A Game-Changer Bridging the Gap Between Sustainability and Industry in the Field of Bio-Based Specialty Chemicals

7-8/2015 JULY

INTERNATIINTERNATI NALNAL

Chemicals Logistics How the cosmetics industry is THE NEWSPAPER FOR THE Recent developments and playing its part in current trends in sustainable development CHEMICAL AND supply-chain management

Page 8 LIFE SCIENCE MARKETS Pages 9 – 12 © Africa Studio - Fotolia.com © Dmitry Perov - Fotolia.com A Game-Changer Bridging the Gap between Sustainability and Industry in the Field of Bio-based Specialty Chemicals

ormed in 2007, Elevance Renewable Sciences produces high-performance As a high-performance, renewa- ingredients for use in personal care products, detergents, lubricants, and ble, collaboration-oriented company, we are in a unique market position Fother specialty chemicals and fuel markets from natural, plant-based oils. in the $500 billion specialty chemi- Based on its model, the Woodridge, Illinois, USA based enterprise claims to be the cal market. first company to successfully bridge the renewables and chemicals industries. What is your expectation for the Elevance is one of the companies that could revolutionize the specialty chemicals future market growth for bio- BUSS CHEMTECH value chain. CHEManager International asked Bob Kumpf, chief technology of- based specialty chemicals from EICKHOFF ficer at Elevance, about his strategy to further develop the company’s innovative natural oils? KRESTA KWE technologies and bringing novel bio-based specialty products onto the market. B. Kumpf: Future market growth will TRIPLAN be significant. Today, Elevance is VENTURIS IT commercially supplying partners CHEManager International: Where Using a proprietary and Nobel with better-performing, cost-com- Thank you for your visit has Elevance come from and how Prize-winning technology called petitive renewable alternatives to Bob Kumpf, CTO, to our stand at ACHEMA. did the company start? olefin metathesis, we have built and petrochemicals across multiple in- Elevance Renewable More information about now operate a 180,000 metric ton dustries. Through our groundbreak- Sciences our services on: www.kresta-industries.com B. Kumpf: Elevance began with a world-scale biorefinery in a joint ing technology, Elevance is deliver- grant from the US Department of venture with Wilmar International; ing and enabling high-performance Energy in 2004, and today we are a acquired and begun converting a specialty chemicals that meet criti- high-growth biochemistry company wholly owned biodiesel facility into a cal industry needs and trends. Our N ewsflow delivering specialty chemicals that second 310,000 metric ton biorefin- products, and those of our custom- exceed the performance of existing ery; established collaborations with ers, are helping the industry move M&A-News: products while leaving a smaller leading chemical industry players in beyond petrochemicals to something Celgene has agreed to pay $7.2 billion to acquire compatriot Receptos. environmental footprint. These feedstocks, technology, manufactur- that is better, a new generation of specialty chemicals are used in ing and markets; and commercial- chemistry with a smaller environ- Platform Specialty Products has personal care products, detergents ized a string of novel, high-perfor- mental footprint — a new category offered $2.3 billion for all shares and cleaners, engineered polymers, mance products that include clean- of products we call Renewicals. of UK-based Alent. lubricants and additives, and other ing and personal care ingredients More on Page 2 ▶ specialty chemicals markets. and a renewable synthetic base oil. Continues Page 7 ▶

Companies: Sanofi has announced plans to streamline its corporate structure Monsanto Steps up Pressure in Pursuit of Syngenta Inovyn Starts, BASF Quits PVC with effect from January 2016. gribusiness giant Monsanto in the near term” and also “a new ollowing clearance of the Ineos is planning to move some of its corporate functions back to is leaving no stone unturned company focused on accelerating merger by the European the UK. innovation and sustainability in in its quest to take over agriculture.” To legislators, he said Commission in mid-June, PVC More on Page 3 ▶ A F Swiss rival Syngenta. Since making an Monsanto intended to pay taxes producer Inovyn, the new 50:50 joint Investments: initial hostile $45 billion bid in May, its “on all US operations of the merged venture of Ineos and Solvay, officially BASF has commissioned a new company,” even if it moved corpo- production plant for form-release management has held meetings with rate headquarters to London, as has started trading on Jul. 1. agents at its Staßfurt, Germany, site. representatives of the Swiss company Michel Demaré, chairman of the board, Syngenta been suggested. Jean-Pierre Clamadieu, CEO, Solvay and its major shareholders as well as Behind the scenes in Europe, ob- Headquartered in London, the new Borealis plans to invest €160 million servers of the tussle are speculating company has pro forma sales of to upgrade and revamp four cracker US farmers and legislators. berg reported in mid-July that Paul- on which peripheral deals could be more than €3 billion, 4,300 em- PVC joint venture with Solvay for an furnaces at Stenungsund, Sweden. son & Co., the hedge fund of billion- forthcoming if, lured by the US of- ployees and assets across 18 sites undisclosed sum, effective Jul 1. As More on Page 9 and 14 ▶ Syngenta has continued to hold out, aire US investor John Paulson, had fer, Syngenta shareholders agree to in Belgium, France, Germany, Italy, part of the deal, Inovyn has agreed with supervisory board chairman acquired “a large number of shares” tender. Germany’s Bayer and BASF, Norway, Spain, Sweden and the UK. to supply basic chemicals to BASF’S People: Michel Demaré taking to YouTube to in Syngenta, which could place the both agricultural giants in their own The partners said final terms of Antwerp, Belgium, site. Evonik appointed Ralph Sven Kauf- mann as new COO, replacing Patrik present the company’s arguments. fund among the Swiss firm’s 20 larg- right, have been named as candi- the jv agreement remain “materially SolVin was established in 1999 Wohlhauser. In particular, he said the bid “gross- est shareholders. dates for Syngenta’s seed business, unchanged” from those announced a as a 75:25 joint venture of Solvay ly undervalues” the world’s largest Convincing US farmers that a which Monsanto undoubtedly would year ago, when plans were first re- and BASF. The German partner said More on Page 15 ▶ producer of chemical crop protect- deal between the two global be- have to sell to allay antitrust con- vealed. Upon closing, Solvay received at the time it intended to exit the ants and the US rival is downplaying hemoths will not further reduce cerns. an upfront cash payment of €150 mil- business at some point in the future. the execution risks inherent in such competition in the market for seed After a wave of mergers in recent lion from Ineos, subject to customary Unclear is whether SolVin will be a deal. “Monsanto has endorsed our and chemicals, and legislators that years, only six research-oriented adjustments such as actual working operated as a standalone company strategy and clearly demonstrated Monsanto will not move tax dollars agrochemical players are left in the capital levels. In addition to contrib- held by Inovyn or be absorbed by it. that it has great value,” Demaré outside the country have also been industry, and many have coopera- uting its entire European chlorovinyl Integration of the former Bel- said, but it is “trying to buy the com- at the top of the company’s to-do list tion pacts. “If the two biggest were business, Solvay has transferred li- gian-German jv is not known to pany “on the cheap.” this summer. to go together, inevitably it would abilities of around €260 million to have been included in the terms of Monsanto, which needs Syngenta In an “Open Letter to Growers” force others to review their strate- the new company. When the Belgian the EU approval of Inovyn but the to regain muscle in conventional published as a full-page advertise- gies,” Bayer CropScience chief Liam group sells its stake to Ineos in 2018, PVC producer would seem certain to crop protection after years of bet- ment in rural US newspapers, CEO Condon remarked in a news agency as agreed, it is due to receive an addi- be bound to through supply agree- ting mainly on seed, meanwhile ap- Hugh Grant said the combination interview. (dw) tional, performance-based payment ments. At the latest when Solvay ex- pears to have convinced at least one with Syngenta would “create a in the range of €95-280 million. its the business in 2018, full integra- major investor of the merits of its portfolio of choices that can im- Simultaneously, BASF announced tion into Ineos would appear likely. strategy. The news agency Bloom prove your day-to-day-operations ▪ the sale of its 25% stake in its SolVin Commenting on the launch of Inovyn, Solvay CEO Jean-Pierre Clamadieu said the Belgian group’s transformation “has reached a key milestone.” Ineos chairman Jim Rat- cliffe said the joint venture “com- Load quickly bines two businesses with a strong

· PF 11 05 64 · 69469 Weinheim · Pressepost · DPAG· Entgelt bezahlt · 78719 Entgelt · DPAG· · Pressepost Weinheim · PF 11 05 64 69469 heritage in the chlorovinyls industry, – safely creating a company fit to thrive in www.rs-seliger.de an ever changing business environ-

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chemanager-online.com/en Page 2 MARKETS & COMPANIES CHEManager International 7-8/2015

CONTENT DECISIVE INFORMATION

THE PORTAL AND NEWSPAPER FOR THE EUROPEAN CHEMICALS AND PHARMACEUTICAL MARKETS

Front Page On the Way to the Internet of Everything 6 Substance-based Supply-Chain Planning under BEPS 12 New Technologies Will Make It Possible to Integrate New Standards Will Change International Tax Practices A Game-Changer 1 Intelligent Systems into Everyday Objects Michael Freudenberg, Christoph Ludwig, KPMG Bridging the Gap between Sustainability and Industry Eva Weller, SEMI Europe in the Field of Bio-Based Specialty Chemicals Interview with Bob Kumpf, Elevance Renewable Sciences Sustainability: Lessons from the Cosmetics Industry 8 Production 13 – 14 Finding the Right Balance of Economic Progress, Environmental Care and Social Responsibility Building a Shield for Innovation 13 Market & Companies 2 – 5 Amarjit Sahota, Organic Monitor Patents are Essential for Protecting Inventions in © Nmedia/fotolia.com Chemical Technology Christian Lang, LangRaible IP Law Firm Beyond REACh: Nanomaterials in the European Union 4 Logistics 9 – 12 Confusion Swirls around Definition and Registration Mobile App Brings Industry 4.0 to all Pumps 14 online.com/en

chemanager - Anthony Bochon, Squire Patton Boggs A New SQAS 9 KSB Logistics Assessment Tackles Sustainability, European Plastics in Crisis 5 chemanager - Corporate Responsibility, Security and Technology online.com /en Epic Supply Shortage Erodes Converters’ Confidence Victor Trapani, CEFIC People · Publications 15 Dede Williams, freelance journalist Quantitative Supply-Chain Risk Management 10 Research Project to Indicate and Measure the Effect of At A Glance 16 www.gitverlag.com Chemicals 6 – 8 Supply-Chain Risks Prof. Ludger Bruell, Bayer Technology Services Bio-based Economy: Potential Benefits and Risks 6 Index 16 Need for Further Action to Realize the Full Potential Less-Than-Truckload Networks 11 of the European Bio-based Economy European Market Flows with Network-Based Cross-Border Goods Dechema Christian Reichenauer, Fraunhofer Center for Supply Chain Services SCS Imprint 16

Platform Offers Celgene Offers $7.2 Billion for Receptos Bayer MaterialScience

$2.3 Billion for Alent US biotech firm Celgene has agreed 2011. In April of this year it agreed to be Renamed Covestro to pay $7.2 billion, or $232 per to pay AstraZeneca an upfront fee of Private equity investor Platform Platform, which is paying 13.9 share, to acquire compatriot Recep- $450 million to collaborate on one From Sept. 1, Bayer’s engineering what it calls the “home stretch” of its Specialty Products has offered times Alent’s EBITDA, said it expects tos, a biotech company that makes a of the Swedish-British group’s most plastics sub-group Bayer Materi- Dream Production project, the manu- around $2.3 billion, including debt, annual pretax cost savings of at least potential blockbuster drug to treat promising immunotherapies. This alScience (BMS) will begin trading facture of polyols from waste CO2. for all shares of UK-based Alent, a $50 million through the integration. autoimmune diseases, including partnership will be excluded from as Covestro. The name change will Polyols produced from the waste manufacturer of electronic chemi- The investment group is said to be multiple sclerosis. the agreement with Juno. precede an initial public offering gas, made up to around 20% of CO2, cals specialty surface coatings. betting on demand for increasingly The all-cash offer is said to rep- According to news reports, Recep- planned for BMS in mid-2016 as will be used to produce polyure- Principal shareholder of Alent compact technology to fit in mobile resent a 12% premium to California- tos’ most advanced drug, Ozanimod, Bayer prepares to reinvent itself as thane foam for mattresses. is private equity investor Cevian phones and the addition of more based Receptos’ closing price on Jul. is a treatment for relapsing multiple a pure life science player. A new 25-t chemical reactor was Capital with just under 22%. Com- electronics such as sensors in cars. 14, which observers said was a rela- sclerosis that can be taken as a once- Explaining the name, future installed at the heart of the future mentators said the takeover was a The current deal represents an- tively modest amount compared to a-day pill, avoiding the need for injec- Covestro CEO, Patrick Thomas, said production line at the company’s deal waiting to happen after Cevian other step toward consolidation in other recent transactions in the bio- tions that can cause considerable side CO stands for collaboration with Dormagen, Germany, site, and the pushed for the company’s carve-out the market for electronic chemicals, tech sector. It follows by two weeks effects. The drug is in late-stage clini- suppliers and customers, VEST last key component, a CO2 tank, is from Cookson Group in 2012. seen to be growing at twice the pace Celgene’s announcement of plans to cal trials due to be completed in 2017, for investment in state-of-the-art due to be installed later this year. The takeover will allow Platform, of the automotive industry. In 2013, invest $1 billion in Juno Therapeu- which – if successful – could pave the manufacturing facilities and STRO The facility is expected to go on owned by activist investors Martin Merck KGaA bought AZ Electronic tics, a maker of experimental cancer way for a commercial launch in 2019. for strong, reflecting the company’s stream in the first quarter of 2016. Franklin, Bill Ackman and Nicolas Materials for $2.8 billion, and En- treatments. Ozanimod is also being tested in strengths in innovation, in the mar- Intensive tests are said to have Berggruen to merge its MacDer- tegri bought ATMI for $952 million. In an attempt to rapidly build a patients suffering from ulcerative ket and in its workforce. shown that the material produced mid unit, acquired for $1.8 billion Earlier this year, Platform agreed pipeline of new drugs through ac- colitis and Crohn’s disease. A sec- Covestro will be Europe’s fourth from CO2 is “at least as good” as in 2013, with Alent’s Enthone. Both to acquire the electronic chemical quisitions and collaborations rather ond drug, licensed from AbbVie, is largest chemical company in terms conventional products made entirely make protective surface coatings for and photomasks businesses of OM than internal R&D, Celgene has in phase two trials for patients with of sales behind BASF, LyondellBasell from petrochemical feedstock, and automotive and aircraft applications. Group for $365 million. (dw) ▪ sealed 30 deals or partnerships since Eosinophilic esophagitis. (dw) ▪ and Evonik. The engineering plastics the new production process is more producer meanwhile has entered sustainable. (dw) ▪

German Antitrust Authority Allows Ardian Acquires ES and IM AkzoNobel to Sell Biomaterials BASF-Siegfried Deal Businesses from DPx Holdings Technology to Ashland Germany’s antitrust authority Bun- products for which it has a leading Austrian private equity investor intermediates for agriculture and deskartellamt has approved BASF’s market position. Ardian has acquired Exclusive Syn- other industries. IM produces maleic In a transaction that is set to close The activities are focused on plans to sell its custom synthesis Siegfried will acquire APIs such thesis (ES) and Maleic Anhydride anhydride, along with a large num- in the third quarter of this year, Ak- plant-based chemistry used to de- business, part of the Nutrition & as ephedrine, pseudoephedrine and Intermediates & Specialties (IM) ber of intermediates, derivatives and zoNobel has announced plans to sell velop products for various appli- Health division, and parts of its caffeine, with annual sales of around from Linz-based DPx Holdings for esters. Together they reported sales its biomaterials technology to Ash- cations, such as high performance current active pharmaceutical in- €270 million, while BASF will retain an undisclosed sum. The assets of some €200 million in 2014. land of the US. The Dutch chemical beauty technologies. gredients (APIs) business to Zofin- its excipient portfolio and selected held by the 51:49 joint venture of With Ardian’s support, manage- producer said the business is in its “This transaction will enable gen, Switzerland-based Siegfried APIs, such as ibuprofen, omega-3 fat- investor JLL Partners and Dutch ment led by CEO Wolfgang Hillisch early phase of commercialization, us to focus on our core technology Holding. ty acids and polyethylenglycol (PEG). chemical Group DSM were merged plans to “significantly strengthen” and the divestment plans follow a platforms, specialty surfactants and Following the divestment, which The Swiss company said it expects in 2013 from holdings of DSM Phar- the units’ market position and ex- strategic review that determined polymers, and help reinforce our has an enterprise value of €270 the transaction be finalized at the be- maceutical Products and Patheon. pand through organic growth and it was not a good fit with the com- leadership position in both areas,” million, BASF intends to focus on ginning of the fourth quarter. (dw) ▪ ES develops and produces chemical acquisitions. (dw) ▪ pany’s portfolio. Akzo Nobel said. (dw) ▪

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Ineos Said Moving Corporate K+S Rejects PotashCorp Takeover Bid Sanofi to Streamline

Functions Back to UK As the cross-continental M&A drive company. The “Salt 2020” strategy Global Organization from 2016 gears up, German minerals produc- alone, he said, is expected to produce Ineos is planning to move some of vid Cameron and (chancellor of the er K+S has rejected a €41-per-share a sustainable increase in operating French drugmaker Sanofi has an- The Specialty Care global business its corporate functions back to the exchequer) George Osborne,” the unsolicited takeover offer for all of profit of up to €250 million. nounced plans to streamline its unit, to be called Sanofi Genzyme, UK from its current headquarters newspaper commented. The British the company’s shares made in late K+S has already invested more corporate structure with effect from will be led by David Meeker and will in Switzerland, according to uncon- government has been trying to lure June by Canadian rival Potash Cor- than €2 billion in the Legacy project, January 2016. The company pointed consist of Sanofi’s medicines in rare firmed press reports. fresh corporate investment with the poration of Saskatchewan. which is said to be on time and on to its heritage formed from a com- diseases, multiple sclerosis, oncol- In an interview with the London promise of lower corporation taxes. The offer “does not reflect the budget. “The first tons of potash will bination of venerable companies – ogy and immunology, including the newspaper Daily Mail, the petro- Ratcliffe, who himself will remain fundamental value of K+S and is be produced by the end of 2016, and including Aventis, the merged drugs two investigational biologics, sari- chemical group’s chairman said a Swiss resident, said the move in not in its best interest,” said CEO positive cash flows will be generated business of Germany’s Hoechst and lumab and dupilumab. he is “cheerful about coming back 2010 – after the Labour government Norbert Steiner. “Not only does this already from 2017 onward,” Steiner France’s Rhone-Poulenc – which has Sanofi’s Diabetes & Cardiovascu- to the UK,” five years after moving of Prime Minister Gordon Brown proposal undervalue our potash and said. “We believe PotashCorp is try- enabled it to deliver “highly innova- lar global business unit will be led headquarters from Lyndhurst in declined to temporarily defer VAT magnesium products and our salt ing to take advantage of the valua- tive treatments.” by Pascale Witz and will consist of Hampshire to Rolle, Switzerland – payments of £350 million when the business, it completely disregards tion gap to take over K+S and gain Sanofi said it is now poised to diabetes care medicines as well as near Lausanne – after failing to win chemical producer found itself over- the value of our Legacy Project,” he control over Legacy.” achieve significant growth with the cardiovascular, including praluent tax breaks from the then-Labour exposed to the financial crisis – has added. Steiner noted that K+S manage- potential of launching up to six new (alirocumab). government. saved Ineos £100 million in tax an- According to the CEO, the book ment is “not suitably convinced” that medicines in 2015 and about one As global business units, Sanofi “We increasingly found ourselves nually. value alone of the Legacy potash PotashCorp has a sustained interest every six months between 2016 and Pasteur and Merial will continue to gravitating towards London. There Ineos is still one of the largest mine in Saskatchewan, scheduled in continuing the fertilizer and salt 2018. The new organization “simpli- manage their current portfolios of was so much going on for our busi- manufacturing businesses in the UK. to begin production in mid-2016, businesses in their current form, fies and focuses Sanofi to optimize vaccines and animal health prod- ness, and we had grown substan- Many of its assets remain there, no- is €11 per share, and considering which are “strategically, technical- growth,” said Olivier Brandicourt, ucts. Olivier Charmeil will continue tially here,” Ratcliffe said. At its new tably the mammoth petrochemicals future earnings K+S management ly and economically intertwined.” who took over as CEO in April. to lead Sanofi Pasteur and Carsten base in London, he said Ineos will complex at Grangemouth in Scot- calculates a value of up to €21 per Along with the government of the Five new global business units Hellmann will continue to lead have a large trading floor for its oil land – despite Ratcliffe’s repeated share. “This,” he said, “is not yet re- German state of Hesse, in which are planned to be created. Gener- Merial. Similar to Research and De- and gas traders, who are currently threats to pull out. The group is flected in the share price.” most of the mines are located, the al Medicines & Emerging Markets velopment and Industrial Affairs, all based at Canary Wharf. “A few peo- close to completing an export termi- Steiner also pointed to strategic company is concerned about the fu- will be headed by Peter Guenther functions will be globalized to better ple will move from Lausanne.” nal for shale gas near Grangemouth, initiatives across both the potash ture of the more than 30,000 direct and will consist of Sanofi’s estab- serve the business units, the French “The return of such a success- for which it won pledges of invest- and magnesium and salt business and indirect jobs associated with its lished products, generics, consumer drugmaker said. The makeup of the ful business is a massive coup for ment aid from both the UK and Scot- units, which he said contribute to the mining and domestic raw material healthcare, and all pharmaceutical executive committee will remain un- the policies of (prime minister) Da- tish governments (dw) ▪ positive outlook for the Kassel-based production. (dw) ▪ businesses in emerging markets. changed. (dw) ▪

SGL Carbon to Carve Out Performance Products

Defining what management calls industry.” For the remaining units, “the next strategic milestones for management is targeting organic ensuring sustainable profitable sales growth of around 50% against growth,” Wiesbaden, Germany- the 2014 figure of €737 million, based carbon and graphite producer coupled with “selective bolt-on ac- SGL Carbon has announced plans to quisitions.” For some time, SGL has carve out its Performance Products been pursuing expansion scenarios (PP) business, which makes and for lithium ion batteries, LEDs and markets in particular graphite elec- lightweight carbon materials. trodes, into a standalone company. The company said the decisions For the business units Graphite Ma- represent a further development of terials & Systems (GMS) and Carbon its strategy launched in 2013 with Fibers & Materials (CFM), it intends the cost savings program SGL2015 to pursue “an accelerated growth and continued in September 2014 strategy.” with the announcement of the key The carve-out of PP is planned to strategic cornerstones. The main be completed by the end of the 2016 financial target is and remains to business year. The company said the improve the return on capital em- unit will “adapt its business model to ployed (on an EBITDA basis) in the the changed market conditions es- group as well as in the business pecially in graphite electrodes.” This units to at least 15% in the medium could mean a stock market flotation, term. a joint venture or partnership with Savings of more than €240 mil- a financial investor. lion are targeted through SGL2015, SGL added that the reposition- expected to be largely completed ing will allow PP to “flexibly react to this year. According to the com- new strategic options, allowing it to pany, €172 million of the goal was participate in “future consolidation achieved by the end of the first scenarios in the graphite electrode quarter of 2015. (dw) ▪

DuPont and Chemours Face Hefty US Fines

DuPont is said to have burdened its Beyond civil suits, the group fac- newly listed Performance Chemicals es a minimum of $99,000 in OSHA spin-off Chemours with potential li- fines for violations related to four abilities at 171 of its US production fatalities caused by a leak of me- sites. The new company will also thyl mercaptam during a loading share some of the thousands of dol- procedure at the LaPorte, Texas, lars in fines the US Occupational herbicide plant. The agency said Safety and Health Administration DuPont’s failure to correct safety (OSHA) has threatened to slap on the violations such as rundown equip- Yippee! Or as we call it: chemical giant for safety violations. ment, undertrained workers and Reports say up to 25 active pro- undisclosed hazards led to the duction facilities could be subject to deaths. 2.23 m, 25.43 °C, and 218 mbar the clean-up bill to be presented to OSHA is also proposing to add Chemours by the US Environmental $273,000 penalties for additional 6LHPHQV3URFHVV,QVWUXPHQWDWLRQ²PHDVXULQJHYHU\WKLQJWKDWPDWWHUV Protection Agency (EPA). Personal violations found in a separate in- injury lawsuits are another poten- spection of the LaPorte site. In con- /HYHO7HPSHUDWXUH3UHVVXUHDQGPRUH tial threat to both the former parent nection with these and a series of and the spin-off. Apart from cleanup accidents at other facilities, it has costs, Chemours is believed to face placed DuPont on its five-year-old 3,500 personal injury and 32 wrong- Severe Violator Enforcement Pro- 2XUUDQJHRISURFHVVLQVWUXPHQWVDUHPDNLQJDELJVSODVK DQGLPSURYLQJSURGXFWTXDOLW\ZHRIIHUIXOO\DXWRPDWHG ful death claims regarding the fa- gram list of problem companies. :KHWKHU\RXQHHGWRPHDVXUHSUHVVXUHWHPSHUDWXUHIORZ VROXWLRQVIRUHYHU\VWDJHRIWKHSURFHVV:KLFKPHDQV\RX cility in Parkersburg, West Virginia, The workplace safety watchdog ZHLJKWOHYHORUXVHHOHFWURSQHXPDWLFSRVLWLRQHUVRXU FDQUHO\RQRXUSDVVLRQIRUSUHFLVLRQWKURXJKRXW\RXUHQWLUH alone. said the chemical producer had LQVWUXPHQWVDUHHQJLQHHUHGWRJLYH\RXWKHPRVWSUHFLVH SODQW%HFDXVHZHEHOLHYHHYHU\EXVLQHVVVXFFHVVEHJLQV Estimates of potential cleanup “demonstrated indifference to- PHDVXUHPHQWSRVVLEOH$QGEHFDXVHZHXQGHUVWDQG ZLWKJUHDWPHDVXULQJ costs the DuPont group including wards creating a safe and healthy DFFXUDWHPHDVXULQJLVWKHNH\WRLQFUHDVLQJSODQWHIILFLHQF\ Chemours could face run to billions workplace by committing willful or of dollars. However, any calculation repeated violations, and/or failing to is considered only a rough guess, as abate known hazards.” In response EPA has not completed all investi- to the complaints involving LaPorte, VLHPHQVFRPSURFHVVLQVWUXPHQWDWLRQ gations – in particular for Pompton DuPont said it had identified and ad- Lakes, New Jersey, where explosives dressed most, if not all, of the agen- were manufactured for 97 years. cy’s significant findings. (dw) ▪

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Beyond REACh: Nanomaterials in the European Union Confusion Swirls around Definition and Registration

ompanies manufacturing, importing or distributing nanomaterials into the territory of the European Union do not only have to comply with Cthe Registration, Evaluation, Authorization and Restriction of Chemicals (REACh). Two sector-based regulations and three EU member states oblige them to register substances, mixtures and articles containing nanomaterials. In addition to uncertainty about the legal definition of nanomaterials, the European Union currently has no coherent framework for registration. Anthony Bochon, Squire Patton Boggs

The International Standards Organi- to define nanomaterials. Though it materials as its scope does not take zation (ISO) defines nanomaterials provides some exceptions, this defi- the scale of materials into account. as materials “with any external di- nition excludes from its scope mate- Leaving aside the issue with the mension in the nanoscale or having rials with less than 50% of particles tonnage threshold of REACh that internal structure or surface struc- in the number size distribution hav- excludes most of the nanomaterials ture in the nanoscale.” The so-called ing at least an external dimension in from registration, some stakehold- nanoscale is generally sized between the nanoscale. This 50% threshold ers consider that the registration 1 and 100 nm, a nanometer being a has been the source of disagree- requirements under REACh are billionth of a meter. Materials with ments between the commission simply insufficient to collect data on at least one dimension sized at the and the European Parliament, as nanomaterials and that public au- © psdesign1 - Fotolia.com nanoscale generally have different the latter would prefer to lower it thorities should act beyond REACh physical or chemical properties than to 10% to define nanomaterials in to get such information. As EU mem- their form at a higher scale. food-related regulations. ber states have failed to agree on tion must still be necessary, objec- tially little awareness about the ex- mittee for Consumer Safety (SCCS) Though some nanomaterials ex- The European Parliament also amending REACh or adopting an tive and proportionate to the aim istence of a national register though to issue an opinion. The Biocidal ist naturally, most of them are engi- has blocked attempts by the com- EU-wide nanomaterials register, pursued. In light of this, it is not the number of addressees is poten- Products Regulation also contains neered to make use of these specific mission to harmonize the defini- three member states have decided surprising that the legal service of tially huge. With the approaching provisions on nanomaterials. It no- properties that, according to some tions in the pre-2011 regulations. to legislate beyond REACh and have the commission expressed concerns signing of a cooperation agreement tably indicates that, unless it explic- scientists, could have potentially haz- The current debate about the new their own national register. about the legality of the three na- between France and Belgium, com- itly mentions it, the approval of an ardous effects on human health or Novel Food Regulation shows that This undeniably entails legal cer- tional regimes in its reasoned opin- panies can expect to face substantial active substance does not cover na- on the environment. For these rea- instead of having a legal framework tainty about REACh, as it provides ion issued before their respective fines if they fail to register their nanomaterials. As a result, the simpli- sons, several EU regulations, mainly based on a single definition of the that member states have no compe- entries into force. nomaterials in these two countries, fied authorization procedure is not relating to the food sector, but also term nanomaterial, the European tence to further regulate substances especially in Belgium where the so- available when the biocidal products on cosmetics and biocides, contain Union has a legal patchwork that already covered by the regulation Nanomaterials Registers called registration must be made be- contain nanomaterials. requirements about the inclusion of is further complicated by national itself. Even if the adoption of na- in EU Member States fore the substance, mixture or arti- nanomaterials in consumer products. initiatives imposing requirements on tional registers would be admissible cle is placed on the market, while Future Developments As most of these regulations do companies that go beyond those laid under REACh, it must nevertheless In 2013, France became the first France and Denmark only impose a not identically define nanomaterials, down in REACh. not infringe the EU Treaty rules on member state to impose the regis- post yearly notification. With Sweden aiming at adopting its the European Commission proposed the free movement of goods within tration of nanomaterials, mixtures own national register by the end of a single definition of the term “nano- Nanomaterials under REACh: the EU internal market. Although or articles containing them. Den- EU-Specific Registration Requirements for 2015 and with the recent proposal material” with its recommendation Size Does Not Matter member states may restrict the free mark became the second state in Nanomaterials in Cosmetics and Biocides of the US Environmental Protection on Oct. 18, 2011. This EU definition movement of goods on grounds such 2014, and Belgium will follow as of Agency advocating the reporting of differs from the ISO as it does not Though it does not explicitly men- as the protection of public health Jan. 1, 2016. The French and Bel- Besides those concerning the food nanoscale materials, there is little merely use the nanoscale criterion tion them, REACh applies to nano- or the environment, any restric- gian registers apply when the quan- sector, two other EU regulations doubt that the question of the har- tity of nanomaterials placed on the contain provisions on nanomate- monization of registration require- market exceeds 100 g/y, while there rials, which require companies to ments will be on the agenda of the is no threshold at all in Denmark. provide additional data before their European Union over the next few While the latter applies to the distri- products can access the internal years. bution of articles to consumers, the market. Pursuant to the Cosmetics th two others apply to the distribution Regulation, the Cosmetics Products Anthony Bochon, associate, 4 to professional users only. The scope Notification Portal (CPNP) now has a Squire Patton Boggs, of the Danish restriction is wider as separate section for the notification Brussels, Belgium it also covers naturally occurring of cosmetic products containing a nanomaterials and not only engi- nanomaterial. In cases where there neered nanomaterials. The French are doubts about safety, the commis- 22 [email protected] experience shows that there was ini- sion will request the Scientific Com- www.squirepattonboggs.com www.co2-chemistry.eu Europe‘s Largest Event on UK Life Science Funding Hits 10-Year High Carbon Capture and Utilization in 2015 29 – 30 September 2015, Essen (Germany) Financing for UK life science compa- (BIA) and research firm Evaluate of the money poured into the US nies from equity markets and ven- show that money for life science sector. 1st Day (29 September 2015): nova-Institute is proud to host the “4th Conference ture capital soared in 2014 and has raised through flotations rose more The $2.4 billion in venture capi- on Carbon Dioxide as Feedstock for Fuels, Chemistry remained buoyant throughout 2015 than eightfold in 2014 to £408 mil- tal raised by UK biotech companies • Policy & Visions and Polymers“ on 29 – 30 September 2015 in Essen, as the industry recovers from a long lion and accounted for more than in the past decade was only 7% of • H 2 Generation: Prerequisite for Germany and invites interested stakeholders to register. investment drought, according to an 40% of the total raised in this way the $37 billion pumped into their US CO2-Economy More than 200 experts are expected to join Europe’s largest article in the business daily Finan- by UK biotech firms in the past 10 counterparts, according to the re- event on Carbon Capture and Utilization (CCU) in 2015. cial Times (FT). years. Venture capital funding rose search by BIA and Evaluate. Almost nd 2 Day (30 September 2015): The main focus of the conference topic is on technological Investment has now reached its 71% to a high of $430 million. half the UK total stemmed from a breakthroughs for an efficient and low-cost utilization of highest level for at least a decade, The FT credits rising risk appe- 2014 single ipo – Circassia, an Ox- • CO2 Capture & Purification CO2 as energy source and for chemical building blocks. • Chemicals & Polymers the newspaper says, and notes that tite and ultra-low interest rates for ford-based allergy drug developer. It sounds like a daring vision – but could become this should be welcome news for the the development, which it says has To narrow the gap between the • CO -based Fuels 2 reality faster than you may imagine! Already now, the UK government, which through tax- coincided with signs of a resurgence UK and the US in life science promo- implementation of carbon dioxide utilization as a raw es and tax breaks has sought to pro- in biotech innovation on both sides tion, London mayor Boris Johnson material in a circular economy and as an energy source Free Exhibition Booth mote life sciences. Figures released of the Atlantic – even if UK financ- has proposed creating a dedicated takes shape at a fast pace. Everyone is fascinated to hear Take the extraordinary opportunity to about it for the first time: We can use various technologies by the UK Bioindustry Association ing figures remain a small fraction £10 billion mega fund. (dw) ▪ present your company and your innovative to produce gaseous and fluid fuels from captured CO products at the conference with an 2 and renewable energies like solar or wind energy. With exhibition booth! the same technologies, we can also produce chemical Only a two-days conference entrance building blocks that can supply basically all chemical ticket is needed. Detailed information European Parliament Approves TTIP Compromise can be found at: and plastics industries. www.co2-chemistry.eu/exhibitorinfo Leading players will showcase some enhanced and also By a vote of 447 to 229, the Euro- While the US has made arbitra- sue remained especially critical. The new applications using carbon dioxide as feedstock. pean Parliament (EP) on Jul. 8 ap- tion of disputes a key condition of German chemical industry associa- Representatives from political bodies and research proved a compromise resolution to the trade agreement, European tion (VCI) – Europe’s largest produc- Contact institutes will be on hand at the event to present and accelerate sagging negotiations on skeptics fear US multinational com- ers’ grouping – was vehement that Dominik Vogt discuss the latest national and regional policies, strategies the Transatlantic Trade and Invest- panies will try to challenge Euro- REACh not be excluded from the Conference Manager, and visions. Do not miss the latest technological and Organisation, ment Partnership (TTIP) between the pean food and environmental laws regulatory cooperation with the US, political developments from this very impressive and Exhibition, Sponsoring EU and the US. The Parliament also on grounds they restrict commerce. as the resolution proposes. While dynamically evolving future-oriented field. +49 (0)2233 4814-49 voted, 436 to 241, to proceed with the To the disappointment of Eu- EP president Martin Schulz said the [email protected] More information at www.co2-chemistry.eu negotiations. It is not involved in the ropean chemical producers, the ISDS compromise version provided talks but has the power to reject any so-called Investor-State Dispute for a transparent body to rule on Venue Haus der Technik e.V. nova-Institut GmbH final agreement. Under the EP’s plan, Settlement (ISDS) mechanism had disputes, the Green parliamentary Hollestr. 1 courts arbitrating disputes between been excluded from negotiations in faction said it still allowed foreign 45127 Essen, Germany Chemiepark Knapsack Industriestraße 300 companies and foreign governments an effort to speed up the talks. With investors to use a separate layer of Tel: +49 (0) 201/18 03-1 50354 Hürth, Germany www.hdt-essen.de would be staffed by publicly appoint- the new EU resolution it could be jurisdiction other than the domestic ed, independent professional judges, reinstated. legal system. (dw) and hearings would be open to the Following the EP vote, interest public, rather than private. groups on both sides of the ISDS is- ▪

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European Plastics in Crisis Epic Supply Shortage Erodes Converters’ Confidence

ntil recently, most chemical players outside the petrochemicals segment level,” according to Alexandre Dan- probably took scant notice of the upheaval in the European plastics gis, director general of EuPC. “We really need to understand what is Uproduction market. So when BASF in mid-May declared force majeure going on,” he says. If there is a need (FM) for ethylene-oxide based products in its Care Chemicals portfolio due to a to import more polymer from out- captive shortage of the ethylene derivative (EO) it was a wake-up call. side Europe, how can this be done? While buyers feel they are getting the short end of the stick, European The FM has since been removed, tion (EuPC) point to 41 shutdowns at producers of standard thermoplas- and business engines in the Care European petrochemical plants in tics who compete with players in sector are once again humming. But the past six months, compared with lower-cost regions such as North the growing number and frequency 26 for the whole of last year. America and the Middle East, still of plant outages and the shortages The list of companies declaring see themselves hard pressed, de- they have caused has shaken plas- FM reads like a Who’s Who of the spite lower input costs. The relief in tics buyers’ confidence that they commodity plastics production sec- raw materials prices has not been will be supplied on time and thus tor, including alongside BASF, the felt in all downstream markets, they be able to meet obligations to their likes of Ineos, LyondellBasell, Sabic, point out. As the price of one precur- own customers. Total, Shell, Repsol, Versalis, Vin- sor comes down, another goes up. Buyers active in packaging, com- nolit, Vestolit and Kem One (the for- When supply tightens, prices tend pounding, masterbatch or other mer Arkema PVC business). to firm, but how much a plastics downstream applications once took producer can improve its margins temporary outages in their stride, Cracker Closures Cause Mayhem depends in part on the degree of while at the same time keeping a integration, the argument goes. On wary eye on the developments. Now Reasons for the outages are many. another front, the deterioration of © pablographix - Fotolia.com they tremble when opening commu- Often, they have followed cracker the euro has compounded the Euro- nications marked “urgent.” closures. These are easily explained pean plastics sector’s woes. – no ethylene, no polyethylene. Oth- capacity, but the unexpected surge – banded closer together to voice Additionally, the alliance prom- Lured by the sound of cash being First Half Year Sees 479 Outages er glitches, including those at the in demand this year left them un- their concerns more forcefully. As ised to review the possibility of rung up at competitors on the other Shell Deutschland Oil cracker at prepared to run capacities flat out. the tightness showed no signs of joint purchasing platforms and help side of the pond – thanks to cheap What earlier this year was only sus- Wesseling, Germany, and the Total Plastics buyers’ delayed reaction abating soon, EuPC established the members seek legal action against shale gas-derived feedstock, many picion now seems to be official. The cracker at Lavéra, France, in spring to the steady decline in oil prices Polymers for Europe Alliance to their polymer suppliers for false European players have been casting first half of 2015 was the worst for have been blamed on fire. in the second half of 2014 also has fight back against the spate of FMs force majeure declarations. Going a long glance at prospects for build- forces majeure in the past decade. Sometimes justification for the come in for criticism. When con- it said it doubted were legal. forward, the platform also will in- ing new plants in the US. This vision Figures published by London-based FM is simply unforeseen techni- verters woke up and began to build In a statement headed “From Act vite European converters to rate was blurred temporarily by the oil chemical news and intelligence ser- cal problems or equipment failure. up inventories ahead of price rises of God to Act of Shareholder,” the their polymer suppliers on specific price plunge, but as Europe has not vice ICIS show 479 outages from While plastics converters believe down the road, supply quickly dried alliance said it planned to provide criteria, including adherence to “ba- benefited, many companies are pull- January to June – twice the number that some of the outages could reflect up, some commentators say. members with detailed information sic commercial and ethical rules.” ing out their calculators again. reported for the 2014 period and their suppliers’ desire to keep the on the current polymer market and A study on the aging of polymer For their part, buyers fear that well above the previous peak of 375 market tight to support prices, trend Turbulence Reaches ‘Epic Proportions’ through EuPC’s network of national production sites in Europe also has more investment by plastics pro- in 2011, the year of the Fukushima trackers offer other analyses. One is associations assist polymer buyers been placed on the agenda. ducers abroad could lead to even near-meltdown. that European producers have not As, in spring, market turbulence – some of which it said were facing worse European polymer shortages Undoubtedly excluding the “mere” budgeted enough for maintenance, reached what some called “epic bankruptcy due to insufficient supply Converters’ Confidence at a Low Level in future. inability to supply a certain product mainly due to cost considerations. proportions,” Europe’s plastics con- – in requesting suspension of certain on time, figures published by the Eu- Most plants, the interpretation goes, verters – led by packaging produc- EU import duties when sourcing ma- Confidence of plastic converters to- Dede Williams, freelance ropean Plastics Converters Associa- are geared to operate at 80-85% of ers in Germany, France and the UK terial from outside the region. ward their suppliers is at a “very low journalist, Frankfurt, Germany

Lego to Boost R&D for Sustainable Materials BASF Opens Online Store on Alibaba

Lego, Danish manufacturer of the Knudstorp said the group already quarters in Billund, Denmark, where reduce the products’ impact on the BASF has opened its first online polyamide and the polyurethanes popular plastic bricks for toy ap- has taken important steps to reduce employees will work toward finding planet, the Danish group said. store especially for the Chinese precursor MDI to pigments and dis- plications, set aside 1 billion Danish its carbon footprint and leave a posi- alternative materials. Satellite func- As an example of existing coop- market on the business-to-business persions, nutrition and health in- Krone for research, development and tive impact on the planet by reduc- tions are planned to be set up in oth- erations, Kundstorp pointed to the platform Alibaba, becoming one gredients. Its platform also supports implementation of new, sustainable, ing the packaging size, introducing er countries, and the center also will Climate Savers partnership Lego of the first multinational chemical small retailers of fuel additives and raw materials for manufacturing as FSC–certified packaging as well as collaborate and develop partnerships signed with WWF in 2013, which has companies to have a presence there. emissions treatment equipment. well as packaging the play materials. investing in an offshore wind farm. with relevant external stakeholders targets on developing a sustainable One of its goals is to attract more Zheng Daqing, BASF’s Senior Vice President and CEO Jørgen Vig “Now we are accelerating our fo- and experts. Lego manufactured materials strategy and was renewed business from small and medium- President, Business and Market De- Knudstorp said this is a major step cus on materials,” he added. 60 billion of the plastic elements in this past spring with a view to better sized companies. velopment Greater China, said SMEs for Lego on the way to achieving As part of the effort, a Lego Sus- 2014, and finding alternatives to the assessing the overall sustainability The German group will begin account for 99% of all companies in its ambitious goals for sustainable tainable Materials Center will be materials currently used, which it and environmental impact of new trading on Alibaba with a wide China, and contribute 60% to the materials. established this year at group head- did not specify, would significantly bio-based materials. (dw) ▪ range of products, ranging from gross domestic product. (dw) ▪

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Bio-based Economy: Potential Benefits and Risks Need for Further Action to Realize the Full Potential of the European Bio-based Economy

wo trillion euros in annual turnover, 22 million jobs employing 9% of the in 2011, but the standards required European workforce and growing — the European Commission envisions for developing such a label are still in discussion. This starts with the Ta bright future for the European bioeconomy. However, critics paint some very basic question of how to deter- dark clouds into the picture. Although Europe is strong in research and develop- mine the bio-based share. Content ment, finding large bio-based industrial plants remains a difficult task. Experts of bio-based carbon? Or is oxygen counted as well? Are we looking at recognize a “valley of death” between scientific excellence and commercial success. atoms or at weight percent? It’s a complicated discussion. With the ecolabel index growing toward 500 A growing number of large invest- Between the European Regional different labels worldwide, estab- ments is made outside Europe, Bio- Development Fund (ERDF), the lishing an assertive one would be Amber’s succinic acid plant being European Social Fund (ESF), the no small feat. only one example. Although the acid Cohesion Fund (CF), the European had been produced in large scale in Agricultural Fund for Rural Devel- Mandates And Bans France since 2010, a new facility opment (EAFRD) and the European for 30,000 t of the acid was built in Maritime & Fisheries Fund (EMFF), Mandates and bans are another Sarnia, Ontario, Canada. “Lack of in total there is €80 billion to €100 means for influencing markets. Bra- finance” is one reason frequently billion available. The bio-based zil was the first country to establish cited when decision-makers are economy is eligible for parts of all ethanol mandates for fuel 40 years asked about the sluggish growth of of them, as it is such a diverse topic. ago, which certainly contributed the European bioeconomy. Financ- It is the explicit goal of the EU to to becoming a major player in the ing experts counter that there is develop close synergies between Ho- world bioethanol market. The idea enough money available and that rizon 2020 and ESIF. For applicants, caught on, and ethanol mandates the challenge lies in finding the this means they can tap into both are the norm today in many coun- funding. Venture capital is still an sources at the same time, albeit with tries. important source of funding, al- the constraint that no cost item can Italy set a positive example of though the global financial market be funded twice. - Fotolia.com © weerapat1003 how to get maximum positive ef- crisis left its mark on the business. Accompanying Horizon 2020 fect out of the ban of a product. Before 2009, a lot of venture capi- the European Investment Bank is channeled preferably into fuel market pull with its BioPreferred a database that caters to the needs Thin, single-use, nonbiodegradable tal went into businesses less than launched the InnovFin program to production, leaving behind those program, which is managed by of public procurement staff, and plastic carrier bags such as those 3 years old. After the crisis, more facilitate and accelerate access to companies that compete for biomass the US Department of Agriculture Europe’s Green Public Procurement from the supermarket’s produce mature companies — 4 years and finance for innovative businesses to manufacture bio-based chemicals (USDA). This program requires fed- initiative works in this direction, too. section were forbidden in 2011. A older — are preferred by venture in Europe. The financing tool offers and materials. A level playing field eral agencies to prefer items with However, both are wholly voluntary biodegradable model replaced them capitalists. loans and guarantees from €25,000 for all industries is therefore top- the highest percentage of bio-based and rely on the awareness of the in- and was used as a vehicle of educa- for small and medium-sized enter- most on the wish list of all those in- content when the purchase exceeds dividual buyer. tion: Slogans were printed on the Financing Bioeconomy: Finding the Funding prises (SMEs) to €300 million for volved, both in industry and organi- $10,000 per year. In addition to the preferred bags that prompted customers to large caps. zations like the German Bioeconomy Critics accuse the USDA of dis- procurement program, there is reuse the bags to collect their or- At the interface between private Council. torting the market, but European also the USDA Certified Biobased ganic kitchen waste. This awareness and public funding there is the Bio- European Policy Needs to manufacturers would love to see a Product label. This indicates that campaign was a huge success. As Based Industries Joint Undertaking Enable Long-Term Planning Creating Market Pull by similar program hereabouts, where the product has been tested to de- a result the use of single-use bags between the European Union and Public Procurement and Labeling public authorities spend about €2 termine its bio-based content and dropped by 50% and many con- the Bio-based Industries Consor- The other important factor that trillion on goods and services an- has met the established minimum sumers started to collect biowaste tium. This public-private partner- is considered a roadblock for bio Other than for biofuels, market pull nually. The German agency for re- content. It is not restricted to prod- in their kitchens for the first time. ship with €2.7 billion from private economy is European policy. There is missing in Europe. The US has newable resources (Fachagentur ucts from US companies — Euro- The quality of the biowaste also in- investors and €975 million of EU is a general agreement among all successfully created considerable Nachwachsende Rohstoffe) provides pean companies can apply for it, creased. The resulting compost was funds operates under Horizon 2020. players that Europe urgently needs too. A label should provide consum- contaminated with fewer nonbio- Horizon 2020 is the EU’s strategic a change in policy to keep up with Dechema Trend Report: ers with clear information on the degradable bags as the consumer framework for research and innova- worldwide competition. Long-term The article is based on a trend report commissioned by Dechema and written by interna- environmental performance of the received only compostable ones. tion for the years leading up to 2020 planning reliability is what inves- tional trade journalists. Dechema brings together experts from a wide range of disciplines, product and guide their purchas- And there were more advantages: with a budget of €80 billion. tors seek most and what they are institutions and generations to stimulate scientific exchange in chemical engineering, ing behavior toward sustainable As fewer single-use bags went into Complementary to Horizon 2020, currently lacking in Europe. process engineering and biotechnology. Dechema is globally known as the organizer of choices. circulation, the risk of littering was the EU launched five structural and The renewable energy directive Achema. The world forum and leading trade show for the process industry will again take The European bioeconomy would lowered. If biodegradable bags end- investment funds (ESIF), which are is effective until 2020 with no de- place June 11-15, 2018, in Frankfurt, Germany. profit from such a label, too, as the ed up in the sea, they decomposed intended to push less-developed cision in sight on what will be be- Organization for Economic Coopera- quickly and posed no risk for fish 2 www.achema.de regions to economic flourishing. yond this date. Until then biomass tion and Development (OECD) stated and marine mammals. (rk) ▪

On the Way to the Internet of Everything New Technologies Will Make It Possible to Integrate Intelligent Systems into Everyday Objects

he motto of the 11th Plastic For one example, printed sensor Experts assume that the new Electronics Conference is systems that are integrated into the technologies can reach the market packaging for delicate drugs or food quickly. On one hand, they will make T“Enabling the Internet of Eve- can be used to document seamless it possible to integrate intelligent rything”. The conference will provide a adherence to the cold chain. These systems into everyday objects like vital forum for the full scope of organic kinds of “smart” systems can be textiles, home furnishings, and pack- made from a wide range of mate- aging. “Plastic” electronics create the electronics. It will take place on Octo- rials – from plastic sheets to glass conditions for continuously making ber 6–8, 2015, in Dresden, Germany, bottles to textiles. electronic systems smarter, thinner, the same time as SEMICON Europa and ultimately even capable of being From Vision to Reality integrated or implanted in clothing. 2015. More than 400 exhibitors and On the other hand, the new technolo- over 6,000 professional visitors from Ideas that will reach much further gies could perfectly satisfy the indus- around the world are expected to at- into the future than these applica- try’s desire for multifunctionality at tions will be discussed at the 11th relatively low cost. It’s worth it: Sen- tend Europe’s leading semiconductor Plastic Electronics Conference. sors are an essential component of industry trade fair. That is because heterogeneous in- these “intelligent” everyday objects tegration processes today allow the and market researchers predict that processing power and miniaturiza- 100 million pieces will be anywhere The Plastic Electronics Conference tion of traditional silicon chips to and everywhere by the year 2020. and SEMICON Europa 2015 are the be combined with other functional- Making this vision a reality, how- only events in the world that bring ities, including large-area sensors ever, will require manufacturing pro- new technologies like printed, flexi- or systems for harvesting energy cesses that allow for improvements ble, organic, and large-area electron- segments share a common future, research and development to the multi-functional systems on a flex- from a wide range of sources. Tech- to “plastic” electronics components’ ics together in the same place with this year’s conference program will marketplace. ible substrate would be useful in nologies like these make it possible performance and reliability. Integra- the semiconductor industry’s entire also reinforce that combination. The technologies that have been many areas and therefore applies to turn a vision into a reality that tion and packaging methods will be traditional value-added chain, from Until now they have usually been developed in this new field are in- to megatrends like the internet of will widely expand the internet of needed to introduce silicon chips materials and equipment to chip discussed separately and the rea- deed attractive and they will ad- things, wearable electronics, smart things and services. That is why the (microcontrollers, for example) into manufacturers and important clients. son is that “plastic” electronics are vance the entire industry. Combin- buildings, and ambient assisted liv- theme of this year’s conference is flexible, elastic electronic systems. Because it is only now becom- very new and innovative. This is a ing conventional semiconductor ing as well as traditional industries “Enabling the Internet of Every- ing clearer that these two industry field that is only just shifting from chips with new, smart sensors or like automotive engineering. thing”. Continues Page 7 ▶

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A Game-Changer

◀ Continued Page 1 and products. For example, Procter & Gamble has committed to a 2020 Our specialty chemicals enable in- goal of replacing 25% of petroleum- dustry to address major market based raw materials with sustain- needs, such as improved solvency ably sourced renewable materials for better hard-surface cleaners; lu- in its products. bricant base oils with improved sta- Elevance is working with indus- bility and fuel economy; detergents try to address industrial and con- which can be more concentrated sumer demand for improved perfor- and clean better in cold water; and mance and sustainability by utilizing unique monomers for bio-based renewable feedstocks and advanced polymers and engineered plastics, sustainable manufacturing pro- including long-chain polyamides, cesses to produce novel renewable polyurethanes and polyesters. building blocks and ingredients that enable performance not previously What are the main drivers for the possible. market growth in these areas? What is your strategy to partici- B. Kumpf: The critical industry needs pate in this growth? and trends we are addressing are driven by regulations, customer B. Kumpf: Elevance uses a collabora- demand and sustainability goals. tive business model that is designed Manufacturers across industries to enable innovation while reduc- continue to look for alternative ing the investment and risk that © acinquantadue - Fotolia.com ingredients in an effort to comply accompany it. We have established with ever more vigorous environ- a number of collaborations that lev- mental, health and safety regula- erage sales and marketing exper- Our specialty chemicals provide vanced sustainable manufacturing B. Kumpf: The chemical industry Coatings business, where we are tions. These manufacturers must tise, distribution channels, technical functional attributes that custom- processes, we can address society’s serves customers and consumers working with specialty monomers meet these increasingly challeng- know-how, product and application ers desire but that have not been demand for sustainable lifestyles. worldwide, and the drivers we dis- for engineered polymers as well as ing regulatory demands without development expertise and manufac- commercially available. We produce We’re doing it today, and will con- cussed earlier are impacting all of ingredients for coatings, adhesives, compromising performance and turing infrastructure. The variety of these specialty chemicals at world tinue to advance the performance those customers. We have focused sealants and elastomer applications. limit the use of materials with un- critical market needs that can be ad- scale and sell them at cost-effective, We have also introduced novel syn- favorable environmental profiles. dressed by solutions enabled by our competitive prices. Our product thetic lubricant base oils in our Lu- Finding suitable alternatives with technology create significant growth characteristics are driving rapid bricants and Additives platform. a sustainable footprint that exhibit opportunities that we have only be- adoption by customers looking for We deliver specialty chemicals that exceed high-performance characteristics gun to address with our current col- solutions to their product perfor- the performance of existing products while What is your vision for Elevance? customers demand, however, is no laborations. We seek to develop new mance needs. leaving a smaller environmental footprint. B. Kumpf: We are working to make How could your model reshape the Elevance one of the leading global way people think about chemical specialty chemical companies, cre- We can do things that have ingredients? and cost effectiveness of our prod- our efforts around three market- ating solutions that will help our ucts going forward. It represents facing platforms: Consumer and customers address society’s de- never been done before — today. B. Kumpf: Our focus is making better- an exciting future for the chemical Industrial Ingredients, where we mand for better, more sustainable performing specialty chemicals to industry and society. are addressing opportunities in lifestyles. improve the products that industry detergents, cleaners and solvents, and consumers use every day and In which areas in terms of appli- personal care products, and per- Dr. Ralf Kempf, easy feat and has been the basis of and expand existing collaborations enable a more sustainable future cations do you see above-average formance waxes. Another platform Dr. Michael Reubold, industrywide research and develop- that leverage complementary capa- for everyone. It’s clear that we can growth opportunities? is our Engineered Polymers and CHEManager International ment efforts. bilities and assets that will accelerate make a difference. We can do things For manufacturers of products growth for us and our partners. that have never been done before and those who supply ingredients, — today. industry trends provide a positive What are Elevance’s core technolo- We are working with others in outlook for sustainable products. To gies? the industry to deliver a new cate- meet the needs of a growing number gory of solutions, Renewicals, which of shoppers who choose products B. Kumpf: We produce our specialty are products that exceed the perfor sustainability as well as perfor- chemicals using proprietary produc- formance of petrochemical-based mance, consumer goods industry tion processes based on metathesis products and do so with a smaller leaders, such as Procter & Gamble, catalysis. Elevance’s biorefinery uses environmental footprint. Tesco, Unilever and Walmart, have a highly efficient and selective me- We have already commercialized taken ambitious and innovative tathesis catalyst to break down natu- the first Renewicals and have many steps to encourage their suppliers to ral oils and recombine the fragments others in development. By combin- offer more sustainable ingredients to produce high-value chemicals. ing renewable feedstocks and ad-

◀ Continued Page 6

Conference Highlights

The Plastic Electronics Conference 2015 will address all these questions in discussions covering three areas: technology/materials, manufacturing, and business cases. The main speakers are well-known experts like Prof. Donal Bradley of Imperial Col- lege London, one of the co-inventors of organic electronics. The topics cover a wide range including organic photo-detectors and image sensors on a plastic substrate, organic light- emitting diode (OLED) manufacturing and measuring systems for quality control in roll-to-roll processing, and new transfer methods for manu- tists from well-known research in- the Innovation Village will integrate facturing flexible displays. stitutions like Fraunhofer FEP and founders with funders in this com- In his presentation, Andreas Fraunhofer ENAS will also give pres- prehensive industry gathering. In Schaller of Robert Bosch will ex- entations in Dresden that will pro- all, the Plastic Electronics Confer- plain which options his company is vide a glimpse into current research. ence 2015 will be the perfect launch already using for additive produc- The Plastic Electronics Confer- pad for strategic partnerships. tion and printed electronics. Dres- ence 2015 will be a unique chance In developing new technologies den-based Heliatek will present its to explore the opportunities that in- and products, organic electronics organic solar films. Arne Fleissner, novations in the field of organic and can also build on companies in the development engineer with Osram large-area electronics offer. Hetero- semiconductor industry’s traditional OLED, will look at the status and geneous integration of “plastic” and value-added chain. Their long expe- progress in OLED lighting. In his key- traditional components is another rience can help significantly reduce note speech, Mark James, director of milestone in that process. Semicon the distance between lab and fab. research and development at Merck Europa 2015 will offer ideal op- Chemicals, will present concepts for portunities for exchanges among 22 Mr. Stephan Raithel high-performance semi-conductor specialists and for networking, in- Semi Europe, Berlin, Germany manufacturing with organic sub- cluding across specialized fields. Tel.: +49 30 3030 8077 0 stances and with printing as well as Research, economics, and policy [email protected] photolithographic processes. Scien- will all come together. Additionally, www.semi.org

+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + Page 8 CHEMICALS CHEManager International 7-8/2015

Sustainability: Lessons from the Cosmetics Industry Finding the Right Balance of Economic Progress, Environmental Care and Social Responsibility

lmost every day, there are news stories about environmental damage L’Oreal made its “Shared Beauty For and social inequality. Whether it is illegal immigrants attempting to All” commitment in October 2013. The cosmetics multinational has Aenter Europe, erratic weather conditions, deforestation and depletion of pledged to make all its products natural resources, endangered species, overpopulation, or climate change, these have an environmental or social are all stories (directly or indirectly) about sustainability. The challenge for the benefit by 2020. More ambitiously, it plans to reduce its environmental business world is how to make a difference to these issues, or rather encourage footprint by 60% whilst reaching 1 sustainable use of resources so they are ‘part of the solution’. This article highlights billion additional consumers. It has how the cosmetics industry is playing its part in sustainable development. set individual targets for carbon emissions, water consumption, and waste reduction. To many, sustainability and cosmetics are two terms that do not Green Formulations sit well together. Indeed, at a summit organized by Organic Monitor, One of the areas receiving consider- one environmentalist questioned able attention in the cosmetics in- the term ‘sustainable cosmetics’. dustry (as well as related industries, He remarked, ‘is it me, or does no such as cleaning products) is green one else see this as the elephant in formulations. A growing number of the room….how can you call van- Amarjit Sahota, Organic Monitor cosmetic and ingredient firms are ity products like cosmetics sustain- shifting away from petroleum-based able?’ Whilst he was not entirely chemicals to plant-based ingredients right, he had a point. Human con- World’s Most Ethical (WME) Com- for personal care and home care for- © Africa Studio - Fotolia.com sumption is far exceeding the rate panies list. Cosmetic companies on mulations. Rather than environmen- of replenishment of the planet’s re- the WME list were L’Oreal, Shiseido, tal issues, the major driver of this sources. Should the Earth’s resourc- Colgate-Palmolive, Henkel, Kao Cor- trend has been consumer concerns. under scrutiny in recent years be- ingredients according to fair trade times of its average employee’s sales not be re-directed to more mean- poration, and Natura Brasil. Another Consumers are concerned about cause of their impact on marine practices. It received recognition for ary. Natura Brasil, arguably the most ingful products then cosmetics? study by Corporate Knights listed the possible harmful effects of syn- ecosystems. A number of American its ethical sourcing practices when it sustainable cosmetics company, is a The role of cosmetics in society the 100 most sustainable corpora- thetic chemicals in their products. states are introducing legislation to received the Sustainability Pioneer pioneer in this respect as it is looking is often understated. Many products tions in the world; L’Oreal, Johnson In cosmetics and toiletries, they are prohibit the manufacture and sale of runner-up award at the 2014 Sus- to integrate economic aspects into like soap, shampoo, and toothpaste & Johnson, Unilever, Henkel, and looking to avoid parabens, phtha- personal care products with micro- tainable Beauty Awards. environmental and social impacts. are an essential part of basic hy- Natura Brasil were listed in the top lates, petroleum oils and minerals plastic exfoliants. Green alternatives Some companies have set up giene. Other products, such as sun 100 this year. The Corporate Knights and aluminium salts. They also look to microbeads are being developed foundations to promote good causes. Future Outlook care creams and rash lotions, play methodology involves evaluating to avoid sodium lauryl sulphate from corn, jojoba, wood cellulose, Group Boticario, the second leading an important role in skin protection corporations on a number of envi- (SLS) and sodium laureth sulphate and natural minerals. cosmetics company in Brazil, set up The global population is projected to and health. Even make-up products ronmental, social and governance (SLES) in their personal care and The use of green ingredients also the Boticario Group Foundation for reach 9 billion by 2050. This growth like mascara and foundations con- performance measures. home care products. Evidence of brings fresh challenges to the cos- Nature Protection in 1990. The foun- brings benefits to consumer good tribute to society by raising the con- this is from a Consumer Insights metics industry. Unlike petroleum- dation protects over 11,000 hectares companies in that they have a larger fidence and improving well-being of Environmental Impacts study by Organic Monitor in 2014 based chemicals, they are suscep- of atlantic rainforest and cerrado, pool of customers, giving potentially the wearers. Going back to ancient (fig. 1); 90% of UK consumers buy tible to supply fluctuations, greater two of the most endangered biomes higher sales and thus, profits. How- civilizations like that of the Egyp- According to the Brundtland Com- natural and organic cosmetics be- price volatility, as well as traceabil- in Brazil. The foundation has do- ever, companies like Unilever and tians, dyes were used as lipsticks mission, there are three pillars cause they wish to avoid synthetic ity issues. At a recent Sustainable nated over $10 million in nature L’Oreal have realized the limita- and oils as fragrances. Thus, cos- of sustainability. However, most chemicals. Of the chemicals they Cosmetics Summit, a buyer of such reserve programs, enabling the dis- tions of uncontrolled consumerism. metics have been and always will cosmetic and ingredient firms are look to avoid, parabens were top of materials stated they prefer to rely covery of 69 new species of plants They have set targets to reduce the be an integral part of human society. focusing on their environmental the list; 63% of UK consumers men- on a number of sources because of and animals. amount of resources they use, waste aspects. Figure 1 shows the vari- tioned parabens in 2014, up from these issues. Few have gone further and in- they produce, whilst continuing to Sustainability in the Cosmetics Industry ous ways the cosmetics industry is 34% in 2007. vested in equitable customer-sup- expand their business. They have re- addressing its environmental foot- This development has led to a Social and Economic Impacts plier relationships and social invest- alized that sustainability holds the However, how sustainable is the print. Most attention is going to raw growing array of green materials ment. The one area that needs most key to sustainable business growth; cosmetics industry? How is the cos- ethical sourcing, green formulations, being introduced that replace con- In terms of social impacts, ethical attention is the economic impact: the days of producing and consum- metics industry meeting the sustain- and sustainable packaging. tentious synthetic chemicals. For sourcing and fair trade practices indeed, not many companies could ing with no concern for tomorrow ability challenge compared to other In general, the larger companies instance, a number of plant-based are common. A growing number respond to the question: “how is are long gone. These companies industries? Some may be surprised take a wider view; they also look surfactants have come into the of cosmetic companies are imple- your company having a sustainable are not having sustainability as a to know that it is doing fairly well. at reducing resource usage, waste market; one example is the EcoTain menting ethical sourcing programs, economic impact?” stand-alone department, but inte- Cosmetic and cosmetic ingredi- reduction, as well as operational range of sugar-based surfactants of especially if they are getting raw One reason is that many equate grating it into every aspect of their ent firms are regularly featured in efficiency. It is common for such Clariant. Many cosmetic companies materials from developing coun- economics with profits – a term not business. In this respect, there are green lists of global enterprises. companies to take a systematic ap- have also removed parabens from tries. The Swedish vegetable oils commonly associated with sustain- many green lessons to learn from Six cosmetic companies were proach to sustainability, setting tar- their formulations, replacing them company AAK is a pioneer in set- ability. However, there are many an industry that was once associ- listed in Ethisphere Institute’s 2015 gets for various areas. For instance, with green preservative systems. ting up ethical sourcing projects for ways companies can address their ated with ‘vanity products’. Environmental issues are also shea butter. Widely used in cosmetic economic impacts. One way is to playing a role in the shift towards products, shea butter is produced in share wealth creation with stake- Amarjit Sahota, president, EN Y V M IR green ingredients. For instance, the Sahel region of Africa. The UK holders - and not just share-holders. Organic Monitor, London, UK O O N N O jobs, natural M polyethylene beads - also called organic cosmetics brand Neal’s Yard A few American companies are re- C E E prosperity, sustainable environment, ▪ Ethical sourcing of ingredients N microplastic exfoliants - have come Remedies is sourcing a number of its ducing income inequality by capping wealth, economy renewable T creation resource ▪ Organic and sustainable executive salaries. For instance, the production methods Chemicals 2007 (%) 2014 (%) natural food retailer Whole Foods 22 [email protected] sustainable ▪ Green chemistry / formulations development Parabens 34 63 Market caps its executives pay at 19 www.organicmonitor.com ▪ Sustainable packaging social local Sodium Laureth / Lauryl Sulphate (SLS, SLES) 30 32 equity environment ▪ Carbon & water management Petrochemicals 8 30 Sustainability in the Cosmetics Industry ▪ Operational efﬁciency This article has been prepared by taking excerpts from “Sustainability: How the Aluminium salts 16 23 ▪ Waste management Cosmetics Industry is Greening up”, the first book on sustainability in the beauty industry. social inclusion, Phthalates 2 19 communities The first edition, published by John Wiley & Sons, is edited by Amarjit Sahota. Lanolin 3 17 Development in sustainability, especially green formulations, will be featured in upcoming Artificial perfumes 7 15 sustainability summits organised by the author of this article: SO TY CIE Other 16 7 ▪ Sustainable Cosmetics Summit Latin America, 28-30 September, São Paulo © CHEManager International Don‘t know / can‘t think of their names 31 12 ▪ Sustainable Cleaning Products Summit, 20-21 October, Paris ▪ Sustainable Cosmetics Summit Europe, 21-23 October, Paris Fig. 1: Chemicals that UK buyers of natural and organic cosmetics look to avoid, 2014 Fig. 2: The Ecological Aspects of Sustainability Learn more about the upcoming events at www.sustainablecosmeticssummit.com Source: Consumer Insights Report (Organic Monitor) Source: Sustainable Cosmetics Summit (Organic Monitor)

Azelis Appointed as European DKSH Acquires Andreas Jennow MWV Specialty Chemicals to be

Distributor for WeylChem Swiss chemicals distributor DKSH sonal care, pharmaceutical and food Named as Ingevity has acquired specialty chemicals industries. It also offers sourcing Azelis has been appointed as exclu- ensure a more dedicated mode of distributor Andreas Jennow, a ma- services for specialty products from Ingevity will be the new name of the sulting in two independent, publicly sive European distributor by Weyl response than we have currently jor supplier of raw materials to the numerous markets across Asia, Eu- MWV Specialty Chemicals division of traded companies. Chem to offer its TAED (peroxide been able to offer directly with the Nordic and Baltic countries. rope and the Americas. WestRock, a provider of paper and “The name speaks to our long- bleach activators) and specialty WeylChem team. We are confident The Swiss company said the buy Andreas Jennow, founded in packaging solutions. It will begin standing record of success and com- surfactants range, into homecare that Azelis will strengthen the cur- widens its geographic coverage in 1916, supplies a full product range transacting business as Ingevity on mitment to serving our customers and industrial cleaning (H&IC) mar- rent customer/ supplier relationship Europe, as well as complementing for the specialty chemicals and per- September 1. The business is slated through innovative products, pro- kets. The deal covers the whole of even further.” its strong position in Asia and con- sonal care industries. The company to be spun off as an independent, cesses and services. Our announce- Europe (excluding Italy, Greece and Marnik Tack, International Mar- tributing to the consolidation of the with activities in Denmark, Sweden, publicly-traded company around the ment is the first step in a compre- Iberia). ket Manager H&IC said, “We will market. Finland, Norway, Iceland, Estonia, end of the year. hensive plan to launch our brand, Vincent Bossert, Director Product work with WeylChem to develop With its Business Unit Perfor- Latvia and Lithuania reported net The separation is expected to be ex- and define our future as a separate Line Detergents for WeylChem said, new application ideas and exploit mance Materials, DKSH provides sales of around 30 million Swiss ecuted by means of a tax-free spinoff and independent company,” said “We are convinced that this change synergies in our range so far undis- distribution services for its clients francs and “sound profitability” in of the Specialty Chemicals business Ed Rose, president, MWV Specialty is beneficial to customers, and will covered.” (rk) ▪ and suppliers in the chemical, per- 2014. (dw) ▪ to shareholders of WestRock, re- Chemicals, about Ingevity. (rk) ▪

+ + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + A lot more www.chemanager-online. Logistics com/en/tags/logistics 7-8/2015 Logistics Page 9 A New SQAS Logistics Assessment Tackles Sustainability, Corporate Responsibility, Security and Technology

QAS is widely recognized as a SQAS Becomes Sustainable world-class system for the as- SQAS has incorporated several sus- Ssessment of the safety, health, tainability requirements. In broad environment, quality and security per- terms, SQAS 2015 has been expand- formance of logistics service providers ed in four main areas.

and distributors. Safety & Quality As- 1. The inclusion of CSR questions sessment System (SQAS) was created looks at issues such as: ▪ more than 20 years ago by the Europe- ▪ Social aspects, including non- discrimination, performance re- an Chemical Industry Council (CEFIC) views for employees, career plan- and had another renewal this year. ning, recruitment processes, etc. ▪▪ Fair business practices, including anti-corruption and bribery, anti- Since the last major revision of SQAS competitive practices, conflict of in 2011, several new best practice interest and fraud. guidelines have been developed and published by CEFIC in cooperation 2. References to new guidelines such with the European Chemical Trans- as: port Association (ECTA) and the Eu- ▪▪ Safe loading/unloading of road ropean Association of Chemical Dis- freight vehicles.

Transport Service Rail Operators ESAD (Distributors) Cleaning Stations Warehouses Total

1000 930

900 896 814

800 794 761

700 700 600 551

500 504 464 444 440

400 413 300 221

200 197 190 191 165 131 120 111 102 100 95 78 74 69 63 62 43 45 38 30 17 12 14 7 0 4 2009 2010 2011 2012 2013 2014

Source: CEFIC © CHEManager International © Rawpixel - Fotolia.com

Number of SQAS assessments per year Positive Trend is an initiative kicked off by the Middle East. Gulf SQAS is now un- CEFIC T&A representatives also tributors (FECC). At the same time ▪▪ BBS guidelines for drivers. chemical industry itself — is being dergoing a pilot program with the assisted the Association of Inter- other assessment systems that cover ▪▪ Safety risk assessments for SQAS is breaking its own records, watched in other parts of the world. participation of European asses- national Chemical Manufacturers corporate social responsibility (CSR) chemical transport operations. year after year. Last year saw a re- To some extent it is being taken into sors to supervise their local coun- (AICM) in China to organize a re- — such as the Together for Sustain- ▪▪ Investigation of transport accord number of 930 SQAS assess- new territories by chemical manu- terparts. accreditation training of assessors. ability (TfS) initiative — were created. cidents and incidents and root ments, 4% more than in 2013 (see facturers, as they want to be seen to Another MoU was signed with The December event in Shanghai The new SQAS questionnaires cause analysis. figure). In particular, there were more be operating to the same standards the Taiwan Responsible Care As- was attended by local assessors and have incorporated all of these new ▪▪ Safe working at height. assessments of transport service pro- of quality and safety at all their sites, sociation (TRCA) to develop a SQAS chemical company members. aspects. While those in the chemical viders, cleaning stations and ware- wherever they may be. scheme in this country. Represent- logistics sector might be aware of 3. Greater emphasis on security risk houses. The number of consultations CEFIC is providing assistance in atives from the CEFIC Technical Victor Trapani, SQAS manager, some of the new guidelines in best mitigation, the reporting of noncon- by chemical companies rose to 4,490 several parts of the world, often in & Accreditation Committee (T&A) CEFIC, Brussels, Belgium practice, particularly regarding formities and accident investigation. last year, the highest level since 2007. cooperation with similar local asso- assisted TRCA in the organization loading/unloading and behavior- ciations. It signed a memorandum of a SQAS training conference in based safety (BBS), the inclusion of 4. Additional questions look at the Growing with SQAS of understanding (MoU) in 2013 Taipei in December. The event was CSR issues may present something application and implementation of with the Gulf Petrochemicals and attended by local assessors, chemi- of a challenge, particularly for up-to-date technologies in opera- Europe’s experience with SQAS — Chemicals Association (GPCA) to cal company members and logistics 22 [email protected] smaller operators. tions and safety management. which, it should be remembered, set up a version of SQAS for the representatives. www.sqas.org

Ineos’ Grangemouth Ethane Storage Clariant Oil Services Wins BASF Commissions Plant for Tank on Track Statoil Contract Form Release Agents

With the help of four low-pressure With shale gas exploration li- Clariant, the Swiss specialty chemi- This will continue to strengthen BASF has commissioned a new thus are not required to carry an fans, Ineos has “raised the roof” on censes – including one covering the cals producer, has signed an eight- Clariant Oil Services’ position as a production plant for form release Aspiration Hazard label, BASF said. the new ethane tank it is installing area surrounding its Grangemouth year framework contract with major supplier in the oil production agents at its Staßfurt, Germany, site Since June of this year the petro- at its mammoth petrochemical com- complex – already in management’s Statoil to supply production chemi- chemicals market in the North Sea,” after completing successful trial chemical products have been re- plex at Grangemouth, Scotland – a pocket, the Swiss-based petrochemicals and services for the Johan he said. operations in July. The new facility quired to carry a label under the first step toward creating the infra- cals and plastics giant is hoping to Sverdrup oil field in Norway. The The largest offshore oil find in produces form release agents based new Globally Harmonized System structure to import US shale gas-de- produce its own gas and become in- contract, which took effect from the Norwegian continental shelf in on renewable raw materials as of Classification and Labeling of rived ethane. With the 330-t top now dependent of imports. However, op- Jul. 1, contains an option for a four- 30 years, the Johan Sverdrup field well as emulsions from renewable Chemicals (GHS). firmly in place, work is set to begin position to fracking across the UK is year extension option, totaling 12 is estimated to hold between 1.7 and non-renewable raw materials. BASF’s form release agents are on the internal structure of the tank, strong, and the Scottish government years. billion and 3.0 billion barrels of oil These facilitate the easy removal sold under the MasterFinish product which will be the biggest in Europe, earlier this year imposed a de facto In particular, said Frode Bekke- equivalents. When fully developed, of the concrete from its formwork name as part of the Master Builders measuring 56 m in diameter, 44 m moratorium on exploration until it stad, managing director of Clariant it is expected to produce 550,000 to while at the same time enhancing Solutions umbrella brand. in height and designed to hold more has time to study the environmental Oil Services Scandinavia, the highly 650,000 barrels of oil per day. the surface of precast concrete el- The new products provide ex- than 60,000 cbm of ethane. effects. contested bid process for the long- Statoil has been named operator ements and cast in place concrete. cellent surface quality, are efficient “We know that US ethane has Ineos is taking its case to the term contract shows the confidence for all phases of field production by Form release agents made from and easy to use, and lower con- transformed US manufacturing, residents of the areas at town hall Statoil has in Clariant’s capabili- the Johan Sverdrup partnership, renewable raw materials are being crete manufacturers’ production and now Scottish industry will ben- meetings and with offers to share ties to provide supply of innovative which consists of Statoil, Lundin recommended as an alternative to costs when applied correctly,” said efit as well,” said John McNally, chief the company’s profits from fracking. chemicals and services to meet their Norway, Petoro, Det Norske Olje- petrochemical-based agents, as they Herwig Heegewaldt, responsible executive of Ineos O&P UK. “This,” (dw) ▪ needs. selskap and Maersk Oil. (dw) ▪ are not classified as hazardous and for BASF’s concrete admixtures he said, “will secure a cost-effective business in Germany, Austria and supply of ethane for the next 15 Switzerland.

years, and give a sustainable base 70°W 50°W 30°W 6 H10°W 0° 4,32°E 10°E 50°E 70°E Philipp Kley, BASF’s senior vice

5 OH 60°N for Grangemouth for that time.” C president Construction Chemicals 60°N C H C H C H Y O U R H C3H6 3 6 3 6 3 6 C H 6 H Y M D While remarking that, “it is still C H C 3 6 3 6 C H O G R I Europe, said the group identified the H C C 3 6 3 6 C H E N K 6 3H C H C H 6 3 H PORTRT OFF T H I 6 3 6 C3H6 3 6 Y O U R D R E AT G early days on this project,” McNally C H5C2H I N K I N G B O T T L increasing demand for alternatives C H 3 6 3 45°N °N H 5 2 ANTWERPW P said plans for the liquefied gas im- 5 to mineral oil based release agents

4 C 6 H 3 Visit www.portofantwerp.com/en/chemical-cluster C 2 ports are on schedule to be deliv- H 5 at an early stage, and aligned its re- 30°W 20°W C 10°W 0° 4,32°E 20°E 30°E ered in the second half of 2016. search efforts accordingly. (dw) ▪

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Quantitative Supply-Chain Risk Management Research Project to Indicate and Measure the Effect of Supply-Chain Risks

ertainly it is no big secret that in the process industry supply chains are becoming more complex all the time. For example, parts of the value- Cadded chain that are outside a company’s core competencies or not particularly profitable are often carved out or relocated to low-wage countries. End customers expect immediate or just-in-time personalized goods delivery. The end-to-end supply chains created are highly networked systems, fragmented and operated by a large number of diverse companies in various regions with different political systems.

Prof. Ludger Bruell, Dr. Benedikt Scheckenbach, Bayer Technology Services Bayer (South East Asia) Pte.

The potential risks affecting these supply chains are growing steadily along with the complexity of these networks, though. Raw material supply bottlenecks, strikes, environmental disasters, regulatory changes and infrastructure problems are just a few of the risks that need to be taken into account. In addition to this, complex global supply Prof. Robert de Souza, chains are increasingly undergoing National University of Singapore optimizations that can have unexpected consequences on risks. Al- ments and calculate the effects on though initiatives to reduce stock the supply chain? levels have a positive influence on These questions were addressed working capital, for instance, they by the National University of Singa- also typically make supply chains pore (NUS) and Bayer Technology © Nomad_Soul - Fotolia.com more susceptible to risks. Services in a research project. The There are numerous examples goal was to find a method based on showing that these risks can have a mathematical model for indicating There are numerous established The first step was to model the the maximum monetary loss for a fit analysis to demonstrate the effect significant consequences for com- the effect of supply-chain risks and procedures for assessing risks. Typi- occurrence of the risks under con- given probability (for example, not of the various measures? And what panies forming part of these sup- enable these to be measured using cally, they involve making state- sideration using probability distri- more than $100 million in 95% of exact form should these measures ply chains. The most widely known appropriate indicators. The research ments about the frequency of oc- butions. Dozens of statistical func- all cases). Research is still ongoing take? For example, which storage is probably the fire in 2000 at the focused on typical supply chains in- currence and the severity of effects. tions (such as exponential, Gauss- to determine whether and how this locations would need to be expand- Philips microprocessor production volving basic production and supply Without doubt Failure Modes and ian and Weibull distributions) are concept can be transferred to pro- ed? And what additional quantities facility in New Mexico. Among other processes for manufacturing crop Effects Analysis (FMEA) is the meth- available to characterize the risk cess-industry supply chains. should they hold? Might there also things, this facility made the micro- protection agents (see figure 1 for od most commonly used in practice. parameters TTF (time to failure) Figure 2 shows a result for the be storage locations where I could processors for cell phone companies one of these networks). The supply Experts estimate the probability, se- and TTR (time to recovery). In most network in figure 1 by way of an ex- reduce stock levels without increas- Nokia and Ericsson. Ericsson trusted chains of two different products are verity and detection values for each cases, these parameters are easy to ample. In this case, the mean num- ing the risk to the supply chain? the predictions that microprocessor linked by joint use of the same pro- risk. By its very nature, this estimate model or estimate using historical ber of products sold and the average Scenario analyses can be used production would start again shortly duction resources for active ingredi- is approximate and subjective. To data from the companies involved unit costs derived on that basis were to answer these questions based and took no further action. Nokia’s ent production. make the procedure more objec- (e. g., failure statistics for plant com- analyzed. The graphic shows that in on the quantitative procedure de- supply-chain concept, on the other An overview of the results of this tive, the research team developed ponents, delivery reliability of sup- this example, the effect of strikes or scribed. This produces ideal mitiga- hand, was far more flexible and en joint research project is provided an improved FMEA process (by us- pliers) or public databases (e. g., for machine failures is negligible com- tion strategies that can be assessed abled another supplier to be brought below. Further research activities ing fuzzy set theory). This approach environmental disasters or strikes). pared with transport delays. in monetary terms. in immediately. As a result, Ericsson are required to validate the method is still inaccurate, is confined to the Software tools to simulate pro- recorded sales losses of $400 mil- and make it suitable for wide-rang- part of the supply chain under con- duction and logistics networks make Risk Mitigation Prof. Ludger Bruell, Bayer Tech- lion, while Nokia’s profits for the ing applications. sideration, and cannot provide an it possible to calculate the effect of nology Services; same year rose by 42%. adequate picture of the influence these risks on the entire supply To significantly reduce the risks of Dr. Benedikt Scheckenbach, Bayer Risk Identification and Assessment on the entire supply chain and the chain. The results are probability this specific network, consideration (South East Asia) Pte.; Questions and Problem-Solving Approach associated monetary risks. distributions for all state variables should be given, for example, to us- Prof. Robert de Souza, National Preliminary work by the NUS and within the supply chain, which are ing redundant logistics service pro- University of Singapore This issue throws up numerous other studies identified 110 differ- Simulation of Supply Chain Risks then analyzed using statistical in- viders and/or increasing stock lev- questions for entrepreneurs and ent risks that are relevant to sup- dicators such as mean, variance or els. However, this immediately rais- 22 Bayer Technology Services GmbH supply-chain managers. What risks ply chains in the process industry. To make genuinely quantitative skewness. The value at risk (VaR) es further questions: Which of the Leverkusen, Germany are my supply chains exposed to? These risks can be classified, for statements about the monetary ef- approach familiar from finance is conceivable measures are the most [email protected] Which of these risks are particular- example, into macro, industry and fect of risks on the entire supply another such factor. VaR describes effective? Can I produce a cost/bene- www.bayertechnology.com ly critical for my business success? company levels with relevant sub- chain, the research team developed Which supply chains are especially categories and summarized. Seven simulation processes based on sta- at risk? Can I put a monetary value of these risks were selected as be- tistical models and successfully on the individual risks? Can I meas- ing particularly relevant for the joint verified these using the network ure the effect of various improve- research project. examples.

Fig. 1: Two production networks with joint production facilities Fig. 2: Effect of risks on revenue and cost per item

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Less-Than-Truckload Networks European Market Flows with Network-Based Cross-Border Goods

he European market for less-than-truckload (LTL) services is characterized by rising competition and price pressure. A high-performance and well- Tstructured network of hubs and depots is necessary to effectively meet customer requirements and to fulfill agreed service levels. The study “Less-Than- Truckload Networks” conducted by Fraunhofer SCS in cooperation with Altana, © yulyla - Fotolia.com Dachser and KPMG aims to reach a higher level of transparency for the European cross-border LTL market.

LTL refers to individually labeled dry or staple goods and so-called groupage goods in shipments weigh- ing between about 30 kg and 3 t, very often palletized. These shipments cannot be efficiently deliv- ered directly to the consignee but require certain handling, including pickup and distribution by fleets of Christian Reichenauer, Fraunhofer Center smaller trucks and consolidation for for Supply Chain Services SCS long-distance connections between regional depots or hubs. Because of ing transport and cargo securing, the unique product features, espe- temperature control or traceability tonnage. To avoid empty return variety of smaller and regionally services on certain national and in- hofer Center for Supply Chain Ser- cially the chemical and pharmaceu- throughout the supply chain; this transports, back load probabilities oriented logistics service compa- ternational trade lanes. vices SCS, Nuremberg, Germany tical industries show a variety of re- makes a flawless IT infrastruc- play a significant role for logistics nies are also able to cope with the quirements for logistics service pro- ture indispensable. Very often it is companies. When regarding only challenges of this market segment Christian Reichenauer, group lo- 22 [email protected] viders, but also a high relevance for not allowed to transport and store chemical and pharmaceutical goods and can offer efficient and reliable gistics market intelligence, Fraun- www.scs.fraunhofer.de international logistics services. Be- chemical or pharmaceutical goods flows, a well-balanced trade lane sides bulk goods transports, which with other commodity groups, which with a back load probability of about are of enormous importance regard- makes dedicated logistics networks 80% is from Germany to France. In ing logistics services for chemical or systems indispensable. contrast, transports from Germany and pharmaceutical products, LTL Besides the typical customer to Italy show a back load probabi shipments are also relevant for this groups such as manufacturing com- lity of only 0.5%. To compensate for market segment. panies, the do-it-yourself market is this, the service providers have to an integral part (e. g., delivery of find solutions such as shifting to cus- Chemical and Pharmaceutical Industries paints and varnishes). The competi- tomer groups from other industrial tors providing LTL services for this branches. In 2012, the European chemical cluster are large network opera- and pharmaceutical industry (in tors, e. g., Dachser, DB Schenker or Trends Affecting Daily Business EU’s 28 nations plus Norway and Deutsche Post DHL. However, spe- Switzerland) generated a turnover cialized logistics companies such as Price pressure, especially in coun- of more than €850 billion, which is Talke, Chemion or Hoyer should also tries with high minimum wages, has a share of nearly 10% in the total be mentioned. the strongest negative influence on volume of all manufacturing in- the daily business of logistics service dustries in Europe. Around 33,000 European LTL Tonnages providers. Since transportation is a companies offered employment cross-border business, foreign com- for approximately 1.7 million peo- The total transboundary tonnage of panies are able to use their advan- ple. Regarding sales, multinational all manufacturing industries traded tageous cost structure and compete players dominate the market. Five between the 28 European countries with lower prices. An interesting of the top 15 companies, presented assessed in the study comes to more fact is that price pressure seems to in figure 1, are based in Germany, than 1.12 billion t/y. As not all goods have a lower negative effect in the three each in Switzerland and in the groups are equally manageable as northern European countries than United States. LTL freight, only a small part is re- in the rest of the continent. Another The product range of these com- garded as LTL potential. The volume trend showing strong negative ef- panies includes, for example, chemi- for pan-European cross-border fects is the rising competition on cal feedstock and specialties, mate- LTL transportation corresponds to international logistics markets. Due rial science, cosmetic and sanitary around 89 million t, of which ap- to the ongoing extension of the Eu- products, as well as health-care proximately 10 million t is attribut- ropean Union, especially long-haul Fig. 1: Top 15 chemical and pharmaceutical companies by revenue in Europe (2013) solutions and pharmaceuticals. The able to the chemical and pharma- services and the traffic between industry is characterized by a high ceutical industry. LTL hubs are affected by this trend. level of concentration with regard to As shown in figure 2, the hot spot A higher competition does also influ- the distribution of revenues. Large for cross-border LTL transportation ence and even intensify other trends companies with more than 250 em- in this industrial branch is in central like rising price pressure or lacking ployees represent 3% of all market and western Europe. By far Germa- cost efficiency. LTL service providers players but generate more than half ny is the largest exporter and im- have to find alternative strategies to of the sales revenues. Nearly two- porter of these products. The most escape from this price competition. thirds of market actors are small important trading partners inbound This development is in particular companies with a staff of fewer than and outbound are Belgium, France crucial for central Europe. 10 people. These firms only account and the Netherlands, covering ap- IT and new technologies have a for 2% of sales volume. proximately 60% of German imports strong positive influence on the lo- and about 38% of German exports. gistics industry. Logistics companies Sector-Specific Requirements Belgium and the Netherlands also see huge potentials in integrating have high potential outgoing trans- new technologies and applications. Since shipments for the chemical in- port volumes of chemical and phar- Buzzwords here include the Inter- dustry frequently contain sensitive maceutical goods, whereby the role net of Things, machine-to-machine or hazardous goods, it is essential of these countries as gateways for (M2M) communication, Big Data, to find logistics operators with the shipments from Asia or Arabia to cloud computing or mobile apps. necessary know-how and handling Europe is also a reason for this. Nevertheless it is important to skills. Topics like safety, security, The southeast European area make sure that investments in IT quality and environmental aware- shows comparatively weak demand. are well-planned and that the im- ness are of high importance here. The top 20 trade lanes (measured plementation is not too complex for Staff has to be appropriately edu- in potential LTL tonnage) represent the supply-chain partners, as well as cated, and the provider must be able only a small share of 2.6% of all to be aware that benefits will not be to cope with the high complexity and trade lanes surveyed, but amount realized in the short term. to fulfill the prerequisites regard- to almost half of the potential LTL A Highly Volatile Market Fraunhofer SCS The European LTL market is a high- One major task of Fraunhofer SCS is to make logistics markets more transparent. Since ly volatile market segment with ris- 1995, the research team has published the annual market study “Top 100 in European ing price pressure and competition. Transport and Logistics Services.” As part of the research for this standard reference work In comprehensive pan-European of the logistics industry, further segments and developments on national and internati- networks, the market is dominated onal logistics markets are analyzed and examined. In addition to other market surveys, by large logistics companies having the study “Less-Than-Truckload Networks” also arose. The study examines recent trends many operational locations in differ- and gives a detailed overview of logistics service providers disposing a pan-European ent countries at their disposal. Also network for LTL transports. The core result is a database including more than 4,000 LTL cooperations play an important role, locations of more than 800 companies throughout Europe. Besides market studies, Fraun- since they are very well-connected hofer SCS also provides consulting services for customers from the logistics sector as well because of their network of often as the manufacturing industry. smaller members. Furthermore, a Fig. 2: Export volumes of cross-border LTL transportation

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Substance-based Supply-Chain Planning under BEPS New Standards Will Change International Tax Practices

he agility of supply chains of multinationals driven by the globalization and continuous business changes combined with favorable tax regimes Tin various jurisdictions has given a lot of room for tax optimization in the last decade. As part of the initiative against base erosion and profit shifting (BEPS) and with the support of its member states and the G20 (compare figure 1, which provides an overview of the relevant countries), the Organization for Economic Cooperation and Development (OECD) is developing new international tax stan dards, which will change the rules for international tax planning. Key objectives are to close corporate tax loopholes and to increase transparency of the tax practice of multinationals.

Michael Freudenberg, KPMG Christoph Ludwig, KPMG

Most companies in the chemical sec- demonstrably decisive functions. tor operate globally with different The principle “tax follows opera- steps in their value chains spread tions” will be strengthened. © Yabresse - Fotolia.com across multiple legal entities located ▪▪ Transparency: Taxpayers will in different jurisdictions. The use of be obliged to disclose more tax- favorable tax regimes has been part relevant data to tax authorities which highlights the perceptions of Nevertheless, when setting up thorities have proven to be open to Tax Compliance Act in the United of the tax strategy of many of them. allowing the latter to track the tax executives on BEPS). Traditional a new business or whenever there such practical and administrable States). The changing regulatory environ- allocation of taxable income and models have already lost credibility is an internal or external trigger- solutions in the course of mutual A tax and transfer pricing man- ment now makes it necessary to substance across the globe. This and economic benefit. Prominent ing event making a reorganization agreement procedures; i. e., proce- agement reporting looking at reassess the tax footprint of these is supported by an increased ex- examples are the central principal of the existing business necessary, dures initiated between fiscal au- ▪▪ the development of key perfor- value chains. change of information between company with limited substance there can be tax-planning oppor- thorities to mitigate double taxa- mance indicators such as oper- tax authorities on the tax prac- earning the complete residual prof- tunities without giving rise to in- tion. Their experience is still limited ating profitability and taxable Challenges for Global Tax payers tice of multinationals. it in the value chain and central IP fringement of either legal or moral as those structures are still rare, income per group entity, The following examples illustrate companies that have completely laws. Tax and financial departments but being the first mover might be ▪▪ the relation between group enti- In 2013, the OECD published its what this may mean for tax and outsourced the R&D activities to af- should be aware of the tax-planning an advantage if the taxpayer has ties’ revenues and taxable income action plan including 15 actions to transfer pricing planning: filiates. opportunities, as the efficient tax maintained its relationship to the on the one hand and substance address BEPS. In the following, the ▪▪ Especially BRIC countries (Brazil, The sometimes rather artificial rate has become an important com- tax inspectors well. reflected by full-time equivalents OECD has published a multitude of Russia, India and China) will use structures predominantly based on petitive factor. (FTEs) and book assets on the discussion drafts and recommenda- the new transparency to claim legal agreements will likely be chal- Even if a structure is supported Continuous Tax and Transfer other hand as well as tions with new guidance on interna- what they consider their “fair” lenged by fiscal authorities around by substance, the traditional trans- Pricing Management Reporting ▪▪ the allocation of taxable income tional tax matters. These papers ad- share in multinationals’ global the globe and will not prevail. They fer pricing methods allocating rou- between jurisdictions with differ- dress, e. g., neutralizing the effects of taxable income. This will increase may still be valid for business rea- tine profits to risk-limited distribu- Business is not static, so neither ent tax rate levels, hybrid mismatch, countering harm- the pressure on transfer prices sons — even in times of BEPS — but tors and manufacturers, leaving are the value chains within a mul- ful tax practices, preventing the ar- agreed with subsidiaries in the significant care must be given to the residual with the most entre- tinational group when responding will become a cornerstone of multi- tificial avoidance of permanent es- emerging market. substance requirements by means preneurial entity, may no longer be to external market requirements nationals’ tax and transfer pricing tablishment status, consideration of ▪▪ Access to favorable tax rulings of strategic and operative decision- advisable. For example, the BRICs and the challenge of an optimized strategy to ensure global compli- intangible assets and documentation will become more difficult be- making as well as supervisory and as well as many UN countries em- internal allocation of resources. ance and to avoid supervisory or requirements including the newly cause of increased substance guidance activities at the level of phasize the importance of location The agility of a multinational’s op- organizational fault. Fortunately, introduced Country-by-Country Re- requirements demanding relo- the principal and the IP company. benefits and market access, de- erating model requires an effective technology has opened new oppor- porting. The project is planned to be cating qualified people to dem- The latter need to be equipped to manding that these are reflected in reporting. This should allow CFOs tunities, and business intelligence finalized by the end of 2015. Several onstrate the business rationale of formally make relevant decisions, the transfer prices. and their delegates to continuously solutions are available at accept- countries, especially in the Europe- a chosen structure. and they should have the capacities Therefore, moving from rigid monitor the influence of business- able prices. These solutions allow an Union, are working on or have ▪▪ The attribution of intangible to independently prepare decisions and stationary transfer pricing driven changes on transfer pricing analyzing tax-relevant data in real already published legislative initia- property (IP) is separated from and guidance for the other group systems that provide the manufac- and taxes in order to ensure good time using and visualizing key risk tives based on the OECD papers. what is contractually agreed and entities. Setting up and running turing and sales subsidiaries with corporate governance and mitigate areas (e. g., high taxable income in The BEPS initiative can be best from pure cost-bearing. In a de- such a structure is likely to require fixed target operating margins to potential tax risks. low tax jurisdiction compared to summarized by the following three centralized R&D organization, ir- relocating people and a severe inter- more flexible transfer pricing sys- Tax payers will face increased moderate profitability in asset and key objectives: respective of whether R&D costs vention into existing organizational tems, which accommodate the al- digitalization of audit procedures, FTE-intense locations). ▪▪ Coherence: Loopholes resulting are borne by a central unit, tax procedures and workflows. location of substance among the also driven by a demographic from a different interpretation authorities will claim a decen- Particularly in case of well-estab- relevant group entities, will be a change. For example, a significant Michael Freudenberg, partner, of facts for tax purposes in dif- tralized economic co-ownership lished value chains in a stable busi- core challenge of transfer pricing number of qualified and experi- Christoph Ludwig, senior manager, ferent jurisdictions will be closed of IP. ness, implementing a tax-efficient practitioners. A solution can be enced tax inspectors will retire KPMG AG Wirtschaftsprüfungsge- through a harmonization of the but substance-based structure can the introduction of profit (or loss) over the next decade in Germany. sellschaft, Duesseldorf, Germany tax regimes or by disregarding Substance-based Tax Planning be challenging. Potential tax ben- split models that are deduced from The BEPS action plan will result in the tax effect in the counter party efits expected from such a struc- a process contribution analysis new obligations in providing data state. The regulatory changes make it ture might also be nullified by exit reaching across the value chain. By to tax authorities, which will add to ▪▪ Substance: The allocation of tax- necessary to redirect the thinking taxes when converting the operating trend profit splits are an option in the existing reporting requirements able profit to jurisdictions will on tax efficient restructuring of model and moving functions, risks highly integrated value chains with enforced in the last couple of years 22 [email protected] increasingly depend on where value chains using transfer pricing and assets between different juris- scattered know-how and substance (e.g., the electronic balance sheet in [email protected] people are located and perform as a key driver (compare figure 2, dictions. among several countries. Fiscal au- Germany and the Foreign Account www.kpmg.de

Fig. 1: Map of G20 and OECD countries. Fig. 2: Perceptions of tax executives on BEPS.

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online.com www.chemanager-online.com/en © memo/Fotolia.com 7-8/2015 Production Page 13 Building a Shield for Innovation Patents are Essential for Protecting Inventions in Chemical Technology

he subject matter of patents patent application. All subject mat- is, in general, with the ex- ters known or disclosed before the priority date of the patent applica- Tception of a wider range of tion are called prior art. patentable subject matters in the US, directed to technical solutions in the Inventive Step/Non-obviousness

form of devices, apparatuses, products, The invention must also be based on substances and technical methods. In an inventive step. In other words, it the following, some basic principles of should not be obvious for a person skilled in the art. The requirement of patents are discussed. an inventive step or nonobviousness postulates that a certain inventive Since patents protect technical solu- effort should be necessary to merit tions, one precondition for a patent remuneration of a patent or exclu- is that an invention has been made. sive right. Inventions can be made only by In order to assess the inventive persons, not by legal entities. Conse- step, it must be determined wheth- quently, the right to a patent always er a person skilled in the art would belongs to the inventor. have been able to find the techni- However, inventors can transfer cal solution of the claimed inven- the patent to anybody else, for ex- tion without being inventive. For ample, their employers. The trans- this purpose, the claimed invention fer of the patent can be executed must be investigated in the light in different ways, for example, by of prior art. If a person skilled in a contract or according to specific the art were able to easily find the legal provisions, as for example in claimed solution when considering Germany under the law relating to the known prior art or suggested inventions of employees. Accord- combinations thereof, the patentee ingly, it is important to determine or inventor should not be awarded who is entitled to file the application, a patent. since applications made by persons The person skilled in the art, who not having the right to the patent is taken as a reference for assess- may be invalid. ing the inventive step, is not a real © vege - Fotolia.com person, but a fictive figure having Exclusive Privilege average knowledge in the specific benefit from the invention. Conse- below. The advantage of examined solutions have been developed: the the patent application all over the area of technology of the invention. After granting or registration of quently, patents generally have a patents is the higher degree of le- principles first-to-file and first-to- world (principle of territoriality) as This hypothetical skilled person is the patent, the patent confers on maximum period of protection of gal certainty. In case of substantively invent. soon as possible. Since this would assumed to have theoretical know its proprietor the exclusive right to 20 years from the day of filing. unexamined and merely registered According to the first-to-invent cause enormous difficulties for the ledge of every prior art document or produce, offer or use the product or protective rights or patents, the va- principle, the inventor who made applicant, some countries made an disclosure, but not to have very high method protected. However, this ex- Ways Of Establishing Patents lidity must be examined in case of the invention first has the right to agreement as early as the late 1800s other abilities. clusive privilege is mainly the right an infringement. the patent. This principle is used in with respect to industrial property to prevent others from doing some- Different ways of establishing indus- For this reason, it is recommend- US patent law. Because of the dif- rights and established the Paris Industrial Application thing, not permission for the patent trial rights or protective rights exist. ed when facing a patent to first veri- ficulty of proving the point of time Convention. One of the rules of this proprietor for any operation. If the First, one can distinguish bet fy that the patent was substantively of the invention, this can lead to convention refers to the priority of Only those inventions that are indus- use of a patent infringes rights of ween rights by fact and formal examined. For example, petty pat- very time-consuming proceedings. inventions and that an applicant can trially applicable should be regard- third parties or violates the law, the rights. Rights by fact are automati- ents or utility models (“Gebrauchs- The first-to-file principle avoids claim the priority of a former ap- ed as patentable matter. However, patent does not create a certificate cally generated by means of facts, muster”) in Germany are unexam- such problems by giving the patent plication in a member state of the this can be construed as given in of exemption. e. g., by creating artificial works in ined protective rights that are only to the person who filed the applica- Paris Convention if the subsequent most cases. Only specific exemp- the case of copyright. Formal rights registered after filing of the appli- tion first. This principle applies to application in a foreign country is tions of patentability, such as meth- Principle Of Territoriality are generated by formal application cation. However, proprietors of the the patent law in most countries. filed within 12 months. Thus, the ods for treatment of the human or and registration through authorities. utility model are allowed to claim Accordingly, an early filing date time of filing a first application in a animal body by surgery or therapy The exclusive privilege given by a This group of rights comprises pat- omission of using the subject mat- for an invention is important. Al- member state of the Paris Conven- and diagnostic methods, are deemed patent is always restricted to its ents or utility patents, utility models, ter of the utility model because they though the time of filing a patent tion is of great importance, not only to be not acceptable for industrial geographical limits. Patents can be trademarks, and design patents. possess the registered utility model. application is not as important with for patent protection in this country, application according to the Europe- granted only with respect to a spe- Accordingly, patent protection But this does not provide informa- respect to allocation of the patent but also for further applications, alan Patent Convention, for example. cific territory, e. g., a state. However, cannot be obtained by simply cre- tion on the legal validity of the utility in the US, the filing date is never- most worldwide. Generally, the requirement of indus- some states constitute a union for ating something. It is also necessary model, which must be examined in theless important with respect to trial applicability does not constitute filing and granting of patents based to file an application. However, the the case of an infringement. the defense function of a US pat- Novelty a high barrier to obtaining patent on one application for several mem- further proceeding of the filing dif- ent, since the US patent application protection. ber states, e. g., the European Patent fers from country to country. Some Priority forms prior art with respect to sub- As a common principle for patents, Organization. countries do not require that the sequent applications of third parties. it is a precondition that the sub- patent be examined with respect to Since it is conceivable that differ- According to the first-to-file doc- ject matter for which protection is Christian Lang, LangRaible IP Period Of Protection the substantive law. Such patents ent persons could make the same trine, the date of filing determines sought is novel with respect to prior Law Firm, Munich, Germany are also called registered rights, invention without knowledge of each who has the better rights. For this art. Novelty means that the same in- Patents are also limited in their since they are substantively unex- other, there must be a way to decide reason, it would be important for vention or the subject matter of the duration. The exclusive right of the amined. Contrary to that practice, in who has the right to the patent. Two an inventor or applicant to file invention is not known to the public. patent is the gratification or remu- most countries, patents must pass The filing date or the priority date of neration for the patentee or the in- through substantive examination. Read more about this topic in Ullmann’s the first application is used as time 22 Contact: Frank Weinreich ventor for disclosing the invention During the substantive examination, This article is an excerpt from the Ullmann’s Encyclopedia of Industrial Chemistry reference. Accordingly, the novelty Associate Publisher and making it available for the pub- it is verified that the subject matter (wileyonlinelibrary.com/ref/ullmanns), which celebrated its 100th anniversary in 2014. test, which must be carried out dur- Wiley-VCH lic. However, after a predetermined for which protection is sought ful- More about the topic can be found in the encyclopedia article on Patents. More concept ing substantive examination, is car- Weinheim, Germany period of time during which the pat- fills the requirements with respect articles on general interest topics in industrial chemistry and chemical engineering can ried out by comparing the claimed [email protected] entee can solely preserve the yield to the substantive law, i. e., novelty be found on the Ullmann’s Academy homepage (http://bit.ly/1G5GYQC). invention to the subject matter dis- of his invention, the public should and inventive step, as discussed closed before the priority date of the www.ullmanns.com

Volterion, 4GENE and Ionera named Winners of the Achema Start-Up Award

The latest edition of the world‘s said: „Our choice of focus topics was Start-Up Award. The award is con- and Sciomics, — were given the op- for private homes was the outright Ionera, winner in the Measuring largest forum for the process indus- just right — this has been proven by ferred in recognition of outstanding portunity to present themselves all winner. Volterion produces and Technology/Analytics category, has try and all related sectors, Achema, the number of people in the lecture ideas of young companies in the week to an international audience markets small-scale vanadium re- developed a nanopore-supported had opened its doors for five days halls. And the panel discussions on fields of chemistry, process engi- of professionals and to forge vital dox flow batteries for decentralized platform technology enabling single- in Frankfurt in mid-June. More bioeconomy vs. shale gas and on the neering and biotechnology. business contacts. storage of renewable energy sources molecule through to DNA analysis. than 166,000 participants saw the energy turnaround obviously hit the Volterion, 4GENE and Ionera are Just like the Oscar Awards cer- (solar) for use in private homes. The Achema Start-Up Award is offerings of 3,813 exhibitors for mark.“ the three winners of the first Ache- emony: right up until the opening With Flavor-on-Demand, 4GENE jointly offered by Dechema, Busi- the chemical, pharma and food in- A premiere in 2015, three young ma Start-Up Award in 2015 that session of Achema the names of the was unrivalled in the Industrial Bio- ness Angels FrankfurtRheinMain dustry. With respect to the Achema companies whose innovative ideas took home the cash prize of €10,000 winners were kept strictly under technology section. 4GENE develops, and High-Tech Gründerfonds, and congress that ran simultaneously, convinced a jury from both a tech- and — together with the other final- wraps: produces and markets natural, bio- supported by institutions, corpora- Prof. Dr. Kurt Wagemann, Executive nological and an economic point ists Bentekk, Hydrogenious Technol- In the Energy category, Volterion’s technologically engineered, activat- tions, and by CHEManager as a me- Director of the organizer, Dechema, of view were granted the Achema ogies, Sumteq, Bionicure, Glyconic, concept of a new storage technology able aroma glycosides. dia partner. (mr) ▪

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Mobile App Brings Industry 4.0 to all Pumps

To help plant operators increase pro- can utilize the app to determine the the user with the hydraulic systems This, in turn, points to a con- ductivity and transparency as well load at which each centrifugal pump database developed by the manufac- siderable amount of energy-saving as improve competitiveness across driven by a fixed-speed asynchro- turer, the app can conclude whether potential that can be tapped by op- the entire life cycle, Frankenthal, nous motor is being operated. The the pump is operating at part load timizing existing pump installations. Germany-based pump manufac- following data must be entered for and lets the user know if any energy All analysis data that is uploaded to turer KSB has developed an app for this purpose: the motor rating, the could be saved by optimizing the hy- a secure, cloud-based environment smartphones and tablets that can de- rated motor speed, the head and the draulic system or the drive. does not reference an individual. termine the efficiency of fixed-speed flow rate of the pump. This informa- The KSB Sonolyzer app is avail- The data serves statistical purposes pumps in just 20 s. The KSB Sonolyz- tion can be read from the name plate able for the iOS and Android operat- and is only used to further develop er app is based on an algorithm that affixed to every pump. ing systems and can even be used and advance the analysis algorithms has been integrated in PumpMeter When the measurement routine in potentially explosive atmospheres in the cloud application which is ac- units for five years now, of which well starts, the microphone built into the if the smartphone or tablet PC has cessed by the app. over 30,000 have already been sold. smartphone or tablet is used for ap- appropriate protection. The average Should a user be in need of sup- The smartphone-based applica- proximately 20 s to record the noise life cycle of plants used in the chem- port or assistance from the pump tion does not require knowledge of emitted by the fan of the electric mo- ical industry exceeds 30 y, which is manufacturer, he or she must ac- the individual characteristic curve or tor. This noise spectrum is then fil- why the pumps installed have only tively contact the company. Those any additional technical data of the tered by the application to ascertain seldomly been connected directly interested in the app can download pump set to be measured, however, the exact speed of the pump set and with the Internet of Things. In many it to their device free of charge via and can also be used with pumps determine the torque. By correlat- cases, users are not even aware of a the App Store (Apple) and Google from other manufacturers. Users ing the performance data entered by pump‘s current load condition. Play (Android). (mr) ▪

Borealis Investing €160 million Atotech Inaugurates BASF Petronas to Build in Swedish Cracker Equipment Plant in China HR-PIB Plant at Kuantan

Vienna-based polyolefins and ferti- In early 2014, Borealis signed a Atotech, a leader in specialty plat- ate close to 200 local jobs over the BASF Petronas Chemicals, the joint Christian Fischer, President of lizer giant Borealis has announced new long-term ethane supply agree- ing chemicals, equipment and ser- next three years. Built on an area of venture of BASF and Malaysian BASF’s Performance Chemicals di- plans to invest €160 million to up- ment with Norway’s Statoil. The vices, has inaugurated its second 63,000 m2, the new plant is said to petrochemicals giant Petronas, vision, said the joint investment will grade and revamp four cracker fur- plastics feedstock will be shipped to equipment manufacturing facility in leave space for further expansion. plans to build a new world-scale further increase security of supply naces at Stenungsund, Sweden, to Stenungsund from Statoil’s gas plant Guangzhou, China, built in response TPhase 1 of the investment, worth production plant for highly reac- for HR-PIB, especially for the Asian meet the highest currently available in Kårstø, Norway. to is growing demand for this equip- $33 million, will ramp up production tive polyisobutene (HR-PIB) at the market, as well as further strength- standards in process safety and en- “Our Stenungsund cracker opment in the People’s Republic. capacity of Atotech’s Uniplate and site of its Kuantan, Malaysia, joint ening the global footprint of BASF ergy efficiency. erations are a key strategic asset Reinhard Schneider, president Horizon horizontal systems for PCB venture. as the leading supplier. Scheduled to begin in late 2016 and major contributor to our suc- of the Berlin, Germany-headquar- and IC Substrate manufacturing as The plant, which is claimed to Datuk Sazali Hamzah, CEO of and be completed by 2020, the up- cess,” said Borealis CEO Mark Gar- tered subsidiary of French oil and well as the newly introduced local be the first of its kind in South East Petronas, said the investment marks grade entails revamping four of the rett. “This investment program is petrochemicals giant Total, said the platform for manufacturing equip- Asia, will have annual capacity of another significant milestone in the six existing furnaces and perma- especially beneficial, enabling us opening of the new plant marks a ment. 50,000 t/y and is expected to start development of the Kuantan site as nently shuttering the two remain- to secure improved reliability and new milestone in its commitment to Phase 2 will further expand ca- up in the fourth quarter of 2017. a leading specialty chemicals hub in ing older units. The plans build on operability whilst reducing plant China. pacity to include semiconductor HR-PIB is an important intermedi- the Asia-Pacific region, in line with an announcement last year that the complexity and maintenance re- Globally the facility, Atotech’s equipment part manufacture and ate product for the manufacturing the company’s strategy to diversify company would upgrade the crack- quirements,” he added. (dw) third dedicated to manufacturing assembly to serve the increasing of high performance fuel and lubri- into specialty chemicals and solu- er and construct an ethane storage production equipment for the elec- demand for new advanced packag- cant additives, including additives tions. (dw) tank to store ethane imports. ▪ tronics industry, is planned to gener- ing production solutions. (dw) ▪ for sludge prevention. ▪

Evonik Expands C4 Output at Antwerp and Marl PurcHaSE tHE ENcyclOPEdIa ONlINE German chemical producer Evonik In announcing the plans two annually, the Essen-based company has increased production capacity years ago, Evonik said the expan- said it is “sustainably strengthening” The third edition of the for C4 products at its sites in Ant- sion would be a step toward lifting its market positions and supporting werp, Belgium, and Marl, Germany. its butadiene output in Antwerp by its customers growth plans. The investment, said to be in the 100,000 t/y, and its output of MTBE Evonik said it has secured raw Wiley encyclopedia triple-digit million euro range, in- at Marl and Antwerp together would materials supply to the new pro- cludes additional capability to pro- rise by 150,000 t/y up to 2015. duction facilities with long-term duce butadiene, the plasticizer isono- Citing market analyses that glob- contracts. (dw) of ManageMent nanol and the antiknock agent MTBE. al demand is increasing by 2-5% ▪

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PEOPLE Operational Excellence - Journey to Energy Management and Efficiency Creating Sustainable Value for the Process Industries

This book provides the foundation This book provides an overall ap- and tools that are essential for an proach to energy management for enterprise to bring Operational Ex- the process industries and places cellence into their organizational the technical issues that drive ener- culture; gain maximum results, gy efficiency in context. It combines benefits and value. Strategies for the perspectives of freewheeling and implementing details for en- consultants and corporate insiders. Ralph Sven Kaufmann (49) was appointed as the new COO of terprises at all levels of maturity In two sections, the book provides Evonik Industries with effect from Jul. 1, 2015. He succeed- from those with programs in place the organizational framework (sec- ed Patrik Wohlhauser (51) whose contract has been terminated to those looking to improve safety, tion 1) within which the technical by the company’s supervisory board with effect from Jun. health, environment performance as aspects of energy management, 30, 2015. Wohlhauser was appointed to Evonik’s executive well as the efficiency and effective- described in section 2, can be most board on Apr. 1, 2011 and took over responsibility for the ness of their operations are shown. effectively executed. It includes suc- chemical operations as COO on Jan. 1, 2014. Kaufmann, It includes topics from concept to cess stories from three very differ- Ralph Sven who started his career in Corporate Controlling at Hen- sustainability satisfying knowledge ent companies that have achieved Kaufmann kel, has been a managing partner of Scopein Management requirements of all levels in the excellence in their energy manage- Consultants in Düsseldorf, Germany, since 2001. He trained organization. It defines program ment efforts. Main topics are energy in banking and studied economics and business administration at the objectives; develops improvement management, including the role of universities of Cologne and New York. Kaufmann obtained his doctorate strategies; identifies and prioritizes the energy manager, designing and from the University of Cologne in 1995. He started his career in Corporate improvement opportunities; imple- implementing energy management Controlling at Henkel and subsequently worked as a project manager at ments improvement plans; monitors, 22 Operational Excellence - programs, energy benchmarking, 22 Energy Management and Efficiency the strategic management consultancy Droege & Comp. continuously improves and sustains Journey to Creating Sustainable Value reporting, and energy management for the Process Industries results and is applicable to a broad John S. Mitchell systems. Technical topics include ef- Alan P. Rossiter, Beth P. Jones Martin Babilas (43) will become the new CEO variety of operating enterprises, ac- John Wiley & Sons, 2015 ficiency improvement opportunities John Wiley & Sons, 2015 of German chemical producer Altana upon ademic institutions and third party Price: € 63.90 in a wide range of utility systems Price: € 89.90 the retirement of Dr Matthias L. Wolfgruber (61) implementing organizations. ISBN: 978-1-118-61801-1 and process equipment types. ISBN: 978-1-118-83825-9 on Jan. 1, 2016. Babilas took over additional responsibility for two of the Bad Homburg- based company’s four divisions from the CEO in November of last year. On stepping Martin Babilas into the new job he also will take over re- Stefan Genten sponsibility for Corporate Development/ M&A, Human Resources, Corporate Communications and Internal Audit from Wolfgruber. Effective Aug. 1, 2015, Altana will also have a new CFO, Stefan Genten (46). Genten will move from German pharmaceutical producer Grünenthal, where he held the same position since 2005. Genten was also in charge of operative functions, such as the Latin American business, and was appointed chief operating officer in 2010. 20 Allen Ferguson has been appointed as Clariant Oil Services 15 Manager, Canada. Ferguson has more than 30 years of experience in key management roles for major oilfield service companies in Canada, the US, Europe, and Russia. As head of Clariant Oil Services’ operations in Canada, Ferguson’s task is to expand the division’s market presence through the further development of specialty chemi- Allen Ferguson cal technologies.

Jean-Claude Pierre became new group CEO of Scott Bader on Jun. 15, 2015. He succeeded Philip Bruce who retired at the end of June, after 10 years in the role and 41 years in in- Does your business have a great innovationvation toto dustry. Pierre has over 26 years of multinational business experience in a variety of roles and diverse markets. His career to date includes technical, commercial and man- be recognised ? agement consulting positions, initially with ICI, Ashland Jean-Claude and BASF, then nine years in China since 2006. During Pierre his time in China, he became president of the global divi- The CPhI Pharma Awards provide recognition to pharmaceutical companiesompanies who turnturn sion of Beckers Group, a Partner with Hejun Management inspiration into innovation and celebrate thinkers and creators breakingaking new groundground in Consulting, and most recently was the managing director of EMS Group. formulation, process development, packaging, technology and more.e. Pierre holds a Master’s degree from ITECH-Lyon engineering institute for plastics, textiles and composites in France, a PhD in organisational systems from Saybrook University, and an MBA from Hult International The CPhI Pharma Awards return with eight categories in 2015: Business School in the USA. ࠮ Best Innovation in Biologic Drug Development and Manufacturingng Dr Chris Martin is the new CEO of ADC Therapeutics. He was co-founder of Spirogen and its CEO leading up to the sale of Spirogen to MedImmune, ࠮ Innovation in Supply Chain & Logistic Management the global biologics research and development arm of AstraZeneca in October 2013. Dr Martin continued as CEO of Spirogen, and became both a member of Medimmune’s Management Leadership Team and AstraZen- ࠮ Best Innovation in Manufacturing Technology – in partnership withh eca’s Senior Leaders Group. He will continue to advise Medimmune as a Pharmaceutical Technology consultant. Dr Martin played an important role in the formation of ADC Therapeutics in 2012, and has served on its board of directors since its ࠮ CEO of the Year – in partnership with PharmaBoardRoom founding. He replaces Michael Forer, CEO of the Company since its formation, who became vice chairman of ADC Therapeutics, and will continue ࠮ Best Innovation in APIs and Excipients to work with the company as executive vice president. Best Innovation in Packaging Joachim Rauhut (61), CFO of Wacker Chemie, will leave the company as ࠮ planned when his contract expires on Oct. 31, 2015, the Munich-based chemical group has announced. Tobias Ohler (44), a member of the Wacker ࠮ Best Innovation in Process and Formulation Development executive board member since early 2013, will step into the CFO slot on Nov. 1. Also with effect from Nov. 1, Christian Hartel (44), currently president ࠮ Excellence in Partnering & Outsourcing – in-cooperation with of Wacker Silicones, will join the Wacker Chemie executive board. Pharmaceutical Outsourcing Magazine

Jean-François Hilaire took on the new position of Chief Strategy Officer at Recipharm on Jun. 1, 2015. Hilaire is a pharmacist and graduated from the University of Bordeaux and alumni of the CEDEP General Manager Program. He brings a broad experience base acquired in commercial as Submit your entry online by 7th of August and be recognised in the Pharma Industry! well as in manufacturing & supply leadership roles at Fournier, Solvay and Abbott. Go to www.cphi.com/awards

Roeland Polet has been appointed as new Business Group Director DSM Engineering Plastics, succeeding Roelof Westerbeek. He joins DSM from Val- spar, based in Minneapolis, Minnesota, USA, and Shanghai, China, where Our Sponsors he led the Global Industrial Coatings division and was a member of the PharmTech.com company´s Operating Committee. In previous positions, Polet worked for Advancing Development & Manufacturing DSM Engineering Plastics in the areas of R&D and Marketing and was general manager of the Celanese engineering plastics arm Ticona, then based in Frankfurt Germany. Westerbeek, who joined DSM in 1989 later TM became president of DSM Engineering Plastics Asia Pacific and as of 2008 business group director of the engineering plastics arm. Westerbeek, who is based in Singapore, will be engaged in various projects within DSM until Jul. 1, 2016, when he will leave the company.

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Energy in 2014: A Year of Change Improved Process for PLA Biodegradable Plastic

World primary energy consumption 2000–2014 Fig. 1 Biodegradable drinking cups or of the intermediary steps. And even by-products that do not fit into the Million tonnes World consumption oil equivalent 13,000 vegetable wrapping foil: the bioplas- though PLA is considered a green zeolite pores. Our new method has 2014 was a remarkable year in the world of energy. tic known as polylactic acid (PLA) plastic, the various intermediary several advantages compared to The eerie calm that had characterized energy markets is already a part of our everyday steps in the production process still the traditional technique: we pro- in the few years prior to 2014 came to an abrupt end 10,000 lives. PLA is derived from renew- require metals and produce waste. duce more PLA with less waste and last year. According to the BP Statistical Review of able resources, including the sugar Researchers from the University without using metals. In addition, World Energy 2015, global primary energy consump- in maize and sugarcane. Fermenta- of Leuven recently presentad a way the production process is cheaper, tion increased by just 0.9% in 2014, a marked dece- tion turns the sugar into lactic acid, to make the PLA production process because we can skip a step”. leration over 2013 (+2.0%) and the slowest rate of which in turn is a building block for more simple and waste-free. “We Bert Sels, professor at the Univer- 5,000 growth since 1998. Growth was below average in all polylactic acid. PLA degrades after a have applied a petrochemical con- sity of Leuven, is confident that the regions except North America and Africa. All fuels number of years in certain environ- cept to biomass”, says postdoctoral new technology will soon take hold. except nuclear grew at below-average rates. Oil re- ments. If it is collected and sorted researcher Michiel Dusselier. “We “Of course, PLA will never fully re- Coal Hydroelectricity Natural gas mains the world’s dominant fuel (fig. 1). Hydroelectric Renewables Nuclear Energy Oil correctly, it is both industrially com- speed up and guide the chemical place petroleum-based plastics. For 1,000 and other renewables in power generation both postable and recyclable. PLA is also process in the reactor with a zeolite one thing, some objects, such as toi- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2008 2010 2011 2012 2013 2014 0 Year reached record shares of global primary energy con- one of the few plastics that are suit- as a catalyst. Zeolites are porous let drain pipes, are not meant to be Source: BP Statistical Review of World Energy 2015 © CHEManager International sumption (6.8% and 2.5%, respectively). able for 3D printing. minerals. By selecting a specific biodegradable. And it is not our in- However, PLA is not yet a full al- type on the basis of its pore shape, tention to promote disposable plas- ternative for petroleum-based plas- we were able to convert lactic acid tic. But products made of PLA can tics due to its cost. The production directly into the building blocks now become cheaper and greener.” Regional primary energy consumption pattern 2014 Fig. 2 Regional consumption process for PLA is expensive because for PLA without making the larger (rk) ▪ 100 Although emerging economies continued to domi- 90 nate the growth in global energy consumption,

80 growth in these countries (+2.4%) was well below its 10-year average of 4.2%. The fall in EU energy con- 70 sumption (-3.9%) was the second-largest percentage 60 decline on record. The Asia Pacific region once again 50 accounted for the largest increment to global prima-

40 ry energy consumption and continues to account for the largest share (41.3% of the global total). The re- 30 gion accounted for over 71% of global coal consump- 20 tion for the first time in 2014, and coal remains the Coal Hydroelectricity Natural gas 10 Renewables Nuclear Energy Oil region’s dominant fuel (fig. 2). Gas is the dominant fuel in Europe & Eurasia and the Middle East, while 0 North S. & Cent. Europe & Middle Africa Asia Paciﬁc oil is the largest source of energy in the Americas and % America America Eurasia East Source: BP Statistical Review of World Energy 2015 © CHEManager International Africa.

Fossil fuel reserves-to-production (R/P) ratios Fig. 3 Fossil fuel reserves-to-production ratios at end 2014 Years 500 Coal remains — by far — the most abundant fossil fuel by R/P ratio (fig. 3), though oil and natural gas 400 reserves have increased over time. The slowing pace © Jens Ottoson - Fotolia.com Oil of Chinese industrialization caused the growth in Natural gas Chinese coal consumption to stall and the growth in Coal 300 These boots – are made for hiking. Summer time is hiking time. Light mountaineering shoes provide hikers with comfortable lightweight global consumption of coal to be unusually weak. equipment that lets them be quick, agile and safe. Sports specialist Salomon has chosen DSM’s EcoPaXX polyamide for the “Edging Chas- Non-OECD countries account for the majority of pro- sis” of a new mountaineering shoe. The Edging Chassis is a special plate built into the sole with a sophisticated design that provides stabi- 200 ved reserves for all fossil fuels. The Middle East holds lity for the foot, but also allows enough flexibility to accommodate the natural flexing of the foot. This requires a material with the right the largest reserves for oil and natural gas, and the combination of appropriate mechanical properties and toughness and which can be processed easily. EcoPaXX has enabled Salomon to highest R/P ratio for natural gas; South & Central 100 produce a chassis with an intricate design. Furthermore, it has flow characteristics needed for the design, together with mechanical pro- America hold the highest R/P ratio for oil. Europe & perties and processes very well. (mr) Eurasia holds the largest coal reserves and the high- OECD Non-OECD European Union Former Soviet Union World 0 est R/P ratio. Source: BP Statistical Review of World Energy 2015 © CHEManager International

EXTRA EXCLUSIVE World biofuels production 2004–2014 Fig. 4 Biofuels production Million tonnes oil equivalent World biofuels production increased by 7.4% in 2014 ONLINE CONTENT (fig. 4). Global ethanol production increased by 6.0%, 80 Rest of World the second consecutive year of growth, led by incre- Europe & Eurasia Þ Read exclusive online articles at www.chemanager.com/en S. & Cent. America ases from North America, South & Central America North America 60 and Asia Pacific. Biodiesel production increased by Þ Registration is free and allows you access to our extended online issue 10.3% in 2014, despite a decline in production from Þ Stay up-to-date on latest industry news and topics North America. The International Energy Agency (IEA) 40 has a goal for biofuels to meet more than a quarter of world demand for transportation fuels by 2050 to reduce dependence on petroleum and coal. Global 20 biofuels production grew by a below-average 7.4% Index (+4.9 million tons of oil equivalent), driven by incre- 4Gene 13 European Chemical Transport Paulson & Co. 1 ases in the US (+5.6%), Brazil (+5.5%), Indonesia AAK 8 Association (ECTA) 9 Petoro 9 2004 2006 2008 2010 2012 2014 0 (+40.4%) and Argentina (+30.9%). (rk) Abbott 15 Evaluate 4 Petronas 14 Source: BP Statistical Review of World Energy 2015 © CHEManager International AbbVie 2 Evonik 1, 2, 14, 15 Pfizer 11 ADC Therapeutics 15 Fachagentur Nachwachsende Rohstoffe 6 Platform Specialty Products 1, 2 Air Liquide 11 Ferrostaal 5 Port of Antwerp 9 AkzoNobel 2 Fournier 15 Potash Corporation of Saskatchewan 3 Alibaba 5 Fraunhofer SCS 11 Procter & Gamble 7 Altana 15 Fresenius 11 Receptos 2 Andreas Jennow 8 German Chemical Industry Association (VCI) 4 Recipharm 15 Imprint Apple 14 GlaxoSmithKline 11 Repsol 5 Publisher: Marion Schulz The current price list is valid from All names, designation, or signs in Ardian 2 Glyconic 13 Tel.: +49 6201 606 565 1st October 2014 this issue, whether referred to and/ Roche 11 Wiley-VCH Verlag Arkema 15 Google 14 [email protected] or shown, could be trade names of Ashland 2, 15 Group Boticario 8 Roman Seliger Armaturenfabrik 1 GmbH & Co. KGaA CHEManager International the respective owner. 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