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Message from the CEO |
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During the past year there have been approximately 1,120,000 successful DWCP searches leading our customers to millions of excellent contacts. Their counterparts in Sales made nearly 32,000 successful searches in Pathfinder and WBDU finding thousands of new potential customers. CIS continues to be the industry leader in providing trusted, accurate and timely product and producer information to the chemical and pharmaceutical industries! Thank you for your support and continued use of our products.
As we turn the corner into 2012, CIS has a number of exciting initiatives that we will be bringing to you over the next few months. First, our number one focus will always be on maintaining accurate and complete information on the DWCP database. As always, we appreciate you taking the time to utilize our “Source to Source” capability to perform those updates and to help us ensure the highest level of accuracy of the database and accurate representation of your company’s information. Second, CIS is on the cusp of introducing new features and functions for all of our products over the next several quarters. The first major enhancement will be the addition of categories to the DWCP database in March of 2012. This upgrade will enable users to enjoy an unsurpassed search capability, as well as equip them with a dynamic new research and sourcing tool.
Soon, CIS will unveil an on-line auction capability for our clients, allowing direct bidding and procurement of chemicals. This addition represents an important step in CIS’s evolution into a full business intelligence and services company focused on meeting the needs of the procurement professional in the chemical and pharmaceutical industries. I will continue to provide you with more information on this new capability, which will be formally introduced early in the second quarter of 2012.
Also in 2012, we will be launching our new CIS Advertising Portal, which will allow our advertisers to view and measure the impact of their banner and video advertising in real time. To date, we are seeing our advertisers achieve very impressive results with “before versus after” views increasing by 107%, email contacts increasing by 325%, web clicks increasing by 200%, downloading of contact information increasing by 800% and the printing of contact details increasing by 100%. These dramatic results point to our ability to place advertisers directly in front of their targeted audience. We will continue to offer banner ads linked to specific product searches in the DWCP and expand on the newly available video delivery capability, webinars and thought leadership pieces.
The coming year will be a very active one for CIS, with the company participating in trade shows in Spain, Dubai, China, Germany and the United States during 2012. As always, we look forward to seeing each of you at these shows, so please plan to stop by our booth for an update! |
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Note from Dr. Helge Jordan -
Sustainability: Putting a price tag on environmental impact |
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In November 2011, PUMA, the sport lifestyle company, disclosed that raw material production accounts for the highest relative impact on Greenhouse Gas Emissions (GHG) and Water Consumption within PUMA’s operations and supply chain.
The environmental impact of GHGs, water use, land use, air pollution, and waste generation due to the operations and supply chain of PUMA was valued at Euro 145 million in 2010. PUMA is the first company to publish such an Environmental Profit & Loss Account (EP&L).
PUMA has also introduced a sustainability scorecard and has set targets for sustainable packaging usage and reduction of utilities consumption - not only at PUMA itself, but also at Tier 1 suppliers.
PUMA’s EP&L statement definitely sets a new performance bar for corporate environmental reporting. It waits to be seen whether or not it will become a benchmark practice for other companies to follow. |
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The entire CIS team is available to support you should you ever have any questions. |
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Famous Quotes |
"All the art of living lies in a fine mingling of letting go and holding on."
(Henry Ellis) |
"Believe that life is worth living and your belief will help create the fact."
(William James) |
"Discipline is the bridge between goals and accomplishment."
(Jim Rohn) |
"A great pleasure in life is doing what people say you cannot do."
(Walter Bagehot) |
"A light heart lives long."
(William Shakespeare) |
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Imponderable |
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Why is salt put on icy roads? |
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Salt is put onto icy sidewalks and roads to melt the ice and keep it from refreezing. When salt is added to water, the freezing point is lowered because there are foreign particles dissolved in it. This phenomenon is known as freezing point depression. When table salt (NaCl) is put on an icy surface outside, the ice can melt at temperatures down to -9°C (15°F). NaCl is not the best salt to use, however. Calcium chloride (CaCl2), which dissolves into three ions in water (one calcium and two chloride), provides more particles in the water and thus lowers the freezing point further. Other commonly used salts include ammonium sulfate, calcium magnesium acetate, calcium carbonate, magnesium carbonate, magnesium chloride, potassium acetate, potassium chloride and urea. |
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Companies |
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Sunoco Plans to Shut Marcus Hook Refinery |
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The main processing units at Sunoco’s Marcus Hook, PA refinery will be shut permanently due to weakening of the fuel market. The company is looking for buyers and also considering other possible uses with third parties, such as a terminal or ethylene plant. Sunoco will increase the utilization rate at its Philadelphia, PA refinery, but will shut it permanently as well, if it cannot find a buyer for that facility. The closure of the Marcus Hook refinery will impact Braskem America, which operates a polypropylene (PP) plant that was acquired from Sunoco in April, 2010, and sources a major portion of its propylene from the refinery. Braskem also recently purchased two PP plants from Dow Chemical. |
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AstraZeneca Cuts 1,150 U.S. Sales Positions |
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AstraZenecea will reduce its U.S. sales by approximately 24 percent, or 1,150 jobs, by the end of February, 2012. These cuts are in addition to 400 reductions announced in October, 2011. The cost of the reductions will total between $50 and $100 million and will be charged to the fourth quarter. The company indicated that the job eliminations were in response to growing competition and pricing pressures from generics for its blockbusters that are coming off-patent. |
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Big Job Cuts at Cargill |
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As a result of the continued weak economy, Cargill will reduce its workforce by about 1.5 percent, or 2,000 positions, over the next six months. Cuts will be largest in poorer-performing businesses. |
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Petrobras, Braskem to Make Big Investments in Brazilian Refineries |
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Petrobras will invest $4.49 billion (Euro 3.41 billion) on several refinery projects in 2012 to increase hydrotreating capacity by 56 percent and residual conversion capacity by 18 percent. The investments are in response to company expectations of rising demand, which will require increased imports of gasoline. Braskem, meanwhile, will invest approximately $5 billion in Brazil, with a focus on polypropylene and polyethylene plants. The company also has yet to determine its level of investment in the PetroquimicaSuape polyester and polyethylene terephthalate resin facility being built in northeast Brazil by Petrobras. |
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Petronas Planning Petchem Plants |
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Discussions with several companies including Shell, Exxon Mobil, Dow Chemical, Mitsubishi Corp. and Itochu Corp. are ongoing as Petronas considers constructing petrochemical plants at its $20 billion refinery complex in Malaysia. The company is expected to choose its partners by mid-2012 and have already moved to the basic engineering and design stage. The Refinery and Petrochemicals Integrated Development (Rapid) project will produce petrochemicals for sale in Myanmar, Bangladesh and parts of the subcontinent. |
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Ranbaxy Settles with the FDA |
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Ranbaxy will pay $500 million to resolve civil and criminal liabilities and has committed to strengthening its procedures and policies to comply with pharmaceutical industry standards. The consent decree consists of a plan of action for the company to attain compliance. The payment accounts for 15 percent of the company’s market value, but opens the door for Ranbaxy to begin exporting products to the U.S., which it has not been able to do since the FDA barred imports in 2009. The consent decree does still need to be approved by a U.S. district court in Maryland. In response to the hefty fine and anticipated lower earnings, Ranbaxy owner Daiichi Sankyo Co. reduced executive pay by 5to 30 percent for the next six months. |
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Pun of the Month |
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Two atoms are walking down the street. One atom says to the other, "Hey! I think I lost an electron!" The other says, "Are you sure?" "Yes, I'm positive!" |
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Chemistry Novelties |
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Viral Hydrogen? |
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Researchers at MIT engineered the M13 bacterial virus to bind to indium oxide and zinc porphyrin, which then formed a wire-like shape capable of efficiently extracting oxygen from water. Specifically, the wire-like shape enabled the viruses to form a scaffold with the Indium catalyst and zinc pigments perfectly aligned for catalyzing the reaction. The researchers believe the pigment captures the sunlight and transfers its energy down the length of the virus. They also hope to develop a similar system that can extract hydrogen from water. The goal is to have a durable, self-sustaining prototype device capable of producing oxygen and hydrogen from water within two years. |
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Molecular Charms |
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If you know someone who really likes chemistry and also likes to wear jewelry, and you are looking for a unique gift, consider the products offered by molecularmuse . The earrings, necklaces and bracelets are all made of charms in the shapes of molecules. One necklace, for example, has the charms of the three neurotransmitters serotonin, dopamine and acetylcholine. Other pieces include the structures of oxytocin, resveratrol and estrogen. |
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Elemental Names |
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The new ultra heavy elements 114 and 116 received their new names recently, when flerovium and livermorium were selected by the International Union of Pure and Applied Chemistry. Flerovium (Fl) is derived from the name of Soviet nuclear physicist Georgiy Flerov. Livermorium (Lv) is named after California's Lawrence Livermore National Laboratory, which collaborated on the discovery of the element. The two names will be finalized after a five-month long public comment period. |
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Sorting on the Nanoscale |
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Researchers at the University of Buffalo have constructed nanotubes from “bottle-brush molecules” that have negatively-charged inner walls that act as molecular cages for positively-charged nanoparticles. The tubes can be formed in different sizes to trap molecules of different sizes. Potential applications include separately different-sized quantum dots or proteins |
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Sugar-Based Bio-Batteries |
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Sony has developed a set of enzymes that convert glucose into power. Shredded paper, a source of cellulose, is broken down by enzymes into glucose, and then another set of enzymes convert the sugar into hydrogen ions and electrons. The electrons flow through a circuit, producing electricity, while the hydrogen ions combine with oxygen to form water. Currently the bio-battery can run a digital music player but is not powerful enough to replace typical batteries. |
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Germanium Could Give Boost to Lithium Batteries |
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Researchers at Brookhaven National Laboratory have developed electrodes derived from porous germanium oxide that hold up to three times as much charge as conventional graphite electrodes. The electrodes are made of germanium suboxide, which is produced via reduction of germanium dioxide, coated onto copper foil. The very small size of the nanoparticles keeps them from breaking down under mechanical stress, its micrometer-sized pores provide space for swelling of the particles and its amorphous structure allows for expansion and contraction without cracking. |
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Fine and Specialty Chemicals |
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Ecolab/Nalco Merger Finalized |
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Following approval by the shareholders of Ecolab and Nalco, the $8.3 billion (Euro 6.1 billion) merger of the two companies was finalized. |
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New Pigment Plant Coming to U.S. |
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Rockwood Holdings will build a $115 million (Euro 86.3 million) iron oxide pigments plant in Augusta, Georgia. The facility is the first new pigment plant to be constructed in the U.S. in 35 years, according to the company. The plant is expected to be operational in the first half of 2012. At that time, Rockwood will close a plant in St. Louis and shut down part of a plant in Beltsville, MD. |
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Novozymes Gets Win in Patent Suit |
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Danisco was found willfully guilty of infringing Novozymes’ patent number US 7,713,723 covering the use of alpha-amylases in the biofuel and starch industries. The judge must affirm the decision before it is final, and it is possible that Danisco will appeal. The lawsuit was filed by Novozymes in May, 2010. Novozymes also won a 2007 lawsuit against Danisco regarding an enzyme used in ethanol production, and was awarded $15.3 million. |
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Pharma |
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Pharma Takes Lessons from the Auto Industry |
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In response to the challenges of the current drug markets, the pharmaceutical industry is looking in surprising places for new ideas. In 2009, AstraZeneca sought advice from Jaguar Land Rover, and recently GlaxoSmithKline sought assistance from the Formula One engineers at Porsche. Both were looking for new ideas on streamlining and cost cutting. What is the connection? The car industry has had to restructure many times to remain competitive, yet still remains highly innovative. The pharma industry is facing a time of reorganization and also must remain innovative to survive. In addition, the car industry outsources much of its production – a trend that is occurring in the pharma industry today. |
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Novartis Hit with FDA Warning Letter |
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Novartis’ generics units Sandoz was the subject of an FDA warning letter stating concerns about failure of corporate management to address manufacturing violations. Specifically, the warning is in regard to GMP violations at three Sandoz facilities in North America identified in April/May, June and July/August inspections, most of which were related to reporting, documentation and similar issues. |
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Samsung, Fujifilm Invest in Pharma |
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In April 2011, Samsung Group and Quintiles Transnational Corp. set up Samsung Biologics for the manufacturer of drugs. Recently, Samsung Biologics and Biogen Idec agreed to set up a joint venture based in South Korea to develop and produce biosimilars. Samsung will have an 85% share of the $300 million venture. Samsung Group intends to invest $1.9 billion (won 2.1 trillion) in biopharmaceuticals with the goal of generating won 1.8 trillion annually from biopharmaceuticals by 2020.
Separately, Fujifilm Holdings has formed several partnerships with healthcare and biopharmaceutical companies to offset the weakening demand for its photo film paper business. Recently, the company announced that it will form a joint venture with Kyowa Hakko Kirin to produce biopharmaceuticals and it will buy U.S. ultrasound and cardiograph equipment manufacturer SonoSite for approximately $753 million. |
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FDA Warning Letters on the Rise in 2011 |
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In 2011, the FDA issued more warning letters than it has in previous years, and a higher portion of those letters went to foreign plants than at any time previously. The increase is due to the greater numbers of agents in the field conducting inspections. In addition, a mandatory legal review is no longer required, so letters can be issued directly by district offices. The FDA is also now setting deadlines for responding to warning letters and has made post-warning-letter/post-recall follow-up plant inspections a priority. |
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2011: The Year of the Drug Shortages |
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Shortages of all types of drugs, from oncology medicines to anesthetics and vaccines, plagued the pharmaceutical industry in 2011. Shortages of a greater number of drugs in the past year than any previous year were the result of a combination of manufacturing and financial issues, including FDA compliance problems, reduced numbers of producers and shortages of raw materials. President Obama stepped in with an Executive Order requiring the FDA to solve the problem. Both Congress and the Government Accountability Office have investigated the issue. Generic drug manufacturers responded by agreeing to work with the FDA to develop a process for notifying the agent when a shortage can be expected. |
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Business and Finance |
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November Chem and Plastics Industry Job Losses Surpass 2,000 |
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U.S. Department of Labor Statistics indicated that more than 2,000 jobs were eliminated in the chemical and plastics industry in November, 2011. That month, the total U.S. chemical industry workforce reached 781,900, down 1,400 from October 2011. The plastics industry lost 900 jobs to reach 628,800. |
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ICIS Names Top 40 Power Players |
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ICIS identified the top 40 leading executives in the chemical industry for 2011. At the top of the list were (1) Jim Gallogly, CEO of LyondellBasell; (2) Andrew Liveris, Chairman, President and CEO of Dow Chemical; (3) Ben Van Beurden, Executive Vice President of Shell Chemicals; and (4) Jim Ratcliffe, Chairman of Ineos. Others that made the top 40 include Mark Rohr, Chairman-Elect and CEO-Elect of Celanese; Patrick Gruber, CEO of Gevo; Leonid Mikhelson, Chairman and CEO of Novatek; David Constable, CEO of Sasol; Ton Buchner, CEO-Elect of AkzoNobel; Catia Bastoli, CEO of Novamont; David Bradley, CEO of Nexeo Solutions and Robert Hansen, President and CEO of Dow Corning. |
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Four Men Found Guilty of Swindling LyondellBasell Business |
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The U.S. Attorney’s Office found Alireza Etessami, Gustavo Gimeno, Denny Martinez and Guillermo Nones, all of the Lake Huron Chartering and Panamanian company, guilty of participating in a kickback scheme that cost Houston Refining, a subsidiary of LyondellBasell, $82 million (Euro 62 million). Others already arrested in the case include former LyondellBasell employee John Barnes and international oil traders Bernard Langley and Clyde Meltzer. |
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South American Tariffs on Asian Products Likely |
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Tariffs of as much as 35 percent could be placed on as many as 100 products, including chemicals, textiles and capital goods, coming into South America from Asia. The tariffs have been approved by South American trading bloc Mercosur, which has members operating in Brazil, Argentina, Paraguay and Uruguay. Therefore, if any member proposes that a 35 percent tariff be placed on a certain item and no other member opposes the tariff, then it will take effect and last through December, 2014. |
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Argentina Chem Industry Faces Uncertainty |
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Chemical manufacturers in Argentina will be faced with the elimination of certain subsidies and higher tariffs in 2012, as an austerity measure designed to fight inflation and balance the country’s budget. Subsidies for electricity, natural gas and water took effect December 1, 2011. Tariffs on electricity are increasing at the same time, as are taxes and medical insurance in the provinces and the cost of city services in Buenos Aires. It is questionable whether or not manufacturers will be able to pass on prices to the consumer, as price increases are monitored and sometimes prevented by the government. |
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Green Chemistry |
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Coke Committed to Bioplastics |
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Coca-Cola Co. is investing millions in three bio-based chemical producers that support the bioplastics industry. Virent (Madison, WI) has a demonstration plant producing BioForm X, a bio-based paraxylene, and expects to have commercial quantities available in 2015. Gevo (Englewood, CO) manufactures renewable isobutanol, a starting material for paraxylene, via fermentation, and is commercializing its first plant. Avantium Research and Technology (Netherlands), has developed a YXY catalytic method for the production of a new bioplastics – PEF – that can be used to make 100 percent bioplastic bottles, and started a pilot plant in December, 2011. Coca-Cola expects to have all of its polyethylene terephthalate (PET) bottles replaced with bioplastics by 2020. |
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Bio-Based Raw Materials for Rubber Gaining Traction |
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Goodyear, Michelin and Lanxess have entered into partnerships with biotechnology firms such as Genencor, Gevo, Amyris and Genomatica for commercialization of bio-based rubber intermediates including isoprene, isobutene, and butadiene. Their interest is driven by tight supplies of natural and synthetic rubber at a time of growing demand. While volumes of these bio-based chemicals will remain small over the next several years, their impact further in the future could be significant if significant commercial-scale production can be achieved at a cost-competitive price. |
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Verdezyme Produces Pilot Quantities of Bio-Based Adipic Acid |
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Verdezyme opened its pilot plant in Carlsbad, CA for the production of adipic acid using yeast to covert non-food based vegetable oils. Capacity information was not revealed. The company indicated that its process provides bio-based adipic acid at a cost lower than adipic acid obtained from petrochemical sources. |
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Bio-Butanol Attracting Attention |
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Due to uncertainties in the global supply of propylene, companies such as Eastman Chemical, Rhodia, LANXESS, Sasol, Toray, and Synthos are looking to producers of bio-based butanol as an alternative source. Eastman acquired TetraVitae Bioscience, which is developing a fermentation-based n-butanol process, with bio-based acetone as a byproduct. Rhodia, now owned by Solvay, is partnering with Cobalt Technologies to commercial bio-based n-butanol in Latin America from sugarcane bagasse. Other companies working on bio-butanol processes include Cathay Industrial Biotech, Green Biologics and Jilin Jian New Energy Group. Bio-isobutanol producers include Gevo, Butamax, Global Bioenergies and Butalco. |
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Big Growth Anticipated for Bioplastics |
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According to Ceresana Research, the global bioplastics market will grow at 17.8 percent per year and total $2.8 billion in 2018. Europe accounted for 48 percent of global demand in 2010, but Asia-pacific and South America will take the lead in terms of both production and consumption in the next eight years. Starch-based plastics currently lead in sales, followed by polylactic acid, and biodegradable plastics which accounted for approximately 92 percent of bioplastics sales in 2010. Non-biodegradable plastics will, however, account for over 47 percent of the market by 2018. |
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Intermediates |
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Ethylene Dichloride Prices Hit New Lows in Europe |
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At $180-$200/tonne (Euro 139-154/tonne), recent ethylene dichloride spot prices in Europe are lower than they have been in the last thirty-four months. Sellers are not offering material on the merchant market at these low prices, so little spot material is available. Nearly all ethylene dichloride is used to produce vinyl chloride monomer, which is affected by the downstream polyvinyl chloride market. |
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Personnel |
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Amgen to Get New CEO |
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Kevin Sharer, chairman and CEO of Amgen, will retire and be replaced by current president and COO Robert Bradway in May, 2012. Bradway joined Amgen in 2006 as vice president of operations. He will become the company’s fourth CEO. |
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General |
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Brazil to Sue for Oil Spill Damages |
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Brazil plans to file a $10.7 billion (Euro 8.2 billion) lawsuit against Chevron and other companies for lack of planning and environmental management in response to a November 7, 2011 oil spill of an estimated 3,000 bbl in the Atlantic off the coast of the country. Chevron indicated that it had responded responsibly and stopped the flow of oil within four days, and continues to clean up any residual oil. |
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Sasol Looking at U.S. Cracker |
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South African energy and chemicals company Sasol will carry out a feasibility study for a possible $ 3.5 - $2.5 billion cracker and associated derivatives production in Lake Charles, LA. The decisions followed a pre-feasibility study that confirmed the opportunities for developing “sustained competitive advantage,” according to the company. A key factor is the growth of the shale gas industry in North America. Other firms including Dow Chemical, Chevron Phillips Chemical, Braskem and Shell are also considering new crackers in the U.S. |
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BP, Cameron Settle Gulf Oil Dispute |
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BP and Cameron International Corporation have agreed to discontinue legal claims against each other relating to the Deepwater Horizon oil spill in the Gulf of Mexico. Cameron also agreed to pay BP $250 million (Euro 193 million) as part of the settlement. The money will go into a $20 billion trust that BP set up to meet claims resulting from the accident. MOEX Offshore 2007 (a business unit of Mitsui & Co.), Weatherford and Andarko Petroleum Company have also settled with BP and agreed to pay a portion of the costs for environmental restoration in the Gulf. |
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