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March 2010
  Feature Article

DuPont Emerging Stronger From Economic Crisis

Science-based products and services company DuPont is emerging stronger from the global economic crisis. During his recent remarks at the Morgan Stanley Basic Materials Conference, Senior Vice President and CFO Nicholas C. Fanandakis said the company is well-positioned for sustainable growth after a round of actions in 2009.

The company used the economic downturn to change its course, with its focus aimed at delivering superior growth for its shareholders through science-based and customer-driven solutions, carefully prioritized investments, strict accountability, and industry-leading productivity.

The swift actions taken by DuPont during 2009 resulted in several significant results. It maintained its R&D investment at $1.4 billion during the economic crisis and introduced more than 1,400 new products – up 60 percent over 2008. Secondly, it delivered $1.1 billion in fixed cost productivity and $1 billion in working capital productivity and produced $3.4 billion in free cash flow. DuPont continues with its commitment to delivering approximately 20 percent compound annual earnings growth for the 2009-2012 period and expects to generate about 10 percent top-line compound annual growth for the same period. Finally, the company plans to capture $1 billion in fixed cost productivity and $1 billion in working capital productivity gains during the same time frame.
 

 

 Famous Quotes

 

“To command is to serve, nothing more and nothing less.”
Andre Malraux

“One of the tests of leadership is the ability to recognize a problem before it becomes an emergency.”
Arnold H. Glasow

“He that is of the opinion money will do everything may well be suspected of doing everything for money.”
Benjamin Franklin

“Take care of those who work for you and you'll float to greatness on their achievements.”
H. S. M. Burns

“Character is higher than intellect. A great soul will be strong to live as well as think.”
Ralph Waldo Emerson

“The chief condition on which, life, health and vigor depend on, is action. It is by action that an organism develops its faculties, increases its energy, and attains the fulfillment of its destiny.”
Colin Powell

“We cannot defend freedom abroad by deserting it at home.”
Edward R. Murrow
 


 


 
 Imponderables


How Does Acetylsalicylic Acid Work?

 

Acetylsalicylic Acid (ASA) is a wonder drug and probably one of the world’s best-known medicines. Used to treat headaches as well as other aches and pains, this common remedy is known by the Bayer AG trademark - ASPIRIN®.

The history of ASA is as follows. Throughout the ages, the general population knew that chewing the bark of the white willow plant would bring relief from aches and pains. Scientists through the eighteenth and nineteenth centuries A.D. isolated the chemicals which delivered the relief. Salicin and a derivative, salicylic acid, both had the same properties. The chemicals are based on a hexagonal “benzene ring” with two groups added; one is a hydroxyl group (formula –OH) and the other is a carboxylic acid group (-COOH). Initially, these chemicals were problematic, causing substantial digestive issues, so looking for a way to render them less harmful became imperative. When salicylic acid was reacted with another chemical to change the hydroxyl group on the benzene ring to an acetyl group (-OCOOH), the result was a less harmful chemical – acetylsalicylic acid (ASA). It was named ASPIRIN® by Bayer Pharmaceutical, the first company to make it commercially.

While ASA has been used since the turn of the century, how it works was not discovered until the early seventies. Understanding the biology of a common headache is the first step. Within each of the nerves running over the scalp and in the face, lie pain receptors. These receptors serve as channels, which carry pain messages from the nerves to the brain. Pain messages are received and registered in the brain with the result being a headache. An enzyme called cyclooxygenase-2 is produced in large quantities in damaged cells. Chemicals called prostaglandins are made by the enzyme and send a message to the brain that part of the body is in pain. In addition, they cause the damaged area to release fluid from the blood, causing swelling and inflammation.

Aspirin molecules attach themselves to the cyclooxygenase-2 enzyme. The enzyme is then blocked from creating chemical reactions, namely the production of prostaglandin. Without the prostaglandin, pain messages cannot be sent along the neuropathways to the brain. The outcome is less pain is felt and areas do not inflame and swelling is reduced.

 


 
 Companies

 

Chemical Information Services Offers Next Webinar Session

 

 

 

In its continued commitment as global provider of the most accurate, trusted industry information available, Chemical Information Services is pleased to offer this next installment in its partnership webinar series entitled "Chemfinet - Procurement Solutions for Custom Chemicals and APIs".

International Specialty Chemicals & Pharmaceuticals, Inc. (ISC&P) is a specialist in the sourcing of fine and specialty chemicals, active pharmaceutical ingredients (APIs), veterinary ingredients and organically certified extracts. They represent companies in Europe, Asia, and the United States on an exclusive or semi-exclusive basis. Recently ISC&P launched its generic pharmaceutical division where it markets formulation development, clinical trial manufacturing, dossier licensing, and bio-availability/bio-equivalence studies.

The complimentary, live session will take place on Tuesday, March 23, 2010 at 10:00 a.m. CST. For more information, please visit the CIS website at www.chemicalinfo.com and click on “Webinars”.

 

 


 

CABB AG Receives ISO 14001 Certificate

 

Pratteln, Switzerland-based fine chemicals producer, CABB-AG has successfully completed the process required to obtain Certification for Environmental Management according to ISO 14001. This is the official recognition for a well-established procedure, specifically the successful and careful execution of environmental protection.

Since 1996, the company has had a certified quality management system in place according to ISO 9001, with environmental protection elements included from the start. In 2003, a change to a process-oriented, integrated quality management system made environmental protection a top priority and one of the main processes in the regulation work.

As with all the other processes in the quality management system, the internal environmental protection governs a continuous improvement process. Due to permanent adaptation and adjustment on current standards, all requirements for ISO 14001 were already met and a recent audit was completed.

 

ExxonMobil Selects Air Products’ Equipment for Texas Project

 

Air Products will provide its nitrogen recovery unit (NRU) as well as cryogenic gas processing equipment for ExxonMobil’s Hawkins, Texas project. Air Products will deliver the NRU plant equipment later this year with operations at the ExxonMobil operated facility expected to start in late 2011. The new plant will process approximately 140 million standard cubic feet per day of gas. It will recover natural gas for pipeline sale and produce nitrogen for re-injection into the reservoir to enable enhanced gas and oil recovery.

As a supplier of gases and equipment to the enhanced oil recovery industry for nearly 50 years, Air Products has considerable expertise in both nitrogen rejection and injection. The company commissioned its first NRU in 1962 and has broad natural gas processing experience through its NRUs, its liquefied natural gas heat exchange business and its global helium recovery interest.

 

       
     

AMPAC Partners with Inabata & Co., Ltd


American Pacific Corporation subsidiary, AMPAC Fine Chemicals LLC (AFC) and Inabata & Co., Ltd. (Inabata) of Japan have entered into business collaboration. The partnership will provide AFC with access to the Japanese pharmaceutical market for its API manufacturing technologies while naming Inabata as AFC’s exclusive agent, representing the company throughout Japan. Inabata has extensive knowledge of the Japanese pharmaceutical marketplace and a strong track record of successful pairing between client needs and technologies. AFC has a solid reputation in the industry for its expertise in Simulated Moving Bed Separation (SMB) technology, Energetic Chemistry, HPAPIs, as well as a demonstrated capability for producing APIs at commercial scale.  
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Verenium Corporation Introduces Xylathin™ at Conference

 

Verenium Corporation recently introduced a new enzyme at the RFA National Ethanol Conference. The company presented Xylathin™, a highly-active enzyme designed to substantially improve the economics of fuel ethanol production from cereal grains. The enzyme breaks down xylan, a compound found in such cereal grains as wheat, rye, and barley, producing a significant reduction in mash viscosity. Xylathin™ is faster-acting, allowing producers to shorten retention times and reduce enzyme dose. In addition, the enzyme reduces grain water retention, lowering grain drying energy requirements. Xylathin™ is effective over a wide pH and temperature range, providing ethanol producers with both greater operational flexibility and substantial processing cost reduction.

Verenium and its distribution partner, Add Food Service GmbH, began selling the enzyme directly to wheat ethanol producers in the first quarter of this year. The main markets for Xylathin™ are Europe and Canada, which represent the largest global regions that process wheat into fuel ethanol.

 

   


 

 

W.R. Grace Publicizes Sustainability Strategy

 

As a part of its overall sustainability strategy, W. R. Grace & Co. has targeted reducing the energy intensity of its operations by 20% per pound of production by the year 2017.

Grace will use 2007 as the base year for measuring progress and will report its progress annually. In 2007, the company produced close to 2 million tons of products and had CO2 equivalent emissions of 1.1 million tons. To realize its goal, Grace will need to have emissions equal to or less than 2007 levels in 2017 while still meeting its business growth strategies.

The new sustainability strategy focuses on maximizing the company’s growth while minimizing its effect on the environment. Grace is striving for improved productivity and a competitive cost structure while delivering improved products to its customers.

 


 
 Personnel

 

Mark Oberle Named Senior Vice President - Corporate Affairs for Celanese

 

Leading global chemical company, Celanese Corporation has appointed Mark Oberle as its Senior Vice President – Corporate Affairs. Mr. Oberle joined Celanese in 2005 as Vice President of Investor Relations. He governed global communications and public affairs in 2006. Prior to joining the company, he served as Director of Investor Relations for Navistar International Corporation. In his new role, Oberle will retain oversight for investor relations, global communications, and government affairs. He will also assume responsibility for the company’s strategy development process, including regional oversight for Europe and Asia.


 

Daschle to Head DuPont Committee

 

Former U. S. Senate Majority Leader Tom Daschle has joined an advisory panel at DuPont. He will head a newly-formed group researching ways to meet growing demands for agricultural products. The goal of the committee is to determine the best ways to help farmers worldwide provide food, fiber, feed, and fuel in the coming decade. DuPont expects to receive recommendations from the committee in March of 2011.

 


 

Polman Joins Dow Board of Directors

 

Paul Polman, CEO of Unilever PLC and Unilever N.V., has been elected to the Board of Directors at Dow. Mr. Polman has significant experience in both the chemical and downstream consumer product industries. Prior to his position with Unilever, he served in top positions at both Nestlé and Procter & Gamble. In addition to his position at the helm of Unilever, Polman also serves as President of the Kilimanjaro Blind Trust and Chairman of Perkins International Advisory Board. He is a member of the European Round Table, The International Business Council of the World Economic Forum, the Swiss American Chamber of Commerce, and the World Business Council for Sustainable Development.

 


 
 Business/Finance

Solvay Closes Sale of Pharmaceutical Business to Abbott

 

 

In an agreement worth over $7 billion, Solvay recently finalized the sale of its pharmaceutical business to Abbott. To accelerate the implementation of its sustainable and profitable growth strategy, Solvay will refocus its activities and intends to reinvest sale proceeds in strategic projects and high value-added activities in chemicals and plastics. The company will continue its geographic expansion into regions offering growth potential. In addition, it will continue with the development of activities and new products with a low energy footprint and those which reduce the cyclicality of its portfolio of activities.

The sale provides for the transfer at closing of all employees of the pharmaceutical business as well as provisions limiting future exposure of Solvay to its former pharmaceutical activities.
 

 

 

Sherwin-Williams to Acquire Sayerlack

 

 

The Sherwin-Williams Company has signed an agreement to acquire Sayerlack, the Industrial Wood Coatings business of Arch Chemicals, Inc. Trading under the Sayerlack brand name and headquartered in Pianoro, Italy, Arch Industrial Wood Coatings is a leading coatings innovator in the cabinets, furniture, and joinery markets.

Sayerlack operates several manufacturing sites across Western Europe and is one of the largest manufacturers of industrial wood coatings. Founded in 1954, Sayerlack’s acquisition follows Sherwin-Williams’ 2008 acquisitions of Inchem and Becker Powder Coatings, adding to their growing Global Chemical Coatings Division.

The Sherwin-Williams Chemical Coatings Division operates 13 manufacturing and 79 facility locations throughout the U.S., Canada, Mexico, China, and Europe.

 

 

Ferro to Restructure European Manufacturing Operations

 

In order to reduce costs further within its European manufacturing operations, Ferro Corporation announced additional restructuring initiatives. In addition to a multi-year restructuring effort that was announced in 2006, cost-reduction activities funded through Ferro’s equity offering in November 2009 are included in the initiatives.

Ferro Corporation, a leading global supplier of technology-based performance materials, will discontinue manufacturing dinnerware frit materials in Castanheira, Portugal, as a final step in consolidating high-volume frit production into its Almazora, Spain, manufacturing site. Plastics manufacturing in Portugal will also be consolidated into its existing Almazora, Spain, plastics production facility.

As a result, approximately 125 positions will be eliminated by August 2010. Ferro’s metal oxides production in Portugal will not be affected by this restructuring initiative. The initiatives are expected to save approximately $5 million annually for the Cleveland, Ohio based company.

 

 

Mosaic Selling Minority Interest to Vale

 

Mosaic agreed to sell its minority stake in the Brazilian venture Fertilizantes Fosfatados S.A. (Fosfertil) and Fertifos Administracao e Participacao S.A. (Fertifos) to a subsidiary of Vale S.A. Based in Plymouth, Minnesota, Mosaic also granted Vale the option to buy its Cubatao fertilizer operations in Brazil.

The purchase price for Mosaic’s 20 percent stake in the Brazilian venture along with the Cubatao operations is expected to exceed $1 billion. This agreement is subject to the closing of Vale’s purchase of Bunge Group’s phosphate mines and production facilities in Brazil. The sale of Mosaic’s Cubatao operations will follow the closing of its stake in Fosfertil and Fertifos.

 


 
 Fine & Specialty Chemicals
   

Albemarle®Partners with PharmaCoreSaflex®

 

Baton Rouge, Louisiana-based Albemarle Corporation has joined forces with PharmaCore to provide custom manufacturing capabilities for customers with projects requiring high volume capacity. PharmaCore selected Albemarle’s custom manufacturing business unit, Fine Chemistry Services (FCS), to expand their expertise as a custom synthesis provider.

The agreement will provide for a seamless technology transfer from PharmaCore to Albemarle, providing long-term, higher-volume capacity for PharmaCore customers’ pharmaceutical projects. Albemarle’s network of manufacturing assets provides Active Pharmaceutical Ingredients (APIs) and advanced pharmaceutical intermediate production in a broad range of scale and chemistries. The new partnership will allow PharmaCore to transfer the learned technology to its full-scale manufacturing.
 

   
       

 
  Pharma


Celldex Receives Sublicense Income Payment from TopoTarget

Celldex Therapeutics, Inc. announced it has received $3 million from TopoTarget A/S in the form of a sublicense income payment because of the co-development and commercialization agreement between TopoTarget and Spectrum Pharmaceuticals, Inc.

TopoTarget granted Spectrum a license to commercialize and co-develop Belinostat, a histone deacetylase (HDAC) inhibitor for the treatment of cancer. According to the transaction, in exchange for an upfront cash payment of $30 million, co-development and commercialization are to take place in North America and India, with an option for rights in China.

CuraGen Corporation had sold the Belinostat rights to TopoTarget. Celldex then acquired CuraGen in October 2009, and is now entitled to 10% of any sublicense income received by TopoTarget for Belinostat.

 


 

   

 

FDA Approves Roche’s Rituxan/MabThera

 

Roche announced the U.S. Food and Drug Administration’s (FDA) approval of its chemotherapy treatment. Rituxan/MabThera (rituximab) plus fludarabine and cyclophosphamide (FC) is Roche’s chemotherapy treatment for people with previously untreated (first-line) or treated (relapsed or refractory) CD20-positive chronic lymphocytic leukemia (CLL).

The most common type of leukemia in adults, CLL accounts for approximately 30-40% of all forms of leukemia in Western countries. With an overall incidence of four per 100,000, CLL is currently considered incurable. Controlling the disease by managing symptoms and extending progression-free survival (PFS) is the aim of the treatment.

PFS and overall survival are shown to be positively affected when patients with CLL are treated with Rituxan/MabThera plus chemotherapy rather than those treated with chemotherapy alone.

Roche is headquartered in Basel, Switzerland, and is the world’s largest biotech company providing differentiated medicines, in-vitro diagnostics, tissue-based cancer diagnostics, and diabetes management.
 

   


 

         

 
 Agrochemicals

Converted Organics Woodbridge Plant to Increase Processing

 

In order to enhance its ability to process food waste at its Woodbridge, New Jersey manufacturing facility, Converted Organics Inc. has ordered additional state-of-the-art manufacturing equipment and is conducting new testing.

Approximately 100 tons of food waste is processed per week at the Woodbridge plant. By the end of the first quarter of this year, Converted Organics is expected to process 175 tons of food waste per week into high-quality organic fertilizer.

Based in Boston, Massachusetts, Converted Organics relies on a network of hauling partners, including IESI Corporation, Waste Management of New Jersey, Filco Carting Corporation, and Premier Food Waste Recycling, to provide high-quality food waste to be processed into all-natural, organic soil amendment and fertilizer products.

 

       
   

 

Dow AgroSciences and Victorian Government Form Alliance

The Victorian Government and Dow AgroSciences have formed a research alliance that is expected to create 30 jobs in the Victorian agricultural biotech field.

The agreement with the wholly-owned subsidiary of The Dow Chemical Company will assist Victorian farmers in meeting the growing global demand for food through development of new varieties of crops that are drought tolerant, disease tolerant, have improved yields and enrich human health benefits.

First formed in Atlanta at BIO2009, the alliance became the largest international agricultural biotechnology alliance undertaken by the Victorian Government and further secures Victoria’s status as one of the top five biotechnology hubs in the world.

 

   
       

 
 Commodity  Chemicals

LyondellBasell to Cease Polypropylene in Italy

 

LyondellBasell Industries is preparing to stop production of polypropylene (PP) at Terni, Italy. As the global economic situation continues to affect polypropylene demand and the resulting marketing environment, it is no longer economically viable to keep facilities like the one in Terni operating. LyondellBasell expects to meet projected customer demands for PP with product provided by other facilities in Italy. The company has begun the employee consultation process regarding the permanent shut down of the site to determine the appropriate path forward for the employees at the site. The Terni plant currently has about 120 permanent employees and has a nameplate capacity of 255 KT per year. 
 


 


 
   Paints & Coatings
   

Ecology Coatings Enters Agreement with WS Packaging Group

Ecology Coatings, Inc. has entered into a commercialization agreement with WS Packaging Group, Inc., based in Green Bay, Wisconsin.


One of the largest printing and label converting operations in North America, WS Packaging will purchase Ecology Coatings’ EcoQuik™ coatings for labels and packaging products manufactured by the company. EcoQuik™ coatings provide improved water and chemical resistance, increased productivity, lower energy usage, and the use of solvent-free materials.

Ecology Coatings, Inc. is headquartered in Auburn, Michigan, and is a leader in the development of nanotechnology-enabled, ultraviolet-curable advanced coatings.
 

 

 

   


 


 
 Plastics

The Plastics Group Distributes to SABIC Customers

 

The Plastics Group of America (TPG) recently began direct distribution to SABIC customers. SABIC had been an authorized distributor of TPG’s Polifil® reinforced thermoplastic resins when doing business as GE Polymerland. However, after nearly two decades, TPG will begin distributing directly to those customers resulting in their ability to order in smaller quantities and receive faster order processing.


Based in Woonsocket, Rhode Island, TPG is a leading supplier and compounder of thermoplastics resins.

 


 

   

 

A. Schulman Introduces Invision® 3570

 

A. Schulman has announced the introduction of Invision® 3570, a high-clarity, high-gloss, non-stress whitening olefin.

The enhanced polyolefin resin can be directly co-extruded onto polyethylene resins, allowing co-extruded sheets to match the appearance of painted plastics when combined with the high-clarity capstock resin. Invision® 3570 provides a cost-effective decorative and durable thermoformed product enhancing the appearance and performance of high molecular weight polyethylene (HMWPE) at a lower cost and lighter weight than acrylonitrile butadiene styrene (ABS) and thermoplastic polyolefin (TPO) sheet or acrylic and fluoroacrylic laminated sheet.


A. Schulman is headquartered in Akron, Ohio, and is a leading international supplier of high-performance plastic compounds and resins.

 

   


 


 
 Food/Flavoring

Symrise Strengthens Presence in Russia and CIS Region

 

Global flavor and fragrance provider, Symrise, is expanding its already well-established presence in Russia and the CIS region. The company recently set up a fully integrated production site near Moscow. With production expected to commence in the second half of this year, the plant will be established on an existing site and will initially focus on supplying dry blends to customers located in the region.

While Symrise has been an industry leader in the Russian market for some time, establishment of its own Moscow production site further increases the company’s position. It will not only support the global customers in the region but will also allow the company to penetrate the local market further. The new site complements Symrise’s established marketing, sales, sensory and consumer insights capabilities in the country as well as the local development and supplication labs that the company set up in 2008.
 

 


 

         

 
 General

ACC Hosts Workshop on Risk Assessment

 

More than 150 science-policy, regulatory and academic researchers gathered recently to discuss the next generation of risk assessments and modernization efforts which will impact the chemical industry’s and government’s management of chemical products in commerce. The American Chemistry Council (ACC) hosted the special workshop titled “Navigating Obstacles Towards Modernizing Risk Assessment,” through the Long Range Research Initiative (LRI) program.

LRI provides a unique platform where stake holding sectors work together to enhance the manner in which chemicals are managed in commerce. Industry, environmental groups, policymakers, regulators, the science community, and animal welfare groups all collaborated to develop a comprehensive chemical management law that places the safety of the American consumer first while harnessing the advances made in science and technology to develop new products.

Through the LRI program, the chemical industry promotes and advances the development of new scientific methods that help regulators, industry and the public comprehend potential risks from chemicals. Government, university and other research institution laboratories perform the work independently, with the findings reported by the researchers, regardless of the impact on the industry.
 


 


 
In This Issue

 
Featured Article
 
 
Famous Quotes
 
 
Imponderables
 
Companies
 
 
Personnel
 
Business/Finance
 
 
Fine & Specialty Chemicals
 
 
Pharma
 
 
Agrochemicals
 
 
Commodity Chemicals
 
 
Paints & Coatings
 
 
Plastics
 
 
Food/Flavorings
 
General
 
 

 
  






 

 

 
 
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