Chemicals Specialty the in Owns It Stake the of Half Kohlberg Kravis Roberts & Co Will Shareholder Sell Almost Its Said Holdings Rockwood World’S the Businesses

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6 were sales currencies, major most against franc Swiss the of appreciation the to Due growth in local currencies amounted to 5 Sales 2011. of 1.717 quarter first the CHF for billion of sales announced Clariant andEastern Europe. Latin America Asia, throughout economies emerging in cones ing also reported continuing growth for sili- rising materials and energy costs. Dow Corn- said its Q1 profits were softened by sharply quarterly sales of $1.58 billion. The company an adjusted net income of $175 million and with 2011, quarter first in income solid a and sales increased reported Corning Dow potash from Belarus and controls up to 30 and Russia’s between Belarussian state firm venture joint a BPC, €50. current the from local producers. The duty will rise to €75/ton decree showed, a move that is likely to hurt 50 by tilizers Belarus has raised export duty on potash fer- to 29.8 end of the quarter. The gross margin was up tially with dynamics picking up towards the costs yet, sales prices increased 2 fully compensating for higher raw material prices improved 5 Rockwood Holdings. 21 about owns – company management asset an – 2 down shares its sending maker, chemicals specialty the in owns it stake the of half Kohlberg Kravis Roberts & Co will shareholder sell almost its said Holdings Rockwood world’s the businesses. largest oleochemicals of one and companies commodities agri- Asia’sleading of one Wilmar,by ated oper- and owned be will plant 2013.The by stream on tocome scheduled is facility The and to supply natural alcohols to Huntsman. Netherlands), The (Rotterdam, Rozenburg alcohol plant at Huntsman’s chemical site in natural state-of-the-art a build to Wilmar for subsidiaries respective their between understanding of memorandum a signed and Huntsman ofthisyear.in thethird quarter million). The transaction is expected to close assumed debt, is around €135 million ($200 pany. The total transaction value, including com- holding public a Thorsen, & Monberg owner, its from Denmark, Copenhagen, in acquire Dyrup to agreement purchase share a Industries PPG of theglobalpotashmarket.

% lower in Swiss francs year-on-year. Sales i etne taig Khbr Kravis Kohlberg trading. extended in % , a European coatings company based % from 28.7 % stake, or 15.9 million shares in shares million 15.9 or stake, % s Uralkali Newsflow % from June 1, a presidential a 1, June from % Wilmar none te inn of signing the announced

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© Karlosk - Fotolia.com the packagingofourproducts. in packaging sustainable more use sponsibility to consider how we can re- the have also We packaging. to approaches sustainable more to addition in packaging sustainable in used be will that polymers monomers and sustainable more the lulose orwasteproducts. cel- as such sources non-food from and come primarily materials will those hopefully renewable of use are low. We’ll also start to see broad other regions where and recycling U.S.rates the in especially – more vantage. ad- footprint environmental an is there when materials and renewable recycled with experiment to starting are People and preservation. protection product the impact would that where point the reaching be may We years. many for done been has that and tures, ducing the weight packaging struc- industry needs. or topics certain advance to groups working for forum a provides also and topics sustainability on relevant education providing together industry the brings SPC lition.The coa- the of agenda the shape help we where committee executive the panies.on serve to proud very am I com- packaging 200 than more of coalition great a is (SPC) Coalition S. Moore S. sustainable packaging? to comes it when have industry cal chemi- the does responsibility What are likelyworkingonit. others and focus this have ready S. Moore S. actly theCoalitiondoes? about your involvement and what ex- aging Coalition. Can you tell us more Pack- Sustainable the executive of committee the of member a You’re Moore S. to 10years? five in market the see you do Where Moore S. able packaging? What are the latest trends in sustain- 2 2 www.dupont.com :Packaging Sustainable The I i u t u t develop to us to up is It : : The easiest solution is re- is :solution easiest The W’l e eyln much recycling be We’ll : tags/sustainable-packaging chemanager-online.com/en/ chemanager-online.com/en 5 /2011 May Page 2 Markets & Companies CHEManager Europe 5/2011

Content DECISIVE INFORMATION

THE PORTAL AND NEWSPAPER FOR THE EUROPEAN CHEMICALS AND PHARMACEUTICAL MARKETS

Front Page Pharma Tuning ��8 Asia’s Future Bioplastics Hub ��13 What Pharmaceutical Companies Can Learn from the Auto Industry Thailand Has All the Trappings to Become a Global Player Klaus-Dieter Pannes and Dirk Pfitzer, Porsche Consulting Protecting The Product ��1 Dr. Wolfgang Baltus, CIM Expert for Bioplastic/Rubber, DuPont’s Shanna Moore on the Role of Sustainable Packaging National Innovation Agency (Thailand) Interview with Shanna Moore, global director of Sustainability at DuPont Packaging & Industrial Polymers Production 9–11 The First Step To Sustainable Composites ��14 Under Construction ��9 Unsaturated Polyester From Renewable Resources Markets & Companies 2–6 Automation on a Small Scale ��9 Tuula Mannermaa, Technical Service Manager, Ashland Finland

© Nmedia/fotolia.com Increasing Efficiency in Continuous and Batch Manufacturing Like A Virgin ��14 No Risk, No Fun? ��4 Erik Bastiaensen, Plant Manager, Dynea Social Media and Networking in the Life Science Industry How PLA Waste Can Be Converted into New Raw Material George Ng, partner, Gordon Rees LLP Steve DeJonghe, Project Manager, Galactic and Full Automation At Low Costs ��10 online.com/en

chemanager - chemanager Jonathan Willocq, Process Development Manager, Galactic Reused Coriolis Flow Sensors and State Of The Art Solution? Sure! Sales & Profits �� 4, 5 chemanager - Mogens Joergensen, Siemens A/S Flow Instruments Hope In Uncertainty ��6 online.com /en Wired No More ��11 People · Events · Awards 15 A New PwC Survey Shows Optimism Among Chemicals CEOs AkzoNobel on Its Wireless Network at a Belgium Plant Tracey Stover et al., Global Chemicals Leader, PricewaterhouseCoopers Nicolas Delfosse, Process Engineer Surface Chemistry, AkzoNobel www.gitverlag.com At A Glance 16 Pharma 7–8 Chemicals 12–14

Index ��16 Flexibility in Bioprocessing ��7 Biobased Packaging — A Long-Term Trend ��12 Merck Millipore on its Single-Use Production Solutions Bioplastic Materials, Applications and Products Multiply Interview with Michael Weber, Merck Millipore Hasso von Pogrell, Managing Director, European Bioplastics Imprint ��16

Reliance to Invest $12 Billion in Robert Hansen Named CEO Kurt Bock New BASF CEO; Chemicals, Launch Rubber Business of Dow Corning Corporation Company Announces Strong Q1

and not a tire maker. The company Dr. Kurt Bock has taken over the is also looking at strategic alliances reins from Dr. Jürgen Hambrecht at in the energy and consumer sectors, BASF. Hambrecht, who served at the Ambani said. company’s head for eight years, has Mukesh Ambani Reliance struck three shale gas Robert Hansen retired. Bock was named to BASF‘s Reliance Industures joint ventures in the U.S. last year, Dr. Stephanie Burns President and CEO, board of executive directors as chief Chairman including a $1.7 billion deal with At- Chair, Dow Corning Dow Corning financial officer in 2003 and since las Energy to own 40% of its Marcel- 2007 he was also chairman and Reliance Industries said it plans to lus Shale operations in the eastern Dow Corning Corporation’s board of of global expansion, technological chief executive officer of BASF Cor- invest up to $12 billion in the chemi- U.S. Ambani said he strongly believes directors elected Robert D. Hansen, exploration, and sustainable inno- poration based in New Jersey. Dr. cals business to tap the market for India would be a $5-trillion economy CEO of Dow Corning, effective im- vation.” Hans-Ulrich Engel has been named hygiene and healthcare products well before 2025, and that it would mediately. Dr. Stephanie A. Burns, Hansen joined Dow Corning’s Fi- the company’s new CFO. and will look at developing a new have a $2.5-trillion consumption remains chair. Hansen has been nance function in 1982, in Midland. The company also announced a rubber business, Chairman Mukesh market. employed by Dow Corning for 29 Six years later, he relocated to Brazil strong start 2011. Capacity utiliza- Ambani said in an interview to the “I think the India growth story is years and was named president in as regional finance manager, return- tion rates in the company’s plants Economic Times. unstoppable. I look at it as an op- November, a position he will con- ing to the U.S. in 1992 as economic were good; in particular, demand in “We will make RIL one of the portunity in the acceleration mode,” tinue to hold. evaluator and controller for the the chemicals business increased world’s largest players in rubber he said. “In the six months Bob has served Rubber business. Hansen became compared with the same quarter as the whole tire industry moves to India needs a supportive govern- as president, he has brought focused the manager for the South American of the previous year. Sales grew by Dr. Kurt Bock (right) succeeds Dr. Jürgen Hambrecht Asia,” Ambani told the paper. The big ance environment at all levels and attention to creating the capabilities region in 1996. Following that, he 25 % to €19.4 billion; BASF said its as chairman of the board of executive directors trend is that if you look at next 10 systemic reforms to reduce corrup- needed to support Dow Corning’s had numerous roles including prod- December 2010 Cognis acquisition of BASF. years, the projections for automobile tion, he said. Ambani also said the growth,” said Burns. “With Bob’s uct line management, procurement made a significant contribution to growth is all China, India and Asia company was confident of ramping record of strong business leadership director and global oversight for sales growth. The earthquake off margin rose to 17.4 % (first quarter focused,” the billionaire said, adding up gas output at its key block off In- and results, our board of directors Dow Corning’s Construction busi- the coast of Japan and its after- of 2010: 17 %). that Reliance would be a supplier dia’s east coast. Jand I are very confident in his ability ness before being named European math as well as the tense politi- The financial result was €830 to lead Dow Corning in a new era Area president in 2002. Jcal situation in North Africa have million, an improvement of €910 not yet had a significant impact on million compared with the same BASF’s business. period of the previous year. This st Nord Stream Finishes 1 Gas Pipeline Compared with the first quar- was due to the special item of €887 ChemChina to Buy MA Industries ter of 2010, sales volumes rose in million that resulted from the sale Nord Stream has finished its first Sea with an overall annual capacity nearly all segments. As a result of of the company’s stake in K+S Ak- 1,200 km (745 mile) pipeline and of 55 m3 (bcm). China National Chemical Corp crop protection products, received the situation in Libya, oil produc- tiengesellschaft. Overall, special prepared it to start shipping gas Once the pipeline’s three zones (ChemChina) has received final ap- approval from the National Devel- tion was suspended at the end of items in income before taxes and from Russia to Germany on schedule have been tied-up by divers and proval for its bid to buy a control- opment and Reform Commission of February 2011; this led to a reduc- minority interests amounted to €705 in October, the company said. The tested, it will gradually be filled with ling stake in Israeli generic agro- China in March. tion in oil production volumes in million. €7.4 billion ($11 billion) project is gas over four weeks, reaching com- chemicals maker MA Industries. It has also received approval from the Oil & Gas segment. In the Agri- Net income increased by €1.4 aimed at replacing dwindling North mercial viability in October, he said. MA said that ChemChina won ap- China’s Ministry of Commerce. Koor cultural Solutions segment, prices billion to €2.4 billion. Earnings per Sea gas supplies and avoiding ship- Pipeline one is designed to have an proval from the Administration of Industries, a subsidiary of IDB Hold- declined slightly; all other segments share were €2.62 in the first quarter ment through central Europe. It is annual capacity of 27 bcm. Hoekstra Foreign Exchange of China. “This ing Corp, owns 47 % of MA. reported price increases. Income of 2011 compared with €1.12 in the owned 51 % by Russia’s Gazprom said Nord Stream had already begun concludes the required approvals The deal values MA at $2.4 bil- from operations (EBIT) increased same period of 2010. Adjusted for and 15.5 % each by Germany’s E.ON laying pipeline two and expected to from the Chinese authorities for lion. ChemChina will buy the 53 % by 39 % to €2.6 billion compared special items and amortization of in- Ruhrgas and BASF-Wintershall. complete it by April 2012. France’s the transaction,” MA said in a state- of MA held by the public for $1.27 with the first quarter of the pre- tangible assets, earnings per share Nord Stream is building two roughly GDF Suez and Dutch company Gasu- ment. The deal to buy control of MA, billion and pay Koor $168 million vious year. EBITDA rose by €738 amounted to €1.94 (first quarter of parallel pipelines across the Baltic nie also hold minority stakes. Jthe world’s largest maker of generic for another 7 %. Jmillion to €3.4 billion. The EBITDA 2010: €1.32). J

chemanager-online.com/en chemanager-online.com/en Page 4 MARKETS AND COMPANIES CHEManager Europe 5/2011

No Risk, No Fun? Social Media and Networking in the Life Science Industry

Tread Cautiously – Social me- Regulatory, Compliance and Legal Risks of social media can cause a number of problems for employers in the ar- dia and social networking are at the Social media and networking have eas of security, disclosure of confi- forefront for many industries, and many uses, but not without risks. In dential information and privacy. the life sciences industry is no differ- particular, many social media tools George Ng are limited in the amount of space Conclusion ent. George Ng, a partner at Gordon Partner, Gordon Rees LLP they can occupy, which is a part of DuPont Reports Double-Digit Sales Gains in All Segments DuPont’s first & Rees LLP, highlights the many uses their novelty, but this limitation (or Although some life sciences com- quarter 2011 earnings were $1.52 per share, compared to $1.24 per advantage, depending upon the per- panies have embraced social media share in the prior year, despite a Pharmaceuticals earnings decline of and benefits of social media and social reported problems. There have been spective) has posed a problem from and networking, many life sciences $.14 per share. Sales increased 18 % to $10 billion with 9 % higher sales networking, as well as the associated instances in which pharmaceutical a regulatory and compliance stand- companies are wary of potential volume, 8 % higher local price and a 1 % increase from portfolio changes. risks. companies have partnered with phy- point. Indeed, on July 29, 2010, the regulatory, compliance and legal risks Sales in developing markets grew 30 %. DuPont said customer-driven sician social networking sites, such U.S. Food and Drug Agency (FDA) and have taken a “wait-and-see” ap- innovation contributed to the company achieving five consecutive quar- Social networking websites are cur- as Sermo, to gauge the opinions of sent a warning letter to a phar- proach. Exacerbating these concerns ters of pricing gains. All segments recorded double-digit sales growth, rently at the forefront of worldwide physicians in certain topics through maceutical company regarding its is the fact that many government driving a 31 % increase in segment pre-tax operating income, excluding public awareness. Social media and surveys and other tools. use of a Facebook share widget to regulatory agencies, have yet to issue Pharmaceuticals. Volumes were especially strong in Safety & Protection, networking is a recent extension, Social networking is also being post shared content about one of its any formal guidance on the use of the Agriculture & Nutrition, and Electronics & Communications. The com- and some would say revolution, of used by companies to help posi- pharmaceutical drug products. The Internet, social media and networking pany increased its full-year 2011 earnings guidance to a range of $3.65 the traditional social network, which tion their products or services by FDA asserted that through the share in the marketing of regulated medical to $3.85 per share from the previous range of $3.45 to $3.75 per share, primarily consisted of relationships allowing these companies to con- widget, the company made repre- products. For example, although the excluding the impact of Danisco (see article on this page). and tied between individuals and vey a desired message about those sentations and suggestions about FDA held an open hearing to receive families in towns and villages. Social products or services or to educate the safety and efficacy of the drug public and industry input on this topic Dow Sales up 20 % in Q1 Dow has reported sales of $14.7 billion in Q1 networking involves using websites physicians and/or patients, such as product was shared, but without back in November 2009, it has yet to 2011, up 20 % over the same period last year. Top-line growth was driven to build and bring together online through patient networking web- directly communicating any of the issue any formal guidance on the by an 8 % increase in volume and a 12 % increase in price. All operating communities of people with similar sites. For example, a company may risk information associated with the subject. Indeed, the FDA recently an- segments and geographic areas reported double-digit sales increases. interests and common activities. So- purposefully send messages or posts drug product. In the shared content nounced a second delay in issuing its At a company level, EBITDA rose $622 million, or 34 %, to $2.4 billion. cial media includes information, in long-promised guidance documents Dow said this was the second highest quarterly EBITDA on record for the various forms (from written text to on social media. company. Performance Products and Chemicals and Energy each posted music to video), that is disseminated However, doing nothing is also not EBITDA increases in excess of 50 %, and Coatings and Infrastructure through social networking, as well without its share of risks. Delay in EBITDA increased more than 30 %. as the online tools for such dissemi- registering for websites and social Health and Agricultural Sciences EBITDA reached a new quarterly nation. Together, social media and networking accounts for desired record of $406 million and Plastics EBITDA exceeded $800 million. social networking have resulted in names, such as a company or drug a new way of communicating and product name, could result in losing Bayer Group Sales up 13.2 % Sales of the Bayer Group climbed by 13.2 % sharing information, by allowing those websites and accounts to an- in the first quarter of 2011, to €9,415 million (Q1 2010: €8,316 million). people to access the information of other person or entity that registers Adjusted for currency and portfolio effects, sales were up by 10.4 %. De- and from other people located any- them first (or the hassle of going spite the positive business trend, the operating result (EBIT) improved where else in the world while only through legal and administrative by only 4.0 % to €1,148 million. The company said its earnings were requiring an Internet connection. proceedings to recover them). Also, diminished by special charges of €442 million (Q1 2010: €77 million). not putting into place a carefully- Of this figure, the restructuring measures already announced at Crop- Social Media Marketing crafted social media and networking Science and HealthCare accounted for €248 million. Charges of €194 policy, or otherwise providing guid- million were taken mainly for an intended settlement program in con- One of the major developments and ance and/or restrictions on employee nection with litigations concerning genetically modified rice in the U.S. trends is social media marketing, i.e., use of social media and networking Earnings before EBITDA – before special items – climbed by 22.3 % to to utilize social media and network- websites, could lead to disasters, €2,232 million. Net income came in at €684 million, up 8.4 % year on ing to market services or goods. Many © ra2 studio - Fotolia.com from harassment lawsuits (from, year. Core earnings per share rose by 28.3 % to €1.45. companies are using social media for example, employees posting in- tools, such as Facebook share wid through Twitter or another social of the widget, there was a hyperlink appropriate information or pictures Ashland Profit Widely Beats Expectations Chemical maker Ashland posted a gets, to market their products. For networking site to highlight a recent to various drug product websites and sharing them with co-workers better-than-expected quarterly profit as it raised prices to counter rising example, these share widgets ap- improvement or a new version of its containing risk information, but the via social networking sites) to inad- raw material costs. For the second quarter ended on March 31, Ashland’s pear as small buttons or thumbnail product or services. Additionally, in FDA concluded that use of the hy- vertent disclosure of sensitive and net income came to $353 million, or $4.39 per share, including a $231 images, on a Facebook page. When the case of Twitter, through sending perlink was an inadequate method confidential, company information. million gain from the sale of its distribution unit to private equity firm anyone clicks on that share widget, out carefully-crafted tweets, which of conveying risk information. All in all, social media and net- TPG Capital for $979 million cash. Excluding that and other one-time another box or website with shared are text-based posts of up to 140 Another area of risk is in monitor- working have unquestionable value, items, Ashland posted earnings of 86 cents per share. By that measure, content (oftentimes, with links to characters, some companies have ing. Although gaining physician and but their utilization in the highly-reg- analysts expected 77 cents, according to Thomson Reuters I/B/E/S. Year- other web pages) is opened. In this utilized Twitter as an extension of patient sentiments about drug prod- ulated, life sciences industry requires earlier net income was $22 million, or 27 cents per share. Revenue rose manner, these share widgets may be their customer service departments ucts may be the goal of monitoring, careful consideration and planning. 9 % to $1.56 billion. Analysts expected $1.49 billion. The cost of sales used as mini-advertisements to at- to publicly counter complaints or adverse event information will likely rose 14 % to $1.14 billion. tract and bring users to more robust address concerns or questions. crop up as well. This adds the extra 22 Contact: content on another page or website. Specific to the life sciences indus- burden on companies that monitor George Ng Akzo Nobel’s Q1 Profit Up Akzo Nobel has reported a 58 % increase in profit Another prominent use of social try, in the past, some pharmaceuti- to develop and have in place the ap- Gordon & Rees LLP to €128 million during the first quarter of 2011, compared to a profit of networks is to monitor the activi- cal companies have also partnered propriate policies, standard operat- San Diego, Calif., U.S. €81 million reported during the same quarter last year. The company’s ties, thoughts, trends and feedback with patient networking sites, like ing procedures and mechanisms to Tel.: +1 619 696 6700 revenue increased 16 % to €3.7 billion in the quarter compared to €3.2 of individuals, as well as targeted PatientsLikeMe.com, to recruit pa- compliantly track and report adverse Fax: +1 619 696 7124 billion in the same quarter last year, reflecting a 7 % increase in volumes groups. For example, in the consum- tients for clinical trials. In one in- events gleaned from monitoring. [email protected] and a 4 % positive price effect. The company reported a 10 % increase in er goods industry, many companies stance, a patient networking site Aside from the regulatory and www.gordonrees.com EBITDA during the quarter to €437 million. For the period from January utilize various social network sites, sent out a message to its members compliance issues, there are other to March, AkzoNobel said its specialty chemicals segment reported €1.35 such as Twitter, to monitor public interested in a specific therapeutic legal risks associated with the use of chemanager-online.com/en/ billion in revenue, up by 17 % year on year, while its performance coat- sentiment toward their products, indication alerting them to a partic- social media and networking within a tags/social-media ings had an 18 % increase in sales at €1.24 billion. The company also said as well as to address criticism and ular clinical trial in that indication. company. For example, employee use it is planning to increase its revenue to €20 billion within five years.

Eastman Chemical Q1 Profit Surges Eastman said its quarterly profit rose sharply as sales increased in every region of the world, driving revenue above analysts’ expectations. For the first quarter, the company posted DuPont Raises Offer Price for EU Clears Arkema net income of $220 million, or $3.04 per share, compared with $101 million, or $1.37 per share, a year before. Earnings from continuing op- Danisco To $6.64 Billion to Buy Total’s Resins Units erations were $2.52 per share, and revenue grew 28 % to $1.76 billion. Analysts had expected earnings of $1.93 per share on revenue of $1.53 strengthen the (Danisco) board’s French specialty chemicals maker present in 13 countries. The Euro- billion, according to Thomson Reuters I/B/E/S. recommendation to shareholders” Arkema won EU regulatory to ac- pean Commission, the EU competi- to accept the deal. DuPont raised quire parts of French oil major To- tion watchdog, said the deal would Unipetrol Q1 Net In Line With Expectations Czech downstream oil group its offer to 700 crowns per share tal’s chemicals business to boost its result in a vertical link between the Unipetrol reported a 50 % rise in first quarter net profit, in line with Ellen Kullman ($139.28) from 665 crowns per coatings and resins operations and parties, but that it would signifi- market expectations. Net profit was 464 million Czech crowns ($28.57 President and CEO of share. By saying it now will move increase its Asian presence. Arke- cantly reduce competition. Arkema million), compared with an average estimate for a profit of 465 million DuPont forward if only 80 % of shares ten- ma said in December the acquisi- produces glacial acrylic acid (GAA) crowns by analysts in a Reuters poll, who said the bottom line will be der, DuPont is effectively admitting tion included Cray Valley and Cook and acrylate esters which are used buoyed by a steep rise in oil prices. Revenue rose 28 % year on year to DuPont raised its offer for Danisco it will run Danisco as a majority Composite & Polymers coatings in making the resins of the photo- 23.088 billion crowns, just above estimates for 23.03 billion. Operating by 5 % to $6.64 billion, bowing to shareholder until it is able to buy resins units and Sartomer’s photo- cures and coating businesses of profit was 571 million crowns, below 584 million in the Reuters poll. pressure from dissident Danisco 90 % of shares in the open market. cure resins operations, which are Total. J shareholders who had complained The tender offer deadline for Merck Reports Higher-Than-Expected Earnings Merck & Co reported the initial offer was too low. DuPont Danisco shareholders was extend- higher-than-expected first-quarter earnings, fueled by strong sales of Chief Executive Ellen Kullman had ed to May 13 from April 29. So far, Israel’s MA Industries its drugs for diabetes, asthma and rheumatoid arthritis. The second- aggressively courted shareholders 48 % of Danisco shares have been largest U.S. drugmaker said it earned $1.04 billion, or 34 cents per of the Danish food additive maker voted in support of the deal, the to Buy Herbicide From DuPont share. That compared with $299 million, or 9 cents per share, a year for weeks. The U.S. chemicals mak- companies said. Danisco’s largest earlier, when it took a number of big charges and a tax expense related er wants Danisco’s technology as shareholder, Danish pension fund Israel’s MA Industries will acquire leading DuPont Direx and Karmex to U.S. healthcare reform. Excluding special items, Merck earned 92 part of a bigger push into the foods group ATP, signed off on the deal DuPont Crop Protection’s global brands. The acquisition will expand cents per share. Analysts on average expected 84 cents, according to business. late Friday. non-mixture diuron business, the the company’s global product offer- Thomson Reuters I/B/E/S. Global sales of $11.58 billion topped the A confluence of minority share- DuPont has extended the offer world’s biggest maker of generic ing and broaden its market reach analysts’ average forecast of $11.37 billion. Merck trimmed its full- holders who insisted on a higher bid three times. Danisco first agreed in agrochemicals. Financial terms of in North America, Brazil and Asia year forecast for research and development spending to between $8 stood firm, forcing DuPont to tweak January to be acquired by DuPont the agreement were not disclosed. Pacific, MA said. Excluding poten- billion and $8.4 billion. It has previously expected $8.1 billion to $8.5 the offer. for $5.9 billion, but the deal met re- According to the agreement, MA tial synergies, the acquired products billion. The company said it expects earnings this year of $3.66 to “This is a very strong sign of sistance from Danisco shareholders will receive rights, registrations are expected to generate additional $3.76 per share, excluding special items – nudging up by 2 cents the dedication on the side of DuPont,” who wanted more money. and supporting regulatory data for annual sales of around $35 million lower end of its earlier estimate. That would reflect profit growth of Danisco’s Chief Executive Tom Knut- Final regulatory approvals were all of DuPont’s non-mixture diuron to MA in the first year. 7 % to 10 % from 2010. zen told Reuters. “This can only granted in April. Jherbicides, including its industry- J

chemanager-online.com/en CHEManager Europe 5/2011 MARKETS AND COMPANIES Page 5

BASF’s Kurt Bock Says Asia Takeovers Remain Difficult

Following a string of takeovers in November. “After several measures ▪▪ December 2008 – acquires Nor- Europe and the U.S., BASF continues in the last few years… the portfolio wegian oil and gas company Re- having a hard time finding suitable is in good shape. There is no imme- vus Energy ASA for €581 million. targets in Asia, the German compa- BASF’s former CFO diate need for action,” Bock said. (Announced October 2008) ny‘s biggest growth market. Kurt Bock took over as ▪▪ August 2008 – puts more styrenics “We would like to carry out more the company’s CEO on Timeline Of BASF Acquisitions businesses on the block, raising acquisitions in Asia, but that is eas- May 6. the annual revenue at the units ier said than done,” said Kurt Bock, November 2010 – agrees to transfer that are for sale to €4 billion. who took over chief executive of the BASF has said it is aiming for parts of its styrenics business into ▪▪ July 2008 – unveils initial plans world’s largest chemical company sales in Asia to increase 7 % to 8 % a joint venture with British unlisted to sell parts of its styrenics busi- on May 6. “Over the next few years a year to reach €20 billion by 2020. peer Ineos. The Styrolution venture, ness. Süd-Chemie Reports 20 % Revenue Increase Süd-Chemie, a group company Asia will account for more than half Overall, takeovers are less of a pri- 50 % owned by BASF, will have an- ▪▪ July 2006 – acquires Germany’s of Clariant, has made a successful start to 2011. The company has re- of the growth in the chemical indus- ority while BASF continues to inte- nual sales of more than €5 billion. Degussa construction chemicals ported consolidated revenue of €318.7 million for Q1 2011, an increase try,” he told reporters at the group’s grate Cognis, Bock said. BASF stands to receive an unspeci- for €2.7 billion including debt of 20.6 %. Rising by 38.1 % on a year-on-year basis, consolidated operat- Ludwigshafen headquarters. “That keeps us busy for now,” he fied cash amount as part of the deal. and an equity value of €2.2 bil- ing profit (EBIT) grew even faster than revenue to reach €20.3 million. In the last two years BASF has said, but added that the group will Styrenics are standard plastics used lion. (Announced March 2006) Reasons for this marked rise in earnings included the business expan- bought Germany’s Cognis, a maker keep its powder dry in case an at- for casings and packaging. ▪▪ July 2006 – acquires U.S. resins sion, increased plant utilisation in response to higher demand, as well of additives for household products, tractive target comes to market. ▪▪ December 2010 – buys Cognis, a specialist Johnson Polymer for as non-recurring income of €2.8 million resulting from acquisition of a and Swiss rival Ciba, which turned “When an opportunity emerges, maker of additives for household €379 million (Announced May 50 % share in Exaloid Süd-Chemie S.L., Arceniega, Spain which is active BASF into the largest maker of ad- BASF has always been able to make products, for 3.1 billion ($4.16 2006) in the foundry additives sector. Adjusted for this non-recurring income, ditives for plastics and one of the a decision.” Bock also indicated that billion) including debt, to make ▪▪ June 2006 – acquires Engelhard the EBIT rose by 19.0 % to €17.5 million. biggest suppliers of paper chemi- the group’s previous bullish outlook its business less cyclical. (An- Corp., a U.S. maker of catalytic cals. Larger deals habe construction for the global chemical industry re- nounced June 2010) converters, for €3.8 billion (excl. Wacker Off to Good Start in 2011 Wacker Chemie said significantly in- chemicals unit of Germany’s Degussa mained valid. ▪▪ April 2009 – acquires Swiss rival debt), BASF’s largest takeover at creased sales and earnings in Q1 2011, giving it a good start into fiscal and the U.S. maker of catalytic con- BASF said at the end of Febru- Ciba for €3.8 billion including debt the time. (Announced Jan. 2006) 2011. Sales of the Munich chemical company grew by 21 % to €1.29 verters Engelhard. ary that global chemical production and an equity value of €2.2 billion, ▪▪ August 2005 – BASF and Shell billion from January through March 2011 (Q1 2010: €1.07 billion). This BASF is looking to further expand excluding pharmaceuticals was set making BASF the largest maker of sell their stakes in petrochemi- rise was primarily due to higher sales volumes. Wacker’s profitability and upgrade its main Chinese site to rise 5.2 % this year. Bock also said additives for plastics and one of the cals joint venture Basell for €4.4 also grew significantly, compared to both the previous year and Q4 2010. in Nanjing and in December ear- the group has no plans to hive off biggest suppliers of paper chemi- billion to Access Industries and Earnings before EBITDA rose to €351million in Q1 2011, a year-over- marked an additional $1 billion in further businesses for now, after cals. (Announced Sept. 2008) The Chatterjee Group. year increase of 38 %. The EBITDA margin continued to grow in the investments there. The site is part agreeing to transfer parts of its sty- ▪▪ February 2009 – says is mulling ▪▪ April 2005 – acquires Merck first three months of 2011 and now stands at 27.2 %, up from 23.8 % of a joint venture with China’s Si- renics business into a joint venture the sale of its leather and textile KGaA’s electronic chemicals busi- in Q1 2010. Group earnings before interest and taxes (EBIT) climbed nopec. with unlisted British group Ineos in chemicals business. ness for €270 million. to €245.9 million in the first quarter of 2011 (Q1 2010: €153.7 million). The EBIT margin rose to 19.0 % (Q1 2010: 14.4 %). Net income for the period reached €168million, yielding earnings per share of €3.39. Wacker said it expects sales and earnings growth for full-year 2011. The Munich www.altana.com chemical company anticipates consolidated sales of over €5 billion. 2011 EBITDA is expected to surpass last year’s figure of €1.19 billion.

Henkel Q1 Profit up over 2010 Henkel said its Q1 profit increased from last year, positively influenced by the general economic developments. Based on the performance, the company said it now expects full-year 2011 organic sales growth at the upper end of its outlook range. However, Henkel left its full-year adjusted earnings view unchanged as increasing raw material prices continue to impact results. In Q1, net income attributable to shareholders increased 10 % to €285 million from €259 million in the previous year. Earnings per share were €0.65, up from €0.59 per Our business is share reported in the preceding year. Excluding items, adjusted net income was €314 million, up from €258 million a year ago. On an adjusted basis, earnings per preferred share were €0.73, higher than €0.60 in the prior-year quarter.Earnings before tax for the quarter improved to Future €393 million from €368 million in the preceding year. Quarterly sales grew 8.9 % to €3.82 billion from €3.51 billion in the same quarter last year. After adjusting for foreign exchange, sales improved 6.8 %.

Linde’s Q1 Profit up 15 % Linde has reported that its Q1 profit rose from last year as group revenue increased 15 %, with the gases and engineering divisions delivering higher sales. The company attributed the improvement in profitability to the implementation of HPO (high performance organization) concept to increase efficiency, and backed its outlook for the full-year 2011. First-quarter earnings attributable to Linde shareholders were €284 million, up from last year’s €198 million euros. Earnings per share rose to €1.67 from €1.17 a year ago.

LyondellBasell Sees 15 % Increase in Q1 Sales LyondellBasell announced net income for Q1 of $660 million, or $1.15 per share. First-quarter 2011 EBITDA was $1,402 million, an 84 % increase from the fourth quarter 2010 figure which excludes a $323 million lower of cost or market (LCM) inventory adjustment. Sales in the first quarter were $12,252 million, an increase of 15 % from the prior quarter. The company said results improved across all business segments in Q1. Most notable were im- provements in global Olefins & Polyolefins and the Refining & Oxyfuels segment as increased margins were realized in spite of significant crude oil price increases during the quarter. Commenting on the near-term outlook, CEO Jim Gallogly said, “The second quarter is off to a good start. Conditions experienced in the first quarter were maintained and, in some areas, improved during April.”

SABIC Sees 42 % Increase in Net Income SABIC announced a net income of SR 7.69 billion for Q1 2011, compared to the net income of SR 5.43 billion for the same quarter in 2010. This represents an increase of 42 %, and compared to the net income for the fourth quarter of 2010 of SR 5.75 billion representing an increase of 34 %. The gross operating profit amounted to SR 15.43 billion compared to the same quarter in 2010 of SR 12.22 billion representing an increase of 26 %. The income from operations amounted to SR 12.51 billion compared to SR 9.71 billion for the same quarter in 2010. This represents an increase of 29 %. The earnings per share amounted to SR 2.56 compared to SR 1.81 for the same period in 2010. Shaping the future means having the courage to branch out in new directions. This is DSM Reports Strong Q1 DSM has reported that its Q1 EBITDA from con- precisely the principle that guides all our thinking and actions at ALTANA. tinuing operations is up 14 % to € 325 million. The company also said that its Life Science results were driven by ongoing good performance in Specialty chemicals are our business. A business we pursue with passion and dedication in Nutrition. DSM said it expects 2011 to be a strong year toward achieving more than 100 countries. Four specialized divisions work together to ensure that ALTANA‘s its 2013 targets. Commenting on the results, Feike Sijbesma, CEO/Chair- unrivalled competence and service excellence continue to improve and expand. With a man of the DSM managing board, said: “In the quarter we successfully clear vision of what our customers expect of us, it is our ambition at all times to develop completed our acquisition of Martek, welcoming its employees to DSM. solutions that turn opportunities into future reality. The integration of Martek started immediately and the contribution to our profit is in line with expectations.”

Syngenta Sales Up 13 % Syngenta reported a 13 % increase in sales to $4 billion for Q1 2011, up over last year’s Q1 sales of $3.53 billion. The company attributed the increase to its strong growth in crop protection and seeds sales in all regions. In the quarter, crop protection sales grew 11 % to $2.79 billion from prior year’s $2.51 billion. Sales of seeds climbed 20 % to $1.24 billion from last year’s $1.04 billion. Syngenta also stated that it experienced a good start to the Northern hemisphere season during the quarter.

chemanager-online.com/en Page 6 MARKETS AND COMPANIES CHEManager Europe 5/2011

Hope In Uncertainty A New PwC Survey Shows Optimism Among Chemicals CEOs

Looking Up –The global economy sign of this trend. In a press release, SusChem described his appointment is still recovering from the worst eco- as a marker of its “increasing deter- nomic crisis in 75 years, as many coun- mination to accelerate the adoption tries grapple with the aftermath of the of innovation along the chemical value chain by enhanced collabora- recession. So PricewaterhouseCoopers tion with partners.” SusChem aims (PwC) set out to uncover how CEOs to lead large innovation programs with downstream industries in the are approaching growth during a time European Union, and similar pro- when sustainable economic growth is grams are happening in other parts far from certain. PwC surveyed 1,201 of the world as well. Innovation communities are also business leaders in 69 countries around gaining momentum on the chemical the globe in the last quarter of 2010, manufacturing scene. Chemelot, an open innovation community in the and conducted further in-depth inter- Netherlands, is one of the largest views with 31 CEOs. chemicals industry parks in Europe. It combines factories and a research campus at one location. Seventy © Gabi Moisa - Fotolia.com Chemicals CEOs see a particularly companies, from start-ups to serv- bright future for their sector: Almost ice providers, take advantage of ac- 30 % are somewhat confident, and cess to raw materials and peripheral 66 % are very confident, of revenue services – and the community uses growth over the next three years. Twitter and Facebook to maintain All this in a sector that was one of connectivity. the hardest hit during the downturn. Why such an optimistic outlook? Globalization Reimagined One reason is greater efficiency. Many chemicals companies aggres- CEOs’ shift towards a targeted strat- sively cut costs during the slump in egy signals the advance of globaliza- demand: 85 % of chemicals CEOs tion – but it may diverge from how report that they have implemented it’s looked in the past. Companies a cost-reduction initiative in the are not only affected by globaliza- past 12 months. Their companies tion; the actions they take will shape are emerging leaner and meaner. it. That 73 % of chemicals CEOs sup- They’ve changed strategies, too. ate, have high expectations of Latin itly in strategic planning and risk growth. Now they’re more likely to countries in which they themselves port “good growth” is recognition A full 82 % of chemicals CEOs say America and Asia – particularly management scenarios. be focusing on stimulating the in- are based. that they would like to see globali- they’ve altered course in the past China. Thirty-nine percent of CEOs Chemicals CEOs are also much novations needed for new products zation evolve in a way that links two years – and 29 % believe the in the full sample named China more concerned than other CEOs and services. This trend is common Helping Customers Operate More Sustainably economic growth and social devel- change has been “fundamental.” one of the three foreign countries about energy costs – which is not to CEOs in many industries, but it’s opment. Good growth is a longterm Uncertainty about economic most important to their company’s surprising, given the energy-inten- even more pronounced in the chem- Sixty-four percent of all CEOs think path towards value creation that growth is the predominant reason growth. But chemicals CEOs accord sive nature of chemicals production icals sector. that developing environmentally- creates lasting prosperity for both for steering in a different direction. China even greater weight: 58 % rate (fig. 1). That’s why they are more Most chemicals CEOs are confi- friendly products or services is an shareholders and society. Demand for chemicals industry it among their top three countries likely to have plans in place to miti- dent their innovations will succeed: “important part” of their companies’ Many CEOs understand that products generally follows GDP lev- for growth. Its significance is equally gate related risks than are CEOs 85 % believe new products and serv- innovation strategies. The numbers such efforts help attract and retain els and, though the global economy striking from a production perspec- across the sample as a whole. And ices will produce significant new are even higher in the chemicals a strong workforce. And employees has improved, nearly three-quarters tive. Forty-nine percent of chemicals many are focusing their companies’ revenue streams (fig. 2). But that sector (fig. 3). Many chemicals who believe their efforts are helping of chemicals CEOs are still worried CEOs see China as one of the most research efforts on energy reduc- will mean getting to know the cus- CEOs believe their companies can society as well as their company are about uncertain or volatile econom- important countries for their future tion, too. tomers of key markets very well. play a major role in fighting climate likely to be more committed to the ic growth hurting their businesses. sourcing needs, compared to 37 % of change by researching and develop- research efforts that drive innova- But many chemicals CEOs are also the entire sample. Putting Customers at Making Innovation Local ing products that help their custom- tion. For chemicals CEOs innova- adopting new strategies in the Centre of Innovation ers reduce their carbon footprint. tion is hands-down the best way to response to shifts in customer Global Strategies for Companies operating globally will As one example, chemical prod- achieve sustainable growth. demand and industry dynamics – Dealing with Macro Risks The chemicals industry, which is need to innovate to ensure they can ucts are critical in reducing the car- Chemicals CEOs are optimistic and all these factors are ultimately sometimes called the world’s first meet the needs of local markets. bon footprint of buildings, through about the outlook: a higher per- leading them towards emerging It’s clear that with so many chemi- science-based industry, has long But to get closer to customers, some the use of insulation and a wide centage than in the total sample markets. cals CEOs – and, indeed, those in been at the forefront of innovation. CEOs are shifting the development range of other applications. 4 The believe that business and govern- all industries – turning to emerging Nonetheless, in past years, chemi- process closer to customers – liter- industry is also starting to use life ment partnerships will be more ef- Targeting Emerging Markets markets for growth, the competition cals CEOs have typically concen- ally. Chemicals CEOs are particularly cycle analysis (LCA) – a process fective at mitigating key global risks is likely to be fierce. In China, for ex- trated on likely to think the majority of the in- which looks at the emissions gen- like climate change, terrorism and The International Monetary Fund ample, revenues are rising steadily better penetration of existing novations their companies make will erated during the entire life cycle financial crises in the future. predicts that growth rates for 2011 – but margins are falling. So chemi- markets as the key way to drive originate in markets other than the of a product, from extraction to will still be sluggish for developed cal CEOs will need to ensure their manufacture, transportation, usage 22 Contact: economies. But emerging markets companies have efficient operating and finally recycling or disposal – Tracey Stover are booming – and providing huge models and processes. They’ll also Chemicals CEOs are especially worried about energy costs Fig. 1 to document the positive impact its PricewaterhouseCoopers, Global Chemicals Leader opportunities for chemical produc- need to make sure they have access How concerned are you about the following potential business threats to your growth prospects (energy costs)? products can make on the carbon Denver, Colo., U.S. ers. Most chemical companies have to raw materials, and footprint of customers. Tel.: + 1 720 931 7466 already set up shop in key emerg- the energy to process them, reli- [email protected] ing markets; a higher percentage ably and at a reasonable cost – and Opening Innovation to www.pwc.com of chemicals CEOs say they already dealing with these global risks is no Supply Chain Partners and Beyond have operations in Asia and Eastern easy feat. A full 66 % of chemicals 15 10 44 31 Chemicals Europe than in the CEOs (vs. just 34 % of the total sam- The chemicals industry already survey population as a whole. ple) told PwC they’re concerned that has a history of working with sup- And 69 % of chemicals CEOs agree scarcity of natural resources could ply chain partners in the search for or strongly agree that emerging put the brakes on growth. Most are 34 26 26 14 Total sample innovation: 36 % of chemicals CEOs markets are more important to their already responding: Two-thirds of this year expect that the majority company’s future than developed chemicals CEOs intend to invest of their innovations will be co-de- markets, compared to 59 % of CEOs more effort in securing natural re- veloped with external partners. The in the total sample. sources over the next three years. recent appointment of Paul-Joël Not very concerned Not concerned at all The majority of CEOs, regardless And about half now include natu- Somewhat concerned Extremely concerned Derian, group vice-president for re- of the sector in which they oper- ral resource-related factors explic- search and development at Rhodia, as the chairman of SusChem (the chemanager-online.com/en/ European Technology Platform for Source: PwC 14th Annual Global CEO Survey © GIT VERLAG tags/PwC Sustainable Chemistry) is another

Bayer Says Merger of Equals an Option Chemicals CEOs believe innovation will bring competitive Fig. 2 Chemicals CEOs are focusing innovation efforts on developing Fig. 3 advantages and new revenues environmentally-friendly products our major focus over the next years To what extent do you agree or disagree with the following statements about your expectations To what extent do you agree or disagree with the following statements about your expectations regarding your company’s regarding your company’s innovation over the next 3 years? innovation over the next 3 years: “Developing environmentally-friendly products or services is an important part of my will be organic growth,” CEO Marijn company’s innovation strategy”? Dekkers said. Speaking about general industry trends, the CEO said: “The real big Our innovations will lead to operational efficiences 0 7 47 36 Chemicals 2 58 34 that provide us with a competitive advantage Marijn Dekkers mergers would more likely to be CEO of Bayer mergers of equals than one putting a lot of money down for another.” 3 56 29 Our innovations will lead to significant new 5 12 41 23 Total sample Bayer would consider a tie-up with He reiterated recent remarks revenue opportunities a pharmaceutical peer of the same that Bayer was eyeing the drugs size even though its focus remains sector and the genetically-modified on organic growth, the head of Ger- seeds industry for possible takeover many’s largest drugmaker said in an targets and that the sale of assets, Disagree Agree Agree strongly Disagree strongly Disagree Agree Agree strongly interview with Bloomberg TV. such as its MaterialScience unit, “We would possibly consider a would be a “very extreme option” merger of equals in healthcare but after all other funding options had we are not desperate to do deals in been exhausted. Source: PwC 14th Annual Global CEO Survey © GIT VERLAG Source: PwC 14th Annual Global CEO Survey © GIT VERLAG any part of the company because J

chemanager-online.com/en CHEManager Europe 5/2011 PHARMA Page 7

Flexibility In Bioprocessing Merck Millipore on its Single-Use Production Solutions

It was a most unusual road trip – Drivers on the highways of Europe tween products, then it makes per- It should be mentioned that almost fect sense. While there is a general one year has passed since Merck were probably surprised to see the scaled-down equivalent of a bioprocessing perception that there is more waste bough Millipore in July 2010. How production line rolling next to them last year. In 2010, Merck Millipore launched with single-use equipment, detailed did that affect the company in terms its Biosafety Tour, a travelling exhibition and technical seminar tour designed to analysis has shown that the over- of innovation? all carbon footprint with single-use provide customers with answers to their unmet biosafety challenges, directly at is comparable or smaller than the M. Weber: In terms of all the new their facilities. The truck visited 23 cities throughout the Netherlands, Belgium, carbon footprint in an equivalent products like the Mobius FlexReady stainless steel production facility. solution, I am sure the innovation UK, Germany, France, Austria and Switzerland and gave visitors a hands-on look The perception exists because the we did as Millipore was really out- at Merck Millipore’s single-use technology. Brandi Schuster spoke with Michael use of single-use technologies gen- standing, and now it is even easier Weber, regional sales manager Germany/Denmark for biopharm process solutions erate more visible waste while the with Merck. Now we’ve been able to predominant waste in a fixed/stain- combine the capabilities from both at Merck Millipore, about the lessons learned from the tour and new trends in less steel facility is water (lots of it) companies in order to find the best bioprocessing. and cleaning chemicals. solution for our customers. The truck visited 23 cities throughout the Netherlands, Belgium, UK, Germany, France, What kind of scale up can be done Austria and Switzerland and gave visitors a and easily, significantly shortening with disposables? hands-on look at Merck Millipore’s single-use development, validation and manu- technology. facturing time. It can simply be tak- M. Weber: The largest bag we’ve sold en off the shelf and it’s ready to go was 3,500l, but that was really an – the pump is there, as well as pres- So does it come out being around for the customer’s particular pro- exception. Normal would be up to Michael Weber sure sensors, valves, etc. If the user about the same or is there really a duction line. For example, if a com- 1000-2000l. This is a range that can Merck Millipore wants to then start production on a sustainability advantage to having pany has a production line produc- be handled well with disposables. different product, they only need to disposable? ing the same product every day over We have mixers that start at 10l dispose the used flowpath or Flex- years, then it makes absolutely no and go all the way up to 500l; and chemanager-online.com/en/ CHEManager Europe: Mr. Weber, the ware assembly put the previous one M. Weber: It depends, which is why we sense to use disposables. However, also a 1,000l disposable mixer will tags/bioprocessing European Biosafety Tour sounds like away, put a new Flexware assembly first work to figure out what’s best if they are frequently switching be- be launched this year. it was an epic undertaking. What was in place and then they can get going. the reason for it? That means there’s no sterilization involved and no need for cleaning. M. Weber: By meeting biotech and pharmaceutical manufacturers In terms of flexibility, are companies face-to-face, we wanted to help are trying to do different kinds of solve their greatest biosafety chal- processes at the same time? Are they lenges. Since most in the industry doing smaller batch runs? are pressed for time, a truck that TIME FOR CHANGE physically showed our capabilities M. Weber: This is very often the case and innovations – from the bioreac- for the contract manufacturers and tor to sterile filtration all the way researchers used by the big industry down to final fill steps – was highly players. They simply must be able to appreciated by our customers. We work flexibly and quickly. They need were able to show them how we to be able to go through an entire can help with challenges on new process in a short period of time, projects – from process development and they need to be able to change to clinical production using single- from one product to another. use technologies. While the time-saving advantages What kinds of trends are you seeing are obvious, it sounds like the use of in bioprocessing? disposable equipment can get relatively expensive over time, whereas M. Weber: Our customers have been stainless steel is more or less a one- achieving higher titers, particularly time investment. for monoclonal antibodies – mAbs – for some time now. These higher M. Weber: As mentioned before, the titers allow them to consider us- disposable solution doesn’t fit eve- ing smaller bioreactors. This, over rywhere. The investment and the the last several years has resulted running costs of a process have to in a push to the use of single-use be calculated for both solutions and technologies in bioprocessing – not customer needs to make a decision. just the bioreactor, but the purifi- This isn’t an easy task as you also cation process as well, on order have to consider the costs of work- to enhance production flexibility. ing time, water, cleaning chemicals, The Merck Millipore truck showed waste, etc. Merck-Millipore has a completely disposable way of experienced specialists who can producing monoclonal antibodies. do a full-cost calculation with our That means for every single step customers in order to assess what involved, everything was dispos- would be their best solution – dis- able. posable or stainless steel.

How does the use of disposables make Is there a demand for more and more production more flexible? components to become disposable? ng lk i red u ie b n d t e M. Weber: First and foremost, there M. Weber: Yes. We are currently devel- f t e

n FlexWall e

d e

is no cleaning necessary between oping disposable sensors that meas- t

a Plus

r batches, which makes production ure things such as pH or conductiv- P time much shorter. It can also save ity. Of course, when the assembly is money – the investment in dispos- disposable, only a certain price is Bulk ingredient metering feeders ables can be lower than in stainless acceptable. This is certainly a chal- steel. lenge we are currently working on. for all kinds of applications One other important reason for the increased interest in single-use What about the recyclability of these technologies is the ability to delay disposable components? Loss-in-weight feeders investment decisions. It takes sig- FlexWall®Plus feeders, FlexWall®Food feeders, nificantly less time to go from plan M. Weber: Sustainability is for us a FlexWall®Sanitary feeders, FlexWall®Classic feeders, to qualification with a single-use big topic, and we are doing a lot of twin screw feeders, laboratory feeders, ScrewDisc® feeders, facility when compared to a fixed/ things in this direction. For example, vibrating tray feeders, DualTray feeders, SiloTray feeders, stainless steel facility. This enables we started in an early phase with loss-in-weight liquid feeders some of our customers that are contracts with some of our custom- waiting for clinical trial results to ers to recycle our cartridges after Weigh feeders defer large investment decisions. production. But as the Flexware as- Weigh-belt feeders, Coriolis mass flow scale While stainless steel still has its semblies are often used for mono- place in production, it’s much more clonal antibodies, they are not al- Batch systems cumbersome to use if a manufac- lowed to be recycled. Therefore the Loss-in-weight batch feeders, MicroBatch scales turer often changes production used single-use components are Controls from one product to another. In generally incinerated Loadable function blocks for easy integration the case of stainless steel, all of We were asked a lot on the tour of gravimetric Brabender metering feeders the equipment must be properly about the sustainability of using dis- NEW cleaned and validated and some- posable equipment. However, when in automation systems, e.g. Siemens, Rockwell Brabender Technologie times a company even needs dedi- we consider that stainless steel has Service cated equipment for a particular to be cleaned and sterilized after World-wide on-site service, process consulting, First-Choice Partner in Bulk Ingredient Feeding product. each use, which consumes an in- feeding trials suited to your specific applications, With the Merck Millipore Mobius credible amount of energy, water www.brabender-technologie.com Feeder-Scout - the scientific feeder selection program FlexReady solution, users can install and cleaning solutions, it is not very www.feederscout.com equipment, configure applications easy to handle in terms of sustain- and validate their processes quickly ability.

chemanager-online.com/en Page 8 MARKETS AND COMPANIES CHEManager Europe 5/2011

Pharma Tuning What Pharmaceutical Companies Can Learn from the Auto Industry

Going Lean – The pharmaceutical great deal of waste. Many different try have shown. The transforma- lot sizes and packaging variations tion begins with the development industry is subject to very special re- mean that machines have to be re- of new drugs. Over recent years, quirements: strict approval procedures, tooled frequently. On average, wait the average product development rising cost pressures in the healthcare times and other activities that do not time in the automobile industry has directly result in revenues account decreased by 28 %; in the pharma- industry and lost sales due to compe- for 60 % of production time. Phar- ceutical industry, by contrast, it tition from generic manufacturers. Yet maceutical companies can therefore has risen by 31 %. Just as in the significantly increase their efficiency automobile industry, pharmaceu- some of their difficulties are self-inflict- if they successfully restructure their tical companies can involve all ed, and pharmaceutical companies production and logistics processes. departments, such as production, can make their processes significantly labor, marketing and sales, in the Lean Management and more efficient – as a comparison with Operational Excellence operational excellence initiatives in the The automobile industry, which automobile industry demonstrates. has faced similar cost pressures for Even product development can be re- decades, has already gone through structured on “lean” principles. just such a slimming-down process. Manufacturers have reduced their share of the value creation chain to their core competencies and restruc- tured their production and logistics processes so that parts are only delivered to the assembly line when Dirk Pfitzer needed. This has allowed manufac- Partner, turers to shrink their inventories Porsche Consulting GmbH substantially. And overall equipment While drugs are not cars, the automotive sector’s effectiveness (OEE) exceeds 90 % in experience in operational excellence sets a good the automobile industry. Porsche example for the pharmaceutical industry. provides an impressive example of the methods used by carmakers to Klaus-Dieter Pannes achieve such significant efficiency product development process from through short lead times in produc- can be defined in time. The reduc- duction rhythm is defined: different Principal Healthcare gains. the beginning. A precise procedure tion and quality control – and with tion of stock was made possible by products are put through the ma- Division, Over the past 20 years, the car- defines individual steps – from the substantially smaller stocks and applying lean production principles chines in the order in which setup Porsche Consulting GmbH maker has implemented the princi- identification of a gap in the market thus a significant impact on work- to logistics: Employees and material times can be kept to a minimum. ples of “lean management,” reducing to clinical tests and even the design ing capital. follow a clear tact and parts are re- This optimal sequence of products its work processes to the essential. of the package. The time-to-market loaded as infrequently as possible. always stays the same; only the At first glance, the pharmaceutical Porsche is constantly looking for for new products can be reduced An Example From Porsche Above all, however, the carmaker respective quantities are re-deter- and automobile industries have lit- ways to improve its organization. by up to 25 %. It is also easier to came to regard the supply chain mined each time – in accordance tle in common – drugs are not cars, The objective is for all employees to identify unpromising products at Here again Porsche can lead the as a whole – and the supply chain with demand. after all. The type of customers and continuously question the company’s an earlier stage. A company can way: In its Leipzig logistics system, for cars is even more complex One thing is clear: The pharma- legal requirements of the two in- processes and optimize them step- save millions. Porsche has reduced the stock days’ than those in the pharmaceutical ceutical industry is subject to very dustries are likewise highly distinct. by-step. The experts at the group’s There is great potential for ef- supply for required parts to under industry. A Porsche consists of over special requirements. Nevertheless, Drugmakers are faced with a range consulting company Porsche Con- ficiency gains in production as 15,000 parts and several thousand many successful optimization prin- of special problems: Approval pro- sulting, whose 250-plus employees well: Porsche Consulting projects in supplier reference numbers. The ciples from the automobile industry cedures for new drugs are becom- have been supporting companies in the pharmaceutical industry have steering wheel alone – one of 150 can be applied to the pharmaceuti- ing more and more stringent while the industrial and service sectors shown that production and filling assemblies – emerges from a multi- cal industry as well. Pharmaceuti- cost pressures continue to rise as around the world for years, talk equipment can be retooled from one step supply chain in which the trim, cal companies that are able to sig- politicians and health insurance about “operational excellence.” drug to the next up to 40 % faster. buttons and leather come from dif- nificantly improve their operational companies seek to stem rising costs And Porsche has it in spades. For instance, machine operators ferent suppliers with production performance and responsiveness in national healthcare systems. The Manufacturing costs for a Por- must perform as many work steps steps in a dozen countries. And will be the market leaders of to- companies also face the prospect of sche 911 today are significantly low- as possible before the machine stops although there are millions of pos- morrow. falling revenues as patents expire er than in 1991. The reason: Porsche operating (external changeover). sible variants, Porsche can name a and generic manufacturers launch has continuously improved its pro- Moreover, one person can operate delivery date for customers within 22 Contact: competing products. duction processes and made them multiple machines at once provided two minutes. Dirk Pfitzer more efficient. Moreover, today Por- that they follow a defined tact. In Unlike with cars, customers in Porsche Consulting GmbH A Homemade Problem sche engineers keep the production this way, staff requirements can be the pharmaceutical industry gen- Bietigheim-Bissingen, Germany process in mind when designing new reduced by up to 30 %. erally do not accept delivery lead Tel.: +49 711 911 12238 Yet some of the challenges facing products. But above all, competitive, Another area ripe for optimiza- times. Nevertheless, the experts Fax: +49 711 911 12204 the pharmaceutical industry can efficient processes are made possible tion is the enormous stocks held by from Porsche Consulting have be traced back to the companies by Porsche’s decision to keep only drugmakers. In order to be able to been able to help their clients in Klaus-Dieter Pannes themselves: The development of new the production steps in-house that deliver upon demand, stocks of some the industry to reduce stocks by Tel.: +49 711 911 12870 drugs has become markedly more comprise its core competency. drugs are so large that they would up to 30 %. They rely on the “pull Fax: +49 711 911 12204 cost-intensive in recent years. Com- cover a year’s worth of demand. The principle,” in which current usage pared to other industries, pharma- Room For Improvement result is that companies are often one day on average. Clearly defined determines what is produced and ceutical companies rely heavily on forced to destroy stocks when drugs processes and stocks deliver an ad- therefore also which preliminary in-house value creation. Organiza- Pharmaceutical companies can have passed their sell-by dates, the ditional advantage: comprehensive products need to be delivered. The tion of the value-creation chain in learn from the automobile industry, packaging has been changed or de- transparency. Fluctuations in the finished goods stock must only last chemanager-online.com/en/ the industry is often sub-par; in pro- as successful consulting projects by mand has dropped. But the same supply chain become visible very until more of the product can be tags/lean-manufacturing duction in particular, there is often a Porsche Consulting in the indus- supply capability can be achieved early and thus countermeasures produced. In the next step, a pro-

Teva to Buy Cephalon for $6.8 Billion J&J to Buy Synthes for $21.3 Billion U.S. Top Court Questions

Teva Pharmaceutical Industries Valeant said after the joint Teva- U.S. healthcare conglomerate John- State Drug Data Limits struck a deal to acquire U.S. specialty Cephalon announcement that it was son & Johnson has announced a drugmaker Cephalon for nearly $7 withdrawing its offer. The combined $21.3 billion deal to buy Swiss medi- U.S. Supreme Court justices sharply panies – IMS Health, Verispan and billion, topping an unsolicited bid by company would have about $7 bil- cal device maker Synthes, the Wall questioned whether a state may Source Healthcare Analytics, a unit Canada’s Valeant Pharmaceuticals lion in branded drug sales, repre- Street Journal said, citing people prohibit the use of prescription of Dutch publisher Wolters Kluwer International. The deal would boost senting 36% of Teva’s sales last year. familiar with the matter. The deal drug records for marketing, ex- – that collect and sell such informa- the brand-name business of Israel- The deal is worth $6.8 billion, in- is expected to value Synthes at 159 pressing concerns that it violated tion. based Teva, best known as the world’s cluding the conversion of Cephalon’s swiss francs ($180.51) a share, the free-speech rights. Chief Justice Goldstein said the law discrimi- largest maker of generic drugs. Ce- convertible debentures and stock Journal said, citing one person fa- John Roberts said Vermont in nated against drug companies and phalon’s pain, sleep and cancer drugs options. miliar with the matter. Synthes re- adopting the law wanted to lower made it harder for them to get their will help Teva reduce its reliance on cently confirmed it was in merger healthcare costs not by direct regu- message to doctors while unfairly the big-selling Copaxone multiple talks with J&J about a deal that lation, but by restricting the flow of favoring views espoused by the state sclerosis medicine, which faces in- would be J&J’s largest-ever acqui- information and “censoring” what and insurance companies that favor creasing competitive threats. sition and reshape the medical de- doctors can hear from pharmaceu- generic drugs. Teva’s $81.50-a-share deal repre- vices industry. The Journal said J&J tical companies so they prescribe Vermont, Maine and New Hamp- sented a nearly 12% premium over is expected to pay one-third cash If the deal for the Swiss medical device maker generic drugs. A number of other shire have been the only states to Valeant’s $73-a-share offer, which and the remainder in stock as part Synthes goes through, it will be J&J’s largest- justices voiced similar concerns in adopt such laws, though similar Valeant made public on March 29. J of the deal. Jever takeover. hearing arguments about the law measures have been proposed in the that restricts commercial use of last three years in about 25 states prescription records. Pharmaceuti- across the country. cal manufacturers use data about a A ruling is expected by the end Asahi Awarded up to $547 Million in Actelion Case doctor’s prescribing habits to better of June. inform their drug salespeople when Swiss biotech group Actelion may statement that the Superior Court and its subsidiaries Actelion Phar- agreement between Asahi and CoTh- they visit physician offices to mar- appeal against a jury’s decision in a of the State of California jury would maceuticals U.S. Inc., Actelion Phar- erix for the drug compound fasudil ket certain products. Californian court to award Asahi Ka- continue deliberations regarding maceuticals Ltd, Actelion U.S. Hold- that was terminated when Actelion The court seemed sympathetic sei Pharma Corporation up to $547 punitive awards. Asahi filed a com- ing Company, CoTherix and three bought CoTherix in 2007. to the arguments by attorney Tom million in a dispute with Actelion plaint at the State Court of California individual officers. The dispute con- Goldstein in challenging the law on unit CoTherix. Actelion said in a at the end of 2008 against Actelion cerns a licensing and development J behalf of three data mining com- J

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from the crowd Atkins/Fotolia.com © Peter www.chemanager- /en www.chemanager-online.com/en © memo/Fotolia.com Production online.com CHEManager Europe 5/2011 Facilities · Processes · Technologies Page 9

Packaging Bioplastics Chemicals An in-depth look at the ongoing Which country is shaping up Converting PLA waste trend of bio-based packaging to be Asia’s bioplastics hub? into virgin material

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Automation on a Small Scale Increasing Efficiency in Continuous and Batch Manufacturing

New Solutions – As a manufacturer of particle board resins, Dynea Benelux par- ticipates in a competitive commodity market and thus establishing a cost-leadership position is crucial. In 2004, although its cost structure was competitive, the business was experiencing more demanding requirements on customer service and flexibility, product Lanxess Expands Capacities for Baypren Specialty chemicals company Lanxess is investing €17 million in the expansion of its production capacities for quality and business planning and controlling and reporting. In order to meet these re- polychloroprene solid rubber. The expansion at the Dormagen site is sched- quirements, management elected to implement state-of the-art automation solutions. uled for completion by the end of 2012 and will increase production by 10 percent to 63,000 metric tons per year. Lanxess produces and markets polychloroprene solid rubber under the brand name Baypren. Uses for this product range include the production of cable sheathing, hoses, belts, seals Goals And Objectives and air springs. The expansion work will also see the implementation of a new production technology that the company says will enable it to operate At the start of the effort, production more energy and resource efficiently and thus more ecologically. processes were semi-automated, with the operator controlling the Linde Builds Large Hydrogen and Synthesis Gas Plant in China The Linde Group batch from the DCS but still required has announced it will build and operate a large hydrogen and synthesis gas to complete some activities manually. plant in the Chongqing Chemical Park in Western China in a joint enterprise Administrative systems were stand- with Chongqing Chemical & Pharmaceutical Holding Company (CCPHC). alone. The objective of the program © itestro - Fotolia.com © itestro The project has a total investment value of around €200 million. Linde was to simplify and increase the level holds 60% of the shares in the joint enterprise with CCPHC. In future, the of automation of all business proc- Challenges new on-site plant will provide the production facilities of BASF and CCPHC esses, including manufacturing, ad- based in Chongqing with carbon monoxide, hydrogen and synthesis gas. ministration and business planning, Throughout implementation of the The new plant, which will be supplied by Linde’s Engineering Division, is control and reporting. By doing so, automation system, the biggest expected to come on stream in the third quarter of 2014. safety and product quality consisten- challenge was getting the opera- cy would be improved, raw material tors to adjust to the changes. Most SABIC in Chemicals JV with Japan’s Asahi, Mitsubishi SABIC will launch a consumption reduced and data cap- feared losing their jobs once effi- joint venture firm with Japan’s Asahi Kasei Chemicals and Mitsubishi. The turing, handling and reporting would ciency was improved. Dynea, how- new company, Saudi Japanese Acrylonitrile (Shrouq), will build a plant to be faster and more accurate. ever, retrained the operators for ex- produce acrylonitrile and sodium cyanide at one of the SABIC affiliates’ It was determined initially to se- ure and it was getting difficult to ob- which historically came from dif- panded responsibilities so that they sites in Jubail. The site was not identified. The facility will have capacity lect open, standard software pack- tain good support and spare parts. ferent companies (Neste Chemicals, now do multiple tasks in addition of 200,000 tons annually of the former and 40,000 metric tons annually ages from leading suppliers that Paper documentation for batch and Dyno), utilized different systems. to performing their operator du- of the latter, SABIC said. It has announced plans to build an acrylonitrile were designed to meet the specific production data, material consump- With adoption of the company-wide ties. Commitment by management butadiene styrene (ABS) plant at its fully-owned affiliate Petrokemya. The demands of a small and not too tion, formulations, quality control, ERP system, data from the DeltaV helped overcome this problem. three companies will start conducting basic engineering design and will complex process industry site em- production scheduling and other DCS at Dynea Benelux (raw mate- The openness of the DeltaV soft- take a final investment decision in 2012. ploying both batch and continuous activities was required, and only ba- rial consumption, production fig- ware, while a great benefit, also pre- processes. Systems would be con- sic process controls were automated ures, analytical data and shipment sented a challenge as well. People ex- CJ Cheiljedang and Arkema to Build Bio-Methionine Plant CJ CheilJedang figured with a strong focus on pro using a PLC-based system. numbers) are exported to the ERP perienced in programming the DCS (CJ Group) and Arkema have signed a memorandum of understanding cess and cost efficiency according The first step, therefore, was to system, and the Benelux business system are required to maximize its to build a bio-methionine and thiochemicals platform in South East Asia to the ISA S88 industry standard. increase automation of processes has rapid access to necessary ad- use. Therefore it was necessary to (Malaysia or Thailand). This project entails the construction of the world’s Furthermore, standard tools and find production people looking for first world-scale methyl mercaptan integrated bio-methionine plant, which set-ups from other Dynea sites and the opportunity to learn this skill and will enable CJ to respond to strong demand for methionine, a sulfur amino suppliers would be adopted where expand further their responsibilities. acid widely used for animal feed in Asia, and Arkema to better serve its possible and interfaces between sys- Fortunately, some people volunteered Asian customers from a new industrial platform. The project represents tems would be included in order to and have been trained. overall investments of $400 million split equally between both partners. eliminate double input and work. The 80,000 ton bio-methionine production plant, which would be unique Conclusions in the world, and the thiochemicals platform would come on stream at Project Initiation the end of 2013. The results at Dynea Benelux dem- The project was initiated from the onstrate that it is not necessary to be Evonik to Build Organic Specialty Surfactants Plant in China Evonik said it is bottom to the top, keeping later big to benefit from being lean and au- building an integrated production plant for organic specialty surfactants phases and the totality of the sys- tomated. When making such signifi- at its site in Shanghai, China. With an investment volume in the upper tems in mind from the start. Increas- cant operational changes, however, double-digit million range, the production network is scheduled to begin ing process efficiency and automa- it is very important to proceed at the operation in mid 2013. The various specialty surfactants based on re- tion was followed by increasing the right speed and consider employee newable raw materials will be used primarily for cosmetics and laundry level of automation and integration concerns. People still have to operate care products, as well as for industrial applications. The new integrated of manufacturing support systems the automated systems and must ac- production plant will produce ingredients for cosmetics and laundry care and ultimately business systems. cept the changes, or the investment products, as well as specialty surfactants for industrial applications. The To get the most value out of the will not bring the proper return. Chinese cosmetics industry accounts for the lion’s share of production. project, the processes themselves Dynea Benelux’s automating of its operations has led to improved product quality and reliability. Finally, the introduction of auto- were evaluated to identify opportu- mated systems has been successful LDK Solar Makes $40 Million Entry into LED Business Solar wafer producer nities for improvement of efficiency including better automated equip- ministrative and other corporate and we are thus considering other LDK Solar will invest about $40 million to enter into the business of and productivity to make the opera- ment (e.g. valves) and monitoring level information. opportunities including more auto- sapphire substrates used to make LEDs, which are likely to see higher tions leaner as well as automated. systems (flow, weight, etc.). Most mated production scheduling, in- demand as power generation costs and greenhouse gas emission con- The Emerson DeltaV system was importantly, controls were installed Results tegration of the DeltaV and Oracle cerns rise. Solar companies, including LDK and GT Solar, are diversify- chosen because its offers an inte- for automated batch sequence. ERP systems for plant maintenance ing into other businesses to offset potential setbacks in their traditional grated solution that follows the ISA- The DeltaV software also includes Automating operations has led to operations and more integration on business because of subsidy cuts in major markets of Europe. LDK plans 88 Batch standard. It is a DCS with the ability to control specific actions improved product quality and reli- the Dynea Europe level for activities to build a new plant, with the capacity to supply two million two-inch multi-unit recipe control and inte- at various levels, build recipes and ability. Operations are more efficient such as supply chain planning. equivalent pieces of sapphire wafers every year, in the Nanchang city of grated batch automation. In addition, manage campaigns, and provides due to improved production plan- Jiangxi province in China. Last month, a joint venture led by Samsung all of its components are designed to one operator interface, making it ning. Business activities (logistics, 22 Contact: Electronics tied up with Sumitomo Chemical for a $72 million venture to use a single configuration database, easy to monitor the system. Batch- financial) are also more efficient due Erik Bastiaensen produce the substrates. and the DeltaV Batch History module based analysis tools have helped to ready access to production, sales, Dynea NV is included. Furthermore, using the dramatically with early identifica- shipping and order information. Re- Gent, Belgium Israel Chem to Invest €160 Million in Spanish Unit Fertilizer and specialty standard modules and tools available tion and resolution of operational duced resource consumption (raw Tel.: +32 9 342 34 30 chemicals maker Israel Chemicals (ICL) said it would invest €160 million from the Emerson Project Builder problems. Web-based access enables materials, paper, energy) and waste Fax: +32 9 342 34 50 in the first phase of an efficiency plan for its Spanish unit, Iberpotash. Library, design and implementation easy interaction with the program generation help with cost reduction [email protected] The plan calls for an expansion of Iberpotash’s mine and processing time were significantly reduced. and provides flexibility in schedul- and environmental compliance. The www.dynea.com facility at Cabanasas and Suria, near Barcelona, and the phasing out of ing batches. Dynea’s intranet is pro- DeltaV system also provides good operations at another Iberpotash mine and processing facility, ICL said. Implementation tected with a firewall and a gateway plant benchmarking possibilities. The goal of the efficiency plan is to lower the cost of Iberpotash’s min- to the Internet. The performance of each plant and ing operations, increase its production of potash and salt products and At the time of project implementa- Integration at the top level did how individual plants are perform- improve its environmental footprint, ICL said. The first stage is planned tion, the existing system was not de- not take place until Dynea adopted ing in relation to each other can be chemanager-online.com/en/ to be completed in early 2014. signed for recipe handling and batch a corporate-wide ERP system in evaluated, resulting in improved op- tags/automation automation, was not easy to config- 2008. Until this time, different sites, erational insight.

chemanager-online.com/en Page 10 PRODUCTION CHEManager Europe 5/2011

Full Automation at Low Costs Reused Coriolis Flow Sensors and State of the Art Solution? Sure!

Benefits at a Lower Cost – The been fully automated. Additionally, it even turned out that the replace- downturn of global economy has not re- ment of the old transmitters was a duced the need for investing in process piece of cake. automation. It has, however, prompted “Terminals and sensors were the Mogens Joergensen same, and even the wiring was the creative thinking. The value and qual- Siemens same as before, so we simply re- ity of devices that would have been placed one transmitter by another to continuously monitor and control one,” Kilund said. The reason behind scrapped just a few years ago is now the oil flow from the oil vessel to the the easy replacement is the memory thoroughly evaluated. In some cases it spray vessels. This was the only way unit technology, storing all sensor turns out that all the benefits of a fully to ensure that the flow velocity was specific data in a Sensorprom. When not too high for the spray vessel and the transmitters were replaced, the automated system can be obtained at that the dosing was correct. Because Sensorprom memory units were lower efforts and lower costs, simply by the BASF requirements for precision simply moved from the old transmit- and traceability are very high, it is re- ter to the new one and all sensor upgrading of process instrumentation quired that the amount of oil pumped specific data thus transferred to the devices already in use. BASF in Ballerup into each vessel is exactly the same. new transmitter. As a result, sensor in Denmark has tested the concept and Previously, this was a manual opera- recalibration was avoided without tion, and the process therefore re- any loss of accuracy. With all sen- reduced their need for manpower. quired close monitoring and control sor specific data quickly and easily to ensure that the two spray vessels transferred to the new transmitter, Close Monitoring Required reached the same filling quantities at programming was made easier. exactly the same time. The new transmitters are of the At the BASF plant in Ballerup, Den- type Siflow FC070 and fully integrat- mark, two production lines have Reduced Need For Manpower ed in the Simatic S7 automation sys- recently been automated. The plant tem via an ET200M Profibus node. microencapsulates vitamins for use Out of the box thinking and a con- At a size of no more than 40 mm, in the food and beverage industry. tinuous dialogue with the operators Siflow FC070 perfectly matches the During the manufacturing process, about possible improved solutions Vitamin oil is pumped from the oil vessel into the spray vessels. The flow velocity is measured by use of a Coriolis flowmeter from Siemens. well renowned Simatic design fea- nature identical vitamin oil is mixed for the process, made Bo Kilund, tures. An even more important im- with antioxidants in an oil vessel. project manager for the automation provement is the fact that the users When the ingredients have been of the two lines, come to a new and “When we start an oil dosing quality, precision and traceability continuously transfer the actual flow of Siflow FC070 are experiencing the mixed, the oil is dosed into two unconventional conclusion. The right process, the operator selects the re- are continuously met. rate and the total amount of oil be- same interface consistency available spray vessels and is microencap- – and most cost-effective – solution quired pump velocity and the maxi- ing dosed to each of the two spray in the full scale and depth of Sie- sulated in a sugar-gelatin solution would keep the existing flow sensors mum flow rate,” Kilund explained. Insignificant Difference vessels to the PLC. mens instrumentation and control through an emulsion process. The but upgrade them with new trans- “If the flow exceeds the maximum The program sequence has a systems. With the fully integrated oil flow between the oil vessel and mitters and thereby achieving all the flow rate, the pump velocity is auto- “When we are dosing oil to the fast and a slow mode, which en- diagnosing system and the detailed the two spray vessels is measured benefits of an automated process. matically reduced by 1 % every five two spray vessels simultaneously, sures that the amount of oil dosed traceability of the dosing process, by use of two Coriolis mass flow Today, the two Coriolis mass flow seconds until the maximum flow the programming of the system is to the two spray vessels is exactly the operators’ possibilities of track- meters from Siemens. Then the mi- meters from Siemens still measure rate is no longer exceeded. The op- somewhat complex, but the only ad- the same. In the fast mode, the oil ing and resolving any problems that croencapsulated solution is dried in the flow of oil from the oil vessel to erator does not have to monitor the ditional matter the operators have is dosed with maximum flow rate might occur have been enhanced. In a traditional spray drying plant in a the spray vessels, while the need for process any longer.” to do is to enter the maximum al- and an allowed total difference be- this way, BASF has moved from an spray vessel. manpower has been significantly re- As a consequence, the need for lowed amount of oil into each spray tween the two vessels of up to 4 kg. analog to a digital state-of-the-art Before the automation of the lines duced, since manual process control manpower has been significantly vessel,” Kilund said. When the pro If this difference is exceeded, the solution and reduced the need for was implemented, an operator had is no longer required. reduced, while the requirements to cess is started, the new transmitters system automatically stops dosing manpower, without having to re- to the spray vessel with the highest place the Coriolis flow sensors. On totalized amount of oil, and will not top of this, Kilund estimates that restart until the filling quantities are BASF only uses about 10 % of the the same. When the amount of oil in potential benefits of Siflow FC070. the oil vessel reaches 50 kg, the slow mode is started. In this mode the difference between the two spray vessels must not exceed 1 kg. “We always end up with an insignificant difference between the two 22 Contact: spray vessels – and that is quite an Mogens Joergensen achievement as the initial amount of Siemens A/S Flow Instruments oil in the oil vessel lies between 1,200 Nordborg, Denmark and 1,400 kg. What is more important [email protected] is that we have released resources to other tasks. If any of the dosing parameters are exceeded, the system will send out an alarm message.”

State-Of-The-Art System Integration

The operators do not stand next to chemanager-online.com/en/ Siflow FC070 in the Simatic rack, fully integrated in the automation system over an ET200M Project manager Bo Kilund the line monitoring flow velocity and Profibus node. tags/automation dosing anymore, as the process has

IBIC Fuels Business Development TEPCO Aims for Cold Shutdown ABB Wins $58 Million Oil and Gas Order

IBIC, an international provider of mentation and electrical engineer- Tokyo Electric Power said it hoped cure a “cold shutdown” at the plant, ABB has won a $58 million order communications and remote opera- engineering services for plant con- ing for a new chemicals production to achieve a “cold shutdown” of a state in which the water cooling from QGC Pty Limited, a BG Group tion for the 540-km buried pipeline struction, has announced that it has plant. Six employees will work on its Fukushima Daiichi nuclear fuel rods is below 100°C and the re- business, to provide integrated auto- network that will transport gas to started several large projects in the this project from IBIC’s own offices plant in six to nine months. Within actors are considered stable. TEPCO, mation, safety and telecommunica- a liquefied natural gas processing first quarter of 2011. IBIC provides over a period of 15 months. The three months Tokyo Electric said it has been struggling to stabilize the tions systems and related equipment facility at Gladstone, Queensland. comprehensive consulting and en- SmartPlant Instrumentation and planned to cool reactors and spent Fukushima complex 240 km north for a new upstream coal seam gas The plant will initially produce 8.5 gineering services targeted to the SmartPlant Electrical applications fuel at the nuclear plant to a stable of Tokyo, which was seriously dam- project in Queensland, Australia. million metric tons of LNG a year. manufacturers and operators of will directly access the customer’s level and get radiation leaks on a aged by the March 11 earthquake ABB was appointed the main auto- The project will be commissioned power plants, refineries and chemi- server via a CITRIX data connec- downward trend. In another three to and tsunami and has been leaking mation contractor for the project. in several phases, with first deliv- cal/pharmaceutical plants. tion. six months, the company aims to se- radiation. J QGC’s Queensland Curtis LNG eries scheduled in 2011 through to IBIC has deployed seven staff A project manager of an IBIC cli- Project is one of Australia’s largest project completion in 2014. members to support a data conver- ent is satisfied with his choice: “In capital infrastructure projects. ABB’s sion project for a customer in the various engineering projects, IBIC delivery will optimize the efficiency chemical industry. This project in- has impressed us with its profession- of the upstream gas gathering and cludes the migration of 650 Piping alism, technical competence, project compression facilities, and provide J and Instrumentation Diagrams to management skills and international SmartPlant P&ID from its existing teamwork at a fair price.” PDS and AutoCAD systems. “We know how important it is For a power plant manufacturer, to listen closely to our customers KEPCO-Uhde JV in Coal Gasification IBIC will use the PDS software to and document their exact needs,” create 3D piping models and isomet- said Hans-Peter Beier, founder and KEPCO, the largest utility in South tion combined cycle) and synthetic ric drawings. This will help the cus- managing director at IBIC. “Based Korea, and Germany-based Uhde natural gas) engineering, licensing tomer reduce the environmental im- on that, we build a specialized have signed a joint venture agree- and technology development. KEP- pact of existing, conventional power project team which then delivers the ment in the field of coal gasification. CO-Uhde will be established in July plants. Four IBIC engineers will desired service in a precise, timely KEPCO will have a 66% share of the in Korea. The JV plans to win its first work on site with the client for over manner. Our clients know that they newly established joint venture, with contract within the fourth quarter a year to complete this project. can rely on us – and they value our Uhde holding 34 %. KEPCO-Uhde of this year. In another engineering project, dependability.” will use Uhde’s Prenflo PSG steam IBIC will create the necessary doc- gasification process to carry out glo- TEPCO’s Fukushima Daiichi nuclear plant. umentation in the areas of instru- J bal projects in integrated gasifica- J

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Wired No More AkzoNobel on Its Wireless Network at a Belgium Plant

Wireless Controls – Nicolas Del- Wiring Complications 62591 technology. This means that Previously, the company used once the network is commissioned manual gauges that required an fosse, Process Engineer Surface Chem- Initially the company considered the company can install devices operator to make regular trips into istry at AkzoNobel’s surfactants process- fieldbus for this application, but that from any vendor as required. The the field to take “snap-shot” read- ing plant in Belgium, explains why the approach would have incurred sig- company was also particularly im- ings. This was time-consuming and nificant cabling infrastructure costs, pressed by the number and range of failed to provide the continuous and lack of available I/O and high cable in- requiring trenches and cabling be- existing implementations of Smart immediate information the company frastructure costs have led the plant to tween the tanks and the control Wireless around the world. Emer- required. room over distances of 200 m. son’s experience was far in front of A total of ten Rosemount Wire- adopt a wireless network based on the Another major issue was the lack other vendors, and this experience lessHART pressure transmitters IEC 62591 (WirelessHART) standard. of available I/O in our control room. gave AkzoNobel great confidence have been installed to replace the Only a small amount was available, with its own application. gauges. Again, by automating the and with future modifications and measurements, the company has im- Evolving government legislation, additional measurement points Smart Wireless Solutions proved the efficiency of its operators tight corporate environmental planned, the company did not want by enabling them to focus on higher guidelines and a very competitive to use it all for this project. Four of Emerson’s Rosemount Wire- value tasks. The continuous pressure marketplace mean that AkzoNobel One option was to modify the ex- lessHART temperature transmitters data the company are now receiving is continually looking to improve isting DCS system and control room, have been installed so far to control has enabled us to identify blockages production processes. One way of but this would be expensive and also the temperature of a number of the immediately, and the company solve achieving this is to gain a better created the risk of the control sys- storage tanks. From these devices, this quickly by flushing the vents. understanding of each individual tem being brought offline for a pe- measurement data is transmitted A third application presented itself process by increasing the number of riod of time. In addition, there was every minute to a wireless gateway almost immediately. It had become measurement points as well as auto- not enough room for the additional and is then integrated into the exist- apparent that additional thermal mating existing measurements. This cabinets required. The combined cost ing DCS. The DCS then automatically measurements were required from desire for new and more detailed in- of the cable infrastructure and the re- controls a simple On/Off steam valve within the venting conduits. This information has to be balanced against quired DCS changes made the project that heats the tanks. formation would be used to prevent the cost of adding the new measure- unfeasible if the company were to The temperature of the tanks can potential fires arising from the high ment devices themselves and, just as adopt any form of wired solution. now be maintained using this wire- temperatures. In this application, an important issue was the short time- frame available to install the new devices to obtain these additional measurements. The company was keen to do so before the next government inspection, which would have been very difficult to achieve if we had proceeded with a wired solution. The established WirelessHART network enabled them to install three Rosemount WirelessHART temperature transmitters quickly and easily. These devices provide us with the required temperature information and will raise an alert in the control room should levels rise above preset limits. Adding devices is so simple that one could describe the Emerson Smart Wireless solution as “plug and play.” Once the devices are in place, they quickly connect with the network and operators can view data almost immediately.

Results And Future Applications

AkzoNobel estimates overall savings from adopting a wireless solution instead of installing cabling and making changes to the DCS to be approximately €180,000. Because of the success of the initial applications, importantly, the infrastructure that Wireless Options less closed-loop control, enabling the company intends to upgrade the integrates this data into the existing us to ensure that the final product temperature gauges on all 40 stor- distributed control system (DCS). AkzoNobel identified wireless as the is delivered within the appropriate age tanks. AkzoNobel’s surface chemistry perfect alternative solution. Adopting temperature parameters. By auto- The company is now also con- plant in Ghlin (Mons), Belgium, a wireless solution would eradicate mating this process, the company sidering a number of other applica- produces fatty nitriles and amines, the need for digging trenches and removed the requirement for the tions at the Mons site. New legisla- which are stored in 40 tanks in the installing cable trays to house the operator to go into the field and tion requires redundant automated tank farm area of the plant before new power and data cables. Equally manually operate the steam valve level monitoring technologies to be they are shipped to customers. important, the data from the wire- to get the desired result. This has applied to ensure against overfill- When loading final product into less transmitters could be fed via a allowed the operator to focus on ing. They plan to make use of the road tankers, it is imperative that the gateway directly into the existing higher value tasks. wireless network again when im- fatty nitriles and amines are main- DCS without consuming any I/O. AkzoNobel also gained much plementing Emerson’s Rosemount tained within specific temperature The company also recognized tighter control over the amount of wireless vibrating forks that will parameters. Too cold and the prod- that wireless offered benefits be- steam used. Although they have yet to identify levels in tanks to help pro- ucts are difficult to handle; too hot yond this first project, especially calculate the impact of this improve- vide overspill protection. and the quality of the products can the ability to expand the network by ment over a long period, they know Another application being consid- be affected. Steam is used to heat the adding new devices quickly and at that there is a significant reduction in ered is a drain switch system on the tanks, usually starting a few days be- little cost compared to wired devic- steam consumption, which will create gas venting line. Here wireless vibrat- fore a load is due to be collected. es. With a continuous programme of a saving on their operating costs. ing forks will be used to monitor con- The perfect formula for Previously, this task required one process improvement at the plant, densate levels in the venting system. of the company’s operators to manu- the company anticipated that more Expanding The Wireless Network When these reach a certain level the your process automation. ally open a steam valve to begin the devices would be added at some vents will be drained automatically. heating process. No existing tem- point in the near future. Implement- A second application for automating The company is even consider- perature measurement devices were ing a wireless network now would pressure monitoring on the compa- ing the possibility of using wireless in place on the tanks; the company create an opportunity for installa- ny’s venting system would also have to help us monitor the position of merely used operator experience to tion savings every time a device was required new cable infrastructure existing process valves. To ensure Endress+Hauser is an internationally leading supplier of rugged and reliable determine when to start heating. added in the future. to be installed. This application was against tank filling errors, the com- field instrumentation for the chemical industry. With our close contacts The company then took manual A number of wireless options necessary to meet their corporate pany would like to bring currently formed over many years, we have the know-how to develop safe solutions and temperature readings at the main were considered, but the company guidelines and new local environ- unavailable position information groundbreaking concepts required for the complete life cycle of your process. outlet valve, if the product was too was keen to adopt an open standard mental legislation requiring chemi- from a number of manual valves This enables us to reduce your operational expenses (OPEX) by offering a hot the steam valve would be closed; technology that would not tie them cal processing companies to monitor into our DCS. Here, Emerson’s wire- comprehensive servicing and engineering portfolio. However extensive the if the product then cooled too much to a single vendor. This would en- and control all gas emissions. less position monitor will forward specific requirements for your company are, we have the perfect formula for your process automation needs. See more at www.endress.com/chemistry. the valve would be opened and heat- able multi-vendor installations, se- Ammonia gasses and organic the stranded position information. ing restarted. lecting the best instruments for each vapors are produced from the fatty This manual control was unsatis- measurement task. The approval of nitriles and amines stored within the 22 Contact: factory, and a number of customers IEC 62591 (WirelessHART) by the tanks. These gasses are collected via Nicolas Delfosse complained that the delivered product International Electrotechnical Com- a venting network and then inciner- AkzoNobel Surface Chemistry Europe Endress+Hauser Instruments International AG was too hot. AkzoNobel was therefore mission (IEC) gave the company the ated. In addition, gasses are collect- Ghlin (Mons), Belgium Kaegenstrasse 2 very keen to automate this process confidence to adopt this interna- ed via the same vent network from www.akzonobel.com 4153 Reinach/BL1 Switzerland by introducing a simple closed-loop tional wireless standard. large basins that hold storm water Phone +41 61 715 81 00 heating control. However, the com- AkzoNobel selected Emerson and process water. To identify any Fax +41 61 715 25 00 [email protected] pany faced a number of challenges Process Management’s Smart Wire- blockages in these vents, pressure www.endress.com to doing so, including a lack of cable less solution for these applications is monitored, with any drops below chemanager-online.com/en/ infrastructure, a lack of available I/O, for a number of reasons. Emerson’s the level of atmospheric pressure tags/automation and tight budget constraints. Smart Wireless is based on IEC indicating a potential problem.

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Biobased Packaging – A Long-Term Trend Bioplastic Materials, Applications and Products Multiply

Forging New Ground – Europe- With a growing number of materials, applications and products, the an supermarkets – Sainsbury’s in the number of manufacturers, convert- UK or Albert Heijn in the Netherlands ers and end-users increases stead- – may be cited as pioneers, being the ily. Significant financial investments have been made in production and first to recognize the opportunities for marketing to guide and accompany bioplastics packaging. At the begin- this development. ning of their market introduction, the Bioplastics – a Family of Materials focus was on materials and products made from biodegradable polymers. There are a multitude of applications – ranging from beverage bottles in The range of bioplastic materials used the packaging segment to keyboards in the European packaging market in the consumer electronics segment – depending on the application dif- today is much broader now. The poly- ferent types of bioplastics are pro mers used for diverse applications can cessed in these products. Bioplastics Other known brand owners such as be biobased, biodegradable or both. are not a single kind of polymer but Coca-Cola, Heinz, Procter and Gam- rather a family of materials that can ble, PepsiCo and Tetra Pak either The type of bioplastic material utilized vary considerably from one another. already have bioplastic-products in depends on the application. There are three groups in the bio- the market, or have announced cor- plastics family, each with its own in- responding plans. dividual characteristics. These include fully or partly Challenges for Bioplastics in Packaging biobased commodity plastics such as PE, PET or PVC, and soon PP Even if bioplastics’ growth rates in (drop-in solutions); new polymers the packaging market are clearly Hasso von Pogrell that are biobased and biodegrad- above average, there are still a few managing director, able, including PLA and PHA; and challenges to be met before a full European Bioplastics new polymers that are based on fos- market penetration is in place. Costs sil resources and are biodegradable, Biobased polyethylene made by the Brazilian plastics company Braskem. for research and development still such as PBAT or PBS. make up for an important share About 250 million tons of plastics are Biobased or partly biobased com- biobased or partly biobased com- rials offer additional disposal options Bioplastics today are a sound of investments within the field of produced annually. Bioplastics today modity polymers (drop-in solutions) modity plastics will contribute deci- such as composting for e.g. food alternative to conventional plastic bioplastics and, therefore, have an still account for a share well below today feature identical properties sively to the growing segment of bio- packaging or catering products. packaging solutions. From yogurt impact on product prices. The price 1 %. However, the current market is as their conventional versions. Bio- plastic materials within packaging. cups and bottles to cosmetic packag- difference between conventional characterized by high growth and degradability of polymers is directly Packaging Market – ing and shopping bags, the market plastic products and applications strong diversification. There are linked to the chemical structure, not Bioplastic Materials and the Environment A Pioneer Sector for Bioplastics penetration of bioplastic products in made of bioplastics is one challenge numerous industry internal and ex- to the origin of the raw materials. Un- the packaging market is well ahead to be met. Further development re- ternal factors that further encour- der specific conditions (e.g. controlled The reasons for the growing de- The bioplastics industry is continu- of other sectors. garding technical properties is also age the growth of the bioplastics temperature, humidity, aeration) bio- mand of biobased plastics is ob- ously growing – about 20 % annu- Recently, big brand owners have needed, as some materials do not industry. degradable plastic products can be vious: The use of renewable really. Its dynamic development is es- introduced established products meet all technical property demands composted in industrial composting sources by the industry can reduce for certain applications, yet. A third

Industry internal factors are among plants. In order to be processed this the amount of greenhouse gas CO2 barrier to overcome is the availabil- others: way, these polymers need to be certi- emissions. In biobased commodity “Biobased or partly biobased commodity plastics ity of materials on a large scale. ▪▪ Advanced technical properties fied and labeled as compostable. plastic products, biological carbon will contribute decisively to the growing segment and functionality Bioplastic packaging demand is can be sequestered over the span of of bioplastic materials within packaging.” Hasso von Pogrell, managing ▪▪ Potential for cost reduction forecast to grow at a high rate over a product’s useful life. This not only director, European Bioplastics through economy of scale the next five to ten years. Especially results in carbon being extracted ▪▪ Cost-efficient new recycling and saved from the atmosphere, pecially obvious in the packaging with new bioplastic packaging. 22 Contact: option in case of biodegradable but also in high-value, exportable sector, where bioplastics trends Danone for example is to date the European Bioplastics e.V. products Interpack 2011 products being manufactured. often are applied for the first time. only big brand owner in Europe with Berlin, Germany Moreover, taking into account the Bioplastics were introduced to the several bioplastic packaging options Tel.: +49 30 28 48 23 50 Among the industry external mar- Visit European Bioplastics at the Inter- EU’s limited crude oil and natural packaging market about two dec- in the market. They are even using Fax: +49 30 28 48 23 59 ket factors, European Bioplastics pack 2011 in Düsseldorf, Germany, May gas resources, the increased indus- ades ago. The variety of bioplastic different materials: [email protected] counts: 12–18. Several speakers of the industry’s trial use of biomass will be indis- materials used has since increased ▪▪ They are relying on a biobased www.european-bioplastics.org ▪▪ High consumer acceptance leading companies will share their ex- pensable in the mid-term. decisively. Simultaneously, the prop- PE-bottle in the French market ▪▪ Societal concerns about climate pertise and showcase latest develop- However, the use of biodegrad- erties of these bioplastic materials for their product Actimel. ▪ change ments and products at the European able polymers in short-life consumer have been optimized, for example ▪ They recently introduced bioplas- chemanager-online.com/en/ ▪ ▪ Price increase of fossil resources Bioplastics stand 9E02. goods and disposables can also be printability, transparency, barrier, tic cups made from PLA for the tags/bioplastics ▪▪ Dependence on fossil resources advantageous: Biodegradable mate- and gloss. yogurt brand Activia in Germany.

AkzoNobel to Restructure and Split ICI Pakistan Brenntag Expands Cooperation with

AkzoNobel has announced its in- stan Limited) through a de-merger Islamabad Stock Exchanges, with Lanxess Rubber Chemicals tention to seek agreement from process approved by the Pakistani AkzoNobel currently holding 75.8 the board and shareholders of ICI courts. Subsequently, AkzoNobel percent of the total shares. Focus- Brenntag has been appointed as dis- aly, Benelux and Scandinavia where Vulkalent, Vulkasil, Cohedur, Perka- Pakistan Limited to separate the would dispose of its entire sharehold- ing primarily on the Pakistan mar- tributor for Lanxess rubber chemi- Brenntag is active for Lanxess. In link 900 and Vulcuren. These chemi- organization’s paints and chemi- ing in the remainder of ICI Pakistan. ket, ICI Pakistan’s main businesses cals on the Iberian Peninsula. This addition to polymers, the product cals are used for example in the cals businesses. Under the terms The entire ICI Pakistan business has are polyester fiber, soda ash, life expansion of the cooperation be- portfolio of the national subsidiaries production of tires, shoes, household of the proposal, AkzoNobel would been a subsidiary of AkzoNobel since sciences, chemicals and decorative tween the specialty chemicals man- now also features innovative high- appliances and in the automotive in- retain direct majority control of the 2008, when the company acquired paints. In 2010, ICI Pakistan’s rev- ufacturer Lanxess and Brenntag tech specialty chemicals for rubber dustry. paints business by separating it into Imperial Chemical Industries PLC. It enue amounted to €305 million. adds France, Spain and Portugal to and latex, including well-known a new legal entity (AkzoNobel Paki- is listed on the Karachi, Lahore and J the group of countries including It- brands such as Vulkanox, Vulkacit, J

Styron to Change Name to Trinseo

Styron, a global materials company ron is strongly tied to the styrenics or lying within a given part. The root India’s Aditya Birla Buys Chemicals Unit for $187 Million spun out from Dow Chemicals in chain – particularly polystyrene and of “trins” is combined with “eo,” the June 2010, has announced plans to styrene monomer, which are an im- Latin verb root meaning “to go”. The India’s diversified Aditya Birla cals division of Kanoria Chemicals March 31, the statement said. The change its company name to Trinseo. portant part of our company – but company said that the name Trinseo Group said it has acquired a unit to boost its production capacity, the deal will make Aditya Birla Group The name change will be fully effec- we are much more than that. Our also captures the vital role that Sty- of local chemicals maker Kanoria company said in a statement. Rev- the country’s largest producer of tive in all countries later in 2011; the new name of Trinseo will communi- ron people play in collaborating with Chemicals & Industries for 8.30 enue for Kanoria’s chloro chemicals chlor-alkali, a critical input in the company will continue to do busi- cate that we are leaders in a broad- our customers to enable their next billion rupees ($187 million) in an division, which makes chlor-alkalis, aluminium sector, the group’s Chair- ness as Styron until that time. er range of businesses, products and generation of products. The compa- all-cash deal. Aditya Birla Chemi- chlorine derivatives and water treat- man Kumar Mangalam Birla said in “We believe that the new name technologies, and it underscores our ny will maintain the arrow icon in its cals (India), a unit of Aditya Birla ment chemicals, was at 3.03 billion a statement. of Trinseo will position the company commitment to growth.” current logo, along with its current Group, will buy the chloro chemi- rupees for the year that ended on J better for future growth and greater According to the company, word color palette and company tagline of potential as a global materials com- Trinseo comes from “intrinsic,“ “Powering Ideas.” The Styron brand pany,” said Chris Pappas, president which means belonging to a thing will continue to be used as a trade and CEO of Styron. “The name Sty- by its very nature, or belonging to name for polystyrene products. J Momentive Sells North American Composites and Coatings Business Rhone to Buy Carbon Black for €900 Million Momentive Specialty Chemicals and operations in specialty chemicals, includes manufacturing locations in Financial investor Rhone Group has used to make tires more durable. It is mand in Asia. Evonik, which said last PCCR USA have signed a definitive resins and intermediates. Terms of Carpentersville, Ennis, Texas; Forest bought Carbon Black unit of unlisted also used for laser printers and pho- year that it has hired an investment agreement for Momentive to sell the agreement were not disclosed. Park, Ga.; and Lynwood, Calif. The German chemical maker Evonik for tocopier toners. Market researcher bank to manage the sale of the unit, its North American composites and The transaction is subject to cus- business had 2010 sales of approx- €900 million. Carbon Black was orig- Freedonia expects the global Carbon has said it plans to use the proceeds coating resins business to PCCR tomary conditions including gov- imately $230 million and employs inally derived from soot, and more Black market to rise 4.3% per year to expand its core specialty chemi- USA, a subsidiary of Investindustrial, ernmental reviews. The Momentive 225 people, who it is anticipated will than 60% of world’s production is until 2013, driven mainly by tire de- cals business. J a European investment group with business to be purchased by PCCR join PCCR at closing. J

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Asia’s Future Bioplastics Hub Thailand Has All the Trappings to Become a Global Player

Boom Region – In 2011, the markets for bio-based materials are continuing to develop dynamically (with annual growth rates of 15–30 %). It is estimated that a global production capacity for bio-based products of 700,000–800,000 tons per year was established by end of 2010. Within these scenarios Asia is going to develop as a key region for bioplastics – Asia is predicted to serve 25 % of the world demand for bio-based materials in 2020. bioplastics has significantly grown at industry, retailer and consumer level. Thailand is therefore expected to develop as the future alternative hub for global bioethanol/bio-based Dr. Wolfgang Baltus resin production, complementary to CIM Expert for Bioplastic/ Brazil. Rubber, National Innova- However, raw materials costs tion Agency (Thailand) represent 40-60 % (and more) of the production costs for certain bioplastics like PLA or PBS. A concern for General Situation for ▪▪ Purac is currently building a ▪▪ Italian leading starch-bio plastic well-established with more than The enhancement of the roadmap bioplastic producing companies is to Bio-Based Materials in Asia 75,000 tons per year lactide plant producer Novamont extended 3,000 companies. from 2011 to 2015 is extending the be able to produce these bioplastics in Thailand, which expected to be its distribution network in Asia Thailand’s location in Asia, in activities by financial supporting in an economically feasible way. Many countries in Asia are currently operational in Q4 of 2011. by selecting Thai bag producer particular its proximity to China, is the implementation and operation intensifying their efforts to push bio- ▪▪ Singapore-based Indorama Ven- Tantawan as local partner. also of strategic importance. China of a bio resin pilot plant with a ca- Other Factors based products into their economies tures and Purac are in discus- ▪▪ International companies such as is seen as having the largest future pacity between 1,000–10,000 tons/ in search of biomass-resource ori- sions to set up a polylactic acid BASF or Uhde Inventa Fischer customer potential. Also, Japan as year as well. The main resins in fo- The price for fossil crude oil has ented, sustainable solutions. (PLA) manufacturing facility in are interested in further en- one of the most developed bio-based cus for pilot or commercial plants reached high levels of more than For Asian countries, a suitable Thailand. gagements in terms of bio-based/ countries in Asia, has long-term re- are lactic acid/PLA and succinic $110/barrel at the beginning of 2011 waste management solution is man- ▪▪ Braskem’s bio-based polyeth- biodegradable products for this lationships with Thailand. acid/PBS. and is predicted to further increase datory to avoid future environmen- ylene (PE) plant, producing PE region. Thailand is one of few countries to $150/barrel by the middle of the tal burdens for the societies: Asia is from sugar cane bioethanol with in the world that has introduced Benefits of Thailand as an Industrial Location year. Unfortunately, the sugar and home to 60 % of the world popula- a 200,000 tons nominal produc- The announced activities would policy measures for bioplastics to starch fermentation industry has tion, creating demands for food and tion capacity, went operative in add further 400,000–500,000 tons support sustainable bio-based in- Incentives provided by the Thai been strongly hit by deceases and materials, including end-of-life op- Brazil in October 2010. Toyota is of bio-based resins to the projected novations for future of the country. Board of Investments (BOI) include a climate effects (droughts) in 2010 as tions for a high level of lifestyle. intending to act as resin distribu- bioplastic production capacity in the These policy measures are created cooperate tax holiday of eight years well, which has caused high prices The initial driving factor for in- tor for Braskem and announced Asian region. The main application along a National Roadmap for bio- (following a 50 % reduction of tax for these commodities and has troducing bio-based plastics into further collaboration with local for bioplastics in Asia is still seen in plastics, which was endorsed by the for the next five years), reduction equalized the market push effect of the domestic Asian markets is still producers to utilize bioethanol the packaging sector, with 40–50 % Thai government in 2008. The im- on import tax on raw materials and the high oil price at present. How- the biodegradability aspect. In many from Brazil, targeting to produce market share. plementation of this roadmap was machinery and the access to domes- ever, if Thailand is able to achieve Asian countries like India, China, bio-PET. assigned to the National Innovation tic feedstock at export (parity) price all of the planned measures, the Malaysia or Bhutan, conventional ▪▪ PTT, the leading Thai oil and Thailand – a Potential Agency (NIA) at the same time. level. country’s future vision to be the plastic bag bans or fees have been gas company, bought stakes of Bioplastic Hub in Southeast Asia? The main targets of these meas- The domestic market for bioplas- bioplastic hub of Southeast-Asia is set in place in 2010/2011. the U.S.-based biotech company ures include: tics in Thailand, based on volume, within reach. Thailand doesn’t charge for Myriant, intending to collaborate Thailand’s main advantages to be- ▪▪ to realize sufficient supply of is currently low (estimated around plastic bags in supermarkets: 350 on succinic acid research and come the future bioplastic hub in biomass for raw materials for 1,000 tons/year). Development of the 22 Contact: million plastic bags are disposed production. Southeast Asia are evident: The the production of bio-based domestic market is one of the main Dr. Wolfgang Baltus in Thailand every day, requesting ▪▪ PTT and Mitsubishi Chemicals country boasts abundant sugar- and plastics; reasons for the pilot plant strategy National Innovation Agency proper waste management for such announced they will form a joint starch-based feedstock at competi- ▪▪ to stimulate and promote tech- of the Thai government. Bangkok, Thailand materials including the handling of venture in Thailand to produce tive prices. A versatile fermentation nology development for bio- The market volume for bio resins Tel. : +66 26446000 (wet) organic wastes (because shop- polybutylenesuccinate (PBS). industry for organic acids e.g. for based plastics and national and/ in Thailand could be optimistically [email protected] ping bags are often used as waste The bio-based succinic acid for lactic acid (Purac), glutamic acid or international; estimated between 15,000-40,000 www.nia.or.th bags). Food waste contributes up PBS will most likely come from (Akinomoto), citric acid (Worldbest) ▪▪ to build up new innovative indus- tons in the next 10 years. The NIA to 60 % to the total local municipal a future production facility in or for bioethanol is already in place. tries and businesses; and has supported and funded many waste in Asian countries. Thailand, based on Bioamber/ A well-developed chemical industry ▪▪ to establish a supportive infra- innovation projects during the first In 2010 many new investments Mitsubishi technology. is also able to support the produc- structure along the value chain years of operation including policy ▪ with a focus on Asia were initiated, ▪ Naturworks LLC has chosen tion of bio-based materials like PLA, for bio-based plastics, including building and waste management chemanager-online.com/en/ which are expected to be going to be Southeast-Asia as site for a po- PBS or bio-based PET (Indorama). government policies and end-of- projects trials. As important result tags/bioplastics realized in the upcoming years: tential second PLA plant. The plastic industry in Thailand is life strategies. of the activities, the awareness for

Where Will fotolia.com / this summer

We know where we’re going — all over europe, covering the industry’s most important gatherings. We are looking forward to seeing you at these events:

▪▪ June 6 – 8: FECC Annual Congress 2011 in Vienna

▪▪ June 6 – 8: CESIO 2011 – 8th World Surfactant Congress in Vienna Publishing Manager Dr. Michael Reubold ▪▪ June 15 –16: Chemspec Europe in Geneva Tel.: +49 6151 8090 236 [email protected]

Do you have a story to tell? Or just want to find out more about Editor-in-Chief Brandi Schuster what CHEManager Europe and CHEManager have to offer? Tel.: +49 6151 8090 151 Then just drop us a line – we’d love to hear from you. [email protected] Editor Media Consultant Dr. Birgit Megges Corinna Matz-Grund Tel.: +49 9617 448250 Tel.: +49 6151 8090 217 [email protected] [email protected] www.gitverlag.com

chemanager-online.com/en Page 14 CHEMICALS CHEManager Europe 5/2011

The First Step to Sustainable Composites Unsaturated Polyester from Renewable Resources

Going Green – The global rise in tions within the building, marine to create sheet molding compounds (1720 BTUs/lb) less energy during and transportation markets. (SMC). This enabled John Deere to manufacture than a comparable environmental awareness has encour- realize its desire to have composite 100 % petrochemical resin. The cal- aged the use of more renewable ma- Shift From Traditional Materials parts for tractors made from ag- culation takes into account the en- terials. Composite materials represent riculture products. The resin also ergy consumed in manufacturing as More have come to believe that rely- delivered the same performance as well as by farming and processing one area that presents challenges – but ing solely only on petroleum-based a 100 % petroleum-based product. soy and corn into oil and ethanol, also opportunities – for using sustain- materials is not a tenable practice. When Envirez 1807 resin was first respectively. Thus, compared to the One area that is experiencing a shift introduced, it contained 18 % renew- petrochemical resin, Envirez 1807 able materials. Market drivers such as from traditional materials is com- ably sourced materials. resin requires approximately 22 sustainability programs, environmen- mercial and residential construc- Ashland continues to develop fewer barrels of crude oil to be ex- tal health and safety requirements and tion. Green building programs strive the Envirez resin range and has tracted from the ground per stand- to provide an energy efficient en- grown the product range to include ard (40,000 pound) batch. In ad- “green” building programs are creat- vironment, improve environmental several different applications in the dition, the study demonstrated the ing an incentive to develop bio-based quality for inhabitants and reduce building, marine and transporta- global warming potential impact for impact on surroundings. Buildings tion industries. Research continues Envirez 1807 resin. When compared composite products that also produce receiving a “green” des- to develop polyester resins having to the petrochemical resin, a stand- fewer emissions during different life- ignation are third-party ever-increasing renewable content. ard batch of Envirez resin eliminates Web Tip cycle phases. certified through an es- Several new raw-material oppor- approximately 18,000 kilograms of tablished rating system. At the Ashland-developed website, tunities are also being explored. In CO2 from being released. The rating systems most Europe, Ashland has developed its As the interest in moving to a www.CompositeBuild.com, building pro- One of the earliest notable efforts used are LEED (Leader- Envirez resin product range to in- more sustainable approach in man- fessionals can find information and launched in 2003, when John Deere ship in Energy and En- clude eight different products for ap- ufacturing, building or any aspect of suppliers of composite products used Corporation began producing side vironmental Design) in plications that include hand lay-up, life increase, savvy manufacturers in commercial and residential buildings. body panels for their equipment the U.S.; BREEAM (BRE spraying, pultrusion, solid surface, are adapting and delivering technol- using Ashland’s Envirez polyester Environmental Assess- cast marble, infusion and continu- ogies to meet this demand. Compos- resins. These resins are formulated ment Method) in the U.K.; DGNB ous lamination. Bio content in these ites represent just one aspect of this using renewable and/or recycla- (German Sustainable Building resins can vary from 13–22 %. environment-focused movement. ble raw materials and support the Council) in Germany; and several better occupancy rates and higher How to Make Polyester manufacture of more sustainable other national systems. More infor- lease rates, employee wellness and From Renewable Resources Environmental Benefits of 22 Contact: composite products. Envirez polyes- mation can be found through www. productivity, and lower operat- Using Resins from Renewable Resources Tuula Mannermaa ter resins deliver reduced environ- worldgbc.com pages, including links ing costs. Also investors get better In the late 1990s, Ashland, in co- Ashland Finland Oy mental impact, with lower carbon to national systems. value for the buildings. Composites operation with the United Soybean In collaboration with the United Soy- Porvoo, Finland dioxide emissions and a diminished As an example, LEED was cre- can become connected to LEED cer- Board and John Deere, began work bean Board, Ashland also supported Tel.: +358 9 228 42 322 dependence on crude oil. These res- ated in 1998 by the U.S. Green Build- tification as products or materials to develop the first commercially a third-party life cycle assessment of [email protected] ins meet the same performance and ing Council. Today, federal agencies, made with rapidly renewable and/or viable bio-based resins. Ashland re- the original Envirez 1807 resin and www.ashland.com processing requirements as petro- states and cities require public build- recycled materials. These products, searchers created a polyester resin a comparable petrochemical-based leum-based UPR products and are ings to be LEED certified. Among when used in building construction, based, in part, on soybean oil and resin. The 2009 report, by Omni chemanager-online.com/en/ commercially available in a wide the benefits from this program are fit in the Materials & Resources cat- corn ethanol. This became the Envi- Tech International, showed Envi- tags/composites variety of processes and applica- responsible image, tax benefits, egory for the program. rez 1807 resin, which was first used rez 1807 resin consumes 4.0 MJ/kg

Like A Virgin How PLA Waste Can Be Converted into New Raw Material

Bright Future – Still marginally more, the recycled lactic acid may fraction from domestic streams. robust and able to handle a large also be used in a wide range of other A study published in June scope of contaminants. However, present in the global plastic produc- industrial applications such as sol- 2008 by the WRAP (Waste PLA formulations are becoming in- tion, bioplastics are nevertheless ex- vents and detergents. & Resources Action Pro- creasingly more complex requiring periencing a rapid growth. Among gram) in England indi- occasional adaptations of the recy- Practical Aspects cated that such cling procedures. them, polylactide (PLA) is predicted NIR equip- to have a bright future as new produc- Concretely, PLA waste comes in all ment could Environmental Impact kinds of shapes and sizes: Size re- achieve a pu- tion units are being built worldwide. duction is usually the first mechani- rity of 97 % at From a LCA’s perspective, recover- This increased availability will how- cal conversion needed to guarantee a throughput of ing the material (instead of burn- ever bring the focus on end-of-life op- that input streams are rather ho- 3mT/h. Inciden- ing or composting it) has a tremen- mogeneous. The recycling process tally, this purity dous impact, since further land tions. Chemical recycling is adding to is designed to be as flexible as pos- use is avoided. The percentage of the current possibilities: it is a thermal PLA content in the waste mass is however a predominant factor. If depolymerization of PLA waste from the waste does contain a high per- which a highly purified lactic fraction centage of organic waste with a is recovered and reused in a cradle-to- dropped to 94 % for the PET frac- relatively low PLA content, other tion. options like composting should be cradle cycle. The question is thus not a tech- considered. A PLA content of more nical one but a financial one, as than 75–80 % is required for chemi- Technical Background low volumes of PLA waste can be cal recycling. presently retrieved from domestic Compared to the (avoided) pro- Chemical recycling is a closed loop streams. How- duction of crops, sugar extraction where the used PLA is recovered ever, these and conversion into lactic acid, and recycled back into its original volumes are on chemical recycling not only reform, lactic acid. Lactic acid is a the rise in light quires a fraction of the electricity chiral molecule and has two optical of the ongoing re- and steam previously needed but isomers. One is known as L(+) lactic search that broadens also considerably reduces the use of acid and the other, its mirror image, sible, allowing the broadest range of the scope of possible PLA water. This guarantees the economi- is D(−) Lactic. L(+) Lactic acid is the PLA waste to be recycled. In almost applications. cal viability of such recycling model, biologically important isomer. all cases, physical impurities, addi- As an intermediary step between as the recycled lactic acid costs may During the polymerization and tives, colors and other possible con- industrial and consumer waste not exceed the manufacturing of a the production of the original prod- taminants are effectively chemically streams, partnerships are con- virgin grade. uct, the treatment generates a ra- separated from the useful material cluded with cities or event organ- cemization of the lactic acid. If PLA to be converted. izers to collect PLA waste that is is mainly made of L(+) lactic acid, Currently, the industry generates locally generated during a specific Steve DeJonghe, project manager, only a small quantity of D(−) lactic the largest stream of PLA waste. Be- event (e.g. cups during a music fes- and Jonathan Willocq, will remain in the final product. cause of the sources (out-of-specifi- tival or sport competition, carpets process development manager, Generally speaking, the isomeric cation material, trial runs, start-up in exhibition centers, etc.). In this Galactic fraction of the incoming PLA waste procedures, trimmings, etc.) the © ink tear - Fotolia.com case, some limited contamination will be found in similar proportions material flow is generally very clean can be expected – usually food and in the resulting lactic acid. and does not need specific sorting. drinks. This is also an opportunity 22 Contact: Galactic has developed a process Possible contaminants can also be to educate end consumers on bio- Galactic in order to reach a high L polymer easily identified. plastics and their related end-of- Escanaffles, Belgium grade of lactic acid, suitable for the Wastes from domestic streams life options. Tel.: +32 69 45 29 63 manufacturing of virgin PLA grades. are by far the most complex sce- Fax: +32 69 45 22 97 It is therefore impossible to make a nario. Increasing numbers of PLA- Current Situation www.loopla.org distinction between an end product made products will understandably made from virgin lactic acid and impact mixed waste streams. But Galactic’s PLA recycling unit is lo- another one obtained from recycled technical solutions are already avail- cated in Escanaffles, Belgium, where chemanager-online.com/en/ source, hence the “cradle-to-cradle” able today: Near-infrared equipment 2,000 tons of waste material can tags/PLA claim (no downcycling). Further- (NIR) can effectively remove a PLA be treated annually. The process is

chemanager-online.com/en CHEManager Europe 5/2011 PEOPLE · EVENTS · AWARDS Page 15

DuPont Tops List of ‘Best Places to Work’

The Scientist has named Du- all. The company secured 689 new Pont as the No. 1 “Best Place to patents and successfully commer- Work” among large companies in cialized more than 1,700 new prod- the magazine’s ninth annual sur- ucts in 2010. DuPont Pioneer was vey. Editors at The Scientist noted, awarded second place among large “By forging new relationships and companies and 12th overall. Editors finding novel uses for existing tech- noted their ability to “establish re- nologies, the companies topping this lationships with international com- year’s survey are employing creative panies to exchange ideas and prod- ways to advance science and expand ucts to make their operations more FECC Annual Congress 2011 – June 6–8, Vienna The FECC Annual Congress their markets.” efficient and promote advancement Albert Von Hebel Appointed Member BYK-Chemie Manage- is one of the most important dates in the European chemical industry’s DuPont ranked No. 1 among top in science.” ment Team Albert von Hebel has succeeded Gerd Büscher calendar. Hundreds of delegates, from business leaders to stakeholders, large companies and 10th over- J as managing director of BYK-Chemie as of April. In his attend every year. The FECC Annual Congress is the first choice for lead- new role, he is responsible for the areas of finance, con- ers from the chemical distribution industry for networking to generate trolling, purchasing, IT, integrated management systems, new business and reinforce existing relationships, while also learning Call for Nominees for 2011 HART and general administration. Von Hebel was employed in new methods to improve their performance. a variety of roles in commercial departments of the com- 22 www.fecc-congress.com Plant of the Year Award panies within the Altana Group. In 1996, he moved to BYK-Chemie. For the last four years, von Hebel has been head of finance & controlling at HART Communication Foundation ents include MOL Danube (Hunga- Altana. Büscher is retiring in May. CESIO 2011 – 8th World Surfactant Congress and Business Convention, June is seeking qualified nominees for ry), Mitsubishi Chemical (Japan), 6–8, Vienna The CESIO 2011 will be the opportunity to meet and exchange the 10th annual HART Plant of the PDVSA Petropiar (Venezuela), Sta- Dr. Günter Bachlechner designated Head of Research at Bayer with colleagues, customers and business partners from all over the world. Year Award. End users and manu- toilHydro (Norway), Sasol Solvents Technology Services Dr. Günter Bachlechner is to be ap- Sessions, posters and exhibitions will cover the scientific, economic, tech- facturers from all world areas are (South Africa), Clariant (Germany), pointed the new head of Research at Bayer Technology nical as well as safety and regulatory aspects of surfactants and their encouraged to enter their plant or and DuPont (U.S.). Services (BTS). Bachlechner, currently head of Research industrial and consumer applications. customer’s plant for recognition. The HART Communication Foun- Technologies at Bayer CropScience, Research, is transfer- 22 www.cesio-congress.eu The HART Plant of the Year is the dation is an independent, not-for- ring to BTS on June 1. He will take over the Process Tech- only international award presented profit membership organization nology division as the successor to Dr. Helmut Mothes, to end user companies in the proc- that provides global support for the who retires July 1. Chemspec Europe – June 15–16, Geneva Some of the world’s largest suppli- ess automation industry to recog- application of HART technology. ers of fine and specialty chemicals and associated products and services nize the exceptional application DSM Announces New President of DSM Netherlands Jos Schneiders will retire as can be found at Chemspec Europe. With many attendees representing of HART Communication technol- president of DSM Netherlands in July and will be replaced by Atzo Nicolaï, manufacturing and consumer companies servicing multiple industries, ogy. Nominations will be accepted currently member of the Dutch House of Representatives, on June 1. Sch- Chemspec Europe provides the perfect opportunity to connect with visi- through June 30. Previous recipi- J neiders has worked at DSM for almost 35 years in various roles. Schneiders tors from not just Europe but around the world. will remain available for the company on a part-time basis until July 2012. 22 www.chemspecevents.com/europe Nicolaï was a member of the Dutch House of Representatives from 1998 to 2002. From 2002 to 2006, he was minister for European Affairs, and from KSB Wins 2006 to 2007 he was minister for Government Reform and Kingdom Rela- LOPE-C – Large-area Organic and Printed Electronics Convention, June 28–30, British Pump Industry Award tions. In 2007 he returned to the Dutch House of Representatives. He holds a Frankfurt LOPE-C is the official annual conference and exhibition of the degree in Law and Political Science from the VU University of Amsterdam. OE-A (Organic and Printed Electronics Organization). LOPE-C 2011 will KSB Limited (UK) was given the for “Environmental Contribution of cover the latest commercial and technological achievements in organic, award for “Environmental Contri- the Year,” PumpMeter was also a fi- Louis Neltner Appointed Rhodia Vice President, Research & inorganic and printed devices, systems and materials. LOPE-C represents bution of the Year.” At this year’s nalist in the category for “Technical Development Rhodia has apponted Louis Neltner as vice the entire industrial value chain – from academic research to R&D to “Pump Industry Awards” in Coven- Innovation of the Year.” The moni- president, Research & Development. He will be a member production to commercialization to end-user cultivation. In addition to the try, KSB Limited received the award toring unit continuously analyses of the group’s management committee. high-level business and technical conference with noted speakers from from the British Pump Manufactur- the pump’s operating data and es- He started his career in the public sector in 1999, at academia and industry, plus keynotes sessions and pre-conference semi- ers’ Association (BPMA) for and on tablishes its energy saving potential. the French Telecommunications Regulatory Authority nars, LOPE-C 2011 will feature an industry exhibition providing a com- behalf of the KSB Group. Through The PumpDrive variable speed sys- (ART), then moved to the general Inspectorate of Finance. prehensive overview to showcase the rapidly emerging products, services the award, the BPMA intends to tem matches pump output to actual Manager at McKinsey since 2004, he directed complex strategy-related and global manufacturing capacities in organic and printed electronics. promote and honor outstanding demand and allows energy savings projects and transformation programs for large companies in industry 22 www.lope-c.com achievements in pump technology. of up to 60%. and high-tech sectors. In addition to picking up the award J Corporate publishing Customer and employee magazines direCt marketing online reprints © Bratscher/Photocase.com

Corporate Publishing Reprints Oliver Scheel Dr. Stefanie Krauth Segment Manager Tel.: +49 (0) 6151 8090 191 Tel.: +49 (0) 6151 8090 196 [email protected] [email protected]

www.gitverlag.com

chemanager-online.com/en Page 16 At A Glance CHEManager Europe 5/2011

International Chemical Industry Branch Structure

Brazil’s chemical industry structure Brazil

With a turnover of almost €70 billion in 2009, Brazil

Consumer chemicals Inorganics is one of the world’s largest chemical producers (no. 9% 9% 7). However, production growth there has been slow

Pharma Petrochemicals during the last 10 years, growing on average of only 18% 20% 2 %. The shares of sales from petrochemicals, polymers, fine and specialty chemicals as well as pharma are around 20 % each. Petrochemicals and polymers make up the largest percentage of the chemical exports. However, with the World Soccer Cup in 2014

Polymers and the 2016 Summer Olympics looming on the ho- Fine and specialty chemicals 22% 22% rizon, exports of petrochemical products may drop considerably as local chemical major Braskem will have to focus on supplies for the domestic market.

China’s chemical industry structure

© Jens Görlich, Lufthansa Consumer chemicals China 4% Inorganics 12% Pharma China’s chemical industry just isn’t specialized in ba- 18% BASF: New Additive for Aviation Fuel BASF has recently acquired an exclusive license from Palox in Cyprus for sic materials anymore. Fine and specialty chemicals Petrochemicals the fuel additive Kerojet. After having jointly obtained approval for this product to be used in aircraft, BASF 22% have become more and more important over the last will have the exclusive manufacturing and marketing rights. Kerojet Aquarius binds the water contained in several years, and pharmaceuticals are also gaining kerosene and by that facilitates the maintenance work in aircraft. Aviation fuel has to meet strict quality criteria. in significance. With a turnover of €510 billion, China’s Stringent specifications and procedures apply for its production, transport and the into-plane fueling manage- chemical industry is no. 2 only to the U.S. It should be ment. However, small quantities of water in the ambient air find their way into the fuel tanks as the result of noted that 12 of the top 30 major countries are Asian, condensation when the aircraft is in the air and on the ground. This water poses a problem in aviation fuels, Fine and specialty chemicals Polymers generating chemicals sales of €753 billion. because it does not mix with the kerosene. The result is that the water falls to the bottom of the tank and causes 15% 29% corrosion and microbial attack, and the work that is required to remove the water from the fuel tank is compli- cated and expensive. Kerojet Aquarius can bind the tiniest quantities of water and dispersing it homogeneously in the kerosene. This prevents the water from forming a separate phase in the fuel tank, and the water that is Source: Feri, VCI © GIT VERLAG bound by the additive is removed from the aircraft during the normal combustion process. The German airline Lufthansa is working closely with BASF to test the effectiveness of the fuel additive under practical conditions in selected types of aircraft on selected routes. Saudi Arabia’s chemical industry structure Saudi Arabia

The chemical industry in Saudi Arabia enjoyed strong A Look Ahead Consumer growth before the economic crisis. However, in 1999, Pharma chemicals Inorganics the branch suffered a collapse in sales and fell from Fine and 1% 3% June is a big month with lots of interesting events, like the FECC Congress, the Cesio Surfactant Congress specialty chemicals 10% 13% no. 29 to no. 34 of the world’s largest chemical pro- and the Chemspec Europe. Don’t miss our June issue, which will feature the following: ducers. In 1999, the branch gained over €10 billion in sales, with petrochemicals and polymers making ▪ Short interviews with the heads of chemical distributors Ter Hell; Bren- ▪ Benchmarking European Fine Chemicals Companies by industry expert up 80 % of the total. Recently, the country unexpec- ntag; Caldic; C. H. Erbslöh; Barenz; and many more. Jan Ramakers Petrochemicals tedly called on oilfield service firms to expand the 41% ▪ In-depth interview with FECC Director General Uta Jensen-Korte on her ▪ And much more! kingdom’s oil rig count by nearly 30 %, according to first months in office and her visions for the future. Simmons & Co, to ensure spare production capacity Polymers ▪ An overview of the European chemical distribution landscape by Distri- remains ample as supply uncertainty grows. Saudi 39% Consult’s Günther Eberhard state-run oil giant Saudi Aramco met with leading oil service companies including Halliburton, unveiling ▪ Risk and potential of R&D partnerships between multinational

plans to boost the country’s rig count this year and organizations and Chinese companies by Kai Pflug of Management CHEManager Europe 06/2011 Source: Chemdata, VCI © GIT VERLAG next to 118, from around 92 now Consultants will be out on June 1!

Russia’s chemical industry structure Russia Index The Russian chemical industry has experienced tre- Consumer chemicals mendous growth within the last 10 years. With about ABB 10 Gordon Rees 4 Momentive Specialty Chemicals 12 8% Pharma €22 billion in turnover, the country is the world’s 20th 7% Aditya Birla 12 Henkel 5 Monberg & Thorsen 1 Fine and Inorganics largest producer. However, the economic crisis hit the Akinomoto 13 specialty chemicals 47% IBIC 10 Myriant 13 11% country hard, and the average production growth AkzoNobel 4, 12 National Innovation Agency 13 rate for the last 10 years fell from over 6 % to under Israel Chem 9 Albert Heijn 12 3 %. Russia mainly produces inorganics. Recently, the John Deere Corporation 14 Neste Chemicals 9 Altana 5 Association of International Pharmaceutical Manu- Johnson & Johnson 8 Nord Stream 2 Arkema 4, 9 Polymers facturers (AIPM) said more global drugmakers will 13% Kanoria Chemicals & Industries 12 Novamont 13 soon announce plans to establish a local presence in Asahi Kasei 8 KSB 15 PBS 13 Petrochemicals Ashland Finland Oy 14 14% Russia in response to government measures to boost LDK Solar 9 PCCR USA 12 its domestic sector and cut dependence on im- Ashland 4 Linde 5, 9 Pepsi Co 12 ports. BASF 2, 5, 10, 13, 16 Source: Feri, VCI © GIT VERLAG Bayer Technology Services 15 LyondellBasell 5 Porsche Consulting 8

Bayer 4 Merck & Co. 4 PPG Industries 1

Belaruskali 1 Merck Millipore 7 PricewaterhouseCoopers 6

Borealis 9 Mitsubishi Chemicals 13 Procter and Gamble 12

Imprint Brabender Technologie 7 Profibus 10

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