Fields, COO, Azelis group concept also can be seen also enced by varying the different beside a significant gain in • Innovation and competitiveness of the Chemical Industry Otto Linher, Head of Sector, DG Enterprise & Industry, • The new European Chemical Agency as a cost advantage of >30 % acid levels, Copper concen electromigration and stress European Commission • REACH: the new role of the Chemical Distributor in the supply chain based on the lower additive trations or additive systems migration results, generated Olav van Caldenborgh, CEO, Caldic BV • Consortia formation and data sharing under REACH consumption. Less byproducts optimized for the use in inert within different reliability Patrick Viterbo, Board Member, 3i/Azelis Group are formed and so not enriched anode/redox mediator concept specifications. David Owen, Health & Environment Science Manager, Shell Chemical • Market implications of REACH in the electrolyte solution. Low equipments. The redoxmedia John Everett, Purchasing Manager, Dow Chemical Company Sponsors: er impurity levels are detected tor is in trace quantities add Jutta Heckenkamp, Head of corporate Purchasing, Fuchs Europe via SIMS analysis leading to the ed and can be controlled via Keith Huckle, Chief Product Steward and Risk Manager, Dow Corning conclusion that the copper tech the online analytical system Axel Schmidt, Director Distribution Management, Wacker Chemie AG nology using a redox mediator which is available to monitor E Contact: Moderator: concept offers significant tech and control the entire process Robert Preisser Marc Fermont, Senior Partner, DistriConsult nical and commercial advan within the settings of process Atotech Deutschland GmbH In Cooperation with: Official Congress Publication: tages as well. windows. Berlin, Germany To Register and view the latest Delegate list visit: Today several different base With the introduction of a Tel.: +49 30 349850457 electrolytes are available tai inert anode/redox mediator [email protected] Ref: WN1003_CME2 www.fecc-congress.org lored to fulfil individual de controlled copper electrolyte, www.atotech.com

[email protected] Page 18 Pharma CHEManager Europe 4/2007 The German Drug Market Reforms Could Endanger Pharmaceutical Innovation

he drug market has been rig- insulin, will be totally excluded ment is ensured throughout the from reimbursement. period of ‘long-term outcome- idly controlled by regulations The time to re-think the data collection’ – for example for many years now, both cost-containment policy and after conditional reimburse- T to deregulate the drug market ment within the framework of nationally in Germany and internation- has come. The German health post-approval studies and drug ally. Pharmaceutical companies never- policy must commit itself more registries. If the answer is no, decisively to the value of inno- the investment risk becomes theless have experienced a significant vations in order not to further even greater, threatening to growth if highly specialised biotech in- damage the German drug mar- suffocate the almost 100 %-pri- ket’s reputation. vately financed research. novations in niche markets have been From the industry’s point-of- a part of their portfolio. However, the The Challenge for Innovative view, it is extremely important Enterprises that the general requirements current German government wants for the drug evaluation are not to particularly control the increasing Many of the discussions tak- only possible to plan, but that ing place in Germany as to the they remain consistent over health care expenditure in this mar- role of medication in health the approximately 10-year- ket of biotech innovations, which is care focus on short-term costs. long development cycle and Efforts are constantly being are not changed one-sidedly. a key driver of economic growth in made to cut down costs spent It is interesting to observe that Germany. The annual drug expendi- on medication – with 10 reform for certain substance groups laws in the last 10 years alone such as antidepressants new ture increase amounted to about – in order to contain medication requirements have been intro- €1 billion – or 4 % of the total mar- costs that are increasing at an duced by new Health Technol- exponential rate. At the same ogy Assessment (HTA)-agencies ket. As the other market segments of time, a growing number of voic- (that have, in the meantime, generics, OTC-drugs and analogue es are proclaiming that patients been established) 20 years will have little or no access to after beginning of the research drugs are already highly regulated, the new medications in the future, that were completely not fore- only remaining growth opportunity in becoming effectively cut off seeable at the time of clinical from medical progress. development. The argument for the German drug market is at risk. From the industry’s point of unchanging criteria includes the view, modern medical care is rejection of previously accepted If the government decides caught up in conflict between onwards “true innovations” maximum reimbursement lev- were not nearly as able to up- voluntary addiction to bigger surrogate parameters, despite to introduce the cost-benefit increasing research costs and will be exposed to detailed els if they are unable to prove date their success story of the dimensions, but rather from the fact that they were used assessment proposed by the longer periods of development scrutiny in the review process. their cost-benefit in the IQWIG previous years. Active indus- a necessity to manage the as a dependable clinical proxy German Institute for Qual- on the one hand, and sinking A not-too-unlikely scenario: If assessment. However, so far no trial politics in Germany there- growing risk associated with within the development process ity and Efficiency in Health medical reimbursement cover- the cost-benefit evaluation of a new drug has managed to show fore means actively supporting research and the accompany- towards approval. Care (IQWIG), which is asso- age and increasing uncertain new drug ends without showing additional benefit according to biotechnological innovations in ing risk-related investments. The high expenditure for ciated with a mandate to the market access on the other. One cost-benefit, and the manufac- IQWIG, making the hurdle to economic politics and health This new corporate focus on the research and development of Federal Joint Committee to of the main reasons for the new turer does not accept the pro- show better cost-benefit for care legislature, and improv- few blockbuster molecules can about 15 % of turnover raises assign maximum reimburse- uncertainty in Germany is the posed reimbursement price, innovations almost insurmount- ing their market access – in the mean considerable business high expectations for investors ment prices, it will be obvious recent critical decisions made patients will face significant co- able. best interest of the patient. risks when drugs experience on their return on investments. that the political paradigm to by the German Institute for payments, or must abstain from The real problem is the vary- a change of their risk-benefit- Grabowski and Vernon (2000) save on old drugs and invest Quality and Efficiency in Health the treatment opportunity. ing opinion about what consti- Innovation Catch-22 equation over time. Numerous compare i.e. the risk of invest- into innovations no longer will Care (IQWiG). These evalua- tutes a true innovation. The examples from the past several ing in drug research with that hold true for Germany. Quite tions listed individual types of Conflict Between Expectation “good” true innovations are At the same time, a signifi- years show the immense impact of investing in a company start- the contrary: Innovation will therapy as being not recom- and Ability those that have revolutionised cant concentration process of that it can have on a business up. The return for capital inves- become a prime focus for cost mendable for statutory health the therapy of multiple sclero- research and development is when blockbuster molecules tors in drug research ought to containment exercises. Ger- insurance coverage due to what True innovations have wide- sis and rheumatoid arthritis, taking place in the industry, as lose their approval for use or be comparable to the returns man pharmaceutical industry the institute determined to be spread societal acceptance. have created new treatment only an oligopoly of manufactur- have it significantly limited (ex- of the venture-capital inves- is facing a tougher environ- an unsatisfactory amount of Economic politics treats inno- options for patients with can- ers can support the evermore- amples include COX-2 inhibi- tors. On a long-term scale, pri- ment, and German patients are evidence based medical data. vations with special patent pro- cer and have helped to treat intensive research costs. The tors, statins, and natalizumab). vate research can only remain facing an even harder access to From April onwards, the tection provisions, and the true and avoid infectious diseases. industry is caught up in an “in- Affected corporations not only feasible if the investment in new medicines as in the past, new legislations for negotiating innovations have in the past in True innovations, very often of novation-Catch-22”: corpora- lose immediately up to 20 % of research and development can either because co-payments reimbursement prices of inno- Germany been exempted from biotechnological origin, have tions’ necessity to achieve great their net worth – which means be refinanced on the health will rise if industry does not vative therapies after or instead the establishment of reference launched a medical revolution success in research, which con- significant corporate restruc- care market. If innovative drugs accept the maximum reim- of a cost-benefit assessment will prices. The new reform to be by creating unexpected new tinues to become more pressing turing at the very least. are worth their price (i.e. they bursement prices, or because end the paradigm of the “wish- enacted in April continues perspectives for patients. For due to the tremendous increase The increasing oligopoliza- offer a value for the money), it new drugs, such as inhaled ful innovation,” as from then to exclude these drugs from those pharmaceutical com- in research and development tion of medicinal research is has to be equally possible for panies that have deliberately costs, while simultaneously leading to even more intense those companies to refinance taken on the risk of research- the chance to earn the money research competition: the their investments (i.e. receive ing true, biotech-innovations, spent on research back from phase of relative exclusivity on money for value). Cost-cut- ThermoNow Scientiﬁ sold as their products have on occasion the market is sinking. It also the market for new approvals ting politics run by sheer fiscal brought them financial success seems extremely difficult to in medical innovation (NCEs) thinking and focusing on the – much to the likes of industrial replace the highly profitable, is shorter, as research steadily reimbursement of innovations and health care politics, which older blockbuster drugs with becomes more efficient. Cor- as being at the heart of industry

c have always emphasised their new substances from the pipe- porations are constantly being policy, is of danger of damaging desire to amply remunerate line. In fact, the increasing in- forced to ponder whether or not the prospects of German indus- true innovation, as the true risk novative competition is basically they should seek quicker mar- try. Limiting the reimbursement in taking on biotech-research is requiring companies with their ket approval by keeping the of innovations always carries an up to 50 % higher investment own research and development drug’s area of application more the risk of damaging the Ger- than those required for chemi- departments to change their limited than it would necessar- man pharmaceutical industry cal innovation. Consequently course about every ten years, ily have to be, or if they should and could end up with export- the reward for investing about as their already-patented sub- continue collecting data in order ing not only highly qualified US-$1.2 billion should reflect stances eventually become com- to widen the registered thera- jobs but also expertise to other these additional risks. pletely substituted with generic peutic areas. The call for long- countries. The national origin of a com- brands. At the same time, the term outcome data makes the pany plays little or no role in expected dynamic development development of drug therapies E Contact: forecasting its future financial demanded by international even more expensive, as the in- Dr. Timm Volmer .PSFUIBOZPVµWF success on the German mar- markets becomes more and novation’s access to the market Wyeth Pharma GmbH ket. What is considerably more more difficult to attain. is delayed. In this regard, the Münster, Germany remarkable is that those com- The necessity for success in required collection of the out- Tel.: +49 251 204 1907 FWFSFYQFDUFE panies who played the biotech research (and therefore capi- come data will lead ultimately Fax: +49 251 204 1905 innovations card quite early tal success) has started an un- to the further consolidation of [email protected] in the game have experienced precedented wave of corporate the industry. The important www.wyeth.com )Z$MPOFµT DPNQSFIFOTJWF QSPEVDU QPSUGPMJP PG TFSB NFEJB more success. In comparison, consolidations in the pharma- question for the industry is not QSPDFTTMJRVJETBOE#JP1SPDFTT$POUBJOFST5. #1$ TVQQPSUT the classic small molecules- ceutical sector. The mergers whether data can be collected Part 2 of this series will cover ZPV GSPN ESVH EJTDPWFSZ UISPVHI UIF DMJOJD BOE NBSLFU focused chemical corporations haven’t been prompted by a or not, but rather, if reimburse- true innovation BVUIPSJ[BUJPOVOUJMSPVUJOFQSPEVDUJPO

0VS31%TDJFOUJTUTIFMQZPVJOEFWFMPQJOHZPVSDVTUPNJ[FEDFMM DVMUVSFNFEJVN)Z$MPOFµTTJOHMFVTF#1$TQSPWJEFUIFIJHIFTU Dow: Capital Investments Planned The Future of Device Integration RVBMJUZ JO TUFSJMF IBOEMJOH BOE BMMPX GPS JOEJWJEVBM QBDLBHJOH DPO¾HVSBUJPO Dow Polyurethanes, a business polyols name-plate capacity at For device operation two tech- The attention that the pres- unit of The Dow Chemical Com- the site by 180 kt/y. nologies with a high level of entation of the concept raised pany, announced that it plans Dow has also implemented overlapping and yet differ- during the general meeting of 0VSMBUFTUEFWFMPQNFOUTJOTJOHMFVTFQSPDFTTJOH to further invest in Europe by an incremental, world-scale ent philosophies are currently Namur emphasises how topi- 4JOHMF6TF#JPSFBDUPS´46#5.µBOE4JOHMF6TF expanding capacity at two of capacity increase at its propyl- established. While both EDDL cal and important this issue is. .JYFS´46.5.µIFMQZPVUPNBLFZPVS 7JTJUPVSTUBOEBU its facilities over the next two ene glycol (PG) manufacturing (Electronic Device Descrip- To further detail the concept QSPEVDUJPODMFBOFSBOETBGFS &4"$5 JO%SFTEFO years. The company plans to facility at Stade, Germany. The tion Language) and FDT (Field ITM developed a white paper +VOF° increase name-plate capacity at project, which was completed Device Tool) hold their specific and issued it to ECT (EDDL &NBJMQFSCJPFVSPNBSLFUJOH!UIFSNP¾TIFSDPNUP its polyols plant in Terneuzen, in 2007, increased capacity advantages the situation for Cooperation Team) and FDT SFDFJWFZPVS$BQBCJMJUJFTBOE4FSWJDFTDBUBMPHVFGPSGSFF 'PSZPVSJORVJSJFT QMFBTFDBMM1FSCJP4DJFODFPO The Netherlands, by 180 kt/y at the facility from 190 kt/y to system vendors, device manu- Group respectively in order to and at its propylene glycol (PG) 225 kt/y. A second expansion facturers and especially end get their opinions. The positive #JP1SPDFTT$POUBJOFST $FMM$VMUVSF.FEJB 4FSB 1SPDFTT-JRVJET facility in Stade, Germany, by project, which will be complet- users is extremely unsatisfy- comments of both organisations 1#"% 80 kt/y.Dow recently completed ed in 2009, will add another 45 ing. Therefore, the Institute for mark a milestone in the field of a year-long feasibility study to kt/y of PG capacity to the plant. Information Technology in Me- device integration as they show 1FSCJP4DJFODF#7#" 5FM evaluate the expansion of all By year-end 2009, PG capacity chanical Engineering (ITM) de- such an amount of agreement *OEVTUSJF[POF****OEVTUSJFMBBO 'BY #&&SFNCPEFHFN QFSCJPFVSPNBSLFUJOH!UIFSNP¾TIFSDPN polyol product lines at its exist- at the site will total 270 kt/y, veloped a novel concept that in- that the chances for a joint solu- XXXUIFSNPDPN ing facility at Terneuzen. Based making Dow’s Stade plant the tegrates the advantages of EDDL tion are very good. XXXIZDMPOFDPN on the results of that evalua- world’s largest PG facility. and FDT into one universal and tion, the company will expand E www.dow.com clearly structured architecture. E www.itm.tum.de

[email protected] CHEManager Europe 4/2007 PeoP le · e vents · AwA rds Page 19

Arkema Awarded Prize Arkema, through its subsidiary proving environmental impact perature of the road surfacing François Loos, Deputy Minis- CECA, has been awarded a med- and working conditions. material without impairing its ter for Industry, rewards every al for the Pierre Potier prize in Arkema’s Centre de Recher- performance. Compared with year chemical manufacturers the category “chemistry at the che Rhône-Alpes has developed the traditional road surfacing who engage in “innovation in service of the environment” in for CECA, the Company’s Spe- process, the use of this additive chemistry for the benefit of the recognition of its formulations cialty Chemicals subsidiary, a cuts down energy consumption environment.” for bitumen blends. According surfactant additive based on by up to 50 %, leading to a drop to Arkema, this major innova- at least 50 % renewable raw in gaz emissions, and generates tion helps reduce energy con- materials which, blended with considerably less dust. sumption on road construction the bitumen, helps lower by The Pierre Potier prize, set sites, while significantly im- some 50 °C the application tem- up in 2006 on the initiative of E www.arkema.com

Albemarle Corporation Names VP and CEO Albemarle Corporation said that its board of directors has named John M. Steitz as executive vice president and chief operating officer of the company. Steitz will oversee all aspects of Albemarle’s marketing, Heinrich Emanuel Merck Award 2007 sales, research and supply chain activities. He will maintain his focus on improving The Heinrich Emanuel Merck for chemists aged 45 or younger dots for cancer targeting and electrostatic mass analyzer margins, increasing cost efficiencies, promoting innovation in new product develop- Award 2007 for Analytical who are developing new meth- imaging. He is known for his of the orbitrap type. In this ment and ensuring premier service to Albemarle‘s clients around the globe. Chemistry will be bestowed ods of chemical analysis with numerous contributions to the instrument, a linear ion trap E www.albemarle.com this year on two leading sci- applications that will benefit field of application of quantum- mass spectrometer is coupled to John M. Steitz entists – Professor Dr. Shum- mankind. The work should be confined particles. Because of an orbitrap mass analyzer via ing Nie, the Wallace H. Coulter directed toward the improve- their broad excitation profiles an rf-only trapping quadrupole Distinguished Chair Profes- ment of the human condition, and narrow emission spectra, with a curved axis. The whole Chemtura Names Stephen Forsyth CFO Chemtura Corporation has appointed Stephen sor of Biomedical Engineering providing solutions to analytical quantum dots are best suited to configuration allows wide mass C. Forsyth as executive vice president and chief financial officer, effective 30 April. (Emory University and Georgia problems in the areas of life sci- optical multiplexing to address range analysis with high resolv- Forsyth will succeed Karen R. Osar as executive vice president and chief financial Institute of Technology, Atlan- ences, material sciences or the genes, proteins and small-mol- ing power, mass accuracy, sen- officer, whose retirement from the company was effective in March. ta, USA), and Dr. Alexander A. environment. ecule libraries. sitivity and dynamic range for Kevin V. Mahoney, Chemtura’s senior vice president and corporate controller, is Makarov with Thermo Electron Professor Nie is being hon- Dr. Makarov is receiving a wide range of analyses, from serving as interim CFO pending Forsyth’s arrival from Hexcel Corporation, where he in Bremen, Germany. ored for the development of the award for the design and small molecules to proteins. most recently served as executive vice president and chief financial officer. Forsyth Each winner will receive multi-functional nano-particle construction of a hybrid mass Stephen C. has 16 years of operating management experience with Hexcel, including serving Forsyth €10,000. The award is intended probes based on semiconductor spectrometer based on a novel E www.merck.de as vice president of international operations, responsible for one third of Hexcel‘s sales, assets and employees, and serving as manager of various resins and chemicals businesses and international divisions. E www.chemtura.com Vetter Wins International Innovation Award

Vetter Pharma-Fertigung was detailed design to complete future. The site, which was ceutical Processing Magazine, Arkema Announces New Appointments Arkema is reorganising its Vinyl Products business segment announced as the winner in validation. The new produc- completed in October 2006 is and represent a cross-section by splitting its Chlorochemicals and PVC business unit into two separate business units: Chlorine/ the Process Innovation category tion site maximises the use of completely self-sufficient with of a global industry, with this Soda and PVC. The other two business units, Vinyl Compounds and Pipes/Profiles (Alphacan), of the third annual Facility of automation and maintains the its own utility and power supply year’s winners spanning the remain unchanged. Moreover, the Vinyl Products business segment will have its own industrial the Year Awards (FOYA). The highest standards in terms of and has a capacity of 90 million U.S., Japan, China and Ger- management structure for its entire activity. As part of this reorganisation, Otto Takken, Vinyl contract manufacturer from sterility, safety, and quality. The units per year. many. Products Vice President, has announced the following appointments: Frédéric Marot-Achillas, Ravensburg, Germany, was two filling lines feature brand The FOYA are sponsored by Group President PVC business unit; Denis Tual, Group President Chlorine/Soda business unit; and commended for its new facility, new Restricted Access Barrier the International Society for Gérard Robert, Industrial Director for the Vinyl Products business segment. Ravensburg Vetter South, which System (RABS), with plans for Pharmaceutical Engineering E www.arkema.com took 36 months from start of a further two lines in the near (ISPE), Interphex and Pharma- E www.vetter-pharma.com

DSM Announces Appointments Wei-Ming Jiang, currently senior vice president strategic projects Asia at DSM’s Corporate Planning Department, has been appointed president DSM China as of 1 May. He will succeed Stefan Sommer, who will continue his assignment as strategic advisor to DSM’s managing board. Stephan B. Tanda has been appointed as member of the managing board of DSM as of 1 May. Tanda started his career in 1991 with DuPont in Switzerland. Apply today for your E www.dsm.com Stephan B. Tanda free* subscription Changes in Chemson Executive Board The executive board of Chemson group, extended for the restructuring of the Chemson Europe, leads back again into the previous number of members of Please photocopy the form, complete all sections and fax it back the board. Peter Haidenek has stepped down from his executive committee position at Chemson Fax back on +49 6151 8090 168 and has left the company after conclusion of the substantial restructuring measures. E www.chemson.com Please answer all sections by filling in the boxes 1. What is your company´s primary business? 2. What is your job function Dow Corning Names New Group Director Eriko Sakurai has been named global (fill in one only) (fill in one only) industry executive director for the Dow Corning Expertise-Based Industry Group. Sakurai will be responsible for all aspects of customer relations, sales, technical Chemicals and Petrochemicals Managing Director/CEO/President Engineering Manager support, marketing, channel management, product line and technology development. Previously, she served as the global industry marketing director for the Dow Life Sciences (Pharma, Biotech, Agro) Head of Plant Operations Head of Production Corning Life Sciences industry. Plant Construction/Engineering Sales & Marketing Manager R&D Manager E www.dow.com Plastics IT-Manager Purchasing Manager Eriko Sakurai Consulting Logistics Manager Head of QC Food & Beverage Commercial Director Other (please specify) Chemtura Names New Group President Chemtura Corporation has named Robert S. Wedinger to the position of group president, performance specialties (Petroleum Site Management Additives, Urethanes, Polyurethane Dispersions, Fluorine, and Optical Monomers). Other (please specify) Dr. Wedinger also serves as Chief of Staff, Chemtura Corporation. He joined Chem- tura in May 2006 with responsibility for the rubber chemicals and EPDM polymers businesses. 3. How many people are employed in your facility? 4. Do you recommend, specify or authorise the purchase of services, E www.chemtura.com equipment and supplies? Robert S. Fewer than 20 20–100 Wedinger 101–500 501–1,000 Yes 1,001–5,000 5,000+ No

5. Do you plan to purchase or invest in any of the following in the future? Pharmaceutical Outsourcing Conference (fill in all that apply) Strategic Research Institute’s pertinent to all sized pharma- entists with interest and exper- Raw Materials Processing/Manufacturing Equipment 11th Annual Pharmaceutical ceutical and biotech companies, tise in contracting pre-clinical Engineering Services New Foreign Production Sites Outsourcing of Discovery Chem- CROs, CMOs and other types of and clinical drug development istry, Advanced Intermediates & suppliers. Through compre- services, primarily in chemistry Logistics IT Services/Equipment APIs will be held on 16-17 July hensive global coverage, the and manufacturing. Packaging Process Automation and Control at the Hyatt Regency in New conference caters to a unique Other (please specify) Brunswick, New Jersey (U.S.). blend of business development, The conference features issues senior level executive and sci- E www.srinstitute.com/outsourcing Please sign below if you wish to receive CHEManager Europe for free* Signature Date * free to qualifying readers in Europe Pharma Today – Pharma Tomorrow? Print your name and address The symposium “Pharma to- from the regulatory affairs, cal industry. Lectures will be in day – Pharma tomorrow” operational, design and plant German. Mr/Mrs/Ms First Name Family Name on 5 June at the Frankfurt construction as well as from a GIT VERLAG GmbH & Co. KG Job Title International Airport deals totally different industry, the E LSMW Roesslerstr. 90 with the development of the automobile industry, offer the Tel.: +49 711 8804 2835 Company 64293 Darmstadt, Germany pharmaceutical industry be- participants an overview over [email protected] Tel.: +49 6151/8090-0 yond the present. Speakers the future of the pharmaceuti- www.lsmw.com Address Fax: +49 6151/8090-168 [email protected] Postcode City Country www.gitverlag.com Tel. 00 Intl. dialing code Number (0) don‘t miss the next exciting issue of Fax 00 Intl. dialing code Number (0) Email CHeManager europe! out on 25 May!

[email protected] Page 20 AT A GLANCE CHEManager Europe 4/2007

The Chemical Industry in Europe The Key for Clean Air In addition to lattice. Degrada- Contribution to the EU Economy Number of EU chemical industry* enterprises, sales and nitrogen oxides and tion on the surface employment by size-class sulfur oxides, many is highly effective 70 Industry % volatile organic com- because free radi-

Financial economy 70 % 60 % pounds (VOCs) in air cals are present 63 63 26 % 21 % Agriculture 50 contribute to smog there. Presum- and high ozone lev- ably, oxygen from 2% 40 els, as well as poten- air dissociates on 6% Construction 30 tially damaging hu- the gold surface 23 % 22 % man health. Clean- to replace the con- % 20 % %

23 air laws are thus sumed oxygen at- 23 21 % of employment size-class 10 7 % rightly continuing oms in the lattice % % 4 % 4 %

Public services 2 % Services 10 10 to become stricter. structure. This 0 Number of enterprises Sales Employment Most modern air- process only works

% of GDP Micro (1–9) Small (10–49) Medium (50–249) Large (250+) purification systems are based These three major components if the material is produced in a * Excluding pharmaceuticals on photocatalysts, adsorbents of organic air pollution play a very specific manner: The gold Source: Cefic and Eurostat © GIT VERLAG © GIT VERLAG such as activated charcoal, or role indoors as well as out. All must be deposited onto the ozonolysis. However, these clas- three of these pollutants were manganese oxide by means of The chemical industry’s contribution to the EU gross domes- The EU chemical industry (excluding pharmaceuticals) com- tic product amounts to 2 %. This may seem small at first sight, prises about 27,000 enterprises (data covering firms with no sic systems are not particularly very effectively removed from vacuum-UV laser ablation. In but should be re-assessed taking into consideration both the employees are excluded), 96 % of which have less than 250 good at breaking down organic air and degraded by the catalyst this technique, a gold surface is shrinking contribution of industry as a whole to GDP in advanced employees and may be considered as small and medium-sized pollutants at room temperature. – significantly better than with irradiated with a special laser, economies (21 % in the EU) along with a rise in services and the enterprises. These account for 30 % of sales and 37 % of Japanese researchers have now conventional catalyst systems. which dislodges gold particles wide contribution of chemical products into all branches of the employment. Only 4 % of the EU enterprises employ more developed a new material that One secret to the success through evaporation. These economy. Additionally, one job in the chemical industry creates than 249 employees and generate 70 % of total chemicals very effectively removes VOCs of this new material is the ex- gold particles have unusually two jobs outside the chemical industry. sales. as well as nitrogen- and sulfur tremely large inner surface high energy, which allows them oxides from air at room temper- area of the porous manganese to drive relatively deep into the ature. As they report in the jour- oxide, which is higher than all surface of the manganese ox- Biotechnology nal Angewandte Chemie, their previously known manganese ide. This process is the only way system involves a highly porous oxide compounds. This large to induce sufficiently strong Biotechnology for medical use Patent registration for genetically engineered drugs manganese oxide with gold na- surface area offers the volatile interactions between the little (in %) noparticles grown into it. molecules a large number of clumps of gold and the manga- U.S. China Germany France U.S. Japan 60 To prove the effectiveness of adsorption sites. Moreover, the nese oxide support. Japan UK Belgium Other Germany Other their new catalyst, the research adsorbed pollutants are very ef- Original publication: Author: Anil K. Sinha 50 team headed by Anil K. Sinha fectively broken down. There is et al.; “Mesostructured Manganese Oxide/ 2.96 % 11.58 % at the Toyota Central R&D Labs clearly plenty of oxygen avail- Gold Nanoparticle Composites for Exten- 3.35% 40 carried out tests with acetal- able for oxidation processes sive Air Purification”; Angewandte Chemie 3.99 % International Edition 2007, 46, No. 16, dehyde, toluene, and hexane. within the manganese oxide 2891-2894. 6.95 % 58.82 % 30 4.76% 7.59 % 20 This issue may contain a supplement from 10 Forum Verlag Herkert GmbH. Market volume: US-$ 77.7 billion 0 2000 2003 2004 2005

Source: Datamonitor © GIT VERLAG Source: German Patent Office 2006 © GIT VERLAG Coming up in CHEManager Europe 5/2007: Biotechnology is considered to be one of the key technolo- Although the biotechnology branch currently enjoys a good posi-  Can profitability be restored to the global TiO2 industry? gies of the 21st century. It covers all methods, techniques and tion, companies also face the challenge of increasing productiv- products that use living organisms or their cells, sub-cells ity in terms of research and development. The ability for this  Reach: Developing strategies for complex registrations involving specialty chemicals or molecular components. A part of red biotechnology is the branch to grow has been hampered in past years due to dramatic  Technology transfer: Doing business in China production of medicines, vaccines and diagnostics. Bio- increases in development times and costs, although demand has tech companies had a turnover of US-$126.3 billion in 2005 remained the same. The number of registered patents from the  Implementing single-use technologies strategies worldwide; of that, 61.5 % (US-$77.7 billion) was in medical U.S. and Germany have gone down or stagnated in recent years, use. whereas the numbers have gone up in Asia. Coming to you on 25 May!

You’ve Got Spam INDEX

Amount of spam* in all e-mails The Biggest Spam Culprits 3i Equity 17 Givaudan Roure 4 Netzsch Feinmahltechn. 8 (in %) Known as spam sources, mid-March 2007 3M 4 Glenmark Pharmaceuticals 4 Noble Group 17

ABB 2 Biesterfeld Spezialchemie 17 Nordmann Rassmann 17 80 77.8 2,002 75.8 U.S. Air Liquide 1 Groupe Alliance 17 Ocean Tomo 6 China 393 Hamilton Bonaduz 10 Omya 17 75 73.5 Air Products 7 Russia 268 Aker Kvaerner 1 Hillesheim 10 Oxide Chemicals 17

70 UK 186 Akzo Nobel 4 IMCD 17 Parker Hanninfin 4

Japan 173 Albemarle 19 Indukern 17 Penta 17 63.9 65 South Korea 151 Albion 17 Ineos Fluor 4 Perbio Science Belgium 18 60.4 Germany 137 59.2 Alfred Talke 5 Innosight 1, 15 PricewaterhouseCoopers 1, 3 60 Canada 130 Alup 10 IP Auctions 6 Quadra 17 The Netherlands 125 Quimidroga 17 Apco Europe 1, 15 Dr. Knoell Consult 11 55 Hong Kong 119 Ravago 17 I. Quarter 06 II. III.IV. Jan. 07 Febr. 07 Arkema 1, 4, 19 Kemira Oyj 4 Rohm and Haas Company 9 * after notorious spammers filtered out Atotech Deutschland 15, 16 Keyer and Mackay 17 Kyocera 11 Rösberg 10 Source: Der Spiegel/Message Labs © GIT VERLAG Source: Der Spiegel/Spamhouse © GIT VERLAG Azelis 17 LA Chemicals 17 Sanyo 11 BASF 1, 8, 9 Lawrence Chemicals 17 Sasol 7 Spam continues to be a major threat to all businesses; global spam traffic per user per month than large enterprise organizations. Bax Chemicals 17 Lehmann & Voss 12 Schwarz Pharma 2 levels reached 74 % of all emails last November, the highest level Restricted by limited IT resources and budget, and lack of depth Bayer Industry Services 1, 7, 10 Linde 4 Schweizerhall 17 observed since early 2005. Business sector analysis by Message- of security expertise available and also due to the vast amount Bayer Schering Pharma 5 Lonza 9 Sensadyne Instrument 14 Labs reveals that increased attention is given to small business of companies of this size, smaller companies are easier prey for Boehringer Ingelheim 7 employees who receive almost twice as many spam messages as cyber criminals and more likely to be deceived by sophisticated LSMW Total Life Science Solutions 19 Shanghai Jixing 17 Brain Biotechnol. Research and medium-sized companies per user per month and 60 % more virus techniques and high volumes of threats. Madison-Kipp Corporation 14 Shell Deutschland Oil 7 Information Network 4 Merck 19 Solvadis 17 Brenntag 17 Message Labs 20 Solvay 4, 7 CBA 11 Mulhstein Corporation 17 Spamhouse 20 IMPRINT Cefic 13, 20 Der Spiegel 20 Publisher: Editorial Freelancers Print run: 15,000 arbitrarily use the unmodified Cerep Poitiers 4 GIT VERLAG GmbH & Co. KG Wolfgang Sieß Dr. Sonja Andres Third year 2007 work/editorial contribution for Strategic Research Institute L.P. 19 Subscriptions all purposes for itself and for Roesslerstr. 90 Tel.: +49 6151/8090-240 Chemcentral 17 10 issues 90 businesses that have an inte- CONSULTING & EXECUTION Technidata 5 64293 Darmstadt w.sieß@gitverlag.com Chemgineering 10 Production Managers incl. postage rest in the publishing company Tel.: +49 6151/8090-0 single copy 12 as defined by company law as Technische Universität Braunschweig 7 Fax: +49 6151/8090-144 GIT VERLAG GmbH & Co. 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