Science Driven by the Market Tio2 Producer Sachtleben for €97.5 Million to Its Joint Venture Partner, US Holding Rockwood

3/2013 March

REACH Chemicals The European Commission’s The newspaper for the Combining performance and REACh Review received a mixed sustainability is the big deal response from industry and NGOs chemical and in the coatings sector

N ewsflow M&A-News Kemira sold its 39% stake in German Science Driven By the Market TiO2 producer Sachtleben for €97.5 million to its joint venture partner, US holding Rockwood. CEO Patrick Thomas Takes a New Approach to Innovation at BMS Monsanto acquires Israeli crop bio-engineering company Rosetta Materials – When new company he had to convince the Bayer hold- Green for $35 million. ing’s chief financial officer that the chieftains say they want to be a cata- More on Pages 2-7 ▶ targets were achievable. Over six lyst for change, many listeners brush it years, Thomas and his financial Companies off as a tired cliché. Patrick Thomas is team have reduced working capital Evonik is taking aim at a stock mar- by €500 million, and “we now have ket launch for the fourth time since proof that it needn’t be. Stepping into benchmark working capital across 2008. After the aborted attempt in his new role as chairman and CEO of the entire company.” June 2012 to publicly place 30% of A pet project of the new chief ex- Bayer MaterialScience (BMS) in 2007, shares, observers now give the Ger- ecutive was establishing strict cash man specialty chemicals company the then 49-year-old Englishman who Our mantra is discipline, which turned out not as better odds of succeeding. previously had led the polyurethanes more innovation, easy a sell internally as it might have More on Page 3 ▶ been. The reason, Thomas believes, businesses of ICI and Huntsman in the less administration. was that “at a company like Bayer Investments UK and Belgium quickly went to work with a fabulous credit rating, it was not a natural thing to think about.” Shell is upgrading its Singapore holding the old German company’s production facility for polyols by But coming from a highly leveraged more than 100,000 t/y and adding cherished traditions and practices up company like Huntsman, he found new grades. The project is due for to the light for scrutiny while contem- it essential. “If you manage cash completion in 2014. well, you can manage other things plating new business models. well.” Over the past decade, Bayer’s More on Pages 3-7▶ polymers business has generated €3 billion in cash. Unlike some plastics Pharma After six years in the job, many chief companies, “we have been cash pos- Biogen is paying its Irish partner executives might be tempted to de- itive even in recession years.” Elan $3.25 billion plus future royal- clare “Mission Accomplished” and A new concept Thomas’s man- ties to claim full ownership of the fall back into a more comfortable agement team has introduced is blockbuster multiple sclerosis drug operating mode. This thought would the global “non-touch order,” which Tysabri. not occur naturally to Patrick Thom- if one day applied broadly could Lonza has been awarded a contract as. The Portsmouth native and Ox- revolutionize buying and selling. to generate induced pluripotent ford graduate who calls himself “an From call-off to invoicing and cash stem cells for research purposes engineer by birth and by training” collection, no human hand touches by the U.S. National Institutes of is still far from finished reshaping the process. For the bulk of the port- Health Center for Regenerative folio, total automation is not yet in Medicine. the polymer producer’s approach to innovation and marketing – two Patrick Thomas, CEO, Bayer MaterialScience sight. However, in the US, where More on Pages 3-7 ▶ concepts that in his mind go hand the system was developed and first in hand. ade. “You cannot radically change vesting heavily, for example, in ber of innovative new technologies launched, around 60% of custom- Collaborations Having scarcely paused to catch the culture of a 150-year-old com- China”. In the past, all businesses developed in-house, such as the ers who regularly order the same Richter, the Hungarian drug maker, his breath since arriving in Lev- pany,” he remarks. “What we’ve ba- were run from Germany. Under his gas-phase route to polyurethane products, without price negotiation has formed a 51:49 marketing joint erkusen, Thomas blogs relentlessly, sically done is to take Bayer’s tech- aegis, headquarters of the global feedstock TDI and the new energy- – polyurethane systems, for example venture in China with its marketing sparking dialog throughout the Bay- nical dreams and push them out into polycarbonate business was relo- saving oxygen depolarized cathode – are now using it. partner Rxmidas Pharmaceuticals. er worldwide social media commu- reality.” cated to the People’s Republic, the (ODC) chlorine process. “We had the process designed in More on Page 3 ▶ nity. Covering topics ranging from At BMS, polycarbonate, polyure- center of the market. One of the last Before making bold strategic the US, because Americans are usu- finance to sustainability and points thanes and their production chains, to launch a major platform there, moves, new managers often must ally more efficient,” says Thomas. Southeast Asia in between, his community, simply along with coatings raw materials, “we are now the largest foreign tighten internal nuts and bolts. Sev- Europeans might have made it too The regional focus in this issue called “Patrick” has 14,000 follow- are the stuff technical dreams are eral such tasks awaited Thomas at complex.” Around 20-30% of Eu- highlights the emerging econo- ers – the most in the company. “It’s made of. The €11.5 billion plastics Bayer MaterialScience. Overhaul- ropean and Asian customers have mies of Southeast Asia. an effective way of communicating,” portfolio, custom-designed when About 70% of ing accounting procedures was an now adapted the system, 12% in while sitting in his office and chat- Bayer’s plastics business was split early challenge. “We had the most Latin America. Besides simplifying More on Pages 6, 8 ▶ ting with CHEManager Europe’s between MaterialScience and spin- what scientists do complicated SAP system in the and speeding orders, the system is Dede Williams. Since mid-2011, off Lanxess in 2005, was “put to- should be driven world,” he recalls. The world mar- cheaper for the company as well as Plastics Thomas has also dedicated a por- gether very intelligently,” the CEO ket leader for company software the customers, he says. The bonan- Polyvinyl Chloride (PVC) has come by the market. tion of his seemingly boundless en- says. BMS kept the two most ver- usually uses traffic light colors to za in Asia was especially tangible. a long way since its inventor in ergy to another “interesting job” as satile polymers, with bread and rate internal corporate procedures. “When we went live, the auditors 1913. PVC’s journey to becoming president of the European industry butter materials such as PA , PBS company, wholly owned, with a “For us they had to add a fourth reduced our bill by several million the world’s third largest-selling association Plastics Europe (until and ABS (the latter business sub- market capitalization of $3 billion. color, black, for processes they dollars because we made their job plastic has not always been easy. June 2014). sequently was sold to Ineos) going And we’re also “the biggest and couldn’t interpret.” Today, BMS easier. The money saved is being in- More on Pages 12-14 ▶ Sipping Diet Coke from a polycar- to Lanxess. most cost-effective.” operates with one set of processes vested in R&D.” bonate glass while scrolling through “From the outset, BMS was de- New processes are now often globally. Regional differences are a As might be expected, BMS’ his laptop to find a video of a high signed as a growth business, and tested first in world-scale plants in thing of the past. approach to R&D under its Eng- tech application he wants to show, this is what what we have contin- China before world-scale facilities Another hurdle the first outsider lish chief executive diverges from Thomas reflects on the gentle cul- ued to do with it,” says Thomas. To are built in Europe and the rest of and non-German to run the com- that traditionally embraced by the tural metamorphosis at Bayer Ma- start with, “we have broadened the the world. in this way, the company pany had to surmount was reduc- German chemical and plastics in- terialScience over the past half dec- geographical basis enormously, in- has successfully leveraged a num- ing working capital. First, however, dustry. “Our mantra,” he says, is “more innovation, less administration. Innovation is not just science and technology. It’s also about how you do business.” Applying one of his cherished concepts, industrial THE PORTAL AND marketing, to innovation at BMS DECISIVE NEWSPAPER FOR three years ago was a sea change INFORMATION and a learning process for most THE EUROPEAN employees. CHEMICALS AND “At Bayer, we are very good at chemanager - online.com /en invention,” Thomas asserts. While PHARMACEUTICAL manufacturers’ traditional approach MARKETS to invention is “to develop a prod- © Nmedia/fotolia uct and see if there’s a market, a better method, he says, is to go to the marketplace to find creative im- pulses that match the portfolio and

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chemanager-online.com/en Page 2 Markets & Companies CHEManager Europe 3/2013

Content

INFORMATIONAL ADVANTAGE

Chemical industry news to support your Chemical Industry’s Expectations for the business and investment U.S. Business Climate in 2013 12–13 decisions

Industry Experts Assess the Market Situation Relevant to Visit their Respective Activities in the U.S., Opinions Range from CHEManager-online.com and ﬁ nd Uncertainty to Optimism important industry news, updated daily! Production 14 Front Page Getting The Pulse 8 Plastics Sign up for our Singapore Aims to Be a Model of Sustainable Development Optimizing The Operation 14 fortnightly newsletter. Science Driven By the Market 1, 7 As it Sets Out for the Next Phase of Growth Color And Functionality 12 Advanced Process Control Increases Manufacturers’ CEO Patrick Thomas Takes a New Approach to Innovation at BMS Interview with Kian Teik Beh, International Director Europe, Clariant Masterbatches Pursues Strategy for Profitable Growth Register today! Interview with Patrick Thomas, CEO, Bayer MaterialScience Singapore Economic Development Board Based on Four Key Elements Competitiveness in a Dynamic Marketplace Interview with Hans Bohnen, head of Masterbatches business unit, Francois van Niekerk, Business Consultant, AspenTech Clariant CHEManager Europe provides you the informational advantage for your business Bayer’s New Chemicals Value Chain 13 People · Events · Publications 15 success. Markets & Companies Chemicals CO2 and Hydrogen from Renewables Become New Raw Material and Energy Sources REACh Review Given a Mixed Response 4 Urbanization as a Growth Driver 9 Sean Milmo, freelance science and business journalist, Essex At A Glance 16 Industry Likes It but NGOs Accuse the European Commission of Lanxess Expands its Global Production Network for Pigments Being Too Cautious with a New Plant in China 100 Years of PVC 14 Sean Milmo, freelance science and business journalist, Essex Interview with Jörg Hellwig, head of the Inorganic Pigments The European Polyvinyl Chloride Industry’s Journey from Index 16 business unit, Lanxess Patent to Sustainability Dr. Brigitte Dero, Deputy General Manager, VinylPlus Industry Remains Concerned about Volatility 5 Combining Performance and Sustainability 10 Imprint 16 C3X Survey Reveals Increased Focus on Strategic Planning and Features at the European Coatings Congress 2013 Include Volatility Monitoring Initiatives Nanotechnology, Waterborne Systems and Biobased Coatings Meike Fuhlrott, A.T. Kearney Philipp Praet, freelance journalist People · Events · Awards 15

www.CHEManager-online.com Sustainability Remains a Top Driver in Surfactants 11 At A Glance 16 ASEAN Harmonization 6 Interview with Simon Mawson, Global Director, Coatings, Solvay The Southeast Asian Pharmaceutical Markets are Index 16 Undergoing a Period of Intense Evolution Imprint 16

Akzo Nobel Will Speed Up Dow Chemical Ordered to Pay $400 Merck & Co to Pay $688 Million to Performance Improvement Plant Million for Isocyanates Price Fixing Settle Vytorin Suits

Over the next two years, Dutch As one of the last defendants in a The other accused producers U.S. drug maker Merck & Co has a securities class-action that did not chemical producer Akzo Nobel will price fixing suit brought by buyers had previously settled out of court, agreed to pay $688 million to set- involve a restatement of significant concentrate on speeding up the on- of urethane chemicals in 2004, Dow with Bayer paying the largest settle out of court two U.S. class-action uptick in settlements of securities going cost-cutting process and focus Ton Büchner Chemical has been ordered by a U.S. tlement, of $55 million. BASF paid lawsuits brought by shareholders cases. on cash generation, chief executive CEO, Akzo Nobel federal court to pay $400 million in $51 million, Huntsman $33 million. who said they lost money because Merck said it recorded a $493 Ton Buechner said in a strategy up- damages The plaintiffs had asked LyondellBasell, which was protect- the company concealed the poor million after-tax charge for the set- date, while presenting annual re- for damages totaling $1.25 billion. ed from fines while in Chapter 11 results of a clinical trial of the anti- tlements, reducing the company’s sults in late February. He said the The U.S. chemical group has said it bankruptcy proceedings, avoided cholesterol drug Vytorin. The suits previously reported profit per share. company will aim for a return on it will consider an appeal of the rul- payment altogether. Some of the pol- led by several international pen- It said it believes both companies sales of 9%, a return on investment The net loss from continuing opera- ing. Along with Dow, Bayer, BASF, yurethane foam producers pressing sion funds alleged that Merck and acted responsibly and that the set- of 14% and a ratio of net debt to tions for the full year totaled €1.7 Huntsman and LyondellBasell also charges are themselves embroiled Schering-Plough, which merged in tlements include no admission of li- EBITDA of less than 2.0 times by the billion after a net profit of €536 faced charges that they fixed prices in a price fixing suit for finished November 2009, knew more than a ability or wrongdoing. end of 2015. The ongoing earnings million and is blamed on a Q3 im- for MDI and TDI. foam products. ◾ year in advance that the drug trial, Merck also will pay $215 million improvement scheme will be com- pairment charge of €2.1 billion. The Enhance, was a failure but withheld to settle a lawsuit brought by inves- pleted by 2013, a year earlier than Decorative Paints business, sold in that information from investors. tors in its securities and $473 mil- planned an is expected to deliver December 2012 to PPG, was impact- Law firms representing some of lion to settle a lawsuit by Schering €500 million in EBITDA gains at a ed by weaker demand in the Euro- the plaintiffs said the combined set- investors. Both settlements require cost of €205 million. pean markets, while Performance tlements are among the 10 largest in approval by a U.S. district judge. ◾ The company’s financial report Coatings made a strong showing, Wacker Ends Short-time Working for 2012 shows that sales rose 5% driven by improved margins and year-on-year to €15.4 billion, with operational efficiency measures, at Burghausen EBITDA 4% higher at €1.9 billion. despite weaker volume sales. ◾ Buyers Eye Multibillion Dollar Deal Germany’s Wacker Chemie has end- In October 2012 the company cut ed short-time working in polysilicon output to two-thirds of nameplate for Brazilian Drug Maker production at its Burghausen site in capacity on sinking demand. Around Bavaria, citing a revival of demand 700 workers were affected by the International pharmaceutical indus- the company’s historic sales. On from its solar industry customers. move. ◾ try players looking to increase their that basis a deal for Ache could be Carlyle Completes Acquisition of footprint in Latin America are said worth at least $2.5 billion, observ- to be weighing bids for privately ers say. In practice, the company’s DuPont Performance Coatings owned Ache Laboratorios Farma- owners– three family groups – could ceuticos, one of Brazil’s biggest drug expect more than that, reflecting the Private equity investor The Carlyle berts, the coatings business of the BASF Completes Acquisition of makers. Reports say the Brazilian company’s much lower reliance on Group has completed its $4.9 billion former German chemical producer arm of investment bank Lazard has generics acquisition of DuPont Performance Hoechst. Nutrition Specialist Pronova been mandated by key shareholders It is not clear which pharmaceu- Coatings and will rename the com- The Carlyle Group is a global to investigate a sale and that several tical companies have been looking pany Axalta Coating Systems, start- alternative asset manager, which At the end of January, BASF com- BASF said it will “fully integrate” European and U.S. companies drug at Ache but big emerging markets ing in the third quarter. The paints has been active in the automotive pleted its acquisition of Norwegian Pronova into its Nutrition & Health makers have shown interest. like Brazil are a major focus for and coatings manufacturer with M&A sector. At the end of 30 Sep- nutritional products manufacturer division, and the company will be- Ache is regarded as a valuable many leading players. While rank- more than 11,000 employees is ac- tember 2012, it had $157 billion in Pronova BioPharma, after winning come a “key part” of its omega-3 prize in a fast-growing market. Its ing fourth in terms of overall Brazil- tive in many segments of the coat- assets. The deal with DuPont was the last shareholder holdouts with a business. Through the deal, the sale would build on a number of ian drugs sales, Ache is the market ings business and has been a major announced in August 2012 and in sweetened offer. With 98.19% of the German group expects to achieve a deals in the Brazilian sector in re- leader in prescription medicines and industry player for over 90 years. October 2012, the European Com- company’s share under its control, leading position in the market for cent years, including Sanofi’s 2009 has a track record of producing its Its European presence dates from mission said it would investigate the the world’s largest chemical pro- the nutritional supplement. purchase of generic drug maker own branded products. in 1999, when DuPont acquired Her- transaction. ◾ ducer moved toward a squeeze-out. ◾ Medley for €500 million, 3.3 times ◾

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REACh Review Given a Mixed Response Industry Likes It but NGOs Accuse the European Commission of Being Too Cautious

Regulation – The European Com- based agency responsible for ad- The Commission considered The placing of substances of very on their quality, even after submis- the cost of gaining access to data,” ministering REACh. that in its role as administrator of high concern (SVHC) on the candi- sion to ECHA,” it says. says Peter Newport, director of the mission’s review of REACh has con- The review comes at a time when REACh, the European Chemicals date list for their authorisation had U.K. Chemical Business Association cluded that there is no need for any only one of three phases of the reg- Agency had been effective with increased development work on their Financial Impacts of REACh on SMEs (CBA), representing SMEs in chemi- major changes in the legislation –at istration with safety dossiers of at most stakeholders noting that it substitution, according to the Com- cals production and distribution. least 30,000 substances had been had performed well. But it thought mission. It claimed that these find- One matter which the Commission “The Commission has recognized least for the moment. This has been completed. This was for chemicals the agency could have done a bet- ings showed that progress was being wants to tackle relatively quickly the issue but is just making pious welcomed by much of the chemical which are produced or imported by ter job in disseminating data and in made towards meeting the human is the financial impacts of REACh observations about the need for fair registrants in annual quantities of communication and transparency of health and environmental aims of on SMEs. A recent survey of SMEs cost sharing. We have examples of industry which had been telling the 1,000 tonnes or more and which information in general. REACh. However, it conceded that as showed that they considered REACh members who may have to go out Commission that it wanted the legis- had to be registered by late 2010. reported by ECHA, many registra- to be among the ten most burden- of business because of the high fees lation to remain intact so companies for letters of access.” The European Association of can adhere to it without fear of any big Craft, Small and Medium-sized alterations. Enterprises (UEAPME), the main The REACh review brings legal pan-European organisation repre- certainty for the foreseeable future. senting SMEs, wants fees for letters “The REACh review brings legal Dr. Gerd Romanowski, director of Science, Technical and Environmental of access to be linked to the sales certainty for the foreseeable future,” Affairs, German Chemical Industry Association (VCI) volumes of registrants. “At the mo- says Gerd Romanowski, director of ment a company with a sales ton- Science, Technical and Environmen- nage 10 times less than another is tal Affairs at the German Chemical being charged the same fee, which is Industry Association (VCI). “Now clearly unfair,” says Marcus Susnik, chemical companies can continue UEAPME’s specialist.on REACh. to fully focus on REACh implementation.” Hubert Mandery, director Alterations or Additions may be Necessary general of the European Chemical Industry Council (CEFIC), said that With other issues on which the Com- since REACh is functioning effective- mission has ruled out action in the ly “there is no need for a revision.” short term, it has acknowledged However, other groups are not so that alterations or additions to the happy with the review. Although the REACh legislation may be necessary Commission promised measures to in the longer term. ease the cost burden of REACh com- On nanomaterials, which crit- pliance for small and medium sized ics claim that REACh in its present companies, SME representatives form does not have powers to con- think that it did not go far enough. trol, the Commission has said it will NGOs also attacked the Commis- be looking at possible amendments sion for being too cautious so that to the legislation’s annexes so that what they believe are significant a draft implementing act can be put weaknesses in REACh are not be- forward by December this year. It is ing tackled. also investigating the possible need to register certain types of polymers Critics: Commission Avoids Confrontation whereas at the moment only mono- mers have to be registered under Critics of the review claim that the REACh. If necessary, it will come Commission opted for maintaining forward with a proposal by Janu- the status quo because it did not ary 2015. want to risk a possible confronta- The Commission is also stepping tion with European Union govern- up its efforts to complete a list of ments and particularly the Euro- - Fotolia.com Bagusat Tanja © substances of very high concern by © frank peters - Fotolia.com © frank peters pean Parliament when trying to creating a roadmap to assess and push through amendments to the identify SVHC chemicals. It will set legislation. These would have had out clear milestones and a division to be approved by the Council of of work between itself, ECHA and Ministers, representing the EU’s member states so that all relevant 27 member states, and the Parlia- known SVHC are placed on the au- ment which would have been likely The big burden for SMEs is not the thorisation candidate list by 2020. to take the opportunity to put down level of registration fees but the NGOs in particular have been amendments of its own. sharply critical of what they per- “Commission officials have been cost of gaining access to data.” ceive as slow progress in the listing saying for some time that they want- Peter Newport, director of the UK Chemical Business Association (CBA) of SVHCs. “It is deeply worrying that ed to avoid making any changes to the Commission decided to measure the legal text, even though there ECHA’s effectiveness by the number were problems with it which needed Substances produced or imported in Striking the Right Balance tion dossiers had not met the data some pieces of EU legislation. of papers shuffled, rather than by to be sorted out,” says Vito Buon- amounts of 100 tonnes or more have requirements of REACh with some ECHA has already been looking the number of dangerous carcino- sante, toxics lawyer at ClientEarth, to be registered by June 1 this year. It rebutted accusations that ECHA even failing to identify properly the at ways to lower registration fees genic substances taken off the EU Brussels, a campaigning group of The deadline for the remainder of 1 had been favouring industry over substances that were being regis- for SMEs. But the major concern of market,” says Tatiana Santos, senior environmental lawyers. “If changes tonne or more is in 2018. other stakeholders. The agency had tered. SMEs is the cost of collecting safety, policy officer for chemicals and na- to REACh had to be debated in the Commission: REACh Delivers to focus a lot on companies because Some registrants were not as- either jointly through Substance In- notechnology at the European Envi- European Parliament, there would The Commission acknowledged that their compliance and commitment sessing adequately the levels of formation Exchange Forums (SIEFs) ronmental Bureau (EEB), Brussels. have been pressures from a vari- it is too early to be certain of the was essential to the success of persistency, bioaccumulation and or by drawing up their own dossiers. Over the next five years of the ety of political groups for a wide benefits or disadvantages of REACh REACh. The Commission was confi- toxicity of substances. There were A major difficulty for small com- implementation of REACh, the main range of changes, which would have to the EU’s competiveness, level dent that ECHA would continue to also problems with the content panies is the fees charged within measure of its success or failure to caused a lot of political uncertain- of innovation and above all public strike the “right balance between and format of extended safety data SIEFs usually by bigger producers many people will be the number of ties.” health which had been assumed independence and stakeholder en- sheets (eSDSs) for disseminating with R&D operations for sharing hazardous chemicals, widely consid- The legislation on REACh (which to start to become evident only 10 gagement”. information in registration dossiers data through the provision of ‘let- ered to be a threat to human health stands for the registration, evalua- years after REACh came into opera- Among the Commission’s other downstream. These enlarged SDSs ters of access’. SMEs have also been and the environment, which are tion and authorisation of chemicals) tion. findings were that the quality of were often too long and not easily complaining about their dispropor- substituted by safer alternatives. stipulates that it must be reviewed Nonetheless it decided that information available for making understandable to workers handling tionate share of SIEF administrative by the Commission five years after it “REACh functions well and delivers risk assessments on substances had the chemicals. costs. Author: Sean Milmo, freelance came into force in June 2007. on all objectives that at present can improved compared with the pre- The Commission wants industry The Commission has asked ECHA science and business journalist, The Commission was obliged be assessed”. Although the need for REACh era. More information being to take steps to improve the qual- and industry to “address concerns” Essex, United Kingdom to look at a number of aspects of “adjustments” had been found, it passed down the supply chain from ity of registration dossiers and both on cost sharing while calling for the legislation, the most important had concluded that after taking into REACh dossiers was also resulting in ECHA and EU member states to do stronger incentives to “ensure an of which were “the experience ac- account the requirement for “legis- more appropriate risk management more to encourage compliance with economically efficient SIEF admin- quired with its operation” and the lative stability and predictability” measures being taken at the point of data requirements. “Industry needs istration”. chemanager-online.com/tags/ effectiveness of the European Chem- changes to the “enacting terms” of use of chemicals. to take full ownership of its registra- “The big burden for SMEs is not reach icals Agency (ECHA) – the Helsinki- the legislation were not necessary. tion dossiers and proactively work the level of registration fees but

Europe Needs Safe and Innovative Nanotechnologies

Innovation and safety should go on nanomaterials. Speaking at the base and build new value chains Presenting as a panelist at an- for nanomaterials can be clarified ated that Europe needs nanotech- hand in hand in European discus- workshop, Gernot Klotz, CEFIC Ex- with high added value.” other workshop session, Peter in REACh Annexes and guidance. nologies to achieve the goals of the sions on nanomaterials and nano- ecutive Director Research & Inno- But Klotz called for a new way Smith, CEFIC Executive Director In addition, producers, users and EU 2020 strategy. They highlighted technologies, CEFIC experts said vation, said: “Nanotechnologies are of approaching the implications of Product Stewardship, stressed that importers also need to comply with the development of key enabling at a workshop organized by the key enabling technologies that are these technologies in European pol- the current EU regulatory frame- other pieces of EU legislation ad- technologies as the prerequisite for European Commission. The work- ideally suited to help solve press- icy discussions. He said: “There is a work already provides a solid basis dressing specific applications.” smart, sustainable and inclusive shop brought together representa- ing societal challenges like energy need to bring the innovation and the for ensuring that nanomaterials are On the occasion of the workshop, growth as well as for the genera- tives from the European Parliament, storage or clean water. Deploying safety communities closer together. developed and used safely. CEFIC released together with 13 tion of new jobs in Europe. member states and stakeholders to nanotechnologies across different Both aspects have to be addressed Smith said: “Like other chemi- other industry associations common discuss the findings of the Com- industrial sectors can also help Eu- in an integrated way, looking at the cals, nanomaterials are covered by messages on nanomaterials and na- mission’s second regulatory review rope strengthen its manufacturing benefits and risks in specific uses.” REACh. Any specific requirements notechnologies. The sectors reiter- ◾

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Industry Remains Concerned about Volatility C3X Survey Reveals Increased Focus on Strategic Planning and Volatility Monitoring Initiatives

Strategy – The prolonged Great risks arising from increased volatil- ion to achieve continued competi- ity. For more than one third of the tiveness and agility. Recession has signaled a new period companies interviewed the risks Tobias Fehre, Principal in the of sustained market volatility. A recent outweigh the opportunities. For less Chemicals and Oil Practice at A.T. Chemical Customer Connectivity Index than one fifth of the respondents the Kearney emphasizes that, “for the opportunities outweigh the risks. last five years the entire world has (C3X) survey of 150 chemical industry Half of the respondents are al- ridden a roller coaster of volatility executives conducted in fall of last year ready working on strategic levers that has sparred no industry, the to improve volatility management. highlights concerns over this period These levers include improved of high volatility and the manner in strategic planning, scenario devel- Volatility is here which volatility has historically been opment, and the use of effective monitoring instruments. to stay. managed. 50% of survey respondents Two thirds (66%) of respondents stressed and increased focus on im- felt that both the most difficult and most necessary improvements to least of which the chemical indus- proved strategic planning and volatility volatility management need to be try. Successful riders looked ahead monitoring initiatives. made in the realm of strategy. Pro- on the track for signs of upcoming curement in turn is considered to dips, twists, turns and rises. The C3X need the least attention. survey emphasizes that the chemi- Volatility and volatility management Dr. Joachim von Hoyningen-Hu- cal industry has woken up to the have become buzz phrases increas- ene, Principal in the Chemicals and importance of being an alert and ingly heard around the executive Oil Practice at A.T. Kearney stresses: informed ‘rider’”. suites of the chemical industry’s “Chemical companies around the One important factor to be more largest players. The latest C3X sur- world have increasingly realized proficient in anticipating market vey, published by A.T. Kearney, CHE- that volatility is here to stay and swings is systematic monitoring. Manager Europe and Westfälische work on both capitalizing on upturns Leaders are deploying advanced and managing risks of downturns.” analytics to identify indicators that had a proven impact on their busi- The chemical Success Factor Monitoring ness in the past and are projected to industry has continue to be leading indicators in Recent economic turbulence has the future. Most agile and prepared woken up. shown that customer and competi- chemical companies integrate moni- tive structures in the increasingly toring these indicators with process- Wilhelms-Universität Münster, Ger- interconnected regional markets es on board and operational levels many has revealed that concerns are in constant motion and demand and have their action plan ready over market volatility and the fail- an appropriate degree of monitor- to act ahead of downturns and up- ings of historical volatility manage- ing vigilance and agility. “Market rip- swings. ment are very clearly on the minds ples” are now happening with great- of chemical industry executives. The er frequency and often with greater Chemical Customer Connectivity Index tives from leading European chemi- senting chemicals firms and client results of this empirical survey of effect, leading to increased volatility cal companies and of decision-mak- companies – a total of more than 150 executives in the chemical and amplified to often seismic levels in The objective of C3X is to analyze ers in customer industries working 150 executives in all. The customer its customer industries unearthed previously insulated markets and in- the chemical industry from the van- at the interface to their suppliers. industries cover a variety of differ- the following three key findings. dustries. As global phenomena, these tage points of chemical companies Participants in this sixth C3X sur- ent sectors, ranging from the auto- chemanager-online.com/en/ 47% of chemical manufacturers “market ripples” must be monitored and their customers. The survey vey included executives from more motive and food industries to the C3X see a balance of opportunities and in a systematic and centralized fash- captures the views of senior execu- than 15 European countries repre- cosmetics sector.

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chemanager-online.com/en Page 6 Markets & Companies CHEManager Europe 3/2013

ASEAN Harmonization The Southeast Asian Pharmaceutical Markets Are Undergoing a Period of Intense Evolution

Economic Growth – The Associa- CPhI Southeast Asia tion of Southeast Asian Nations (ASE- March 20–22, 2013 AN) – comprised of Malaysia, Burma, Jakarta International Expo, Indonesia the Philippines, Singapore, Thailand, Vietnam, Brunei, Cambodia, Indone- Summit Highlights: • ASEAN Harmonization sia, Laos - is carrying out harmoniza- • IPR protection tion due to be completed by 2015. The • Cross-border trade & goal of this harmonization is to create regulatory arbitrage • Innovation & consumer trends an integrated, open market across the • The CRO, CMO & CRAM industry ASEAN with uniform pharmaceutical regulation and quality control across apace at an annual rate of between 18–19% over the next few years; the region. Reformation of government however, demand is predominantly policies to support pharmaceutical being led by the purchasing of ge- production and a large, increasingly nerics. Due to recent price rises there is likely to be a sustained ef- affluent consumer base make the ASE- fort by the government to manu- AN markets a pertinent pharmaceutical facture essential drugs locally and decrease its import dependence. growth area projected to be worth $80 With a growing healthcare insur- billion by 2017. ance and self-pay market a growth in the portfolio of pharmaceuticals products and services offered in the country is likely.

Malaysia

Martin Wilson The Malaysian pharmaceutical mar- UBM Live ket is relatively small compared to the other ASEAN nations, with a In particular, the Indonesian and heavy dependency on medical im- Thai pharma industries are growing ports. However, the sector is forecast - driven by large population expan- to grow at a strong compounded sion with strong demand for phar- ment from multinational companies Country by Country Analysis cal market of Indonesia is projected mains a very open marketplace and annual growth rate. There are ap- maceutical products and robust, establishing biological facilities and to be the sixth largest of the Asian its growth and investment potential proximately 250 domestic licenced stable GDP growth. In tandem, the the government is to invest robustly Although not currently a problem, pacific region, and the economy has still remains largely untapped by big pharmaceutical manufacturers, smaller pharmaceutical markets of in biomedical research going for- the inevitable onset of an aging become conducive to long-term in- pharma, with just two contract man- with the majority servicing local Vietnam and Malaysia are rapidly ward – with western standards, the population in Southeast Asia will vestment (Foreign Direct Investment ufacturers operating in the region, markets. Tight regulation has lim- growing due to increased foreign in- country will continue to attract in- reinforce the need for long-term $ 20 billion in 2011) with inflation which handle much of the repack- ited the presence of multinational vestment and governmental support. vestment however, other countries healthcare financing. Compulsory kept in check at 4.5% and low inter- aging requirements of international companies in Malaysia; however, In the past the ASEAN region has in the region will be bigger drivers savings for medical care and social est rates. Coupled with this, the cur- firms. With the Government’s com- relaxation of legislation will attract been hampered by the circulation of growth. insurance are being introduced to rent government has demonstrated mitment to its 30 Baht healthcare large multinationals determined to of counterfeit medicines and those Healthcare systems and servic- address this. There has been politi- stability and a political will to reform scheme the domestic market will tap into this potentially lucrative with inadequate efficacy. However, es in the area are hugely diverse cally motivated decentralization of the economy whilst implementing be dominated by generics, how- market. manufacturing standards, increased with countries at different stages healthcare systems in a number measures to fight corruption. ever, AEC membership for Thailand Martin Wilson, CPhI Southeast commitment to standardvized reg- of healthcare development. The in- of Southeast Asian nations such as Indonesia possesses substantial means increasingly it will become a Asia Event Manager at UBM Live, ulation, and improved packaging creasingly politically open states of Vietnam and Indonesia, delivering pharmaceutical manufacturing ca- good base to export pharmaceuti- provides the inside track on the technologies such as track and Southeast Asia, such as Thailand, power to local governments which pabilities, with 240 domestic phar- cals to the wider ASEAN region. In region ahead of this month’s CPhI trace are combating these problems. have a growing urbanized middle will make standardization of care maceutical manufacturers and there addition, the removal of GPO (Gov- Southeast Asia event. In light of There has also been the introduction class population demanding good more difficult. Universal healthcare is increased scope for research and ernment Pharmaceutical Organisa- the rapid pharma sector growth in of legislation protecting intellectual quality healthcare serviced by a is the ultimate goal for Southeast development domestically. Legis- tion) privileges, the harmonization Southeast Asia, the new co-located property – crucial to safeguarding booming private sector. Asia, but there are still many chal- lation requiring all drugs that are of the ASEAN region (with GMP events – P-MEC and InnoPack, rep- innovation – and improving safety The detrimental effect the global lenges to be overcome including fi- sold on the Indonesian market to standards) and the Thai universal resenting innovative pharmaceuti- standards. recession had on these countries nance and infrastructure. be manufactured domestically will healthcare system bodes well for cal technology and packaging, re- has put a renewed political empha- provide a boost to national invest- the private sector – with Indone- spectively, will be launched. Specialization and Diversification sis on social security and essential Indonesia ment and lower the long term costs sia and Malaysia the main regional healthcare. of production. competitors. 22 Contact: Interestingly, some of the Southeast All countries in the region are Of the ASEAN, Indonesia is par- Martin Wilson, Asian pharmaceutical markets are striving to fund basic healthcare ticularly well placed as a center of Thailand Vietnam UBM Live beginning to specialize. The Malay- for those on low incomes and poor pharmaceutical market growth. The Maarssen, The Netherlands sian government has specifically access to healthcare, such as the country along with Thailand weath- The pharma market in Thailand is Historically local drug production [email protected] targeted the acceleration of the bi- health fund for the poor scheme in ered the global economic downturn in need of some structural reforms has accounted for half of the coun- www.cphi-sea.com otechnology sector with the aim of Vietnam. Though tax-funded cen- well and has an impressive pro- as although it is predicted to grow try’s overall needs, and the Govern- positioning the country as a leader tralized schemes do show stability, jected GDP growth rate of 6% in at double digit pace over the next ment has set an ambitious target of by 2020. The region’s established there is rising pressure from the the upcoming years, due to robust few years, it has a significant trade raising this figure to closer to 70% chemanager-online.com/en/ economic standard bearer, Singa- public to increase quality and effi- domestic consumption and primary imbalance and relies very heavily by 2015. IMS data shows that the southeast-asia pore has attracted strong invest- ciency of healthcare. exports. By 2016 the pharmaceuti- on imports. That said, Thailand re- pharmaceutical economy is growing

Clariant Indonesia Site Awarded GMP Huge Opportunities in Wacker Opens New Dispersions Plant Certification for Cosmetics Southeast Asia in South Korea

Clariant has achieved ISO 22716 Cos- With a young population of 600 mil- Wacker Chemie metics Good Manufacturing Practice lion and a fast growing middle class officially launched (GMP) certification for its cosmetics with money to spend on consumer its new produc- ingredients site in Tangerang, Indo- products, Southeast Asia offers huge tion plant for vinyl nesia. The site is the eighth Clariant investment opportunities. However, acetate-ethylene location to be endorsed with the cos- many European companies are Ervin Schellenberg copolymer (VAE) EquityGate metics industry reference standard. underinvested in Southeast Asia’s dispersions at This latest accomplishment re- emerging markets, observes Ervin its Ulsan site in inforces the company’s on-going - Fotolia.com Boston © Franck Schellenberg, Managing Partner at South Korea. The commitment to support the personal transparency and consistency that EquityGate. “Especially in Germany,” additional 40,000 care sector with guaranteed glob- our customers need to be efficient he says, “this is due to the strong metric tons from ally-consistent products and pro- in their local operations and new export position that made foreign rates have been somewhat dented the second reactor cesses. Awarded by SQS, the Swiss product development,” comments direct investment to some extent in the financial crisis, they are still line increase the Association for Quality Management Mauro Bergamasco, Head of Global unnecessary.” far higher than in Western Europe,” site’s VAE-dispersion capacity to a Having invested around €10 million Systems, the global ISO 22716 Cos- Marketing Business Unit Industrial But this is now changing. Ac- he says. total of 90,000 tons per year. The in the expansion project, Wacker is metics GMP ensures deliverance of & Consumer Specialties. cording to Schellenberg EquityGate Although the 10-member Asso- production capacity of the site has strengthening its position as one of highest quality products and pro- Eight cosmetic ingredients’ pro- is receiving an increasing number ciation of Southeast Asian Nations thus almost doubled, making the the world’s major suppliers of VAE duction standards by the cosmetics duction sites spanning Brazil, China, of enquiries from European clients ASEAN only had a GDP of $2.2 tril- plant complex one of the biggest dispersions. President and CEO sector, and also fulfils EU guidelines Germany, Indonesia, Spain and U.S.A considering investing in Southeast lion (€1.7 trillion) in 2011 (com- of its kind in South Korea. The ex- Rudolf Staudigl emphasized the for cosmetics production. have so far been approved within the Asia, in particular. “And rightly so,” pared with Germany’s some €2.6 pansion is Wacker’s response to the strategic importance of the new re- “The extension of ISO 22716 ac- global ISO 22716 Cosmetics GMP cer- says Nigel Jones, Managing Direc- trillion), with a rapidly growing GDP rising demand for high-quality VAE actor line for Asian markets: “The creditation to Indonesia and across tification accredited to Clariant in De- tor at Alpha Advisory in Singapore. per capita (the top three countries dispersions, especially in South- demand for top-quality VAE dis- the rest of our sites is official testi- cember 2012. Authorization for Clari- He partners with EquityGate when are already at European levels) the east Asia’s emerging markets. The persions is continuously rising in mony to our ability and dedication ant’s eight remaining locations serv- it comes to helping European com- future looks rosy and offers huge op- project goal is to ensure sufficient Southeast Asia, especially for those to provide not only exciting and ing the personal care sector should be panies prepare for market entry in portunities for investing in ASEAN capacities of Vinnapas VAE disper- used in formulating low-emission, sustainable innovations, but the finalized by the end of 2013. ◾ the region. “Even though growth countries.◾sions now and in the years ahead. eco-friendly products.” ◾

chemanager-online.com/en CHEManager Europe 3/2013 Markets & Companies Page 7

BASF to Reshuffle Corn Crop R&D as Sanofi CEO Upbeat Despite Pressure from Syngenta Ups Feed Production Patent Expirations and Generics

BASF Plant Science is adding corn high yields and improved resist- In 2012, what CEO Christopher Vieh the patent for the anti-clotting drug as a target crop to its fungal resistance to stress conditions, partly in bacher called “a milestone year” for Plavix, once the world’s second best ance research platform while at the a key partnership with U.S. agricul- the French drug maker, Sanofi was selling prescription drug, is expect- same time ending research activity tural mammoth Monsanto. BASF battered by patent expirations and ge- Christopher A. Viehbacher ed to shave around €800 million off © atoss - Fotolia.com © atoss into nutritionally enhanced corn in shocked the European market in neric competition. Net sales grew by CEO, Sanofi first-half earnings. the U.S. market. It is also halting the 2012 with its decision to move the only 0.5% at constant exchange rates For the near future, Sanofi has European approval process for potato headquarters of the plant science to €34.9 billion, with net sales lost to a “robust” phase III pipeline that products Fortuna, Amadea and Mod- business to the U.S.. generic competition totaling €1.3 bil- includes drugs for cancer, multiple ena. The German chemical giant said Syngenta meanwhile is invest- lion. Net income at constant exchange the R&D front, which resulted in sclerosis, cholesterol and a vaccine continuation of the European projects ing $77 million to quadruple its was down 7% to €8.2 billion. nine new drug approvals over the for Dengue fever, Viehbacher said. “cannot be justified due to uncertain- corn feed production at Formosa, Viehbacher said the results, course of 2012. Over the next year the company ty in the regulatory environment and R&D activities for fungal resist- Brazil to 1.6 million bags by 2015. which were marked by a dismal The CEO said Sanofi’s business plans to spend €1-2 billion on bolt- threats of field destruction. ant corn will be located at BASF The Swiss agrochemicals giant is re- performance in the fourth quar- will see “two dynamics in 2013. In on acquisitions to its growth plat- The discontinuation of the corn Plant Science’s new global head- sponding to the planned nearly dou- ter, were “more or less what we the first half, the company’s perform and remains open for “oppor- enhancement project will lead to quarters in Research Triangle Park bling of Brazilian by 2020 spurred expected at the beginning of the formance will look less favourable, tunistic” share buybacks. It is also closure of six of the group’s U.S. field in North Carolina. Field testing by growth in the animal feeds mar- year.” On a more positive note, he compared with the more positive on track to deliver its planned €2 sites in Olivia, Minnesota, Hender- sites will be based in North Caro- ket. Over the same period, the value said the company’s growth plat- business development of the 2012 billion in cost savings by 2015, the son, Nebraska, Weldon and Syca- lina and the U.S. midwest region. of the country’s corn seed market is forms, that now represent 70% period. In the second half, a return CEO added. Around 60% of the tar- more, Illinois, Estherville, Iowa and The chemical group’s plant science expected to reach $2.7 million with of business, increased their sales to growth will be seen. For the full get was reached in 2012. Savings of one of its two sites in Ames, Iowa. subsidiary will continue to focus increased second season production by 10% last year. He pointed also year, earnings per share can be ex- around €500 million are budgeted Some 40 jobs will be eliminated. on development of corn crops with and greater technology adaption. ◾ to “extraordinary progress” on pected to be 5% lower. Expiration of for 2013. ◾

Shell Grows Singapore Petchems Footprint Titanium Dioxide Market Heads for with New Polyols Investment Consolidation as Kemira Exits

In a project due for completion in The upgrade will achieved by The polyols expansion is part of The global titanium dioxide market, and Saudi Arabia’s Cristal Global. “The market environment for tita- 2014, Shell is upgrading its Singa- optimizing existing facilities and a drive to strengthen the group’s hit by weak pricing due to overca- To ease the overcapacity situation, nium dioxide changed completely pore production facility for poly- deploying a catalyst that improves worldwide propylene oxide and pacity, appears to be headed for con- producers cut output in 2009. De- in 2012, causing a deterioration of ols by more than 100,000 t/y and onsite conversion of propylene ox- derivatives business. In November solidation. In mid-February, Finish mand from the automotive industry the performance of the JV Sachtle- adding new grades. The additional ide and ethylene oxide. Shell said 2012, Shell and joint venture partner water treatment chemicals specialist subsequently rebounded but prices ben. The sale to Rockwood will also products will help meet demand its proprietary technology con- SABIC announced plans to develop a Kemira sold its 39% stake in German came under renewed pressure as pressure Q1 2013 earnings due to growth from key markets in Asia sumes less energy and process range of polyols and styrene mono- TiO2 producer Sachtleben for €97.5 idled plants were restarted. a voluntary €25 million writedown and China, the oil and petrochemi- materials as well as generating mer propylene oxide plants at their million to its joint venture partner, Rockwood, which merged its own related to the transaction, he said. cals group said. less waste. SADAF facility in Saudi Arabia. ◾ U.S. holding Rockwood. The latter TiO2 assets with those of Kemira in Titanium dioxide consumer, has now confirmed plans to exit 2008, blamed in major part weak Dutch paints and coatings manu- the market by the end of 2013 and demand for the paper bleaching facturer Akzo Nobel said in late competitor Tronox has told analysts pigment for its 65% year-on-year February it expects a price squeeze

Bayer Buys U.S. Land for Films Expansion it may be interested in picking up decline in net earnings in the for the TiO2 producers as their pric- the assets. Rockwood said another fourth quarter of 2013. es will likely remain flat while oil The U.S. arm of Bayer MaterialSci- company is “committed to its spe- Deerfield site manufactures and sells option under consideration is a spin- Presenting quarterly and full and petrochemical prices rise. Pro- ence (BMS) has purchased nearly 11 cialty films business in North Amer- thermoplastic polyurethanes, poly- off of the loss-making business to its year 2012 results in early Febru- ducers of the pigment are target- acres (4.45 hectares) of land adja- ica, and this land purchase support carbonate polymer and polycarbon- shareholders. ary 2013, Kemira CEO Wolfgang ing price hikes in March, following cent to its South Deerfield site near our future growth plans for this im- ate blends as well as speilaty film The turbulence besetting the Büchele said the TiO2 situation a year of declining notations; how-

Pittsburgh, Pennsylvania, allowing portant region,” said Shaun Gaus, and sheet for applications such as TiO2 market has negatively affected had a “substantial” impact on the ever, reports say they are unlikely for expansion of its NAFTA-based general manager, Functional Films medical, automotive, sports/recrea- earnings of producers, which also company’s earnings, which were to be successful due to long avail- business with functional films. The NAFTA. The Bayer sub-group’s South tion and safety & security. ◾ include U.S. chemical giant DuPont negative at €40.6 million last year. ability. ◾

Science Driven By the Market SITE OPERATION. SITE SERVICES. UTILITIES. WASTE MANAGEMENT. LOGISTICS.

◂◂ Continued Page 1 >> ENABLING EXCELLENCE: OUR SITE OPERATION. Over the past three years, the company has invested considerable From site services and utilities to waste management and logistics to sums to develop an “outside in per- end-to-end site operation – leverage our expertise as a pioneering site operator spective, which its chief calls a “real for the chemical, pharmaceutical and related process industries. Discover what it industrial marketing approach.” This strategy is an integral part means to be “infraserviced”. www.infraserv.com of BMS’ cooperation with Japanese professor Yoshiyuki Sankai, a renowned expert in exoskeletal robotic systems. The company is contributing an extremely lightweight, super strong reinforced polycarbonate material to Sankai’s much- touted Hybrid Assisted Limbs (HAL)

You cannot radically change the culture of a 150-year-old company. As part of the cooperation with Japanese professor Yoshiyuki Sankai, a renowned expert in exoskel- therapeutic program, designed to etal robotic systems, BMS is contributing an extremely lightweight, super strong reinforced polycar- help people with neurological inju- bonate material to Sankai’s much-touted Hybrid Assisted Limbs (HAL) therapeutic program. ries regain use of their limbs. Due to the bulky encased elec- a sustainable structure that draws are academic, such as the techni- tronics, the polycarbonate skin is energy for heating, ventilation and cal university at Aachen, Germany, not much of a fashion statement, lighting from renewable sources, which helped developed the catalyst especially when worn under cloth- employs an insulation concept based for BMS’ Dream Reaction route to ing. “Not everyone wants to look like on BMS’ polyurethane raw materi- producing polyols from waste CO2. Iron Man or the robot HAL in Stanley als and is used as a showcase for The outside-in strategy is one Kubrick’s film 2001, A Space Odys- the company’s technological com- that Thomas intends to anchor even sey,” Thomas muses. To find a more petence. more strongly at Bayer MaterialS- attractive solution, BMS, together Some of our competitors simply cience in future. “If you watch us with Sankai and his venture capital sell building products, but we take over the next few years,” he says, firm Cyberdyne, launched a design a more holistic view, Thomas says. “you will see us recruiting more and competition. The invitation to tender “If we’re asked if we have a certain more people you would recognize went out as a iPad app, and design product, we always say yes.” The as professional marketeers rather institutes paid to participate. A Ger- company has built up a network of than just scientists. About 70% of man contestant emerged the winner. more than 90 external partners that what scientists do should be driven From the chief executive’s view- are paying to participate in the Eco- by the market.” point, the outside-in strategy is the Commercial building. One of them biggest cultural change to take place will be able to provide a solution. within BMS under his leadership. It “In the end, we all benefit,” says the chemanager-online.com/en/ is also being applied to promotion of CEO. “It’s the Science for a Better plastics the Bayer EcoCommercial Building, Life” principle. Some of the partners

chemanager-online.com/en Page 8 Markets & Companies CHEManager Europe 3/2013

Getting The Pulse Singapore Aims to Be a Model of Sustainable Development As it Sets Out for the Next Phase of Growth

The Lion City – The Merlion – a mythical creature with the head of a lion and the body of a fish – is regarded as the Singapore icon

(“Singapura” means “lion city” in Sanskrit). As one of the world’s leading energy and chemical hubs, Singapore’s contribution to the chemical industry is vast, both in terms of output and research. The city state in the center of Asian emerging markets continues to receive glowing reviews year after year for its infrastructure, manpower capa- © Aleksandar Mijatovic - Fotolia.com © Aleksandar Mijatovic bilities, as well as ease of doing business. And the Republic is constantly working to stay at the forefront of the industry’s advance- ment and benefit from the Asian growth story. Michael Reubold spoke with Kian

Teik Beh, International Director Europe of the Singapore Economic Development Board (EDB) about Singapore’s strategy to create a perfect business en- Kian Teik Beh, International Director Europe, vironment for chemical and pharmaceutical companies. EDB Singapore

CHEManager Europe: Let us start sectors such as specialty chemicals, factors that speak for Singapore. In , so they can speak the language of ministration to production to re- and materials that are necessary, but by looking back three years. Dur- food or pharmaceuticals. These sec- particular, the ease of setting up and their customers. search & development. Examples our accountability is to be responsible ing the global crisis of 2008/2009 tors are responding to the growing doing business as well as the availa- The next thing that you need is include GlaxoSmithKline, Johnson & for how we produce them. We look at that hit the entire world, Sin- demand of the Asian emerging mar- bility of talent. Talent is a key enabler product development, because you Johnson, Procter & Gamble, Abbott, it from two themes; competitiveness gapore’s economic growth rate kets for nutrition, health & consum- for this complex and dynamic indus- have to be innovative. The pace is Evonik, Wacker, Mitsui, Clariant, and sustainability. We have been em- dropped to negative 2%. How did er care, construction materials or try and good people are limited, es- very fast, so you have to put new Celanese, Lanxess or Unilever. If the phasizing this for some time and we your government react to that un- transportation. The growth that we pecially in a region that is growing at products on the market not just eve- market is there, you have no choice: call it our Jurong Island version 2.0 precedented situation and how did are experiencing is also testimony to a fast pace. So you need to pick a lo- ry three years, but every two years you have to be there in order to get initiative. We talk about being more Singapore’s economy rebound in the Asian growth story. cation that maximizes your chance of or almost every year. the pulse and the feel of the market. efficient, we think about energy and the aftermath of the crisis? Before the economic crisis, most finding or attracting skilled staff. Sin- Again, speed is of the utmost im- feedstock options because as Sin- companies were focusing their at- gapore’s distinguished academic es- portance and you require the fast When we are talking about manu- gapore positions itself for the next K. T. Beh: During that period of uncer- tention on China, but now they are tablishments produce a well-trained setup and additional staff to meet facturing and production we are phase of growth, it aims to be a model tainty, the government responded thinking beyond China. They see the pool of engineering and management your needs. For product develop- probably talking about Jurong Is- of sustainable development. We are in a very level-headed and clear- emerging markets of Southeast Asia talent as well as skilled technicians. ment, companies need to hire sci- land. taking the lead in terms of raising the sighted way by setting aside extra like Indonesia, Vietnam, Thailand In addition, the multi-cultural, open- entists, engineers, and product de- bar in energy efficiency, emissions budget to help companies co-share and Myanmar. Companies want to minded character of our modern city velopers. Singapore is able to fulfill K. T. Beh: Yes. Jurong Island is an inte- management as well as accelerating their hiring costs and train their em- respond to these growth opportu- makes international staff and their those hiring needs. The strong local grated complex housing many of the the development of new, sustainable ployees. It was a period when de- nities in a manner that will allow families feel comfortable. talent base, complemented by di- world’s leading energy and chemical feedstock and technologies.

Singapore’s position as a global chemicals hub started with the amalgamation of seven small islands The establishment of the Biopolis, a state-of-the-art infrastructure for the life sciences, has enabled The Merlion – a mythical creature with the head of a lion and the body of a fish – is regarded as the into Jurong Island, an integrated complex housing many of the world’s leading chemical companies. Singapore to develop swiftly into a global biomedical sciences hub. Singapore icon. mand plunged dramatically and no- them to grow with the market but You mentioned the ease of setting verse international talent contribute companies. As you know, there are A number of high impact projects body knew how long the uncertainty also make sure that the growth is up and doing business in Singa- to a world-class workforce, which big plants like the steam crackers. will be implemented over the next would last. We took the opportunity sustainable. Therefore, they choose pore. What governmental initia- companies can hire from to quickly But now the story for us is down- few years. These include key in- to improve Singapore’s industrial a location within this region that will tives aimed at attracting investors ramp up their operations and drive stream development. Once you have frastructure such as a gasification base. As soon as the economy re- allow them to be flexible depending to Singapore are going on right growth in Asia. got that scale, there is critical mass plant and a LNG terminal for one bounded – at a pace that was unex- on where the growth is. And this is now? Given the nation’s strong track re- to produce downstream molecules. and a half billion dollars. We feel this pected – we grew at 14.9% in 2010. the story of Singapore. Everyone is cord for intellectual property rights is the right investment for energy Germany adopted a similar model of looking for growth, but at the same K. T. Beh: Quite a few actually. Let me protection, Singapore is ideal for So you want to go into specialties? security, but also for clean energy. providing support for the industry, time they want to be in a place explain them from the standpoint of companies seeking to develop and We also actively support com- and I believe that is why Germany where they feel comfortable. the companies looking for a new lo- commercialize proprietary products K. T. Beh: Exactly, that is what we are panies to encourage adoption of also grew above average. cation in this region. The first thing and technologies. interested in. Our aim is not just to energy efficiency improvement And Singapore is a perfect home these companies need is a place On the front end, which is the be a hub and a production center for projects. We have programs to sup- But not every Asian economy re- base and hub for all the Southeast for them to set up their business market, we have set up the Institute basic chemicals, but to take those port manufacturers to do efficiency bounded at such a high rate. Why Asian countries? quickly. We are able to help com- on Asian Consumer Insight, an in- chemicals from the big steam crack- benchmarking and help to them to is that? panies set up office and lab facilities stitute conducting market research. ers and the basic chemical plants upgrade their efficiency. So, we pay K. T. Beh: Yes, and also for other in a way that best suits their needs. Companies are able to find in and use them on Jurong Island for attention to the big things but also to K. T. Beh: The reason why Singapore markets around the region/ For It takes 30 minutes to register an Singapore the whole infrastructure downstream industries. Singapore is the minor details, because every sin- grew at that speed was because peo- instance, Korea, Taiwan, India, Pa- enterprise and companies can ei- they need to establish a business, well-positioned to further expand the gle thing will help make the industry ple were going for re-training dur- kistan, Australia and New Zealand. ther rent or build a new facility if staff it, obtain market information chemical industry by focusing on high a little bit more efficient. ing the economic downturn. When Some companies even cover Africa they want to. So within a very short and start working with customers. value-added specialty chemicals. the economy rebounded, employers from Singapore. period of time, their physical lab is 22 Contact: didn’t have to hire new staff because up and they can start hiring well- We have spoken about companies Sustainability is a big issue in Singapore Economic Development Board, they were still meaningfully em- What makes investors from the educated, technically trained, multi- in general. Can you mention some the chemical industry now. If you London, UK ployed, well-trained and prepared. chemical and pharmaceutical in- disciplinary local staff. Education is of them who have set up subsidi- think about a place with a lot of Tel.: +44 207 484 2700 As we had prevented minimal lay- dustry feel comfortable in Singa- one aspect of the macroeconomic aries or even headquarters in Sin- petrochemical industry, it doesn’t [email protected] offs, our economy was able to react pore? investment that we have done. Be- gapore? necessarily go hand in hand with www.sedb.com to the surging demand immediately. ing a multi-ethnic society, Singapore sustainability. Another reason for Singapore’s K. T. Beh: Besides being strategically is a microcosm of Asia and , you can K. T. Beh: Yes. The top chemical and chemanager-online.com/en/ high growth rate is a changing mind- located in the center of the Asian hire people who are able to speak pharmaceutical corporations have K. T. Beh: No, it does. I think that all of industrial-locations set of investors. Take for instance growth markets, there are several English, Mandarin, Malay and Tamil operations in Singapore, from ad- us recognize that these are products

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www.twitter.com/ CHEManager_EU CHEManager Europe 3/2013 Chemi cals Page 9 Urbanization as a Growth Driver Lanxess Expands its Global Production Network for Pigments with a New Plant in China

Global Networking – Specialty at its Jinshan site near Shanghai. means wherever our customers are Why did the company decide to in the world, we’re close to hand. chemicals company Lanxess is expand- build the new plant at a different ing its global production network for site? What role will Germany and the inorganic pigments and building a rest of Europe play in your produc- J. Hellwig: Ningbo offers us the best tion network in the future? new plant in China for the Inorganic conditions for building a new plant Pigments business unit. The new facil- that meets cutting-edge standards. J. Hellwig: Krefeld-Uerdingen is our The infrastructure in the chemical largest site and perfectly equipped ity for high-quality iron oxide red pig- park there is excellent and perfect to be globally competitive. Over the ments is being erected at a cost of €55 for our needs. Due to the introduc- past few years, we’ve really done million at the chemical park in Ningbo, tion of extremely stringent environ- our homework in Germany – a busi- mental standards, manufacturers ness location that many consider to on the eastern coast of China. The pig- in China are being forced to invest be “expensive” – and further boost- ments will be marketed worldwide massively in the treatment of waste- ed competitiveness through invest- water and waste air. We did that ment, particularly in automation under the product name Bayferrox in Jinshan, after buying the plant and efficiency enhancements. Ac- and are intended for use in the paints there, and naturally we will do the cordingly, we are making full use and coatings sector and in the con- same when building the new facility of the outstanding benefits that the in Ningbo. site offers, such as the exceptional struction and plastics industries. The We have also established that the level of training among the work- rising demand for these high-quality demand for environmentally friend- force and integration into a cutting- ly and sustainably manufactured edge chemical park. In the coming and sustainably produced pigments is products is on the rise. Lanxess is years, we will continue to optimize being driven by growing urbanization one of the leading suppliers in this our processes and delivery service – a megatrend and a key focal point in field and applies the same high en- – an approach that will see further vironmental standards wherever investment in Germany as a produc- Lanxess’ growth strategy. Michael Reu- and whenever it is active. In many tion location. bold asked Jörg Hellwig, head of the cases, these standards go beyond local guidelines. Synthetic iron oxide pigments Inorganic Pigments business unit at were developed back in the 1920s. Lanxess, about his strategy for the unit. Will these market conditions lead Just how “innovative” is your busi- to an ongoing consolidation? ness? What are you researching and what new areas of applica- We have optimized J. Hellwig: This trend – the demand tion could be important for your CHEManager Europe: Mr. Hellwig, our processes for environmentally friendly and products in the future? the investment in the new plant in so that we can sustainably manufactured products Ningbo underlines the importance – is set to continue and will also lead J. Hellwig: Iron oxide pigments have of urbanization as a megatrend for respond faster to to a further increase in the demand been part and parcel of day-to- Lanxess and the Inorganic Pig- increased volatility. for Bayferrox iron oxide pigments. day life for almost a century. All ments business unit. What kind of That is why Lanxess is continuing the same, the performance profile growth do you expect worldwide to invest in the pigments business. demanded by the various applica- for inorganic iron oxide pigments? However, it remains to be seen how tions has changed significantly over Jörg Hellwig, head of the Inorganic Pigments business unit, Lanxess many of the current manufactur- that period. Take for example the J. Hellwig: We look at a range of stud- ers are financially able to make this requirements that the paints and ies and our customers’ growth plans space, modern approaches are in- technical iron oxides such as Bayox- growth on the Indian subcontinent kind of investment and how many coatings industry places on us – the and analyze the markets. All our creasingly taking esthetic dimen- ide E B 90, which is used in the bat- and in Southeast Asia. Indeed, China will have to pull out of the market. dispersibility of pigments is a par- findings show that the global mar- sions into account, too. Architects teries of electric vehicles and there- is already the world’s biggest mar- We anticipate that, in the medium ticular challenge in this application. ket for iron oxide pigments is con- are thinking about how they can fore responds to the megatrend of ket for iron oxide pigments. Thanks term, some of our competitors will The micronization process we have tinuously growing. When viewed in make concrete more attractive, and mobility. to our global distribution network, simply have to shut down produc- introduced responds to this need detail, the rate of growth differs from sooner or later they come across we can sell our products in virtually tion – not just in China, but world- and is still a cutting-edge technology region to region and according to the our pigments. Whether paving ma- What are the growth markets from every country on Earth. That makes wide. The process of market consoli- today. The world has also changed area of application. The new facility terials, roofing tiles, wall coatings, a geographical perspective? us less vulnerable to regional eco- dation will continue. when it comes to the need for con- in Ningbo will give us additional ca- laminates or artificial grass, colorful nomic fluctuations. sistent quality. The paint and coat- pacity that we can use to serve the objects that don’t require extensive J. Hellwig: We have a global customer The group-wide production of in- ings industry applies stringent de- growing markets across the world. maintenance work and are pro- base. While our traditional markets Lanxess is already running one organic iron oxide and chrome mands to the specification of shade For example, the construction indus- duced on a sustainable basis are in are in Europe and North America, of the biggest plants for iron ox- oxide pigments is still centered in and color strength. Our response try is set to grow by 3.5% worldwide greater demand than ever before. recent years have seen burgeoning ide pigments in the Asian market, Germany, but additional capaci- was to introduce the Bayferrox High this year and by 5% next year. What’s ties are primarily required in the Performance product line. Our prod- more, we have optimized our pro- Are there other applications driv- growth regions. Where do you plan ucts have now reached a quality cesses so that we can respond faster ing growth? to make further investment? standard that we could never have to increased volatility. dreamed of 50 years ago. J. Hellwig: Lanxess has identified J. Hellwig: We are the only manufac- What exactly is driving growth? three further megatrends besides turer of synthetic iron oxide pig- urbanization that serve as focal ments with a global production net- 22 Contact: J. Hellwig: One of the main growth points for our business strategy and work. Our current three synthesis Lanxess Inorganic Pigments drivers for our sector is the meg- we offer iron oxide pigments for all sites are located in Krefeld-Uerdin- Leverkusen, Germany atrend of urbanization. The con- of them. Bayoxide E 33 is relevant gen in Germany, Jinshan/Shanghai [email protected] struction, plastics and paint and to the megatrend of water because it in China and Porto Feliz near São www.lanxess.com coatings industries all benefit from is highly effective in binding arsenic, Paulo in Brazil. We also have addi- this trend. People are flocking to cit- enabling the purification of drink- tional mixing and milling plants for ies and ever larger urban conurba- ing water in all regions of the world. processing iron oxide pigments in tions are springing up. Furthermore, Bayoxide E 16 is highly promising Australia, China, the United King- although urban planning originally for the megatrend of agriculture, as dom, Spain and the United States. All chemanager-online.com/en/ had an entirely utilitarian focus and it can be used in desulfurizing bi- The stately structures with impressive architectural features of the Plaza de la Libertad complex in these sites are networked and not pigments was geared solely towards creating ogas plants. We are also developing Medellín owe their distinctive coloration to Bayferrox pigments. restricted to their local region. That

Reverdia Starts World’s First Large- Scale Bio-Based Succinic Acid Plant Join the Oxo People at the

Reverdia has begun operations in as essential to be able to promise EUROPEAN COATINGS SHOW 2013 Cassano Spinola, Italy, at a com- further improvements in product mercial-scale plant producing bio- quality. Applications for Biosuccin- Our know-how, experience and ﬂ exibility have made us a reliable the oxo people based succinic acid (Biosuccinium). ium include polybutylene succinate partner for the Coating Industry. The plant, which has a capacity of (PBS), polyester polyols for polyure- about 10,000 t/y, is the world’s first thanes, coating and composite res- t%JTDPWFSPVSXJEFSBOHFPG4PMWFOUT $BSCPYZMJD"DJET 4QFDJBMUZ dedicated large-scale plant for the ins, phthalate-free plasticizers, and Esters and Polyols production of sustainable succinic 1,4 butanediol. “This new phase will t%JTDVTTZPVSBQQMJDBUJPOBOEOFFETXJUIPVSUPQTQFDJBMJTUT acid from renewable resources. enable direct and indirect customers Visit us at stand 516 in hall 1 The facility benefits from experience to start production of commercial t Find out how we can help you to develop your business with our gained using low-pH yeast technol- scale volumes of materials and end /VSFNCVSH (FSNBOZto.BSDI ﬂ exible capacity allocation, expansions and completion of our ogy on a demonstration plant scale. products based on bio-based suc- product portfolio www.oxea-chemicals.com Reverdia, a joint venture between cinic acid“, said Will van den Tweel, DSM and Roquette, regards this Reverdia’s General Manager. ◾

chemanager-online.com/en Page 10 Chemicals CHEManager Europe 3/2013

Combining Performance and Sustainability Features at the European Coatings Congress 2013 Include Nanotechnology, Waterborne Systems and Biobased Coatings © Nürnberg Messe © Nürnberg

Formulating The Future – flame-retardant and fire-resistant John Florio and Dr. Ravi Ravichan- So-called nanogels or microgels are terials and their antimicrobial effi- from Byk-Chemie, will explain how coatings. The pre-congress tutorials dran from King Industries will dedi- the topic of Professor Walter Richter- ciency. to take advantage of this new and Decreasing availability of classic raw will be on March 17, right before the cate two sessions to the advantages ing. He will present the advantages of Achieving antimicrobial charac- fascinating material. materials such as oil affects the coat- congress officially starts. Seats for of these diols and polyols in high- functional microgels as smart ingre- teristics of coatings without using ings industry like any other. The Euro- these tutorials are limited, and since performance amino-formaldehyde dients for waterborne coatings. silver is the aim of Dr. Alan Taylor. Sustainability and Biobased Coatings the main congress and the tutorials cross-linked coating applications. He will introduce CuViTo, a Euro- pean Coatings Congress in Nuremberg are individual events, pre-registra- The pressure on reduction of Waterborne Coatings pean-Mexican joint venture aimed Nevertheless, sustainability and the therefore will focus on biobased and tion is recommended. critical solvents in coatings and res- at developing new products for the role of biobased coatings are the ins is another challenge within the Challenges of waterborne coatings Mexican mining industry. To avoid most important issues of this year’s sustainable coatings. Presenting the lat- Congress Highlights automotive industry. Robert Har- keep the industry busy, and innova- high raw material costs, CuViTo is congress. In a session led by Dr. Da- est results and industrial developments, rer from Cytec will present a new tions to face those challenges will be doing research with copper instead vid Löf from PPG Europe, the latest the congress will cover the full range of Keynote speakers for the main solvent-free waterborne two-pack presented at the European Coatings of silver. The challenge for copper innovations in biobased coatings will event on March 18–19 are Dr. Adithy binder for plastic coatings, which Congress. Benoît Magny from Arke- coatings is to restrain the copper be presented. In order to improve processes and raw materials for the for- Ranade from Lux Research and can be used for applications with ma will lead the “waterborne coat- nanoparticles in a structure that the carbon footprint, renewable ma- mulation of coatings, inks, adhesives, Klemens Bartmann from DuPont highest demands, such as automo- ings” session. New defoamer lines provides antibacterial functionality. terials like sugar play a more crucial Performance Coating. The combi- tive interiors. Dennis Heymans from and foam control agents have been The financial opportunities might be role. How sugar-derived biobased sealants and construction chemicals. nation of performance and sustain- Momentive Specialty Chemicals will developed to ensure predictable per- worth this effort. building blocks can be used to build From March 17 to 19 more than 144 se- ability will play a crucial role in take his listeners on “a possible formance of waterborne coatings. Dr. polyester resins will be explained by lected papers will provide the industry’s both speeches. Ranade will cover route to solvent-free transportation Sowmitri Tarimala from Ashland and Nanotechnology Bas van Leeuwen from Purac. assessing sustainability in archi- and automotive topcoats.” He will Christine Louis from Air Products will To find sustainable solutions in latest trends and innovations. tectural coatings. He will reveal a demonstrate how to optimize the talk about these new developments Nanotechnology can be used not high-performance coatings and ad- tool to assess the true sustainability process of solvent distillation from and their value for the industry. Dow only to achieve antibacterial char- hesives, polyurethane dispersions Tutorials value of coating technologies rela- high-quality acrylic resins. Chemical will send Dr. Jay Romick acteristics but also for a wide range are the key in many cases. Hans- tive to their performance value to The session “Science Today – to Nuremberg to present new water- of applications. Because of avail- Georg Grablowitz from Bayer Mate- In 11 pre-congress tutorials, numer- the end user. Klemens Bartmann, Coatings Tomorrow” will cover a borne polyolefin dispersions. These ability of new materials there are rialScience will present first results ous experts will offer training op- on the other hand, focuses on new wide field of highly innovative topics. dispersions can facilitate coatings still only a limited number of prod- of the development of polyurethane portunities from the fields of func- sustainability challenges for global Professor Bernhard Rieger, Wacker- with excellent chemical resistance, ucts containing nanoparticles on dispersions based on biobased raw tional and architectural coatings players in the coatings industry. He Chair of Macromolecular Chemistry, adhesion to metal and flexibility. the market. Ninja Hanitzsch from materials. to renewable chemicals and more. will discuss how to approach envi- TU Munich, will discuss “Materials Byk-Chemie will be “Breaking New Dr. Jamil Baghdachi from Eastern ronmental regulations and how to for the 21st Century” and the ques- Antimicrobial Properties Ground” as she presents additives

Michigan University will discuss ef- turn challenges into opportunities. tion “Can carbon come from CO2?” based on nanoparticles, which are Author: Philipp Praet, freelance forts to reach the goal of sustainable The 24 main sessions will start How to use responsive nanopar- How to use the power of silver for easy to handle and ready to use. Re- journalist technologies without compromises. with trends in automotive coatings. ticles to form coatings that change antimicrobial purposes will be dis- search and investment in nanotech- Dr. Adrian Beard and Daniela Ei- How novel polyester diols and ure- their surface properties is the issue cussed on March 19. Alexandra Pica nology already has led to interesting senhauer from Clariant will cover thane polyols are capable of impart- of Professor Andres Fery from the from the Research Institute for ad- results: Additives based on carbon flame-retardant fundamentals as ing and enhancing a variety of prop- University of Bayreuth. He will point vanced coatings will talk about the nanotubes can be used as a versatile chemanager-online.com/en/ they speak about the burning behav- erties in high-performance coatings out the perspectives of this approach influence of silver nanoparticles on material to achieve new functionali- ecs ior of different materials as well as is one of the most discussed issues. for the example of bioactive coatings. the morphology of film-forming ma- ties in coatings. Tobias Tinthoff, also

Solvay Expands Output of HD Silica Thai Acrylic Fibre and Sanitized Form Formulation-Enhancing Solutions

and Derivatized Guar Alliance for Co-branding Dow Chemical will showcase its ing performance requirements. The portfolio of technologies and solu- business offers products based on Solvay is increasing its worldwide cently expanded output at its Vernon, Thai Acrylic Fibre Co. Ltd (TAF) and The additive is added to the fiber tions for the coatings and construc- cellulose ethers, re-dispersible la- capacity for highly dispersible sili- Texas, site in the US to supply cus- Sanitized have signed a co-branding polymer before it is spun, containing tion industries at the 2013 Euro- tex powders and acrylic emulsions. ca (HDS) by 30% with investments tomers in the oil and gas market. At agreement and licensing program it within the unique fiber structure pean Coatings Show. Dow Coating Dow Consumer & Industrial Solu- in Poland and China. The company its site at Zhangjiagang site in China’s for TAF’s Amicor fibers. The new alli- rather than acting as a surface coat- Materials collaborates closely with tions develops multifunctional neu- has budgeted €175 million for a new Jiangsu province, it widened output ance covers the co-branding of future ing. When Amicor fiber is used at the customers to develop end-use prod- tralizer technologies, which provide 85,000 t/y plant to be built at Wlo- for the home and personal care sec- product developments using Amicor recommended blend level it ensures ucts that are faster and easier to performance benefits such as prod- clawek, Poland. Among other HDS tor to meet growing demand for high- fibers and yarns and the Sanitized durable and effective protection of use, resist stains, enhance air qual- uct stability, efficient pigment dis- products, the new unit will produce end hair care products. Including its hygiene function. Under the new the entire fabric. ity, offer longer-lasting protection, persion and enhanced scrub resist- Zeosil Premium, a highly dispersible facility at Melle, France, Solvay is the agreement, the world leading Sani- “Innovation has always been the and use fewer natural resources. ance, the business also offers AEPD silica used in energy-saving tires. only guar supplier with production tized antimicrobial hygiene function trademark of the Amicor brand, as Innovations to be presented at the VOX 1000 Multifunctional Neutraliz- At Qingdao, China capacity of the capability on three continents. is built in to all Amicor fibers. has our strong emphasis on hu- show include the extended Evoque er, which was specifically developed facility started up in 2010 is being Produced from a bean grown Recently, Amicor has unveiled man and environmental safety”, Pre-Composite Polymer Technology for use in zero-VOC paints and offers expanded to 112,000 t/y by the end mainly in India, the polymer guar is new Biocidals Product Directive comments Ambrish Maheshwari, range, which is designed to help improved freeze-thaw resistance of this year. In 2012, HDS output used as a bio-based solution for appli- (BPD)-compliant fibers and yarns. CEO of the Acrylic Fibres Business paint formulators maintain hiding and with virtually no odor. was increased in France, in 2011 in cations in the oil and gas industry as The Amicor anti-bacterial and anti- of TAF’s parent company Aditya performance while using up to 20 Dow Epoxy will feature its ex- the US. When all the expansions are a gelling agent, in hair care products fungal intelligent fiber–integrated Birla Group. “This shared philoso- percent less TiO2. panded line of curing agents, res- completed, Solvay’s worldwide pro- as a conditioner and in the agricul- technology was developed by Cour- phy with Sanitized, a brand at the Dow Construction Chemicals ins and diluents, including the new duction of HDS will double against tural sector as an anti-drift formula- taulds/Acordis (UK) in 1998. The forefront of antimicrobial protec- will highlight solutions that permit D.E.H. Curing Agent family, which pre-2010 levels to nearly 500,000 t/y. tion. For 50 years, Solvay has secured technology is specifically designed tion, made the creation of an alli- building material manufacturers brings formulators and end users Solvay has also increased its global raw materials supply through its to incorporate the functional anti- ance a logical progression for both to enhance the value they bring to numerous benefits to enhance per- derivatized guar production by 40%. partnership with guar gum and guar microbial additive into the core of companies.” applicators by formulating future- formance in construction chemical The Belgian chemical producer re- extracts producer in India. ◾ the fiber. ◾oriented products that meet evolv- applications. ◾

chemanager-online.com/en CHEManager Europe 3/2013 Chemicals Page 11

Construction of Oxea’s Specialty Sustainability Remains a Top Driver in Surfactants Derivatives Plant in China On Track

Oxea’s first oxo derivatives plant in “China is the main growth engine Coatings – Solvay Novecare is a selective existing products in both print analysis, etc. – and introduce Nanjing Industrial Chemical Park, for the Asia-Pacific region,” said leading supplier of performance ad- emulsion polymerization and coat- technologies and products that en- China, has passed the planning stage Miguel Mantas, Executive Board ing formulations. able progress toward low environ- ditives to a variety of paint and coat- and construction is under way. Oxea member for Marketing and Sales. Simon Mawson mental impact, high performance expects its the plant to be complete “Thanks to the favorable strategic ing applications. With its expertise in Solvay Thus, sustainability is a major and cost effective coatings. at the end of 2013. The new state- location of our new plant we will be formulations, rheology, surface modi- trend? of-the-art production site will serve able to better serve our customers fications and polymer associations, the Which trends do influence our the fast-growing demand for oxo in the region. Initially the Oxea Nan- former Rhodia business is able to de- S. Mawson: Yes. The industry is also business the most? derivatives in China and Asia. Oxo jing plant will produce specialty es- identifying ways to reduce formal- liver custom-made solutions adapted derivatives are key ingredients and ters, phthalate-free plasticizers and CHEManager Europe: Mr. Maw- dehyde and heavy metal content, S. Mawson: We believe that sustainabil- are used in many sectors of China’s other oxo derivatives for the local to niches’ needs and customers’ par- son, what do you see as the main and conducting life cycle and car- ity, performance, raw material avail- economy, including automotive, con- market,” he continued. ticular requirements. Solvay Novecare trends on the market for coatings? bon footprint analyses. Bio-sourced ability and cost are the primary issues struction, cosmetics, pharmaceutical develops and manufactures products surfactants also are gaining interest facing the market today. Sustainabil- and personal care products. ◾ that are used as additives in formula- S. Mawson: Performance additives, in the market in an effort to reduce ity remains a top driver in surfactants such as surfactants, dispersants, de- the carbon footprint for paints and for coatings. Significant efforts are tions and provide enhanced surface foamers, amines and other function- coatings. engaged to accelerate the conversion wetting, improved coating adhesion al additives, including freeze-thaw to APE-free and VOC-free products Raw Materials for High-quality Paints to substrate, superior dispersion sta- and open-time extenders, remain What is Solvay doing to support due to regional regulatory guidelines bility and gloss, enhanced color devel- the key components in the transition these trends? set by the U.S. Environmental Protec- opment and stability, or better foam from solvent-borne to waterborne tion Agency, the South Coast Air Qual- formulations. The same holds true S. Mawson: Solvay has been working ity Management District the Califor- control. In addition, the products are for the transition from conventional alongside its customers since the nia Air Resources Board, the Ozone effective in minimizing production waterborne to low- to zero-VOC wa- 1990s to design surfactants and spe- Transport Commission Specifications, mixing time and improve manufac- terborne formulations. Customers, cialty additives that reduce the im- etc., and the EU Directive 2004/42/ turing efficiency. CHEManager Europe especially in North America and Eu- pact on health and the environment. CE to limit emissions for paints var- asked Simon Mawson, Global Director, rope, are using APE-free and VOC- Our primary focus is to service our nishes and refinishing products. We free additives only for new develop- customers’ “greener” technology have also seen a big market push Coatings Market at Solvay Novecare, ment and are replacing APE- and needs – whether that means VOC- by big box franchises for Eco Label about current trends in the coatings solvent-containing surfactants with free, APE-free, reduced heavy metal and Green Seal for more eco-friendly market. APE-free and VOC-free versions for content, life cycle and carbon foot- products. ◾

BASF will be presenting many dif- ers wanting a lead-free formulation ferent products and services at the of especially bright and durable yel- ECS in Nuremberg. low shades. They offer a broad coating raw Coating manufacturers are look- material portfolio for the Archi- ing for dispersing agent solutions tectural Coatings & Construction, with top performance in the grow- Industrial Coatings, Automotive ing market segment of water-based Coatings and Furniture & Flooring coatings. The new Dispex Ultra PX Coatings industries. 4575 boasts benchmark perfor- One example is the Bismuth Va- mance in inorganic pigments, pro- nadate pigment Sicopal Yellow EH viding improved color development 1567 (L 1130). With features such and lower viscosities in order to help as high color strength, increased reduce pigment usage or increase opacity and exterior durability, this pigment loading. This product in- new pigment is designed to meet the novation meets the requirements of 5 - 6 June 2013 needs of the decorative, industrial the European eco-label for indoor and automotive coatings markets. It and outdoor paints and varnishes MOC, Munich , Germany offers an ideal solution for custom- (2009/544/EC and 2009/543/EC). ◾

Algicide Formulation Claimed to CONNECT AT CHEMSPEC 400+ exhibitors | 5,000+ visitors | 2 days Reduce Ingredient Leaching in Paints � Flow Chemistry Symposium (Royal Society of Chemistry) Lanxess, which claims to be one of the company said, is a slow-release the world’s leading manufacturers technology developed by research- � Chemspec Careers Clinic, in partnership with of biocides, has developed a new ers in its Material Protection Prod- formulation method for algicides in ucts business unit that exhibits “a Chemical Search NEW paints. The company said the new far better ingredient retention in the method offers additional benefits for color matrix than standard dry-film � Regulatory Services Zone Seminars (REACHReady) paint producers. preservation products. Several tests have shown it to “Far lower” quantities of the � Green Chemistry Workshops (Newreka) NEW reduce active ingredient leaching active ingredient are said to be caused by rain by 50% compared able to deliver results comparable � Technical Workshops (Scientiﬁ c Update) to conventional algicides, thus ex- with those achieved with a product tending the life of the coating. At based on conventional formulation � CAC Agrochemical Forum NEW the heart of the formulation method, methods. ◾ � Pharma Outsourcing Forum

Dispersant for Waterborne, Binder- � Research & Innovation Zone NEW containing Pigment Dispersions � Exhibitor Showcase CONTACT THE SALES TEAM: TEGO Dispers 761 W is designed dispersions, properties like gloss and specifically for waterborne printing color strength are enhanced signifi- John Lane inks and coatings for food packaging. cantly. It drastically reduces the mill T: +44 (0)1737 855 076 The wetting and dispersing additive base viscosities of dispersions based Chemspec Europe is your gateway to the ﬁ ne, consists completely of raw materi- on organic pigments and carbon E: [email protected] custom & speciality chemicals industry. Connect als compliant with the A list of Swiss blacks. This characteristic enables with manufacturers, suppliers and end users from To ﬁ nd your nearest sales agent, Ordinance SR 817.023.21, Annex 6. the production of highly pigmented a wealth of sectors. By using TEGO Dispers 761 W in wa- mill bases which can result in sig- visit www.chemspeceurope.com terborne, binder-containing pigment nificant cost savings. ◾ REGISTER ONLINE NOW FOR FREE FAST-TRACK Polymer Binders for Concrete & SHOW ENTRY www.chemspeceurope.com Construction Applications

At the (ECS) in Nuremberg Wacker is get to the scene of an accident in- showcasing its latest polymer bind- side a tunnel quickly and without ers for concrete modification and any problems. Organised by: In association with: Incorporating: Ofﬁ cial media partner: environmentally sound construction Furthermore, it facilitates the applications. The new Etonis 260 transport of moisture from the tun- makes drainage concrete for road nel, significantly reduces the forma- surfacing in railway tunnels durable tion of puddles or backed-up water yet water-permeable. This enables and makes the surface more dura- rescue vehicles and fire engines to ble overall. ◾

chemanager-online.com/en Page 12 Plastics CHEManager Europe 3/2013

Color And Functionality Clariant Masterbatches Pursues Strategy for Profitable Growth Based on Four Key Elements

A Colorful World – Masterbatches Clariant is well are adding color and functionality to positioned to plastics and, thus, help enhance the face medical market appeal or the end-use perfor- and pharma mance of plastic products, packaging ceutical customer or fibers. The business unit Master- demands. batches of Swiss specialty chemical manufacturer Clariant is a recognized global leader in color and additive con- for the sake of change but to meet and exceed our customers’ expecta- centrates and performance solutions tions. for plastics. CHEManager Europe asked How does this strategy tie-in with Hans Bohnen, head of Clariant’s Mas- Clariant’s corporate Performance. © vipman4 - Fotolia.com terbatches business unit about the BU’s People.Planet values unveiled last business situation and growth strategy. year? Hans Bohnen, head of Masterbatches Business Unit, Clariant H. Bohnen: Appreciating the needs of our customers is fundamental to re- CHEManager Europe: Mr. Bohnen, on four key elements, with the goal alizing Clariant’s corporate commit- 2013 is now well underway. How to create products and service value ment to deliver added value for our did Clariant’s Masterbatches busi- by meeting customers’ needs. The stakeholders and partners, and be- ness perform in the last year, what changes have been implemented come the global leader in specialty is your outlook for 2013? within our operations. Therefore we chemicals. The Performance.People. are beginning to see a more efficient Planet values are an integral part H. Bohnen: We can definitely see the and focused organization. This will of this approach, at the heart of our negative impact of the continuing enable us to improve the levels of actions and defining our corporate economic slowdown in Europe, es- service and innovation we can of- culture. They describe the way we pecially in the southern economies. fer to our customers and allow us do business and the values that are While Germany was somehow shel- to concentrate on those innovation- our top priority in our interaction tered in the first half of 2012, we did driven markets where demand for with others. will continue to do so. Further in- Through our ongoing commit- sectors such as packaging, medical, see the first indications of a slow- support is strong. These values are therefore at the vestments into regional expansion ment to innovation we will bring to energy and construction. Resources down in the second half. It is difficult center of our BU strategy. We are will be communicated shortly. This market products that support our will be focused in strategic locations to make a projection for the full year. You mentioned a “strategy based only successful if our customers en- is just a snapshot of our ongoing customers in the challenges they globally, ensuring continuous inno- Following a weaker December we on four key elements”. Can you joy success; therefore we strive to program to improve support for face – the need for differentiation, vation processes and strong inter- saw a rebound in January and we explain this? offer them innovative, customized customers at a local-level. to be more efficient yet still cutting- faces with key partners. expect sales on a level comparable solutions focused on improving per- The changes to our operating edge, to fulfill tightening market to last year. In 2010, we developed a H. Bohnen: The four elements em- formance model will be felt by customers as we regulations, and be environmental- Medical is one segment where clear strategy for profitable growth. brace growth via regional initia- enhance products and services we ly-considerate. Clariant has taken a sector-dedi- 2012 was another year in which we tives, a focus on the most attractive What will the Masterbatches strat- offer customers. For example, devel- cated approach. Will this approach successfully continued our execu- market segments, implementation egy mean in reality to your cus- opments have been made in creat- You mentioned “Building the next be extended to other market seg- tion. In 2013 we do not expect a sig- of an industry-leading operational tomers? What direct benefits will level of innovation” as one of the ments during this year? nificant recovery in our industry. Es- model, and building the next level they experience? four strategic key elements. What pecially Europe will at best stabilize of innovation. Our goal is to cre- is meant by this? H. Bohnen: Within Clariant’s focus on a low level. We are investing in ate products and services value by H. Bohnen: Through our strategy we Appreciating on supporting specific market seg- growth in emerging markets and we meeting customers’ needs, and a fo- want to create added value, ad- the needs of H. Bohnen: We recognize that Clariant ments, the organization is well pre- believe that we can already capture cus on these four elements will help dressing significant unmet customer our customers is will need to reach beyond its current pared and positioned to face medi- some of this in 2013. We are con- us attain this. and market needs as a key part. In portfolio in order to create maximum cal and pharmaceutical customer vinced that we can further deliver The strategy principally involves order to achieve this, Clariant has fundamental. value and address the significant un- demands. Our medical segment has on our profitable growth aspiration investment initiatives, be it invest- invested more than CHF 60 million met customer and market needs that a high demand on GMP and product for the business unit. ment in strategic sites, in operations, to improve access to local supply exist. Under the focus topic “Build stewardship. This is why we work or innovation-related investments and on-the-ground support for cus- ing a robust supply chain system for the Next Level of Innovation” Clari- with a sector-dedicated approach. Where and how is Masterbatches in all global regions, and realigning tomers in the emerging markets of North America and in Europe that ant is committed to go beyond its The fast growth we enjoy for this looking to support its customers our way of thinking to ensure we Asia, Latin America, India and the will lead to improved on-time and current portfolio to ensure the sus- segment shows that this was the most in the coming year? truly appreciate and respond to the Middle East as well as in Europe in-full delivery of Clariant Master- tainability of the Masterbatches inno- right decision. unmet needs of our customers and and North America during the last batches. Clariant is also continually vation pipeline. The BU is engaged in But within the Masterbatches BU H. Bohnen: Our customers will benefit markets. This means extending our 2 years. One recent example is the driving improvements in areas such long-term projects and breakthrough we have installed dedicated teams through an even stronger footprint infrastructure through upgrades, construction of our new site in In- as complaint handling, lead-time and developments and in doing so, is for each segment, not just medical, and improved services. This new capacity expansions or investment donesia which will go on stream by quality levels at all sites. partnering with customers, suppliers, to enable us to meet all possible approach towards innovation leads in new sites, implementing efforts the end of this year. Furthermore, Our global footprint and global leading institutes and universities to requirements on the customer side into a solid innovation pipeline, to improve the efficiency of internal we have invested CHF 14 million in standards are 2 clear assets we are make sure promising ideas reach efficiently and effectively. further enhanced capabilities and operations, and focusing our innova- a new plant in Poland to improve able to offer our customers. Our market maturity and are converted resources. Clariant is continuing to tion, processes and services on fields capacity, capability and flexibility global key account and product into real value for customers. strengthen on-the-ground technical and markets where we can deliver in order to meet local customer de- management organization ensures During 2013, we will strengthen and product support for customers maximum value. mand in Central and Eastern Eu- implementation of best practices, our innovation activities through the across the globe. Back in 2011, we Every change we initiate inter- rope. In addition, we have expanded highest standards and latest de- addition of further dedicated per- chemanager-online.com/en/ introduced a new Masterbatches BU nally must lead to an improvement our sites in Russia, Saudi Arabia, velopments on a global base. Think sonnel and equipment to help solve tags/masterbatches strategy for profitable growth based for the customer. We do not change Mexico and Pakistan in 2012 and global and act local is our strength. identified challenges, focusing on

Sabic Expands Research Pact Clariant Opens New Plant for Novomer Claims First Large-Scale with Zurich’s ETH AMPS Polymers in Spain PP Polyol Manufacturing Run

Saudi Arabian petrochemical giant tional films and nanotechnology. Clariant has started up its new €16 & Consumer Specialties and Oil US company Novomer has com- with fine chemicals producer Albe- Sabic has expanded its multi-year Collaborative projects with well- million plant for specialty polysul- & Mining Services business units, pleted the world’s first large-scale marle at the latter’s Orangeburg, agreement with the Swiss Federal established scientific organizations fonates at Tarragona, Spain. The ranging from emulsifiers and rhe- run of polypropylene carbonate South Carolina, site. Institute of Technology (ETS) Zurich and research centers are an essen- facility, which will supply the cos- ology modifiers for use in face (PPC) polyols produced from waste The material produced is a 1,000 to cover multiple future projects in tial part of Sabic’s R&D concept, said metics as well as the mining indus- creams to fluid loss control addi- CO2 with more than 7 t of finished molecular weight PP diol. Novomer a wide range of areas of technology Ernesto Occhiello, executive vice try, incorporates the most modern tives for well cements used in oil product. The firm, which received a is working with companies of the and innovation. president technolgy and innovation process technology available. Two and gas drilling operations. Output $25 million grant from the US De- polyurethanes industry that will test This follows a research collabo- at the Saudi group. separate lines will manufacture will meet growing demand from the partment of Energy for the project, the new material in their production ration agreed in 2012 covering func- ◾ polymers for the group’s Industrial market. ◾ scaled up the process in cooperation processes. ◾

chemanager-online.com/en CHEManager Europe 3/2013 Plastics Page 13

Bayer’s New Chemicals Value Chain

CO2 and Hydrogen from Renewables Become New Raw Material and Energy Sources

Modern Chemical Engineer- products so that the buyers of the polyurethanes do not have to invest ing – Bayer Group is set to take a in new processing equipment.” crucial step in 2013 in the realization of its plans to create a new chemicals Building Blocks for Polymers? value chain based on the conversion of In the longer term the objective is

CO2 into a range of intermediates using to use CO2 as a building block for a range of polymers. The CAT Catalyt- stored energy from renewable sources ic Center is already doing research like wind. work on the creation of aliphatic as well as polyether polycarbon- At the INVITE R&D center in Lev- ates and on the catalytic copolym- erkusen, jointly run by Bayer Techo- erization of CO2 and epoxides and logy Services (BTS), the company’s CO2 and styrene oxide. “With the engineering arm, and Dortmund right catalysts CO2 is easier to acti- Technical University, the company vate than expected,” Guertler said. is in spring due to start operating a “There is more to come.” demonstration CO2-reforming reac- Bayer’s R&D activities on the tor. The CO2 will react with hydrogen development of zinc-air batteries, from a renewables-powered elec- which are powered by oxidizing trolysis unit to produce intermedi- zinc with oxygen from the air, are ates such as carbon monoxide and separate from those in catalysis in- formic acid. novations. Instead the research is fo- “We are finding ways of creating cused on optimizing the batteries by a new value chain by making use of exploiting Bayer’s new oxygen de- waste CO2 from power generation polarized cathode (ODC) technology and hydrogen coming from cheap for a more energy-efficient electrol- energy,” Professor Hans-Wilhelm ysis membrane process for making Engels, research director at Bayer chlorine. The ODC technology, which MaterialScience, said at a recent changes membrane electrolysis to a press conference at RWTH Aachen fuel cell concept through the feeding University, Germany. in of gaseous oxygen, reduces ener- The demonstration unit will pro- gy consumption in chlorine produc- vide a platform not only for mak- tion by at least 30%. ing CO2-derived polymers and other Zinc-air batteries have the ad- products but also for the develop- vantage of a high specific energy ment of technologies for the storage density of 1,100 watt-hours/kg, giv- of excess energy from renewables Christoph Guertler, head of the Bayer MaterialScience catalysis program. ing them a higher capacity/volume like wind and solar power. than other types of batteries. But

able at a very low price,” Christoph CO2RRECT (CO2-Reaction using to play a key role in the interdisci- researching a concept using a two- they have had short life cycles be- Research and Development Guertler, head of the BMS catalysis Regenerative Energies and Cata- plinary research projects managed phase reaction system in a continu- cause of the build-up of materials program explained. “We believe that lytic Technologies) has 13 partners, by Bayer on the use of power plant ous process which applies super- on the zinc electrode and clogging

Initially the company’s research ef- given the right scenario with the hy- headed by BTS, including BMS. The CO2 as a chemical raw material. critical CO2 to help provide pure of pores for the intake of air. forts are being focused on the opti- drogen electrolysis process the cost others comprise RWE Power AG, the “Without the CAT Catalytic Center, formic acid. In a collaboration with partners mization of a process under which of the electricity will be much lower suppliers of the CO2, Siemens, the we most certainly would not have “We have been working on new in industry and academia and with surplus wind energy is used for than it is today so that the technol- originator of the electrolysis tech- progressed so quickly in developing ways to make formic acid for 20 funds from the German Ministry of electrolysis of water into hydrogen, ogy would be economically viable.” nology, and a number of scientific these projects,” Guertler says. years and naturally our research fits Economics and Technology, Bayer is which can be a means of storage. institutes. into our joint project with Bayer,” aiming to use ODC to sort out these

But the hydrogen can also be uti- The CO2RRECT Project The development of the catalytic The CO2 Feedstock Professor Walter Leitner said, chair problems. The company is already lized for the hydrogenation of CO2 to technologies is being conducted by of technical chemistry and petro claiming that “a breakthrough may formic acid which provides a much In Germany Bayer is not alone in the CAT Catalytic Center, Aachen, The CO2 comes from RWE’s site at chemistry at RWTH and scientific now have been reached“ with the more stable form of energy storage. pursuing a new chemicals value an international catalysis research Niederaussem, Germany, where the director at the CAT Catalytic Center. introduction of a “flowing electrolyte

Bayer is involved in a longer-term chain based on CO2 and renewables. hub, founded in 2008 by Bayer carbon dioxide is first separated Among the technologies being and special electrodes in conjunc- scheme for storing electrical energy The development of the electrolysis and RWTH Aachen University with from flue gas and liquefied before developed by the CAT Catalytic Cent- tion with the ODC technology.” from renewable sources with the aid process powered by wind energy support from the German state of being put into cylinders for trans- er in collaboration with CO2RRECT The ODC process for chlorine of large zinc-air batteries, which if is the main aim of the €18 million North-Rhine Westphalia. In Septem- portation to Leverkusen. the closest to commercialization is production which is currently being they can be designed to operate effi- CO2RRECT project, mostly funded ber 2012, the unit secured another For the production of for- the catalytic conversion of CO2 into tested at a demonstration plant at ciently would be environmentally safe by the German Ministry of Educa- five years of funding from Bayer and mic acid from CO2 and hydrogen, polyols for reacting with isocyanates Uerdingen Chempark, Germany, is and relatively inexpensive with large tion and Research (BMBF). RWTH. As a result it will continue RWTH Aachen University has been into polyurethanes. already due to be marketed jointly quantities of cheap and readily avail- CO2 reacts with a zinc-based this year with ThyssenKrupp, the able raw materials. However a major catalyst to make polyether polycar- engineering group which helped in uncertainty overshadowing the use of bonate polyols for the production its development. The zinc-air battery excess renewable sources is the cost of both rigid and soft polyurethane will take much longer to commer- and availability of the surplus energy. foam products, polyurethane coat- cialize. “It will be run like a chemical In Europe, power generators cur- ings and thermoplastics polyure- plant,” Professor Engels said. “Solv- rently are obliged to buy at mini- thanes (TPU). ing the few problems it has before mum prices guaranteed amounts of “The zinc catalyst was known it can be commercialized will take energy from wind farms and other about for around 30 years,” Thomas several years.” renewable sources under the Euro- Mueller explained, head of research For Bayer in its drive to create pean Union mandatory targets for at the CAT Catalytic Center. “We new raw material and energy infra- use of renewable electricity. worked on it in the lab to scale it up structures for chemicals production, for pilot plant production within five the current priority is the develop- Missing Storage Technology years. The real success of this unit ment of technologies and facilities

is taking things from the lab up to for making CO2 a building block Today, due to the absence of ecocommercial scale feasibility.” project with energy coming via the nomically viable storage technolo- Bayer is aiming to start large- hydrogen electrolysis route. gies, the surplus energy produced by scale production of the CO2-based wind and solar power operators on polyols with the mattress market be- windy and sunny days is lost. How- ing the first to be targeted because ever once these technologies are of the flexibility of its polyurethane developed it is unclear how much foams and their greater flame re- Sean Milmo, freelance science and of the surplus energy could be made tardancy compared to those of con- business journalist available and at what cost to com- ventionally produced polyurethanes. panies like chemical producers with “We want the properties of the innovative storage processes. polyurethanes with the CO2 polyols “Hydrogen from the electrolysis to be reasonably similar to those chemanager-online.com/en/ program could be very cheap if there already on the market,” Guertler tags/raw-materials is lots of renewable energy avail- Pilot plant for production of the CO2-based polyols. said. “We want them to be ‘drop-in’

Air Liquide Invests €65 Million Corrected Fluor Wins EPCM Services Contract for BASF’s to Supply Huntsman at Botlek BASF Widens German Capacity … Ludwigshafen TDI Plant In CHEManager Europe 1-2/2013 we reported on BASF’s ca- Air Liquide is spending €65 area of the port. When it BASF has chosen Fluor to provide port from Gliwice / Poland, has been 2014, including investment in facili- pacity expansion for Ultramid B (polyamide 6) film at Lud- million on a new carbon comes on stream in the first engineering, procurement and con- actively involved in the single-train ties upstream of the facility. BASF is wigshafen and its plans for a global expansion of capacity for monoxide plant in Rotter- half of 2015, the facility will struction management (EPCM) ser- project since 2011, performing sup- currently number two worldwide in the chemical intermediate 1.6 hexanediol (HDO). The story dam port as part of a long- double Air Liquide’s capacity erroneously stated that the expansion concerned polyamide vices for the new 300,000 t/y TDI port services for both the pre-front- TDI, behind Bayer MaterialScience. time supply agreement with for the product in the basin. 12 and also contained an incorrect figure for the HDO expan- plant it is building at its Ludwig- end design (pre-FEED) and FEED. It also produces the polyurethanes Huntsman. The CO unit will The French gases said it has sion. In fact, the German chemical group will spend over €30 shafen headquarters. No contract The world’s largest chemical precursor at Geismar, Louisiana in be built next to two TDI invested €400 million in this million to increase capacity for 1.6 hexanediol to more than value has been disclosed. The U.S. group is spending €1 billion to up- the U.S., Yeosu, South Korea and in plants the U.S. chemical pro- key industrial area over the 50,000 t/y (rather than 50 million t) by 2014. contractor’s operations center at grade TDI production at Ludwig- a joint venture with Sinopec at Cao- ducer operates in the Botlek past five years. ◾ Haarlem, The Netherlands, with sup- shafen by the fourth quarter of jing, China. ◾

chemanager-online.com/en Page 14 Plastics CHEManager Europe 3/2013

100 Years of PVC The European Polyvinyl Chloride Industry’s Journey from Patent to Sustainability

Modern Materials – Polyvinyl applications, PVC’s environmental performance is comparable to or Chloride (PVC) has come a long way even better than alternative mate- since the German inventor Friedrich

© Christian Nesset rials. Klatte received the first patent for PVC In Europe in particular, pro- grammes such as VinylPlus and in 1913. PVC’s journey to becoming its predecessor Vinyl 2010, have the world’s third largest-selling plastic boosted the industry by improving the way PVC is manufactured and has not always been easy. In the past increasing collection and recycling. century a lot has changed in the way Since Vinyl 2010 was launched in PVC is manufactured and used, espe- 2000, more than one million tonnes of PVC has been recycled in Europe cially in Europe where the industry is (257,084 tons in 2011. Problematic fully devoted to rendering PVC a truly additives such as cadmium stabilizers have been phased out. Lead sustainable material that can drive the stabilizers will have been completely transition towards a greener economy. substituted by 2015.

The Future Ahead

The entire European PVC industry value chain, from resin to addi- Dr. Brigitte Dero tive producers and converters, will Deputy General Manager, Light gray colored PVC fabric is used for the stadium cover of the new Juventus Arena in Turin, Italy. continue working together under VinylPlus the VinylPlus program launched in and volumes increased dramatically reliable service through their entire Brighton and Hove Council found tries such Japan has stabilized, the 2011. Following a pioneering open Like many great things in life, Poly- around the world. Developers quick- life-span and cutting down massive- that using PVC products instead of growing economies and populations process of stakeholder dialogue vinyl Chloride – PVC – was first cre- ly found further, innovative uses and ly maintenance and repair needs, as alternatives helped a municipality of booming countries such as India based on The Natural Step System ated thanks to multiple and acciden- refined manufacturing methods to demonstrated in a 2011 study com- to save £36m (€44 million) over a and China will require increasing Conditions for a Sustainable Society, tal discoveries in different places improve durability, opening the door missioned by the European Council period of five years. volumes of PVC in the near future. the industry has identified a series at different times during the 19th to applications in the construction of Vinyl Manufacturers (ECVM). This Latin America and the Middle East of key challenges in the following century. However, it was not until sector. analysis, which looked at window Market Evolution in Times of Crisis – as a major hydrocarbon-producing areas - emissions, energy and raw 1913 that Friedrich Heinrich August This plastic’s resistance to light, frames, flooring and pipes, showed region – also present substantial op- material consumption, recycling and Klatte from Germany became the chemicals and corrosion made it the that PVC provides decisive cost ad- According to market research pub- portunities for expansion. sustainable use of additives. first inventor to receive a patent for best option for building applications vantages, not only in its low initial lished by companiesandmarkets. In the current economic climate, VinylPlus’ vision is well-captured PVC with a polymerization method such as window profiles, roofing purchase and installation price but com, global demand for PVC has market growth forecasts for Europe in the topic chosen for its 2013 an- for vinyl chloride using sunlight. membranes or wall coverings. En- seem to be stabilising but there is nual event – “Smart, sustainable and hancing the material’s resistance to certainly hope for such a dynamic inclusive growth for Europe and From the Lab to Mass Production extreme temperatures enabled PVC and committed industry which is beyond” – which also reflects the to be used in piping water to thou- working hard to improve the way desire to consolidate what has been Despite being one of the oldest syn- sands of homes and industries. PVC is manufactured. Its on-going accomplished while it continues to thetic materials in industrial pro- Its low cost, excellent durability sustainability efforts are a perfect expand to other countries. Only by duction, PVC’s early history was not and light weight continue to make it fit for important EU policies such as uniting efforts and working together characterized by successful com- the material of choice for dozens of the “2020 Resource Efficiency Flag- with a common set of objectives can mercial applications. The material industries including health care, IT, ship Initiative” or the “Energy Road- the PVC industry guarantee many was difficult to work with and a long transport, textiles and construction. map 2050”. They aim at increasing more centuries of economic pros- way from the versatile polymer it has Few other materials are as versa- resource efficiency as a way to cre- perity delivering essential products become today. In fact, no real useful tile or able to meet such demand- ate jobs and new opportunities for for everyday and industrial appli- purpose for PVC was found until the ing specifications. A great example Europe, improve productivity, drive cations. Friedrich Klatte would be 1920s when Waldo Semon, an Amer- is the 2012 London Olympic Games; down costs and boost competitive- certainly proud to see how far his ican industrial scientist, made PVC more than 140,000 m2 of PVC were ness while minimising energy con- invention has come. a more functional material while used in a number of sports facilities sumption and greenhouse gas emis- trying to create a synthetic replace- and buildings including the Olympic sions, all of these objectives very Author: Dr. Brigitte Dero, Deputy ment for natural rubber, which was Stadium. much aligned with the work of the General Manager, VinylPlus becoming increasingly costly. European PVC sector. Sales took off eventually when What Makes PVC Special? PVC started being used as a water The Road to Sustainability 22 Contact: resistant coating for fabrics. De- Modern PVC is a thermoplastic PVC resin powder: First patented in 1913, PVC is the world’s third largest-selling plastic today © ECVM European Council of Vinyl Manufacturers (ECVM) / mand accelerated even more dur- made of 57 per cent chlorine (de- PVC’s century of history has not VinylPlus ing the Second World War when it rived from industrial grade salt) also throughout the lifetime of the risen from 22.2 million tonnes (mt) been without controversy. Twenty Belgium became the standard insulation for and 43 per cent carbon (derived product. in 2000 to 32.3mt in 2011 and is years ago PVC came under the Tel.: +32 2 676 74 45 wiring on military ships, thanks to predominantly from oil/gas via eth- Affordability is without a doubt expected to top 49mt by 2020. Con- spotlight due to concerns about the [email protected] its superior safety and non-flamma- ylene). It is less dependent on crude one of the key success factors for struction, packaging and electrical way it was produced and disposed www.pvc.org ble electrical properties. oil or natural gas than other poly- this polymer. Research carried out applications account for 17,9mt, of. Scientific investigations and the www.vinylplus.eu mers and therefore can be regarded in the UK by the Stockton-on-Tees 3,6mt and 2,7mt respectively, implementation of new industry ini- On the Road to Stardom as a natural resource-saving plastic. Council has shown that twice as around 75% of global PVC demand. tiatives have helped to reassure us- In addition, most PVC products many PVC windows can be installed Asia is currently the region with ers and consumers. In addition, Life chemanager-online.com/en/ Over the next decades, many more are long-lasting – in some cases as timber windows for the same the highest commercial potential. Al- Cycle Assessment and eco-efficiency pvc companies started to produce PVC more than 70 years – providing a price. Another UK study done by the though demand in developed coun- studies have showed that for many

Fluoropolymer Material for Architectural Applications Surface Aesthetics Solutions for the Automotive Market

More and more architects all over Borealis and Borouge have developed the world are turning to light foil material solutions for some of the constructions to develop their own important challenges that the global designs and environmentally effi- automotive industry is facing. Latest cient building practices. However, product innovations in surface aes- constructions high up in moun- thetics are focusing on the areas of tains face extreme requirements primerless paintability and the elimi- that could only be fulfilled by solid nation of flow marks, also known as structures until now. Climatic con- tiger stripes. In the future, these ma- ditions with strong winds, snow terial solutions will not only enable loads, temperature variations of car manufacturers to achieve defect- up to 60°C and intense UV radia- free surfaces, but also help them capi- (OEMs), Borealis has undertaken a commercialized towards the end of tion call for robust construction talize on the benefits of reduced costs, major R&D initiative. Core aspects 2013 is a new polypropylene matrix materials. Now, environmentally- environmental impact and optimized of this initiative include the develop- to be used in compounds to address friendly lightweight constructions production cycle times. ment of 2-layer paintable materials the phenomenon of tiger stripes, are conquering this climatic zone. Due to their cost reduction po- for bumpers and body panels which a flow mark issue caused by con- The elegantly sculpted foil construc- tential and sustainable appeal, pri- have been able to withstand tough verting processes, and a general tions of the Gaislachkogl cable car merless paint systems for exterior steam jet conditions in the labora- problem affecting all thermoplas- in the Austrian winter resort Soe- Texlon, a Swiss specialist, im- lachkogl cable car with just a sin- plastic applications are becoming tory environment and Borealis’ in- tic materials, including polyolefins. lden blend harmoniously into the plemented the design and used gle layer as the stations will not increasingly popular in the industry. vestment in its own automated paint Supported by way of trials carried mountains in the Ötztal Alps. The extremely high tear-resistance be heated. In contrast, multi-layer Yet at the same time, paint adhesion robot. “The trend is clearly towards out with several customers, this mountain station is 3,040m above Nowoflon foils extruded by Nowo- foil cushions are normally used for performance criteria are becoming the use of primerless paint systems on Borealis innovation will help avoid sea-level, making it the highest foil fol in Germany. As raw material the closed buildings as they have very ever more stringent. As most exte- exterior plastic components to reduce tiger stripes within a very broad construction in the world. The foils company uses ETFE fluoropolymer. good heat insulation properties. rior parts are painted, demands on total part costs,” emphasizes Jost Eric processing window. are extruded from 3M Dyneon ETFE This material is non-flammable, re- innovative solutions for improved Laumeyer, Borealis Global Marketing high-performance plastic and are sistant to UV exposure and provides 22 3M/Dyneon, Neuss, Germany paint adhesion are increasing. Manager Engineering Applications. 22 Borealis extremely tear-proof, UV-resistant near-universal chemical resistance. [email protected] Driven by the needs of leading Another Borealis material inno- Vienna, Austria and highly transparent. Texlon made the foils at the Gais- www.dyneon.eu original equipment manufacturers vation which is scheduled to become www.borealisgroup.com

chemanager-online.com/en CHEManager Europe 3/2013 People · Publications · Events Page 15

125 Years of Angewandte Chemie

“Angewandte Chemie”, one of the tions will be given by renowned most renowned chemistry journals speakers like François Dieder- in the world, celebrates its 125th ich, Helmut Schwarz, George M. Dr. Gilles Della Corte has been appointed as Director of Clinical Development anniversary this year. On this oc- Whitesides, Alois Fürstner, Robert Plastics in Automotive Engineering 2013, and Dr. Eva Castagnetti as Director of Product Development at Anergis. casion, the journal owners – the Schlögl, E. W. “Bert” Meijer, Susumu 13 – 14 March 2013, Mannheim, Germany Della Corte and Castagnetti will expand the management team and will German Chemical Society (Gesells- Kitagawa, Andreas Kreimeyer, and strengthen the late-stage drug development expertise of the developer chaft Deutscher Chemiker, GDCh) – Carolyn R. Bertozzi, including the The international congress Plastics in Automotive Engineering organized of allergy vaccines for allergen-specific immunotherapy. Della Corte, MD, together with its publishers – Wiley- three Nobel Prize laureates Roald by German Engineers Association VDI in cooperation with VDI Society brings to Anergis extensive expertise in global clinical development. In VCH – are holding an anniversary Hoffmann, Jean-Marie Lehn, and for Plastics Technologies is widely recognized as “the” meeting-place for the past 22 years, he worked both for pharmaceutical companies and for symposium on Tuesday, March Ahmed Zewail. During the event, the automotive industry. It features a technical conference and a trade CROs. Castagnetti, PhD, has several years of experience in both technical 12, 2013. The live, physical sym- the Carl Duisberg medal will be exhibition by raw material producers, manufacturers of plastic process- and business management functions in the biopharmaceutical industry posium will be held in the Henry awarded to Dr. Eva E. Wille, Vice ing machines, plastics processors, and system suppliers. The conference with Lonza, Senn Chemicals and Rapid Pharmaceuticals. Ford Building of the Freie Univer- President, Executive Director, provides a comprehensive overview of current developments in plastics sität Berlin, Germany. It will also be Chemistry, Wiley-VCH. at the German manufacturers of passenger cars and commercial vehicles. broadcast over the internet through Car manufacturers discuss which plastics and plastics-specific processing Joachim Blatter, chief financial officer of Basilea, has left the Swiss biotech a virtual event platform. Presenta- 22 http://angewandte.org/symposium technologies have found their way into current component applications. group just two months after the departure of the firm’s founder and CEO 22 www.vdi-wissensforum.de/en Anthony Man in December. Blatter, a German citizen who had been in the role for little more than a year, will pursue other opportunities, the firm Bio-Glasses LogiChem Europe 2013, said as it posted a smaller than-expected loss for 2012. The departure is 16 – 18 April 2013, Antwerp, Belgium the latest in a string of shake-ups at the Basel-based firm. Ronald Scott, The first book is dedicated to glasses tistry, bone regeneration and tissue who was previously chief operating officer and before was CFO for many and their variants that can be used as engineering, and cancer treatment. LogiChem Europe is an annual strategic-level chemical supply chain years, took over the helm at the start of this year. biomaterials to repair diseased and Its solid guidance describes the steps event. The overriding theme of the12th LogiChem conference 2013 will damaged tissues. It covers all types of needed to take a new material from be “Developing a commercially-driven supply chain to deliver a top line glasses: traditional glasses, bioactive concept to FDA approval. contribution to the business”. The program will deliver top-line strategies Jarrett Palmer has been appointed as Operations Director of the formu- glasses, sol-gel glasses, phosphate from leading manufacturers including BASF, Dow, LyondellBasell, Syn- lated products business unit at Aesica. Based at Aesica’s headquarters glasses, glass-ceramics, composites 22 Bio-Glasses genta, DuPont, and Braskem. Key topics for discussion include deploying in Newcastle (UK), Palmer will report to Chris Gowland, managing di- and hybrids. With discussion on how Julian Jones, Alexis Clare accurate segmentation of customers and services, moving the supply rector of formulated products. Before joining Aesica, an international they are made, their properties, and John Wiley & Sons chain from being a cost center to a profit enabler, achieving process contract manufacturing organization (CMO), Palmer has accumulated the reasons for their use, the authors Price: € 97,90 excellence, managing complexity, analyzing emerging markets as well over 15 years’ experience in senior leadership positions and has man- also cover their applications in den- ISBN13: 978-0-470-71161-3 as overcoming market volatility and capitalizing on growth within seeds. aged facilities for global CMOs including Catalent Pharma Solutions and 22 www.logichemeurope.com Piramal Healthcare. Ullmann’s Encyclopedia of 21st European Biomass Conference & Exhibition 2013, 3–6 June 2013, Copenhagen, Denmark Dr. Deepak Tiwari has been appointed to the position of Director, Formulation Industrial Chemistry and Process Development at Particle Sciences. Dr. Tiwari, who holds a Held in different cities annually, the European Biomass Conference and PhD in Pharmaceutical Sciences from St. John’s University, joins Particle The encyclopedia contains almost Exhibition (European BC&E) has been running for over 30 years. It suc- Sciences following more than 18 years’ experience in pharmaceutical 1,100 major articles – Industrial cessfully combines a renowned international Scientific Conference with development roles. Most recently, he served as Director, Pharmaceuti- Chemistry from A to Z. Subject ar- an Industry Exhibition and attracts participants from a wide ranging cal Development at Agennix. Prior to that, Tiwari held senior positions eas include agrochemicals, analyti- background including researchers, engineers, technologists, standards at Baxter and Bayer. His areas of expertise include formulation devel- cal techniques, biochemistry and organizations, and financing institutions. This global exchange platform opment, clinical trial materials manufacturing, and commercial scale biotechnology, chemical reactions, of current knowledge in turn attracts industrial exhibitors, making the manufacturing of drug products. dyes and pigments, energy, environ- conference a significant tool for technology transfer and innovation. The mental protection, food chemistry, Conference is designed to provide a platform for knowledge exchange on inorganic and organic chemicals, the latest scientific and industrial results, developments in policies and Dr. Thomas Monath and Dr. Farshad Guirakhoo have joined the management materials, metals and alloys, phar- deployment of this global energy technology. team of Hookipa Biotech, a vaccine biotech start-up, as Chief Medical maceuticals, polymers and plastics, 22 www.eubce.com Officer and Chief Scientific Officer, respectively. Monath has spearheaded process engineering, unit opera- the development of several market approved vaccines through his past tions, and renewable resources. ChemOutsourcing 2013, work at CDC, Acambis and other companies. Guirakhoo is an accom- For this revised electronic edi- als, Metallic Foams, Micro Process September 16–18, 2013, Long Branch, NJ, USA plished virologist and has spent more than two decades in both biotech tion of the encyclopedia all revisions Technology, Mutagenic Agents, and large pharma companies. Prior to joining Hookipa, Dr. Guirakhoo and improvements of the 7th printed Photochemistry, Plant and Process ChemOutsourcing is the largest annual USA-based API show attracting held the position of Senior Director of External Research and Develop- edition (released in August 2011), Safety, Poly(Vinylidene Chloride), 100+ exhibitors and more than 700 chemists from the pharmaceutical, ment at Sanofi Pasteur. plus a number of new and updated Polyoxymethylenes, Process Sys- biotech, and chemical industries. The conference focuses on API devel- articles not found in the print edi- tems Engineering, Radiation Chem- opment spanning early drug discovery through chemical development tion, have been included. Users will istry, Surgical Materials, Thin Layer and commercial supply. Attendees are executive scientists from phar- Benoît Arnould-Jarriault has been awarded the Arkema/INP prize for his find new information on, among oth- Chromatography, and Zeolites. maceutical companies responsible for sourcing starting materials, in- final project study on the development of a new production process more ers: Antipsychotics, Antiulcer Drugs, termediates, and active ingredients, and experienced in working with environmental friendly, of natural fibers for non-paper applications such Bioseparation, Catalytic Fixed-Bed 22 Ullmann’s Encyclopedia of Industrial Chemistry Contract Research and Contract Manufacturing Organizations. In 2013, as bio-plastics. The award was presented at the 2012 graduation cer- Reactors, Chiral Compounds, Chlo- Wiley-VCH new, business-critical topics for panels and talks will be added to the emony for engineers at the International School of Paper, Print Media roacetic Acid, Coal Liquefaction, Price: € 2.250,-- conference agenda that will again feature high profile keynote speakers. and Biomaterials (INP-Pagora) in Grenoble, France. Glass Fibers, Luminescent Materi- ISBN 13: 978-3-527-33311-0 22 www.chemoutsourcing.com

Prof. Chris Hardacre, head of chemistry and chemical engineering at Queen’s University Belfast, UK has been awarded the inaugural IChemE Andrew Medal in recognition of his contribution to the field of heterogeneous catalysis. Hardacre will be presented with the prize, introduced in memory of the late Prof. Syd Andrew, a distinguished professor in the field, at the Institution’s first Chemical Engineering and Catalysis conference in London in June. Hardacre’s research is recognized as world-leading and brings together chemical engineers and chemists.

The Future of the Chemical Industry by 2050

Discussing the technological suprem- of the selected megatrends on the acy of the chemical industry and industry, while Chapter 5 proposes how it will adopt a leading position how it could look by 2050. Several to solve some of the largest global features of the chemical industry challenges humans have even seen, are presented and discussed, includ- this book details how the industry ing the industrial relevance from an will address climate change, aging economical, technological and prof- populations, resource scarcity, glo- itability point of view. This chapter bality, networks speed, pandemics, also reviews the impact of climate and massive growth and demand. change on the chemical industry Following a detailed introduction and, more specifically, the potential to some of the megatrends shaping costs in reducing C02 emissions. A our world over the forthcoming dec- final, concluding chapter summariz- ades, the book goes on to provide es the forthcoming megatrends and several scenarios of how the world potential challenges, opportunities could look by 2050, including “busi- and the outlook for the industry as ness as usual” and a “sustainable” a whole. one. Chapter 3 gives a comprehensive overview of the current status, while providing a short historical 22 The Future of the Chemical Industry by 2050 review of the chemical industry, its Rafael Cayuela Valencia origins, achievements and funda- Wiley-VCH mentals. The following chapter re- Price: € 59,-- views the potential impact of each ISBN 13: 978-3-527-33257-1

chemanager-online.com/en Page 16 At A Glance CHEManager Europe 3/2013

Biopharmaceutical Manufacturing Quality Information Required for REACh Compliance

Biopharmaceutical Manufacturing, Percentage of Fig. 1 Environment Conducive to Growth Pursuant to Article 54 of the compliance checks during Biopharmaceuticals in the Global Pharmaceutical Market REACh Regulation, the Eu- 2012. However, ECHA did 2001–2011 A new report on Biopharmaceutical Manufacturing ropean Chemicals Agency not have to request regis- has been released by GBI Research. It focuses on

2,000 18 et (ECHA), based in Helsinki, trants to provide further in- Global pharmaceutical market % of biopharmaceutical in global pharmaceutical market India, China and South Korea while also providing 1,800 16 Finland publishes a report formation and were able to al mark data for the global market. According to the report, © Schlierner - Fotolia.com 1,600 15.6 on evaluation by the end close the case in only 33% of 14.4 15 14 regulatory framework, infrastructure support and 13.8 of February each year. The these cases. et ($bn) 1,400 13.1 12 discovery funding create an environment conduci- Evaluation Report 2012 “I need to remind reg- 1,200 12 al mark ve to growth. 10.8 10 shows that a large part of istrants that registration 1,000 9.9 The report provides an analysis of biopharmaceuti- 9.1 889 the examined registration under REACh is not just 8.7 812 855 8 800 770 cals approved in 2010 and 2011, operating dyna- 7.8 684 727 et as (%) of global pharmaceutic dossiers still raise quality a paper exercise and that 599 641 6 mics in the biopharmaceutical industry, the current 600 523 560 and subsequently compli- high quality data is not an Global pharmaceutic 489 al mark scenario in biopharmaceutical manufacturing, key ance concerns. ECHA strong- end in itself. The purpose of 400 4 stakeholders, the current market size (2011) of bio- ly encourages registrants, in particu- the first REACh registration dead- describing a substance clearly and 200 2 pharmaceuticals, and forecasts to 2016 for India, lar if they are preparing registration line in 2010. The Agency adopted assessing potential hazards and ex-

0 0 Biopharmaceutic 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 China, South Korea and the global market. The re- dossiers for the second REACh reg- 171 decisions on testing proposals, posure with scientific rigour is to Source: GBI Research; Gao, 2011 © CHEManager Europe port also presents trends witnessed in biophar- istration deadline, to read the rec- and sent 364 draft decisions to reg- ensure that the risks are properly maceutical manufacturing, preferred partnership ommendations of the report and act istrants. identified and controlled in order to pricing models, and contract manufacturing part- accordingly. The report lists the most In 2012, ECHA also launched a protect workers and the public at common shortcomings found in the new strategy for selecting dossiers large,” says ECHA’s Executive Direc- Biopharmaceutical Manufacturing, Global, Production Capacity by Company Fig. 2 nerships. dossiers and gives specific recom- for compliance check that may con- tor Geert Dancet. (%), 2011 Contract Manufacturing mendations for registrants. tain typical shortcomings. The new, Read a comprehensive status ar- Last year was a crucial year for additional approach increases the ticle about REACh including com- Leading Contract Manufacturing Organizations evaluating REACh registration dos- chances of finding and addressing ments on the recently published Others Roche (CMOs) offer manufacturing functions both siers. During 2012, ECHA examined information gaps in all registration REACh Review by the European 21.3% 25.0% upstream and downstream equally. In addition to all the testing proposals received for dossiers. The Agency concluded 354 Comission on page 4 of this issue. ◾ manufacturing in biopharmaceutical production,

Novartis they also offer clinical trials, logistics, packaging, and 5.1% even marketing. Johnson & Johnson According to industry experts, almost 60% of the Eli Lilly 8.8% 5.2% CMO market is dominated by manufacturing func- Sano tions, out of which more than 50% is dominated by 5.5% Boehringer Ingelheim P zer 8.5% the downstream process. Many pharmaceutical 5.9% Lonza Amgen 6.5% 8.2% companies are expected to outsource most parts of their research & development and biopharmaceu-

Source: GBI Research; Levine, 2011 © CHEManager Europe tical manufacturing to emerging economies such as India and China.

Factors Facilitating Outsourcing Biopharmaceutical Manufactuing in India, China and South Korea, Fig. 3 Geographical Distribution of Cell Culture Capacity Cost rationalization and skilled labor are the main (000’ liters), 2011–2017 factors facilitating the outsourcing of processes to 4,000 these countries. Contract manufacturing is experien- 3,500 cing an upsurge in these countries; outsourcing activities for biopharmaceutical manufacturing include 3,000 secondary manufacturing such as fill and finish ope- 2,500 rations, mammalian cell culture, Active Pharmaceu- tical Ingredient (API) biologics, microbial fermenta- 2,000 tion and plant cells. 1,500

1,000 Biomanufacturing Capacities Expanding Compass Stadium – For the new 22,000-seat Compass Stadium in Houston, Texas, the architectural firm Populus designed an exterior surface composed of geometrically expanded metal mesh and orange polycarbonate sheet 500 Outsourcing analyses by pharmaceutical companies cladding. The state-of-the-art, open-air arena and new home of the Houston Dynamo sports a brilliant display of reveal that product characterization testing such as 0 the Major League Soccer team’s distinctive orange brand featured on enclosed entrance façades with a vibrant bio-manufacturing, toxicity, bioassays and analytical North America Europe Japan S. Korea India China shade of LEXAN Thermoclick sheet. The material’s nine-wall configuration delivers a high level of thermal in- Source: GBI Research; Levine, 2012 © CHEManager Europe testing form the bulk of outsourcing to CMOs. With sulation for energy savings. In addition, the lightweight and versatile PC sheets from SABIC’s Innovative Plastics the increase in outsourcing, biomanufacturing ca- business help architects and designers achieve ever-higher levels of safety, durability and design excellence. pacities in emerging economies have been expanding. Biopharmaceutical Manufacturing, Product Demand Distribution in Fig. 4 Monoclonal Antibodies (%), Global, 2011 Competitive Landscape Index The report also provides a comparative analysis of Remicade 3M 14 DSM 9 Piramal Healthcare 15 Others 17.5% biopharmaceutical manufacturing in India, China 23.7% and South Korea, and the competitive landscape for A.T. Kearney 5 DuPont 2, 10 PPG Europe 10 the countries covered. Although the U.S. continues to be a leader in biopharmaceutical production, Abbott 8 Dyneon 14 Procter & Gamble 8 Avastin 16.8% with approximately 45% of the total production Adithy Ranade 10 Equity Gate 6 Purac 10 share, China’s and India’s shares have been conti- Herceptin nuously increasing, with 8% and 7%, respectively. Aesica 15 Emirates Sky Cargo 3 Quartz Business Media 11 12.2% Sponsors are building strategic relationships with Air Liquide 13 European Chemicals Agency (ECHA) 4 Queens University Belfast 15 the contract players and progressively working to- Enbrel Rituxan Reverdia 9 13.4% 16.4% wards homogenizing and simplifying manufactu- Air Products 10 European Council of Vinyl Manufacturers (ECVM) 14 ring processes in order to ensure normalized pro- Akzo Nobel 2 Richter 1 ducts. European Environmental Bureau (EEB) 4 Source: GBI Research; Levine, 2012 © CHEManager Europe Altana 10 Rockwood 1, 7 Evonik 1 Anergis 15 Roquette 5, 9 GBI Research 16 Arkema 10, 15 RWE Power 13 German Chemical Industry Association (VCI) 4 Imprint RWTH Aachen University 13 Ashland 10 Ronny Schumann arbitrarily use the unmodified Publisher: Bank Account German Ministry of Economics and Technology 13 Wiley-VCH Verlag Tel.: +49 6201 606 754 Commerzbank AG Darmstadt, work/editorial contribution for all Rxmidas Pharmaceuticals 1 purposes for itself and for busi- BASF 2, 7, 11, 13 GmbH & Co. KGaA [email protected] Germany Account No. 01715501/00, nesses that have an interest in the German Ministry of Education and Research 13 GIT VERLAG SABIC 12, 16 Roland Thomé Routing No. 50880050 publishing company as defined Basilea 15 A Company of by company law as well as to John Wiley & Sons, Inc. 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