Chemicals 9 – 13 Small Is Beautiful – and Vulnerable

7-87-8//20082008 July/AugustJuly/August

Pharma Merger Catalysis Will Daiichi-Sankyo The newspA per 90 % of today’s chemical buy Ranbaxi? processes are based on Pfizer with Competing Bid? f O r T he C hemiCAl A n d catalytic chemical reactions Page 6 life sC ienC es mA rkeT s Page 10

Connect One, Connect CHEManager Europe: The B2B our clients. And when of a transaction – for companies solve those prob- of having been founded by chem- All – Back in August 1999, online market went through a those solutions example, the order lems pre-emptively, before they ical companies? dramatic consolidation period in are implement- and the invoice, become a problem in the supply when much of the world was the years following the creation ed at scale, it or the logistics chain. M. McGuigan: It comes from a worried about the impending of Elemica. Many B2B portals ensures our booking and number of things. We’re not newsflow came on the scene, but Elemica success. It’s the logistics Does Elemica face competition? about technology – we’re about fictitious Y2K virus, 22 chemical is one of the only ones that sur- just like with documents delivering efficiency in the sup- Boehringer Ingelheim said it has companies were busy thinking vived. any other – and help M. McGuigan: There are cer- ply chain. All of the elements agreed to take over U.S. company business: If our clients tainly other companies that do needed to do so were put into Actimis Pharmaceuticals Inc. for up to past the year 2000. Frustrated M. McGuigan: I think somebody your clients then deliver electronic business integration, Elemica. We also have the proc- $515 million, to bolster its research with the extra costs and errors counted at that time 200 differ- are success- a more reli- both within the chemical indus- ess knowledge, understand sup- into respiratory diseases, one of the ent companies in the chemical ful, then so able transac- try and within other industries. ply chain operations, and what drug maker’s main areas of business. caused by inefficient supply industry that were trying to do are you. tion. Through However, we consider ourselves we do is designed to drive im- The purchase will be carried out in chains, the companies created something similar, and pretty In other content vali- unique, particularly with our provement within supply chains. gradual steps and Boehringer will much all of those have failed. words: We under- dation and the “connect one, connect all” The company was founded with pay the full price and buy all of Actimis Elemica. stand the business early identifica- factor. Once you connect into the intention of driving reliabil- shares if its experimental asthma Why? context of what we tion of problems, Elemica, you can work with any ity in the supply chain and not treatment AP768 progresses from The company was one of the are moving around. we can help other company in the network. with the notion, “Hey, we’ve got the first phases of testing on humans first networks to offer total M. McGuigan: Many of the com- We can link up dif- Other companies then can move some IT technology; let’s imple- to the third and final phase, the solutions focused on improv- panies that were founded didn’t ferent parts the information around elec- ment it somewhere.” companies said in a joint statement. ing supply chain inefficiencies really have solutions or a work- tronically, but they don’t know Actimis will in the meantime, receive with a one-stop experience. ing business. They also didn’t what they are moving from Your core customer basis is the milestone payments for reaching Its global neutral information have basic products, and there a business standpoint, chemical industry. Are you ac- certain research goals, Boehringer’s network built to facilitate the was no real differentiation. which means they can’t tive in other industries as well? spokeswoman Judith von Gordon said, order processing and supply eliminate errors the way declining to provide further financial chain management of contract What did Elemica do differ- we are able to. M. McGuigan: Last year, about details. and repeat chemical transac- ently? $50 billion of business went “The main reason (for the deal) tions. Brandi Schuster spoke to Does this understanding through Elemica in one form or was to secure the rights” to AP768, Elemica CEO Mike McGuigan M. McGuigan: The solutions come from the background another. The chemical industry von Gordon said, adding that the about how the company man- that we have deliver real buys and sells with every other contract allows Boeh ringer to share aged to prosper when the com- value. The solutions we industry; we can say that every the risk in trying to bring the drug to petition failed, and his plans for developed actually trans- Mike McGuigan market with Actimis’ current owners. future growth. lated into real savings for CEO of Elemica Continues Page 4  The deal marks the first takeover of a biotechnology firm for Boehringer, which has remained family-owned since it was founded in 1885. Actimis was created from a former respiratory diseases research programme of Company investigations Bayer’s healthcare division in 2004. It was founded by Kevin Bacon, a How Staff Has to Cooperate former Bayer research executive, and financed by a group of buyout firms Bribery, Cartels, fraud or In general, employees have incriminate himself. Un- suspicious employees are not European law provides for a lead by Sanderling Ventures of Califor- Tax evasion – Whatever the to cooperate in the course of in- like the Anglo-American obliged to disclose self-incrimi- leniency application, whereby nia and Mitsui & Co. Venture Partners ternal investigations, regardless legal system, the results nating evidence within internal the first company to notify the of New York. Boeh ringer is seeking occasion, there will be more and whether they are conducted by of such a self-incriminat- investigations. authorities about a cartel can to boost research into respiratory more company raids and inter- the company’s own internal au- ing interview could be get away without a penalty, if diseases, one of its seven main areas dit department or by external utilized by government Amnesty Program they fully cooperate with the of drug development, trying to build nal investigations in corporate auditors hired by the company. authorities in a poten- authorities. In such a situa- on the success of its best-selling drug Germany. What obligations do Naturally, the questions must be tial criminal litigation In conducting internal investi- tion, it is paramount to rely on Spiriva, an inhalant that generated limited to the scope of the inves- against this employee gations, some companies tend those employees who have been €1.79 billion in sales last year. company staff have in the course tigation, which is to throw light later, although he would to offer an amnesty program closely involved in the cartel. of such investigations? on the suspicions and charges. be entitled to remain si- to employees. It works as fol- For this reason they might face DSM said it will start the sale process lent regarding these top- lows: The employee signing up employment sanctions them- of three non-core businesses in Sep- Interviews With Employees ics in court proceedings. for the program has to fully co- selves. A company applying tember as it announced the restruc- When a government authority In other words, by inter- operate and particularly report for leniency, however, is well- turing of its activities in Geleen, the conducts investigations against In addition to analyzing paper viewing the external au- any own wrongdoings and those advised to amicably agree with Netherlands. The reorganization will the company, the company’s documents and electronic files, ditors of the internal in- of other colleagues. In return, the employee to give full disclo- see the site services and manufac- employees have to comply with it is useful to conduct interviews vestigation a prosecutor the company waives the right to sure of the facts relevant for the turing services grouped into a new what is asked by the authori- with at least parts of the com- could obtain self-incrim- dismiss the employee for these cartel. Such an agreement will company, which will become fully ties, or by the company. Such pany’s employees. Interviewing inating evidence about charges or to claim any dam- usually be a cancellation agree- operational in January. No job cuts are obligation results from the the “bland” employees without an employee by hearing ages. Such amnesty programs ment with an extended termina- anticipated, DSM said. The reorgani- inherent duties of an employ- personal involvement in the the external auditor of an have proven to be effective in tion date. ment. A different and more in- charges does not give rise es- internal investigation as bringing more employees to dis- zation is part of DSM’s plans to sell its Dr. Mark Zimmer teresting question is, whether sential legal problems: Such a witness, although this close useful information. Also, it Data Protection Issues fertiliser, melamine and elastomers German attorney and Certified Expert in Labor Law business groups as it shifts towards and to what extent employees employees have to fully coop- information would never will avoid litigation with the re- becoming a life and materials sci- are obliged to cooperate within erate and answer questions employees are also obliged vis- have been obtained if the pros- spective employees, which can In the course of an internal ences company as part of its Vision the course of internal investiga- regarding their jobs and their à-vis the company to answer ecutor had asked the suspect di- help to create a more peaceful investigation, the auditors 2010 strategy. tions. Unlike other countries, perception at the work place any questions regarding their rectly. Legal scholars and courts and thereby productive atmos- will usually screen all paper such internal investigations (not in the private sphere). job conduct. However, it is yet will still have to find a solution phere. documents and electronic files have not been common in Ger- A little more complicated are unclear, whether the suspi- to this open problem. As a cau- A similar situation is some- that might be relevant. In this many so far, which accounts for interviews with the suspects. cious employee has to disclose tious assumption, however, it times encountered in cartel a lack of court precedents. Generally speaking, suspicious information, by which he could should be fair to assume that proceedings. Both German and Continues Page 5 

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CONTENT

Front Page Chemicals 9 – 13 Small is Beautiful – And Vulnerable ...... 13

Can Europe’s Smaller Firms Survive the Impact of Reach? Making Business Better ...... 1, 4 Elemica Helps Companies Improve Supply Chains Integrated Catalyst Technologies ...... 9 Melvyn Whyte, Refac Interview with Mike McGuigan, CEO Elemica A Case Study of the Enantioselective Synthesis of an

Integrin Antagonist Reach Operations Begin ...... 13 Company Investigations...... 1, 5

How Staff has to Cooperate Gabriela A. Grasa, Johnson Matthey Catalysis and Chiral Technologies And Europe is Asking if We are Ready Dr. Mark Zimmer, Gilbson, Dunn & Crutcher Petteri Mäkelä, ECHA

Principles of Heterogeneous Catalysis ...... 10 Markets & Companies 1 – 7 Part I: Steps in a Heterogeneous Catalytic Reaction, Managing the Reach Risks ...... 14

Sales & Profits ...... 2 Definitions of Catalysis and Turnover Proper Communication is the Key to Success

Eeva Punta, Joonas Alaranta Collaboration ...... 3 Competence and Creativity ...... 11

Portfolio ...... 6 Evonik is Fully Integrated in Catalysis

Dr Jürgen Krauter Director Marketing & Business Development BusinessPartners 10 Clarifying the EU Regulations ...... 7 Finding the Precise Regulatory Pathway for Biosimilars Business Line Catalysts Marc Martens

Chemical Reaction ...... 7 Focus on Specialty Chemicals ...... 11 People · Events · Awards 15 Greetings from Darmstadt Solutions & Innovations Ana Wood Prof. Dr. Rudolf Jerrentrup

Production 8 At A Glance 16

Chemical Distribution in the CEE Countries ...... 12 Manufacturing Execution Systems ...... 8

Yesterday, Today and Tomorrow Challenges for Medium-Sized Companies in Central Index ...... 16 Dr. Timo Slawinski, Bayer Technology Services and Eastern Europe

Under Construction ...... 8 Dr. Bernd Soyke, Penta Chemie Imprint ...... 16

CVC Acquires 25.01% in Evonik Supply Activities Acquired Funds advised by CVC Capital Foundation. The transaction petual burdens of the German Brenntag came together with ous ammonia and weak nitric Partners (CVC) have agreed is subject to antitrust approv- coal-mining industry. Both Yara International, Oslo to ac- acid supply activities conduct- to acquire a 25.01 % stake in al. IPO planned through the partners plan to launch an quire the chemical supply ac- ed from the Köping produc- Evonik from the RAG Foun- sale of a minority stake in the IPO in the medium term. The tivities at the sites in Köping, tion site and the congeneric dation for a purchase price of business, the RAG Foundation Foundation has been Evonik’s Sweden and Tertre, Belgium, activities plus concentrated approximately €2.4 billion, has taken the first step in its sole shareholder to date. as part of the commitments nitric acid supply activities announced Wilhelm Bonse- mandate to establish a capi- 2 www.cvc.com agreed with the EU for ap- from the Kemira Grow How Geuking, CEO of the RAG tal reserve to finance the per- www.evonik.com proval of Yara’s acquisition of production site at Tertre. Finland’s Kemira Grow How. The acquisition includes am- 2 www.brenntag.com KMG Chemicals 3Q Profit Falls KMG Chemicals said third-quarter earnings monia nitrate solution, aque- www.yara.com from continuing operations fell to $1.8 million, or 16 cents a share, from Green Light for Arkema Genesis Program $3.9 million, or 37 cents a share, in the year-ago period. The mean esti- The European Com- We could witness mate of analysts polled by Thomson Reuters was for third-quarter profit mission has given its the first commer- of 22 cents a share. Revenue for the Houston-based specialty chemicals Novartis Successfully Issues Bonds green light for the cial applications maker jumped to $50.3 million, meeting analysts’ expectations. In the funding by OSEO, by 2009/2010,” an- same period a year earlier, the company posted revenue of $26.7 million. amounting to €46 nounced Christian For the fourth quarter, KMG Chemicals forecast earnings per share to be Mio. out of a total Collette, Arkema “significantly better” than earnings per share in the same period last year. cost of €107 Mio., Research & Devel- The company expects a 10 % to 20 % decline in year-over-year earnings of the Genesis pro- opment Vice Presi- for fiscal 2008, and expects “significantly better” results in fiscal 2009, gram, coordinated dent. including net sales of about $200 million. by Arkema, which is In accordance 2 www.kmgb.com opening the way for with Arkema’s sus- the development in tainable develop- Cognis ‘B’ Rating Affirmed; Outlook Stable Standard & Poor’s affirmed its ‘B’ Europe of an innova- ment policy, the long-term corporate credit rating on Germany-based specialty chemicals Novartis headquarters in Basel, Switzerland tive and competitive Genesis program and intermediate manufacturer Cognis. “The ratings reflect the group’s sector in nanostruc- favors the operation Novartis announced it has mark domestic bond with a high financial debt, following a leveraged buyout in 2001 and subsequent tured materials. of clean processes, successfully issued two Swiss coupon of 3.625 %, was priced debt-financed dividend payouts to shareholders,” said Standard & Poor’s The Genesis pro- the use of renew- franc benchmark bonds total- at 100.35 %. Novartis said the credit analyst Tobias Mock. Cognis’ cash flow protection ratios remain gram pools around able raw materials, ing CHF1.5 billion in the Swiss offering generated very strong weak, with funds from operations to debt of about 5 % at year-end 2007 Arkema, major in- and the inclusion of capital market, the first time demand and ranks as the larg- and debt to Ebitda of 8.1x. The group is highly leveraged, with a debt-to- dustrial groups, recycling considera- ever the pharma group has is- est-ever corporate offering in capital ratio of more than 100 %. Cognis successfully refinanced its debt SMEs, and several tions for end-of-life sued a bond in its home mar- the Swiss franc market. The in May 2007 and has no contractual repayment obligations until 2013, university labo- materials. It also ket’s currency. The first bond, bonds were placed with a di- which will benefit its liquidity. ratories within a devotes a key part to a four-year CHF700 million versified range of institutional 2 www.standardandpoors.com partnership bring- the toxicological and benchmark bond in the inter- and retail investors, and they ing together directly the de- the industrial development ecotoxicological properties of national market segment with will be listed individually on Johnson Matthey Optimistic as Annual Profits Rise 16 % Johnson Matthey, sign of materials and their of nanostructured materials nanomaterials. a coupon of 3.5 %, was priced the SWX Swiss exchange. a UK specialty chemicals and precious metals group, said its prospects applications in a number of in direct cooperation with at 100.32 %. The second, a sev- remained “very encouraging” despite the slowdown in the U.S. market markets earmarked for their the relevant user sectors. 2 www.arkema.com en-year CHF800 million bench- 2 www.novartis.com after it reported a 16 % growth in annual profits, buoyed by strong plati- technological innovation num prices and increased demand for its car emission control devices. potential: automotive, ca- “We expect that the group will perform strongly again in 2008/09 de- 6)%',WXEVXW ble, structural composites, spite concerns about the state of the world economy and the slowdown in .YRI 2383<«WXITWXS6)%',GSQTPMERGI energy, environment, as the U.S. We are increasing our investment in both R&D and new produc- 4VIVIKMWXVEXMSRHIEHPMRI well as information and tion facilities to meet the growth in demand for new products which is (IGIQFIV communication technolo- being driven by global concerns about the environment and high energy gies. [[[RSXS\RP prices,” said Neil Carson, chief executive of Johnson Matthey. “The Genesis program 0SGEXIHMR)YVSTI.ETER97%ERHQIQFIV 2 www.matthey.com SJXLI;-06IWIEVGL,SPHMRK'SQTER]-RG will allow us to speed up

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Kinaxo Enters Agreement with Takeda Germany’s Kinaxo Biotechnologies has entered an agreement with Takeda San Diego, a wholly owned subsidiary of Takeda Pharmaceutical in Japan. In consequence, Kinaxo will make its Kina Tor technology available to Takeda researchers involved in drug discovery, preclinical research and clinical development. Kinaxo’s Cellular Target Profiling utilizes proprietary chemical proteomics technologies combined with state-of-the-art mass spectrometry to identify and characterize a drug candidate’s native molecular targets in cell lines and tissue samples. This service enables pharmaceutical and biotechnology companies to make more informed decisions on which drug candidates to progress into advanced pre-clinical or clinical development. 2 www.kinaxo.com 2 www.takedasd.com

UCB, Otsuka to Collaborate in Japan Belgian pharmaceutical company UCB said that it has signed a collaboration agreement with healthcare company Otsuka Pharmaceutical to market its epilepsy treatment Keppra as well as its Crohn’s disease drug Cimzia in Japan. Under the agreement, UCB receives up to €113 million up front and milestone payments as well as funding for the clinical development of Keppra and Cimzia. The companies plan to submit filing dossiers for Keppra in epilepsy and Cimzia in Crohn’s disease to the Japanese Pharmaceuticals and Medical Devices Agency by early 2009. 2 www.ucb.com BASF Presents Sustainable Solutions in China BASF is an official partner of the “Germany and China – Moving Ahead Together” initiative in Chongqing, EDF, Dow Chemical Sign Agreement Dow Chemical and EDF Trading, a unit southwest China. A BASF Pavilion focusing on sustainable urbanization was open to the public at the Germany esplanade in the city. In addition, BASF of French company EDF said they signed a four-year agreement allowing is sponsoring a forum at Chongqing University at which stakeholders are invited to share their ideas about a sustainable future. Chongqing is the second each access to the other’s liquefied natural gas regasification terminals. station of the “Germany and China” initiative, which started in Nanjing in October last year. The Germany esplanade is touring major cities in China to In a joint statement, the two groups said energy trader EDF Trading will promote technological, scientific and cultural aspects of Germany and to strengthen the partnership between the two countries. www.basf.com/germanweeks grant Dow Chemical access to its European terminals and will in turn gain access to Dow’s terminal at Freeport, Texas. The two groups gave no precise financial details, but said the accord will permit them to sell gas at the highest European and U.S. prices. 2 www.dow.com

Sun Chemical: New Partners Sun Chemical has officially launched three partnerships for its new consulting division. Environ, Radius Solutions and SBTI have all joined forces with the ink, pigment and services supplier in an initiative that shares expertise to benefit customers. Felipe Mellado, Sun Chemical’s vice-president group managing director said: “Sun Chemical is dedicated to help printers and converters moving towards operational excellence. We are delighted to have announced at drupa these important partnerships, which is all part of our continuous commitment to working for the customer.” 2 www.sunchemical.com 2 www.environcorp.com 2 www.radiussolutions.com Together we bring 2 www.sbtionline.com

PwC and Royal Haskoning to Join Forces Pricewaterhousecoopers (PwC) and Catalysts Ideas to Life Royal Haskoning have signed a joint venture agreement to combine their Accelerating Your Chemistry® knowledge in the field of Reach. The collaboration combines Royal Haskon- ing’s technical knowledge of chemicals with PwC’s financial and administrative knowledge about Reach and the management of risks. PwC and Royal Haskoning have set up a shared service desk. ‘For example, companies will need an independent party who can perform the role of third party representative for their Reach registration or a party that can act for a consortium of companies working together on the registration of a particular chemical,’ said Arno Pouw, member of PwC’s board of management. 2 www.pwc.com 2 www.royalhaskoning.com

CDT, Sumitomo Chemical, Novaled to Co-develop CDT and Sumitomo Chemi- cals, both suppliers of polymer organic light emitting diode (P-OLED) devices, and Novaled, a provider of high efficiency PIN OLED structures and dopant materials, have signed to collaborate under a joint development agreement to investigate the feasibility and benefits of new materials and Novaled PIN OLED structures in P-OLED devices. CDT, Sumitomo and Novaled plan to co-develop hybrid OLED devices combining both new polymer emitting layers and doped electron transport layers. It is expected that these hybrid devices will offer further improvements in power efficiency without additional manufacturing complexity. Each company will remain responsible to market its own materials resulting from this co-development. 2 www.novaled.com 2 www.sumitomo-chem.co.jp

Shell and Arrow Plan Gas Alliance Shell and Arrow Energy have signed a preliminary agreement to jointly develop projects to extract clean-burning natural gas from coal deposits in Australia, China, Indonesia, Vietnam and Product Business Project Business India. The memorandum of understanding calls for Shell to acquire a 30 % interest in Arrow’s CSG acreage in Queensland, Australia, as well as a 10 % stake in Arrow International – a wholly owned subsidiary of Arrow, which „Together we bring catalysts ideas to life, creating Products Projects holds Arrow’s international interests in CSG opportunities. The agreement value by our passion and focus.“ This is our mission • Activated Base Metal Catalysts • Toll Manufacturing also gives Shell a five-year option to acquire up to 50 % of individual Arrow • Continuous Process Catalysts • Custom Manufacturing and our promise. The ideas may come from our broad ® International projects, which includes activities in China. Under the deal • Deloxan Metal Scavengers • Custom Design product portfolio, or we develop them jointly with • Homogeneous Catalysts • Joint Development Shell would also acquire the right to negotiate an agreement to purchase our customers in tailor-made projects in such divers • Olefi n Polymerisation Catalysts any liquefied natural gas that may potentially be produced from the CSG • Precious Metal Powder Catalysts Services operations. markets as pharmaceuticals, fi ne chemicals, polymers, • High Throughput Preparation Services and Screening Services 2 intermediates, and petrochemicals. www.shell.com • Precious and Base Metal Management • ReacToCat® 2 www.arrow-energy.com • Refi ning Services Management Reaction Engineering Services

Skyepharma: Royalties on Drug Approval British drug delivery specialist Sky- epharma has announced that it is in line for low-to mid-single digit royalties after development partner Glaxosmithkline (GSK) announced that US Evonik Industries AG Catalysts Business Line authorities have given approval for its Requip XL Parkinson’s Disease drug. [email protected] www.degussa-catalysts.com www.evonik.com The drug uses Skyepharma’s patented Geomatrix technology which allows for continuous delivery of ropinirole, the active ingredient of Requip KL, over 24 hours to provide smooth blood levels. The drug is expected to hit the US market in mid July. The Requip XL approval is a major milestone for Skyepharma, providing it with a much-needed further revenue stream. The company is waiting for all of the phase III results for its asthma treatment Flutiform before it starts talks with holders of put options for £69 million convertible bonds which are due at the earliest in May 2009, and further put options for £20 million due in June 2010 at the earliest. Requip XL is currently approved in 23 countries in Europe for the treatment of Parkinson’s disease. 2 www.skyepharma.com

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Glaxosmithkline in superbug Deal Ciech to triple net profit by 2011 Bayer: Drugs from tobacco plants Making Business Better through clinical proof of con- Poland’s largest chemical com- the €75 million purchase of a Bayer plans to test drugs made cept, at which point GSK will pany Ciech may sell 600 mil- German soda maker Sodawerk from tobacco plants that have have an option to exclusively lion zlotys to 900 million zlotys Stassfurt. “We can see that after been modified to meet patients’ Elemica Helps Companies Improve Supply Chains license each product candidate worth of new shares to finance the German project, (the share individual needs, on humans for for further development and growth plans, the Parkiet news- issue) will be the only way to fi- the first time next year. The first commercialisation on a world- paper reported, citing CEO Mi- nance our fast growth scenar- use of the procedure will be for  Continued page 1 example, we acquired a com- Let’s talk numbers. Right now required very detailed imple- two or three companies, or up this year. Are there any visible able for their company. Elemica wide basis. Mpex will receive roslaw Kochalski. Ciech has said io,” Kochalski told Parkiet in an a treatment of non-Hodgkin’s pany in the logistics market a you’ve got $50 billion of busi- mentation one by one with each to 10 for a large company, but results yet? then supports BASF’s custom- an $8.5 million upfront pay- it could spend up to 4.8 billion interview. “I’m not talking about lymphoma based on antibodies industry is connected in some few years ago. We incorporated ness going through the compa- partner. That means a selling then it gets simply too compli- ers’ conversion from paper to ment and a $6.5 million equity zlotys on a series of investments the issue worth 200 million that direct the body’s immune form to Elemica. So while our their functionality into what ny. Where do you see that figure company and a buying company cated. Elemica allows compa- M. McGuigan: BASF have told us electronic. BASF currently have Glaxosmithkline (GSK) has financing commitment from and acquisitions at home and zlotys to 300 million zlotys but system at cancer cells, Bayer origin is the chemical industry, we do, both for logistics and going over the next 4 – 5 years? needed to work out together in nies to integrate all across the they found moving from paper hundreds of customers receiving bought the exclusive license GSK. Contingent on achiev- abroad as it seeks to triple its more like 600 million zlotys to said. The German drugmaker pretty much every industry is beyond. detail how they were going to do supply chain. Going it alone is to Elemica electronic invoic- electronic invoices via Elemica to any products for gram- ing certain milestones, Mpex net profit to as much as 500 mil- 900 million zlotys,” he added. is using bacteria to transport represented on our network – M. McGuigan: Globally, chemicals business electronically, which definitely not the right way to ing is easy. We manage the and have plenty more projects negative bacterial diseases is eligible to receive develop- lion zlotys by 2011. Its only ma- the manipulated genetic code agricultural, automotive, retail, What do the next eight years is a $2.5 trillion industry. Given was slow and expensive. go about it anymore. programme for them. Each of in the pipeline. produced by Mpex Pharma- ment, regulatory and com- jor acquisition so far has been 2 www.ciech.pl of a virus into tobacco plants, patient’s genetic profile. Bayer operated by its subsidiary Icon coatings, general manufactur- hold for Elemica? What are your this, we are expecting dramat- The difference with Elemica BASF’s customers is asked how What are the benefits of having a ceuticals, in a deal potentially mercial milestones ranging instructing the plant cells to said it inaugurated a produc- Genetics, which it bought in ing, MRO, logistics and so on. plans for further growth? ic growth over the next three is again, connect once, connect BASF, started using electronic they want to receive and to fully integrated and automated worth hundreds of millions of up to $200 to $250 million for produce antibodies or other tion facility in the eastern Ger- 2006. years, in terms of both the pro- to all. When clients are con- billing in December, and the archive their electronic invoic- supply chain? pounds. Mpex specialises in each product candidate. Zhi proteins for specific drugs. The man city of Halle on Monday. Are there also plans to go into M. McGuigan: We see enor- portion of business going elec- nected to Elemica, they can plan was to go electronic with es. They have a range of options Luminex to offer shares producing efflux pump inhibi- Hong, a senior vice-president genetic code of the virus will The plant, in which Bayer has other industries altogether? mous opportunities for con- tronically through our network electronically invoice every several thousand customers and can pick the one most suit- M. McGuigan: It boosts the tors (EPI), which are a new at GSK, said: “Antibiotic dis- Luminex said it is launching an a biotechnology company, plans be modified depending on each invested €10 million, will be 2 www.bayer.com tinuous growth. When a new and in terms of what kinds of other company on the net- reliability of supply chain op- technology aimed at tackling covery has faced tremendous underwritten public offering of to use the net proceeds from the M. McGuigan: Yes. The unique company joins our network, services customers use. Today, work. Before our services came erations: eliminating errors, the way bacteria fight antibi- challenges with the discovery 3.5 million shares, and expects offering for general corporate value we can deliver in the the value goes up for everyone only part of a transaction may along, the process was slow making a company much more otics. This is relevant as strains of only two new classes of anti- to grant the underwriters a 30- purposes. J.P. Morgan Securities rohm & Haas Cuts Jobs chemical industry applies in any involved because of the abil- be electronic, such as perhaps and expensive; it only made reliable to do business with. F a C ts anD n UMBers of antibiotic resistant so-called biotics over the last 3 decades. day option to purchase up to Inc. and UBS Investment Bank Rohm & Haas said it plans to take a number of initiatives in cent quarters as initiatives that manufacturing supply chain. ity to transact electronically the invoice. From there, other economic sense to work with It reduces internal costs, im- “superbugs” emerge. Under Novel discovery-enabling and an additional 525,000 shares are acting as joint book-running implement a comprehensive set other businesses and regions. In would restore profitability, ad- We do have clients outside of and integrate with everybody parts of the transaction can be a few large partners capable proves customer performance the terms of the agreement, paradigm-shifting approaches to cover any over-allotments. managers for the offering. of actions to restore profitabil- 2010, the company expects to dress the changing needs of chemicals, such as in logistics, else on the network. We are added, such as the order; the of doing things electronically. and reliability. It also makes Mpex will grant GSK rights to are needed to address the ever Austin, Texas-based Luminex, 2 www.luminexcorp.com ity, impacting about 925 posi- deliver pretax run-rate savings our customers, and contribute automotive, paper and pulp, continually adding buyers, road haulage booking; status in- Now it makes sense to do this 95 people more productive: There product candidates developed increasing medical needs due tions, primarily in North Amer- of about $110 million, with less to our growth objectives,” the petroleum and the agricultural sellers and logistics partners formation; order amendments, with every partner. is then no need to discuss why Percent of all companies still do paper invoicing under the collaboration. Mpex to life-threatening bacterial in- ica, and resulting in a second- than half of the benefit realized company said. “We are now industry. to our network, which means etc. Adding all of those different the invoice was wrong or the will be responsible for the dis- fections and drug resistance.” quarter charge of 35 cents per in 2009. Rohm & Haas also ex- convinced it is a more prudent we are growing fast in terms parts is a big area of growth for What are some common mis- delivery late. That means the roche to invest in infrastructure covery of EPI drug candidates share. As part of its plan, Rohm pects earnings per share from course of action to accelerate What kind of growth has Elemica of companies on our network. us. The penetration will prob- takes that companies make with employees have more time dis- and the development of com- Roche plans to spend are planned for the & Haas said it will cut 30% of operations to be reduced by 11 the implementation of these seen over the last eight years? Another example is in the finan- ably go up three to five times their supply chains? cussing doing better business 15 bination product candidates 2 www.gsk.com some CHF1.2 billion production facilities, installed capacity in its emul- cents per share in the second plans due to the rapid erosion cial area. With 95 % of invoices over the next couple of years. with the customer. on new infrastruc- research and devel- sions network in North Amer- half of 2008, primarily because of business conditions in the M. McGuigan: We have grown still being done by paper, it’s M. McGuigan: Many companies Percent of orders done manually contain errors To sum up: When reliability ture and building opment facilities as ica; make “significant” reduc- of accelerated depreciation and U.S., and the impressive growth organically from scratch to obvious that there is plenty of Going back to the 95 % still do- try to do too many things by improves, costs go down, work- facilities. Of the to- well as new infra- tions in overhead expenses for other costs related to the above of our business in many rapidly the $50 billion of business we room to grow. Our plan for the ing manual invoicing: Why are themselves, without having the ing capital goes down and peo- Valeant approves share Buyback tal sum, around CHF structure. its speciality materials group; actions. developing economies.” saw last year. We have also coming years is to continue to so many companies so hesitant necessary expertise. Specifical- ple become more productive: Valeant Pharmaceuticals an- increase brings the total repur- 550 million will go adjust the infrastructure for its “Many of these actions have acquired companies and busi- work with our clients to enable to do things electronically? ly, there are companies who try 15 And then you have a better nounced its board has ap- chase authorization to $300 towards the Swiss electronic materials group; and been discussed publicly in re- 2 www.rohmhaas.com nesses in the past as well, for them to convert from paper to create an integrated supply Billion Dollars is spent each year by American companies who manually business. proved the repurchase of an million. pharma group’s new both customer expansion rea- to fully integrated electronic M. McGuigan: Up to now, to chain on their own. It works for key data from forms. additional $ 100 million of the skyscraper in Basel. sons and for functionality. For invoices. do things electronically has a while, if they are working with 2 www.elemica.com company’s common stock. The 2 www.valeant.com Other investments 2 www.roche.com akzo Moves Chelates HQ to China Akzo Nobel Functional Chemi- China and the Asia Pacific re- and Controller Prasanta Dutt stada Continues to see Growth cals is relocating the headquar- gion,” explained Functional will also relocate to China dur- Companies flourish – or fail – by their ability to keep on innovating. research to industrial scale production. And in cosmetics, our in- ters of its Chelates business Chemicals General Manager ing the course of the year, with Stada Arzneimittel continues to opportunities for us to climb and related options to possibly from the Netherlands to China. Bob Margevich. Hoffman taking on the addition- At Merck, we’ve been flourishing with innovative ideas for more ventiveness has led the way in preserving natural beauty. So one target higher sales and earn- up one rank or more,” Chief fund larger takeovers. Stada The move has been prompted by Currently located in Amers- al role of Functional Chemicals’ ings in 2008 than last year, Executive Hartmut Retzlaff told last month said first-quarter than 300 years, thanks to close partnerships and systematic, thing all our ideas have in common is that they not only safeguard the growing importance of the foort, the Chelates business will administrative representative when results were already at a shareholders at the company’s net income rose 16 % to a less- thorough research. Some highlights: Merck innovations have, for the future of Merck Chemicals, more importantly: they also safe- Asian market. “It is extremely move its head office to Shang- for Asia Pacific. record, as it expects an expan- annual general meeting. Stada than-expected €31.3 million example, completely revolutionized screens and displays. They guard your future. important for us to be in close hai this summer. Chelates Gen- sion abroad to offset a slump in has scope for acquisitions be- as an expansion in emerging have injected the pharmaceutical industry with impetus, from www.merck-chemicals.com proximity to our customers in eral Manager Geert Hofman 2 www.azkonobel.com generic-drug sales in its Ger- cause its ratio of equity capital markets was tempered by a man home market. The Ger- over total assets stood at 37.1 % decline in generic drug sales in man generics supplier also con- at the end of March, more than Germany. It said at the time that firmed its plan to grow through the roughly 30 % it is targeting it sees sales in its home market Dow settles Lawsuit acquisitions, saying deals worth over the long run, he added. picking up again. Dow Chemical has settled all by, nor disclosed to, Dow’s a former divisional executive several hundred million euros Still Stada, is asking share- litigation between the corpora- board of directors concerning vice president, also acknowl- could be shouldered without a holders in a vote at Tuesday’s tion and two former executives a potential leveraged buyout edged that their termination capital increase. annual meeting to give manage- who were fired for participat- of the company, and agreed was appropriate under the cir- “We are number seven ment approval to issue up to ing in unauthorized buyout they should have informed the cumstances. worldwide and we indeed see €1 billion in convertible bonds 2 www.stada.de discussions. J. Pedro Reinhard chief executive and the board and Romeo Kreinberg acknowl- of the discussions. Reinhard, a edged participating in discus- former senior adviser and chief sustainability Covenant signed sions that were not authorized financial officer, and Kreinberg, 2 www.dow.com Basell Australia, a company Industries Association (Pacia). support product innovation for of Lyondellbasell Industries, The covenant calls for the par- greater resource efficiency by has become the first plastics ties to collectively explore how developing life cycle approaches Company investigations manufacturer in Australia to sustainable business growth in the Australian polypropylene sign a Sustainability Covenant principles can be incorporated market.  Continued page 1 According to legal com- cils, their role with regard to with the Environmental Protec- into the company’s business mentaries, such searching and internal investigations has not tion Authority (EPA Victoria) processes and management regard, it might be helpful at copying of e-mail accounts is been secured, yet. Undoubt- and the Plastics and Chemical systems in Australia. It will also 2 www.lyondellbasell.com the outset of the investigations permitted, though, if there are edly, the works council does to clearly instruct all employees tangible indicators suspecting not have to be consulted or Anything new happening at Merck? not to destroy or delete any doc- a certain employee of a wrong- even notified, if the company HC eVa Copolymer Dedicated to photovoltaic Usages uments or electronic data. doing. The other employees, conducts investigations against When searching the employ- however, would have to give one or several individual sus- The French Arkema now mar- of the materials (crystalline sili- specially developed formulation, ees’ e-mails, auditors will most their permission for the e-mail pects. However, if the inves- kets Evatane 33-45PV, an HC con or thin films) that make up it offers excellent crosslinking often have to overcome a legal screening, unless it is expressly tigations are conducted on a EVA (High Content Ethylene – the photovoltaic cells. Evatane ability and processability. obstacle resulting from German allowed by a works agreement broader scale involving other Vinyl Acetate copolymer) spe- 33-45PV is characterized by Yes, plenty. Every day, for the last 300 years! data protection law: In most with the works council. Screen- colleagues, the works council cially developed for photovoltaic good light transmission which companies, the private use of ing all employees’ e-mails with- will usually claim to install gen- solar panels. This new grade is makes for a superior yield from the company’s e-mail account is out such consent is subject to eral procedural rules regarding designed for the encapsulation the solar panel. Thanks to its 2 www.arkema That’s what’s in it for you. Merck Chemicals allowed, be it for rare occasions criminal liability. the investigation. Regardless of only. In that case, the company the legal assessment, the com- or its auditors must gener- Role Of Works Councils pany is well-advised to agree ally not search the employees’ with the works council on the Lanxess reiterates FY target of 2007 e-mail accounts without their Despite the extensive statutory procedural rules, especially as Lanxess confirmed its aim to million reported in 2007, a fig- margin below 5 %,” Heitmann explicit consent. rights of German works coun- a works council can act as an post EBITDA before exceptional ure that included businesses said. The adjusted EBITDA intermediary to convince the items of more than €700 mil- that Lanxess is divesting. margin reportedly widened to employees to cooperate in the lion in the current year and said “Lanxess is also sticking to 14.3 % in the first quarter, up investigation. Also, an agree- the first quarter’s strong busi- its 2008 target of an adjusted from 12.8 % a year earlier. ment with the works council ness development carried over EBITDA margin in line with providing for rules of an inter- into the second quarter. The what it describes as the indus- nal investigation can help to target, reiterated by CEO Axel try average, and of having no overcome privacy obstacles as Heitmann, compares with €719 business unit with an EBITDA 2 www.lanxess.com shown above.

Summary

Lanxess to Coordinate Leather Chemicals in asia Many legal aspects of company Effective from July 1, the leath- gapore site, the company will leather chemicals in Asia, and investigations have yet to be se- The Barcelona® Chair by Knoll, Inc. er business unit of Lanxess will optimize processes and trans- in future it will be our most cured. However, the employees transfer its regional marketing port. Frank Paus, head of glo- important sales location world- have extensive obligations to headquarters in Asia from Hong bal marketing in the Leather wide.” cooperate. Works council par- Kong to Singapore. By pooling business unit, said, “Singapore ticipation is advisable, especial- sales and logistics activities for is already the largest and most ly to overcome privacy issues. the Asian market at the Sin- efficient distribution hub for 2 www.lanxess.com 2 Contact: Dr. Mark Zimmer inG’s €800 Million property Fund German attorney and Certified Expert in Labor Law ING Real Estate, part of ING targets a balanced portfolio of Netherlands, while the fund Partner at Gibson, Dunn & Crutcher LLP Group, said it has launched an European healthcare assets, may also invest in Italy, Spain, Munich, Germany €800 million European health- with an internal rate of return Austria, Belgium and Sweden, Tel.: +49 89 189 33 130 care property fund targeting of 8 % to 9 %. The healthcare depending on opportunities. Fax: +49 89 189 33 330 institutional investors. It added property fund will invest main- [email protected] in a statement that the fund ly in Germany, France and the 2 www.ing.com www.gibsondunn.com

[email protected] [email protected] page 4 Markets & CoM panies CHEManager Europe 7-8/2008 CHEManager Europe 7-8/2008 Markets & CoM panies page 5

Summary

[email protected] [email protected] Page 6 MARKETS & COMPANIES CHEManager Europe 7-8/2008

Daiichi Sankyo to Acquire Ranbaxy Daiichi Sankyo said it will acquire a the planned acquisition with cash controlling stake in India’s Ranbaxy on hand and bank loans. Takashi for up to $4.6 billion to strengthen Shoda, president and chief executive its overseas prescription drug busi- of Daiichi Sankyo, said the company ness, in a deal touted to be the largest wants to attain a global presence by among listed Indian companies. Ja- acquiring Ranbaxy and added it is pan’s second-largest drugmaker said also looking at developed markets. the acquisition will cost $3.4 billion Shoda also said the combined entity to $4.6 billion. Japanese drugmakers will be the world’s fifteenth-biggest have been acquiring overseas rivals pharma company. The Indian generic to expand their global presence amid drugmaker posted a pretax profit be- stiffer competition and to boost their fore extraordinary items of 10 billion product pipelines with the expiry of rupees on sales of 74 billion rupees Allessa Acquires Reflex Blue Business The Allessa Chemie agreed with Clariant some drug patents. Daiichi Sankyo’s in calendar 2007. “The sale price Bayer Healthcare Closes Acquisition of Sagmel Bayer Healthcare has announced to purchase the Reflex Blue business as of July 1. The Reflex Blue brands are arch-rival, Takeda, recently bought for Ranbaxy, which works out to 4.2 that its consumer care division has successfully closed the acquisition of the primarily used as toning agents for black printing inks. With the acquisition, U.S. biotech company Millennium for times sales and 20.4 times EBITDA, over-the-counter (OTC) brand portfolio and related assets of the US-based Allessa will enhance its level of recognition in the pigment market and its $8.8 billion, while smaller rival Eisai is very good for a generic company,” Sagmel. The Sagmel OTC business became part of Bayer Healthcare in market position in this key industry segment. acquired U.S. drugmaker MGI Phar- said Ranjit Kapadia, head of research Russia, the Ukraine, Kazakhstan, the Baltic’s and several Caucasian and The Reflex Blue product line has been manufactured at the Offenbach site ma for $3.9 billion. Daiichi Sankyo (private client group) at brokerage central Asian countries. since 1970. The production has been managed by Allessa since the origin said it also aims to take advantage Prabhudas Lilladher. “Ranbaxy is go- The transaction, which was announced in March 2008, recently received of the company on July 1, 2001exclusively for Clariant. of the Indian company’s network to ing into good hands,” Kapadia said, the necessary regulatory approvals of the Russian and Ukrainian authorities 2 www.allessa.com explore business opportunities in rap- adding Daiichi will pursue research and will place Bayer among the top five OTC companies in the Common- idly growing emerging markets. and development projects for Ran- wealth of Independent States (CIS). The Japanese company said it baxy. 2 www.bayer.com Nexity Reim, Natixis Venture Buys Bayer Properties Capnexi, a new sale-and- plans to complete the deal within the 2 www.sagmel.com leaseback venture formed by Nexity Reim, the non-residential property unit year to March 2009, subject to regu- 2 www.daiichisankyo.com of housebuilder Nexity, and by Natixis Capital Partners, has bought three latory approval. It said it will finance Coatex Purchase Ethacryl Business Arkema has announced the acquisition properties at Puteaux outside Paris from Bayer for €105 million, the venture by its subsidiary Coatex of Lyondellbasell’s ethacryl business. With annual partners said. Bayer will lease back two of the buildings, with a combined sales of the order of €4 million, this activity will enable Coatex to strengthen area of 40 % of the total 17,000m2. its know-how in the concrete and plaster additives markets. The acquisi- 2 www.bayer.com tion will furthermore allow Coatex to complement its product line by offer- Pharma Sales To Stay Buoyant ing a wider range of molecules (polycarboxylates) to its client formulators and producers of construction materials. Coatex joined Arkema in October Pfizer Completes Encysive Acquisition Pfizer said it closed its $195 million European health care industry sales a relatively large number of promis- 2007 to form its specialty acrylic polymers business unit, specializing in acquisition of Encysive Pharmaceuticals. In February, Pfizer announced a look set to continue expanding in ing new molecules have either not the production of mostly acrylic-based polymers, used as dispersants and $2.35-per-share cash tender offer for Houston-based Encysive. The acquisi- 2008, after a resilient first quarter, been approved or have faced signifi- thickeners in many applications. tion gives Pfizer rights to Encysive’s drug development pipeline, including says Standard & Poor’s Ratings Serv- cant approval delay, including those 2 www.arkema.com Thelin, an oral drug to treat pulmonary arterial hypertension, or high blood ices. of European firms. Standard & Poor’s 2 www.lyondellbasell.com pressure in the pulmonary artery. The drug has had a rocky regulatory his- “Companies with the slowest therefore expects the U.S. pharma- tory, with the FDA declining to approve the drug on three occasions. growth in the first quarter, or even ceuticals market to lose further global Brenntag Acquires Chemical Supply Activities Brenntag has confirmed the 2 www.pfizer.com sales declines, were those with the share over the next few years, after formal approval from the Swedish and German competition authorities for greatest exposure to the U.S., where dropping to 46 % in 2007 from 48 % the acquisition of the chemical supply activities of Yara at the sites in Köping, patented drugs are suffering from in 2006 and 49 % in 2008. Sweden and Tertre, Belgium. The acquisition, announced by the two com- Merck KGaA Strengthens Latin America Business Merck KGaA said it bought aggressive generic competition,” said European pharmaceutical compa- panies in April, includes ammonia nitrate solution, aqueous ammonia and the rights to distribute 30 of Bristol-Myers Squibb’s prescription drugs in Standard & Poor’s credit analyst Olaf nies’ late-stage pipelines are still con- weak nitric acid supply activities conducted from the Köping production Argentina, Chile and five other Latin American countries for an undisclosed Toelke. For example, Glaxosmithkline sidered to be comparatively healthy. site in Sweden and the ammonia nitrate solution, aqueous ammonia, weak price, to expand its presence in the region. The sales agreement, which cov- PLC (A+/Stable/A-1) suffered a first- Nevertheless, a mixed development nitric acid and concentrated nitric acid supply activities conducted from the ers treatments of cardiovascular and metabolic conditions, runs for three quarter like-for-like sales decline in companies’ credit quality for the Kemira Growhow production site at Tertre, Belgium. In each case, related years and can be extended by mutual agreement, the German drug and of 2 %. Companies with a primarily rest of the year is foreseen, depend- production and distribution assets form part of the purchase package. chemical company said in a statement. Bristol-Myers Squibb generated European focus reported the high- ing on whether managements adopt 2 www.brenntag.com more than $90 million in revenues in the region from the drugs covered by est sales growth rates in the quar- conservative financial policies or pur- 2 www.yara.com the contract last year, Merck added. The products include Pravachol against ter. Markedly, Merck KGaA (BBB+/ sue acquisitions or share buybacks. high cholesterol levels and high-blood pressure drug Monopril. Merck posted Watch Pos/A-2) sales grew 14 % and If less conservative financial policies Eastman Changes Gasification Projects Eastman has acquired Green Rock En- €569 million in pharmaceutical sales in Latin America last year, according Bayer AG (A-/Stable/A-2) sales were are accompanied by diminished cash ergy’s 50 % ownership interest in the Beaumont, TX, U.S. industrial gasifica- to the statement. up 7 %. cushions, this will leave companies tion project. With this acquisition, Eastman becomes the 100 % owner of the 2 www.merck.de The U.S. Federal Drug Adminis- more vulnerable to potential down- Beaumont industrial gasification project and remains the sole developer. In tration (FDA) has adopted a visibly grades. addition, Eastman announced the divestiture to Green Rock of its 25 % own- tougher stance in recent years for the ership interest in the St. James Parish, La, US industrial gasification project Galenica Buys Stake in Renapharma Galenica said it will buy a 51 % stake in approval of new drugs. Consequently, 2 www.standardandpoors.com and will no longer participate in the project. Terms of the transactions were Sweden’s Renapharma in a bid to strengthen its market position in Northern not disclosed. Eastman expects to complete the front-end engineering and Europe. The Swiss pharma group did not disclose any financial details of design for the Beaumont gasification facility in the second half of 2008, and the transaction. Renapharma – which specialises in the sale of medicines to obtain non-recourse project financing by the end of 2008. for iron deficiency therapy and enjoys a leading market position in Scandi- € 2 www.eastman.com navia – will be integrated into Galenica’s pharma division. Arkema and Others Fined 79 Million 2 www.greenrock.com.au 2 www.galenica.com The European Commission said it has with the investigation. Akzo Nobel and fined Arkema, Elf Aquitaine, Finnish its unit EKA Chemicals, originally fined Thermo Fisher Strengthens Presence in India Thermo Fisher Scientific has ac- Chemicals, Erikem, Aragonesas In- €116 million, received full immunity quired the analytical technologies and environment instrumentation divisions Air Liquide Acquires Chemical Management Division Air Liquide has signed an dustrias y Energia and Uralita a total under commission rules by acting as of Chemito Technologies. Headquartered in Mumbai, India, Chemito is a large agreement to purchase the major asset parts of the chemical management of €79 million for cartel activity in the cartel whistleblowers. The fine im- local supplier of analytical instruments for life sciences and environmental division of Edwards Vacuum. The acquisition is expected to close in the end sodium chlorate market. Between late posed on Arkema was increased by monitoring applications. In addition, Chemito manufactures its own analytical of June, pending regulatory approval and pending the satisfaction of certain 1994 and 2000, the commission said 90 %, as the company is a repeat of- instruments, including gas chromatography, atomic absorption and UV-Vis closing conditions set forth in the agreement. Edwards’ chemical manage- the companies “fixed prices and al- fender, having been condemned for spectroscopy. Chemito’s analytical technologies and environment instrumen- ment division is focused on designing, manufacturing, and selling chemical located markets through a series of three previous cartels before this one tation divisions have annual revenues of approximately $10 million, and will and slurry dispensing equipment, installations and services to semiconductors meetings and other illicit contacts” in the plastics industry – Peroxygen be integrated into Thermo Fisher’s analytical technologies segment. as well as original equipment manufacturers worldwide. With production for sodium chlorate, an oxidizing products in 1984, Polypropylene in 2 www.thermofisher.com based in Chanhassen, Minn., U.S., it employs about 120 people (including 20 % agent used mainly for bleaching in 1986 and PVC in 1994. 2 www.chemito.net in Asia and Europe) and has annual sales of approximately $50 million. the pulp and paper industry. Arkema It is the first time under the com- 2 www.airliquide.com and Elf Aquitaine were jointly fined mission’s rules from 2006 that the Oxford Instruments Acquires Link Analytical Oxford Instruments plc an- 2 www.edwardsvacuum.com €59 million, while Aragonesas and European Union executive increased nounced the acquisition of the business and assets of Link Analytical. Link’s Uralita were jointly fined €10 million. the fine for a company because of its primary activity is the distribution and after-sales support of Oxford Instru- Arkema said in a statement that the previous involvement in three cartels. ments NanoAnalysis equipment in Scandinavia. DSM Completes Acquisition of PTG DSM has closed the acquisition of the Polymer fine will have “no impact” on the com- EU competition commissioner Neelie “The acquisition of Link Analytical is consistent with our five year strat- Technology Group, (PTG) of Berkeley, Calif., U.S., a company acting in the field pany’s results “bearing in mind both Kroes said: “These companies have to egy, which we commenced in 2006, to double the size of the Group and of biomedical polymers. Through this acquisition DSM wants to enhance its the provisions already booked and the learn the hard way that the Commis- improve EBIT margins by 10 percentage points. We have now established position in the global fast growing biomedical materials market. PTG will now warranty agreed with Total, on the oc- sion will impose high fines when they an improved route to supply our customers in Scandinavia as well as further be known as DSM PTG. Steve Hartig, President DSM Biomedical, comment- casion of the spin-off.” Arkema said it rip off their customers, and ultimately growth opportunities.” Said Jonathan Flint, Chief Executive of Oxford Instru- ed: “This acquisition will enable us to grow a unique portfolio of materials- may consider whether to lodge an ap- consumers, by forming a cartel.” The ments plc. The acquisition will also provide the Group with opportunities to based technologies for the healthcare market.” The DSM biomedical and PTG peal with the European Court of First commission’s investigation was trig- distribute complementary analytical instruments on behalf of a number of organization will be closely linked to service the global market. To secure a Instance once it receives the full deci- gered by an application for immunity third party manufacturers in the region. smooth integration Bob Ward will stay on as president of DSM PTG. sion. Finnish Chemicals’ and holding lodged by EKA Chemicals in March The consideration is an initial cash payment of £0.6m with a cash earn- 2 www.dsm.com company Erikem Luxembourg’s fine 2003. Finnish Chemicals also made out of up to £0.6 million payable over three years should the business 2 www.polymertech.com of €20 million was reduced by 50 % an application under the leniency meet specific sales growth targets. For the year ended Dec. 31, 2007, Link to €10 million because it co-operated programme. reported a profit before tax of £0.5 million and gross assets were £1.7 million. However, the profit included a number of one off contracts and provi- Süd-Chemie Acquires Stake of Ajay Metachem Süd-Chemie a specialty chemi- sion releases that are not expected to be repeated. It is expected that the cals company for adsorbents, additives and catalysts, has acquired a major acquisition will be earnings enhancing in its first full year. stake in India’s supplier of foundry additives, Ajay Metachem. Ajay Meta- 2 www.oxford-instruments.com chem is a manufacturer of high-grade chemicals and other materials such Dow Declares Force Majeure as resins, coatings, additives and feeders for foundries in the Indian market. The Dow Chemical Company has an- and efficient production of caustic Medicis Buys Liposonix Medicis has agreed to buy Liposonix, a privately The company operates three production sites and several sales offices in the nounced force majeure for 50 % Liq- soda.”Caustic soda (sodium hydrox- held medical device company, for $150 million in cash. Liposonix’s body centres of the Indian foundry industry. The Indian market for high-grade uid Caustic Soda. North American ide) is a crucial ingredient in an ar- contouring ultrasound technology is designed to treat areas of fat which foundry additives and products is growing at approximately 30 % a year in and some Latin American custom- ray of industrial operations, including may not respond well to diet or exercise, Medicis said. Subject to approval the wake of continuous strong growth in the Indian automobile industry ers sourced from the U.S. Gulf Coast pulp and paper, textiles, soap and de- by the FDA, Medicis said it expects to enter the U.S. marketplace with the and the rise in demand for cast iron components. will be placed on approximately 90 % tergents, bleach, petroleum products Liposonix technology in the 2011 timeframe, if not sooner. Scottsdale, Ari- 2 www.sud-chemie.com allocation immediately. The force and alumina. zona based Medicis has agreed to pay up to an additional $150 million if the 2 www.ajaymetachem.com majeure will stay in effect for a mini- Dow, also declared to its customers FDA approves Liposonix technology and if various commercial milestones mum of three months. that force majeure is being issued for are achieved on a worldwide basis. Bothell, Washington based Liposonix The force majeure at the Freeport several ethyleneamine products due has a staff of 40 scientists, engineers and clinicians. Sign Merger Agreement Albemarle Corporation and Sorbent Technolo- manufacturing site was caused by a to unexpected contingencies beyond 2 www.medicis.com gies Corporation jointly announced that they have signed an agreement of potential production issue that result- Dow’s control at St. Charles Opera- merger. The transaction will be an all-cash transaction in which the Sorbent ed in an involuntary shutdown. tions (SCO) located in Taft, La., U.S.. European Commision Clears JV The European Commission said it has cleared shareholders could receive approximately $6.00 per share of common stock, “At the Freeport site, we identified Effective immediately and likely Renolit and Evonik’s chemicals division’s proposed acquisition for joint con- which equates to a cumulative purchase price of $20 million plus certain and avoided a critical production is- through early July 2008, Dow said it trol of Suncoat. The two companies intend to acquire more than 50% of adjustments. The completion of the transaction is subject to certain condi- sue, but we must shut down the unit will distribute available product in a Suncoat to achieve joint control. The transaction was reviewed under the tions, including Sorbent Technologies receiving shareholder approval. A until we can make the necessary re- manner that is fair and reasonable in European Union’s ‘simplified’ merger review procedure for cases which the Sorbent shareholders meeting is planned for July 2008 and merger closure pairs,” said John Sampson, business agreement with contract terms. commission believes do not pose competition concerns. Renolit specialises is expected shortly thereafter. director, Chlor-Alkali. “Our employees in the manufacture of thermoplastic films and products. 2 www.albemarle.com in Freeport are working to resolve the 2 www.evonik.com 2 www.sorbenttechnologies.com issues and remain committed to safe 2 www.dow.com

[email protected] CHEManager Europe 7-8/2008 Markets & CoM panies page 7 Clarifying the EU Regulations Finding the Precise Regulatory Pathway for Biosimilars

Biosimilars – Since November 2005, similar biological medicinal products or “biosimilars” benefit from a particular abridged pro- Isabelle Dupuis Marc Martens cedure for Marketing Authoriza- Bird & Bird Bird & Bird tion (MA). A good understanding Accordingly the EMEA has the reference product have sim- of the regulatory framework issued a number of Guide- ilar profiles in terms of quality, surrounding biosimilars is key to lines to provide guidance to safety and efficacy. For this pur- the biosimilar applicants as to pose, comparability programs the success on the market for any the type and quantity of infor- need to be defined and agreed potential applicant. mation required. Three differ- upon with the EMEA according ent kinds of guidelines can be to their Guidelines. identified. First, there is the As stated above, it is not pos- A biosimilar is a biological “Overarching Guideline” which sible to define the exact amount medicinal product which is merely introduces the concept and type of required data since similar to a reference medici- of similar biological medicine it depends of each specific prod- nal product, leading some peo- and provides the basic prin- uct and is therefore determined ple to name them “biogenerics.” ciples to be applied as well as on a case-by-case basis. How- Biosimilars however present a kind of user’s guide for the ever, it can be generally stated important differences with biosimilar applicant. Secondly, that: generics which have brought the “general guidelines” apply- (i) pre-clinical data shall be the European legislator to treat ing to all biosimilars and setting provided but are generally biosimilar differently. out the general principles for achieved by means of abbre- First, biosimilars are bio- assessing the quality and (non-) viated programs of in vitro logical medicines, which means clinical aspects of biosimilars. and in vivo testing. that their active ingredients are Ultimately the most useful is (ii) data from abbreviated biological substances derived the third kind: the product-class clinical trials shall be deemed from living cells. Whereas specific guidelines which con- sufficient in certain cases. generic medicines are con- stitute annexes to the general stituted by small, simple and guideline on (non-) clinical is- Like all medicinal products, stable molecules, biosimilars sues and which address specific biosimilar medicines are sub- are mostly large, complex and pre-clinical and clinical issues jected to a monitoring of their instable entities. Secondly, with relating to specific products. At clinical settings after the prod- Biosimilars such as insulin present important differences with generics, which have brought the European legislator to treat biosimilars differently. biosimilars “the product is the the moment only four product uct has been put on the mar- process.” Biosimilar products specific guidelines have been ket. Therefore, a description of convene a meeting to discuss EU should also ensure that the future MA of the product con- which purely regulatory aspects are indeed very much defined adopted, relating respectively the Pharmacovigilance Systems aspects of the draft with the labeling of biosimilar medicines cerned. It is considered as con- will be answered by the EMEA. by their manufacturing process: to somatropin, insulin, granu- and a post marketing surveil- interested parties. is sufficiently clear and trans- fidential and the outcome is not Good communication with the they are very sensitive to any locyte-colony and erythropoi- lance plan must be provided in parent to adequately inform shared with other applicants. EMEA is undoubtedly a vital key manufacturing process varia- etins. More product class-spe- the application and in the Risk Biosimilars in Action patients and doctors. However, a significant hurdle to the success for any biotech tions as well as to differences cific guidelines are expected Management Plan. might be the high fees request- companies aching for entering in the living cells or organisms in the future. For instance, The introduction of biosimilar Conclusion ed to obtain a scientific advice the market first. used, and are therefore inher- two new guidelines concern- Role of the Pharmaceutical Industry in medicines on the market raises (€17,400 to €69,900). ently variable. ing respectively Recombinant the Development of Guidelines three major issues to which one We recommend having recourse We further recommend that Biosimilars are “similar” Interferon Alpha and Low Mo- must be vigilant in the future. to the scientific advice of the small biotech companies should to the reference products but lecular Weight Heparin are in Even if the Guidelines are not First, if regulatory authorities EMEA. One of the tasks of the seek the SME (small, micro or are made according to differ- preparation. legally binding, they set out agree to say that substitution EMEA is to advice companies on medium-sized enterprises) sta- 2 Contact: ent processes. Thus, there may Biosimilars most generally standard practices which if with the reference product the conduct of the various tests tus as the benefits include fee Marc Martens be differences between the follow the centralized MA pro- they are followed by the appli- should not be allowed for bio- and trials necessary to demon- exemptions for certain adminis- Isabelle Dupuis biosimilar product and the ref- cedure before the EMEA. Ac- cant will facilitate the grant of a logics, this position could how- strate the quality, safety and ef- trative services etc.. The status Bird & Bird erence product, to the contrary cording to the annex of Regu- MA by the EMEA. It is therefore ever evolve in view of economic ficacy of medicinal products. of SME is assigned by EMEA. Brussels, Belgium of a generic medicine. Biosimi- lation No 726/2004, the central easy to understand the interest pressures. In order to ensure Scientific advice is not legally Furthermore, we would like Tel.: +32 2 282 60 00 lars do not meet the condition route has to be used where a that the industry would have to an appropriate introduction binding for the EMEA or the to highlight the importance of [email protected] of bioequivalence in the defini- product is developed using cer- influence the development of of biosimilars on the market, applicant with regard to any pre-submission meetings during www.twobirds.com tion of generics and biosimilar tain types of biotechnological Guidelines. approval does not mean inter- processes which are enumerat- The good news is that phar- changeability with the refer- ed, i.e. recombinant DNA tech- maceutical industry can act ence product. nology, controlled expression of proactively in the development genes coding for biologically ac- and drafting of guidelines. This EU Regulatory Framework tive proteins from a cell culture opportunity is particularly and hybridoma and monoclonal interesting for biotech com- Directive 2001/83 establish- antibody methods. Biosimilars panies considering to develop ing the Code for Human Medi- products developed using any of or developing biosimilars for A Few Words from the Team cines (as modified by Directive these biotechnological process- which no product class-specific 2004/27, 31 March 2004) and es have to follow the centralized guidelines has been issued or its Annex 1 define the global procedure described in Regula- companies’ whishing to amend regulatory framework appli- tion 726/2004 to obtain a MA. a guideline already adopted. cable to biosimilars. Directive But products not developed ac- The standard adoption pro- Greetings from Darmstadt 2001/83 gives the general prin- cording to these biotechnologi- cedure comprises 10 steps sum- ciples whereas its first annex cal processes will not have to marized in table 1. and shows I would like to take this opportunity to introduce myself as the new member in the CHEManager Europe aims at specifying the practical follow the central route. Other in bold the steps where phar- team. A new start can be daunting but brings with it many new challenges and I’m very excited about requirements. possible routes are decentral- maceutical industry can give working on this publication. I’m not just new to CHEManager Europe but also to Darmstadt. I spent the Pursuant to Section 10.4 of ized procedure, mutual recogni- direct inputs. last two years in Berlin, but originally I am a London girl and studied at Imperial College. Directive 2001/83, biosimilars tion, and national procedure. Companies can influence the Ana Wood applicants can benefit from an adoption of a guideline is the With the need to meet deadlines, there is no gentle acclimatization to the new job but more a sink or swim abridged procedure in order Required Data For MA selection of topic and inclusion scenario. to obtain a MA. The right to in the relevant work programs. apply for MA according to an In order to obtain a MA for a Each year, the scientific com- On that note, one month in and I’m heading to the States for a press event. During my week long stay it will abridged MA procedure means biosimilar some extra informa- mittees and working parties of be interesting to immerse myself in the atmosphere of what is happening in the states. With both Barack that, due to the clinical expe- tion is required and, applicants the EMEA determine their work Obama and John McCain promising to invest in the healthcare service what will be the repercussions for rience accumulated over the have to submit results of tests programs and consider the the pharmaceutical industry? years with the use of the ref- to show the risk/benefit balance Guidelines that need to be de- erence product, the biosimilar of these products. In terms of veloped, reviewed or updated. As reported on page six, at present the European market is stronger than the U.S. market, with companies applicant is not compelled to quality data, the dossier for a Any interested party is welcome such as Merck KGaA reporting among the highest sales. Strong competition from generic brands is one of submit a complete dossier in biosimilar must meet the same to give input. the factors causing the slow demand of prescription drugs in the U.S. order to obtain the MA but is standard as any other medici- Pharmaceutical companies allowed to rely, to a certain nal product can also influence guidelines This trend is likely to continue as more patents launched in the 1990s begin to expire. The question is extent, on the original data Given the particular nature by commenting on a concept will the big players in the pharmaceutical industry have valuable enough products in their pipelines to (pre-clinical and clinical trials of biosimilars, the applicants paper or a draft guideline. compensate for the profit cuts due to generic competition? results) of the reference me- for a MA for biosimilars must Both documents are generally dicinal product. However, the indeed submit comparabil- released for consultation and Pricewaterhousecoopers has just released its Pharma 2020 report in which it highlights seven major trends abridged procedure for biosim- ity data in addition to the data the industry should definitely that the pharmaceutical industry will have to accommodate within the next few years. One of these trends ilars has to be more complete required for all biotechnology use this opportunity since the is the pay-for-performance concept, which is gaining momentum. Both patients and the healthcare bodies than for generics, given the products. Comparability data comments received are con- are keen on this scheme and with the accumulative data collected in electronic medical records, it is also particular nature of biological are required to demonstrate sidered for the drafting of the a viable option. medicines. that the alleged biosimilar and guideline. The EMEA may even The wording of both section Another hurdle the pharmaceutical industry must face is the lack of innovation in recent years. The 10.4 of Directive 2001/83 and Pharma 2020 report suggests closer collaboration between industry, academia, regulators, government its annex remain vague as to 10 steps of the development procedure and healthcare providers as well as better use of new technologies to reduce both the time and cost of what data is required in order of EU Guidelines clinical drug development. to obtain a MA, leaving a great margin of appreciation to the 1. Selection of topic and inclusion in the relevant work programme(s) It seems that big pharma will have to learn to think outside the box in order to stay on top in the coming regulatory authorities (EMEA). 2. Appointment of rapporteur and (if necessary) co-rapporteur) years. Annex 1 provides that the type 3. Development of concept paper and amount of supplemen- 4. Adoption and release for consultation of concept paper tary data to be provided shall 5. Preparation of initial draft guideline be determined on a case-by- 6. Release for consultation of draft guideline case basis, taking into account 7. Collection of comments the specific characteristics of 8. Preparation of final version of guideline each medicinal product and in 9. Adoption of final guideline for publication accordance with the specific 10. Implementation

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CHEManager Europe 7-8/2008 ProductionFacilities · Processes · t echnologies Page 8 Manufacturing Execution Systems Yesterday, Today And Tomorrow

Business benefits of MES – control equipment. Altogether requirements. Important crite- challenge is not only to optimize “Operational Excellence,“ “Leaner only 2 – 3 % of total investment ria are production type, batch local layers or systems, but also costs are related to process au- size, and special process/indus- to consider the entire integra- Operation,“ “Manufacturing In- tomation based on production try requirements. The following tion scenario. In the best case Dr. Timo Slawinski telligence,“ and “Collaborative near logistics and manufactur- list outlines potential savings for this may lead to a comprehen- Bayer Technology ing execution systems. Note typical MES functions in certain sive strategy to establish glo- Services BASF to Expand Bioplastics Production BASF projects a significant Manufacturing”: Altogether key that these figures may differ application areas: bally harmonized processes. expansion of its production plant for the biodegradable plastic words highlighting the industry depending on production type Production Planning and Execution: Cost Ecoflex at the company’s Ludwigshafen site. The move will raise ess steps. On the enterprise and industry at hand. and efficiency benefits espe- Heading Towards Global MES Strategy Ecoflex production capacities from the current 14,000 by 60,000 trend towards higher integration resource planning (ERP) level, Compared to the business cially in production environ- t/y. Production at the expanded plant will commence in the third in computer system supported many initiatives aimed to opti- benefits the MES investment ment as multi-purpose or pilot As one of the Bayer business quarter of 2010. mize the overall supply chain. costs are rather low. This is plants that consist of many groups, Bayer Health Care Ecoflex is a petrochemicals-based plastic which has the prop- production processes and auto- The introduction of central one factor for the industry production units and a variety (BHC) decided to establish a glo- erties of conventional polyethylene but it is fully biodegradable mation technology. Is it worth ERP-systems such as SAP R/3 trend observed at the market. of products. This may result in bal MES program with regard to in accordance with DIN EN 13432 requirements. was probably one trigger for The increase of investments reduced production/lead time, the anticipated investments in 2 www.basf.com it? And if that is the case, how far this boom. However, there was for MES and logistic systems increase of number of batches this area. The overall program should integration go? still a gap between ERP and the as well as for ERP is one of (up to 10 %), and better equip- goal is to implement a MES at DSM Will Invest in Powder Coating Resins Royal DSM plans to PCS layer. Further increase of the highest within the area of ment utilization. all BHC core sites. A core system expand its polyester powder coating resin facilities and pre- business performance can be software industry. The ARC Material Management: By means of and core team approach, with pare its manufacturing network for the future. Including invest- A general answer is hard to give. achieved by a more compre- prognosis is an 11 % annual improved material manage- one vendor and a standardized ments currently under consideration, the long term manufactur- On the one hand “Manufactur- hensive approach, which takes increase (cumulative annual ment, the effort of material implementation strategy should ing plan would result in a total capacity expansion of 40,000 t. ing Execution System” (MES) is into account the entire chain growth rate), i.e. starting from tracking may be reduced by ensure reduced cost and risk. The investments are scheduled for the period 2007-2010. As a a synonym for a broad variety of production including mate- €1.1 billion in 2003 to €1.9 bil- 80 %. In addition the inventory Additionally, harmonized busi- first step, the facilities in Schoonebeck (The Netherlands), Ping of functionalities. On the other rial and information flow. With lion in 2008. This growth rate costs and the risk of using the ness processes and best practice Tung (Taiwan) and Santa Margarida (Spain) will be expanded. hand the relevance of certain this strategy technical produc- is certainly also due to the fact, wrong material is reduced sig- sharing are to be established by At the site in Augusta (GA, USA), engineering has already been functionality depends on the tion and the supporting busi- that the manufacturing indus- nificantly. the global approach. started to prepare for a significant augment of capacity for the application case at hand. None- ness, processes can be further try is more and more convinced Process Documentation: In the regu- A cross functional and divi- American market. theless, the increasing number integrated and systematically regarding the benefits of these lated industry, MES are used sional MES Center of Excel- 2 www.dsm.com of success stories today allows optimized. This is the domain investments. Furthermore, just for the documentation of the lence was introduced for: a better evaluation of which of Manufacturing Execution looking at return of investment manufacturing process (elec- Leading BHC global MES Pro- Evonik Expands Laurolactam Capacity Evonik will invest a two- MES functionality supports best Systems. (ROI), which is typically in the tronic batch records). Aside of gram digit million euro figure to expand the laurolactam production which production near tasks. range of 2 – 4 years, is convinc- the reduction of manual steps Developing and conducting capacity significantly at its site in Marl, Germany. The new In addition more and more big Investment Costs Of MES ing enough. in the area of documentation the core system approach capacity should be available in the second half of 2009. Plans for players are heading towards and approval, the number of Establishment of vendor and a further capacity expansion have already begun. Laurolactam a global MES strategy. A good As outlined in figure 1, the Potential For Process Optimization failed batches and the time to partners is the starting material for the polymer polyamide 12. The high time for a summary and out- potential business benefits of batch release could be reduced Project prioritization, approv- performance polymers business line markets polyamide 12 as look MES are in the range of 2 – 3 % For more detailed information by 80 %. al, and monitoring a structural material under the brand name Vestamid and as a of the turn-over. Consider- regarding the business benefits Process Optimization: Assuming an Guidance and directions on powder under the name Vestosint. Business Benefit of Process ing now the investment costs we evaluated our experience operative MES in place, proc- MES strategy 2 www.evonik.com Optimization for a MES implementation, it of over 50 projects within the ess data is available for analyz- Networking and knowledge turns out that these costs are Bayer group. Realized savings ing and optimizing the techni- management in MES com- German Site Expansion After commissioning a new wafer pro- In the past, business benefits low compared to the total in- were identified systematically cal processes. Depending on the munity duction facility at the so-called “Jena Site 2” in mid-April, through process optimization vestment costs of a plant. As on a quantitative and qualita- application at hand this may Wacker Schott Solar is continuing its production-site expan- were mainly achieved in two depicted in figure 2, in average tive level. Basically, the result result in reduced costs, e.g. for With this global initiative and in sion. The company announced this during a visit by Jena mayor areas: Within the process con- only 25 % of total costs are in is that not all MES functions are raw materials or energy. close collaboration with (inter- Albrecht Schröter. The expansion focuses on construction of a trol system (PCS) level the focus the area of process automation applicable in the same way for nal) partners Bayer Technology new crystal-growing facility and will create 150 new jobs at the was on the optimal utilization and optimization. Out of these different production/industry Overall the benefits are not only Services and the vendor Werum, site. The extension is a key component of a €370 million invest- of equipment and process con- 25 % most of the costs are relat- types. Thus, an adapted scope of related to certain functionality BHC is heading towards the glo- ment program aimed at ensuring the announced production- trol systems in certain proc- ed to production near process MES is needed to meet various as described above. The general bal standardization of MES func- capacity expansion to one gigawatt by 2012. Construction work tions and the implementation of is expected to commence in August. In the future, the facility best practices in its production will produce multicrystalline silicon ingots for the manufac- sites. Objective is to find room ture of solar wafers. Silicon wafers sliced from these ingots are for improvement and reduce the starting material for the production of high-quality solar costs as part of the Operational cells. The existing “Jena Site 1” will be renovated as part of Excellence Initiative. the expansion. Plans have been under development since 2005 to convert former calcium-fluoride facilities, which have been producing calcium-fluoride crystals for the semiconductor sec- 2 Contact: tor for years. Conversion is expected to be completed by the Dr. Timo Slawinski end of the year. Bayer Technology Services GmbH 2 www.wacker.com BTS-PMT-AMS-MES RI Leverkusen, Germany Mox Announces Investments Malaysian industrial gas company Tel.: +49 214 30 52505 Mox, now a member of global gases and engineering company Fax: +49 214 30 52777 the Linde Group, brought on stream two new plants with an [email protected] investment of approximately RM100 million. The first plant in www.bayertechnology.com Shah Alam was commissioned at the end of 2007, and the second plant in Penang was commissioned last month. The new plants add a further 400t/d capacity for Mox. In addition Mox will further invest around RM250 million to expand production capacity süd-chemie: catalyst Production in Qatar air liquide invests €110 Million over the next two years, according to its newly appointed country head for Malaysia, Mr Wong Siew Yap. Süd-Chemie, a global manufac- Russia and Iran. Over the next Due to the continuous growth in “Another significant tranche of capacity for the production of turer of catalysts and adsorb- few years, oil and chemical en- demand for industrial merchant oxygen, nitrogen and argon will also be added in the southern ents, commissioned the first terprises will be investing more gases in Western Europe, Air region in 2010, with almost 600 t/d of output,” Wong said. and currently only, catalyst than $20 billion in this venture. Liquide will invest €110 million 2 www.mox.com.my, www.linde.com production plant in Mesaieed Qatar’s first major GTL plant has in Germany and Portugal in two near the Qatari capital of Doha. Hans-Joachim Müller already been in operation since production units for liquefied Süd-Chemie Polyone Celebrates Opening of Plant in China Polyone has officially The plant will supply catalysts the beginning of 2007, produc- air gases (liquid oxygen, liquid celebrated the opening of its vinyl compounds plant located in to the Gulf States, with a focus ing a planned capacity of 35,000 nitrogen, and liquid argon). The Chiling Industrial Zone, Houjie Town of Dongguan, a city in the on the fast-growing market Petroleum in the world’s larg- barrels of diesel per day. production units will start up Guangdong province of South China. Polyone’s Dongguan plant of Qatar. The catalysts will be est GTL plant, PEARL, which is Dr. Hans-Joachim Müller, a between the end of 2009 and was acquired from Ngai Hing Plastchem Company, the vinyl used to convert natural gas into currently under construction member of Süd-Chemie’s man- 2010. compounding subsidiary of Ngai Hing Hong Company. Polyone diesel based on gas-to-liquid in Qatar and as from 2010, is aging board, said “We are very Air Liquide plans to con- completed the acquisition of the assets and operations in January (GTL) processes, as well as in initially due to produce 140,000 pleased that we are the first, struct a unit in the region of 2008. Since the acquisition, it has modified and upgraded equip- other processes for converting barrels of diesel each day. and as yet the only catalyst Ulm (southern Germany), an ment in the facility, trained the staff to produce Geon compounds, natural gas into higher-grade area of strong growth and one and enhanced environmental health & safety conditions to meet chemicals. “We are determined to continue of its main sites for air gas liq- Chinese and Polyone standards. To date, Süd-Chemie has in- uefaction. This represents an 2 www.polyone.com, www.nhh.com.hk vested a low double-digit mil- expanding our site in Qatar.” investment of around €60 mil- “These investments in Western lion euro figure in this plant and lion. In Portugal, Air Liquide Europe allow us to support our BASF to Build Sodium Methylate Plant in Brazil BASF is planning currently employs twenty peo- In view of both the increasing manufacturer in the world to is to increase its production customers’ growing demand in to construct a production plant for sodium methylate in Guar- ple in Qatar. Based on forward shortage and rising price of oil, be able to start operation of a capacity in order to meet growth these areas. These units ben- atinguetá, Brazil, its largest site in South America. The plant, orders, the production facilities the GTL market is highly attrac- catalyst plant in Qatar. With in its markets. This investment efit from the latest technolo- which will have a capacity of 60,000mt/y, will be the first such will be working to capacity for tive, offering technology to con- our catalytic know-how, we will of around €50 million will be gies in terms of the efficiency plant for this product in South America and is primarily intended the next two years and discus- vert natural gas into diesel and promote the commercial pro- made at Sines (150 km south of electricity consumption and to supply the regional market. Sodium methylate is an efficient sions are already underway on other high-quality base materi- duction of diesel from gas and of Lisbon) and comprises a unit contribute to the group’s global catalyst for the production of biodiesel, which has developed into extending the newly-commis- als for the petrochemical indus- of other base chemicals. We are that will produce liquefied air objective in this area. They are an alternative for diesel fuels in the past 10 years. “We expect sioned plant. try on an economically viable determined to continue expand- gases, as well as products in part of the €10 billion invest- annual global demand for biodiesel to increase to about 18 bil- The catalysts are to be used scale. At the present time, the ing our site in Qatar by adding gaseous form for industries at ment program for the period lion t in coming years. About 15 % of this amount will come from in the region’s GTL plants, as world´s largest chemical indus- other innovative products and the Sines site. 2007-2011 that the group is South America,” said Dr. Ulrich Büschges, group vice president well as in chemical and pet- try network based solely on gas in this way, will contribute to Guy Salzgeber, Vice-Presi- implementing to accelerate its of BASF’s global business unit inorganic specialties. rochemical works, notably in is emerging in the Gulf State the region’s dynamic growth.” dent European Industrial Busi- growth.” 2 www.basf.com Qatar and Kuwait. They will of Qatar, the country with the ness and member of the group’s also be used by Shell and Qatar third-largest gas deposits after 2 www.sud-chemie.com executive committee, said: 2 www.airliquide.com

[email protected] CHEManager Europe 7-8/2008 ChemicalsLegisL ation · Processes · t echnoL ogies Page 9

Specialty Chemicals SME's and Reach Reach

Considering five Smaller companies face Managing reach: industry trends to keep a disproportional impact Proper communication is ahead of the game from reach the key to success

Page 11 @Pixelio.de Page 13 Page 14 Integrated Catalyst Technologies A Case Study of the Enantioselective Synthesis of an Integrin Antagonist

Catalysts – From the more In the case of the unsaturated acid 6, a ruthenium- traditional heterogeneous metal based catalyst prepared with Gabriela A. Grasa catalysts to the organometallic, the (R)-XylPhanePhos ligand Johnson Matthey and in the presence of acetic organic, and bio-catalysts, the Catalysis and Chiral acid gave excellent conversions Technologies application of catalysis in the (>99 %). Full conversion at low catalyst loading (S/C 1000/1) on synthesis of fine chemicals and partners to promote innovative multi-gram scale reactions (10 research for the development and 3 bar H ) was achieved by pharmaceuticals has witnessed a 2 of safe, practical, and efficient careful optimization of the use significant growth over the past catalytic processes. Collabora- of additives (acetic acid). The decade. The continuous search tion projects with industrial optimized procedure in the case partners are usually initiated of Ru-(R)-XylPhanePhos cata- for new, versatile and economical through feasibility studies and lyst provided mild conditions, synthetic methods constitutes a initial optimization, followed by good volume-efficiency, and ac- process development, cost mod- ceptable catalyst loadings and major factor in driving innovative eling, technical process transfer residual metal content. When research in the area of catalysis to final specifications and cata- combined with the ee upgrade lyst supply agreement. procedure, it offered a practical As a specific example, procedure for preparing the key from bench to full scale process Fig. 1: Johnson Matthey integrated intelligence development and consequently Johnson Matthey Catalysis chiral intermediate 7. Again, and Chiral Technologies (JM during this study we found a to market. CCT) has collaborated with with defined scope, milestones, activity and selectivity, enan- catalyst system that had not Johnson&Johnson Pharmaceu- and timelines. tioselectivities as high as 95 % been previously reported for From a process point of view, tical Research and Development The first part of the research were achieved in the presence the asymmetric hydrogenation the integration of a catalytic (J&J PRD) on the practical syn- collaboration concentrated on of neutral Me-BoPhoz rhodium of unsaturated acids (J. Org. step into a multi step synthesis thesis of the αVβ3/αVβ5 integrin multiple approaches to the and iridium catalysts. The ap- Chem. 2008, 73, 2302). has to take into consideration antagonist 1 (JnJ-26076713). enantioselective synthesis of plication of these classes of cat- With the hope that the chi- issues related both to the cata- Diastereoisomer 1 showed oral the desired enantiomer (S)-2 alysts to asymmetric hydrogen- ral substrates 4 or 7 might Fig. 2: Integrated catalyst technologies in the synthesis of JnJ-26076713 lytic step and the overall syn- efficacy in eye disease models (Fig. 2). The problem was ation was unprecedented. The assist the catalysis towards thetic route. Important factors of angiogenesis and vascular approached through fast iden- use of coordinating counter-ions the desired diastereoisomer, include catalyst cost, activity, permeability, a first for an αVβ3 tification of the optimal catalyst (chloride, acetylacetonate) and attempts were made to reduce a practical means of generat- These results demonstrate that availability, stability and ease integrin antagonist. The dis- and selection of best reaction aprotic solvents was found to stereoselectively these coming (S,S)-2. fast, knowledge based- screen- of handling, and any involve- covery route to 1 suffered from conditions using both ester 5 be crucial for achieving high pounds by using heterogeneous ing in conjunction with process ment of intellectual property several drawbacks, the most and acid 6 as substrates. Based enantioselectivity. Compound or homogenous hydrogenation Conclusions optimization allows the iden- (IP). When single enantiomers notable one being the low re- on the current understanding 3 (two diastereoisomers only), catalysts. However, no dias- tification of effective catalytic are desired, the substrate spe- covery of product due to sepa- of the factors that govern the which features a reduced quin- tereoselective bias towards Fast feasibility studies of cata- systems for each transforma- cificity and control of absolute ration by two sequential chiral activity and selectivity of the oline moiety, could be obtained the desired diastereoisomer lyst technologies on two differ- tion. However, in order to con- stereochemistry become pri- chromatographies, with three of catalyst we expected, in fact, either from 4 or directly from 5 (S,S)-2 was observed. Instead, ent precursors aided the route tinuously improve catalytic mary factors. Residual metal the four diastereoisomers being that different catalytic systems by refining the reactivity of the compound 4 was converted to selection, while catalyst proc- processes and find new appli- content in active pharmaceu- discarded (J. Org. Chem. 2008, would have been required for BoPhoz-Ir catalyst with the ad- the mixture of diastereomers ess optimization led to a practi- cations, design of new ligands tical ingredients has to meet 73, 2302). The efficient prepa- the successful reduction of the dition of iodine while operating 3, which could be separated cal scale-up of an API using a and catalyst technologies is still specification limits; therefore ration of the stereodefined un- two substrates. Generally, for in an appropriate solvent (Tet- by chiral HPLC. In summary, Ru-(R)-XylPhanePhos catalyst required. removal of metal contaminants saturated ester 5 by a Suzuki- proof of concept and catalyst rahedron: Asymmetry: 2008 19, while the use of homogeneous system. The asymmetric hydro- is equally important, especially Miyaura coupling enabled the identification, tests are run at 938). While highly enantiose- catalysis had not completely genation of 3-substituted quino- if the catalytic step is performed exploration of multiple methods relatively high catalyst loadings lective Ir- catalyzed asymmet- removed the need for chroma- lines 4 and 7 proved challeng- in the last synthetic sequences of catalytic asymmetric reduc- (substrate to catalyst molar ra- ric reduction of 2-substituted tographic separation, we were ing with the existing catalyst of the final molecule. The cata- tion. Initial evaluation at J&J tio, S/C, of 50/1 to 100/1) and quinolines is well established, able to cut by half the number systems and further research lytic step often has to be inte- PRD of catalytic chiral hydrosi- on small scale (25 – 100 mg sub- there are no previous exam- of distereoisomers to be sepa- into new catalytic systems for grated after the discovery route lylation of 5 revealed that the strate/reaction) using Biotage ples of asymmetric reduction of rated. In addition, it was dem- this transformation might be 2 Contact: is established, and therefore it Buchwald conditions (CuCl2 and Endeavor parallel screening 3-substituted quinolines. Unfor- onstrated that the undesired required. Nevertheless, the Gabriela A. Grasa has to accommodate the up- (R)-Tol-BINAP ligand) delivered hydrogenation reactors. In tunately the strategy using ester diastereoisomer (S,R)-2 could quinoline moiety could be re- Johnson Matthey Catalysis and stream and downstream chem- compound 4 in moderate isolat- this specific project, time con- 5 as the substrate was found to be recycled to the quinoline 4 duced to an equal mixture of Chiral Technologies istries as well as multipurpose ed yield with excellent enanti- straints and substrate availabil- be of limited practical applica- by controlled oxidation with diastereomers. The yield was West Deptford, NJ, USA production equipment. It is of- oselectivity (95 % ee). Despite ity limited the number of tests bility due to the high catalyst 10 % Pd/C and air. Then, the further improved through re- Tel.: +1 856 384 7039 ten the case that the substrate the high enantioselectivity, the that could be carried out and loading required to achieve full diastereomeric mixture 3 could cycling of the undesired dias- Fax: +1 856 384 7035 cost, availability, and purity requirement for high catalyst imposed early choices on the conversion (S/C 100/1). be regenerated again, offering tereoisomer to the desired one. www.jmcatalysts.com/pharma are important in determining loading and low temperatures combinations of metal, ligand whether a catalyst step will be made this approach unpracti- and reaction conditions that considered for the production of cal. could be pursued for further the desired intermediate. Last, In order to support further optimization. but not least, time is often a profiling of this promising can- A structurally diverse selec- constraint, since development didate, a collaboration between tion of ligands in combination to market has to take place in J&J PRD and JM CCT was ini- with different metal precursors a timely fashion. tiated. The first steps were was investigated (Fig. 3) in two the set-up of a Confidentiality parallel months of research Case Study Discussion Agreement with clear IP reso- focused on the hydrogenation lution (the customer owns the of the unsaturated ester 5 and As a catalyst technology and process) and the preparation of unsaturated acid 6. Handbook of Beneﬁ ts include: catalyst process developer a research proposal containing In the case of unsaturated Heterogeneous Catalysis (fig. 1), Johnson Matthey col- extensive chemistry and litera- ester 5, while the well-estab- Outstanding editors including Eight Volumes laborates with both academic ture review, analysis of possible lished rhodium cationic hydro- 2nd Completely Revised Gerhard Ertl, winner of the research groups and industrial routes to the desired product genation catalysts gave limited and Enlarged Edition 2007 Nobel Prize in Chemistry February 2008 Well-known authors representing 4270 pages the “Who’s Who” in catalysis 2000 ﬁ gures Hardcover New edition with 80% more content Print ISBN: Comprehensive knowledge for 978-3-527-31241-2 a multi-billion dollar business

Online ISBN: Available in print and online 978-3-527-61004-4

Print edition: www.wiley.com/go/hetcat Online edition: www.interscience.wiley.com/reference/hetcat 41710804_bu Fig. 3: Examples of families of chiral ligands used in initial screening

[email protected] Page 10 CHEMICALS CHEManager Europe 7-8/2008 Principles Of Heterogeneous Catalysis Part I: Steps in a Heterogeneous Catalytic Reaction, Definitions of Catalysis and Turnover

Catalysis – It is estimated that 90 % The activity of a catalyst is defined rates of surface reactions, and the of today’s current chemical processes by the number of revolutions of the overall reaction rate is controlled by catalytic cycle per unit time, given in the intrinsic reaction kinetics. As the are based on catalytic chemical synthe- units of turnover rate (TOR) or turn- temperature is increased, the rates sis, thus, heterogeneous catalysis is very over frequency (TOF). In cases where of surface reactions typically increase the rate is not uniform within the cat- more rapidly than the rates of diffu- pervasive in modern day chemistry. alytic reactor or within the catalyst sion, and the overall rate of the cata- pellets, it is useful to report the rate lytic process becomes controlled by Heterogeneous catalysis is of vital as a site time yield (STY), defined as intraparticle diffusion. The appar- importance to the world’s economy, the overall rate of the catalytic reac- ent activation energy in this regime allowing us to convert raw mate- tion within the reactor normalized by is equal to the intrinsic activation rials into valuable chemicals and the total number of active sites within energy divided by two. As the tem- fuels in an economical, efficient, and the reactor, again in units of recipro- perature is increased further, mass environmentally benign manner. For cal time. Catalysis by solid materials transfer through the external bound- example, heterogeneous catalysts has been observed quantitatively at ary layer becomes the controlling have numerous industrial applica- temperatures as low as 78 K and as step. The onset of diffusion limited tions in the chemical, food, phar- high as 1500 K; at pressures between regimes can be altered by changing maceutical, automobile and petro- 10–9 and 103 bar; with reactants in the reactor design, the catalyst pore chemical industries*, and it has been the gas phase or in polar or non-polar structure, the catalyst particle size, estimated that 90 % of all chemical solvents; with or without assistance of and the distribution of the active processes use heterogeneous cata- photons, radiation or electron trans- sites in the catalyst particles. Values lysts. Heterogeneous catalysis is also fer at electrodes; with pure metals of various dimensionless groups can finding new applications in emerging as unreactive as gold and as reactive be calculated to estimate the extents areas such as fuel cells, green chem- as sodium; with multicomponent and to which transport phenomena may istry, nanotechnology, and biorefin- multiphase inorganic compounds and control catalytic performance for ing/biotechnology. Indeed, continued acidic organic polymers; and at STYs specific operating conditions; how- research into heterogeneous cataly- as low as 10–5 s–1 (one turnover per ever, these calculations are most re- sis is required to allow us to address day) and as high as 109 s–1 (gas kinetic liable for cases where the intrinsic increasingly complex environmental collision rate at 10 bar). TOFs of com- reaction kinetics are known. In these and energy issues facing our indus- monly used heterogeneous catalysts cases, it is possible to make catalysts trialized society. are commonly on the order of one per with structures designed to provide Discussing the principles of hetero- second. The life of the catalyst can be adequate rates of diffusion and yet geneous catalysis is difficult, because defined as the number of turnovers offering high surfaces areas, leading catalysts are used for a wide range of observed before the catalyst ceases to to high rates of reaction per reactor applications, involving a rich range operate at an acceptable rate. Clear- volume, such as the design of specific of surface chemistries. Moreover, ly, this number must be larger than pore size distributions (e.g., bi-modal the field of heterogeneous catalysis unity, otherwise the substance used is distributions containing large pores is highly interdisciplinary in nature, not a catalyst but a reagent. Catalyst leading to high accessibility of the requiring the cooperation between life can either be short, as in catalytic active sites within the interior of the chemists and physicists, between cracking of oil, or very long, corre- catalytic pellet, and small pores that surface scientists and reaction engi- sponding to as many as 109 turnovers branch from the larger pores leading neers, between theorists and experi- in ammonia synthesis. to high surface areas), the formula- mentalists, between spectroscopists ed cycle of elementary steps in which intermediates are difficult to detect Furthermore, in order to achieve tion of unique pellet shapes (that lead and kineticists, and between mate- the catalyst participates while being using conventional methods (e.g., gas high surface areas, most catalysts Steps in a Heterogeneous Catalytic Reaction to high accessibility of the active sites rials scientists involved with cata- regenerated to its original form at the chromatography or mass spectrom- contain particles with sizes in the but do not cause large pressure drops lyst synthesis and characterization. end of each cycle during its lifetime. etry) because they do not desorb at nanometer length scale. The surfaces During an overall catalytic reaction, through the catalytic reactor), and the Furthermore, industrial catalysts The main advantage of using a significant rates from the surface of of these nanoscopic particles contain the reactants and products undergo synthesis of catalyst pellets contain- are complex materials, with highly heterogeneous catalyst is that, being the catalyst (especially for gas-phase sites associated with terraces, edges, a series of steps over the catalyst, ing a spatial distribution of the active optimized chemical compositions, a solid material, it is easy to separate reactions). kinks, and vacancies. If the catalyst including: material within the catalyst pellet. In structures, morphologies, and pellet from the gas and/or liquid reactants Heterogeneous catalysts typically contains more than one component  Diffusion of the reactants through some cases, transport effects can be shapes; moreover, the physical and and products of the overall catalytic contain different types of surface (as is generally the case), the surface a boundary layer surrounding the used to improve the selectivity of a chemical characteristics of these reaction. The heart of a heterogene- sites, because crystalline solids exhib- composition may be different from catalyst particle. catalyst, such as in the case of shape- materials may depend on hidden ous catalyst involves the active sites it crystalline anisotropy. Equilibrated that of the bulk and differently so  Intraparticle diffusion of the reac- selective catalysis in zeolites. In the or unknown variables. Accordingly, (or active centers) at the surface of single crystals expose different faces for each exposed crystallographic tants into the catalyst pores to the following sections, we focus on vari- principles of heterogeneous catalysis the solid. The catalyst is typically with different atomic structures so plane. Solids normally contain de- active sites. ous factors controlling the intrinsic are typically formulated from stud- a high-surface area material (e.g., as to minimize total surface energy. fects of electronic or atomic nature;  Adsorption of the reactants onto reaction kinetics of catalysts, and we ies of model catalysts in ideal reac- 10 – 1000 m2 g–1), and it is usually It would be surprising, in fact, if dif- in addition, they contain impurities active sites. refer the reader to other articles for tors with simplified reactants under desirable to maximize the number ferent crystallographic planes expos- which are either known or unknown  Surface reactions involving for- further discussion on transport effects mild pressure conditions (e.g., 1 bar), of active sites per reactor volume. ing sites with different coordination in the bulk, but are mostly unknown mation or conversion of various in heterogeneous catalysis. rather than from catalytic perform- Identifying the reaction intermedi- environments possessed identical at the surface. Finally, the surface adsorbed intermediates, possibly ance data obtained with commercial ates – and hence the mechanism – for properties for chemisorption and atomic structure and composition including surface diffusion steps. catalysts in complex reactors using a heterogeneous catalytic reaction is catalytic reactions. Moreover, most may change with time-on-stream as  Desorption of products from cata- mixed feed streams under industrial often difficult, because many of these catalytic solids are polycrystalline. the catalytic reaction proceeds. In lyst sites. reaction conditions. The principles short, it is normal to expect that a  Intraparticle diffusion of the prod- 2 Contact: derived from these more simplified catalytic surface exposes a variety of ucts through the catalyst pores. James A. Dumesic (corresponding author) studies advance the science of het- surface sites, in contrast to displaying  Diffusion of the products across the University of Wisconsin, Madison (U.S.) erogeneous catalysis, and they guide a single type of active site. Indeed, boundary layer surrounding the Tel.: +1 608 262 1095 the researcher, inventor, and inno- it is so normal today to expect such catalyst particle. [email protected] vator of new catalysts and catalytic complexity that it seems surprising processes. that, in 1925, when Taylor formu- Accordingly, different regimes of cat- George W. Huber lated his principle of active sites or alytic rate control can exist, includ- University of Massachusetts, Amherst (U.S.) Definitions of Catalysis and Turnover active centers, the report created so ing: (i) film diffusion control (Steps much attention and remains one of 1 and 7); (ii) pore diffusion control Michel Boudart The definition of a catalyst has been the most often cited in heterogeneous (Steps 2 and 6); and (iii) intrinsic Stanford University, Stanford, Calif. (U.S.) discussed many times. For example, catalysis. The relative importance of reaction kinetics control (Steps 3 to a catalyst is a material that converts surface structure – as influenced by 5) of catalyst performance. In addi- * References available on: reactants into products, through a crystalline anisotropy, surface defects, tion to mass transfer effects, heat www.interscience.wiley.com/reference/hetcat series of elementary steps, in which and surface composition – underlines transfer effects can also occur in the catalyst participates while being the difficulty of identifying the active heterogeneous catalysis for highly regenerated to its original form at the sites, either simple or complex, that exothermic or endothermic reactions Excerpt from ‘Handbook of Heterogene- end of each cycle during its lifetime. are responsible for turning over the (especially in combustion or steam ous Catalysis’ A catalyst changes the kinetics of the catalytic cycle. The identification and reforming). Copyright © 2008 Wiley-VCH Verlag reaction, but does not change the counting of active sites in heterogene- Figure 1 shows a general effect GmbH & Co. KGaA. thermodynamics. Another definition ous catalysis became the “Holy Grail” of temperature on the reaction rate is that a catalyst is a substance that of heterogeneous catalysis in 1925, for a heterogeneous catalyst. At low Part II (Desired Characteristics of a Cat- transforms reactants into products, Figure 1: General effects of temperature on catalytic activity. The intrinsic activation energy is equal to and the situation remains the same temperatures, diffusion through the alyst) will be published in CHEManager through an uninterrupted and repeat- Ea, and R is the gas constant. (Photo: Süd-Chemie) today. film and pores is fast compared to Europe 9/2008 (Aug. 21).

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[email protected] CHEManager Europe 7-8/2008 ChemiC als Page 11 Competence And Creativity Evonik is Fully Integrated in Catalysis

Under One Roof – For more Metal Powder Catalysts based than 40 years, the Catalysts Busi- on carbon black and activat- The global production sites (light dot) and sales ed carbon for this particular representations (dark dot) ness Line of Evonik Industries AG application. has been a leader in chemical cat- Basis for the production of polyvinylchloride (PVC) is the alysts, then and today customers manufacture of the monomer all over the world rely on Evonik as vinylchloride (VCM). In the respective process hydrochlo- a competent and trusted partner. ric acid (HCl) is kept in a cycle Today, Evonik is fully integrated which contains also ethylene and acetylene. Noblyst E 39 H in catalysis as it has bundled all and Noblyst E 39 KHL are tai- three disciplines under one roof: lor made fixed bed catalysts for this process which selectively homogeneous and heterogene- hydrogenate acetylene to eth- ous catalysis and biocatalysis. This The Competence Centre Catalysis in Hanau/Germany ylene. These systems are char- catalyst exists, but the cata- project is a catalyst tailored for Catalysts business line in ca- acterised by high selectivity and lyst has not been produced on a specific application. Once the talysis, in scale-up and produc- not only makes Evonik unique, it metathesis. In addition Evonik sired primary ones. Evonik has a lifetime of up to nine years. commercial scale yet. Evonik lab recipe is elaborated, the tion of sophisticated catalysts gives the customers the flexibility also offers Deloxan Metal Scav- solved this problem with a tech- transforms the lab recipe into catalyst is scaled up and taken on commercial scale. Crucial engers which are used for the nology which is called “Nickel Project Business a procedure which can be ap- to commercial production. to all catalysts is a robust and to find the most efficient solution removal of transition metal Ensemble Control”. The surface plied in a commercial catalyst Finally, in joint development stable production process. The for their needs. traces. of the Activated Base Metal In the project business the Cat- plant. Sometimes modifica- projects a new catalyst needs best catalyst in the laboratory The product portfolio for Catalyst is modified in such way alysts business line of Evonik tions of the recipe are neces- to be developed, but in con- is of no use if you can’t get it heterogeneous catalysts com- that small Nickel ensembles has developed four models, sary to make it work. Once this trast to custom design projects in commercial quantities. Self- The Catalysts business line of prises are located on top. These en- with which to run projects with is achieved, Evonik produces the process in which the cata- renewal leads to a permanent Evonik produces globally at Activated Base Metal sembles are so small that only customers: Toll Manufacturing, the catalyst according to your lyst is used may not be finally improvement of our products seven production sites. R&D Catalysts the primary amine is formed. Custom Manufacturing, Custom specification. developed. This business model and business processes. Cata- centers are attached to five of Continuous Process This technology is applied par- Design and Joint Development. In custom design projects a is characterised by the most lysts are at the very heart of them which provide technical Catalysts ticularly in the manufacture of Characteristic for projects is the new catalyst needs to be devel- intense interaction between the catalytic chemical processes. services. The sales network Olefin Polymerisation Vitamin B1 (hydrogenation of 1:1 relationship between the oped for an existing commercial customer and Evonik. In joint This is the reason why a trust- spans even further by being Catalysts pynitrile) and of fatty amines. customer and Evonik. Secrecy application. Evonik develop this development projects one will worthy and reliable partner is represented at 14 sites. Precious Metal Powder Precious Metal Powder Cata- and collaboration agreements catalyst using their know-how find all components of custom so important. The customers are served Catalysts lysts are used in the hydrogena- form the legal framework. and catalyst expertise. Typical- design projects, but enriched based on two fundamental busi- tion of dinitrotuoluene (DNT) In toll manufacturing ly, the starting point is an Ev- by more degrees of freedom in ness models: product business Important and integral parts of to toluenediamine (TDA). In a projects the catalyst composi- onik catalyst technology which the process where the catalyst and project business. the product portfolio are tech- consecutive step TDA is reacted tion, its manufacturing process is systematically modified lead- is applied. 2 Contact: nology platforms which provide with phosgene to toluenediiso- and the process where the cata- ing to an optimised catalyst. Dr Jürgen Krauter Product Portfolio customers solutions for specific cyanate (TDI) which is used as lyst is applied are well defined The large catalyst libraries, Our Core Competences Director Marketing & Business Development catalytic processes. a component for polyurethanes. and elaborated. Evonik trans- the high throughput prepara- Catalysts Business Line The product business of Evonik Activated Base Metal Cata- Crucial for customers are cata- fers the catalyst production tion and screening equipment In all business models, Evonik Evonik Degussa GmbH is focused on homogeneous and lysts are inter alia often used lysts which produce few tars to their site and produces the are leveraged where this is leverage their core competenc- Hanau-Wolfgang, Germany heterogeneous catalysts. The in the hydrogenation of nitriles. as by-products, show a long catalyst according to the speci- applicable. The testing and es such as creativity in finding Tel.: +49 6181 59-8714 homogeneous catalysts are An old problem is that sec- activity profile and can be fil- fication. qualification of the catalysts new solutions and openness Fax: +49 6181 59-2699 used in CX coupling reactions, ondary amines are formed as tered easily. Evonik offers a set In custom manufacturing happens both at the customer to ideas which are not obvi- www.evonik.com asymmetric hydrogenations and by-products instead of the de- of highly specialised Precious projects a lab recipe of a new and at Evonik. The result of the ous. Their specialization of the www.degussa-catalysts.com Focus On Specialty Chemicals Solutions & Innovations

Industry Trends – Specialty rials is one example that shows Industries AG has improved Furthermore, there is also and developing new business chemicals companies have to the path of consolidation which innovation through system- a need to organize research segments, companies must not has been taken in this area. Due atic optimization of the proc- in the global sense. Here the only continuously monitor costs think quick in order to keep ahead to the environment described, esses in the R&D sector. To do situation is a very mixed one. but repeatedly optimize them of the game. Innovation is key. the specialty chemicals sector this the company created the BASF maintains research cent- as well. Therefore, operational in Germany is particularly af- European Science-to-Business ers throughout the world, each excellence will continue to be a fected by radical change proc- Award, an innovation prize at with specific technological pri- topic in the future. This requires Trend 1: The Field of Specialty esses – which, however, can be the European level aimed at top orities. In China, however, there flexibility on the part of employ- Chemicals is Changing Faster than Ever mastered. The players react to research talent who can already is still no commitment to basic ees to cope with these changes. the wave of consolidation by re- show outstanding results at a research. Evonik-Degussa car- It is also a challenge to compa- The specialty and fine chemical ducing locations and headcount research institution in Europe. ries on development activities in nies to support employees in sector is characterized by indi- on one hand and with growth With the award the company is India and China, and Altana has this process. vidual companies and submar- initiatives involving acquisitions pursuing the goal of also inten- already established entire units kets that are sometimes small, and product diversification on sifying the connection between in China which develop their and by the high importance of the other. Here German com- research at university level and own solutions with customers, services – which is continuing panies have shown themselves in practice. Top graduates and independently of the European to increase. The wide variety of to be extremely active in the At the same time, the west- of customer logistics with the experts from universities work operations. 2 Contact: products and breadth of appli- movement into these locations. ern companies recognize the option of collaboration based together with the relevant R&D Prof. Dr. Rudolf Jerrentrup cation areas for specialty chem- increasing importance and on a vendor-managed inventory personnel from client industries Trend 5: Operational Excellence – Celerant Consulting GmbH icals require a great number Trend 2: Globalization – potential of the growing mar- (VMI) system. As part of the VMI in science-to-business centers a Perennial Topic Duesseldorf, Germany and diversity of companies from a ‘never-ending story’ kets in these emerging nations. system the company monitors where products are taken from Tel.: 0211/58330033 large operations down to small Thus the large European and the tank level at the customer the research stage to series- Due to these general condi- [email protected] specialists. At the moment, Chinese and Indian manufac- American manufacturers of site and ensures timely pickup production readiness in an tions, along with innovating www.celerantconsulting.com we are seeing a segmentation turers have caught up. In the specialty chemicals depend of the used product. average of five years. of the large companies paral- meantime they have been in- on the PRC and correspond- Evonik-Degussa is also in The corporate group intends lel to a consolidation of small creasingly successful at master- ing locations as places of pro- the midst of a fundamental to expand its leading position and medium-sized companies. ing quality even in technically duction – the race for the best restructuring process which in specialty chemicals with At the same time as the large complex jobs. They have do- locations has been going at full is exemplary for German spe- innovative key technologies and companies are reducing the mestic markets with enormous speed for a long time now. The cialty chemical companies. In capture of new growth mar- diversity of the business, they potential and are growing ac- international market leader this regard, the company is kets. Organizational elements when substance matters are also acquiring suitable spe- cordingly. As a result, China BASF intends to place 20 to pursuing a strategy to turn it- support this approach. For cialists. Thus, Altana has had a is making conscious efforts to 25% of its investment volume self into a provider of solutions example, Evonik-Degussa has systematic process in place for promote further development in Asia in the coming years to in the area of pigments. Here established so-called “project some time to analyze possible in specialty chemicals technol- assert its leading competitive the driving force behind the houses”, research groups for a Siegfried and the University of Zurich are takeover targets, whereby the ogy, for example. At the same position. This trend toward glo- change is clearly the paradigm period of about three years, in cornerstone for this was already time, the rising price of oil has balization will continue for the change which is determined which 20-30 scientists at one proud to announce Prof. Dr. Klaus Ditrich laid at the beginning of 2003. increased the importance and next five to ten years. in the industry, in particular location concentrate on build- from the department of fine chemicals The subsequent restructuring capacity for action of the oil by short product life cycles ing an innovation portfolio. As and biocatalysis of BASF SE as recipient of led to the acquisition of the exporting nations in the Middle Trend 3: Solutions are in Demand and competition from the Far part of this effort, the company pigment manufacturer Eckart. East. Manufacturers in these Rather than Just Products East. Another example for the expects clear recommendations the Siegfried Medal 2008 for developing Currently Altana operates four countries are also expanding company is in the area of bat- from its houses on which prod- highly efficient and selective enzymatic divisions: additives for paints (for example, SABIC). All these The trend toward innovative teries. Previously the company uct group must be the target of and plastics (BYK-Chemie), producers will look for lucrative solutions can be seen clearly in supplied only the materials for investment and what research industrial processes. pigments (Eckart), coatings and niches in the developed coun- the example of the leader in the manufacturing the batteries. efforts must be undertaken. The Medal will be awarded at the Siegfried sealants for packaging (Actega), tries and invest there, buying sector, BASF. The announce- Now Evonik-Degussa produces That means that the research- Symposium scheduled for September 4th, as well as sheet metals and wire respective companies. This ment in December 2007 that not only the separators but also ers in this company think be- insulations (Elantas). An exit change is supported by the fact the BASF product range was the anodes and cathodes for yond pure research matters and 2008 at the Kongresshaus in Zurich. was made from the pharma- that there are also “overflow- being expanded to include the the actual cell manufacturers. also consider market factors, ceutical business. In addition, ing” coffers in these countries, chemical intermediate product Similar things are taking place because at Evonik-Degussa the Altana continues to state its some of them government funds tetrahydrofuran (THF) for cli- in photovoltaics (nanotronics) view has become established interest publicly in additional that want to put their money in ents in Europe shows this. and with RFID tags. that research is faster and more – suitable – acquisition targets. attractive investments in the As part of this offer, BASF efficient if the customer is in- Private equity companies sup- western world. Currently there takes back the used THF upon Trend 4: Innovation is the volved in the process. In hiring port this process. Companies is also the additional fact that delivery of fresh product. In Key to Success for R&D as well, candidates are such as Advent, which have the general conditions on the this way the company reduces preferred who demonstrate en- Siegfried Ltd established a core in specialty financial markets make it in- complexity for the customer An important key to success trepreneurial thinking and com- Untere Brühlstrasse 4 4800 Zofingen Switzerland chemicals with Oxea and HC creasingly difficult for western and creates added value for given the changes cited in the munication skills, persuasive www.siegfried.ch Starck, will expand in this area. private equity companies to in- both business partners. BASF market environment is a high argumentation and a feel for Momentive Performance Mate- vest in these markets. facilitates further simplification rate of innovation. Thus, Evonik teamwork and project work.

[email protected] Page 12 ChemiC als CHEManager Europe 7-8/2008 Chemical Distribution in the CEE Countries Challenges for Medium-sized Companies in Central and Eastern Europe

EU Goes East – the geographical Market Entry Strategies in most cases, can be extremely time- expansion brings a lot of opportunities: consuming. In order to initiate business in these from the historical chance of a peaceful countries there are 3 basic alterna- Alternative 3: unification after many years of conflict tives. Alterations, mixtures etc. are Takeover of an Operating Company Dr. Bernd Soyke also conceivable and can be seen as and war to the economic effects in both Managing Director, variations of these basic strategies. This way one could immediately man- Penta Chemikalien directions. age a running business and have Alternative 1: Start from Scratch full control. The main disadvan- tion. So why is CEE so interesting for tage would be the high investments. At first glance, one might identify entrepreneurs? The advantage here is a fast imple- Additionally, there is a latent risk of a variety of benefits for the new The answer lies on the one hand mentation of one’s own company phi- non-acceptance of the new owner’s Pros and Cons of alternative 1. member countries. However, a more in the high growth rate of chemical losophy and the 100 % control of the policy. It should also be mentioned in-depth consideration reveals that product turnover. The relevant aver- business. Furthermore, investments that in CEE countries we only see a there are a great many opportu- age growth rate for the new EU-10- can be limited according to needs limited number of qualified compa- nities and challenges for Western members, those ten countries who and long-term strategy. On the other nies for sale. entrepreneurs as well. At Penta, the joined the EU in 2004, was 8.5 % side, one starts as an unknown player According to medium-sized chemi- worldwide largest network of inde- between 1995 and 2005. This rate is with no reputation in the market and cal distributors the evaluation of the pendent chemical distributors, we nearly twice as high compared to the a relatively high entrepreneurial risk above mentioned alternatives gives have achieved broad experience in “old” EU-15 countries. at the onset. the following picture: converting these opportunities into On the other hand, these CEE Alternative 1: moderate risk with moder- economic success. countries have a high potential for Alternative 2: Form a Joint Venture (JV) ate investments, but effects must be continuing strong growth with respect seen on a mid or long term basis. Attractiveness of CEE Markets for to their population, industrial devel- One can join a running business with Pros and Cons of alternative 2. Chemical Distribution opment and business environment. a reduced percentage of risk. In this Alternative 2: calculable risk with an If we compare the key factors of case, the grade of investment would adjustable investment grade; accu- According to the FECC statistics for the “old” EU-15 and the CEE coun- be adjustable to one’s own capacities. rate evaluation of the JV partners is 2006, the market volume of chemi- tries, it is clear why CEE is rated as a The entrepreneurial risk is very much a must. cal distribution in CEE has reached a highly attractive region for chemical reduced compared to the first alter- volume of 720 million Euro. Although distribution companies (Table 1.). native. However, one must depend Alternative 3: immediate market entry, this is only a small portion compared Although still a small regional on the joint-venture partner and has but paid with a high utilization of to the entire European distribution market, the CEE countries are also only limited control over the busi- internal resources. market of approximately €30 billion, of great interest to chemical distri- ness policy. It is also a fact that the this region has arrested the attention bution enterprises as a result of the number of qualified JV partners in In most of the cases, the companies of chemical distribution companies of huge growth potential in combination CEE countries is limited and must be which form the Penta network pre- virtually every size and strategic posi- with important side factors. selected carefully – a process which, fer to work with the first two alterna- Pros and Cons of alternative 3.

EU-15 CEE

Economy Slow Fast Mailing 2008 Customers De-investments New Distribution Consolidated markets New ENTER Producers Defined distribution Looking for new partners Workforce Specialists available, Few specialists, but moderate but expensive

Business environment High costs and taxes Lower costs and taxes & WIN! long, approval delays tives. Their success in the CEE coun- of costs will compromise profitability Handbook of Heterogeneous Catalysis tries clearly show that this way is also in addition to the increasing lack of feasible for medium-sized chemical well-trained workforces. Further- distributors. more, the adaptation of EU law will increase administrative expenses Outlook and costs.

We expect that growth rates will con- 2 Contact: tinue to be higher than in Western Dr. Bernd Soyke Europe and competition will increase Penta Chemikalien GmbH & Co. KG further. It can also be perceived that Mainaschaff, Germany in some, more developed markets Tel.: +49 6021 352411 ■ 8 Volume Hardcover Set shakeouts have already started. Fax: +49 6021 352490 With a view to the economic environ- [email protected] ■ Value ` 1,799 ment, it is expected that an increase www.pentachemie.de ■ Editors include Gerhard Ertl, recipient of the 2007 Nobel Price in Chemistry

■ Unrivalled resource in the ﬁ eld of sanofi, PPF: Competing Bids for Zentiva heterogenous Catalysis Czech financial group PPF launched of 916 crowns, the day before PPF a 950-crowns-per-share voluntary announced its planned cash offer for takeover bid for generic drugs mak- Zentiva. The offer price represents a er Zentiva while leaving room open 10.5 % premium to PPF’s offer price. to raise the offer. PPF announced A Sanofi spokesman later told Reuters its intention last month, which has that the company plans to finance the since sent shares up 10 %. Insurance acquisition using its cash flow and sees joint venture General PPF Holding, the deal as being earnings accretive together with PPF, holds a 19.2 % in the first year of integration. Ana- stake in Zentiva, while French com- lysts said they did not expect PPF to pany Sanofi-Aventis is Zentiva’s larg- raise its bid, although they suggested est shareholder with a 24.9 % stake. Sanofi might have to sweeten its offer One day after PPF’s offer, Sanofi- to convince other Zentiva sharehold- How to Enter & Win: Aventis said it intends to make a ers and ward off competitors. “There Simply email your answers to the following questions to 1,050 crowns-per-share competing comes a price when it would be less [email protected] quoting “Win Catalysis Book”. cash bid. The Sanofi-Aventis bid val- attractive,” said ABN Amro’s ana- ues Zentiva at 40.043 billion crowns, lyst Michael Leacock. But Zentiva is Questions: or €1.655 billion, representing €1.24 “running well in a market that’s ris- (a) Why do you like to read CHEManager / CHEManager Europe? billion for the 75 % of the Czech coming fast, so I can see why there might pany it does not already own. Zentiva be some competition for the asset. It (b) Do you have any suggestions for improvement, and if yes, what are they? said in a statement that its board will would make sense for Sanofi to pur- review the announcement and issue sue it rigorously,” he argued. Ana- a full response once details of the lysts said the deal would be moder- A sentence or two will sufﬁ ce and we appreciate the feedback. The winner will be selected at random. Sanofi-Aventis bid are published. ately accretive for Sanofi but did not “In the meantime, shareholders see it as a major strategic deal. The are advised not to take any action in Zentiva deal would be “a sideshow, it regards to the intended competing won’t change the dynamic” of Sanofi, offer or the offer recently made by which has been more focused on solv- (PPF subsidiary) Anthiarose Limited,” ing problems such as patent expira- Zentiva’s statement said. Zentiva tions, Leacock said. Brokers agreed management holds a 5.9 % stake in that Sanofi’s hand had been forced the company. by PPF’s bid. PPF has said it wants to “Sanofi-Aventis is already estab- take a more active role in the group, lished in the various markets where however at a shareholders meeting Zentiva operates. The intended earlier this month, an appointment acquisition of the control of Zentiva of a General PPF representative was www.gitverlag.com carries a strong strategic rationale,” voted down. the French pharmaceutical company said earlier. Sanofi said the offer price represents a 14.6 % premium to Zen- 2 www.sanofi-aventis.com tiva’s April 30, 2008, closing price www.zentiva.cz

Win_HandbookHet-Catalysis_CMI.indd 1 16.06.2008 10:49:28 Uhr [email protected] CHEManager Europe 7-8/2008 ChemiC als Page 13 Small is Beautiful – And Vulnerable Can Europe’s Smaller Firms Survive the Impact of Reach?

SMEs And Reach – Outside Protection Agency (EPA) in the on its website in January 2009. the world of mobile phone hand- U.S. Instead of applying the pre- This will help companies iden- cautionary principle the EPA’s tify others with an interest in @Pixelio.de sets, it seems that small is no system, known as Champ, takes registering the same substance longer beautiful. Smaller firms, a risk-based approach which is for the purposes of sharing test Melvyn Whyte a great deal simpler than Reach data as well as negotiating the Refac which make up 97 % of Europe’s – and many would say it is more costs of generating new data. chemical sector, face a dispropor- effective in protecting human The major problems within of the administrative burden it health and the environment. If SIEFs will relate to the owner- tional impact from Reach. imposes. It is the inevitable con- Champ gains support in other ship of the test data, the costs sequence of the European Com- regions of the world, the Euro- that will be imposed for its use, The new legislation is commission creating such a bureau- pean Commission’s bid to set the and how the costs of generat- plex, highly bureaucratic and cratic regulatory system and standard for the global regula- ing any new data will be shared. has major cost implications for makes nonsense of the efforts tion of the chemical industry is The Reach guidance rules are business, but particularly for of many national governments likely to fail. vague in relation to how these smaller firms without the finan- to ease the overall regulatory The first stage in Reach com- costs are being shared and there cial, administrative or technical burden on business. Of course, pliance – pre-registration – ap- is already evidence of holders resources to cope easily with the real administrative cost will pears straightforward enough. of current test data demanding Reach compliance. only become apparent once the Pre-registration allows compa- very large and in some cases compliance process actually nies to continue to manufacture retrospective payments for its Cost Impact gets underway. or import substances for several use by other companies with an years until their registration interest in the same substance. The industry has consistently Reach Awareness deadline is reached. Failure to expressed its concerns about pre-register means companies How Will SMEs Cope? the overall cost of Reach. Its di- The level of Reach awareness will have to suspend their ac- rect costs – the registration and amongst smaller firms is very tivities involving the substances Many SMEs will turn to exter- testing fees – impose a daunt- poor. A recent UK government- concerned and register them for nal sources of help to achieve ing financial burden on smaller sponsored survey reveals a wor- Reach purposes right away. Reach compliance. Limited free firms. The registration fees rying level of understanding by But pre-registration is much help will be available from Echa proposed by the new European smaller firms – and particularly more than a relatively simple in Helsinki and from the help Chemicals Agency (Echa) have by downstream chemical users. bureaucratic exercise – it also desks of the national compe- recently been finalized. They This situation will not just be has strategic implications. SMEs tent authorities – but they will were always excessive in prin- confined to the UK and is prob- need to consider whether they only handle issues of conformity ciple and will shortly become ably replicated in other member need to pre-register a substance and compliance, not individual excessive in practice. The Echa states. With the pre-registration in order to secure its continued company problems. Many con- has been granted monopoly window which opened on June presence on the European mar- sultancy firms see Reach as an powers in terms of its regula- 1 and which is only lasting ket. Some non-European pro- opportunity to generate sig- tory authority – including the six months, the time available ducers, for example, may decide nificant fee incomes. But SMEs power to impose charges on to increase the awareness of along with the annual turnover discounts on thresholds that are out the Reach implementation for commercial reasons to stop should beware – many of these industry which have little or no Reach and the compliance proc- and balance sheet thresholds five years old would – from the period (to 2018). supplying a substance. Simi- consultancies have little or no relationship to the actual costs ess involved is running out. were first announced in May outset – only serve to exclude larly, European producers may experience either of the indus- of operating the agency. 2003. In the five years since many of the businesses it in- Reach Compliance stop supporting a substance for try or of regulatory affairs. In December last year, the Fee Discounts these thresholds were originally tended to help. Similarly, it is commercial reasons and with- Reach represents the most European Chemical Industry set, chemicals have been subject surprising that the Commission By common consent, Reach draw it from the market. significant change in the indus- Council (Cefic) said that the Announcing the scale of fees on to a period of significant price apparently did not realize that, is both complex and bureau- It is also appropriate, at try’s regulatory framework for a proposed fees would result in April 16, 2008, the Commission inflation. For many companies, in future years, the effects of cratic. It is the very scale and the pre-registration stage, to generation. Its scale, complex- “excessive revenue for the Echa made what is, no doubt, consid- this has resulted in sharply in- chemical price inflation would complexity of the legislation consider the relevant tonnage ity and cost represent a major and an overcharging of indus- ered to be a major concession creasing levels of annual sales. only serve to exclude many that provides major problems band for a substance. It will be challenge for Europe’s SMEs try” and would result in “a lack for SMEs. Günter Verheugen, This means that – today – only more businesses. for SMEs. Many companies are possible to establish multiple – both in strategic and regula- of trust in the operation of the its Vice-President, said, “with a very few firms will qualify for One way to remedy this situ- only now coming to terms with registrations using different le- tory terms. SMEs must focus agency and the legitimacy of its significant reductions of 90 % the 60 % and 90 % discounts be- ation would be for the Com- Reach and only a few have fully gal entities in order to achieve on two key issues: protecting fee structure.” However, there for smaller companies we en- cause their turnover will exceed mission to adjust the turnover grasped what Reach implemen- a lower tonnage band. The data their product portfolio for the is little chance now of the Eu- sure that they continue to be the small and micro thresholds. and balance sheet thresholds tation really means in terms of requirements for substances in future and finding the most ropean Commission suddenly competitive.” In fact, there are As an example, only 8 % of the for chemical inflation. A ret- financial and administrative re- the higher tonnage are more cost-effective route to Reach realizing that it has made a big three-tiers of discounts. On the member companies in the UK’s rospective adjustment (from sources. Whether we like it or onerous and will involve sig- compliance. mistake. The Reach fees are face of it, they appear generous Chemical Business Association 2003) would at least ensure not, Reach is here to stay so it nificantly increased costs. here to stay and only time will but, in practice, they are of lim- (CBA) now qualify as micro that the thresholds represented is up to the industry to make it 2 Contact: tell the extent to which extent ited benefit to small and micro- businesses under the Commis- today’s values. If this principle work and, whilst we are doing SIEFs And Data Sharing Melvyn Whyte they will inflict lasting damage businesses because of the low sion’s definition – whilst, in is accepted, then the Commis- so, we have to ensure our busi- Refac – the Reach Facilitation Company on the competitiveness of the thresholds for annual turnover 2005, the percentage qualify- sion should also commit itself nesses remain profitable. The next stage is the Substance Cheshire, UK European chemical sector. and balance sheet total. ing was 34 %. to a further adjustment of the It is nevertheless interesting Information Exchange Forum Tel.: +44 270 258530 Reach also has a major The definitions of medium, The European Commission thresholds for chemical inflation to consider the approach being (SIEF). Echa will publish a list www.refac.eu impact on smaller firms in terms small and micro businesses must have realized that basing on an annual basis through- adopted by the Environmental of all pre-registered substances [email protected] Reach Operations Begin And Europe is Asking if We are Ready

Step-by-Step – It was yester- files. Files from IUCLID 5 or mid April and published in the The main source of informa- level compared to notification 2 Contact: day when we were talking about third party applications are Official Journal (L 107) on April tion on Reach is the agency’s requirement previously at 10kg Petteri Mäkelä then imported into Reach-IT in 17. website, which contains a spe- for new substances. This is ex- European Chemicals Agency (ECHA) Reach coming into force. Today XML format specified by ECHA The level of the fees for reg- cific section for pre-registration. pected to encourage innovation ECHA Communication Petteri Mäkelä we are right in the middle. But on its web site. istration varies according to the The agency will also actively dis- in chemicals industry. Helsinki, Finland European Chemicals tonnage. The basic registration seminate information through Tel +358-9-686180 Agency (ECHA) are we prepared for the chal- Next Steps: SIEF and Registration fee will range from €1,600 workshops, Member State and www.echa.europa.eu lenges we are facing? for substances produced in industry networks, and media If companies do not pre-reg- The agency will publish a list volumes below ten tonnes, to activities.

€ Registration Offer ister a chemical, they should of pre-registered substances by 31,000 for those above 1,000 Register beforeEarly Bird The European Chemicals not continue manufacturing or Jan. 1, 2009. Once the agency tonnes. There will be up to 90 % Europe Has A Goal 3rd International Conference Save 16 July 2008 Agency (ECHA) is responsible importing it after June 1, 2008 has published this list, com- discounts for smaller firms and 200 for managing the registration until they have registered it with panies will begin to form Sub- 25 % reduction for firms that One of the important aims of process and it is one of the ECHA and paid the appropriate stance Information Exchange cooperate together on registra- Reach is to enhance down- contact points in addition to registration fee. Forums (SIEF). The purpose tions. The fees are payable to stream industries knowledge the national Reach helpdesks of a SIEF is to allow compa- ECHA. about the chemicals they use. for those seeking help. What Pre-registration Is Easy nies to share and assess data A lower registration fee has Another is to increase the flow we should keep in mind while and information on the same been fixed for the registration of of information from users to REACH Europe talking about Reach. Pre-registration information substance, and to prepare the intermediates because the asso- suppliers so that appropriate consists of the substance iden- common parts of a registra- ciated workload for the agency safety assessments can be car- Registration, Evaluation and Know Your Substances tifiers (EINECS and CAS num- tion dossier (joint submission). will be much lower than for the ried out by manufacturers and Authorisation of Chemicals 2008 bers and names), company Participation in a SIEF allows other registration dossiers. The importers. The resulting im- A basic requirement for compa- information, anticipated regis- companies to reduce costs and fee revenue will partially finance proved knowledge in the supply nies under the Reach regulation tration deadline, tonnage band the need for testing, especially the operations of ECHA, with chain should ensure safer use of is that they have to know their and an indication of related on vertebrate animals. the remaining finance coming chemicals and lead to improved 16-18 September 2008 Antwerp, Belgium substances and register them. substances that could poten- After the lead registrant has from a Community subsidy. The human health as well as to bet- Pre-registration applies to most tially aid in the assessment of submitted the joint submission, fees will be reviewed by 2013 at ter protection of the environ- chemicals which are currently the substance. Unlike registra- each company in a SIEF will the latest. ment. on the market in the European tion, pre-registration is free of submit their own registration The objectives of Reach will Do you trade in the European Union? Union. It involves substances charge. containing the company-specific What is ECHA’s Role in Pre-registration? be achieved over time as chemi- If you do, are you ready for REACH? individually, in formulated pro- Companies must submit information and a reference to cals have been registered, safety ducts (preparations), and also their pre-registrations elec- the joint submission. Each com- ECHA has published guidelines assessments for their identified in finished products from which tronically to the ECHA via the pany will also pay their own and tools for the industry on its uses have been carried out, and the chemicals may be inten- Reach-IT portal on the ECHA registration fee. multilingual website, and its the information generated has tionally released under normal website. A file can be prepared helpdesk is assisting companies been cascaded down the supply www.polymerconferences.com conditions of use. The one tonne for submission either online Fees Under Reach in doing pre-registration online. chain. threshold applies to all these using the Reach-IT system, by The agency is also responsible It is also worth remember- cases. The pre-registration al- compiling the required infor- The fees that will be charged for the management of the ing that Reach is levelling the For further information visit our website or contact us on lows companies to benefit from mation using an IT tool called for registration, evaluation and Reach-IT portal – the only chan- requirements for new and exist- Telephone: +44 (0)1939 250383, E-mail: [email protected] the staggered registration dead- IUCLID 5, or using other IT authorisation procedures were nel for submitting pre-registra- ing chemicals and requiring a lines of 2010, 2013 or 2018. tools that can generate XML adopted by the Commission in tions to ECHA. registration only at one tonnes

[email protected] Page 14 ChemiC als CHEManager Europe 7-8/2008 Managing The Reach Risks Proper Communication is the Key to Success

Reach Regulation – The new reg- competition law may reach 10 % of a ulation brings chemical supply chain company’s worldwide turnover. In addition, companies may be exposed to communication into a new era. Differ- damage claims made by parties who ent questions apply to different stages suffer losses caused by anti-competitive behavior, and any such action in the supply chain. would damage companies’ reputation and brand name,” Ruxandra Cana While seeking answers to these ques- points out. tions companies are also searching The significance of the traceability for information on market conditions, and infallibility of communication is information which is crucial to every- also emphasized in separate provision one’s future. Holding on to confidential on data storage contained in the regu- business information and being aware lation. Here it is required that “each of changes in the markets are the keys manufacturer, importer, downstream to success in Reach-valid chemical user and distributor shall assemble business. The importance of comply- and keep available all the informa- ing with EU legislation on competition tion he requires to carry out his duties should also not be forgotten. under this Regulation for a period of In the Reach era chemical manu- at least 10 years after he last manufacturers, importers and downstream factured, imported, supplied or used users are required to provide and ex- the substance or preparation.” change far more information about chemical use and safety than in the Communication – the Key to Success past. With the increasing complexity of global inter-corporate networks, With the approach of pre-registration holding on to confidential business many questions about Reach remain information also requires particular to be answered. It is nevertheless attention. clear that the regulation will stir the Emphasis should be placed on chemical supply chain in one way data security and dependable com- or another. Of the companies inter- 45 % of the chemical companies believe they would need to renegotiate or alter their supplier contracts. (Photo: BASF) munications, as data ending up in the viewed in the PricewaterhouseCooper wrong hands could have far-reaching communications between companies. concluded by placing separate em- sure that these exchanges do not cre- users to increase mutual communi- survey in the spring of this year, 45 % consequences for a company and its Dependable, traceable and control- phasis on the fact that ”Reach actors ate any issues from a competition law cation, it is also in every company’s believed they would need to renegoti- ability to compete. Of equal or per- lable communications both in supply should always ensure that their ac- perspective, and in particular that they interest to glean information on their ate or alter their supplier contracts. haps even greater seriousness are the chains and in information exchange tivities comply with EC competition do not serve as means to coordinate competitors’ operations. Particular However it should be clear that Reach consequences for a company involved forums is the essential factor in man- law irrespective of the form of co- prices or market behavior,” states Rux- attention should be paid to maintain- will influence the supply chains of in these activities falling foul of EU agement of the Reach concept. operation they choose.” Although the andra Cana, a Reach lawyer familiar ing the confidentiality of business every company to some extent. competition legislation. guidelines contain a list of examples of with competition law, from Attorneys- information in connection with com- The key to success in the Reach Mere fulfillment of statutory obli- Reach Communication and Competition Law those items which at least should not at-Law Field Fisher Waterhouse. munications within the supply chain era is efficient and appropriate com- gations will not, therefore, be enough be handled with regard to informa- The same applies to communica- and information exchange forums, as munication with suppliers and cus- for success with Reach. An essential While preparing Reach Data Sharing tion exchange, experience of RIP 3.4 tions in the supply chain if participat- it may be difficult to avoid its trans- tomers. It is evident that companies part of the new era in the chemical guidelines (RIP 3.4) particular attention is not in itself sufficient for fulfilling ing companies are in competition with fer into the wrong hands without the should begin preparation for registra- business will be preparation for tak- was drawn to the relationship between the requirements of competition law each other. appropriate preventative measures. tion and the permit procedure in good ing care of confidential business in- competition law and Reach regulation. in a changing chemical market. Top “Companies should keep in mind Serious difficulties will result if game time, exploit all possible sources of formation, intellectual property rights The question is not merely one of minor experts in jurisprudence familiar with that often their suppliers or custom- rules for information exchange fo- information and act in fluent coopera- and EU competition legislation. details in a convoluted Reach colossus, the case have also urged for particular ers may also be competitors. In these rums or within a consortium are not tion with each other. With less than Their significance will be high- but of a matter which will decide the attention be accorded to this fact. cases, communications that would for laid down with precision, and any dis- 200 days before the end of pre-reg- lighted by the fact that Reach leg- future of many companies. “SIEF communications are exchang- example disclose specific quantities, cussions held cannot subsequently be istration, emphasis should be placed islation introduces noticeably more Perhaps for this reason the comes of information among competitors. territories or market strategies are traced with accuracy. without delay on efforts to ensure at extensive obligations with regard to pilers of the data sharing guidelines As such, the SIEF participants must en- very sensitive from a competition law Communication in information least the availability of all critical raw perspective and should be avoided.” exchange forums or the supply chain materials. In those cases communication, is extremely problematic without according to Ms Cana, should be re- tailor-made instruments, and with- duced to a minimum, made anony- out dependable data storage it may 2 Contact: mous and in aggregate form as far subsequently reveal itself as fruitless, Eeva Punta and Joonas Alaranta as possible. or entirely contrary to law and, fur- Reachway OY thermore, expensive. Helsinki/Joensuu, Finland How To keep CBI? “The importance of safe and secure Tel.: +358 10 8364 200 information exchange instruments Fax: +358 13 263 7202 While Reach obliges chemical manu- cannot be overstated: the penalties [email protected] facturers, importers and downstream imposed for non-compliance with www.reachway.eu

Reachlink Ready For Pre-registration Anticipating the next important step cals. Therefore we rely on a success- been trained by Cefic and the Reach of Reach, Cefic’s new subsidiary ful implementation of Reach and we Centrum, which was established in Reachlink is launching an IT platform will contribute to making the system June 2006, on Reach and its implica- supporting the creation and manage- deliver,” says Lena Perenius, execu- tions for every business units in the ment of the substance information tive director responsible at Cefic for companies. exchange forums (SIEF). “We cannot chemicals legislation and Reach im- afford to miss this unique opportunity plementation. Over two years hun- to restore public confidence in chemi- dreds of company managers have 2 www.cefic.org

Threat to Reach The former U.S. ambassador to the fire safety products should be banned EU risk assessments. If this proposal European Union, Stuart Eizenstat, under EU law. Eizenstat is scathing by the political activists is allowed has warned of the “chilling signal” of a recent study, carried out by the to stand, these chemicals could be for EU-U.S. trade if political activists Öko Institut for the EC, which lists banned, contrary to scientific assess- are allowed to undermine European about 46 chemical compounds to be ments and even before Reach has had chemical legislation, after a green considered for a ban. He says many of an opportunity to evaluate the rela- think-tank proposed that a range of these chemicals have already passed tive risks and benefits.

Sigma, Aldrich, Supelco and Fluka are registered trademarks of Sigma-Aldrich Biotechnology L.P. and Sigma-Aldrich Co. Riedel-de Haën®: Trademark registered by Honeywell Inc. hexion to Back out of merger agreement Hexion Specialty Chemicals said trequired to consummate the merger it has filed a lawsuit against Salt agreement are inconsistent with the Did you know Lake City-based chemical company terms of the deal and the obligations Huntsman alleging that Huntsman’s to Huntsman and its shareholders. the winning Sigma-Aldrich team financial condition precludes the two President and CEO Peter Huntsman firms continuing with a $10.6 billion said: “These actions appear to be a merger agreement. Huntsman agreed Peter Huntsman blatant attempt to deprive our share- contains four of science’s biggest brands? CEO Huntsman in July 2007 to the all-cash acquisi- holders of the benefits of the merger ® tion, including debt, at $28 a share. agreement that was agreed to nearly including all Riedel-de Haën laboratory reagents & chemicals While individually each company is Hexion shouldn’t have to pay a $325 a year ago.” Huntsman intends to solvent, a combined company would million deal breakup fee because of vigorously enforce all of its rights With our formidable range of high quality products being used today in all types of laboratories, we’re everywhere be insolvent, Columbus, Ohio-based “substantial deterioration” in Hunts- under the agreement and seek to con- there’s science. Sigma-Aldrich’s ﬂagship brands are recognised all around the world. Moreover, as our global reach Hexion said. Huntman’s net debt has man’s financial performance and the summate the merger on the agreed extends even further, we’re now integrating our Riedel-de Haën® laboratory reagents and chemicals into these brands. Rest assured the increased and its earnings are lower expectation that an ongoing, material terms. About a year ago, Huntsman products remain exactly the same, as do the production, quality controls and service you so readily identify with Riedel-de Haën®. We are than expected, it said. Hexion, which downturn in its business amounts to had already agreed to merge with proud to have the products in our range and to make them a part of our winning team. is controlled by an Apollo Manage- a material adverse affect. In a state- Dutch based Basell, however Hexion’s ment LP affiliate, said it doesn’t ment, Hexion said it “will continue to competing bit precluded Huntsman to believe banks would provide the use its reasonable best efforts to close merge with Basell. Meanwhile, Basell financing for the merger outlined in the transaction.” Huntman’s stock and Lyondell merged their operations their commitment letters and that tumbled in after-hours trading. creating Lyondellbasell. alternate financing is unlikely to Huntsman later said the law- sigma-aldrich.com/rebranding emerge. The suit also says that under suit filed by Hexion and Apollo in 2 www.hexion.com the terms of the merger agreement, which they claim they would not be www.huntsman.com

[email protected] CHEManager Europe 7-8/2008 PEOPLE · EVENTS · AWARDS Page 15

Furniture For Better Communication Eight Intergraph Icon Award Recipients The new, comprehensive standard just published by Birkhäuser Verlag, Intergraph has bestowed Icon Awards, Award winners are: Canadian Natural work, “Planning guide for conference Professor Guido Englich and Burk- its highest customer distinction, upon Resources, East China Electric Power and communication environments: hard Remmers show how conference, eight U.S. and international industry Design Institute (ECEPDI); Genpro Conference. Excellence” is a guide to training and teamwork processes can and government leaders for their Engenharia; Hyundai Engineering; furnishing conference rooms and of- be improved. It is a reference book innovative use of and results with Kadaster, the Dutch Cadastre Land fices. New media, global markets and for architects and facility managers enterprise engineering and geospa- Registry and Mapping Agency; Mont- increasing project work have changed and provides clearly structured and tially powered software. The awards gomery County Emergency Dispatch the character of the exchange of in- detailed guidelines for furnishing con- honors companies and organizations Services; Progress Energy and the US formation and forms of cooperation ference rooms, offices and lounges that have deployed and leveraged Air Force Warner Robins – Air Logis- within companies. In the new guide, according to the latest findings. Intergraph software in a visionary tics Center. manner to yield results that have significantly contributed to their Praxair Receives Award for Productivity business and industry. The 2008 Icon 2 www.intergraph.com Climate Change Exhibition Cefic will organize an exhibition on climate change and energy, in the European Parliament in Strasbourg, “Building blocks for Praxair Cryomag Services, a subsidi- ductivity savings and cost avoidance. Climate Change Solution.” The exposition, sponsored by Richard Seeber, will ary of Praxair Inc., was presented Praxair routinely goes above and Research Funding Awarded last from July 7 to 10 at the North Gallery of the Low building. Many mem- with a Productivity Award at the 2008 beyond to service GE in many areas bers of the European Parliament will be attending different events of the GE Healthcare Global Supplier Day. in need of support. GE Healthcare is Akzo Nobel is part of a Dutch consor- conducting research into algal biol- exhibition. On this occasion, the chemical industry will show solutions that

“Praxair is a global supplier for pleased to present Praxair with the tium which has just received major ogy, growth parameter testing, sepa- chemicals can offer to reduce CO2 emissions in the frameworks of housing delivering liquid helium to our MRI Productivity Award for their commit- funding to investigate the potential ration and the subsequent upgrading and mobility. The companies participating with concrete cases in this display machines. Over the last two years, ment to sharing their expertise and of converting algae into feedstock for of algae fractions. In addition, a pilot are Arkema, Bayer, Dow, ExxonMobil, Ciba, Mapei, Rohm & Haas, Shell and servicing almost 600 magnets, productivity,” said GE Healthcare. the chemical industry. Having part- project will begin at Akzo Nobel’s Chemicals, Sinterama, BASF, Evonik Industries, Hexion Specialty Chemicals, Praxair has provided us with half a nered with energy company Essent, Delfzijl site in order to scale up the Rhodia, Sanofi Aventis, Solvay and Wacker. million dollars in variable cost pro- 2 www.praxair.com algae producers Ingrepo and Wage- processes. Factors that influence the 2 www.cefic.org ningen University, the consortium has economics of algae-based chemical now received more than €1 million building blocks algae will also be in- of government funding after success- vestigated. fully applying for a long-term energy EPCA Annual Meeting Participants of this year’s annual meeting of the research subsidy. The four-year study European Petrochemical Association (EPCA) in Monaco will discuss top- will involve scientists at Wageningen 2 www.akzonobel.com ics focusing on the meeting’s theme of “Chemicals on the Horizon 2030 and Beyond.” The meeting offers unique global networking opportunities, presentations on actual trends in business and the geo-economic environment. Top quality speakers with large experiences in the world of industry, business development and politics address the audience, questioning or challenging the business as usual approaches. A common Business Session Please send your event information to with an industry speech and a major economic speaker will be followed by focused workshops on logistics. 2 www.epca.be/meetings/am08 [email protected] Tel:. +32 2 741 86 60 Fax: +32 2 741 86 80 New President and CEO – Charlie Crew Sabic Innovative Plas- tics announced that Charlie Crew has been promoted to president and CEO of the company, effective immediately. Crew will lead the multi-billion-dollar engineering thermoplastics business with operations in more than 25 countries and over 10,500 employees worldwide. Crew replaces Brian T. Glad- den, who left the company to pursue other opportunities. Crew has had a long and accomplished career with the Charlie Crews company. He joined GE Plastics in 1977 as an account man- Apply today for your ager, and over the years he has held a variety of roles of increasing responsibility. Most recently Crew was vice president and general manager of Sabic Innovative Plastics’ global ventures business. free* subscription 2 www.geplastics.com 2 www.sabic.com Please photocopy the form, complete all sections and fax it back Tex Gunning has been appointed managing director of Akzo Nobel’s decora- tive paints division as it expands its board of management to five members Fax back on +49 6151 8090 168 from its existing four. The appointment will be effective from Sept. 1. Gun- ning has been Vedior CEO since 2007, but indicated last year he would exit Please answer all sections by filling in the boxes the company after its agreed acquisition by Randstad. 1. What is your company’s primary business? 2. What is your job function (fill in one only) (fill in one only) Borealis Key Personnel Changes Borealis, a leading provider of innovative, value creating plastics solutions, announces Chemicals and Petrochemicals Managing Director/CEO/President Engineering Manager that Wim Roels, currently Vice President (VP) for Innovation and Technology, assumed the role of vice president for the Life Sciences (Pharma, Biotech, Agro) Head of Plant Operations Head of Production Moulding Business Unit in Vienna, on June 1. Replacing Plant Construction/Engineering Sales & Marketing Manager R&D Manager Gilles Rochas who moves to the Borouge marketing and Plastics IT-Manager Purchasing Manager sales company in Singapore to lead its Film and Moulding business. Rochas succeeds Laurence Jones who will occupy Consulting Logistics Manager Head of QC Alfred Stern the newly created role of VP Corporate Support at the Bor- Food & Beverage Commercial Director Other (please specify) ouge production company in Abu Dhabi. Borouge is Borealis’ Joint Venture with the Abu Dhabi National Oil Company. Site Management Borealis also announced the appointment of Alfred Stern as Vice Presi- Other (please specify) dent (VP) for Innovation and Technology, effective June 1. He will be suc- ceeding Wim Roels, who assumes leadership of the company’s Moulding business in Linz, Austria. 2 www.borealisgroup.com 3. How many people are employed in your facility? 4. Do you recommend, specify or authorise the purchase of services, equipment and supplies? Fewer than 20 20 – 100 Jack Gerard to Take over as CEO of the American Petroleum 101 – 500 501 – 1,000 Yes Institute Jack Gerard, president of the American Chemical No Council, is to take over from Red Cavaney, who is retiring 1,001 – 5,000 5,000+ effective Nov. 1, as chief executive officer of the American Petrochemical Institute. 5. Do you plan to purchase or invest in any of the following in the future? The oil industry group is a major player on Capitol Hill. It (fill in all that apply) spent nearly $1.3 million in the first quarter to lobby on fuel economy standards and other energy issues, after spending Jack Gerard Raw Materials Processing/Manufacturing Equipment $4 million to lobby the federal government in 2007. With petroleum prices soaring to new heights in recent weeks, the industry has Engineering Services New Foreign Production Sites been under fire in Washington, with lawmakers complaining that oil com- Logistics IT Services/Equipment pany executives are insensitive to consumers’ woes as they rake in record profits. Packaging Process Automation and Control 2 www.api.org Other (please specify) 2 www.americanchemistry.com

Graham Hetherington has been appointed Chief Financial Officer and Ex- Please sign below if you wish to receive CHEManager Europe for free* ecutive Board Director of pharmaceuticals company Shire effective July Signature Date * free to qualifying readers in Europe 1. Hetherington replaces current CFO Angus Russell, who was appointed CEO earlier this year. Russell will continue as acting CFO until the hand- over date. The company said Hetherington has a broad range of experience Print your name and address and most recently held CFO roles at Bacardi (2007) and Allied Domecq Mr/Mrs/Ms First Name Family Name (1999 – 2005). GIT VERLAG GmbH & Co. KG Job Title Roesslerstr. 90 Utz Tillmann – New Director General of VCI Dr Utz Tillmann Company 64293 Darmstadt, Germany is now Director General of the German chemical industry Tel.: +49 6151/8090-0 association VCI, effective immediately. Tillmann has an Address industry background, combined with wide experience in Fax: +49 6151/8090-168 association work in Brussels and Frankfurt. Now at VCI, Postcode City Country [email protected] Tillmann wants to help strengthen the position of the Ger- www.gitverlag.com man chemical industry as one of the mainstays of growth Tel. 00 Intl. dialing code Number (0) and prosperity. Tillmann: “Products and innovations from Dr Utz Tillmann the German chemical industry are major contributions to Fax 00 Intl. dialing code Number (0) a sound future. We need competitive framework conditions in Germany Decisive points for our international competitiveness are energy and raw Email material costs, environmental and climate protection, innovation and company taxation.” 2 www.vci.de

[email protected] Page 16 AT A GLANCE CHEManager Europe 7-8/2008

Employment in High-tech Sectors EU Agencies: A Red (tape) Carpet Share of Women in High-Tech Sector

Percentage of persons employed in high-tech sectors, by gender, The 15 largest EU Agencies EU and selected countries – 2006 Abbreviation Location Budget 2008 in million % Finland OHIM The Office of Harmonization for the Internal Market 300.6 Ireland 6.5 EMEA The European Medicines Agency 165.5 Malta 6.2 EASA European Aviation Safety Agency 85.3 Switzerland 6.1 FRONTEX The European Agency for the Management of Operational Cooperation at the External Borders of the Member States 69.0 Sweden 6.0 of the European Union Hungary 5.9 ECHA European Chemicals Agency 66.4 UK 5.2 EFSA European Food Safety Authority 63.5 Denmark 5.2 EMSA European Maritime Safety Agency 44.4 CDT Translation Centre for the Bodies of the European Union 42.3 Germany 5.2 EACEA Education, Audiovisual and Culture Executive Agency 41.9 France 5.0 ECDC European Centre for Disease Prevention and Control 39.1 Czech Republic 4.6 EEA European Environment Agency 36.4 EDA European Defense Agency Belgium 4.6 35.0 EUROFOUND The European Foundation for the Improvement of Women 21.2 Iceland 4.5 Living and Working Conditions Men The Netherlands 4.5 EUROPOL European Law Enforcement Organization 21.0 Norway 4.4 EUROJUST an agency of the European Union (EU) dealing with 20.0 judicial co-operation 0% 1% 2% 3% 4% 5% 6% 7% Source: Eurostat – High-tech statistics © GIT VERLAG Source: Cologne Institute for Economic Research © GIT VERLAG

In 2006, high-tech sectors accounted for 4.4 % of total employ- EU Member States are normally charged with turning decisions ment in the EU. Finland had the highest share of persons work- made by the Commission and the Parliament into reality. How- ing in high-tech sectors, making up 6.7 %. In 15 Member States, ever, in the past few years, the EU has succeeded in creating Croatia and Turkey, the share of people employed in high-tech more bureaucracy for itself – of the 35 agencies, 24 have been sectors was below the EU average of 4.4 %. Indeed, most of the created since 2000. The EU has apparently heard the cries of countries below the EU average are either candidate countries, protest from sceptics; in March, the Commission decided that Member States that have recently joined the EU (2004 and 2007) the transparency of the decentralization of the agencies should or Member States from southern Europe. be improved.

Growth despite turbulences Billions From Luxemburg

Industrial Production: Forecasts revised EIB: Spain receives the most Growth of industrial production (prediction May 2008) expected for 2008 in % Loans in 2007 (million %)

Switzerland 5.3 0.8 Spain 7,154 Ireland 4.3 0.3 Germany 6,536 Germany 3.9 0.8 Italy 5,609 The map provides an over- it highlights is that, in general, with high proportions of women Austria 3.5 0.1 UK 4,160 view of women’s share of women did not reach parity employed in high-tech sectors Finland 2.9 1.0 France 4,148 employment in high-tech sec- (50 %) in employment in the EU were located mainly in Eastern Sweden 2.6 –0.9 Poland 2,281 Denmark 1.9 0.4 tors in 2006. The main feature high-tech sectors. The regions Europe. Czech Republic 1,599 Netherlands 1.4 –0.4 Portugal 1,504 France 1.4 0.1 Variation from Hungary 1,217 Japan 1.3 –1.4 December Forecast Bulgary 1,108 in percent Belgium 1.2 –0.9 Austria 1,070 USA 0.2 –1.1 Belgium 928 Coming up in CHEManager Europe 9/2008: Spain 0.6 –1.7 Greece 755 United Kingdom 0.3 –0.2 Sweden 713  Institutional barriers to industrial biorefineries in the UK Italy –0.2 –1.2 Total 47,820  Shedding light on tunnel regulations Source: Cologne Institute for Economic Research © GIT VERLAG Source: EIB © GIT VERLAG  This year’s economic outlook is not as bright as in the past, but To support the common market in Europe the European Invest- How to establish a safe environment a change in direction is not recognizable. The turbulences in the ment Bank (EIB) is allowing loans to EU-members and their col-  FECC Congress wrap up USA – the financial market crisis and the weak dollar – will only laboration partners. Last year, a total of €48 billion was spent, Out on Aug. 21 affect Europe to a certain extent. The industrial growth in Ger- 5% more than 2006. The majority of the loans went to Spain, many is good, and can only be topped by a few other countries. Germany and Italy. The EIB was created by the Treaty of Rome The high price of oil could lead to an economic slowdown. in 1958 as the long-term lending bank of the EU. The task is to contribute towards the integration, balanced development and INDEX economic and social cohesion of the EU member states. Actega 11 Evonik 2, 3, 6, 8, 11 MGI Pharma 6

Actimis Pharmaceuticals 1 Finnish Chemicals 6 Mitsui 1 Evolution of Trade R&D Tax Breaks in Europe Air Liquide 6, 8 Nexity Reim 6 Galenica 6 Ajay Metachem 6 Notox 2 Evolution of EU-27 external trade with United States, EFTA countries, R&D Support: German Companies at a Disadvantage Gempex 16 Small and mid-sized companies were either better (+) or worse (–) off tax-wise by so many cents in 2006. Akzo 5, 15 Novartis 2 China, Russia, Japan, South Korea, Canada and Australia in EUR million, The numbers are per euro spent on R&D. Glaxosmithkline 3, 5, 6 1999–2006 Albemarle 6 Otsuka Pharmaceutical 3 Spain 39.1 Green Rock Energy 6 Allessachemie 6 Oxea 11 250,000 China 33.9 Hamilton Bonaduz 10 Oxford Instruments 6 Canada 32.5 Almig 10 India 26.6 Penta Chemikalien 12 200,000 Altana 11 HC Stark 11 France 18.9 Pfizer 6 Japan 16.2 American Chemistry Council 15 Hexion 14 150,000 UK 10.6 Polymer Technology Group 6 Apollo Management 14 Huntsman 14 Austria 8.8 Polyone 8 Aragonesas 6 ING 4 100,000 USA 6.6 PPF 12 Ireland 4.9 Arkema 2, 4, 6 Institut der deutschen Wirtschaft 16 Pricewaterhousecopers 3 50,000 Finland –0.8 Arrow Energy 3 Switzerland –1.0 Intergraph 15 Radius Solutions 3 Schweden –1.5 Basell 14 0 John Wiley & Sons 9 Ranbaxy 6 Italia –2.3 BASF 3, 8, 11 United EFTA China Russia Japan South Korea Canada Australia Reachway 14 Germany –3.0 States Bayer 1, 5, 6 Johnson Matthey 2, 9 Refac 13 1999 EU-27 Imports 2006 EU-27 Imports 1999 EU-27 Exports 2006 EU-27 Exports Kleine und mittlere Unternehmen, weniger als 250 Mitarbeiter; Quelle: OECD Bayer Healthcare 6, 8 Kemira 6 Renapharma 6 Source: Eurostat © GIT VERLAG Source: Cologne Institute for Economic Research © GIT VERLAG Bayer Technology Services 8 Kinaxo 3 Renolit 6 Boehringer Ingelheim 1 Developments in the patterns of EU external trade with the U.S., In 2000, the EU members set the goal to invest at least 3 % KMG Chemicals 2 Roche 5 Borealis 15 EFTA countries, China, Russia, Japan, South Korea, Canada of the national gross domestic product for research & devel- Lanxess 4 Rohm & Haas 5 and Australia over the period 1999 to 2006 reflect the wider opment. To achieve this, the majority of the countries sup- Brenntag 2, 6 Royal Haskoning 3 Linde 6, 8 changes in the world economy. The most prominent of these port companies investing in R&D by tax benefits. In addition, Bristol-Myers Squibb 6 Rösberg 10 Liposonix 6 trends is that China has replaced the USA as the main source 21 OECD-countries support R&D in a similar way. BSEF 14 Sabic 11, 15 of EU imports in 2006, after a continual rise in imports from General tax benefits for R&D result in a better support oft Luminex 5 BYK-Chemie 11 Sagmel 6 China since 1999. SME’s rather then supporting special technological fields. Capnexi 6 Lyondell 14 Sanderling Ventures 1

Cefic 14, 15 Lyondellbasell 4, 6, 14 Sanofi 12

Celerant 11 Medicis 6 Shell 3 IMPRINT Siegfried 11 Chemito 6 Merck KGaA 6, 4, 5 Publisher: Dr. Roy Fox Christiane Rothermel The current price list is valid The publishing company is Ciech 5 Sigma-Aldrich Chemie 14 from 1 October 2007 granted the exclusive, space GIT VERLAG GmbH & Co. KG Tel.: +49 6151 8090 128 Tel.: +49 6151 8090 150 Skyepharma 3 [email protected] and content restricted right to Clariant 6 Roesslerstr. 90 [email protected] CHEManager Europe CONSULTING & EXECUTION arbitrarily use the unmodified 64293 Darmstadt appears 10 times in 2008. Coatex 6 Smithers Rapra 13 Wolfgang Sieß work/editorial contribution for Tel.: +49 6151 8090 0 Intern Tel.: +49 6151 8090 240 Print run: 15,000 all purposes for itself and for Sorbent 6 Linda Tonn Cologne Institute for Economic Research 16 Fax: +49 6151 8090 168 [email protected] (IVW Report businesses that have an inte- Tel.: +49 6151 8090 203 Stada 4 [email protected] Q1 2008: 17399 tvA) rest in the publishing company CSB-System 2 www.gitverlag.com Dr. Dieter Wirth [email protected] Fourth year 2008 as defined by company law as Standard & Poor’s 2 Tel.: +49 6151 8090 160 Subscriptions well as to transfer the right of Daiichi Sankyo 6 Managing & Publishing Director [email protected] Freelancers 10 issues 94,50 use to third parties. This right Stanford University 10 Dow Chemical 3, 5, 6 Dr. Michael Schön Dr. Sonja Andres incl. postage of use applies to both print and Dr. Birgit Megges  electronic media including the Sun Chemical 3 Anja Szerdi single copy 12,60 DSM 1, 6, 8 [email protected] plus postage internet and data banks/data Product Management Suncoat 6 Production Managers media of all types. Eastman 6 Dr. Michael Klinge Media Consultants Students receive a discount of GIT VERLAG GmbH & Co. KG 50 % upon presentation of a Süd-Chemie 6, 8 Tel.: +49 6151 8090 165 Thorsten Kritzer ECHA 13 Dietmar Edhofer (Management) valid certificate. Subscription [email protected] Tel.: +49 6151 8090 246 All names, designation, or Takeda 3, 6 orders can be canceled within [email protected] Sandra Rauch (Deputy) signs in this issue, whether EDF 3 1 week in writing. Dispatch Ensured Quality Claudia Vogel (Advertising) referred to and/or shown, Thermo Fisher 6 Editor-in-Chief complaints are possible only Miryam Preußer Mattias Funk (Layout) could be trade names of the Edwards Vacuum 6 within 4 weeks after publishing UCB 3 Brandi Schuster Tel.: +49 6151 8090 134 Elke Palzer, Ramona Rehbein respective owner. date. Subscription cancella- EIB 16 Tel.: +49 6151 8090 166 [email protected] (Litho) University of Massachusetts 10 tions are accepted 6 weeks [email protected] Eisai 6 Ronny Schumann Reprints before end of year. University of Wisconsin 10 Tel.: +49 6151 8090 164 Printed by Managing Editor Christine Mühl Echo Druck und Service GmbH Eisenwerke Düker 8 [email protected] Orginal Articles Serviceability in practice Uralita 6 Ana Wood Tel.: +49 6151 8090 169 Holzhofallee 25 – 31 Specially identified contribu- Elantas 11 ensured through inspection – Tel.: +49 6151 8090 255 Roland Thomé [email protected] tions are the responsibility of 64295 Darmstadt Valeant 5 [email protected] the author. Manuscripts should Elemica 1 for us the norm. Tel.: +49 6151 8090 238 VCI 15 [email protected] Subscription/Reader Service: be addressed to the editorial Editorial Tel.: +49 6151 8090 115 office. Instructions for authors Volume 4, June 2008 Elf Aquitaine 6 Wacker Biotech 8 Corinna Matz-Grund may be requested from the Dr. Michael Klinge [email protected] Tel.: +49 6151 8090 217 publishing company. We assu- Encysive 6 gempex – The GMP-Expert Werum 8 Tel.: +49 6151 8090 165 [email protected] me no liability for unsolicited, [email protected] Bank Account submitted manuscripts. Repro- Environ 3 www.gempex.com Wiley 10 Team Assistants Dresdner Bank Darmstadt, duction, including excerpts, is www.gitverlag.com EPCA 15 Wiley-VCH 10 Dr. Michael Reubold Lisa Rausch Germany permitted only with the per- Tel.: +49 6151 8090 236 Tel.: +49 6151 8090 263 Account No. 01715501/00, mission of the editorial office Printed in Germany Erikem 6 Wilkhahn - Wilkening + Hahne 15 [email protected] [email protected] Routing No. 50880050 and with citation of the source. ISSN 1861-0404 Eurostat 16 Zentiva 12

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