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Special Informex Edition |
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Message from the CEO
We are excited to bring to you this special edition of the Chemical Informer that we are publishing in conjunction with the 2012 INFORMEX show. CIS is eager to participate in this year’s event in New Orleans. We look forward to seeing you at Booth 2336.
CIS has always found INFORMEX to be a great venue for bringing together buyers and sellers of chemicals and the related products that support the industry. Of course, New Orleans is a great city to visit, and the Morial Convention Center is an ideal facility for hosting the 500+ exhibitors and 4,000+ attendees that are expected to participate.
Please stop by and visit us to learn about the exciting changes we are implementing at CIS for our database products. You can also get a first-hand look at our new e-sourcing tool that we will introduce at the show.
2012 is going to be a very exciting year for CIS and for our customers! We look forward to sharing our plans with you when you stop by Booth 2336. If you do not plan to attend INFORMEX, you can still learn more about our latest activities in this edition of the Chemical Informer.
See you in New Orleans!
Mega-trend: "Global Connectedness" By Dr. Helge Jordan
Throughout 2011, Swiss business newspaper "Finanz und Wirtschaft" ran a series of articles on global mega-trends. The topics included the rise of the middle class in emerging countries, agriculture, water, energy, IT connectivity, and raw material availability. Sourcing professionals need to understand the implications of these mega-trends on their businesses, and take them into consideration when building scenarios for sourcing strategies.
In addition to the above mentioned topics, global supply chain "connectedness" is a key area of
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interest. A recent article in the Wall Street Journal (Jan 11th; "Reinforcing the Supply Chain") talked about how natural disasters have sparked companies to evaluate the downsides of single sourcing, and to explore potential safeguards against such risks.
Global logistics group DHL has now released its first DHL Global Connectedness Index (GCI), a detailed country-by-country analysis of trade flows that connect the world. The study indicates that globalization is still not as advanced as most people believe, and that continued economic integration could spur global gross domestic product gains of five percent or more. GCI ranks 125 countries according to the depth and breadth of their integration into the world economy. The study documents that global connectedness has enormous room to expand, even among the most “connected” countries (www.dhl.com/gci).
The DHL report makes interesting reading for sourcing and supply chain professionals and provides a picture of how the countries they do (or intend to do) business with fare in global comparison.
SampleRite warning over illegally transported chemical samples
SampleRite, one of the UK's leading sample management companies, has raised concerns over the practice by some Chinese manufacturers of packaging and labeling small samples of hazardous chemicals as non-hazardous substances in order to avoid the additional costs of complying with International Air Transport Association (IATA) regulations.
With the majority of chemical samples being transported via passenger aircraft, the health and safety of airline employees and passengers is being put at risk, as well as those taking delivery of the samples. Anyone opening a package that they believe contains non-hazardous chemicals could be exposed to dangerous liquids, powders or fumes.
Today, many of the world's major chemical companies source from China, have operations in the region or outsource production to Chinese manufacturers so that they can
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compete in an increasingly price sensitive and commoditized market. Unfortunately, too many samples coming out of the Far East are being shipped under false pretences to save on costs says Bruce Percy, Commercial Director at SampleRite. "Our industry should stop turning a blind eye to these dubious practices. Everyone knows what is going on but there is too little being done to prevent it. It is not the couriers who are at fault, it is the chemical companies themselves who should demand that best practice is followed at all times, as should the customer who receives the sample. The issue is creating enormous confusion and compromising safety."
SampleRite is a professional sample management company with dedicated facilities in the UK and China. For more information go to www.samplerite.com.
Partnership with Lascaux Films
Chemical Information Services (CIS) recently announced a partnership with Lascaux Films, a leading film production company, to provide CIS clients with the opportunity to maximize their marketing and advertising efforts through the power of multimedia. Producing high quality advertisements, promotional videos and other materials with the help of Lascaux Films will allow companies to more effectively reach their targeted audience and promote their brands.
CIS clients will now be able to partner with Lascaux Films to create short videos on specific, thought-provoking industry topics or more traditional advertising content.
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Introduction of CIS MarketMaker™ powered by MarketMaker4
Chemical Information Services (CIS) is excited to introduce its new eSourcing tool, CIS MarketMaker™. This tool will enable the users of CIS’s DWCP database to output the results of their company searches directly to the CIS branded CIS MarketMaker™ eSourcing tool at the push of a button!
This new offering will allow CIS subscribers to move seamlessly from a shortlist of potential chemical and pharmaceutical vendors directly to an RFI, RFP or eAuction where they can conduct further sourcing activity without the need for manual intervention. CIS CIS MarketMaker™ will be available to users in Q2 2012.
CIS Welcomes New Team Member
David Novak joined CIS on January 16 as Vice President of Marketing and Strategy. David comes to CIS from Cash America where he was the manager of the corporate finance group and as such, was involved with financial analysis, merger and acquisition support and corporate budgeting and reporting. Previously he was with Citi Investment Bank and JP Morgan. David is a graduate of Southern Methodist University with a BBA in Finance.
DWCP NewsFlash
In 2011, over 1 million successful searches were performed on the DWCP leading our customers to millions of excellent contacts! The DWCP, like all of our products, is accessible on the ipad.
Last month we added 67 companies worldwide, which represents 7,3774 chemicals with additional producers.
To advertise with us or sponsor one of our events, please contact e.sims@chemicalinfo.com
2011 Big Year for Drug Approvals
The FDA approved 30 new drugs in 2011, the most in seven years. That higher rate is in part due to the submittal of better and more timely data by manufacturers. In addition, many of the drugs act in novel ways, which allows the FDA more flexibility in their evaluations. Advance consultations
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between the FDA and companies have also been helpful in speeding up the approval process. 2011 was also a big year for the approval of orphan drugs (11 out of the 30). These treatments are attractive because they come with extra patent protections, higher pricing and a streamlined review processes. This results in less emphasis on common diseases and highlights a growing need for government investment in research on less-profitable vaccines, antibiotics and drugs for more widespread health threats.
Sugar-Based Foam Insulation
Together, SES Foam and Imperial Sugar Co. have developed an open-cell, Class 1 sucrose-based spray foam insulation that meets the requirements of the U.S. Department of Agriculture’s BioPreferred program. According to the companies, SucraSeal is an energy efficient and sustainable alternative to petroleum-based insulation products. It has an R-value of 3.7 per inch, is VOC- and formaldehyde-free.
New Supercapacitor from Soot
Supercapacitors are used in electronic displays, sensors and other devices to rapidly build up and store energy. While the interest in flexible electronics has grown significantly, it has been challenging to produce a practical flexible supercapacitor. Researchers at Georgia Institute of Technology have developed a method for addressing this problem. They held a flexible carbon fabric in an ethanol flame for 30 seconds to cause the deposition of a thin layer of carbon nanoparticles on the surface. Manganese oxides nanorods were then sputtered on top of the nanoparticles. When attached to two electrodes, the supercapacitor stored 4.8 watt-hours of energy per Kg with a power density of 14 kilowatts/kg – enough to run small sensors or RFID tags.
Graphene Nanowiggles Appear to Have Interesting Properties
Researchers at Rensselaer Polytechnic Institute have used a powerful supercomputer to predict the properties of graphene nanowiggles, or segmented parts of graphitic nanoribbons. Nanowiggles are expected to have different magnetic and conductive properties and could allow the customization of graphene nanostructures with specific properties. Nanowiggles have been synthesized by Swiss scientists by assembling them one atom at a time.
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Graphene Quantum Dots Now Easy to Make
Scientists at Rice University discovered a way to convert inexpensive carbon fiber into graphene quantum dots in one step. The quantum dots are < 5 nm in size, and their size can be controlled by varying the temperature of the process. The dots are actually only two-dimensional, so the more accurate term for them would be graphene quantum discs. Typically, methods for producing graphene quantum dots take weeks and make only small quantities, but this new process is quick and produces large quantities.
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Tradeshows
Informex - New Orleans, USA February 14-17 BOOTH # 2336
ChemSpec - India April 26-27 CIS
Webinars
GenericsWeb Webinar
More information coming soon
Price of European MTBE Rises Dramatically
Tight supply of methyl tertiary butyl ether (MTBE) in Europe has driven prices up significantly (over 10 percent). This dramatic hike has affected ethyl tertiary butyl ether (ETBE) premiums, which have fallen, as demand is poor and buyers are unwilling to accept price increases.
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Westlake Fails in Attempt to Acquire Georgia Gulf
Georgia Gulf rejected the $1.02 billion (Euro 780 million) offer from Westlake Chemical to acquire all outstanding shares, saying it was “financially inadequate”. According to analysts, the offer was a strategic move for Westlake, but too low. The bid was a hostile one, as Georgia Gulf had already indicated in September 2011 that it wasn’t interested in being acquired by Westlake. Following the latest rejection, Westlake appealed to Georgia Gulf’s shareholders. It is expected by most analysts that Georgia Gulf will ultimately be acquired by Westlake or another buyer, but at a higher price.
Benzene Prices On the Rise
Increasing crude prices and planned maintenance shutdowns are combining with some unexpected production problems to drive up the price of benzene in Asia. Prices have reached five-month highs and are expected to continue to climb. Some buyers are looking for material from other regions in an attempt to avoid the higher prices. Prices have also risen in the U.S. in response to the conditions in Asia and in advance of contract negotiations. In
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Europe, prices have also risen on tightness and downstream users have expressed concern, with some styrene producers cutting back operating rates and buying spot material in expectation that it would be cheaper than producing it given the anticipated higher benzene prices.
European Debt Crisis has Implications for Global Chem Industry
The Eurozone financial crisis is impacting European chemical companies, and will likely affect chemical producers around the world. Nexant’s petrochemical and polymer margin index for Europe dropped over 40 percent in the fourth quarter of 2011, and GDP forecasts for the region have been lowered several times. Demand from key chemical customer industries is slowing, which will make it harder to pass on rising raw material costs, a necessity for companies to maintain profitability.
Economists generally agree that the Eurozone will fall into another recession, which will impact other regions. Furthermore, the uncertainty about the European financial situation is leading to economic hesitation throughout the world. According to the American Chemistry Council, the business climate is improving in North America, but the biggest risk to continued gains is a European recession and financial crisis. Even in Latin America, where reasonable growth is expected to continue, the European debt crisis will impact exports.
Smaller Acquisitions Continue Apace
Several acquisitions have either been completed or announced in the first month of 2012. Celanese completed its purchase of some emulsion product lines from Ashland for an undisclosed amount. Arkema finalized its acquisition of the alkoxylate business of Seppic, also at undisclosed terms. PPG completed its $149 million (Euro 115 million) purchase of Dyrup, and W.M. Barr purchased Microban.
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Announced deals include the acquisition of Bioreliance by Sigma-Aldrich Corporation for $350 million and the merger of Green Biologics and Butylfuel.
Court Decision appealing to CP Chem
Chevron Phillips Chemical received the verdict it wanted when Special Judge William Coleman overturned a $322 million award to Thomas Brown for his claim of developing asbestosis from working on drilling rigs.
Teva to Get New CEO
Teva CEO Shlomo Yanai will resign in May and be replaced by Jeremy Levin, who most recently was a senior executive at Bristol-Myers Squibb. Yanai is moving on “to a new chapter” in his life.
New CEO Chosen for DAK Americas
Jorge Young, currently executive vice president, will take over as CEO of DAK Americas when current head Hector Camberos returns to Argentina to run the company’s polyethylene terephthalate business in that country.
New CEO Named for Solvay
When current Solvay CEO Christian Jourquin retires in May 2012, he will be succeed by Jean-Pierre Clamadieu, who presently serves as the company’s deputy CEO.
Petrobras Appoints New Leader
When Petrobras CEO Jose Sergio Gabrielli leaves to pursue political office, he will be replaced by the company’s current energy director Maria das Graca Silva Foster.
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Lonza Replaces CEO Following Poor Financial Performance
Lonza CEO Stefan Borgas is being replaced following the company’s announcement of a 45.8% drop in net income compared to the previous year. Until a suitable candidate can be identified, chairman of the board Rolf Soiron will coordinate the management committee on an interim basis.
New CEO at Americas Styrenics
Americas Styrenics, a joint venture between Chevron Phillips Chemical Company and Styron that was formed in May 2008, has appointed Bradley Crocker as CEO, effective January 30, 2012. Bradley has previous experience at , Lawter as COO, Nalco Chemical, International Paper and Momentive Specialty Chemicals.
Dubai Betting Big on Solar
Dubai is investing $3.26 billion in the Mohammed bin Rashid Al Maktoum Solar Park, which is expected to produce 1,000 megawatts (MW) when fully complete in 2030. It will begin generating power in 2013 from photovoltaic cells with a capacity of 10 MW. The solar park is part of the Dubai Integrated Energy Strategy 2030, a plan for investment in diverse energy sources.
Novartis, Takeda Announce Big Job Cuts
As part of a restructuring effort aimed to reduce costs in advance of lost revenue following patent expirations, Novartis will cut an additional 1,960 jobs in the U.S., which is in addition to h 2,000 cuts already planned in the U.S. and Switzerland. The latest cuts are largely in sales, but about a quarter are administrative positions. The company won’t be closing its Nyon/Prangins plant as planned however, as part of a deal with local authorities and employees that reduces taxes and eliminates pay increases.
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Takeda, meanwhile, will cut 2,100 jobs in Europe and another 700 jobs in the U.S. (a total of 9 percent of its workforce) in an attempt to consolidate its operations and increase its competitiveness following its acquisition of Nycomed. European units will be merged or sold. About 1,200 of the positions are in Germany
J&J to Pay $158M to Settle Texas Suit
J&J agreed to pay $158 million to settle claims that it fraudulently marketed its Risperdal anti-psychotic drug. The settlement will resolve claims that it defrauded the state’s Medicaid program by marketing the drug for uses not approved by US regulators.
Novartis Plants Come Under FDA Scrutiny
A Novartis plant in Nebraska was recently shut down for maintenance and upgrades. The shutdown came right after a warning letter from the FDA and was followed closely by recalls of some OTC drugs made at the plant. Other plants were also cited in the warning letter. All together these facts add up to difficulties for Novartis. The FDA has issued an advisory about the recall, indicating that some opiod painkillers may have contaminated the products. Analysts predict that losses from the plant shutdown will add up to about $1.1 billion, not including lost sales of animal health products.
Bio-based Chemicals Remain Strong in 2012
Despite economic uncertainty, the bio-based chemicals sector appears to still be attractive to investors in 2012. With the decrease in subsidies to the biofuel and solar sectors presenting real challenges to firms in these businesses, venture capitalists in the clean-tech field are looking for alternatives, and finding renewable chemicals an attractive option. Major consumer firms including Coca-Cola, PepsiCo, Procter & Gamble, Unilever, Nestle, Danone and chemical companies such as SABIV, Rhodia and DSM are also getting involved in this space.
In addition, several bio-based chemical producers are ramping up to commercial scale, which will only increase further interest. Bio-based polyethylene terephthalate (PET) is already manufactured at large scale. Bio-based isoprene and isobutene are available at the demo scale. According to Lux Research, the capacity for bio-based chemicals increased from 1.9 million tonnes in 2006 to 3.8 million tonnes in 2011, and is expected to reach 9.2 million tonnes by 2016. From 2011 to 2016, revenues are expected to more than double from $9 billion to $19.7 billion. Other compounds on the path to commercial production include: paraxylene, monoethylene glycol, ethylene and ethylene oxide, acrylic acid, succinic acid, butanol and derivatives and m#topany more.
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Alliances Target Bio-Based Chemicals
Two joint ventures have been formed for the production of bio-based chemicals. Genomatica and Novamont will produce butanediol (BDO) from renewable feedstocks in a 40,000 lb/year plant in Italy. Novamont will own a major stake in the JV and will use the BDO for production of biopolymers. Novamont is also considering a second bio-BDO plant in the U.S. where it is building a biorefinery in partnership with Polimeri.
Rhodia and Avantium have also entered into a partnership to develop new bio-based polyamides for use in a number of different applications. The bio-based polyamide deal expands on existing relationships around other polyamide products.
BASF Makes Biotech Exit from Europe
BASF is moving the headquarters of its Plant Science division from Germany to the U.S., including all R&D activities. No further work will be directed at the European market, and plant sites in Germany and Sweden will be closed. The decision was based on the lack of acceptance of plant biotechnology in Europe. In the future, its activities will be targeted at the North and South American markets.
Roche Makes Bid for Illumina
Rhodia made a $5.7 billion (Euro 4.39 billion) all-cash hostile bid for all outstanding shares of Illumina, a U.S. genetic research equipment maker. The bid comes after Illumina resisted participation in any discussions with Rhodia. The offer will be made directly to shareholders. Roche believes the acquisition will enable it to meet the growing demand for genetic solutions and speed up its ability to get DNA sequencing into clinical and routine diagnostics.
Rising Butadiene Costs Affecting Asia Rubber Producers
Surging prices for feedstock butadiene are driving synthetic rubber manufacturers in Asia to cut back their operations. Margins have diminished drastically, and rubber producers are unable to pass on price increases to their customers. Manufacturers in South Korea and China have either shut down plants completely or cut back operating rates.
Eastman to Buy Solutia
Eastman Chemical has offered to pay $4.7 billion (Euro 3.6 billion) to acquire Solutia. The deal is supported by the directors of both companies. Eastman s making the move in an attempt to
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broaden its geographical profile and increase its growth. Eastman will take on approximately $3.5 billion in new debt to finance the transaction.
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Pun of the Month
If you're not part of the solution, you're part of the precipitate!
Quotes of the Month
“Good communication is as stimulating as black coffee and just as hard to sleep after." (Anne Morrow Lindbergh)
“The trouble with life isn't that there is no answer, it's that there are so many answers." (Ruth Benedict)
“One of the best ways to persuade others is by listening to them.” (Dean Rusk)
“A smile is the lighting system of the face and the heating system of the heart.” (Anonymous)
“Science is the great antidote to the poison of enthusiasm and superstition.” (Adam Smith)
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What makes a leaf change color?
Just like the colors found in some plastics and coatings, the color in plants is due to the presence of pigments. The amount and ratio of different porphyrins, carotenoids, and flavonoids and the acidity of the environment determine the color of a plant. Chlorophyll (porphyrin) is green; carotene, lycopene and xanthophyll (carotenoids) are yellow, orange, and red; and flavone, flavonol and anthocyanin (flavonoids) are yellow, red, blue purple and magenta. Chlorophyll is produced in response to sunlight, so less can be found in plants when the periods of daylight are shorter (i.e., fall). It also decomposes, so eventually a plant may have very little or no chlorophyll. Light is not needed to produce carotenoids, however, so they are always present in the plants. They also don’t decompose very quickly. Anthocyanin (a flavonoid) changes color with pH, so it can exist as red, blue purple or magenta depending on soil conditions. It requires light for production, so sunny days will give result in more of these colors.
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