HIGHSPEED Chemanager Europe? Wrong Address?

99//20082008 SeptemberSeptember

Markets and Companies Photovoltaics While the global economy The newspaper Materials lead the way slows, emerging markets in thin-film and organic gain momentum for T he chemical and photovoltaics @nicknick/Photocase.de Page 4 life sciences markeT s Page 8 @Jarts/Photocase.de

no dangerous Goods – The CHEManager Europe: How have Due to a lack of knowledge, goods cargo both for im and authorities and companies, it is Chinese government has taken these bans affected your busi these rules are often im export, while this is not in line not always clear what products ness? plemented incorrectly with the regulations that have are part of this list and which extra precautions to make sure or too strict on a been issued. ones aren’t. the 2008 Olympic games go off K. Loyens: First of all, it is local implementa newsflow important to note the restric tion level. What is the reason behind these What is your company doing to without a hitch. tions that have been issued by arbitrary restrictions? work around these extra prob Teva Pharmaceutical Industries al- the central and local authori For example? lems? legedly is in talks to make another The Chinese authorities have ties are often different from K. Loyens: There is often insuf acquisition even before closing its placed some extreme restric the actual implementation of K. Loyens: We’ve ficient knowledge and under K. Loyens: We try to be as crea takeover of Barr Pharmaceuticals. tions on the import of dangerous those restrictions by the ex noticed that ports standing of dangerous goods tive as possible in our commu The company in question is German goods for a fourmonth period ecutive departments. The bans that are not linked classification on an operational nication with port and customs generics drug firm Stada. Neither Teva covering the Olympics in Beijing. for the port of Shanghai for in with any Olympic level of port authority or cus authorities through referring nor Stada were ready to comment at The restrictions, which began stance are only limited to cer activities are also toms departments. In order to to the policies, making sure we press time. Shares in Stada surged as on June 1, ban movement of tain classes of dangerous goods implementing strict avoid any risks, and due to lack have the right Chinese product much as 13 % on renewed speculation all dangerous goods in Beijing, – classes 1, 7, 5.2 and part of er rules and making of knowledge, certain goods are name to create as much clarity that Germany’s third-largest generics Tianjin, Qinhuangdao, Shang 6.1. All other dangerous goods it more difficult for being refused, even if they do as possible and different classes drugmaker, worth around €2 bil- hai, Shenyang and Hong Kong. are officially not subject to any im and exporters than not belong to the restricted dan of products can be distinguished lion, could be taken over. Teva, the Also, the discharge and loading restrictions. the national regulations gerous goods classes, etc. from each other. world’s largest generics company, of dangerous goods is prohibited Nevertheless, we notice that require. We’ve also noticed We have built up good con has long sought to gain a foothold in at the ports of Beijing, Tianjin, on a daytoday implementa that many of the ocean Are there any goods that are tacts with the authorities and Germany, one of the largest generic Xingang, Qinhuangdao, Shang tion level, the actual practice carriers reject most particularly at risk? try to communicate as good as drug markets in the world, and grow- hai, Shenyang, Qingdao and is a lot more complex. or even all dan possible with our customers, to ing. With the acquisition of Barr, Teva Hong Kong. Manufacturers have gerous K. Loyens: There is a lot of keep them updated on any de is also expanding its European busi- been advised to adjust their pro confusion mainly around the velopments and assist them. ness. The acquisition of a German duction schedules so that the “hypertoxic” products. This is a company, if carried out, should not movement of these goods is not Chinese classification, and has Many companies that import come as a surprise. More surprising necessary during the period. no significant correlation with hazardous chemicals into Chi is the proximity to the acquisition of Brandi Schuster asked Kevin Kevin Loyens International Maritime Dan na are now facing a backlog Barr, which will cost Teva $9 billion, Loyens, general manager of General man- gerous Goods or UNNO classi on orders. How will your com including Barr’s debt. KerryTalke Chemical Logistics, ager of Kerry- fications. It is a list of products pany cope with the increase in about the effects of the ban on Talke Chemical issued in 2002 with a supple the chemical industry. Logistics ment issued later. For many Continues Page 3  BASF plans to sell more of its styren- ics business than initially planned. The German chemicals company is now also putting the production of styrene copolymer on the auction bloc. BASF also said in a statement Gearing Up it will reorganize its global styren- ics operations into independent Brenntag Screens Opportunities for Further Expansion subsidiaries to be set up in January 2009 while it continues its year-long chemical distribution CHEManager Europe: Mr. Hol Eastern European infra metics, industrial and house continue to grow our food ingre search for a buyer. BASF’s styrenic – Brenntag finished 2007 with land, in 2007 Brenntag Group structure. hold cleaning and detergents dients business in this regard. commodities and copolymers units recorded external sales of €6.7 sectors with particular product The underlying strategy for generated sales of about €4 billion record results. With an increase billion. What part of this figure During the year 2007 and strength in the surfactants and Brenntag as a fullline chemi in 2007. of 9 %, the company’s revenues accounts for Europe? the first five months of oleo chemical lines. cal distributor is a twochannel 2008, Brenntag completed The Yara transaction in approach with one channel fully climbed to €6.7 billion, the S. Holland: In this respect you eight acquisitions to add cludes ammonia nitrate solu geared to specialty chemicals. Symrise has a shortlist of 10 possi- operating Ebita increased by have to take into considera to both product and geo tion, aqueous ammonia and ble acquisition targets, Gerold Linz- tion that Brenntag had to face graphic portfolios. Which weak nitric acid supply activi What makes the specialties seg bach, chief executive of the German 14 %. Eliminating currency slightly restrained dynamics of these acquisitions have ties conducted from the Köping ment so attractive for Brenn maker of scents and flavours, told exchange effects, sales and in some European economies, expanded your European production site in Sweden and tag? Euro magazine. Two of the targets competitive market conditions business? the Kemira GrowHow produc are “hot” candidates he aims to buy operating Ebita increased by and high raw material costs. In tion site in Belgium, the latter S. Holland: The size of the mar this year, he added. Symrise “always 13 % and 18 %, respectively, a nutshell: In 2007, Brenntag S. Holland: Our European also adding concentrated nitric ket and the aboveaverage has about 10 companies on the radar underpinned its position again network has most recent acid supply activities to our growth rates make specialties screen” to add new technologies and revealing the strong underlying as a European leading chemical ly been expanded by the portfolio. very interesting for us. We are to expand geographically, he said in growth. distributor with external sales acquisitions of Natural responding to what our princi an interview to be published in Euro’s of €3.8 billion. World in Italy, Abaci in Natural World and Abaci both pals are looking for. You need September edition. Linzbach also con- Turkey and the chemical expand your specialties segment, a different selling approach for firmed the company’s goal for full- The global leader in chemical What is your strategy for grow supply activities of Yara which is a declared key area for specialties and deeper customer year sales to increase 6 % to 7 % and distribution operates in excess of ing your business in Europe? International at the sites Brenntag in Europe. contact, and we are re brand 300 locations in 55 countries and in Köping, Sweden and ing our offering in certain areas Ebita to grow 6 %, both adjusted for Steve Holland currency swings. Sales in the first six offers an extensive distribution S. Holland: Besides organic Member of the executive board, Tertre, Belgium. S. Holland: Yes indeed, special step by step. months of 2008 were €676 million, network for industrial and spe growth, we will continue to look Brenntag Holding In terms of products, ties account for roughly more up 6.7 % (in local currencies) from cialty chemicals. Michael Reu for acquisition opportunities Natural World added than one third of Brenntag’s Capital expenditures in 2007 last year. bold spoke with Steve Holland, and we will maintain our rein are continuing our expansion, extensive technical expertise in European business, i.e. about for Brenntag worldwide totaled member of the executive board vestment and upgrading strat to some extent through acqui the dairy and bakery industries €1 billion in sales. You see us €95 million. Can you give some Brenntag Holding and respon egy in Europe. Opportunities sitions, which provide a signifi as well as in food performance acquire niche operations, which examples of investments you sible for European Operations for growth can be found in geo cant synergistic case. We con products. further enhance our market realized in Europe? about the strategy to further ex graphic areas as well as product tinuously screen the acquisition Abaci expanded Brenntag’s penetration in certain specialty pand the business in Europe. areas. Generally speaking, we landscape also to leverage our Turkish capacities into the cos fields, and we will, for example, Continues Page 3 

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[email protected] page 2 Markets & CoM panies CHEManager Europe 9/2008

Content

Front page production expansion at saFC Buchs site �� 7 Maintenance Joint Venture �� 11 cGMP Compliance Significantly Improved Peter Decaigny, Siemens Limited access �� 1, 3 Interview with Fabian Wahl, Sigma Aldrich and Mike Harris, SAFC Chinese Port Restrictions During Olympics Create Crisis Communication �� 12 Logistical Challenges Let the sun shine in�� 8 Advance Planning is the Foundation of Interview with Kevin Loyens, General Manager of Kerry-Talke Arkema is Working on Extending the Life of Solar Panels Effective Disaster Management Chemical Logistics Aline Teyssier, Arkema Ingrid Knöpfle, Gersthofen Industrial Park

Gearing Up �� 1, 3 Brenntag Screens Opportunities for Further Expansion the right Mix �� 8 Interview with Steve Holland, Brenntag Materials Lead the Way in Thin-Film and Organic Photovoltaics pumps 13 – 14 Robert Nolan, Nanomarkets

external procurement of pumps �� 13 Markets & Companies 1 – 4 Using Total Cost of Ownership as a Governing Principle production / Maintenance 9 – 12 Stefan Bumb BASF Collaboration �� 2

Under Construction �� 9 portfolio �� 2 save energy Using Condition Monitoring �� 14 How to Optimize Overhaul of Centrifugal Pumps optimal Maintenance strategies �� 9 sales & profits �� 4 Ray Beebe, Monash University Archieving High Reliability While Keeping Maintenance Costs at Bay

Vulnerable times �� 4 Cord-Philipp Winter While the Global Economy Slows, Emerging Markets events / Business partners 15 Gain Momentum safety in Maintenance �� 10 Dr. Thomas Kevin Swift, American Chemistry Council A Serious Problem to be Addressed Gerard Neyret, Vice-President of AFIM World Cia 2008�� 15 A Meeting With Chemistry Chemicals 5 – 8 structure the approach to Manage Maintenance �� 10 A Process and Framework Reference Model Blocking Catalysts �� 5 Prof. Adolfo Crespo Márquez at a Glance 16 The Perfect Match Dr. Hans Donkervoort, Global Product Technology Manager, BASF Whatever Can Go Wrong Will Go Wrong �� 11 index �� 16

principles of Heterogeneous Catalysis �� 6 Lessons Learned from a Cluster of Incidents at Hoechst

Part II : Desired Characteristics of a Catalyst Prof. Dr. Christian Jochum imprint �� 16

Lanxess: Best Quarterly earnings in its History Lanxess has reported that its pared with a loss of €59 to €1.765 billion from €1.727 Q2 Ebita before special items million a year earlier, when billion a year earlier, beat- advanced 5.7 % to a better- exceptional write-downs on ing the consensus, which was than-expected €223 mil- its Lustran Polymers business for €1.645 billion. Adjusted lion, on higher sales in Asia weighed on earnings. The for currency swings, divest- and Latin America and as it bottom-line figure fell short of ments and acquisitions, sales passed higher feedstock pric- the €57 million expected by increased by 14 %. In a sepa- es on to customers. Analysts analysts. Lanxess in October rate statement, Lanxess said had expected a headline fig- transferred the Lustran unit it plans to move its headquar- ure of €207 million on aver- into a joint venture with UK ters to Cologne, Germany, age, based on seven estimates chemical maker Ineos, which from Leverkusen, Germany, JV: Momentive and Anabond Momentive Performance Materials and Air Liquide’s Buying Spree Air Liquide said it has bought collected by Thomson Finan- took control of the entity. by 2011. Lanxess is running Anabond announced their joint development agreement to develop and India’s Pure Helium, a supplier of liquid helium that has a cial News partner dpa-AFX. Lanxess plans to sell its out of office space at its cur- manufacture Spur Sealants in India. Utilizing Momentive’s research, de- presence in the Middle East. No financial details of the trans- The chemicals maker said in 49 % stake in the venture to rent buildings, situated at the velopment support and expertise of the Spur+ pre-polymer Anabond will action were disclosed. The Indian company, created in 1985, a statement that net income Ineos in less than two years. site of the headquarters of its manufacture this product in their Chennai/Puducherry plant for serving is present in the UAE, Saudia Arabia and Egypt and posted came in at €53 million, com- Quarterly sales added 2.2 % former parent Bayer, it said.  the local markets. Momentive will market this product in the construction $20 million sales in 2007. Air Liquide said world demand segment and Anabond will market it in the automotive and electrical & for helium, used in electronics, offshore oil activities and electronics segment under license from Momentive. Other Areas not speci- certain medical treatments, is being boosted by strong growth fied under this agreement are open to both the companies for marketing in industrial demand. Air Liquide also said its Air Liquide their products based on mutual understanding. Speaking on this occasion industrial Gas Firms’ Credit Quality stays stable Electronics U.S. (Aleus) unit has completed the acquisition VP Nalian, Managing Director, Momentive Performance Materials said The world’s leading industrial umes. In spite of the signifi- Germany-based Linde (BBB+/ of the chemical management division of Edwards Vacuum, “This development is a quantum leap in silicone sealants area, in this part gas companies should be able cant investments made over Stable/A-2), and U.S.-based based in Chanhassen, Minn.. It said the acquisition comple- of the world and is in line with Momentive India’s Vision of combining to maintain or even improve the past few years, Standard Praxair (A/Stable/A-1), and ments Air Liquide Electronics’ position in the high purity fluid global technology with local application development, manufacturing and their credit profiles over the & Poor’s does not expect the Air Products and Chemicals. equipment and installation sector, particularly in the U.S. and service to bring world class products and services in silicones to the Indian coming years, despite soaring industrial gases segment to (A/Stable/A-1). These four glo- Asia. “The ability to offer a more robust and cost competitive market. We believe Anabond is the right partner for this joint development energy costs and uncertain suffer from overcapacities bally active companies have line of chemical dispensing equipment uniquely positions Air agreement to develop Spur Sealants in India. The partnership of Momen- global demand, said Standard because it looks set to con- strongly diversified sales by Liquide to better serve end user and OEM customers and tive and Anabond will see the launch of the Spur Sealants by the fourth & Poor’s in the report “Why tinue growing at a pace of at geography and a well-diver- more widely establish itself as a provider of choice to the quarter. The project will be led by K. Adhi Narayanan, director on behalf Industrial Gas Companies Can least twice that of GDP over sified customer base serving semiconductor industry,” said David LeBlanc, president of of Anabond, and by Dr. Venkatesh Shingankuli – director technology and Rise Above Economic Turbu- the next few years. industrial clients, utilities, oil Aleus.  application development of Momentive.  lence.” The five rated companies and gas companies, as well Author of the report Stand- in the industrial gas sec- as the health care industry. Ashland Acquires Hercules Specialty chemicals group Ashland BASF and Evonik Join Forces BASF said it agreed with Evonik Industries to ard & Poor’s credit analyst tor have shown an average A fifth major player is Air- said it agreed to acquire Hercules in a $3.3 billion cash and jointly develop ceria-based slurries used in the production of computer Tobias Mock said, “Indus- sales growth of 8.4 % per gas Inc. (BBB-/Positive/--), stock deal. Ashland said it will acquire all outstanding shares chips. The two German chemical companies expect to bring the slurries trial gas companies’ strong year since 1998. The main although it is largely focused of Hercules for $18.60/share in cash and 0.093 of a share of to market in 2009, BASF said in a statement, without disclosing financial business models allow them pressure on industrial gas on the distribution of pack- Ashland common stock for each share of Hercules common terms. Slurries containing nanoscale materials such as ceria are used to to largely pass on higher companies’ credit profiles aged gas and solely active stock. The deal also includes $0.7 billion of net assumed debt. polish the silicon dioxide surfaces of wafers used for microchips. Evonik energy and raw material over recent years has been in the U.S. These dominant The transaction is expected to close by the end of calendar will provide the cerium oxides needed for the technology, while BASF will costs to customers.” They large-scale mergers and ac- companies are protected by 2008, it said.  contribute its knowledge in slurry formulation chemistry, production and are also relatively sheltered quisitions (M&A) and gen- high barriers to entry due to application.  from economic downturns be- erous shareholder payouts. technological, infrastructure, Pipelife Acquires Instaplast Pipelife International, a 50/50 cause their volumes are only Following a wave of M&A and capital intensity needs. joint venture between Belgian chemicals and pharmaceu- Sigma-Aldrich’s Antibody Collaboration Sigma-Aldrich said it has entered partially affected by lower over the past four years, the All five have investment- ticals group Solvay and the Austrian construction materials into a five-year collaboration with the University of California, San Fran- demand. This is because they industrial gases market is grade ratings. Four have manufacturer Wienerberger, has acquired the Czech plastic cisco, to develop optimal cell lines for the production of monoclonal anti- benefit partly from contractu- now highly consolidated. Just stable outlooks, while the pipe systems producer Instaplast Praha. Pipelife said Insta- bodies. The scientists will lead the research into antibodies for a variety of ally pre-agreed volumes and four major players account outlook on Airgas is posi- plast Praha generated a turnover of around €11 million and cancer targets, autoimmune diseases, stem cell characteristics and com- the economic slowdown af- for about 65 % of the exter- tive because further upside had 94 employees in 2007. The parties agreed not to disclose monly neglected disease targets. Financial details were not disclosed.  fects mainly their customers’ nal market: France-based potential is likely over the the financial terms of the transaction.  selling prices rather than vol- L’Air Liquide (A/Stable/A-1), coming years. 

[email protected] CHEManager Europe 9/2008 Markets & CoM panies page 3 Limited Access Chinese Port Restrictions During Olympics Create Logistical Challenges

 Continued page 1 for an exception on the regulations at tation, which issued rather clear-cut chemical plants that weekly checks the fear of terrorist attacks feed the its course and being more selective the relevant port authority, if they are guidelines at the beginning of this and audits are planned and even concern of the Chinese authorities. It in what type of investment it aims demand for your services after the ban national-class projects; projects that year. The responsibility was shifted that security camera’s need to be is in such a case not the first time for. The Chinese government is try- is lifted? are crucial for the national economy to the Ministry of Security after a few installed. All these elements certainly that the Chinese government decides ing to refocus towards more high and the people’s livelihood; or large- months. Combined with certain guide- create an additional administrative to take – for Western concepts – very end, efficient and “green” industries k. Loyens: We hope that during the scale important enterprises. This lines and principles that were initially and cost burden. rigorous measures. and moving away from the older, low coming months the situation will includes companies for which the issued were suspended, reviewed and This is still an important part of value, heavy polluting industries. stabilize a bit and that implementa- shortage of supply of the relevant partially reissued this all created a lot Are there alternatives routes that can the “political risk” of the business en- This has consequences, of course, tion of the regulations will normal- dangerous goods will harm or stop of confusion on the side of the indus- be used during the ban? vironment in China. Despite the fact and a clear shift was noticeable over ize. What is to be expected once the normal manufacturing operations. try and other parties involved. that China has come a very long way, the last few years of industries shift- We were informed that there are k. Loyens: Aside from importers in these practices show that there are ing to other countries in Southeast a number of state-owned enterpris- China applying for exemptions, we still significant differences between Asia. It is one of the major challenges es in the Beijing area seem to have have also noticed that alternative the Chinese and Western way of deal- of the Chinese government to monitor Considering the size and importance of the decided to partly stop their produc- import ports are being considered ing with these issues. the modernization process its econo- tion between mid July and the end which might have more flexible my is going through. Olympic Games for China, it is not surprising of September. implementations of the regulations. How do you see the competitiveness Nevertheless, China still remains that very serious measures have been taken. As I said before, companies have We, for instance, have noticed that the for foreign companies in China? A a very important and attractive the possibility to request for exemp- port of Ningbo or Zhangjiagang are recent survey has shown that 54 % of investment base and market. It is cru- tions for the purchase, manufactur- more being considered for imports to such companies believe that China is cial that every company individually ing, storage or transportation of these Eastern China. losing its advantage over other low- considers what the main drivers are in ban has been lifted is difficult to Some major chemical companies products, but in practice, we hear a cost countries such as Vietnam and their internationalization strategy. Not predict, and since the availability of like BASF and Bayer have already lot of complaints from the chemical Do you think that such an extreme ban India. Can such a ban lead to even because China is “hot,” it also means equipment or containers in China is applied for this. industry mainly, because there is a is necessary? more companies leaving the country it is an interesting investment location always an important issue for export- lot of confusion on the implementa- completely? for every company or every industry. ers, we will have to see how develop- How has the ban on the movement of tion of the regulations. This causes k. Loyens: Whether necessary or not, The political risk, of which the ments go. Nevertheless, we suggest dangerous goods affected chemical a lot of uncertainty and problems in it is not the first time that similar reg- k. Loyens: I am not sure whether the dangerous ban is an example, is also our customers to try and arrange production sites in China? their supply chain. Separate approv- ulations have been issued. Also dur- ban necessarily will influence China’s present in other Asian economies, their planning as good as possible als are required for the manufacturing the People’s Congress or Congress competitiveness. It is indeed true maybe in other ways or forms, or in advance and discuss it with us in k. Loyens: I think a major problem is ing, transport, storage and movement of the Chinese Communist Party, simi- that things are changing in China. maybe there are unstabilizing fac- time, so we can make the necessary the unclear communication and inter- of the restricted products. lar standards were issued in Beijing. Increasing inflation and the tighten- tors, which are not present in China. arrangements. pretation that has taken place by the Also, additional security and re- Considering the size and importance ing control of the central government Evaluating all this elements is an At the same time, it should be said authorities. Based on our resources, porting measures are required for of the Olympic Games for China, it on the rising investments all have an exercise every company has to make that according to the regulations, the coordination of the whole danger- companies including daily or weekly is not surprising that very serious important impact, of course. Over the individually. importing or producing companies ous goods regulation was originally reporting to the local police authori- measures have been taken. Also the last few years, the Chinese govern- in China have the possibility to apply in hands of the Ministry of Transpor- ties, etc. We have heard comments of conflicts in Tibet earlier this year and ment has also been clearly changing 2 www.kerrytalke.com Gearing Up Brenntag Screens Opportunities for Expansion

 Continued page 1 values in terms of both the commercial

and the growth objectives for the dis- E20001-F110-P780-X-7600 s. Holland: The majority of the tributor and supplier or principal. It is investments provided expanded capa- pretty much a shared-value approach. bilities, greater efficiency or enhanced We find that the most successful part- safety. Major 2007 capital expendi- nerships that we have are where there tures included the modernization of is a significant correlation between the The perfect our facility in Hamburg, Germany, supplier and principal and ourselves which re-opened after a two-year in terms of our mutual objectives and construction period with state-of-the- targets. And when you see the seam- interaction … art technology in filing, order picking less connection between the supplier and mixing and loading areas, a high or principal and the distributor, it is quality laboratory as well as a clean only when you have aligned objectives room with new filling technology that that you see shared success. So, it is meets GMP standards. much about learning about our values In addition, we built a full-service and our targets and our aspirations at custom formulation and blending fa- an early stage what makes a success- cility for feed additives in Kedzierzyn- ful partnership. Kozle in Poland with an annual capacity of 25,000 t, which serves a sig- You participated in a panel session on nificant warehousing and distribution topics related to the expansion of the function. FECC to the countries of Central and Part of the investments also went Eastern Europe. Brenntag, of course, into our facility in Valencia, Spain, has been operating in these markets funding extensive renovation and for a while. Which business opportuni- capacity upgrades of the solvent and ties do you see in this region? inorganic tank farm, and into the relocation of the facility from Wim- s. Holland: As far as Central and East- borne to Wareham, UK, including ern Europe is concerned, we have had the upgrade of tanks, machinery and a long-term investment and growth drumming facilities. strategy. Our business has grown This year, we realized the reloca- significantly over the past several tion and upgrade of the tank farm years. Turkey and the Ukraine both for solvents and mixing and blending are major markets for today and the equipment in Rotterdam. The storage future. And I think that it is fair to and distribution center was relocated say that we believe that the Eastern … for proven to the Chemiehaven of Rotterdam Port European markets will grow in line adjacent to the Vopak terminal with with their demand for capital and for process quality. whom we developed an innovative chemicals in the future. It is a genuine and efficient integration of facilities. reason why we see a demand-driven Thanks to the efficient set-up and growth of the Eastern European sec- the flexibility created through the tor. So we want to be there and it is a connection with the Vopak terminal strategic long-term view, you see us this new site will support the further grow in specialty chemicals, in niche development of Brenntag in the Neth- products and niche applications and erlands in terms of the distribution of also geographically. solvents and chemicals as well as our service and quality for customers and Which challenges and hurdles do West- suppliers. ern distributors have to cope with and overcome to be successful in CEE? Are there any new investments in acquisitions or capital expenditures s. Holland: I think the key to it is to not planned already? to have a short-term view. If you want to grow successfully in CEE, you need s. Holland: At this stage, we are rela- to be prepared to be there for the long Sensor Systems tively happy with the current level of haul and to establish long-term rela- With our complete sensor technology, including process instruments, analytics, and factory sensors, investments within Brenntag Europe. tionships with customers and suppli- We continue to upgrade our facilities ers in the region. It is certainly not a we leave no room for false assumptions. Intelligent, versatile, and robust sensors deliver the decisive in particular with regard to specialised transactional environment where you plus in accuracy of measurement for a multitude of applications in the chemical industry. They provide storage of food and pharma products. can go in with a cheap-priced product the firm foundation for cutting maintenance costs, optimizing processes, giving reliable repeatability, Our annual investment span is broadly and expect to get loads of business. and consistently high product quality. More information: www.siemens.com/sensorsystems being maintained at 2007 levels. So, we are looking at mature, long- Setting standards with Totally Integrated Automation. term relationships and we have to The FECC Annual Congress 2008 in be ready to invest time and energy. June had the motto “Partnerships for For us CEE is a long-term strategic Success.” What makes partnerships in growth objective. Answers for industry. the chemical successful? s. Holland: Ultimately, partnerships generally work when we have shared 2 www.brenntag.com

[email protected] page 4 Markets & CoM panies CHEManager Europe 9/2008 Vulnerable Times While the Global Economy Slows, Emerging Markets Gain Momentum

Halftime – At the mid-point of 2008, it’s clear that the global economy is slowing, the result of @nicknick/Photocase.de high energy prices, the credit crisis and a slowing U.S. economy. “The major question remains Dow Chemical 2Q Profit Hurt by Costs Dow Chemical said that Dr. Thomas Kevin Swift of the second-quarter earnings fell as its price increases had failed to whether the U.S. economy has offset a sharp spike in energy and raw material costs. Net income American Chemistry Council takes entered a period of sub-par fell to $762 million, or 81 cents a share, from $1.04 billion, or a closer look at the effects on the $1.07 a share, a year earlier. Dow has long been among the larg- growth or recession. “ est global makers of commodity chemicals such as those used to world’s regions. make plastics, but that business is typically cyclical and yields thinner margins than specialty chemicals. Shares of Dow have Growth is moderating in West- fallen almost 15 % in the last three months, while the Standard ern Europe and the slowdown & Poor’s Chemical Index is down 3.3 %.  is more pronounced in Japan. Latin America and Africa and the Middle East are still ben- Emerging Countries: developed nations, Germany a regional perspective, the situ- and-technology, knowledge- Solvay Posts Q2 Decline Belgian chemicals and pharmaceuticals efitting from emerging mar- Major Centers of Growth and Ireland will experience the ation of American chemistry has based endeavor, the business group Solvay posted a decline in its second quarter results, due ket momentum but it is the strongest growth. Growth for been mixed. Most regions will of chemistry invested $27.3 to increased energy and raw materials costs. Net profit for the emerging markets of Asia and Since early-2007, year-over- the world chemical industry face challenges during 2008, billion in research and devel- group decreased to €131 million from €195 million in the cor- Europe that are experiencing year (y-o-y) growth in global during the next 10 years will especially in the Gulf Coast opment (R&D) in 2007. Spend- responding period last year, with Solvay’s share of net income the strongest growth. These industrial production moder- average 3.9 % per year, with and Ohio Valley regions, which ing gains will be modest, with at €127 million from €183 million last year, under analysts’ markets, however, are still ated, but the pace has deceler- the emerging markets exhib- are dominated by basic chemi- R&D spending reaching $28.6 estimates of between €161 million and €166 million. Sales came vulnerable as potential global ated sharply in recent months. iting the strongest prospects. cal and specialties production. billion in 2008. Continued gains in at €2.357 billion, down from €2.436 billion last year. Ana- transmission of the credit crisis Production in China and else- With the slowdown in manu- Industry growth, however, will are expected during 2008 and lysts had forecast sales of between €2.360 billion and €2.430 is still in place, and could affect where in Asia-Pacific remains facturing, growth in American recover across all regions dur- 2009. Capital spending cycles billion. Rebit was €249 million compared to €291 million in the other economies. strong but leading indicators chemistry has stalled since the ing 2009 and 2010. American generally lag cycles of industry same period last year, below analysts’ expectations of between of global industrial production third quarter of 2007. A build- chemistry faces some economic activity. Spending increased €260 million to €261 million. The group said its results for the Muddling Through confirm a peak in the cycle and up of downstream customer headwinds. A major risk at this 8.0 % to $24.3 billion in 2007. full year will remain at a “sustained level” but will not reach that the global industrial cycle inventories and subsequent point in the cycle is volatile nat- With only nominal growth in the “record” level of 2007, taking into account the level of the According to the International is shedding momentum. After drawdown occurred, with ad- ural gas costs as long-term sup- recent years, capital spend- U.S. dollar and continued high energy, coal, coke and ethylene Monetary Fund, world gross- a 5.2 % gain in 2007, growth verse effects on chemical in- ply-demand imbalances remain. ing gains will moderate, with prices level and it will announce price increases of 10 – 50 % for domestic product grew 4.9 % in manufacturing activity will dustry production despite rising A comprehensive U.S. energy spending increasing to $25.9 its primary chemicals and plastics products. The group said the (purchasing power parity ba- moderate in 2008 and 2009. exports. Downstream inventory policy ensuring adequate and billion in 2008, $26.9 billion in operating result of its pharmaceuticals division, however, should sis) in 2007, marking the best Major growth centers continue destocking, however, appears to diverse supply – including that 2009, and $28.2 billion in 2010. reach the 2007.  four-year period since the to be China, other East Asia, be running its course and re- from Outer Continental Shelf Overseas capital spending gains early-1970s. Assuming no pro- and some Central and Eastern cent months have seen some (OCS) – would go far in moder- will be stronger. nounced recession in the U.S., European nations. The risks of improving activity. Leading ating volatility and supporting Growth for American chem- Symrise Q2 Net Up More than Half Symrise said second-quarter the global economy should a sharper, more pronounced indicators of manufacturing the competitive position of U.S. istry during the next 10 years net profit jumped by more than half to €35.9 million, up from muddle through in 2008, and downturn (i.e., a pronounced activity, however, point to slow industry. will average 2.4 % per year in €23.4 million a year earlier, as the German flavors and scents into 2009 and 2010. Led by recession) are relatively high. activity. volume terms. Aided by a gray- maker cut costs and sold more in emerging markets in Asia, continued strong economic Rising energy costs and infla- Export Prices To Increase ing “baby boom” generation, Eastern Europe and Latin America. The bottom line exceeded growth in emerging markets, tion present the largest risk and American Chemistry off to a Slow Start pharmaceuticals will experi- the average estimate of €29.6 million in a survey by Thomson world economic growth will are followed by lingering ef- During 2008, high feedstock ence the strongest dynamics. Financial News. Quarterly Ebita edged 1.6 % higher to €71.4 average a sustained 3.8 % per fects of the U.S. housing down- With a weak start to the year, and other energy costs and In summary, the U.S. economy million, slightly below the consensus of €72 million. Symrise, year in 2008 and 2009, before turn and credit crisis, which American chemistry will expe- improving operating rates are has slowed, with falling hous- whose customers include Nestle, Unilever and Procter & Gam- recovering to an above average could lead to a more serious rience a gain of less than 0.5 % resulting in higher chemistry ing activity, squeezed consumer ble, said in a statement that sales rose 2.5 % to €338.0 million pace in 2010. Growth in world retrenchment in the broader during 2008. Pharmaceuticals product prices and contributing spending, and rising energy and in the second quarter. As a result of higher raw-materials, trade appears to have peaked, economy. A hard landing with took over as the growth leader to higher shipment levels. As a food prices characterizing the packaging and distribution costs, which Symrise said it can only but will expand at a pace 1.6 a post-Olympic bust in China and will expand 2.1 % this year. result, shipments of the busi- near-term. Improved economic pass on the customers with a time lag, the company lowered times that of output. (a major economic locomotive) Excluding pharmaceuticals, ness of chemistry in 2008 will prospects are likely for 2010. its full-year earnings guidance, while seeing higher revenues Inflation measures in many is another threat as are ever slippage will actually occur likely rise 2.3 % to $679 billion. This dynamic will provide an than previously. The company said it expects full-year sales to countries have intensified. High present financial market risks for the year as a whole. Most Continued expansion of produc- environment for the business of increase 6 – 7 % and Ebita to grow 6 %, both adjusted for cur- energy and food costs are fan- amid global imbalances. basic and specialty chemical tion through the next couple chemistry in which production rency swings. For the first half net profit was up 16 % at €60.8 ning inflation, especially in Finally, another major ter- segments will face challenges years will push shipments to will continue to increase, albeit million, while sales rose 2.3 % to €676.0 million. Symrise is emerging markets as the world rorist attack, or other as yet this year. This will especially $706 billion in 2009 and $738 at a diminished pace. trying to get shortlisted as a key supplier to the world’s largest economy encounters capac- unforeseen events could damp- be the case for segments tied billion in 2010. The risks, of course, are still makers of consumer products, who are reducing the number of ity constraints, most notably en the global economy. Long- to housing, light vehicles, fur- In 2008, U.S. exports of high and another, less optimis- suppliers of scents and flavors in a bid to streamline procure- in energy. Weather and policy term world economic growth niture and appliances. Overall chemistry products will likely tic future for the economy is ment.  considerations have affected should average 4.3 % per year American chemistry growth rise nearly 14 % to $174.9 billion always possible. Energy and in- food costs as well. Global infla- through 2017, with global will improve to 2.0 % in 2009 and imports will increase 11.5 % flationary pressures could lead tion will accelerate from 3.9 % industrial production averaging and then 2.5 % in 2010 as both to $173.7 billion. As a result, the to a boom-bust cycle. Stronger Rhodia Q2 Net Drops Rhodia has reported a 4.6 % drop in second- in 2007 to 5.3 % this year. The 4.5 % per year. Growth dynam- basic chemicals and specialties trade deficit in chemistry will growth and inflation lead to quarter recurring underlying profit and confirmed its 2008 fore- U.S. economy has lost momen- ics have shifted to the emerging will strengthen. turn from a $1.2 billion deficit more aggressive tightening of casts. Recurring Ebita, or earnings before interest, tax, deprecia- tum and economic growth is nations, which account for one- Continued recovery in vol- to a $1.2 billion surplus. The monetary policies, setting the tion and amortization, fell to €187 million from €196 million, the well-below trend, hampered half of world economic activity. umes combined with slow ca- value of the dollar will remain stage for weaker performance. company said in a statement. Revenue was up 0.4 % to €1.227 by the effects of the housing World trade will continue to pacity gains pushed overall relatively low through 2008 billion. Analysts had on average forecast recurring Ebitda of slump, the credit crisis and expand at a fast pace. operating rates to an average and into 2009. Chemical trade 2 Contact: €175 million and revenue of €1.26 billion. The group repeat- particularly high energy costs, of 79.2 % in 2007. Cyclical soft- will moderate as global mar- Dr. Thomas Kevin Swift ed that 2008 recurring Ebitda should be “within 5 percent” of which are eroding consumer Global Chemistry Business ness in the industry has caused kets slow in 2009. As a result, American Chemistry Council the 2007 level and earnings per share should increase versus income and offsetting the stim- Slowing Down this to slip recently but improv- the trade surplus will grow in Arlington, Va., U.S. 2007. Rhodia’s second-quarter operating profit was unchanged ulus from the rebates. The light ing output in combination with 2009 before slipping in 2010 Tel.: +1 703 741 5932 at €115 million and net profit rose to €35 million from 3 million vehicle industry is in a down- Overall activity this year in the modest capacity additions will as the dollar strengthens and Fax: +1 703 741 6085 in the second quarter of 2007. Chief Executive and Chairman turn as are industries tied to $3.18 trillion global business gradually push capacity utiliza- the U.S. economy accelerates, [email protected] Jean-Pierre Clamadieu said in a conference call he expected an housing (carpeting, furniture, of chemistry has moderated tion to near 80 % by 2010. From boosting imports. As a science- www.americanchemistry.com increase in the group’s dividend in 2008.  appliances, etc.) and manufac- as well. On a y-o-y basis, glo- turing in general. The major bal production was up 2.9 % in question remains whether the the first quarter and excluding Rohm & Haas 2Q Misses Estimates Rohm & Haas said second- U.S. economy has entered a pharmaceuticals, production Clariant: improved operating Margin quarter earnings from continuing operations fell to $147 million period of sub-par growth or was up 2.8 % y-o-y. The year- or 75 cents a share, from $161 million, or 75 cents a share, recession. earlier comparisons have mod- costs in the same period. this paper chemicals division site in in the year-ago period. Excluding restructuring, asset impair- erated into the second quarter. led to an improvement of 0.5 Horsforth, UK. Clariant said it ments and the impact of the divestiture of the company’s stake U.S. Consumers Tightening Gains during the past year have percentage points compared will enter into discussions with in UP Chemical adjusted earnings were 82 cents a share, miss- Their Wallets been largest in China, else- to full-year 2007 gross mar- the employee representatives ing the mean estimate of analysts polled by Thomson Reuters of where in Asia-Pacific, Africa gin. Operating income before that should lead to the clo- 85 cents a share. Revenue for the Philadelphia-based specialty A number of positive factors and the Middle East, and Cen- Jan Secher exceptionals amounted to CHF sure of the site, which employs CEO, Clariant chemicals company rose 17 % to $2.57 billion from $2.19 billion (strong exports, lean invento- tral and Eastern Europe. The 310 million. roughly 270 people. If the pro- a year earlier. Analysts, on average, had estimated revenue of ries, solid corporate balance global chemical industry still The stringent implemen- posals go ahead approximately $2.51 billion. Rohm & Haas attributed the increase in revenue sheets, monetary and fiscal appears to be in an expansion Clariant announced a 4 % in- tation of the previously an- 160 job positions will be made to strong growth in its electronic materials and chemical busi- stimulus, etc.) should help to mode, with growth shifting to crease in sales in local cur- nounced restructuring meas- redundant. nesses outside North America. partially offset the adverse emerging markets and slowing rency for the first half of 2008 ures has resulted in a reduction CEO Jan Secher commented: “Looking to the future, we are excited about the potential of effects from: high energy pric- elsewhere. Leading indicators equivalent to a decrease of 2 % of 750 job positions in the first “Against the backdrop of an in- a stronger, faster growing and more profitable company. The es; a housing sector still in a of global industrial production in Swiss francs as a result of half of 2008. restructuring and creasingly difficult economic announcement of the definitive agreement for the Dow Chemical free fall; the spread of weak- continue to suggest slowing strong adverse currency effects. impairment expenses amount- environment, we are decisively Company to merge with Rohm & Haas places us at the heart of ness to other sectors of the activity. Total sales amounted to CHF ed to CHF 53 million. Since implementing the restructuring change for the specialty chemicals and advanced materials indus- economy; shrinking job pros- 4.233 billion. The company said tries,” the company said. On July 10, Dow Chemical Co. agreed pects; declining home prices; Germany and Ireland the dynamics in the raw mate- to buy Rohm & Haas for more than $15 billion in cash.  soft equity markets; falling con- to Have Strongest Growth rial markets as well as supply “We are prepared to undertake further restructur- sumer confidence; and eroding shortages of some chemical ing measures that may be necessary, should the incomes from higher inflation. Global business of chemis- feedstock have led to an 11 % in- Roche’s Ratings on Negative Watch Fitch Ratings said it placed These factors are combining try output will decelerate this crease in raw material costs. at economic climate significantly deteriorate.” Swiss drug maker Roche Holding’s ‘AA’ long-term issuer default to affect already fatigued con- year, increasing 3.5 %, down the same time, Clariant’s “price rating (IDR) and ‘F1+’ short-term IDR on negative watch, based sumers, who are throttling from 4.5 % in 2007 and from over volume” approach in all November 2006, Clariant has and cost saving measures that on the company’s offer to acquire the 44 % of shares in Genen- back spending. At best, the peak growth of 5.4 % in 2004. divisions led to a 5 % price in- reduced about 1,800 out of the have been initiated over the last tech it does not already own, for about $43.7 billion. Fitch said U.S. economy will continue well Growth will improve slightly crease that compensated for the 2,200 job positions that were 18 months in order to protect it believes that leverage will rise to a level outside of the cur- below-trend for a period, with a to 4 % in 2009 and barring a raw material cost hike. While planned for reduction in the ourselves against the potential rent rating category, given a large amount of debt necessary timid recovery likely. There is, global recession into 2010. The the reported gross margin re- Clariant 2010 strategy. As part continuing decline in demand. to finance the transaction. The rating watch will be resolved however, high risk of a more most rapid growth will occur in mained stable at 29.7 % (29.9 % of Clariant’s strategy to reduce We are prepared to undertake as additional details of the capital structure become available, typical recession, especially as Asia-Pacific (excluding Japan), in H1 2007), it has improved on the number of sites, the board further restructuring measures it added.  the stimulus from the rebates Africa and the Middle East, a year on year basis for four of directors approved address- that may be necessary, should dissipates and as energy costs Central and Eastern Europe quarters in a row despite the ing the excess capacity situa- the economic climate signifi- eat into incomes. and Latin America. Among the steep increase in raw material tion at the textile, leather and cantly deteriorate.” 

[email protected] CHEManager Europe 9/2008 ChemiC als Page 5 Blocking Catalysts The Perfect Match

Reaction Routes – An important available on the metal surface, thus CP catalysts. This alternative would catalyst weight basis and under the factor in developing fine chemicals, the metal surface is not completely effectively lower the total amount of same reaction conditions. covered with hydrogen atoms, i.e. precious metal used in the process by pharmaceuticals, agrochemicals, fla- partly unreduced. This hydrogena- 40 %. With current palladium price of Conclusions vors and fragrances, food additives and tion mechanism is not uncommon around $13,500 per kg, the impact on and suggests for any catalyst screen- the process cost is evident. The high- It can be concluded that innovations dyes and pigments is choosing the right ing study that one should evaluate at er activity for BGR catalysts also leads in the field of heterogeneous catalysts reaction route to the final product. least one catalyst in both its reduced to surprising technical benefits. The allow manufacturers in the fine chem- and unreduced form. Further catalyst classic deprotection catalysts exhibit icals industry to further increase the development work for the deprotec- a catalytic hydrogenation activity use of green catalytic technologies. Catalytic routes have proven to be tion reaction of 4-BP focused on un- which allows a limited number of dif- The innovations leading to the new one of the most effective ways for reduced Pd/CP catalysts. ferent solvents to be used, like water class of deprotection catalysts allow simplifying reaction routes to these Optimization of the deposition and alcoholic solvents. Other solvents the use of non-standard solvents in compounds by increasing product technology used in the manufactur- potentially lead to low hydrogenation deprotection reactions thus broad- selectivity, and reducing waste and ing of Pd on carbon powder catalysts activity for classic deprotection cata- ening the scope of deprotection sub- Figure 1: 4-BP to HQ deprotection reaction hazardous materials handling. Con- resulted in further improvements of lysts and thus prolonged reaction strates. In addition, this new class of sequently there is an ongoing need the catalytic performance in 4-BP times. The limited choice of solvents the much higher intrinsic activity of activity number of 5 – 7 in the depro- heterogeneous deprotection catalysts for more active, more highly-selective to HQ. A summary of the results is also minimizes the scope of sub- BGR catalysts, other solvent systems tection reaction of 4-BP to HQ. In con- enables higher process productivity and more environmentally-benign presented in table 1. Entry 1 and 2 strates for catalytic deprotection re- can be taken into consideration. For trast to this result, BGR catalysts give while also minimizing overall proc- catalysts. One of the most widely used in this table give the performance of actions, as dissolving the substrate example, using ethyl acetate as a sol- a stunningly high activity number of ess cost, by significantly lowering heterogeneously catalyzed chemi- the two classical commercial depro- is essential for obtaining acceptable vent together with classical deprotec- 116 and 135, which is even higher the amount of precious metals used cal transformations in fine chemi- tection catalysts Escat 147 and 167 deprotection conversions. Now, with tion catalysts gives an unacceptable than the activity number for systems in this reaction. cal applications is the deprotection (both 5 % Pd/CP unreduced, water- with MeOH as a solvent. Not only are reaction of protected alcohols and/ wet) with a relative activity number Table 1: Summary of catalyst results the BGR catalysts applicable in O-de- Dr. Hans Donkervoort, Global Product or amines. The most commonly used of 35 and 36, respectively. Modifica- protection reactions, they also have Technology Manager, BASF entry catalyst description Solvents catalysts for deprotection reactions tions in the deposition technology re- found effective use in N-deprotection are palladium on carbon powder (CP) sulted in the preparation of 5 % Pd/ MeOH Ethyl Acetate NMP reactions. For example, the new supports of which Pearlman’s catalyst CP BGR-1 catalyst, which showed a 1 5 % Pd/CP Escat 147 35 9 10 3 % Pd/CP BGR-2 catalyst has been 2 Contact: (20 % Pd(OH) /CP) is the most widely significant higher activity number of evaluated in the N-debenzylation Tiny Koelewijn 2 2 5 % Pd/CP Escat 167 34 7 4 known. 55 in the reaction 4-BP to HQ (table 1, of N-phenylbenzylamine. As for the BASF Although these catalysts are com- entry 3). More in-depth studies were 3 5 % Pd/CP BGR-1 56 116 24 O-deprotection reaction shown be- The Netherlands mercially attractive for certain mole- initiated to investigate a possible re- 4 5 % Pd/CP BGR-2 80 135 45 fore, 3 % Pd/CP BGR-2 has approxi- Tel.: +31 30 666 9309 cules, their disadvantages include the lation between catalyst performance 5 10 % Pd/CP BGR-2 100 217 48 mately the same activity as the classi- Fax: +31 30 666 9340 occasional need for high catalyst (i.e. and carbon support characteristics. It cal 5 % Pd/CP in this N-debenzylation [email protected] 6 10 % Pd/CP Escat 161 53 87 25 precious metal) loadings in the reac- was found that carbon powder sup- reaction, when compared on a similar www.catalysts.basf.com tor, and a limited choice of solvents ports with certain specific total pore due to low catalyst hydrogenation volume, surface area and micro pore activity. Here, we highlight a recent surface area, lead to catalysts with BASF innovation in the field of highly an unprecedented high activity in the active and selective heterogeneous 4-BP to HQ deprotection reaction. In The best testimony to the innovative power of Merck, its reliability tailored to the needs of the customer. Naturally, each project palladium catalysts for deprotec- addition to this high activity, catalysts and close understanding of local and global markets is the sheer meets Merck’s own high standards in terms of ultimate quality and tion reactions: BASF Blocking Group based on these supports may exhibit diversity of its products. The Merck portfolio currently encompasses reliability – which spells peace of mind for you and more time to Removal (BGR) catalysts. This family improved selectivity by minimizing more than 15,000 chemicals and reagents, active ingredients, concentrate on your work. of products was developed through side reactions, such as hydrogena- test kits and analytical systems. Every day, new products join combining innovative carbon sup- tion of unsaturated carbon-carbon the fold, the result of purposeful research projects, specifically www.merck-chemicals.com ports with enhanced metal deposition bonds, dehalogenation reactions, etc. technologies and was nominated in Several different catalysts were made 2007 for the CPhI Innovation Award. based on this type of support and BGR catalysts show surprisingly high tested in the deprotection reaction catalytic activity while maintaining of 4-BP to HQ. For example, combin- good selectivity, thus enabling high- ing the optimal deposition technology er process productivity and lowering with special BGR carbon powders re- overall process cost in deprotection sulted in the preparation of 5 % Pd/CP reactions. BGR-2 (entry 4 in table 1). This cata- Does Merck Chemicals have something for stress? lyst showed for a 5 % Pd/CP catalyst Research Results a so far unprecedented high activity number of 83. This activity number Yes, take your pick Earlier work showed the deprotection is 50 % higher than that observed for reaction of 4-benzyloxy phenol (4-BP) the 5 % Pd/CP BGR-1 analogue (table from nearly 15,000 products. to hydroquinone (HQ), could be used 1, entry 3) and more than double the Each designed to put you at ease – as a model reaction to evaluate the activity found for the classical 5 % relative activity of different heteroge- Pd/CP catalysts (table 1, entry 1 and with ultimate purity, safety, reliability, neous catalysts. Test conditions were 2). Interestingly, the novel 3 % Pd/CP and plenty of fresh prospects. optimized to guarantee that mass BGR-2 catalyst has a similar activity transport limitations were not mask- number of 34 (table 1, entry 6) as ing intrinsic catalyst performance the classical 5 % Pd/CP catalysts. The That’s what’s in it for you. Merck Chemicals characteristics. Assuming zero-order observed higher overall activity for kinetics, the reaction rate constants BGR catalysts has potential technical can be calculated from the slope of and economical benefits to the user the hydrogen uptake curve. of BGR catalysts. Economical benefits Initial experiments focused on the are apparent due to the possibility of possible effect of the metal reduction lowering the total process cost in de- state on the overall activity of the protection reactions. For example, catalyst in the 4-BP to HQ deprotec- while using the same amount of BGR tion reaction. As shown in Figure 1, catalyst in a reaction as would have it was found that a significantly faster been used with a classic catalyst, the hydrogen uptake is observed for the total conversion of the substrate can unreduced Pd/CP catalyst compared be achieved in much shorter process to the reduced Pd/CP. Mechanistically time. This obviously allows a higher this could be explained by assuming throughput in the plant or “freeing the rate-determining step to be an up” the reactor sooner for other pro- initial adsorption of the substrate duction runs. Another cost reduc- (4-BP) to the metal surface. This ad- ing alternative could be achieved sorption process can only take place by using the 3 % Pd/CP BGR-2 ver- when free coordination sites are sion instead of the classical 5 % Pd/

Dow Chemical to acquire Rohm & haas

tary businesses to Rohm & Haas in areas such as coatings, biocides, and personal care products. “As a result, annual revenue of Rohm & Haas will be approximately $13 billion,” Rohm & Haas said. Fol- Andrew Liveris lowing the announcement, Moody’s Rohm & Haas Investors Service placed the long-term debt and commercial paper ratings Rohm & Haas has agreed to be of Dow Chemical and Rohm & Haas acquired by Dow Chemical for $78/ under review for possible downgrade. share. Dow Chemical said the trans- Moody’s said the transaction will be action is worth roughly $18.8 billion financed partly through the issuance The Barcelona® Chair by Knoll, Inc. and that financing includes an equity of $4 billion of convertible preferred investment by Berkshire Hathaway securities, cash received from the for- and the Kuwait Investment Authority mation of the PIC joint venture and in the form of convertible preferred up to $5 billion of additional debt. securities for $3 billion and $1 bil- The acquisition has been approved lion respectively. Rohm & Haas said by the boards of both companies and the deal provides that it will retain will be subject to customary regula- its headquarters in Philadelphia and tory approvals and the approval of continue to do business under its shareholders of Rohm & Haas. Dow name. The terms also call for Dow currently expects to complete the Chemical to contribute complemen- transaction by early 2009. 

[email protected] Page 6 ChemiC als CHEManager Europe 9/2008 Principles Of Heterogeneous Catalysis Part II: Desired Characteristics of a Catalyst

Catalysis – Part I of this four-part ous adsorbed species of the reaction Handbook of Heterogeneous Catalysis series was published in CHEManager mechanism that are too weak lead to high activation energies for surface First published in 1997, the Handbook of Hetero- Europe 7-8/2008, www.chemanager- reactions and thus low catalytic activ- geneneous Catalysis, has become the standard ref- europe.com. This sequel focuses on the ity, whereas interactions of the catalyst with adsorbed species that are erence on all aspects of the subject, from physico- desired characteristics of a catalyst. too strong lead to excessive blocking chemical foundations to large-scale industrial appli- of surface sites by these adsorbed cations. Now in this updated and expanded edition, The following list provides several of species, again leading to low cata- the Handbook of Heterogeneneous Catalysis (Wiley- the key attributes of a good catalyst: lytic activity. VCH; April 2008; 8 volumes, 4,270 pages with 2,000 The catalyst should exhibit good The principle of Sabatier is elegant figures; Hardcover; Print ISBN: 978-3-527-31241-2) selectivity for production of the de- in its simplicity and generality, but it is provides coverage of every important topic and sired products and minimal produc- deceptively difficult to use in practice. development related to the area of heterogene- tion of undesirable byproducts. In particular, this principle applies to ous catalysis. This eight-volume set was edited by The catalyst should achieve ad- a catalyst in its working state, and a world-renown board of editors including Gerhard equate rates of reaction at the the nature of the catalyst surface can Ertl, recipient of the 2007 Nobel Prize in Chemistry. desired reaction conditions of the be expected to be dependent on the process (remembering that achiev- nature of the catalytic reaction con- 2 www.interscience.wiley.com/reference/hetcat ing good selectivity is usually more ditions. important than achieving high cat- For example, one may begin the coverage by adsorbed CO increases. Thus, while the effects of surface alytic activity). catalytic reaction with the heteroge- Accordingly, there is a relationship non-uniformity make it more difficult The catalyst should show stable neous catalyst in a given oxidation between activity and the interaction to predict the performance of a het- performance at reaction conditions state (e.g., containing zero-valent of the surface with adsorbed spe- erogeneous catalyst from a molecu- for long periods of time, or it should metal particles following treatment cies at the surface coverage regime lar-level understanding, these effects

be possible to regenerate good cat- of the catalyst in H2 at elevated tem- appropriate for the catalytic reaction may serve to broaden the range of alyst performance by appropriate perature); however, the nature of the conditions. reaction conditions over which the treatment of the deactivated cata- surface can be changed dramatically catalyst can operate effectively. In this lyst after short periods. upon interaction with strongly ad- Catalyst Performance respect, our desire to design catalysts The catalyst should have good ac- sorbed species, such as the forma- having very high selectivity is guided cessibility of reactants and products tion of carbonaceous deposits (coke), The aforementioned complications by the synthesis of uniform catalysts, to the active sites such that high and formation of oxides, carbides, caused by the presence of different where each site has the optimal prop- rates can be achieved per reactor nitrides, or sulfides upon interaction types of sites on the surface, and the erties for production of the desired volume. with O, C, N, or S species, respectively. effects on the surface binding ener- reaction product. This strategy leads The first three key attributes of a In this case, the interactions of these gies caused by changes in surface to the idea of highly selective, single- good catalyst are influenced pri- oxide, carbide, nitride, or sulfide sur- coverages, clearly make it difficult to site catalysis as discussed by Thomas marily by the interactions of the faces with the adsorbed species enter interpret the performance of a het- et al. catalyst surface with the reactants, into the reaction mechanism. erogeneous catalyst in quantitative In contrast, the design of catalysts products, and intermediates of the Of even greater complexity is the detail. Tools are certainly available that operate over a wide range of catalytic process. In addition, other fact that a variety of different types to address these complications, such reaction conditions is guided by the species may form on the catalyst of sites are typically present on a as kinetic Monte Carlo simulations synthesis of non-uniform catalysts, surface (e.g., hydrogen-deficient catalyst surface (e.g., sites having dif- combined with results from density such that different subsets of sites carbonaceous deposits denoted as ferent coordination and/or chemical functional theory (DFT) calculations. control catalyst performance at dif- coke) that are not directly part of composition), and a majority of the Yet, from a different point of view, ferent reaction conditions. The dis- the reaction scheme (or mecha- observed catalytic activity may be the presence of different types of sites advantage of using non-uniform cata- nism) for the overall catalytic proc- caused by the contributions from a and the effects of surface coverage lysts, however, is that different sites ess. small fraction of the sites present on may well contribute to the robust- may display different selectivities for the catalyst surface. In this case, the ness of the heterogeneous catalyst for the production of various products, The Principle Of Sabatier adsorbed species interact with these operation over a wide range of reac- and control over catalytic selectivity

Photo: BASF special surface sites (e.g., steps and tion conditions. In general, the pres- may thus be limited. The principle of Sabatier states that a defect sites on a metal nanoparticle, ence of different types of sites and good heterogeneous catalyst is a ma- strength of interaction with the re- of the catalytic process. Interactions or sites present at the metal-support the effects of surface coverage both James A. Dumesic terial that exhibits an intermediate actants, products, and intermediates of the catalyst surface with the vari- interface of a supported metal cata- contribute to surface non-uniformity (corresponding author) lyst). (different types of sites producing a Another factor that complicates prior non-uniformity, and effects of 2 Contact: catalyst design is that the strengths surface coverage causing induced James A. Dumesic (corresponding author) of interaction of the surface with non-uniformity). At a selected set of University of Wisconsin, Madison, Wis., U.S. adsorbed species typically depend reaction conditions, an optimal set of Tel.: +1 608 262 1095 on the surface coverages by adsorbed surface binding energies exists that [email protected] species. For example, the interaction satisfy the principle of Sabatier (as of a transition metal surface with discussed below). George W. Huber, University of Massachusetts, Amherst, adsorbed CO may be very strong at Accordingly, the performance of a Mass., U.S. low surface coverages (e.g., bind- heterogeneous catalyst with a non- ing energy of nearly 200 kJ mol–1), uniform surface will be dominated by Michel Boudart, Stanford University, Stanford, Calif., U.S. suggesting that these surfaces would the subset of the sites having surface

be completely covered and thus poi- binding energies closest to the opti- * References available on: www.interscience.wiley. soned by adsorbed CO at moderate mal values. At higher temperatures, com/reference/hetcat pressures and temperatures; how- other sites having stronger binding ever, these surfaces may carry out energies with adsorbed species will Excerpt from “Handbook of Heterogene- catalytic reactions in the presence of become the dominant contributors ous Catalysis” gaseous CO at these pressures and to the observed catalytic activity, Copyright © 2008 Wiley-VCH Verlag. temperatures because the differen- whereas sites having weaker bind- tial heat of CO adsorption decreases ing energies with adsorbed species Part III (Catalyst Design) will be pub- significantly (e.g., to binding ener- will control catalytic activity at lower lished in CHEManager Europe 10/2008 gies near 100 kJ mol–1) as the surface temperatures. (Sept. 18).

Cognis sells its stake in Cognis Oleochemicals to PTT Chemical

Specialty chemicals supplier Cognis Chemical: In 2005 they founded Thai ids, glycerin and associated products has sold its 50 % stake in the Cog- Ethoxylate Ltd., a 50:50 joint ven- for almost 30 years. In 2006, both nis Oleochemicals joint venture to ture and Thailand’s first producer companies expanded the scope of PTT Chemical International Private, of fatty alcohol ethoxylate. 2006 saw their existing joint venture by trans- a Singapore based wholly owned the founding of Thai Fatty Alcohols ferring Cognis’ global oleochemicals subsidiary of PTT Chemical Public Company Ltd., a 50:50 joint venture and plastics technology businesses Company Limited. PTT Chemical is between Cognis and PTT Chemical’s into an operating company. Thailand’s largest producer of olefins subsidiary Thai Oleochemicals for the In an interview with CHEManager and associated products. Cognis said production and marketing of fatty Europe, PTT Chemical said that the the sale was in line with its strategy alcohols. existing production sites will not be ® Sigma, Aldrich, Supelco and Fluka are registered trademarks of Sigma-Aldrich Biotechnology L.P. and Sigma-Aldrich Co. Riedel-de Haën : Trademark registered by Honeywell Inc. of focusing on its core businesses Cognis Oleochemicals is a major affected by the transaction in the driven by the wellness and sustain- producer of natural-based oleo- short term. However, he cited the JV ability trends. The final transaction chemical products and until now partners’ commitment to investing in is subject to usual closing conditions was a 50:50 joint venture between and growing Cognis Oleochemicals, Did you know including regulatory approvals and is Sime Darby Plantation Sdn Bhd. and which could lead to “new opportuni- expected to be completed by the end Cognis. It operates production sites in ties for the company and employee the winning Sigma-Aldrich team of September. The sale was concluded Europe, North America and Asia and growth as the JV partners make for €104 million in cash, representing achieved sales of E729 million, includ- decisions on expanding capabilities an enterprise value of €285 million ing E130 million deliveries to Cognis at existing production sites” in the contains four of science’s biggest brands? for the entire joint venture. in 2007. Cognis and Sime Darby have long term.

® Cognis already has established been collaborating on the production, including all Riedel-de Haën laboratory reagents & chemicals a successful relationship with PTT marketing and distribution of fatty ac- Brandi Schuster

With our formidable range of high quality products being used today in all types of laboratories, we’re everywhere there’s science. Sigma-Aldrich’s ﬂagship brands are recognised all around the world. Moreover, as our global reach Brenntag acquires Dipol Chemical international extends even further, we’re now integrating our Riedel-de Haën® laboratory reagents and chemicals into these brands. Rest assured the products remain exactly the same, as do the production, quality controls and service you so readily identify with Riedel-de Haën®. We are Brenntag announced the acquisition the Baltic States. With sales in 2007 “We see huge potential in this proud to have the products in our range and to make them a part of our winning team. of Dipol Chemical International. The amounting to $100 million, Dipol area and want to participate in company is focused on the distribution operates a well-established distribu- the growth of this East region. The of chemicals in Ukraine, Russia and tion network via offices and ware- acquisition enables Brenntag to enter the Baltic States and also provides its houses in Kiev, St. Petersburg, Mos- the market in the Ukraine and sub- services in Belorussia and Moldova. cow and Riga. The company serves a stantially increases our presence in Founded in 1994, Dipol is now a variety of industries and acts as dis- Russia,” said Helmut Struger, man- sigma-aldrich.com/rebranding distributor of polymers and specialty tributor for companies such as Dow, aging director Brenntag Central and chemicals in Ukraine, Russia and Ineos, Ineos Nova, Dupont and DSM. Eastern Europe. 

[email protected] CHEManager Europe 9/2008 ChemiC als Page 7 Production Expansion at SAFC Buchs Site cGMP Compliance Significantly Improved

Expansion – Sigma-Aldrich Switzer- in April 2008, and the new building is project has created storage and locker The safety concept includes explosion land inaugurated its cGMP production fully operational. room facilities with a building addi- protected zones and automatic sprin- tion to the existing production build- kler systems for the storage of flam- expansion at the Buchs site mid June, ing in order to fully use the existing mables as well as a 110 m3 retention Fabian Wahl Mike Harris aimed at improving cGMP compliance The cGMP production expansion, an production equipment and to further basin for firefighting water. investment of CHF7.5 million will Director production and Vice president sales and increase compliance with cGMP. The personnel part of 350 m2 will chemistry, Sigma Aldrich manufacturing Europe, and creating additional cGMP produc- provide significant improvements on On level 1, a total floor space house changing rooms for men and Switzerland SAFC 2 tion capacity. The construction activi- the isolation of material and person- of 1,250 m has been created in a women and lounge/seminar room. nel flow as well as on cGMP storage reinforced concrete construction. In level 2 building infrastructure for ties were completed after 11 months capabilities. The logistics part of total 900 m2 will supply of utilities and to maintain In the past several years, sales of the existing production operations. house the following functions: controlled storage conditions will be GMP products have increased dra- This was mainly due to congestion on Chemical storage areas for quaran- installed in a 320 m2 steel construc- Michael Reubold asked Mike Harris, risk of cross contamination, mix matically, and with the previous pro- the production floors caused by stor- tine, starting material, and blocked tion. ups, etc. vice president sales and manufactur- duction and warehousing arrange- age of raw materials and in-process material ments, Sigma-Aldrich Switzerland intermediates that limits operations Chemical handling for filling, sam- ing Europe, SAFC, and Fabian Wahl, How will your customers benefit from could not attain full capacity from to 7/17 shift system. The expansion pling, and staging. 2 www.sigmaaldrich.com director production and chemistry, this expansion? Sigma-Aldrich Switzerland, about m. harris: Our overall cGMP com- the project: pliance has significantly improved. We have added GMP quarantine and storage capabilities for finished CHEManager Europe: What role does goods. We have three new ISO 8 the Buchs site play in the GMP pro- classified rooms for open handling duction network of Sigma-Aldrich? of APIs, dedicated for sampling, dispensation, etc. By separating of F. Wahl: SAFC Buchs plays a sig- storage and production areas the nificant role within our operations safety level has been enhanced sig- network. It contributes with a significantly. nificant portion to our worldwide sales within SAFC Pharma. As pipe- What are the key technologies oper- line partner, the key role of Buchs ated and the main products synthe- is in process development and fast sized at the Buchs site at present? delivery of products during the clini- Are you planning additions to your cal phases. Based on fast, flexible technology portfolio? and reliable service we were able to built up strong relationships to key F. Wahl: SAFC Buchs has a long his- customers during the last years tory of producing high-quality pharma products. The plant specializes How was the situation prior to the in complex, multi-step synthesis expansion of the cGMP production up to 1,600 l and low-temperature in Buchs? What were the drivers for reactions (–60 °C) up to 400 l. With the investment in the new production the new situation of available space logistics building? in the production building we plan, for example, an ongoing segregation F. Wahl: Based on the fact that our of production equipment and closed

main production building has very handling, the implementation of mi- E20001-F200-P730-V1-7600 limited space and due to the sig- cro reactor technology to our tech- nificant business growth of the last nology portfolio and the moderniza- years, we had reached a capacity tion of our drying capabilities. endpoint. All modifications were handicapped through the available Do you expect GMP production to space. We had also to resolve vari- stay in Europe rather than migrate ous compliance issues concerning to low-cost Asian countries? mass and personnel flow and access control. m. harris: Definitely yes! For projects where reliability and speed are the So you realized a new GMP zone success factors our customers are concept and separated material and looking for partners which can pro- personnel flow. Can you explain the vide operations close to their own. key points of this concept? You see also that Far East companies are building up capacity within F. Wahl: We have now a rigid access Europe. In addition, Europe has a control to the critical areas such as solid infrastructure of power supply, cGMP production plant and could ecological regulations, logistics, for realize a directed mass flow so that example which gives us competitive only people working in specific areas advantages. enter these areas – that means there is no transmitting – which avoids the 2 www.sigmaaldrich.com

BasF Q2 Net Jumps 26.7 %

Complex and ... or jjustt plugl ini theth time-consuming SIFLOW FC070 installation and transmitter and you have BASF said second-quarter net profit faster than the chemical market every advanced 26.7 % to €1.297 billion, year. Hambrecht, however, cautioned integration … a totally integrated system beating the consensus, as surging oil that he sees risks posed by “extremely prices bolstered the fossil fuel unit high and volatile raw-material prices” and on higher demand for food and and the weak U.S. dollar and a grow- right away! drug supplements and pesticides. ing trend to “stagflation and the ag- Analysts had forecast a bottom-line gravation of geopolitical tensions.” figure of just €1.074 billion, based on Quarterly Ebit at the Wintershall the average of seven estimates col- oil and gas subsidiary, its largest unit, lected by Thomson Financial News. surged 44 % to €1.026 billion, now Quarterly sales at the world’s larg- accounting for 43 % of the group’s to- Sensor Systems est chemical company grew 11.3 % to tal. BASF said that while the company Capable of measuring all liquids and gases, SIFLOW FC070 masters the full repertoire of flow applications and industries. €16.305 billion, also above analysts’ strives for an Ebitda margin of 18% expectations, which were for €15.60 every year, the margin targets lower It is an ultra-compact, space-saving and versatile coriolis mass flow transmitter with seamless integration ability: the self- billion on average. limit is 14 % when demand sinks to a configuration and communication functionality for quick and total integration into all SIMATIC S7 automation systems. Quarterly financial statements “trough.” The margin stood at 18.6 % Install effortlessly, empowered by a user interface standardized with SIMATIC Manager, and SIMATIC PDM and compatibility show that Ebit before special items, in the first half and at 17.6% in 2007, with the entire range of SITRANS F C coriolis sensors … in fact real plug and play! which jumped 18.6 %, would have financial statements show. The com- More information: www.siemens.com/sensorsystems risen just 5 % without the group’s pany continues to see BASF’s sales Setting standards with Totally Integrated Automation. Wintershall oil and gas subsidiary, volume growth at 2 % points above the Germany’s largest oil company. Chief expansion rate of the overall chemi- executive officer Jürgen Hambrecht cal market in the next five years. As Answers for industry. also confirmed his full-year outlook before, the long-term forecasts are for sales and operating earnings to based on an oil price of $100 per bar- increase slightly in 2008 and his rel and a euro exchange rate of $1.40 long-term guidance for BASF to grow to $1.50, the company added. 

[email protected] Page 8 ChemiC als CHEManager Europe 9/2008 Let the Sun Shine in Arkema is Working on Extending the Life of Solar Panels

Long Life – The life span of white color, which helps reflect of the solutions consists in using The Photovoltaic Solar Panel a solar panel is between 20 and the light toward the silicon. lenses thatfocus the light onto “Kynar Film offers genuine a given surface where narrow 30 years. Its components must @Jarts/Photocase qualities in terms of protection strips of silicon are located. Cover material (glass) therefore ensure that it deliv- from UV rays. However, we “PMMA, in this context, be- have had to demonstrate that comes totally relevant,” said ers excellent performance over these qualities are in fact main- Pierre-Louis Lambert, PMMA tained over time. To do this we development manager at Altu- the long term – a challenge Cells subjected samples to extreme glas. Glass lenses are heavy and (silicon) which has now been taken up by conditions – temperature, mois- difficult to manufacture. With Arkema thanks to a number of ture, UV rays, etc.– in ‘climatic its excellent transparency, easy chambers,’ which speed up age- molding and handling, and du- its polymers. ing. The result: Kynar Film of- rability, PMMA can be used to fers particularly effective ageing manufacture efficient lenses.” Some of these polymers have resistance, with no yellowing or PMMA lenses are already promising applications in this embrittlement,” explained An- used in the medical and au- sector. This is the case with thony Bonnet, R&D manager tomotive sectors. However, in Back-sheet Encapsulation Evatane resins, used to encap- Fluorinated Polymers at Cer- the case of solar panels, PMMA (Kynar®) (Evatane®, Luperox®) sulate the silicon in the photo- dato Research and Development will need to withstand high Diagram of a solar panel manufactured from Arkema products voltaic cells; Kynar Film, which with photovoltaics manufac- (glass, silicon, backsheet) and Center in Serquigny, France. temperatures. “Here, Altuglas forms the panel’s insulating turers in order to keep on the protection of the silicon International stands out as it mission: to convert sunlight into electricity. backsheet; and soon polymethyl improving manufacturing and electrical circuits. Evatane PMMA: Toward a New Generation offers a product that is unique Principle: an assembly of photovoltaic cells which generate voltage methacrylate PMMA, which will processes. polymers offer the ideal char- of Solar Panels? on the market: a PMMA capable through exposure to light. be used to manufacture lenses acteristics for the encapsula- of withstanding 100 °C. So we Protection: being exposed to UVs and weathering, the cells must be to focus the sun’s rays. “We want to offer polymers tion of the panels: outstanding Researchers at Altuglas Inter- are also conducting research encapsulated. They are placed between a transparent cover material, a adapted to the manufacture of transparency related to the national, an Arkema subsidi- into PMMA with a high thermal sheet of glass or plastic, and a backsheet made from a protective material, Dynamic R&D Policy solar panels, as well as develop tube production process; high ary, are currently working on stability,” Lambert said. Altu- often a plastic film, which make up the panel. global solutions to help manu- UV resistance; good electrical the substitution of glass with glas International is engaged in Requirements: the encapsulation material must offer optimum and To develop these products, facturers produce more quickly insulation; and good crosslink- PMMA for the top surface of joint research projects aiming Arkema is implementing an and more cheaply,” said Domin- ing ability. the panels, to make these more to include PMMA lenses in the durable transparency to the sun’s radiation, while also protecting the R&D policy motivated by two ique Plee, scientific director for cost-effective. PMMA offers in- manufacture of solar panels. cell from moisture, oxygen, and temperature variations. objectives: energy at Arkema. Kynar Film: herent qualities which make it “We believe that PMMA is To extend the lifetime and Protection for Photovoltaic Cells a material of the future for the going to play an increasing ecules and polymers, and man- providing waterproofness and improve the performance of Evatane: The Ideal Encapsulant photovoltaics sector: excellent role in the photovoltaics sector,” ufacturing processes based on electricity production, as well solar panels: The company Kynar PVDF (polyvinylidene transparency, very high resist- Lambert said. coating. This would mean faster as panels installed elsewhere aims to provide the players Evatane polymers are ethylene fluoride) is used in the manu- ance to UVs and weathering, production but shorter life span. than on rooftops. of the photovoltaics sector vinyl acetate (EVA) resins with facture of the film making up great design flexibility, and Research Areas for Future Generations These techniques could be used with solutions to help protect a high vinyl acetate content and the backsheet of the panels. It excellent surface hardness proof Photovoltaic Panels for mobile products (lamps, bat- 2 Contact: electrical circuits and active are used in a large number of ensures longevity and increas- tecting it from scratches. teries, refrigerators, telephones, Aline Teyssier materials in photovoltaic applications: hotmelt glues, es the yield of the photovoltaic Currently, the high cost of so- Arkema is engaged in an ongoing etc.), whose use is rather more Arkema panels. packaging film, halogen-free cells. Its main assets include lar panels is linked to the price watch regarding the technologies short-lived than in the case of Colombes, France To reduce the time and cost cable sheathing, semi-conduc- straightforward processing of silicon. Hence, researchers and needs of the photovoltaics solar panels. Tel.: +33 1 49 00 83 74 involved in the manufacture tors, etc. In the make-up of and UV resistance; resistance are looking to develop panels sector. New solutions are already Another research path con- Fax: +33 1 49 00 52 70 of panels: Joint development solar panels, EVAs provide the to moisture and temperature that produce just as much en- under study. These include, for sists in using photovoltaic clad- [email protected] programs are put in place adhesion of the various layers fluctuations; and stability of its ergy but with less silicon. One example, the use of organic molding for the roof for buildings www.arkemagroup.com The Right Mix Materials Lead the Way in Thin-Film and Organic Photovoltaics

A Growing Market – In a selenium (CIGS) organic ma- processes is especially relevant; terials including encapsulation recently released report, “Mate- terials and organic-inorganic the common production meth- materials, adhesives and the hybrids. ods involved in CIGS device and materials used to make the top rials Markets for Thin-Film and module fabrication suffer from and bottom contacts for solar @sriesen.ch/Photocase Organic Photovoltaics,” NanoMar- With the possible exception relatively slow throughput, panel. This includes transpar- of a-Si, all of these newer poor material utilization, and ent conductors, an area where kets predicts that the $841.5-mil- approaches to PV require new relatively high vacuum. Indus- there is already a lot of innova- lion market for thin-film photo- strategic thinking from materi- try players are exploring the tion using polymers and nano- als suppliers. The older kind of use of vacuum-free deposition materials, as a way of getting voltaic materials (TFPV) in 2008 PV, where materials were well methods based on small par- around the cost and resilience will grow to $1.8 billion in 2010 understood called for materials ticles or electrodeposition; as issues associated with ITO. suppliers to compete on little well as deposition by high-rate before climbing to almost $2.9 more than cost and availabil- co-sputtering from cylindrical Weighing The Risks billion in 2012 and $3.8 billion ity. Today’s emerging thin-film magnetrons. and organic PV are asking more “Excitement” is often another in 2015. The majority of this than many bulk/basic materials The Evolution of Process Development way of saying “hype”; materi- opportunity will come from a-Si supplier can handle. The spe- als firms needs to be very care- cialty materials firms that get The market opportunity for ful that they are not investing materials, which represent 59 % involved with the various thin- materials used in organic/hy- in a boom that is about to end. of the 2008 market. However, film/organic approaches to PV brid type solar cells will grow First, by 2009 or 2010, a lot must be willing to work closely from $500,000 in 2008 to $3.8 of currently planned TFPV alternative-materials technolo- with their customers to help million in 2010, before climb- manufacturing capacity will gies will begin to take a larger overcome materials and proc- ing to $223.4 million in 2015. be in place, and there will be ess challenges and improve Despite the perceived benefits spare capacity until the market piece of the market, represent- conversion efficiencies. While terials used in this sector limits portunity/risk scale from a-Si. in multi-junction cells. There is of OPV devices, this technology catches up a few years later. ing 51 % by 2015. the relationship between mate- the opportunities for materials Here is a material – actually a also the issue of the appropriate lags behind its inorganic coun- Second, a key driver for TFPV rials supplier and customer in suppliers. Garden variety silane class of material – that seems materials for the back contact terparts in efficiency. In the in the past few years has been the old PV was very hands off, gas is a big part of the bill of to promise something genuinely in the CIS-based cell. Because inorganic part of the market, the shortage of crystalline sili- As a result of these trends, the new PV requires something materials in this sector. This is new; performance that is close of the CIS/CIGS cell construc- there is a fairly clear distinc- con that the conventional type NanoMarkets said it believes closer to a partnership. In some not to say there will be no op- to conventional PV, with all the tion, the material used for this tion between materials supplier of PV uses. This shortage is that significant opportunities cases, materials suppliers may portunity for innovation in the cost and flexibility advantages contact must live up to unique and solar panel developer. The now over. Finally – and ironi- for specialty materials firms are actually be required to develop silicon space. Nanosilicon inks of a thin-film approach. On the and demanding standards. Yet raw inorganic materials used in cally – PV materials may raise opening up. The two general materials are specifically cus- and silicon slivers are being other hand the formulations of another area that is seen by TFPV often come in the form of environmental issues. The tox- factors at play here are: The tomized for a particular solar developed are being developed, CIS/CIGS films for maximum some as an area of opportunity powders, sputtering targets and icity of the cadmium for CdTe thin-film and organic PV busi- panel manufacturer. promise better cost/perform- efficiency and ease of manu- in the CIS/CIGS space is the use involve chemicals, all of which is an issue that is frequently ness is immature and is still in In this new business environ- ance ratios, and – from a busi- facturability is very much an of nanomaterials to make print- established materials firms are raised, although the serious- search of novel materials and ment, where should specialty ness perspective – are value- open question and helping to able precursors that are crys- familiar with. In the OPV and ness of this problem has been fabrication processes, a need materials producers focus their added materials plays. answer this question would be tallized into CIGS. Researchers dye cell space, materials are disputed too. Silver – used in that specialty materials firms efforts? The main challenge for The combination of micro- well worth the time and trou- are also exploring wider band- highly novel and it is often the pastes and inks for back and have the know-how to address; TFPV is improving conversion crystalline silicon and a-Si in ble of materials firms since Na- gap chalcopyrite materials with solar panel manufacturer who front contacts in PV – also have and the underlying growth of efficiency as well as stability tandem cell architecture has noMarkets said it has estimated a bandgap close to 1.4eV, but holds the IP on they materials some environmental nega- the addressable markets is cur- of the cells. These are largely shown high conversion efficien- that the market opportunity for efficiencies of CIGS solar cells in the first place. tives. rently very high. materials issues and they will cies and bring cell design into materials used in CIS/CIGS type continuously decrease with While in the inorganic part None of these factors should require innovations in several the product strategy as well as solar cells will grow from $193.2 increasing bandgap when its of the market, the solar panel hurt the growth thin-film Special Challenges areas: substrate, manufactur- materials. million in 2008, to $465.2 mil- bandgap exceeds 1.2eV, which maker necessarily buys much and organic PV, according to ing, coatings, adhesives, metal- Other areas where NanoMar- lion in 2010, before climbing to makes it a challenging research of the raw materials from the NanoMarkets, which believes Because of its advantages in lization and encapsulation. kets said it believes that there is $1.11 billion in 2015. issue. One critical thing for established chemical indus- that many specialty materials terms of cost, flexibility and an opportunity for a materials- Some of the areas where materials suppliers to keep an try, in the organic part of the firms will be likely to cash in weight, markets for thin-film Which Materials? based market strategy to help NanoMarkets said it believes eye on is the development of market, the situation is more on this growth. and organic PV are expanding distinguish a-Si products in the that there is room for firms new processes for manufactur- one of a firm with patents on even more rapidly than the al- The most well known of the market include substrate de- to distinguish themselves in ing TFPV cells from specialized photoactive materials making a ready-fast-growing conventional thin-film approaches to PV is velopment, and encapsulation the CIS/CIGS marketplace is in forms of vacuum deposition strategic decision whether to be PV market. The market is best a-Si; this is the technology used materials applied as a spray improved compositional con- to flexo printing. These new a materials supplier or a solar 2 Contact: broken out by the four main ac- in solar calculators. PV using or roll-on laminate, both which trol during deposition; under- production modes will require panel developer. Robert Nolan tive materials classes used: a-Si materials hold the larg- has the potential to lower the standing and controlling the not so much different kinds of Output of TFPV and organic NanoMarkets amorphous silicon (a-Si), est share of the TFPV market, cost of the solar module and electronic properties and grain materials, but rather new for- PV is like to reach a point in Virginia, U.S. cadmium telluride (CdTe), which translates into volume make it more flexible. boundarie and developing wide mulations. the next few years that this Tel.: +1 804 270 7010 copper indium selenium (CIS) opportunities. However, the CIS/CIGS is a material that band-gap cells for high voltage For CIS-based cells the need sector will be of interest to [email protected] and copper indium gallium sheer “ordinariness” of the ma- is at the other end of the op- in open circuit (VOC) and use for high throughput, low-cost suppliers of other kinds of ma- www.nanomarkets.net

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CHEManager Europe 9/2008 ProductionFacilities · Processes · t echnologies Page 9

Maintenance Maintenance Pumps

Worrying How to Pump maintenance handle crisis procurement statistics situations strategy Page 10 Page 12 Page 13 Optimal Maintenance Strategies Achieving High Reliability While Keeping Maintenance Costs at Bay

Getting It Right – One of the nents are systematically docu- criticality matrix. The result is trolling of material are also an most important levers for reli- mented. We use a mind map- a detailed proposal for the right integral part of the line. As the ping software for this purpose. maintenance strategies. line is new to the site – trans- ability, as well as direct mainte- It is easy to use and alter, and ferred from another site, modi- Cord-Philipp Winter nance cost, is the right mix of also structures the equipment Putting Theory into Practice: fied and completely renewed Capacity Expansion In Turkey The Chemicals Business Area of Researcher, RWTH visually. The structure of equip- Proof of Concept on the software side – there is Aachen University German-based Evonik Industries has expanded the silica capac- maintenance strategies for comment documented in the soft- currently only a sketchy main- ity of its joint venture Egesil in Adapazari, near Izmir, Turkey. ponents. ware, builds the basis for the so We applied this approach in one tenance plan at hand. With the new capacity of 40,000 t/y, Evonik Industries is keeping themselves. They are too com- called failure mode and effects of our project partner’s sites, a During the validation project, pace with the growth in demand for tire silica in Europe. Expan- plex, time consuming and cost- analysis (FMEA). A FMEA is a manufacturer of base materials we systematically applied the sion involved the addition of a new dryer, which commenced The right mix enables reaching intensive, so they require too method to analyze potential fail- for printed circuit boards. These abovementioned three-staged operation in the second half of 2007. The primary customers high reliability with low costs. many internal resources that ure modes within a system with base materials must follow the approach, resulting in an for Egesil products are the tire industry and manufacturers of The Competence Center Main- need to be balanced against the objective to classify them by highest standards in quality and up-to-date maintenance strat- industrial rubber goods and dispersion paints. tenance Management at RWTH the gains. And as these methods severity or determine the fail- growing global demand puts a egy plan for the equipment. Silica are used as carriers and anti-caking agents in the ani- Aachen University’s Research have their costs up-front, they ure’s effect upon the system and high pressure on reliability. In mal feed and food industries. They are also used as pigments Institute for Operations Man- must be justified in a budget the associated costs. In the con- the plant, laminates for printed Conclusion in the paints and colorants industry and as abrasives in the agement in Germany launched by maintenance management text of maintenance, FMEA can circuit boards are produced manufacture of toothpaste. Together with rubber silanes and a project making the gains of and demonstrate their value be used for a systematic analy- from raw materials and further The current results of the re- rubber blacks, silica are an important component of low rolling component specific mainte- quickly. sis of potential malfunctions processed according to cus- search project IH-Mix-Id show resistance tires, which feature lower rolling resistance. Evonik nance strategies accessible for Every approach to making and their causes on different tomer specifications, especially that it is possible to apply even Industries is the only company worldwide to offer all three of small and medium enterprises strategy selection processes like component groups of an asset regarding the size of boards. complex maintenance strategy these reinforcing agents, and is also the world’s leading manu- (SME) by reducing the effort RCM applicable to SMEs needs as well as the resulting effects The maintenance organization selection processes in mainte- facturer of these products for the rubber industry.  and cost of the selection proc- to target that specific challenge. on the production process, the of this particular site is very nance organizations of SMEs. esses. Balancing the costs of optimi- asset availability and further sophisticated in using methods However, it is imperative to Chemtura: European Technical Service Laboratory for Growth In zation against their gains in a production related aspects like 5S – a methodology for a streamline the approach to Polyurethanes Chemtura Corporation’s Performance Specialties Maintenance Budget – quickly demonstrable way is the while simultaneously tracking lossless workplace organiza- the specific needs of SMEs and business has completed a substantial expansion at its European Investments or Costs? key to opening the door to com- the costs of failure and down- tion to improve productivity focus the efforts on the equip- regional technical service laboratory – an investment to support plex maintenance optimization time. We adapted the generally and performance – and TPM – ment that promises to show further growth of its range of Adiprene/Vibrathane polyurethane Maintenance organizations, both processes fot SMEs. accepted FMEA-method to the the maintenance concept of the the fastest result to overcome prepolymers. The newly refurbished and upgraded laboratory is internal departments and exter- The goal of the research specific SME-requirements and Toyota Production System – but budget pressures. Therefore a located at Chemtura’s European manufacturing plant in Latina, nal contractors, are exposed to project IH-Mix-Id (Research have developed a tool called is yet lacking a powerful main- pre-selection process that lim- Italy, where it produces Adiprene, Vibrathane & Ribbon Flow TDI a double sided pressure: While project Nr. 14968 N) – that is FMEA-Analyzer which enables tenance strategy selection tool. its the number of equipment and MDI prepolymers, Adiprene Low Free TDI prepolymers and they face the challenge of reach- sponsored by the Federal Min- the user to run the FMEA very In the pre-selection proc- for analysis is the key for the Vibracure curatives. ing high uptime and reliability istry of Economics and Technol- easily without external support ess, we identified an integrated application of maintenance A major part of the new capabilities is a six-component PU.MA – due to the increasing under- ogy (BMWi) through the Ger- or intensive training. As a result processing line as a first target selection processes in SMEs. meter mix machine, designed with Techno PU.MA to meet Chem- standing of the importance of man Federation of Industrial the FMEA-Analyzer provides a for our further analysis. In the Our approach proved valid in tura’s exacting requirements. The machine is one result of a reliability for company perform- Research Associations (AIF) – is component specific prioritiza- line circuit board laminates the first field-tests and we are recently announced cooperation agreement between Chemtura ance – they are nevertheless the development of a focused, tion of failures and their effects. measuring on average one confident that it will continue to and Techno PU.MA within the Europe, Middle East and Africa bound to a strict, often shrink- easily applicable, resource-sav- This information is the input square meter are processed in be successful in the forthcoming markets.  ing, budget – due to intensify- ing approach for an individual parameter for the maintenance several steps into smaller board validations. ing global competitive pressure. maintenance strategy selection, strategy selection process. sizes requested from customers, Linde to Invest $180 Million in South Korean Gas Units German That results in conflicting goals giving SMEs a powerful tool to Based on the analysis of thereby being cut and grinded 2 Contact: industrial gas producer Linde said it will invest $180 million for maintainers in companies: enhance their maintenance equipment and components as several times. Cord-Philipp Winter to expand city-owned gas production facilities in South Korea, Saving costs and enabling re- management and improve op- well as the categorization of the The line consists of a number Research Institute for Operations Management Seoul’s energy ministry recently announced. Industrial gas is liable production at the same erative performance. technical and monetary conse- of centrally controlled cutters, at RWTH Aachen University used in sectors such as crude refining, chemicals, steel and ship- time. The top management’s quences of occurring failures grinders, cleaning units and Service Management Department building, and generates about 60 trillion won ($58.98 billion) attention to reliability issues A Three-Staged Approach and effects, maintenance strat- equipment for transport and Aachen, Germany per year worldwide. South Korea’s industrial gas market grew is often not accompanied by a egies are systematically defined shifting of materials, including Tel.: +49 241 47705 243 to 1 trillion won last year and has been expanding at a double- resource commitment. Mainte- The approach to optimized on component level. These strat- one industrial robot. Sensors for [email protected] digit growth rate, the ministry said. Later in the day, Seoul’s nance is mostly seen as a cost maintenance strategy mixes de- egies are deduced by means of a measuring, placement and con- www.fir.de vice-energy minister Lee Jae-hoon will sign a memorandum of factor while the link between in- veloped in this project understanding (MOU) with Aldo Belloni, a member of Linde’s vestments in maintenance and consists of three con- executive board, on the development of the facilities in Yongin, high uptime is neglected. secutive steps. A pre- south of Seoul, the ministry said.  Therefore, resources – espe- selection process is cially in SME – need to be uti- the first step. It iden- Umicore to Build Automotive Catalyst Production Facility in India lized efficiently and appropriate tifies the assets where Specialty materials group Umicore said it is to build an auto- tools and methods employed to the most gains can be motive catalyst production facility in India. The site will have a achieve the abovementioned generated and focuses production capacity to equip approximately 1.5 million cars a goals. the efforts explicitly on year, the group said. Construction will be completed by 2010 and Maintenance strategies play those opportunities. production will begin soon after. The new production plant will a central role in this effort. They This streamlines the be capable of supporting “up to a third” of the estimated Indian are defined as those policies process of strategy automotive market, it said. Umicore also said it will expand its that determine which mainte- selection, because the current “commercial and technical application services” for the nance tasks are performed on more complex identi- region.  which components at which fication of optimized time. They are commonly cat- strategy mixes takes BASF to Invest in Two New Polyurethane System Facilities BASF egorized as reactive, preventive place in those areas of said its unit Elastogran will invest in two new facilities in Poland and predictive strategies and operations yielding the and Slovakia to meet rising demand for polyurethane systems in result in different cost struc- largest improvement central and eastern Europe. No financial details were disclosed. tures, especially in respect to levers. The market for polyurethane systems in the Czech Republic and balancing direct maintenance In the second stage Slovakia is currently growing at rates exceeding 7 %, driven costs and indirect maintenance the equipment select- primarily by the automotive industry, the company said in a costs (i.e. the cost of downtime). ed for further analy- statement. In Poland, the market is seen expanding at a rate of An optimized and component- sis is structured, so up to 7 % over the next few years, helped by the construction, specific mix of strategies results all relevant compo- Figure 1: Three staged approach to optimize maintenance strategies automotive and cooling appliances market. BASF will start in in a minimum of these com- 2009 local production and development of polyurethane systems bined costs. in the facility near Bratislava, while the one in Posnan, Poland will come online in 2010.  The Cost Of Optimization evonik: new Process to Boost growth of hydrogen Peroxide Market BASF: Antwerp Possible Location for Coal Gasification Plant BASF is The processes to identify the considering Antwerp as a possible location for its planned €1.5 optimal maintenance strate- The Korean company SKC of propylene oxide from propylene member of the executive board tion facility in Korea is now a billion coal gasification plant, should the project be realised, gies are not yet tailored to the Seoul has started up in Ulsan and hydrogen peroxide (H2O2). of Evonik responsible for the reference point for the construc- Financial Times Deutschland reported, citing management board needs of SMEs. Looking closer the world’s first ever commer- The joint venture Evonik Head- Chemicals Business Area, said tion of further plants using the member Harald Schwager. BASF has previously also considered to the methods used in large cial-scale plant for production waters supplies the H2O2 in he expects this first commer- HPPO process. With an annual Ludwigshafen – where the company is headquartered – as a scale operations to identify of propylene oxide by the iHPPO Ulsan directly “over the fence” cial-scale application of hydro- capacity exceeding 600,000 mt, possible location. Currently, the project has been shelved due to these optimal strategy mixes, process, according to Evonik to the HPPO plant. gen peroxide in the chemical Evonik is the world’s second uncertainty over the future costs of emission certificates, the com- namely Reliability centered Industries. The plant has an The company said the com- synthesis of propylene oxide to largest producer of hydrogen pany previously said. The German government and the European Maintenance (RCM), one finds annual capacity of 100,000 mt. missioning brings Evonik a result in annual growth of the peroxide, which has so far been

Commission are in an ongoing tussle over how to handle the another cost component that Evonik Industries and Uhde, step closer to its strategic goal H2O2 market by 200,000 mt used mainly in paper and pulp allocation of emission rights from 2013. BASF was planning to often constitutes the main rea- who jointly developed the HPPO of providing hydrogen per- over the next 10 years. bleaching. The annual world- use the gas from the plant to produce methanol and ammonia, son why these methods are not process, have licensed it to SKC. oxide in large quantities for Engel and Helmut Knauthe, wide requirement for these clas- which are key chemicals for plastics, fertilisers and pesticides.  directly applicable in SMEs: The Using a catalyst developed by chemical processes such as the member of the executive board sical applications exceeds three cost of applying these methods Evonik, the process produces HPPO process. Dr. Klaus Engel, of Uhde, agreed that the produc- million metric tons. 

[email protected] Page 10 Maintenance CHEManager Europe 9/2008 Safety In Maintenance A Serious Problem to be Addressed

Danger – Recent AFIM (the French Survey Findings French Maintenance Association) Surveys carried out in France by AFIM and other bodies have highlighted surveys have established that the fact that, in this country, maintenance is the most dangerous of all maintenance is the most dan- Gerard Neyret industrial jobs: AFIM Fatality rate ranges from five to seven times the average rate for French gerous industrial job in France. industry (i.e. the same magnitude as civil works contractors) fulfilled in the Etang de Berre This situation may obviously 44 % of all industrial fatalities recorded in 2002, in the French industry, area, near Marseilles, with its vary in different countries; nev- large and diverse industrial are related to maintenance operations Between 1996 and 2006, the maintenance costs have been reduced by ertheless, whatever his country, a cluster comprised of petro- chemical plants, oil refineries, 10 %, but industrial maintenance accidents have increased by 56 % maintenance worker often has to steel plants, cement plants etc., 50 % of industrial accidents strike the segment of youngest workers work in unusual positions, under together with some large main- (20 % of the maintenance staff), sometimes disabling the young work- tenance contractors. Managers ers for life unusual conditions. of these companies were deeply The average frequency rate of industrial accidents for in-plant main- concerned with safety in maintenance staff is 1.6 times the mean value in French industry; the fre- The maintenance workers spend tenance and they had already quency rate among maintenance subcontractors staff is 10 to 16 times their working life in situations implemented the first French higher than the rate among in-plant maintenance staff more prone to risks than other certification on safety assurance 25 % of industrial maintenance accidents are caused by mishandling workers. Moreover, they often for their contractors (MASE have to work under a heavy certification). Local health au- or falling, and 20 % by process installation (e.g. poor cleaning, inad- stress-load, due to pressures to thorities were also in favor of equate work permits) work fast when an unexpected the survey, which helped obtain easier and safer access for astrous accidents. Moreover, it ing the necessary guidelines to Fitters working on production equipment have the highest accident shutdown of equipment occurs. the necessary funding. The sur- maintenance specialists) improves the status and state of implement appropriate actions rate; other high rates occur to boilermakers, piping workers and weld- This situation has worsened vey was carried out by a com- mind of the maintenance work- to combat safety in mainte- ers. On the other hand, the frequency rate for electricians and I&C with the general trend towards petent organization, the BIPE. How to Improve the Situation er, a job for which many young nance. Answers to this ques- workers is lower than the mean value increased subcontracting in The survey highlighted some in Other Countries? people are reluctant to apply. tionnaire are expected at the The professional diseases among maintenance workers are increasing, maintenance. Through this very worrying trends (see info As with any scientific ap- end of 2008. mainly due to asbestos (six times the French mean value), benzene process, the skilled mainte- box). The situation may vary from proach, the first action to im- Main issues of this question- (70 times) and deafness due to excess of noise (25 times) nance employees of a company country to country, with regard plement is to get the relevant naire are: The average unavailability of maintenance staff due to accidents and are often replaced by temporary Corrective Actions Implemented to the local legal system on safe- data to assess the situation and To get a general overview professional diseases is 1 %. This figure jumps to 9 % for fitters, 4 % for low-cost young subcontracted ty, technical training in main- to then set the right priorities of the existing situation re- workers, lacking experience, The identification of problems tenance, industrial practices, in terms of corrective actions garding health and safety in piping workers and 2.5 % for boilermakers and not fully aware of the built- through the findings process involvement of union workers to be carried out. As the saying the local industry (existing On average, 7 % of maintenance workers are struck every year in an in dangers of a workshop. enabled the development of a and mainly the local “culture” goes “If you can’t measure it, bodies, existing regulations, industrial accident followed by their temporary unavailability Until recently, this risk was number of corrective actions: on health and safety. you can’t manage it.” role of the Unions, teaching The average cost of accidents and professional diseases is 1 % of the underestimated, due to the lack More elaborated statistics, to But the general trend to- In our opinion, it is up to any of safety, safety assurance total direct maintenance cost of the plant. The cost range for the plant of statistics regarding industrial establish priorities wards an excessive cost-cutting national maintenance society to certifications, usual safety of an industrial accident involving temporary unavailability of the work- accidents and professional dis- More involvement of the plant in maintenance, as well as the start similar actions, according procedures, etc). er varies from E27,000 to E54,000 according to 2004 figures. eases in maintenance. There- management, workers’ un- harsh competition between to the situation in their coun- To check existing statistics fore, it became necessary to ions and the industrial medi- maintenance subcontractors, try. Maintenance not only needs and studies regarding the measure the situation to be able cal bodies, as well as Social leads to the development of a brains, it also needs hands. On safety in maintenance. dents in maintenance compared eases affecting maintenance to correct it. Security and Institutes for population of low-cost, young, average the maintenance staff To examine the opinion of with the average industrial rate workers. Research on Safety unskilled and inexperienced is comprised of 3 % graduated representative panels of in the country, as well as pro- French Survey Implemented by AFIM Preventive actions – devel- maintenance workers who are engineers, 17 % technicians or plant managers, maintenance fessional diseases and fatality When the relevant data is opment of safety assurance more prone to industrial acci- supervisors, and 80 % workers managers, unions and main- rates. available it becomes possible Before 1996, such a situation certifications among main- dents. This assumes a some- (in-plant or contractor’s). tenance contractors. But to enable suitable im- to determine priorities and to was unknown in France, as all tenance contractors and im- what similar trend towards a To determine the policy of provement policies, more de- propose an action plan to the safety statistics were “vertical” plementation of the teaching deterioration of the safety in The European Approach the local Maintenance Asso- tailed statistics are needed: relevant authorities, managers – related to industrial branches of safety in maintenance at maintenance in many coun- ciation to improve the situa- Frequency rate according to and unions. – and not “horizontal” – related technical colleges and uni- tries, with not only staff safety At the beginning of the year, tion on health and safety in the crafts (fitters, mechanics, to the crafts, irrespective of the versities consequences, but at times also the Chairman of the Europe- its own country. In case of a welders etc) and the workers’ branch, which is the case of Proactive actions such as the environmental consequences. an Federation of the National lack of relevant data, it is sug- status (permanent or tempo- maintenance jobs. application of the Unique An example of this is the recent Maintenance Societies (EFNMS) gested to take an approach rary appointed) 2 Contact: As the need of generating Safety Document to be applied disaster at a BP oil refinery in requested AFIM to implement similar to AFIM’s, by imple- Relative occurrence of acci- Gerard Neyret the lacking data became ur- legally at every French plant, the U.S. and send on his behalf a ques- menting a suitable survey on dents by nature (fall, burning, AFIM (Association Française des Ingénieurs et gent, the president of AFIM in the framework of Articles 9 Improving the health and tionnaire to every European a representative sample of electrocution, etc.) responsables de Maintenance) decided to implement a sur- & 10 of the European Direc- safety of maintenance workers Maintenance Association. industries. Localization of the wounds Paris, France vey on a fairly representative tive 89/391/EEC, and safety not only reduces the direct and The aim of the questionnaire Seriousness rate according to Tel.: +331 56 56 29 29 sample of industries, to attain on maintenance taken into indirect maintenance costs, it – which is only a proposal – is The most important statistics the age of the workers Fax: +331 56 56 08 53 some approximate figures. The consideration at the design also reduces environmental to help the national mainte- include the frequency rate and Determination of the most [email protected] most favorable conditions were stage of new equipment (e.g. risks by reducing potential dis- nance societies in establish- seriousness of industrial acci- frequent professional dis- www.afim.asso.fr/ Structure the Approach to Manage Maintenance A Process and Framework Reference Model

Key Words – Effectiveness, Effectiveness Effectiveness the direct maintenance cost tions, the way these functions Efficiency and Assessment. labor and other maintenance may fail and then establishing required resources. In this part a set of applicable and effec- Phase 3: These highlight the three stages Phase 1: Phase 2: Phase 3: of the process we deal with the tive preventive maintenance Immediate Phase 1: Phase 2: required in a successful mainte- Definition of the Assets priority Failure Root efficiency of our management, tasks, based on considerations intervention Balance Score Card Criticality Analysis which should be less important. of system safety and economy. maintenance and maintenance Cause Analysis nance management model. on high impact (BSC) (CA) Efficiency is acting or producing A formal method to do this is objectives and KPI’s strategy definition (FRCA) weak points with minimum waste, expense, the Reliability Centered Main- Maintenance management is or unnecessary effort. Efficiency tenance (RCM). multifaceted and includes the is then understood as providing Improvement Improvement activities of the management Phase 8: Phase 4: the same or better maintenance Conclusions that determine the mainte- Phase 8: Phase 4: for the same cost. Continuous Design of the nance objectives or priorities, Total Productive Reliabilty-Centred The third part is devoted to This article refers to the process Improvement and preventive strategies and responsibilities. Maintenance (TPM), Maintenance maintenance and assets life – the course of action and the new techniques maintenance plans These can be implemented by e-maintenance (RCM) cycle cost assessment (phases 6 series of stages or steps to fol- means such as maintenance utilization and resources and 7), providing information for low – and the framework – the planning, control and super- analysis and control. Finally, the essential supporting structure vision, and can be improved last part of the process ensures and the basic system – needed through several means includ- Phase 7: Phase 6: Phase 5: Phase 6: continuous maintenance man- to manage maintenance. Mod- Phase 7: Phase 5: ing economical aspects in the Asset life cycle Maintenance Preventive plan, Reliability agement improvement, which is els and methods to improve Life Cycle Risk-Cost organization. In order to man- analysis execution schedules and Analysis (RA) & a must for this type of reference maintenance management de- Cost Analysis Optimization model. age maintenance effectively and replacement assessment resources Critical Path Method cision making are numerous and efficiently, we can sum- (LCCA) (RCO) in literature and praxis and optimization and control optimization marize these points by clearly (CPM) Maintenance Management Framework can be classified according to understanding the following: their more suitable utilization Assessment Efficiency The maintenance management Assessment Efficiency The maintenance management within the maintenance man- process – the course of action Figure 1: Maintenance management model Figure 2: Sample of techniques within the maintenance management framework framework characterizes the agement process. More detailed and the series of stages or steps essential supporting structure information and case stud- to follow – and the maintenance and life cycle cost assessment, maintenance plans, schedules, ciated with production losses, process produces the required and the basic system needed ies are presented in the book management framework – the and maintenance continuous controls and improvements. and ultimately with customer result. to manage maintenance. A “The Maintenance Management essential supporting structure improvement (fig. 1). Effectiveness shows how well a dissatisfaction. In the case of The part of the process con- description of this framework Framework.” and the basic system, needed The part of the process de- department or function meets maintenance, effectiveness can ditioning maintenance efficien- can be made placing most to manage maintenance. termining the maintenance its goals or company needs, represent the overall company cy (phases 4 and 5) has a differ- well known tools and methods effectiveness, consist of three and is often discussed in terms satisfaction with the capac- ent significance level. Our abil- for maintenance management The Maintenance Management Process phases (1, 2 and 3). This initial of the quality of the service ity and condition of its assets, ity to deal with the maintenance within their “best fitting” phas- part of the maintenance man- provided as viewed from the or the reduction of the overall management implementation es of the maintenance manage- 2 Contact: The maintenance manage- agement process conditions the customer’s perspective. This company cost obtained because problem for instance, our abil- ment process (fig. 2). Adolfo Crespo Márquez ment process can be divided success of maintenance in an will allow us to arrive at a po- production capacity is available ity to ensure proper skill levels, For instance, designing the Department of Industrial Management into different parts: mainte- organization, and determines sition where we will be able to when needed. Effectiveness proper work preparation, suit- preventive maintenance plan School of Engineering, University of Seville nance effectiveness, mainte- the effectiveness of the subse- minimize the indirect mainte- concentrates on the correctness able tools and schedule fulfill- for a certain system (phase 4) Seville, Spain nance efficiency, maintenance quent implementation of the nance costs, those costs asso- of the process and whether the ment will allow us to minimize requires identifying its func- [email protected]

[email protected] CHEManager Europe 9/2008 Maintenance Page 11 Whatever Can Go Wrong Will Go Wrong Lessons Learned from a Cluster of Incidents at Hoechst

Don’t Relax – Chemical indus- safety, as well as quality, prob- large residential area with a company to become an industry try operates with hazardous sub- lems. Even if such a chain of substance classified as carcino- leader in safety. Among the suc- events would have been con- genic. Although it became evi- cessful examples are Hoechst, stances under frequently hazard- sidered as too unlikely, the dent rather soon that there was Sandoz – after its warehouse Prof. Dr. Dr. ous conditions. Due to intensive installation of such a low cost only a very minor risk to the fire in Basle contaminating the Christian Jochum device may have been justified residents, fears remained for a river Rhine – and recently BP – Consultant safety measures, accident rates at least as an “add-on.” This long time. Any attempt to dis- after the Texas City explosion. are well below industry average, demonstrates that the para- cuss them “scientifically” was injured, but part of the site had mount consequence of any risk counter-productive. Such fears Crises Can Be Managed and especially major accidents to be evacuated. assessment should be to pre- have to be accepted. They may occur very seldom. Triggered by the first acci- vent risks or at least mitigate lead to requests for research According to Murphy’s Law, cri- dent, the following accidents their impact. There is no lack of which is scientifically not justi- ses always “happen at the worst and a number of small inci- instruments and in most cases fied – but a company may be possible time, in the worst pos- However, incidents unfortu- dents – which do happen in all it is not a question of money. well advised to accept that. sible way.” A comprehensive nately follow Murphy’s Law: major chemical sites from time Failures are rather caused by and well operating crisis man- “Whatever can go wrong will to time – received unprecedent- insufficient identification or Lesson No. 7: Consider Restoring agement system enables com- go wrong, and at the worst posed attention from the Germany assessments of risks. Trust During All Actions panies to make best use of their sible time, in the worst possible authorities and media. The au- own resources, activate addi- way.” The European regulation thorities questioned Hoechst’s Lesson No. 4: Trust in a company by neigh- tional resources as fast as pos- on major accidents (Seveso reliability as operator and Communicate Remaining Risks bors, authorities and the media sible and to demonstrate their Directive), as well as similar launched a detailed investiga- is strongly linked to its “license competency to manage risks. regulations in other regions tion. Although the company was As long as chemical industry to operate”. Major accidents This is exactly what people (EPAs Risk Management Pro- eventually exonerated, the inci- has to use hazardous substanc- and even more their handling, expect from a good “corporate gram), therefore stresses the dents demonstrated systematic es and has to meet economic may therefore jeopardize the citizen.” A Hoechst neighbor necessity to be prepared for weaknesses both in prevention challenges it will never be able existence even of major com- expressed this point in a pub- emergencies. Although chemi- and crisis management, which to avoid all risks. However, panies. It remains to be seen to lic hearing in 1993 saying: “We cal companies are adhering to may be found at other com- many companies (i.e. Hoechst what extent the series of inci- know that you are working with these obligations, not all of them panies or organizations, too. prior to 1993) do not like to talk dents in 1993 influence Hoechst hazardous chemicals and we have a consistent approach to Therefore the lessons learnt are about risks with their neighbors move to becoming a life science accept that accidents may hap- crisis management. still worth considering. and other stakeholders. After company a few years later, pen. What we do not accept is an incident, this gives them splitting off the more hazard- if risks and even accidents are The Case Lesson No. 1: Don’t be Satisfied by a little credibility in their ability ous chemical activities. It is a poorly managed.” Therefore, Good Accident History to manage risks. An open and fact, however, that a number the overall lesson learnt from Hoechst was one of three big understandable communication of companies have gone out of the Hoechst incidents is to give German chemical corpora- Major chemical companies, like of risks prior to any incident is business after major accidents. crisis management a higher tions, operating until 1997, Hoechst, mostly only have a few also the basis for emergency Moreover, the basis of trust has priority than frequently found. when it was transformed into a reportable major accidents. Top preparedness, both within and to be laid prior to incidents. A Like insurance this is an invest- number of smaller companies. management and safety profes- outside the company. company which behaves ar- ment which may never be used, On Feb. 22, 1993, a major ac- sionals may focus on and be sat- rogantly to routine complaints but may save lives of people and cident occurred at one of the isfied by low figures for occu- Lesson No. 5: Prepare for Major by neighbors or questions by of the company. companies’ sites in Frankfurt, pational accidents, as until now Emergencies and Crisis Situations authorities and journalists has Germany, due to an uncon- these are the only widely used an especially hard time after a trolled reaction. Nobody was and accepted key performance Handling fires, explosions and major accident. Even minor in- 2 Contact: seriously injured, but a resi- indicators for safety. This may chemical spills are the basics cidents will then serve as proof Prof. Dr. Chr. Jochum dential area was contaminated blur the view on precursors of for chemical companies. How- for poor reliability, as happened Bad Soden, Germany with a substance just recently process safety incidents as typi- ever, it is neither technically nor to Hoechst in 1993. If it has Tel.: +49 6196 61656 identified, by Hoechst itself, as cal low probability events. Just economically feasible to handle happened, top management has Fax: +49 6196 61657 carcinogenic. On Mar. 15, 1993, recently, the Baker Report on Lesson No. 2: Review Your one substance to another, lead- all risks without external help. to demonstrate that it wants its www.kas-bmu.de in the headquarter site located the disaster at a BP facility in Risk Assessment Process ing to an accumulation of a re- Based on the scenarios result- nearby, an explosion occurred Texas City 2005 highlighted the active mixture. When the oper- ing from risk assessment, it has during maintenance work. One need to monitor these events. The first major accident in the ator noticed after several hours, to be determined which addi- operator was killed and anoth- A first set of indicators has series at Hoechst (Feb. 22, 1993) he started the stirrer against tional resources (from other er seriously injured. On Apr. 2, recently been published by the was caused by a combination the clear order of his supervi- companies, authorities, public 1993, again at the headquarter U.S. Center for Chemical Process of operator errors. The stirrer sor, which led to a runaway emergency services, etc.) may site, a major emission of sulfur Safety, and chemical industry is of a chemical reactor was not reaction. In the safety analysis become necessary. Their avail- trioxide occurred. Nobody was beginning to implement them. switched on during pumping of for this process, only the failure ability has to be organized in of the stirrer has been consid- advance. The whole system ered, not the full sequence of has to be tested regularly to errors. This demonstrates the improve it continuously and importance of a systematic and train the acting personnel. Maintenance Joint Venture comprehensive risk assessment. The bigger the company, not It should cover all aspects (op- the affected site, the higher Some organizations take care Decaigny, “what is more, the erations, neighborhood, natural the public’s expectations – and of their maintenance proc- number of industrial accidents hazards, supply chain, etc.) and frustration if something goes ess themselves, while others dropped firmly as well.” should consider unlikely chain wrong. Remarkably, in pub- Helsinn Birex Pharmaceuticals U.S. FDA Inspected The prefer to engage a consultant According to Decaigny, an- of events, too, especially if they lic perception, one of Hoechst Helsinn Birex Pharmaceuticals, Helsinn’s drug facility in Dublin or go for outsourcing instead. other advantage of the joint may have serious consequenc- most serious failures was the Ireland, has undergone a successful inspection by the U.S. Food The German board manufac- Peter Decaigny venture is the fact that a per- es. Risk assessment leads to problem in making available Siemens AG and Drug Administration (FDA) without any form 483 observa- turer, Smurfit Kappa Baden manently present maintenance scenarios which are the basis internal toxicological data to tions. The FDA visit, was a pre-approval inspection related to Karton carried out a strengths, partner ensures that the matter for preventive measures, emer- the emergency responders after Helsinn’s supplemental new drug application (sNDA) for the weaknesses, opportunities, and ployees worked together close- of maintenance receives a fixed gency response and crisis man- the Feb. 22 incident, not the in- softgel form of Palonosetron which is currently under review threats (SWOT) analysis of each ly, forging a cohesive whole of slot on management’s agenda. agement. cident itself. by the FDA, and also a general good manufacturing practice of these options. reality, experience and consul- Agreements are reached in (GMP) inspection relating to all products supplied to the U.S. Negative aspects such as tancy.” cooperation with management Lesson No. 3: Prevent or Mitigate Risks Lesson No. 6: The Remediation of Dam- market. Helsinn Birex Pharmaceuticals is the drug product high training costs, knowledge Very small businesses – those and maintenance improve- ages is More Than an Insurance Case manufacturing and supply services subsidiary of the Helsinn transfer from the consultant to with one or two maintenance ments are also introduced that In the Feb. 22 incident at Group, producing finished pharmaceuticals for Helsinn’s part- company staff or intensive fol- staff – would not benefit from way. So it is not just mere lip Hoechst, a simple and cheap The runaway reaction at the ners globally and managing the outsourcing of specialist dosage low-up required by the in-house a joint venture, but that does service – there is action too. A interlock between stirrer and Feb. 22 incident resulted in forms for existing and new products. management team prompted not mean that the organization system of annual maintenance pump would have avoided any the contamination of a rather the company to opt for a fourth has to be enormous before it objectives and Key Perform- possibility: a joint venture with can benefit from this formula. ance Indicators (KPIs) keeps Siemens. This resulted in a SIEKap employs about 25 peo- everyone on their toes – a business known as SIEKap. ple as part of the maintenance strong contributor to the joint Peter Decaigny, responsible process. venture’s success. Nuremberg, Germany for energy and maintenance During 2001, the two compa- 30.9 – 2.10.2008 projects at Siemens and part nies concluded a contract which Do you process or produce powder, of the management team at was extended again for a further 2 Contact: SIEKap, sees only benefits. five years in 2006. “Now after Siemens AG granules or bulk solids? “It was both a good short- more than six years production Erlangen, Germany International Trade Fair for Mechanical Processing term and long-term solution capacity has increased dramati- Fax: +49 9131 7 44355 Then get ideas on this key chemical Technologies and Instrumentation for the partners. Smurfit Kappa cally while costs are way below www.siemens.be industry technology at POWTECH. Baden Karton and Siemens em- the level we started at,” says www.siemens.be/services now powered by POWTECH:

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[email protected] Page 12 Production CHEManager Europe 9/2008 Crisis Communication Advance Planning is the Foundation of Effective Disaster Management

Act Or React – In the event of for the best possible handling If the media’s information- an emergency, these are essen- of an incident or crisis. Such gathering imperatives are measures include: properly satiated, there is no tially the two response options a A commitment by all associ- need to fear biased journal- Ingrid Knöpfle company has for both the public ated companies to the emer- ism. This is true for written as Industriepark gency management plan well as verbally communicated Gersthofen and the media. In context of a The establishment of a situ- information, such as that made crisis, the conditions for effective ation room available within the context of a preparation is thus essential for The establishment of defined press conference – the supreme communication are undermined a professional crisis-communi- procedures for dealing with discipline in disaster manage- by the fact that the damage has cation response. the media and the public ment. When dealing with media Appointing a media repre- representatives, charisma and already occurred. Crisis-communi- Crisis Communications as Demonstrated sentative authenticity reap greater ben- cation efforts that begin after an by Gersthofen Industrial Park Prior development of stand- efits than a painstaking effort to ardized texts for press re- provide a complete and detailed incident has already taken place At the Gersthofen Industrial leases accounting of all facts. Repre- always come too late. Park in southern Germany, Prior joint determination of sentatives attending a press approximately 1,650 employees linguistic guidelines for the conference must possess the work at 12 companies, four of discussion of the crisis necessary qualifications to han- Crisis communication and dis- which are globally active man- Crisis-communication/media dle the media effectively. aster management are typically ufacturers of speciality chemi- training As a rule, there is no guar- not among a company’s core cals. Over the years, new urban Disaster drills for all involved antee that a disaster manage- business areas. Nevertheless, development projects have been Fig. 1: At Gersthofen Industrial Park, approximately 1,650 employees work at 12 companies. parties should occur at regu- ment plan will work optimally. all companies – not just those built in ever-closer proximity lar intervals It is also impossible to insure subject to Germany’s statutory to the industrial park. To the Regular educational efforts that a positive reaction from order on hazardous incidents – south, a housing development informing the public about the press and public will be should make preparations and directly borders the park’s possible dangers associated obtained. Yet adequate prepa- actively implement procedures property line. This presents a with chemical plants (e.g. a rations and a well-designed for crisis communication as significant challenge for the disaster brochure). organizational structure will part of an integrated disaster company. The stakeholders are help to lay the foundation for management plan. This is best numerous and varied: neigh- Crisis communication must be the professional management done before a potential incident bors, media, general public, an integral part of a company’s of an incident with ultimately or disaster occurs. customers, suppliers, politi- overall policies. Responsibility positive outcomes for a com- If a passive, hesitant or re- cians, officials, municipalities, for the handling of a disaster pany’s image. sistant approach to the press is representatives, associations, from a PR perspective should taken, a company runs the dan- educational institutions and, be assigned to a small group Optimal Crisis Communication – ger of forfeiting its opportunity last but not least, the employees of highly experienced individu- a High Standard to act as a source of informa- and their families. als in advance. Organization- tion to the media. The media As a rule, all communication ally, the individual heading up Crisis communication is aimed will seek out other sources of activities for the industrial park PR efforts in crisis situations at the preservation of a com- information, such as bystand- are codified and set forth in a should occupy a prominent pany’s reputation and public ers. The company then looses jointly developed communica- position within the company in image in the face of damaging all influence over the emo- tions plan. Over the past few order to insure the unimpeded or potentially adverse conse- tionally tinged reporting that decades, it has been possible to Fig. 2: Adequate preparation is essential for a professional crisis-communication response. flow of current information. quences following an undesired results. Making the statement cultivate a positive public image It is possible that the news- incident, such as a fire, explo- “no comment” is a catastrophe because of a constant willing- A situation room with all products; a PC workstation with At the core of the emergency gathering departments of various sion, gas cloud, water pollution, from a public relations (PR) ness for open dialog and a va- necessary materials and docu- an Internet and internal-net- management plan, however, is media organizations don’t have etc. When public relations is perspective. riety of PR activities (including ments has been established in work connection; fax machines; a sophisticated checklist sys- journalists with detailed knowl- viewed as an integrated com- A proactive communications a visitors’ day, factory tours, order to insure an optimal and a separate room with a citizens’ tem. This system enables inci- edge about specific branches of ponent of crisis management policy provides a company with events, etc.). Nevertheless, the coordinated response in the hotline; informational materials dents to be efficiently managed, industry. Consequently, it is nec- and properly deployed, nega- the opportunity to play a lead- acceptance and trust of stake- event of a crisis. The situation such as street and topographi- even outside of normal working essary to promptly supply news tive consequences for a coming role in the formation of holders cannot be expected as room contains, for example: cal maps, etc.; all necessary hours. Each participant in the teams at regular intervals with pany’s reputation following media reports. This does not a matter of course, nor can they walkie-talkies; a dedicated com- forms for reporting to official situation room has clear tasks current information. A proac- an incident can be mitigated guarantee that reports will be acquired over the short term. munications room; data sheets agencies and company direc- and understands the role he or tive engagement with the press or avoided. A company can, automatically be of a positive To this end, strategic efforts with safety information on all tors; etc. she must play. The checklists helps to establish a bond of trust in fact, play a decisive role in nature, yet, as a general rule, within the scope of a long-term ensure that even the smallest between the news organization defining how an incident is per- fair and unbiased coverage is process are required. matter is not overlooked. All and the company. For obvious ceived and understood. With typically obtained. That means: International Standards activities in the situation room reasons, the development of a unbiased media coverage, pub- The speed and precision with Well-organized Disaster Management are documented in detail so that robust relationship to a news lic understanding and accept- which information is provided is an Obligation ISO 14001 is the international specification for an environmental manage- each action can be traced and department and/or individual ance can be obtained. That is in a crisis situation is directly ment system (EMS) against which organizations are assessed. It is part reconstructed at a later date. journalist cannot be achieved the best-case result in the event proportional to the favorability The companies which comprise of the ISO 14000 environmental management standards family which This is particularly important overnight. Press contacts must of a disaster. of the reporting subsequently the Gersthofen Industrial Park exist to help organizations minimize their operations negative affect on in the event of a subsequent be cultivated on an ongoing publicized about the company. have been granted blanket the environment. investigation by police or legal basis. It is also important to 2 Contact: The PR activities under- certification for disaster and Similarly ISO 9001 is part of the ISO 9000 family of standards for quality authorities. appoint a liaison to news de- Ingrid Knöpfle taken by a company in the environmental management in management systems. partments who can answer all Industriepark Gersthofen Servicegesellschaft hours immediately following accordance with DIN ISO 9001 Requirements of ISO 9001 include: Precautionary Measures as a questions about the company. In mbH & Co. KG an incident or onset of a crisis and 14001. At regular intervals, addition, the review and optimi- Gersthofen, Germany Procedures for all key business processes Key Element of Crisis Communication situation are of decisive impor- readiness teams conduct train- zation of all press releases re- Tel.:+49 821 479 2444 Monitoring processes to ensure effectiveness tance for all subsequent media ing exercises in cooperation With appropriate precautionary garding the needs of the media [email protected] Record keeping coverage. If a professional PR with the fire department for measures, action can be taken is a worthwhile undertaking. www.industriepark-gersthofen.de response is not undertaken, various crisis scenarios. Train- or if this response is chaotic in ing sessions in crisis communi- the tumult of the incident, this cation are also offered on a reg- will lead to additional problems ular basis. Routine participa- Arkema to Make Low-GWP Gas for car Air conditioning improved Adhesives beyond the immediate event tion in media training sessions itself, and is likely to gener- is obligatory for all members of Arkema said it will invest in Eu- more restrictive environmen- out saying how much it plans Product Momentive Perform- series is one of the fastest room ate a media climate that is ir- the industrial park’s readiness ropean production of a new low- tal standards, particularly the to invest in developing the new ance Materials is presenting a temperature cure silicone reversibly negative. Adequate directorate. GWP (Global Warming Potential) adoption of European Directive gas. The EU directive requires newly developed RTV21A/22XB adhesive systems for headlamps fluorinated gas, R1234yf. From 2006/40/CE, and is developing the substitution of HFC134a in series, comprising a 2-compo- enabling leakage testing shortly 2011, this gas will gradually next-generation fluorochemicals car air-conditioning systems by nent silicone RTV adhesives after assembly. Silicone RTV’s replace the HFC134a refriger- to help minimize greenhouse 2011 for new automotive manu- that can meet the demanding provide a solution to both the ant used in car air conditioning gas emissions, it said. R1234yf facturing platforms and by 2017 headlamp requirements while lamp body and the coated lens, Electronic Valves systems, the chemicals compa- has a negligible GWP compared for every new vehicle sold in enabling high speed production at the same time giving a long ny said. Arkema is anticipating to HFC134a, Arkema said, with- Europe, the company said. and improved productivity, due term level of elasticity that can Check Valves  to its fast room temperature cope with CLTE differentials Control Valves cure technology and consistent over the wide range of operat- Proportional Valves application. The RTV210A/22XB ing temperatures.  Regulators dSM to take €25 – 30 Million Hit Fittings & Tubing Royal DSM said it expects a will not be lowered due to this into October, longer than the negative financial impact of event,” DSM said in a statement. initially estimated interruption More Stages of Expansion €25 – 30 million from an in- It added that most of the costs of production of a few weeks. terruption in production at its will be booked in the third quar- DSM said it is continuing work Product Feige now of- MINIATURE DSM Agro plant, adding that the ter and that thanks to insurances, on possible alternative solutions. fers more stages of PNEUMATIC PRODUCTS interruption in production will the costs will be €25 – 30 million. The DSM Agro plant produces expansion for the drum take longer to end than initially DSM said technical problems industrial chemicals and is filling machine Type 33 FOR MEDICAL anticipated. arose at one of the DSM Agro grouped under the Base Chemi- presented in 2004 for “In view of the current posi- ammonia plants at the start of cals operations which have been the filling of steel and APPLICATIONS tive business climate the outlook June and repairs might extend identified for divestment.  plastic drums. An automatic de-bunging and bunging station, nitro- Lanxess opens rubber research center in Qingdao gen purging or pre- and final filling station can German specialty chemicals jointly operated by the Lanxess products and techniques, to be combined as per company Lanxess opened a business units Technical Rub- technical customer support requirement. After in- new Rubber Research Center ber Products, Butyl Rubber and and preparing the commerciali- stallation and power supply has ing installation. The basic idea (RRCQ) in Qingdao, Shandong Performance Butadiene Rub- zation of future inventions,” been put on, the machine is of a quick “Plug & Fill” machine

Clippard Europe S.A. Province. Established in close bers, and marks an investment said Juergen Gunther, head of ready for use as electric and has even been improved. Eve- Parc Scientique Einstein cooperation with Qingdao’s Uni- of some $16 million. the business line Specialties pneumatic control has been de- rything is ready mounted for Rue du Bosquet, 6 1348 Louvain-la-Neuve versity of Science and Technol- “The RRCQ will cover com- from Lanxess Technical Rub- signed in such a way that it per- production, in case of hazard- Belgium TEL +32 10 45.21.34 ogy (QUST), the world-class re- plete functions, ranging from ber Products business unit and fectly fits into one common con- ous area application in zone 1 www.CLIPPARD.eu search center is located within fundamental research involv- project manager responsible trol cabinet. Cable conduits and tested and designed as per the university’s vicinity. It is ing the development of new for the RRCQ.  cable laying can be spared dur- ATEX regulation. 

[email protected] CHEManager Europe 9/2008 PumP s Page 13 External Procurement Of Pumps Using Total Cost of Ownership as a Governing Principle

Bid Comparison – Key com- price bids, the results are docu- ponents in the procurement of mented in a bid-opening record and transferred to the overall pumps by BASF are Total Cost bid comparison which also of Ownership (TOC) and bonus/ includes the technical and the Stefan Bumb commercial bonus/malus. malus evaluations. BASF Concrete Example The external procurement of but also expenditure incurred pumps in the BASF Group is for planning, installation and As demonstrated in the follow- usually undertaken directly startup. The operating expense ing example (see fig. 4) the tech- by the technical procurement typically reflects combined costs nical bonus/malus lends itself team at the respective site with including those for power, main- to identifying both the suitable direct input from corporate tenance and repair. Calculation pump type and the beneficial Figure 3: Procurement process engineering and the produc- of TCO includes tax and interest price. It can also be seen, how- tion operations on site. The rate effects which, just like man- expenditure which accounts for ment of pumps. With this back- ever, that a low bid price does main focus of this collaboration power costs and energy cost, the major proportion of the total ground, the PVT draws up and not necessarily result in con- Figure 4: Concrete example being TCO. Figure 1 provides an depend on the particular plant lifecycle cost. Whilst, judging updates a supplier list which tract award. In fact, the vendor overview of the average pump site. Annual costs are discount- by the total up-front cost of a forms the basis of an inquiry. care is taken to ensure that bids ried out (heat exchangers, selection is also governed by the demand of the essential pump ed to current cash values. chemical plant, the proportion Moreover, the following criteria are submitted in due form and switchgear room) individual requirements of the segments in the BASF Group. In While in the past the pur- of all pumps is less than 5 %, may also be considered in the time. Bids received too late or Differences in planning or particular task. value terms, centrifugal pumps chasing decision for an invest- a TCO analysis turns out to be selection of vendors: not in due form are rejected. construction efforts represent the key category. ment was governed by the price, useful. This approach is further Project-related criteria (e.g. This process, while boosting Initial stocks of spare parts Summary a comprehensive approach is substantiated by the current requirements specified by fair contract award under com- Differences in operating Total Cost Of Ownership the current key consideration energy efficiency discussion. process owner, pure replace- petitive conditions, is adapted expense (energy, mainte- The TCO represents the gov- in procurement (fig. 2). Within TCO analysis in BASF, how- ment parts) to ensure transparency of the nance) erning principle and strategy Within BASF, TCO is understood BASF a bonus/malus bid com- ever, is not limited to the selec- Vendor-related aspects (e.g. contract award decision and in the planning and procure- to mean the total cost incurred parison process is common tion of vendors in the procure- process-engineering exper- lend credence to the vendors, The technical bonus/malus ment of machinery and units for an investment throughout its practice in assessing both tech- ment process. In fact, it is used tise, references, supplier thus making an essential con- ascertains the overall cost ap- in BASF. lifecycle. In this respect, not only nical and commercial differenc- in plant engineering during evaluation) tribution to BASF’s Compliance proach in the evaluation of ASF adopts a global pro- the investment is considered, es between the various bidders the planning and conception Competition-related aspects Program. technical bids. The commercial curement strategy, focusing but also subsequent annual from a financial perspective and stage to facilitate comparison (e.g. opening up of new mar- bonus/malus attempts to cor- on preferred vendors. These expenditure incurred for op- these are taken into account of equivalent process engineer- kets or tapping new suppli- Bid Evaluation and Bonus/ rect differing terms of delivery vendors are scrutinized under eration and maintenance of the when comparing their bids. ing solutions. ers) Malus Comparison and services as may exist or competitive conditions and equipment. Initial costs include, As can be seen from figure 2, This is where value improv- liability agreements such that their performance measured for example, the purchase price, for pumps it is the subsequent ing practices (VIP) are employed Supplier Evaluation In the contract award deci- the bids submitted will be com- by adopting a supplier evalua- to scrutinize various aspects sion, the technical bonus/malus parable. Since all bids are re- tion system. The PVT being the including use and cost of the Vendor rating by BASF is made takes into account the calcula- quired to conform to the speci- driving force. The operative contemplated pump system so on a global scale, taking into ble elements of the TCO. It is fication, BASF does not give a implementation of procurement as to find the best possible solu- account price, quality, perform- the objective of the technical bonus for bids which overfill the takes place within the scheme tion for the process engineer- ance and services as the main bonus/malus to render a mon- specification or provide reserve of a globally valid process. ing task definition. At this stage, criteria. Supplier performance etary evaluation of acceptable capacities. Separate submission of tech- a decision taken in favor of a and rating, which includes an qualitative technical differences The TCO approach, even nical and commercial bids, as specific design is usually not appraisal of maintenance activ- between various vendors on the though not new, is still diffi- well as comparison of the bids manufacturer-dependent; it is ities, are carried out separately basis of relevant TCO aspects. cult to implement in practice. including technical and com- also governed by other criteria by a combination of requisition- The technical bonus/malus Often essential data is missing, mercial bonus/malus evalua- such as safety requirements. ers, buyers and users. The ven- serves to assess the differences in particular with respect to tion is a key element of BASF’s dor performance so registered, of costs between the various maintenance, and hence a more procurement process. It is Procurement Verbund is assessed and considered both bids, which would be incurred accurate calculation cannot be the objective of the Technical when establishing a bidders list during the period under consid- carried out. Also, information Bonus/Malus comparison to In 2000, BASF established a and in the commercial bonus/ eration. about the pump design to per- identify the solution that is most global procurement verbund malus evaluation. To enable such costs to be mit a manufacturer-related dif- beneficial for BASF rather than (PV). This is a virtual organiza- taken into account in the tech- ferentiation is not available. the cheapest solution. tion which, whilst coordinating Technical Specification Sheet nical bonus/malus they must Following the comparison the technical goods and services be predictable and calculable. of the technical bids and the 2 Contact: needed by the BASF Group on In addition to the bidders list, Examples of such costs are: technical bonus/malus evalu- Stefan Bumb a global scale, also defines the the technical specification sheet Expenditure incurred for ation, the bids are assumed BASF SE strategic course. The PV con- forms the basis of an inquiry. quality assurance (factory to be technically comparable. Ludwigshafen, Germany sists of teams, and these pro- All the requirements to be test run, inspections) The contract award decision Tel.: +49 621 60 744089 curement verbund teams (PVT) met by the equipment to be Cost of additional equipment will then be taken by judging Fax: +49 621 60 6674408 deal with all relevant procure- procured are specified in the as may be needed or struc- commercial aspects only. There [email protected] ment demands and such a team technical specification sheet. It tural modifications to be car- fore the next step is to open the www.basf.com Figure 1: Average pump demand at BASF exists for pumping solutions. is updated in the course of the Experts from engineering, procurement process and forms maintenance and procurement a mandatory integral part of the on the various BASF sites meet purchase order. to define global procurement strategies and assist in their Procurement Process implementation. Typical tasks are vendor recommendations, Procurement of technical goods supplier evaluation, master and services in the BASF Group agreements, market and price follow the process shown in the development predictions and graph (fig. 3). For defined proof developing standards. curement values the bidders are required to submit sepa- Bidders’ List rate technical and commercial bids. The commercial bids are A combination of active sup- not opened until after evalua- are the All trademarks property plier management and vendor tion of the technical bids, using recommendations are highly the bonus/malus comparison

Figure 2: Total point of view during procurement relevant to operative procure- has been complete. Particular subsidiaries. discovery development production Inc. All rights reserved. ©2008 Thermo Thermo ©2008 Scientific Fisher Thermo Scientific Inc. Fisher and its PB AD 2008 48

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Unique Iridescent Colors These thin platelets create a special iridescent effect in cosmetics. Known as Ultradescence pigments, they are made of pure titanium dioxide and are found in many cosmetic articles, such as lip gloss, powder, luminous foundation or lotions. By varying the thickness of the titanium dioxide platelets, BASF scientists can create any color they want. Because the Moving science forward platelets are only around 5 micrometers long and 0.6 micrometers wide, they are especially well suited for cosmetic products. Photo by BASF

[email protected] Page 14 PumP s CHEManager Europe 9/2008 Save Energy Using Condition Monitoring How to Optimize Overhaul of Centrifugal Pumps

Maintenance – Centrifugal taking the average values to Scenario One pumps are common, yet relatively plot. Variable speed pumps need Speed measured, and the If pump deterioration results in little information is available on head-flow data corrected to a a reduction in plant production, Ray Beebe applying condition monitoring to standard speed using affinity the cost of overhaul is insignifi- Senior lecturer at laws. Field tests are less accu- cant relative to the cost of lost Monash University them. When the effect of deteriorate than at the manufacturer’s production. Prompt overhaul is ration is only to increase power works, but for monitoring it is usually simply justified at a con- Visual inspection and Non- relative changes we seek rather venient window of opportunity. consumption, condition monitor- Destructive Testing – par- than absolute accuracy. ing can be used to find the time ticularly relevant for casing Unless a plant’s permanent Scenario Two wear instrumentation is verified as to overhaul for minimum cost Performance monitoring and being in calibration, test in- If the pump runs intermittently and greenhouse impact. Here is analysis: the most relevant strumentation will be needed. to meet a demand, and the sys- for pump internal wear, and Test-grade bourdon tube pres- tem flow is relatively constant how to use condition monitor- the subject of this article. sure gauges or electronic types over a period, deterioration in ing methods to estimate the are satisfactory. Non-intrusive the pump will result in it taking Figure 1 shows the trend in ultrasonic flowmeters are usu- more time to do its duty. There- increased power consumption degradation of a 230 kW pump ally applicable, provided the fore, the extra service time caused by pump wear and help to be closely linear. Wear am- pipe bore diameter is known. A required, results in increased plitude is expressed as the per- permanent flowmeter installed power consumption which can optimize maintenance. centage reduction in Total Head can be used, provided its long- be related to the cost of over- at a selected datum Flow com- term condition is considered haul. Ideally, major pumps should be pared with the new condition. to be constant, or it can be in- overhauled when really nec- spected regularly. Scenario Three Figure 1: Degradation of a 230 kW pump shown by Head-Flow testing essary, rather than on a fixed The Head-Flow Test time or breakdown basis. Field How to Calculate the With constant speed and throt- or original equipment manufac- Of several condition monitor- Optimum Time for Overhaul tle valve controlled pumps, turer (OEM) experience should ing methods, head-flow meas- pump deterioration does not, be considered too. Monitoring urement at duty point detects The most economic time to re- at least initially, affect plant methods should be chosen to changes in system resistance store lost performance by over- production. Here, the control detect the degradation modes as well as detecting pump dete- haul will vary with the circum- valve opens to ensure that expected. For critical machines, rioration, provided settings are stances. If the deterioration is pump output is maintained at more than one method may be unchanged. Testing over the full constant over time, then a cash the required rate, so internal justified: flow range is not needed: points flow analysis can be done to en- wear does not initially cause Vibration monitoring and near the normal operating duty sure that the investment in over- any loss in production from the analysis, to detect unbalance, point are sufficient to reveal the haul will give the required rate plant. Figure 2 shows the Head- misalignment, looseness, soft effects of wear, usually shown of return: The same process used Power-Flow site test character- foot and resonance by the head-flow curve moving in deciding on any investment in istics of such a pump. Duty flow Sampling and analysis of lu- towards the zero flow axis by plant improvement. If the dete- is 800 m³/h, and the duty point bricants for deterioration and an amount equal to the internal rioration rate is increasing with in the new condition is A. The wear debris – relevant for leakage flow. time, then the optimum time for power absorbed is read off the bearings/lubrication system A series of test readings at overhaul can be estimated, by Power-Flow curve as 2150 kW: Electrical plant tests for mo- steady conditions at about 15 methods now described for some B. The power-flow curve should tor condition second intervals is sufficient, of the situations which occur. ideally be found on site, but the

Figure 2: Head-flow-power characteristics of new pump, and head-flow points from worn pump

work tests information may months of service since the this is not unusual. Informa- have to suffice. pump was in new condition; an tion may not be available to After some service, the “Test overhaul would cost $50,000, make any other assumption, points – worn pump” plotted in- electricity costs 10 c/kWh and and decision makers have to dicate internal wear. Duty point the pump is in service for 27 % start somewhere. If the pump is now at C, as the systems re- of the time on average. does not operate at constant sistance lowers when the throt- Our test shows that the rate flow, then the calculation must tle valve is opened. of increasing cost/month has be amended. The increased power re- reached 167 × 0.10 × 0.27 × 720 Some relatively small pumps quired in the worn condition can = $3,240/month (taking an may never justify overhaul on be estimated by extending from average month as 720 h). As the savings in energy use alone. the head-flow curve at constant time now is 24 months, $3,240 The method does not apply to head from the operating point ÷ 24 gives the average cost pumps of high specific speed to D, and then intersecting the rate of deterioration as $135/ that show little change, or even Power-Flow curve for new con- month/month. This is assumed a reduction, in power with in- dition at constant flow: E. Fol- to be linear with time, based creased flow. low the arrowed line in figure on experience as reported in 2. The basic assumption here figure 1. Last But Not Least – Scenario Four is that the original curve still The optimum time for over- represents the flow through haul can be calculated: Also with variable speed con- Innovative Sports Surfaces Help Athletes Set New Records The blue sports track of the Berlin Olympia Stadium is one of the fastest the impellers (of which less is trolled pumps, the pump de- in the world. It is made from Conipur M top-class sports surfacing system. Innovative sports surfaces promote peak performance leaving the pump to the system terioration does not initially T = 2 x 0 and prevent injuries. www.basf.com due to internal wear). The flow C affect production. For a pump difference C – D represents the where the speed is varied to internal leakage. where: O = cost of overhaul, and meet its desired duty, the effect If the pump is motor-driv- C = cost rate of deterioration of wear on power required is en, the actual power could of giving here T = 27.2 months. much more dramatic than for course be measured on test at It is better to calculate and the case of a constant speed extra expense. In our example, plot the average total cost/ throttle controlled pump. This the power required for this month values for a range of is because the power increases duty in the worn condition is times. Seen clearly will be the in proportion to the speed ratio shown in figure 2 by the pro- cost impact of doing the repairs cubed. jection from the duty flow of at some other time, such as at a Unless the pump output is 800 m3/h to the test curve at scheduled plant shutdown. limited by the pump reach- 640 m head, then across to the ing its maximum speed, or by “Site test – new pump” curve, How to Calculate the its driver reaching its highest then down to the power curve, Total Average Cost per Month allowable power output, then to find 2300 kW. The extra elec- no production will be lost. How- tricity consumption is therefore Example for 22 months: ever, power consumed will in- 2,300 – 2,150 = 150 kW ÷ mo- The average cost of overhaul crease more dramatically for a tor efficiency (here 90 %), to is now: $50,000 ÷ 22 $2,273/ given wear state than for a con- obtain 167 kW. month. stant speed pump. The method Using this method, a number The average cost of extra shown can be used. of pumps of varying wear con- energy is now: $135 × ½ × 22 ditions could be prioritized for $1,485/month. maintenance, based on their in- The total average cost/month creased power consumption and is now: the sum of these two fig- their relative costs of overhaul, ures = $3,578/month. i.e. the cost/benefits. However, Repeating this calculation a further calculation assists the for several months will give 2 Contact: decision as to which pump or curves that show the cost per Ray Beebe pumps justify the expense of month of overhaul dropping Monash University overhaul. with time, with the cost of lost School of Applied Science and Engineering energy increasing with time. Victoria, Australia Finding the Optimum Time for Overhaul This calculation is only cor- Tel.: +613 5122 6496 rect if the wear progresses at a Fax: +613 5122 6738 In this example, the test points uniformly increasing rate with [email protected] were obtained following 24 time, but as figure 1 shows, www.gippsland.monash.edu.au

[email protected] CHEManager Europe 9/2008 EvE nts / BusinE ss PartnE rs Page 15 World CIA 2008 MAILING 2008 A Meeting With Chemistry CHEMICAL CUSTOMER CONNECTIVITY INDEX (C3X)

Chemical Customer Connectivity Index (C3X)

How well does your company know your customers’ market requirements? Join the C3X top management panel and fi nd out! In this semiannual survey conducted jointly by AT Kearney and CHEManager Europe, we will fi nd out what really matters to the chemical industry. A World Of Technologies – gineering firms will have the occasion ers coming from universities, asso- Each round of interviews will consist of recurring questions and will additionally be devoted to a special to meet and consider new products ciations, companies, and media. The topic such as the repercussions of a possible economic downturn, innovation or sustainability. Over the World CIA 2008 is an international exhi- medium term, C3X will generate a reliable picture of the issues that are crucial for executives at the and techniques to help their business congress activities are presided by a interface to the customer. bition dedicated to chemistry, industrial grow. The most important brands of scientific committee composed of im- Register now at www.chemanager-europe.com/c3x and become a member of our panel and to participate in our fi rst survey. You have the option of anonymous participation as well. application products and technologies the world of chemistry will exchange portant representatives and experts information and experiences, explor- from the academic and industrial For more information, send an e-mail to Brandi Schuster at [email protected] for the environment which combines ing new solutions and obtaining use- international world. the development and consolidation ful elements to better focus on the The strength of the event is in fact market needs and demands. to offer a high quality exhibition and of business relationships with the ex- The entire world of chemistry will congress program, where exhibitors change of knowledge and experience be represented through the following and researchers will find the occasion sectors: fine chemistry and speciali- to learn about the latest developments between researchers and economic ties; basic chemical products; physi- of the market and the most innovative players from all over the world. cal chemistry of materials; industrial technologies and projects in the whole biochemistry; electrochemistry; gas; sector. In this way, an innovative mix chemical fibers; plastic materials; between business and professional The event will take place Nov. 20 – 23 rubbers; petrochemicals; raw ma- updating has been created, in order in the Montecarlo Grimaldi Forum terials and auxiliaries for ceram- to allow exhibitors to present their in Monaco. It will focus on the best ics industry; fertilizers; planning own solutions and academics and worldwide technologies and offers the and plants constructions; tanks and researchers to dialogue with the big perfect context to share and develop trucks; technical press; trade associa- industry, thus contributing together new ideas and opportunities, new re- tions and research laboratories; test- to the future of chemistry. searches, materials and manufacturing and certification standards insti- ing techniques. The show strives to tutes; and systems and technologies 2 Contact: support chemistry on an international for the environment. Tel.: +39 051 6313514 and global level, by creating a world- Together with the exhibition, there Fax: +39 051 4157230 www.gitverlag.com wide platform of the main players of will be a four-day congres with an [email protected] the chemical productive world. Ex- interesting calendar of lecturers and [email protected] hibiting companies and relevant en- conferences by well-known speak- www.ciachimica.com

Program for the 55th sepawa Congress released Future Feedstocks for Fuels and Chemicals: Posters requested

Sepawa (Soap, Perfume and Deter- entrepreneur, Wolfgan Grupp, high- contact customers directly. Over 100 This international conference, to fuels and chemicals. The topic will DGMK German Society for Petroleum gent Experts Association) said visi- lighting economic incentives. Sever- exhibitors from research institutes, take place Sept. 29 – Oct. 1 in Berlin be covered by eight invited lectures, and Coal Science and Technology in tors to its 55th congress in Würzburg, al keynote lectures will address the various SMBs and large-scale indus- will provide a forum for chemists 15 oral and 19 poster presentations. association with the Società Chim- Germany, Oct. 15 – 17 can expect a issues of tomorrow, such as: multi- try will be on hand. and engineers from refinery, petro- Moreover, additional last minute post- ica Italiana (SCI) and the Austrian versatile program on a wide range functional detergents, penetration chemistry and the chemical industry ers are welcome. Authors who wish ÖGEW Österreichische Gesellschaft of current issues in the cosmetic and routes of agents through the skin as as well as from academia to discuss to present a last minute poster can für Erd ölwissenschaften. detergent sectors. well as alternative washing methods. scientific and technical issues related contact the scientific chairs at or One of the highlights will include The additional exhibition “Meet your to possible future feedstocks and their before the conference. This interna- a keynote address by the German Business” offers the opportunity to 2 www.sepawa.de conversion to classical (or even new) tional conference is organized by the 2 www.dgmk.de

PLANT ENGINEERING AND CONSTRUCTION Optimal solutions with electrical tracer heater Keep up to date! Retaining heat for up to 1000 °C with

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COMPRESSED AIR CHEMICALS PROCESS AUTOMATION

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[email protected] page 16 At A GlA nce CHEManager Europe 9/2008

manufacture Of Basic chemicals

Individual countries’ basic chemical sectors Recent trends % of manufacturing (NACE D) Production index 1995 = 100 28 150

26 Value added Employment 140 12

10 130

8 120 6

4 110

2 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 IE NL BE NO LT DE EU FI CZ* RO ES UK FR HU SE PL SK DK BG PT* EE AT IT SI EL LV Manufacture of basic chemicals 27 *2004; EU27 – excluding: CY, LU and MT Manufacturing

Source: Eurostat, SBS © GIT VERLAG Source: Eurostat, STS © GIT VERLAG in 2005, manufacturing basic chemicals produced a value Between 1996 and 2007, the manufacture of basic chemicals added of €64.2 billion in the eU27. ireland showed the great- outperformed the eU-27 manufacturing sector. Production of the est value added (26.2 %) and Belgium the highest employment former grew by 49 % while manufacturing rose by 31 %. Between (4.2 %). in all countries except latvia, the share of the basic 2000 and 2003 the production of basic chemicals continued its pro- chemicals sector’s value added in manufacturing was higher gression while manufacturing production stagnated. a reduction in than that of employment, reflecting the industry’s high labour growth of basic chemicals production was seen between 2002 and productivity. 2004, which is assumed to be linked to weaker export demand.

Foreign direct Investment

Investment in New Member States Main EU-15 Investors 350 40% Kick-Off In Chicago More than 250 people gathered at Chicago’s Navy Pier for the unveiling of 300 22%* exiderdome, a traveling technology expo and learning laboratory from Siemens. Built on a barge 30% Others for the first part of its nine-city tour, exiderdome has been stationed at Navy Pier before it headed 250 26%* Germany 26% 27% to Detroit. Siemens expects more than 9,000 customers to visit the multimedia event during its 200 27%* nine-city, 10-month tour of major U.S. manufacturing centers between July 2008 and May 2009. 20% “the U.S. is the company’s largest market and Siemens’ roots run deep in the Chicago area where 13%* (EUR bn) 150 10%* 6% we have been operating for nearly 120 years,” said Heinrich Hiesinger, CeO of Siemens industry United 13% 100 Kingdom 8% Sector. www.exiderdome.com/us 10% 10% 10% 96%* –1%* 50 282%* Spain –57%* –36%* France 0 0% 2002 2003 2004 2005 2006 Luxembourg Austria Stocks Flows Share of the 12 new MS of extra-EU-15 flows (right-hand scale) Coming up in CHEManager Europe 10/2008: * Annual growth rate  Making BTL technology a commercial reality Source: Eurostat © GIT VERLAG Source: UNCTAD “World Investment Report 2007” in 2004-2005, eU-15 outflows to the new MSs grew at a faster Between 2004 and 2006, Germany was the main investor in the  Providing incentives to biofuels in Central and Eastern Europe rate than total extra-eU-15 flows: in 2005, the growth in total new MSs, with a three-year average of €8.5 billion. Germany’s extra-eU-15 flows compared with the previous year was 67 %, investment in Poland almost doubled between 2005 and 2006,  The global generic market while investment in the new MSs increased by 96 %. However, from €1.2 billion to €2.1 billion. the second largest investor 2006 registered a slowdown in the growth of all extra- eU-15 among the eU-15 was Spain, with outflows to the new MSs  OTC distribution in Europe investment to only +7 %, and for the new MSs a slight decrease averaging €4.1 billion. Hungary was Spain’s main partner, with was even recorded (–1 %). the share of the 12 new MSs in eU-15 42 % of total Spanish outflows. the austrian investment flows  CPhI Special outward FDi flows jumped to 12 % in 2004 and has remained average to the new MSs was €3.3 billion during this period, with at that level since. romania receiving the bulk investment (73 %).  Interview with Michael Vorwerk, chief operating officer of LifeConEx european tax rates  Future challenges in the chemical industry supply chain

Personal income tax rate Corporate income tax rate Out on September 18 2007 income, in % 1995–2008, in % (arithmetic averages)

59 60 40.0 56,55 37,4 37,5 55 52 37,6 50,46 36,2 Index 50 50 35,3 35,5 50 35,3 35,2 35,3 47,48 35.0 34,1 33,5 33,8 45 43 43 32,6 42 41 41 31,9 aFiM 10 Gempex 16 Merck KGaa 5 40 40 40 40 40 40,24 40 31,0 40 38,95 38,68 30,7 30,5 30.0 29,3 35 29,0 35 28,3 28,6 air liquide 2 Momentive 2 32 27,7 Hamilton 15 30 27,1 26,5 30 25,5 27 25,3 25 25.0 24,5 air Products 2 Monash University Gippsland Campus 14 25 24 23,6 Helsinn Chemicals 11 22 19 20 airgas 2 Nanomarkets 8 16 Hillesheim 15 15 20.0 DK SE NL FI BE AT DE ES IT PT IE SI EL FR HU PL UK LU MT CZ CY LT LV BG EE SK RO EU- EA- NO 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 27 15 almig 15 Nürnberg Messe 11 Note: Please refer to endnote 2 for details on the calculation of the rates. EU-27 EA-15 industriepark Gersthofen 12

instaplast Praha 2 at present, the top personal income tax rate amounts to 38.7 % Since the mid-1990s, corporate income tax (Cit) rates in europe anabond 2 Perbio 13 on average in the eU-27, unchanged from 2006. the actual rate have been strongly cut. this trend has continued in 2008, as varies substantially within the Union, ranging from a minimum shown by a 0.9 % drop in the eU-27 average. the even stronger Kerry talke 1 arkema 8, 12 Pipelife 2 of 16 % in romania to a maximum of 59 % in Denmark. as a rule, cut (–1.2 %) was seen in the euro area, whose rates neverthe- the new member states display lower top rates. the highest rates less remain somewhat higher (at 26.5 %, the ea-15 average is Konarka 8 ashland 2 Plextronics 8 are typical of member states with highest overall tax ratios, such almost 3 % above the eU-27 average). in 2008, seven member as the Nordic countries. state countries cut the corporate tax rate, most notably Ger- BaSF 2, 5, 7, 9, 13 lanxess 2, 12 Praxair 2 many (–8.9 points to 29.8 %) and italy (–5.9 points to 31.4 %).

Brenntag 1, 6 linde 2, 9 Pu.ma 9 ImprI nt Chemtura 9 rhodia 4 Publisher: Dr. roy Fox Christiane rothermel the current price list is valid the publishing company is Git VerlaG GmbH & Co. KG tel.: +49 6151 8090 128 tel.: +49 6151 8090 150 from 1 October 2007 granted the exclusive, space [email protected] and content restricted right to Cimex 14, 15 rhom & Haas 4 roesslerstr. 90 [email protected] CHeManager europe arbitrarily use the unmodified CONSULTING & EXECUTION 64293 Darmstadt appears 10 times in 2008. Wolfgang Sieß work/editorial contribution for tel.: +49 6151 8090 0 Intern tel.: +49 6151 8090 240 Print run: 15,000 all purposes for itself and for Clariant 4 roche 4 linda tonn Fax: +49 6151 8090 168 [email protected] (iVW report businesses that have an inte- tel.: +49 6151 8090 203 [email protected] Q2 2008: 14399 tva) rest in the publishing company www.gitverlag.com Dr. Dieter Wirth [email protected] Fourth year 2008 as defined by company law as Clippard europe 12 rösberg 15 tel.: +49 6151 8090 160 Subscriptions well as to transfer the right of Managing & Publishing Director [email protected] Freelancers 10 issues 94,50 use to third parties. this right Dr. Sonja andres incl. postage of use applies to both print and CSB-System 2 rWtH aachen 9 Dr. Michael Schön Dr. Birgit Megges anja Szerdi single copy 12,60 electronic media including the [email protected] internet and data banks/data Product Management plus postage Production Managers media of all types. DGMK 15 SBS 16 Dr. Michael Klinge Media Consultants Students receive a discount of Git VerlaG GmbH & Co. KG tel.: +49 6151 8090 165 thorsten Kritzer 50 % upon presentation of a Dietmar edhofer (Management) valid certificate. Subscription [email protected] tel.: +49 6151 8090 246 all names, designation, or orders can be canceled within Dipol 6 Siemens 3, 7, 11, 16 [email protected] Sandra rauch (Deputy) signs in this issue, whether 1 week in writing. Dispatch Universal Quality Claudia Vogel (advertising) referred to and/or shown, Editor-in-Chief complaints are possible only Miryam Preußer Mattias Funk (layout) could be trade names of the within 4 weeks after publishing Dow 4, 5 Sigma-aldrich 2, 6, 7 Brandi Schuster tel.: +49 6151 8090 134 elke Palzer, ramona rehbein respective owner. tel.: +49 6151 8090 166 [email protected] (litho) date. Subscription cancella- [email protected] tions are accepted 6 weeks ronny Schumann Reprints before end of year. DSM 12 As a globally operating Solvay 2, 4 tel.: +49 6151 8090 164 Printed by Managing Editor Christine Mühl echo Druck und Service GmbH [email protected] Orginal Articles company, we know and meet ana Wood tel.: +49 6151 8090 169 Holzhofallee 25 – 31 Specially identified contribu- eisenwerke Düker 9 the demands and needs of Symrise 4 tel.: +49 6151 8090 255 roland thomé [email protected] tions are the responsibility of 64295 Darmstadt [email protected] tel.: +49 6151 8090 238 the author. Manuscripts should customers and authorities – be addressed to the editorial [email protected] Subscription/Reader Service: eurostat 16 anywhere in the world. Umicore 9 Editorial tel.: +49 6151 8090 115 office. instructions for authors Volume 9, august 2008 Corinna Matz-Grund may be requested from the Dr. Michael Klinge [email protected] tel.: +49 6151 8090 217 publishing company. We assu- gempex – The GMP-Expert tel.: +49 6151 8090 165 [email protected] me no liability for unsolicited, evonik 2, 9 UNCtaD 16 [email protected] Bank Account submitted manuscripts. repro- www.gempex.com Team Assistants Dresdner Bank Darmstadt, duction, including excerpts, is www.gitverlag.com Dr. Michael reubold lisa rausch Germany permitted only with the per- Feige abfülltechnik 12 University of Sevilla 10 tel.: +49 6151 8090 236 tel.: +49 6151 8090 263 account No. 01715501/00, mission of the editorial office Printed in Germany [email protected] [email protected] routing No. 50880050 and with citation of the source. iSSN 1861-0404 Fitch ratings 4 Wiley-VCH Verlag 6

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