6/2015 JUNE IINNTTEERRNNAATTII NNAALL Economy Production Cheap oil gives scope to THE NEWSPAPER FOR THE Recent developments and chemical companies to help current trends in the chemical CHEMICAL AND cut production costs plant manufacturing industry LIFE SCIENCE MARKETS Pages 6 – 12 Pages 13 – 22 © Kovalenko Inna - Fotolia.com © christian42 - Fotolia.com Harvest Season After a Period of Intensive Investments, Perstorp Enters Next Development Phase Perstorp has been a well-known name in chemistry for over 130 years. the history of Perstorp and opens up a new platform for us, in parallel Founded in 1881 as a producer of acetic acid and later formalin, the Swed- Be part of with the others that we have. ish company went through an eventful 20th century. In the past two So, we are concluding this quite something decades, Perstorp has gone through some ownership and portfolio changes and, intensive investment period and moving on into a period of reaping today, is focusing on specialty chemicals for the coatings & resins, plastics, feed & bigger. the fruits from those investments. So food, fuels and synthetic lubricants markets. Having joined Perstorp as President from a CAPEX point of view we sort and CEO in September 2013, Jan Secher is leading the company, which reported of passed the peak and are enter- BUSS CHEMTECH 2014 revenues of € 1.2 billion, through its next stage of development. Michael ing into more of a cash-generative EICKHOFF period going forward. KWE Reubold spoke with him about the most recent developments and his future TRIPLAN growth strategy for Perstorp, his experiences from prior engagements, and his You said that you are now enter- VENTURIS IT ing into a cash-generative period. views about sustainability and the chemical industry’s public image. What is your strategy to lead Per- storp through this next phase? Join us at Achema CHEManager International: The into our caprolactones capacity and 15-19. Juni, Halle 9.1, Stand D 66 most recent period at Perstorp is product development, secondly into J. Secher: Given that we have invested www.kresta-industries.com characterized by significant in- a new plant for neopentyl glycol as much as we have over this four-, vestments and the development of in China that we started up a year five-year period, the focus now is sustainable products. Could you and a half ago, and thirdly into our definitely on organic growth. In par- briefly update us on the current new butene-based oxo platform in allel with these investments we have N ewsflow situation of the company? Stenungsund in Sweden with signifi- done smaller bolt-on acquisitions. cantly increased capacity for high- For instance, in 2011, we bought M&A-News: J. Secher: We are currently concluding performance cost-effective plasti- the pentaerythritol business from Alexion is paying $8.4 billion to a very interesting phase in which we cizers, but also other products like Ashland in the US, and last year acquire its compatriot Synageva. have been investing quite heavily in 2-propylheptanol or valeric acid for we acquired the penta and calcium Monsanto is set to press ahead with certain areas of our technology port- other key application areas such as formate businesses from Chemko in the targeted takeover of Syngenta. folio. During this four- to five-year surfactants and synthetic lubricants. Europe. Jan Secher, period we have invested in round This investment into oxo chemicals President and CEO, Perstorp More on Pages 3 and 9 ▶ numbers 200 million euros – firstly is the single-largest investment in Continues Page 4 ▶ Pharma: Johnson & Johnson plans to seek regulatory approval for more than 10 new drugs up to 2019. DuPont Wins Battle with Activist Shareholder BASF to Sell Businesses to Siegfried Actavis will have to continue selling its Namenda IR drug for treatment DuPont has emerged bloody According to some reports, re- BASF has announced that it of Alzheimer’s type dementia. tail shareholders – who hold about but apparently unbowed will sell its custom synthesis More on Page 7 ▶ a third of the company’s capital – from its battle with activist business, part of its Nutrition rather than institutional investors Investments: Perstorp has inaugurated its new shareholder Nelson Peltz and his $11 voted overwhelmingly for the Du- & Health division, and parts of its cur- oxo plant at the Stenungsund site billion hedge fund Trian Fund Manage- Pont slate. Analysts said, however, rent active pharmaceutical ingredients in Sweden. that Kullman‘s open dialog with big ment, which owns an estimated 2.7% (APIs) business to Zofingen, Switzer- shareholders, including Vanguard, W.R. Grace and Chevron plan to in- of the US chemical group’s capital. Ellen J. Kullman, CEO, DuPont State Street and BlackRock, was in- land-based Siegfried Holding. Dr Rudolf Hanko, CEO, Siegfried vest $135 million in a hydroproces- strumental in the win. sing catalyst plant and additional Ahead of the meeting, two proxy alumina facility in the US. Preliminary results from the DuPont ance. This had raised fears within advisory firms, including Institu- Following the divestment, for which The transaction, still subject to More on Pages 17 and 18 ▶ annual general meeting on May 13 DuPont that the moves would de- tional Shareholder Services (ISS) an enterprise value of €270 million consultations with employee repre- indicated that shareholders ap- stroy its innovation platform. and Glass Lewis & Co, had backed has been named, BASF said it will sentatives and approval by regula- People: proved all 12 of management’s can- Reports said DuPont management one or more of the Trian-proposed focus on products for which it has a tory authorities, also includes pro- Wayne T. Smith has been appoin- didates, while Peltz and his nomi- had unsuccessfully tried to broker candidates. leading market position. duction sites in Minden, Germany; ted chairman and CEO of US-based BASF Corporation. nated candidates fell short. a compromise earlier this year, by DuPont said it spent $15 million Siegfried will acquire APIs such Evionnaz, Switzerland and Saint- The Trian principal had sought nominating one of Trian‘s board can- on its shareholder campaign, with as ephedrine, pseudoephedrine and Vulbas, France. All affected employ- More on Page 23 ▶ four seats on the DuPont board, didates although not Peltz himself. Trian’s cost for the battle pegged caffeine, with annual sales of around ees will be offered transfers. including one for himself. He had In the end, commentators said at slightly more than half that. In a €270 million, while BASF will retain A syndicate of Swiss banks will proposed to split the company, while the victory, though narrow, was nev- statement, Trian said, “We are proud its excipient portfolio and selected handle financing of the handover, 9 1 87 cutting costs, increasing efficiency ertheless a huge one for DuPont‘s of the role we played as a positive APIs, such as ibuprofen, omega-3 fat- and following completion, Siegfried 7 hlt · and improving corporate govern- board and CEO Ellen Kullman. change agent at DuPont. (dw) ▪ ty acids and polyethylenglycol (PEG). plans to issue a hybrid bond for par- a tial refinancing. ez elt b Through the acquisition, the Swiss g company “will reach the critical size nt G· E to play a leading role in the supplier PA market as a recognized partner for D post · NenNgEi nPehearrimnga.p Wlaen hise alpn pinhtaerrmnaatcieountaicl aclo cmompapnayn siepse cbirailnisge dp riond puhcatsr mtoa m arket tChEeO pRhuadrmolfa cHeauntikcoa.l Iti nadlusos t“rdy,e”m soanid- e Focused ess by providing flexible, compliant and future-proof solutions. We have close strates the growth potential for the m · Pr pharma taoll 2d,e0d0i0c aptreodf etsos isounpaplso drteinligve oriunrg c ugslotobmale krns ogwlolbeadlglye a anndd o bne slot cparla scittiecse.s , Siegfried Group,” he said. ei Michael Heinz, BASF managing h n ei engineering board member with responsibility W 9 for the Performance Products seg- 6 Please visit us at ACHEMA: Hall 3.1, booth F57 4 9 ment, which includes the Nutrition 6 4 · & Health division, said the sale is in 6 5 line with BASF’s strategy of actively 0 11 managing its portfolio and will fur- F H · P NNE Pharmaplan in Central Europe: Germany +49 6172 8502 100, Switzerland +41 61 307 9670 ther sharpen the focus of the Perfor- C mance Products segment on growth V France +33 2 37 88 7950, Belgium +32 2 359 2140, www.nnepharmaplan.com Y and high margin core businesses. E L WI (dw) ▪ chemanager-online.com/en M A R K E T S & C O M PA N I E S Page 2 CHEManager International 6/2015 C O N T E N T DECISIVE INFORMATION THE PORTAL AND NEWSPAPER FOR THE EUROPEAN CHEMICALS AND PHARMACEUTICAL MARKETS nnnnnn Front Page The Future: a Patient-centered Distribution Network 12 2015 Facility of the Year Awards Category Winners 20 - - - - - - - - -eeeeee Camelot´s Survey Will Give Good Insight into Trends of the Danielle Hould und Renée Smith, ISPE - International Society for rrrrrrrrr Harvest Season Pharma Logistics Industry Pharmaceutical Engineering ////// eeeeeeeeemmmmmm After a Period of Intensive Investments, Perstorp Enters Next Andreas Gmür and Constantin Reuter, Camelot Development Phase Preparing for Serialization 20 ggggggggg Interview with Jan Secher, Perstorp Multi-layer Machine and Software Concept Offers the oooooo Production 13 – 22 aaaaaaaaa Highest Safety for Pharmaceutical Packaging Markets & Companies 2 – 7 Daniel Sanwald, Bosch Packaging Technology cccccc nnnnnnnnn Mega Projects and Complete Packages 13 ...... New Openings for Oil and Gas Chemicals 6 Recent Developments and Current Trends in the Where Cleanliness Becomes a Challenge 21 aaaaaaaaaeeeeee Cheap Oil Gives Scope to Chemical Companies to Help Chemical Plant Manufacturing Industry From Outsourcing to Industry 4.0: ISPE Discusses the m Cut Production Costs Klaus Gottwald, German Large Industrial Plant Manufacturers´ Group a.co mmmmmmmmmnnnnnn Sean Milmo Future of Pharmaceutical Manufacturing oli Interview with Dr Thomas Zimmer, International Society for Nmedia/fot eeeeeeeeelililililili Chemistry & Life Sciences 8 – 12 FWoer aEt&hCe rCionmg Tphanroieusg Fhle Mxibarlek eTet cShtnoormlosg y Can Make the 14 – 15 Pharmaceutical Engineering (ISPE) © nnnnnn Difference between Success and Failure Seeing Is Believing 22 hhhhhhhhh Steven Kratsis, AspenTech ‘A Right to Play and a Right to Win’ 8 Visualization Techniques in Process Engineering oooooo Chemtura´s Organometallics Specialties Business is a ccccccccc Dieter Mewes Focal Point of Future Growth Modelling and Simulation 14 – 15 Interview with Alan Swiech, Chemtura Organometallic Specialties Computer Models Reduce the Need for Real-World Testing in chemanager - Chemical Process Engineering People · Publications 23 online.com /en Protecting Environment and Yields 9 Dechema Innovative Crop Science Helps Optimize Crop Yields Sustainably Oliver Kinkel and Michael Willome, Clariant Sophisticated Process Technology in Biogas Plants 16 At A Glance 24 Gas Measuring Devices Assure Process Flow and Gas Quality Enriching the Microbiome 10 www.gitverlag.com Tobias Rassenhövel and Linda Rudolph, Union Instruments BioConsortia Indentifies and Develops Teams of Microbes that Help Boost Crops’ Yield and Survival New Challenges Demand New Processes 18 Index 24 Interview with Dr Marcus Meadows-Smith, BioConsortia Process Intensification Addresses Pressures on Cost, Raw Materials, Is Big Data the Next Big Thing? 11 Energy and Environmental Issues Vir Lakshman and Mareike Domin, KPMG Dechema Imprint 24 CU Chemie Uetikon BASF Acquires Lanxess Perrigo Acquires Patheon‘s Sold to Novacap Polyisobutene Knowhow Mexican Operations Private equity investor Equistone buyout in November 2011. In the in- BASF has agreed to acquire the (MM PIB) and highly reactive PIB Former US-based generics produ- tion will serves as “an ideal entry Partners Europe has sold its ma- terim, the company has grown into polyisobutene business of compa- (HR PIB) will not be affected by the cer Perrigo, now headquartered in point” into the softgel sector which jority shareholding in German fine a global player with annual sales triot chemical producer Lanxess for arrangement. Ireland, has acquired the Mexican it has eyed for some time. chemicals and pharmaceutical in- revenue of around €40 million and an undisclosed sum. The two com- With more than 75 years of expe- operations of contract drug devel- Papa said Perrigo sees itself as gredients manufacturer CU Chemie around 135 employees. panies said the deal concerns for rience in producing polyisobutylene opment and manufacturing services “uniquely positioned” to maximize Uetikon to French chemicals pro- “Since taking a shareholding in the most part intellectual property with different molecular weights, provider Patheon, based at Durham, the potential of the former Patheon ducer Novacap. Novacap is major- CU Chemie Uetikon, we have spe- for a new, innovative technology BASF claims to offer the broadest North Carolina in the US. business as it can leverage its own ity-owned by Paris-based private cifically enhanced and expanded the to produce high molecular weight range worldwide. Perrigo said it expects the acqui- Mexican operations to drive growth investment company Ardian, which management team and have invested polyisobutene (HM PIB). Under the Martin Widmann, senior vice sition for $34 million in cash to be and value for customers and share- is active in various industry sectors. in a sustainable strategy for growth,” terms of the transaction, Lanxess president of BASF’s global business immediately accretive to its 2015 holders. Based at Lahr, near the Swiss said Philippe Stüdi, Equistone’s man- will produce the new HM PIB for unit Fuel and Lubricant Solutions, adjusted per-share earnings after Perrigo is in the process of ac- border, CU Chemie Uetikon special- aging director, Switzerland. BASF in its existing facilities un- said acquiring the Lanxess technol- the exclusion of estimates for intan- quiring Belgium‘s Omega Pharma izes in custom synthesis of complex “Since the acquisition in 2011, der a long term toll manufacturing ogy will result in enhanced security gible amortization and transaction- for €2.48 billion, excluding debt, and multi-step intermediates and phar- Equistone has consistently given agreement, and BASF will market of HM PIB supply as it provides the related costs. is at the same time fighting a hos- maceutical substances, supplying us valuable input that has helped the products under the “Oppanol” basis for a long term oriented sus- CEO Joseph C. Papa said the ad- tile takeover bid from Netherlands- leading global pharmaceutical com- drive our growth,” said CU Chemie trademark. tainable growth with high quality dition of Patheon will provide “many based drugmaker Mylan. panies from its cGMP multi-purpose Uetikon CEO Thomas Seeler. “As the The Ludwigshafen chemical giant products for a broad range of ap- benefits” for Perrigo, adding that his Mylan itself is being pursued by production facilities. new owner, Novacap will now be said its other PIB offerings, includ- plications. (dw) company also believes the acquisi- Israeli generics giant Teva. (dw) ▪ Equistone acquired a majority able to build on this foundation in ing medium molecular weight PIB ▪ shareholding in the fine chemicals order to conquer new market seg- producer as part of a management ments.” (dw) ▪ J&J Settles Risperdal Lawsuit Dow Finds Buyer for Agrofresh for $7.8 Million Solvay Completes Sale of Food Packaging Maker US pharmaceutical giant Johnson In 2012, a, jury in Arkansas’ Pu- Refrigerants to Daikin In a deal set to close in the third Agrofresh was one of the first & Johnson has agreed to pay $7.8 laski County ruled that the company, quarter. Dow Chemical plans to sell businesses put up for grabs by Dow million to settle a lawsuit over the through its Janssen Pharmaceuti- Closing a transaction announced in business unit toward selective high its Agrofresh food-packaging busi- CEO Andrew Liveris in an asset sale marketing of its antipsychotic drug cal subsidiary, committed medicaid late January, Solvay has completed value-added segments in the growing ness to Boulevard Acquisition, the now expected to generate revenues Risperdal to doctors in the US state fraud and violated a state law in its the sale of its German-based refrig- automotive and electronics markets. public investment vehicle of Avenue of around $11 billion. of Arkansas. The company said the labeling and marketing of Risperdal. erant activities and pharma propel- Headquartered in Seoul, South Capital, for a total consideration of Under pressure from activist settlement did not constitute an ad- The jury’s $1.2 billion fine im- lants to Daikin of Japan. Korea, Special Chem with €850 around $860 million. shareholder Daniel Loeb and his mission of wrongdoing. posed on Johnson & Johnson was The sale, which includes all of the million in sales annually and 3,100 Boulevard has agreed to pay Third Point hedge fund, Dow re- According to the newspaper Ar- later overturned by the Arkansas Belgian group’s Special Chem activi- employees worldwide, encompasses $626 million in cash and 18.4 mil- cently also agreed to sell its chlo- kansas Democrat-Gazette, which Supreme Court. ties based at Frankfurt, Germany, Solvay‘s Special Chemicals, Rare lion of its own shares. Dow will rine business to Olin Corp. for about reported on the court filing, $2 mil- Risperdal, first approved by the and the transfer of about 75 em- Earth Systems global business units initially hold a stake of about 40% $4.2 billion. It now says the move lion will go to a Texas law firm that FDA to treat schizophrenia in 1993, ployees to Daikin, is part of the plan as well as the fluorine business of its and Boulevard investors will own will cost up to 1,750 jobs. (dw) represented Arkansas in the lawsuit has been linked by some to serious to refocus the newly created global Aroma Performance unit. (dw) ▪ around 60%. ▪ filed more than seven years ago. side effects. (dw) ▪ chemanager-online.com/en M A R K E T S & C O M PA N I E S CHEManager International 6/2015 Page 3 Alexion Paying $8.4 Billion Lanxess Realignment Brenntag Buys Spanish Industrial to Acquire Synageva Progressing Rapidly, CEO Says Chemicals Distributor US-based Alexion Pharmaceuticals is in Lexington, Massachusetts – have The three-phase realignment pro- partners and “will report on further Germany’s Brenntag has acquired said the acquisition “perfectly com- paying $8.4 billion to acquire com- already approved the takeover. Alex- gram initiated by German chemical steps in the second half of 2015.” Quimicas Meroño, a distributor of in- plements Brenntag’s regional distri- patriot rare disease specialist Syna- ion said it has lined up $3.5 billion producer Lanxess in 2014, following Lanxess’ figures for the first dustrial chemicals based near Carta- bution network in western Spain.” geva BioPharma. The deal expected in financing from Bank of America the return of former chief financial quarter show sales “nearly stable” gena, Spain, with effect from May 13. “With Quimicas Meroño,” Beck- to close in mid-2015 has raised con- Merrill Lynch and J.P. Morgan. officer Matthias Zachert to the Co- at €2.038 billion (€2.043 billion) The Spanish distributor with 2014 mann added, “Brenntag will gain siderable interest because Snyageva Synageva reported a loss of near- logne-based company as chief exec- and EBITDA pre-exceptionals al- sales of €12.7 million has a strong access to various key European ac- as yet has no products on the market. ly $60 million for the first quarter utive, “continues to progress rapid- most 12% higher at €229 million. focus on logistics, blends and stor- counts and additional growth oppor- The price tag, which includes of 2015, while generating $927,000 ly,” Zachert said in a conference call The positive results, which Zachert age services for industrial customers. tunities, especially in key industry $115 in cash and a portion of Alex- in royalty revenue. However, the to present first-quarter 2015 results. said resulted not only from external Karsten Beckmann, CEO Brenn- sectors such as Food and Oil & Gas.” ion stock for each Synageva share, biotech firm’s pipeline of drugs in Cost savings projected for the effects but from the company’s own tag Europe, Middle East and Africa, (dw) ▪ represents a premium of about development is said to be promising. quarter materialized, especially as realignment efforts, “show that we 136% to the $95.87 closing price of One of its top prospects is Kanuma, regards administrative and selling are on the right track.” Synageva immediately before the which has been granted priority re- cost reductions outlined in the first For 2015 as a whole, manage- deal was announced, putting the view by the US Food and Drug Ad- phase of the program, the CEO said. ment has increased its guidance AkzoNobel Completes Sale of total per-share price at about $226. ministration. Lanxess is now well into the sec- and now expects EBITDA pre-excep- Alexion, which manufactures So- The drug is aimed at treating ond phase of the scheme aimed at im- tionals to be in the range of €820- Paper Chemicals to Kemira liris, a drug approved to treat the lysosomal acid lipase deficiency, a proving operational competitiveness. 860 million. The CEO said full-year rare, life-threatening blood disorder disease that causes the buildup of Under the plan, it is realigning its pro- sales for 2015 could be lower than paroxysmal nocturnal hemoglobinu- fatty material in the liver and blood duction networks for ethylene propyl- in 2014, however, due to the fall in AkzoNobel has finalized the €153 “The deal includes an agreement ria, said buying Synageva will help vessels and can cause serious health ene diene monomer (EPDM) rubber raw materials prices. million sale of its global paper chemi- for distribution of colloidal silica to it accelerate and diversify its rev- problems or death. and neodymium-based performance Commenting on the outlook for cals business to Kemira, completing the paper industry and we are look- enue growth while also expanding The FDA is expected to rule on butadiene rubber (Nd-PBR). the workforce, Zachert said it is the deal first announced in July 2014. ing forward to future growth of this its manufacturing base. the indication by September of this In a third phase, the rubber “not unthinkable” that additional Niek Stapel, managing director product line,“ Stapel added. The boards of the two New Eng- year, with a decision by European specialist will focus on improving layoffs could be on the agenda as Pulp and Performance Chemicals AkzoNobel said it will continue land companies – Alexion is based regulators at about the same time. the competitiveness of its business the re alignment scheme progresses at the Dutch specialty chemicals to maintain a strong presence in in Cheshire, Connecticut, Synageva (dw) ▪ portfolio, especially through coop- further. In late 2014, Lanxess said producer, called the divestment “an- the pulp industry as the leading eration with partners in the rubber it would slash 1,000 jobs – around other important step in our strate- global supplier of chemicals and business, as announced last year. 6% of its 16,700-member workforce gy to focus on leading positions in customized solutions for bleach- Zachert confirmed that the company – up to 2016. In March it announced bleaching chemicals, colloidal silica ing pulp, marketed under its Eka is currently in talks with potential an additional 140 layoffs. (dw) ▪ and expandable microspheres.” brand. (dw) ▪ Chemours Closes on Notes, Credit Facilities Chemours, DuPont’s new stand- $3.9 billion, in recognition of the as- alone incorporating its Performance sets the former owner contributed. Canh eomffeicrainlsg bouf $si1n,e3s5s0, mhailsl icoonm 6p.6l2et5e%d fro“mIt tihs ec rditeibcat l ctaop igteatl tmhea rbkaectsk inags Visit us at Chemspec Europe senior notes due in 2023, $750 mil- we near the launch of The Chem- lion 7% senior notes due in 2025 ours Company as an independent Booth E01 and €360 million 6.125% senior company on July 1. We are pleased 24-25 June 2015 notes due in 2023. with the market reception following It´s always The company, which will be for- our debt roadshows, which has been In Cologne, Germany mally spun off from the US chemi- very favorable and supportive of our cal giant on July 1 of this year, also strategic plans for Chemours,” said has entered into a credit agreement CEO-designate Mark Vergnano. worth asking! with a syndicate of banks providing The company also has announced for a seven-year $1.5 billion senior the appointment of E. Bryan Snell as secured Term Loan B Facility and a president of its Titanium Technolo- five-year $1.0 billion senior secured gies business, with immediate effect. Revolving Credit Facility. Snell, who joined the former DuPont Proceeds from the transactions division in 1992 as production unit have been used to fund a distribu- manager, replaces BC Chong, who led tion to DuPont of approximately the business since 2011. (dw) ▪ Dow Completes Buyout of ExxonMobil’s Univation Stake Dow Chemical has completed its ing UCAT Conventional, Acclaim acquisition of ExxonMobil Chemi- Advanced Unimodal, XCAT metal- cal‘s share of US technology licen- locene and Prodigy bimodal cata- sor Univation Technologies for an lysts. undisclosed sum. Dow said the purchase of its part- Previously a 50:50 joint venture ner’s stake reflects its strategic fo- of the two US chemical groups, Uni- cus on investing in businesses with vation licenses the widely used Uni- strong competitive positions in at- pol polyethylene process and also is tractive markets. a leading manufacturer of catalysts Univation Technologies will op- for the process that permits plant erate in future as a wholly-owned operators to swing between produc- subsidiary of Dow, led by its presi- tion of linear low density and high dent, Steve Stanley, and will con- density PE grades. tinue to be based in Houston, Texas. The technology firm also devel- (dw) ops and supplies catalysts, includ- ▪ AbbVie Completes Pharmacyclics Acquisition AbbVie has completed the acqui- the only product to have received Developing innovative solutions in the fi elds of: sition of Pharmacyclics, a deal the three Breakthrough Therapy desig- Chicago-based US drugmaker says nations by the Food and Drug Ad- Agro Pharma Polymer Personal Care Specialties enhances its scientific and com- ministration (FDA). In partnership mercial presence in oncology. As a with Johnson & Johnson’s Janssen wholly owned AbbVie subsidiary, subsidiary Janssen Biotech the drug Pharmacyclics will continue to be is now approved in nearly 50 coun- based at Sunnyvale California. tries. The deal, as previously an- “The companies’ shared exper- nounced, values the takeover can- tise, combined with AbbVie’s broad WeylChem International GmbH didate at around $21 billion. late-stage oncology pipeline, has the [email protected] Pharmacyclics is recognized as potential to transform the cancer Europe: +49 (0) 69 506 820 2244 a leader in the hematological on- treatment landscape for hemato- cology market with its Imbruvic logical malignancies and improve North America: +1 (803) 438 44 78 (ibrutinib) BTK-inhibitor used to patient outcomes and quality of life,” www.weylchem.com treat hematological cancers. Ap- said Richard A. Gonzalez, CEO of Ab- proved for use in four indications bVie, which will market the drug in in the US, Imbruvic is claimed to be the US. (dw) ▪ + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + M A R K E T S & C O M PA N I E S Page 4 CHEManager International 6/2015 Harvest Season ◀ Continued Page 1 has been special and how can you are more and more made from guarantee a competitive cost basis renewable resources, and also be Both acquisitions have been part of for the facility? prepared to take the renewable our investment campaign to increase alternative even if that cost them the polyol capacity. And there might J. Secher: Our internal project name 3% more. Today it is questionable if be a few additional bolt-on acquisi- for this investment is Valerox and it the purchaser would pay extra. And tions of that nature also in the fu- represents a milestone for us that until that actually happens you are ture, but the fundamental strategy is we have passed three months ahead going to have the pace of the change to now really reap the benefits from of schedule and under budget. So it as you see today. It is driven more the investments that we have made. has really been a very successful by convictions than by economics. and well-managed project as such. But at some point in time those two For such bolt-on acquisitions, do Regarding the cost basis, I think it drivers need to come together. And you rather look at certain geogra- is important that we are operating then we will see an accelerated phies or at opportunities where to this plant in close collaboration with change. add something to your portfolio? our raw material feedstock supplier I am personally very engaged Borealis. We are basically over the in this. We are taking steps in that J. Secher: There are three dimensions fence from their naphtha cracker direction, for instance, we have to that. The first dimension is tech- in Stenungsund, which is a strate- started a taskforce to establish our nology; the second one is geography; gically advantaged cracker to be a future direction with this. And we and the third one is market position. cracker in Europe. As you know, the have a lot of good examples already. We always look for interesting oppor- cracker market in Europe is quite It is a matter of bringing them under tunities as additions to our current difficult at this point in time, in par- one umbrella and making this more technology platform. There our focus ticular with the low-cost competition of a corporate visible strategy. And would be more on the specialties side from North America right now. But that is something that we are work- rather than on the intermediates vol- Borealis is now actually bringing in ing on. ume products. In terms of geography, ethane from the US that makes them our strategic direction is that we a strategically well positioned raw Sustainability is not just about the want to grow outside of Europe what material supplier for us. Thus, we feedstock, renewable resources, © Gina Sanders - Fotolia.com currently accounts for about 60% of are quite convinced that becoming but it is also about what your prod- our business. And thirdly, you know, a fully integrated supplier as well as ucts are doing in the applications we have very strong market positions moving to butene-based plasticizers ant, SIPCA and Ferrostaal and held I did not grow up in the chemical J. Secher: When I arrived, we did first they are meant for. and the penta deals are a good ex- will position Perstorp cost-compet- leading positions at ABB. What ex- industry and I find that the chemi- of all a rather thorough data-driven ample of our intention to always look itive-wise quite well in the global periences and skills you acquired cal industry tends to have quite an analysis of where are we in terms J. Secher: Yes, take for instance our for opportunities to maintain and perspective and we feel definitely during your career in the chemical inside-out mentality. You have your of competitive positions, and re- Capa products that help coatings even strengthen those leadership po- technology, you have your plants, ally try to understand the markets manufacturers to reduce energy sitions. In 80% of our businesses we and you optimize around that. But and the go-to-market strategies consumption and emissions. There are amongst the three leading play- there is too little thinking of where that we had. And we came to the are so many examples where chem- Sustainability is driven more ers. I truly believe that one should is my market, what who are my conclusion that we have two types ical products directly influence the really make sure to nurture leading by convictions than by economics. customers, what issues do they deal of businesses. One is a supply-de- downstream use of energy and ul- market positions because they are with today and what demands do Jan Secher, President and CEO, Perstorp difficult to reach, and once you are they receive from their customers there you got to make sure that you further down the value chain. defend them. The chemical industry is often We are currently concluding that we can be competitive with the and engineering industry are help- situated so far up in the value chain, a quite intensive investment period. The new state-of-the-art oxo plant products produced in the new plant. ful in your current position? therefore you need to constantly look at Stenungsund, Sweden, has forward and try to understand what been inaugurated only a couple of Before taking the helm at Per- J. Secher: There are quite a few ex- the end user requirements are com- weeks ago. What about the project storp you had been CEO of Clari- periences that I can apply and use. ing at us through this value chain. Because eventually it will reach us. mand-driven type of business that timately CO footprint. And actu- 2 And to be driven from the outside-in we call Intermediates & Derivatives. ally, I think that if you were to look rather than from the inside-out is Very advanced products as such, at what is the carbon footprint of something that we are today apply- but we don’t differentiate substan- the chemical industry versus what ULLMANN’S ing to Perstorp quite successfully, I tially by means of our product. The we help other industries save as a would say. And it is my experience other type of business is much more result of the products we manu- from the previous positions that led specialized. This business is called facture, it is a factor of 1 to 2. This Encyclopedia of Industrial Chemistry me to that understanding quicker Specialties & Solutions. We have a means that — speaking about the than I would have gotten there with- true differentiation there, we have European chemical industry as a ... built from generations of expertise, for generations to come. out that experience. something unique. whole — our products help other So, we have two business areas. industries reduce their footprint Would you say that the chemical One is Intermediates & Derivatives, double the size of our own. This The information you need in the format you want. industry needs to become more and one is Specialties & Solutions. fact needs to be put out there a bit customer-centric? And that is part of the strategy how to more visibly. make ourselves more outside-in and Online DVD Print J. Secher: One should be careful of gen- market-driven, so to speak. We also Being that far up the value chain eralizing and so this needs to be put have to make sure that our innova- is also a reason why the solutions into context. But generally speaking tion organization that is working very chemical products are enabling I find still today there are situations closely with the two business areas in industry or consumer goods – where we understand the chemistry gets really closely linked to the cus- for instance in improving perfor- and we have figured out what the tomers, but still in a structured way. mance, energy efficiency or envi- molecules do and don’t do, and we Next, we are going through a ronmental impact – usually don’t are very proud of that, but we have commercial excellence program get mentioned. Do you think that not necessarily understood the full that we run with our entire sales the chemical industry is actually Over 1,150 articles are available online. extent of how it can be used. And far force, which we have separated into rewarded by the customers or by Over 3,000 authors from over 30 too often I see that it is the inside the two business areas. So there is the public? countries have contributed. Released once a year. ULLMANN’s is available as drive that leads us to a new develop- a lot of work going on right now to a comprehensive 40 Volume-Set. Offers fl exible access 24/7 from Fully networkable for up to ment rather than the demand and really reach commercial excellence J. Secher: Definitely not. I think as an your library, home, or on the road. 200 users. The 7th Edition published in August 2011. the problem. I sometimes use the in the organization. industry we are a poor communica- Updated 6 times per year. 2013 Edition analogy: ‘we have the perfect solu- ISBN: 978-3-527-30673-2 ISBN: 978-3-527-33311-0 ISBN: 978-3-527-32943-4 tion; the only thing missing is the problem’. There are still examples Only interested in a special topic? of that. The chemical industry tends to have quite an inside-out mentality. And at Perstorp you have imple- mented the outside-in look? J. Secher: What I just said is a bit black or white, but at Perstorp we are try- Perstorp’s mission – according to tor. Actually, we are all ‘engineers’, ing to create a more healthy balance your website – is to provide sus- so, sometimes, not always, we take between the two drivers. I am the tainable solutions through innova- too much of a factual approach in Ullmann‘s Chemical Ullmann‘s Biotechnology and Ullmann‘s Fibers first to underline that there is a need tive chemistry. Does sustainability our communication, because that Engineering and Plant Design Biochemical Engineering 2 Volumes 2 Volume Set 2 Volume Set ISBN: 978-3-527-31772-1 to properly optimize the utilization of mean more to you than being a is what we think is right. We are ISBN: 978-3-527-31111-8 ISBN: 978-3-527-31603-8 your assets. We are an asset-heavy buzzword? sending messages about all these Ullmann‘s Reaction Engineering Ullmann‘s Industrial Ullmann‘s Agrochemicals 2 Volume Set industry compared to a true service numbers and how good we are Toxicology 2 Volume Set ISBN: 978-3-527-33371-4 industry which is very asset-light. J. Secher: For us as a company it does, and how we decreased our foot- 49535-1 2IS VBoNlu: m97e8 S-3e-t527-31247-4 IUSBllNm: a97n8n-3‘-s5 2M7-3o1d60e4l-i5ng RISeBnNe: 9w78a-b3-l5e2 7R-3e3s3o6u9-r1ces So for sure, we got to always look and for me personally it does, too. print and how much investments at how we can make better use of I don’t think we are going to see a we made. And you can come with and Simulation the assets that we have. But staring step change but I think that sus- how many rational arguments as ISBN: 978-3-527-31605-2 yourself blind of that, there are many tainability is something where we you like, but you are not commu- opportunities going by out there and see an increasing interest up to a nicating, you are not connecting. you will not see them. point where it is slowly starting to Because this is an emotional dis- develop into a demand. But the real cussion and we need to meet it with www.wiley.com/go/ullmanns How do you make sure that Per- change will only come when further emotional arguments — not always, storp will not miss too many of down the value chain customers are but sometimes — in order to create these opportunities? starting to demand products that the connection. ▪ + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + M A R K E T S & C O M PA N I E S Page 6 CHEManager International 6/2015 New Openings for Oil and Gas Chemicals Cheap Oil Gives Scope to Chemical Companies to Help Cut Production Costs © claffra - Fotolia.com The outlook for producers of chemicals used in the exploration and pro- types in the short term to meet the and then onto the processing facili- for nearly half of its predicted po- determine how the polymers can be ongoing growth in demand.” ties is a key factor in raising pro- lyacrylamide sales of €4.5 billion formulated to apply sufficient pres- duction of oil and gas has not been promising after the crash in oil prices The priority for many producers ductivity. Hydrocarbon fluids in well in 2020 against around a fifth in sure on oil droplets to remove them. in the second half of 2014. However, cheap oil could offer opportunities will be to raise the productivity of in- pipelines will usually contain a mix- 2013 with the rest used in drilling Those at the center, who reckon that for suppliers of these chemicals as operators of oil and gas rigs across the world dividual existing wells that have the ture of crude oil, natural gas, water and stimulation. This will require a viscoelastic polymers can already potential for high total output as a and additives and materials, some fourfold increase in sales of poly- increase oil recovery by 20%, be- seek ways to adjust their oil production costs to the lower prices for crude. percentage of the total oil embedded of which have been used as an aid acrylamides for EOR in seven years. lieve they can be applied to billions in the rocks. This could mean push- in the early stages of production but of barrels of oil that are currently “We need to be getting more out a doubling of expenditure to $125 ing the output from an average of can inhibit flow nearer the wellhead. Value Chain unrecoverable. of less,” Robert Frimpong, manag- billion in the six years to 2014. around 40% per well to 60% or more. Sand, for example, is applied as Researchers in the oil sector are ing director, Wintershall Noordzee, “The Eagle Ford Shale in the “What is needed are chemical a fracture proppant in hydraulic BASF’s recent combining of its wa- also continuing their work on the Netherlands, part of BASF’s oil and US has seen capex cuts by opera- and other technologies which opti- fracking of shale gas and oil. But ter, oilfield and mining businesses application of new biochemicals and gas Wintershall operation, told a tors while reductions are also being mize the levels of production in cur- within pipelines it can cause severe into a single unit has strengthened biological compounds in oil and gas BASF Science Symposium in Lud- seen in other major plays,” said Paul rent wells,” said one oil executive. erosion and even the failure of a its position in the polyacrylamide production despite their tendency to wigshafen in March. Gould, global head of marketing at “This could mean the application of whole piping system. Other factors segment. be more expensive than mineral-oil- The 50% drop in oil prices from Clariant’s Texas-based oil services EOR or other techniques. With wells hampering flow include the length of “As all three businesses include based equivalents. mid-2014 to early 2015 did not have business. “As a result of capex cuts, whose infrastructure has already the pipeline, extreme temperatures, parts of the polyacrylamide value an immediate effect on the output of analysts estimate that domestic on- been installed, EOR technologies and formations of hydrocarbon de- chain, our operations, including Fungus-Based Polymer oil. In fact some producers of oilfield shore oil and gas activity (in the US) become more economical.” posits such as hydrates, waxes, par- those in North America, can now chemicals seemed to be hoping they may be reduced by 40% compared affins and asphaltenes. be jointly managed, and customers BASF, which last year started pro- could continue to achieve the high to the level in 2014.” Meeting Challenges Clariant markets a variety of will benefit from proximity, market ducing bioacrylamide at Suffolk, growth in sales of recent years. However, in regions like the Mid- treatments for removing and pre- intelligence and a specific business Virginia, has jointly developed with dle East, capex could actually in- Some of the companies with major venting asphaltene and paraffin focus,” a BASF spokesperson said. its oil and gas subsidiary Wintershall Small Oil Decline crease as Arab producers remain oil and gas chemicals businesses deposits and for breaking up emul- The company has also been de- a fungus-derived polymer thicken- intent on keeping their global mar- seem confident that they can meet sions that have formed in a pipe- veloping a glyoxal dialdehyde for ing agent called Schizophyllan. The Saudi Arabia’s oil production was ket share rather than reducing their the challenges posed by cheap oil. line. The collection also includes a cross-linking polymers to improve biopolymer, which is now being predicted in March to be heading for production capacity. Across much of Clariant, No. 3 in the global oil drag reducer, which increases the their viscosity as fracturing fluids tested by Wintershall in the field, an average 9.8 million b/d in 2015 the world, investment in projects that services market for chemicals, is amount of fluid being transported. so that they can infiltrate sediment raises the viscosity of water 25 times against 9.6 million b/d last year. require the application of expensive predicting 6% - 7% annual increases pore to release crude. to make it more effective as an oil In the US, whose oil and gas sec- enhanced-oil-recovery (EOR) tech- in sales after achieving a double- Scale Treatment Applications of polymers and oth- displacement agent. At a time when tor has been expected to be hit the niques will inevitably be cut back. digit sales growth in 2014 in its Oil er chemicals for flow assurance pur- environmental regulations on use of hardest by the oil price collapse, Unfortunately for chemical compa- & Mining Services unit. Most of the The company is planning to launch poses will benefit from an increase contaminants in oil and gas produc- output started to decline slightly nies, EOR, which is used in oil or gas business’ sales have been in oil and a treatment soon for preventing the in the development and application tion are becoming stricter across the only in late March. reservoirs deep under the seabed or gas with a large proportion stem- formation of iron sulphide (FeS) of monitoring and modeling of the world, Schizophyllan has the advan- However, capital expenditure has trapped in tight rock formations, has ming from innovations. scale in mature water-filter systems use of chemicals in oil and gas ex- tage of being absolutely eco-friendly. been going down in high-cost sec- a big demand for chemicals. “With the low price of oil, Clariant and injector wells. ploration and production. “The first indications in the test tors like onshore shale gas and tight has focused efforts on improving pro- “(The product) adds a novel field are that the biopolymer could oil in North America, deepwater off- Providing Chemical Solutions ductivity through innovation, without booster to an existing technology, Modeling Real-Time Data have a positive impact on crude oil shore reservoirs around the world, generating additional capex invest- reducing FeS scale control spend production,” said Burkhard Ernst, and areas of depleted reserves such Nonetheless there will be a lot of ment,” Gould said. “We partner with by over 30%,” Gould said. “Lower Computational fluid dynamics Wintershall’s general project man- as the North Sea. Shell announced scope for chemical producers able our customers to analyze declined injection-well failure rates (dur- (CFD), an aspect of fluid mechan- ager. earlier in the year that it would cut to provide solutions that cut costs, production curves, identify the root ing tests) resulted in an increase in ics, are now providing algorithms, When judging the commercial capital spending over the next three particularly those of existing, less causes and develop safe and sustain- overall injection volumes, (which) often based on the modeling of large viability of new bioproducts such years by around $15 billion. expensive projects. Enough oil still able solutions utilizing (our own) pro- led to an increased oil production.” amounts of real-time data, which is as Schizophyllan, a delicate bal- Schlumberger, one of the world’s has to be produced to meet growth duction optimization system.” Kemira recorded a 40% increase improving the efficiency of flow as- ance has to be found between cost leading oil and gas services com- in global oil consumption of around Kemira, another top supplier in revenue in the Americas last year surance polymers and other chemi- effectiveness and environmental panies, has estimated that in 2015 2% to 3% annually. of oil and gas chemicals in North mainly due to the success of its poly- cals. Research with the help of CFD compati bility. While oil prices re- capex in oil and gas exploration “There will be a strong focus America and the Middle East, is also acrylamide polymers as flow aids for has demonstrated ways of raising main low, an innovation’s cost is and production (E&P) will fall by an on reducing cost per barrel,” Paal optimistic that it can at least main- reducing friction. The company has the efficiency of viscoelastic poly- likely what will make it a success. overall 10% to 15%. Kibsg aard, Schlumberger’s chief ex- tain sales levels after oil and mining a 20% share of the North American mers like hydrolyzed polyacryla- ecutive, told an energy conference revenues jumped by 23% last year. polyacrylamide oil and gas market. mide (HPAM) in displacing oil from Shale Capex Cuts in New Orleans in March. “(This will It is also the world’s second-largest rock fractures. Sean Milmo, freelance science result in) increasing production from Ensuring Flow dry and emulsion polyacrylamide Studies by the Center for Petro- and business journalist, Expenditure will drop sharply in on- shallow water and conventional land producer. leum and Geosystems Engineering Essex, United Kingdom shore oil production in the US, es- fields, as more investments are likely For rig operators, ensuring a smooth Its medium-term objective is for (CPGE) at the University of Texas pecially in its shale sector, following directed towards these resources flow of oil and gas to the wellhead enhanced oil recovery to account have shown how CFD modeling can [email protected] Ineos Completes Buy of Wintershall Pulling out of Fracking Permits from IGas Qatar Gas Exploration Swiss-based petrochemicals mam- The deal includes the acquisition 133 Grangemouth license it has ac- BASF’S oil and gas subsidiary Win- ing the processing of the gas, would opments in other countries in the moth Ineos has completed its of a 50% share in seven IGas shale quired from IGas in Scotland. The tershall is pulling out of its gas explo- only be possible if we have access to region, Bachmann said. planned purchase of shale gas ex- gas licenses England’s northwest latter will give it 100% ownership ration activities in Qatar. The compa- local infrastructure. This access was “The challenges in the region ploration permits in England and (the so-called Bowland licenses). of the franchise to frack the area ny said it is returning Block 4 North not granted. That is why we have are increasing with local energy Scotland from IGas and now claims With the Bowland licenses, the surrounding its refinery and pet- near the North Field off the Qatari decided to take this step”, said Win- consumption growing rapidly. In to be the UK’s third largest shale gas petrochemicals group is picking up rochemicals site of the same name coast and closing its office in Doha. tershall managing board member order to maintain production in the company. a 60% interest in three Petroleum located on the Firth of Forth. The company, which made the “Al Martin Bachmann, who is responsi- long term, fields must be exploited Ineos is paying IGas £30 million Exploration & Development Licens- Additionally, the company has Radeef” gas discovery off the cost ble for exploration and production more efficiently and technically in cash for the permits while also es (PEDLs 145, 193 and EXL273) as secured an option to acquire 20% of Qatar in 2013, blamed the Qatari in Europe and the Middle East. more complex fields need to be de- agreeing to fund a two-phase site well as a 50% interest in four ad- in two IGas shale gas licenses in government for not granting it ac- Wintershall said its other activi- veloped,” the board member added. development scheme expected to ditional licenses (PEDLs 147, 184, England’s East Midland (PEDLs 012 cess to local infrastructure. ties in the Middle East region are Wintershall has said it wants to cost as much as £138 million. IGas 189 and 190). and 200). “During the development plan- not affected by the withdrawal from increasingly leverage its consider- will reimburse Ineos for its share of Ineos plans to assume operator- Fracking is expected to be a hot ning, it was always clear to us and Qatar. The company’s current focus able experience in deploying the the scheme to Ineos when commer- ship of PEDLs 145 and 193 and EXL topic in the run-up to next year’s our partners that an economic de- is on the United Arab Emirates but Enhanced Oil Recovery (EOR) tech- cial production begins. 273 in stages, along with the PEDL Scottish Parliament elections. (dw) ▪ velopment of the discovery, includ- it is also closely following the devel- nology in the Middle East. (dw) ▪ + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + M A R K E T S & C O M PA N I E S CHEManager International 6/2015 Page 7 CVC Planning to Sell Clariant Sees Shareholders as DSM Now Said to Be Another Chunk of Evonik Bulwark Against Takeovers in Evonik’s Crosshairs Speculation that German chemical In March, taking advantage of Swiss specialty chemical producer Clariant CEO Hariolf Kottmann First Clariant, now DSM is rumored An Evonik spokeswoman told the producer Evonik is priming itself for a 15% rise in Evonik‘s share price Clariant is certain that its large has stressed repeatedly that the to be in the crosshairs of German news agency Bloomberg that there a major acquisition or restructuring over the preceding three months, shareholders – including those of Swiss company does not want to chemical producer Evonik, which are no plans or considerations to continues apace. CVC sold shares worth 3.9% of Süd-Chemie, who hold 14% of the be taken over. The Swiss specialty appears to be in the market for a buy DSM and that “there are no Following an announcement in the German company’s equity, but company’s shares – will support chemicals producer itself has been major acquisition. talks” between the two companies. February by the company’s largest netted a disappointing €29.15 per management’s plan to remain inde- fairly active on the M&A scene, fol- Evonik is said to be in talks New York hedge fund Third Point, shareholder, the German coal min- share. pendent, CFO Patrick Jany recently lowing up its 2013 acquisition of with advisers about a deal for the which has been hounding Dow ing drawdown fund RAG, that it was RAG, which owns 68% of Evonik, told the news agency Reuters. Süd-Chemie with several other bolt- Dutch group that would create a Chemical of late, has also taken DSM increasing equity by €400 million has stressed that it does not to divest In late March, market rumors on deals. new chemicals player with sales of into its line of vision, with fund chief through the issue of a bond with ma- any shares, but plans to remain a surfaced that German chemical pro- Kottmann also has questioned around €22 billion annually. Daniel Loeb highlighting the large turity in 2021, Evonik’s other major long-term shareholder. In the past, ducer Evonik could be planning to the logic behind an Evonik acqui- DSM is said to have turned potential value to be realized by shareholder, private equity fund CVC the coal fund had said it would re- launch a bid to buy Clariant and cre- sition in Europe, where the Essen- thumbs down on an earlier offer by splitting the materials and nutrition now says it will unload a further 2 duce its engagement gradually to ate a much larger specialty chemi- based group as well as the mooted the German group, in part because divisions and focusing on the latter. million shares valued at €700 million. diversify its portfolio. cals producer with annual sales of takeover candidates are overrepre- it did not want to relocate headquar- Third Point is now one of DSM’s With the deal, the fund will re- The fund, which evolved out of around €20 billion. sented. ters across the River Rhine. Market largest shareholders, with a stake duce its stake in Evonik by about a a forming coal mining company, is The rumors apparently were For the first quarter of 2015, talk has it that Evonik would be will- of more than 3%. Bloomberg said third, from 14% to 9.4%. JP Morgan responsible for footing the bill for sparked by Evonik management’s Clariant reported a 4% rise in sales ing to buy all of DSM, which has a DSM’s chief executive CEO Feike Si- and Bank of American Merrill Lynch Germany’s exit from coal mining up remarks that it was looking to add from continuing operations denomi- market value of €9 billion. However jbesma and his board would have to are handling the sale of the shares, to 2018. (dw) €3 billion in annual sales by 2018 nated in local currencies. In Swiss its primary interest is said to con- support any bid because of the com- which are priced at €31.85 each. ▪ by focusing on products with high francs, sales fell 2 % to 1.465 billion cern the company’s nutrition divi- pany’s shareholder structure, which barriers to entry and would consider from 1.492 billion. EBITDA before sion, which makes food supplements. includes a foundation that has the acquisitions to meet the target. exceptional items receded by the Both companies are active in the right to issue shares if the group is The German group, whose name same margin to 206 Swiss francs, saturated market for polya mide the target of an unwanted approach. Siltronic Aims for has also been mentioned as a pro- and the EBITDA margin before ex- feedstock caprolactam, so that Dutch analysts have commented spective buyer for Dutch chemical ceptionals was flat at the Q1 2014 Evonik would find little interesting that a takeover is unlikely to take Stock Listing Before Summer producer DSM, has been actively level of 14.1%. (dw) there. The two European chemical place, as buying DSM as a whole is searching for takeover candidates, players also have been trying to di- too big an acquisition for Evonik. Siltronic, electronics subsidiary of debt. In a statement, CEO Christoph reports say. ▪ versify away from petrochemicals. (dw) ▪ Munich-based Wacker Chemie and von Plotho said the company has the world‘s third-largest maker of “worked hard” to prepare for the the silicon wafers used in semicon- ipo, implementing cost cuts total- ductor chips, aims to raise more than ing €135 million over the past two €150 million from an initial public years. offering planned to take place before Like its rivals in other countries, the European summer holidays. foremostly Japan, the Munich com- The German wafers producer pany has struggled with falling pri- said it will issue new shares as part ces for silicon as personal computer of an equity increase, while parent markets have matured, limiting de- Wacker will separately sell exist- mand for microchips. ing shares in the company to pri- The worldwide silicon wafer vate and institutional investors on market peaked at around $12.5 bil- the German and Luxembourg stock lion in 2007 but sales have plunged market. Shares also will be offered by more than a third since then, for subscription in private place- according to figures compiled by ments outside the stock market. Gartner Inc. The market collapse Wacker intends to retain a major- has triggered a wave of consolida- ity stake in the electronics offshoot, tion in the global industry, neces- at least for the short term. sitating plant closures at Siltronic. Siltronic said it would use pro- (dw) ceeds from the listing to reduce its ▪ J&J Drugs Arm Announces 10 Blockbuster Filings by 2019 Johnson & Johnson’s Janssen Phar- US pharmaceutical major said it maceuticals offshoot has told ana- expects top-line growth above the lysts it plans to seek regulatory ap- industry average through 2019. proval for more than 10 new drugs Janssen’s portfolio focuses on the up to 2019, each with the potential five core therapeutic areas: immu- to generate at least $1 billion an- nology; infectious diseases & vac- nual sales. cines; neuroscience; cardiovascular This would come in addition to & metabolism and oncology. more than 40 line extensions of Since 2009, the drugmaker has existing and new medicines. The launched 14 new products (dw) ▪ Actavis Ordered to Keep Selling Alzheimer Drug Under a ruling by a US court of switch patients to Namenda XR, a appeals upholding a preliminary higher dose, once-daily formulation. injunction dating from December Actavis has appealed the decision 2014, Actavis will have to continue to the next instance, but analysts selling its Namenda IR tablets for said a “second opinion” could come Grrrrr. Or as we call it: treatment of moderate to severe too late to stop the generics compe- Alzheimer’s type dementia. tition in its tracks. 7.84 mbar, 24.4 kg, and 107.3 % Level The ruling puts paid to a plan The drugmaker wants to ensure by the company to pull the drug, that the court‘s decision has little to which will face generics competition no impact on its earnings targets. (cid:54)(cid:76)(cid:72)(cid:80)(cid:72)(cid:81)(cid:86)(cid:3)(cid:51)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:44)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:178)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:89)(cid:72)(cid:85)(cid:92)(cid:87)(cid:75)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:80)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:17) from mid-July, from the market and (dw) ▪ (cid:51)(cid:85)(cid:72)(cid:86)(cid:86)(cid:88)(cid:85)(cid:72)(cid:15)(cid:3)(cid:58)(cid:72)(cid:76)(cid:74)(cid:75)(cid:87)(cid:15)(cid:3)(cid:47)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72) Ex-La Seda CEO Gets off Light in Embezzlement Case (cid:50)(cid:88)(cid:85)(cid:3)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:76)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:83)(cid:68)(cid:70)(cid:78)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:16)(cid:82)(cid:73)(cid:16) (cid:83)(cid:79)(cid:68)(cid:81)(cid:87)(cid:3)(cid:72)(cid:73)(cid:73)(cid:76)(cid:70)(cid:76)(cid:72)(cid:81)(cid:70)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:80)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:84)(cid:88)(cid:68)(cid:79)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3) (cid:87)(cid:75)(cid:72)(cid:16)(cid:68)(cid:85)(cid:87)(cid:3)(cid:87)(cid:72)(cid:70)(cid:75)(cid:81)(cid:82)(cid:79)(cid:82)(cid:74)(cid:92)(cid:17)(cid:3)(cid:58)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:92)(cid:82)(cid:88)(cid:3)(cid:81)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:88)(cid:85)(cid:72)(cid:15)(cid:3) (cid:68)(cid:88)(cid:87)(cid:82)(cid:80)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:89)(cid:72)(cid:85)(cid:92)(cid:3)(cid:86)(cid:87)(cid:68)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:17)(cid:3)(cid:58)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) Due to successful plea bargaining, and 15 days. The prosecutor in the (cid:87)(cid:72)(cid:80)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:88)(cid:85)(cid:72)(cid:15)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:15)(cid:3)(cid:90)(cid:72)(cid:76)(cid:74)(cid:75)(cid:87)(cid:15)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:88)(cid:86)(cid:72)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:85)(cid:82)(cid:83)(cid:81)(cid:72)(cid:88)(cid:80)(cid:68)(cid:87)(cid:76)(cid:70)(cid:3) (cid:80)(cid:72)(cid:68)(cid:81)(cid:86)(cid:3)(cid:92)(cid:82)(cid:88)(cid:3)(cid:70)(cid:68)(cid:81)(cid:3)(cid:85)(cid:72)(cid:79)(cid:92)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:68)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:83)(cid:85)(cid:72)(cid:70)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3) two executives of former Spanish case being heard a Barcelona court (cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:76)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:81)(cid:74)(cid:76)(cid:81)(cid:72)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:74)(cid:76)(cid:89)(cid:72)(cid:3)(cid:92)(cid:82)(cid:88)(cid:3) (cid:92)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:85)(cid:72)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:87)(cid:17)(cid:3)(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:90)(cid:72)(cid:3)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:3)(cid:72)(cid:89)(cid:72)(cid:85)(cid:92)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:3)(cid:86)(cid:88)(cid:70)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3) PET producer La Seda de Barcelona had asked for a sentence of 27 years (cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:82)(cid:86)(cid:87)(cid:3)(cid:83)(cid:85)(cid:72)(cid:70)(cid:76)(cid:86)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:82)(cid:86)(cid:86)(cid:76)(cid:69)(cid:79)(cid:72)(cid:17)(cid:3)(cid:36)(cid:81)(cid:71)(cid:3)(cid:69)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:90)(cid:72)(cid:3) (cid:69)(cid:72)(cid:74)(cid:76)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:74)(cid:85)(cid:72)(cid:68)(cid:87)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:17) – including former CEO Rafael Espa- and six months. (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:70)(cid:70)(cid:88)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:78)(cid:72)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3) ñol – have escaped severe penalties The ex-CEO has agreed to pay for embezzlement of company funds a fine of €702 million, which is in and may possibly avoid jail time al- part restitution for tax evasion. Es- together, Spanish reports say. pañol and another manager, Antonio (cid:86)(cid:76)(cid:72)(cid:80)(cid:72)(cid:81)(cid:86)(cid:17)(cid:70)(cid:82)(cid:80)(cid:18)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) Español has pleaded guilty to Comadrán, are said to have admit- misappropriation of funds, a charge ted diverting €12.2 million from La that carries a penalty of 11 months Seda’s corporate coffers. (dw) ▪ + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + C H E M I S T R Y & L I F E S C I E N C E S Page 8 CHEManager International 6/2015 ‘A Right to Play and a Right to Win’ Chemtura’s Organometallics Specialties Business is a Focal Point of Future Growth Chemtura Corporation is a global specialty chemicals company with metallocenes and aluminoxane ac- tivators, which was a driver of our leading positions in diversified markets and net sales of $2.2 billion in MAO investment. MAO is a critical 2014. Formed in 2005 through the merger of Great Lakes Chemical and component of our growth strategy Crompton, the Philadelphia, Pennsylvania-based company looks back on a history going forward. Overall, our recent investments in the OMS business of almost 180 years. After the divestiture of its AgroSolutions business in 2014, have been focused on products that Chemtura now focuses its business on two segments: Industrial Performance support global megatrends like re- Products (IPP) and Industrial Engineered Products (IEP). Major industries served newable energy generation and en- ergy efficiency. by IPP and IEP include transportation and energy & electronics. Within IEP, the Organometallics Specialties (OMS) business unit is slated to have a significant im- Which products and applications pact on the segment’s overall performance and profitability in 2015 and beyond. in particular? It has, thus, become a focal point for the company’s future growth. Ralf Kempf A. Swiech: We are talking primar- and Michael Reubold spoke with Alan M. Swiech, executive vice president and ily about products like diethylzinc general manager of OMS, about recent achievements and his further strategy. (DEZ ), trimethylaluminum (TMA), and methylaluminoxane (MAO). These specialty organometallic CHEManager International: In the products are used – among others – past several years, Chemtura has in polymer production, in processes invested nearly $80 million in OMS for production of semiconductor capabilities and infrastructure. devices and photovoltaic modules. © Smileus - Fotolia.com What have been the key drivers Electronics – optoelectronics in for these investments? particular – and very-high-purity precursors that support the semi- Organometallics Specialities busi- substitution of traditional lighting The pharma industry is far different A. Swiech: The past several years have conductor market are important ness was to create those backbones with LED technology. Solid-state compared to the electronics indus- seen great change at Chemtura, application areas for Chemtura Or- – TMA in particular, but also DEZ household applications, automotive try, but there are attributes of this and for our Organometallics busi- ganometallics’ products. Right now, capabilities. We are now positioned and general lighting – we see these market that are very encouraging ness and its customers that change we are targeting the rapidly growing as a key supplier of precursors to segments growing at 12 to 14% a for us and that fit what we do well. will be very positive. OMS supports LED market – the future of energy- both of those applications. year. What is also developing now Finally, less profitable but im- a wide array of industries and mar- efficient commercial and domestic portant to base load and important kets. The cornerstone of our busi- lighting. The market for photovoltaic to our overall business structure, ness – impacting both our base applications, as well, is very impor- are the vinyl additives producers, business and our growth oppor- tant for us, especially solar panels. We have huge expectations in particular manufacturers of PVC tunities – is the polymer industry, There are two different technologies tin stabilizers. in the LED market. which includes the manufacturers being deployed in the photovoltaic of polyolefins and the producers of Alan M. Swiech, executive vice president and area for thin-film crystalline solar What is your strategy for further elastomers and rubber. We produce general manager, Chemtura Organometallic panels – chemical vapor deposition growth and supporting the growth a number of metal alkyls for pro- Specialties and atomic layer deposition. The of the OMS business? cesses operated with Ziegler-Natta improvements in both technologies These products just mentioned are several advanced LED technolo- catalyst systems, but we see our best advanced engineered plastics. Our have created a demand for our TMA and the acquisition of UP Chemi- gies: UV LED, purification through A. Swiech: Our focus is on emerging opportunities for future growth with offerings for this growth market in- and DEZ investments. A large part of cal’s 50% stake in our joint venture lighting rather than conventional growth markets such as the ones the single-site catalysts designed for clude proprietary and custom-made the investment we have made in the DayStar Materials make up the vast methods of killing pathogenic germs, discussed. I think we very much majority of the recent investments. is rapidly evolving. And that has the have a right to play and a right to We have also made important in- potential for significant double-digit win in these areas. Focusing on vestments in the next generation of growth rate over the next years. So these markets where there is sub- tin intermediate feedstocks. we have huge expectations and are stantial growth gives us a very good very bullish on the LED portion of position to win. We believe that we Talking about DayStar, can you the semiconductor market over the are positioned very well to take ad- share a few details of the transac- next five to ten to fifteen years. vantage of those opportunities. So tion with us? The growth prospects of the LED we have high hopes and expecta- market have been the reason for tions for our ability to succeed there. A. Swiech: Formed in 2011 as a joint our DayStar investment including Another strength of Chemtura venture of Chemtura and UP Chem, the full range of LED precursors Organometallics Specialties is our DayStar is a South Korean manufac- in Korea with complete backwards R&D expertise. We do not have a turer and marketer of high-purity integration into the essential TMA big R&D center; we are fairly “lean metal organic precursors for the LED market. We executed a buy-out of the JV partner in May of 2013. Chemtura now owns a 100% inter- We have very much a right to est in the company, which has been play and a right to win. integrated into the Chemtura Or- ganometallics business. Our inten- tion is to establish fully integrated manufacturing, quality, service and distribution capabilities in Asia sup- feedstock that we produce at Berg- and mean” but very effective. 30% porting our electronic-grade trialkyl kamen, Germany. From TMA we cre- of our revenues are from products product portfolio of trimethylgallium ate the whole family of high-purity released in the last five years, and (TMG), triethylgallium (TEG), and electronic-grade products—TMG, we expect to be able to continue that trimethylindium (TMI). TEG and TMI—to satisfy the opto- for the next few years. One of the reasons we chose to electronics markets. take full ownership of DayStar is the Thus, the technologies where we Does your strategy also include fast-paced nature of the electronics have focused most of our recent in- that you look after acquisition tar- industry. Opportunities can appear vestments tie back to these global gets or potential partners? and disappear quickly, and we felt megatrends we have been talking DayStar would be more agile under about. The significant investment A. Swiech: For the near term the an- Chemtura’s sole control. If you are in these technologies and product swer is no. Over the last several positioned as a reliable, capable pro- lines has increased our capability years we had been exploring many ducer of these high-purity precur- to address what we believe are ma- such partnerships and strategic alli- sors, you have a great opportunity to jor growth areas for the next decade ances to a level that was distracting make some money. But competitors and beyond. for the organization and resulted in jump into the arena very quickly, an underperformance of the busi- and things get commoditized. With Besides the megatrends men- ness. Therefore, we have refocused the joint venture structure it was tioned, what other applications is ourselves on what we do and the in- challenging to move quickly. One Chemtura Organometallics serv- vestments that we have made, and of the lessons we have learned was ing? we have taken an honest assessment that the LED market for flat-panel of our strengths and opportunities. backlight TV screens was a huge op- A. Swiech: The market for pharmaceu- Particularly in 2015 we are going portunity and we did not participate ticals and fine chemicals represents to focus more on the things we can in that market at the point where we a smaller portion of our overall port- control and the things that we do wanted to. folio, but they are important parts best, and then start to open our of our growth initiatives. Our metal minds more to other strategic al- With full ownership of DayStar alkyls like DEZ and also our organo- ternatives. We are always scanning Chemtura is now better positioned tin compounds are used as reagents the environment and we are always to participate in the future growth to make active ingredients or key willing to explore options, but at this of the LED market? building blocks for both industries. point our focus is on our core ca- I believe that we have the broadest pabilities. A. Swiech: Yes. The next wave of LED portfolio of precursors that are qual- growth is with the growing global ified in the pharma drug master file. 2 www.chemtura-organometallics.com + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + C H E M I S T R Y & L I F E S C I E N C E S CHEManager International 6/2015 Page 9 Protecting Environment and Yields Innovative Crop Science Helps Otimize Crop Yields Sustainably With global population expected to increase by nearly 40% during the next 85 years, optimizing arable land and securing food supply is a neces- sity. Crop protection is essential in safe- guarding the world’s food supplies. Cur- Oliver Kinkel, Clariant rently around 6,000 custom-made crop protection systems are available for combating the threat posed by pests, weeds, fungi, bacteria and viruses. While their efficiency has evolved considerably in recent decades, the use of chemical crop protectants creates conflict in regard to secur- Michael Willome, Clariant ing agricultural yields and impact on the environment and society. New options exist to help farmers respect Low Dosage, Less Pollution this balance and improve yields. When the adjuvant is added to a crop Adjuvant with a Green Heart protectant, its PGE content acts as a mediator between the aqueous and For a crop protectant to be effective oily components to form an even dis- at all, it needs auxiliary substances persion or fine emulsion in the spray known as adjuvants to transport the liquid. The MSO swells the network active ingredients to the plant. To structure of the topmost layer of the © nmann77 - Fotolia.com meet the requirements of modern, leaf, which becomes more perme- sustainable farming, these should able; this enables the active mol- avoid potential health or environ- ecules to rapidly penetrate into the water than a tomato grown outdoors. embedded in the film and cannot be rective, with a film lifespan of three Oliver Kinkel, head of business mental hazards. The goal should be leaf. Thus food production yields can Compared to exposed outdoor culti- released into the environment, and years and the use of over 3,000 pcm unit Additives, and Michael Wil- to achieve maximum harvest yields be increased while the use of pol- vation, fertilizer and pesticide use is does not cause obnoxious odors or sulfur as pesticide, not only lowers lome, head of business unit ICS; and highest qualities with the small- luting pesticides can be minimized also reduced. All good news from an vapors during production. the environmental effect caused by Clariant, Muttenz, Switzerland est possible rational amounts of ac- through increased efficacy. environmental perspective. The finished films demonstrate films thanks to a significantly re- tive ingredients. Spray application is also im- The use of films in the agricultur- a significantly higher resistance duced need for replacement, but also Methylated seed oil (MSO), de- proved. The adjuvant has optimally al sector, whether indoor or outdoor, against aggressive pesticides, strong saves time and energy. rived from plant oils such as canola, sized droplets, which ensure the improves the world’s nutritional sit- sun exposure and high temperatures Specialty chemicals companies 2 Contact: sunflower or soybean oil, is already spray lands on the crop and the po- uation. However, these plastic films compared to films produced with will continue to support farmers in [email protected] widely used in agriculture. As an ef- tential for wind drift is lowered. This are sensitive to sun exposure and conventional HALS. Compliance with improving yields with minimal envi- [email protected] ficient penetration enhancer it en- means that the distance to neighbor- aggressive pesticides. Aged films standards, such as the CEPLA Di- ronmental effect. www.clariant.com sures rapid penetration of the active ing fields and bodies of water can mean lots of plastic garbage and ingredient into the leaf interior. MSO be significantly reduced during ap- pollution if incorrectly disposed of must be combined with emulsifiers plication, and the amount of usable through uncontrolled burning. Also, in order to mix well with the aque- farm can therefore be expanded. bees require specific light waves for ous spray used by farmers. However, orientation. If this range of UV ra- many emulsifier combinations used Expanding Arable Land and Yield diation is filtered out by the film, the so far are health hazardous or poor- bees’ mobility and thus pollination ly biodegradable, or the natural in- The discussion of better, and more are impaired. The priority is to op- gredients prove difficult to combine environmentally responsible, use timize the resistance of these films because of differing solubility. The of agricultural land and increasing and increase their lifetime. dose rates of current MSO products yield per hectare is also linked to are also often relatively high. agricultural films. Plastic films first Bee-Friendly Agro-Films Clariant has developed a new appeared in agriculture in 1948, and biodegradable adjuvant called are today used in greenhouses, as Film producers can now take advan- Synergen OS, which offers a highly mulch films, and in silage produc- tage of an innovative amino ether versatile solution to this issue. For tion. According to the market re- hindered amine light stabilizer the first time, it combines the nat- search firm Transparency Market (HALS) technology from Clariant, ural-based ingredients MSO and a Research, in 2012 the global de- which offers not only high UV pro- tailored polyglycerol ester (PGE), mand for agricultural films was 4.4 tection but also strong resistance to an emulsifier with no health or en- million tons, and it is predicted to pesticides. Furthermore, products vironmental hazard produced from show a growth rate of 5.7% by 2019. are available that do not filter out coconut oil. The resulting adjuvant Cultivation in greenhouses helps UV rays needed by bees. for both crop protection formula- achieve the needed increase in yields, Hostavin NOW presents a step tions and tank mixes is harmless to and several harvest cycles can be re- forward from conventional HALS health and particularly well-tolera- alized each year. The control of tem- technology, which is deactivated by ted by plants. It also considerably perature, sun radiation and humidity agrochemicals. It can be directly enhances the performance of the allows for a reduction of supplied wa- added during the production pro- Our expertise, active ingredients with lower dos- ter. For example, a tomato grown in- cess of agricultural films, saving age. doors requires six to eight times less production costs. It becomes firmly your solution Monsanto Vows Divestments for Syngenta Green Light It has gone quiet around the target- thorities, Monsanto is now seen as suggested that the US group might ed takeover of Swiss agrochemicals prepared to put considerable addi- strike a deal with conventional giant Syngenta – Europe’s largest tional cash on the table while at the chemical crop protection producers Visit us at player in terms of overall sales – by same time agreeing to sell Syngen- such as BASF and Bayer to make Chemspec Europe GMO titan Monsanto. Behind the ta’s seeds and traits portfolio worth a joint bid for Syngenta and subse- scenes, however, the largest US and more than $3 billion in 2014 sales. quently strip the assets. in Cologne dominant global player is said to be In a presentation, Monsanto Pres- Syngenta is the world’s largest 24-25 June 2015 working feverishly to push its plan ident Brett Begemann said his group producer of conventional crop pro- Booth E10 forward. is “confident it can address all reg- tection products and ranks third in An initial offer of 449 Swiss ulatory concerns.” Without any di- seeds. Monsanto’s sales are split by francs per share, representing an vestments, a merger with Syngenta a ratio of around 70:30 between enterprise value of around $45 bil- would create a market-dominating seeds and chemical crop protect- lion at current exchange rates, was new global player with annual sales ants, while Syngenta’s were nearly rejected earlier by the Swiss player’s of $30 billion. the reverse, with chemical products board, which said it “fundamentally “We intend to make this a really representing 75% and seeds 21%. undervalued” the business and un- clean deal, really easy to get done,” Monsanto is seen as needing to derestimated the “serious execution Begemann said in New York. If Syn- diversify to quell mounting criticism risks.” genta continues to reject an offer, of its dominance in the GMO seeds In exchange for a green light he said Monsanto is “not precluded industry, both from regulatory au- www.saltigo.com from Switzerland and a thumbs up from developing relationships with thorities and consumer advocates. from international regulatory au- other chemical suppliers.” Analysts (dw) ▪ + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + + C H E M I S T R Y & L I F E S C I E N C E S Page 10 CHEManager International 6/2015 Enriching the Microbiome BioConsortia Identifies and Develops Teams of Microbes that Help Boost Crops’ Yield and Survival BioConsortia celebrated its first anniversary in March. The innovative ag- ricultural biotech company focuses on the discovery and development of beneficial microbial consortia for improving plant traits and increas- ing crop yields. Following a funding of $15 million in March 2014, BioConsortia built state-of-the-art R&D laboratories and brought together a team of biological scientists and agricultural industry executives to further develop its Advanced Microbial Selection (AMS) technology. CHEManager International asked CEO Dr Marcus Meadows-Smith about his strategy to further develop the company and its innovative technologies. CHEManager International: March marked the one-year anniversary of BioConsortia as the parent com- pany to New Zealand-based sub- sidiary, BioDiscovery. What have been the most important mile- stones BioConsortia has reached during the past year? M. Meadows-Smith: In brief: We com- pleted first-year field trials in corn and wheat with good results and a high degree of consistency, and are expanding on these initial trials in 2015. We built state-of- the-art R&D laboratories and of- fices in Davis, California. We © Miredi - Fotolia.com hired an experienced team of top ag industry executives and ac- Dr Marcus Meadows-Smith, complished biological scientists. CEO, BioConsortia And we raised $15 million Se- ries B from two long-term so- made in 2009. What is AMS and process of microbe capture and this microbiome to identify consor- ductivity will be able to make a M. Meadows-Smith: Our products are phisticated investors, Khosla how does it work? phenotypic selection, which uses tia of the most beneficial microbes. significant impact on these is- natural probiotics for plants with Ventures and Otter Capital, to fund the idea of ‘directed selection’ to Plants expressing a superior pheno- sues? a scientific rigor that has gone into our activities and global expansion. M. Meadows-Smith: Advanced Micro- drive a shift in crops’ trait perfor- type are chosen and the associated their discovery and development to bial Selection – AMS – is the identi- mance toward improved yields and microbes are isolated and identi- M. Meadows-Smith: Yes, the products ensure they are safe for use in agri- The US organization complements fication and isolation of strong mi- survival. Plants naturally accumu- fied. we are developing are designed to culture. The products are produced the R&D team and work in New crobial consortia that are respon- late microbes when planted in soil help in these critical areas: to fur- in a similar way to yogurt and beer, Zealand, where the breakthrough sible for the expression of targeted and may attract organisms with a You have done field trials on corn conception of the AMS process was traits in plants. AMS is an iterative multitude of effects. AMS enriches and wheat in the US. What are the results of these tests? Markets for microbial biopesticides M. Meadows-Smith: Our 2014 testing and biostimulants both have been growing program consisted of seed treat- at 10%-15% for the past five years. PurcHaSE tHE ENcyclOPEdIa ONlINE The third edition of the ment trials in corn and wheat across a range of sites in the Midwest. Corn leads were tested in combination with standard chemistry on two ther increase yields in high-pro- and will have undergone a rigorous Wiley encyclopedia different hybrids, resulting in yield duction agriculture and the major series of tests, defined by the Envi- enhancement with commendable row crops; help plants tolerate abi- ronmental Protection Agency prior consistency. Two consortia were otic stress brought about by climate to launch. Microbials are used on of ManageMent tested on wheat in one location, giv- vola tility, such as drought or cold organic food production and favored ing double-digit yield increases. The and wet spring weather at planting by consumers and environmental tested consortia were isolated from time; and improve use of resources, groups, though our focus is to im- an AMS process run on corn seed in land and environment with fertilizer prove mainstream, high-produc- NOW New Zealand. use efficiency products. tion agriculture with products that AVAILABLE increase yield and are safe for the ONLINE! Are you developing your process What is your expectation for the environment. for other plants or crops, and other market growth potential of these geographies, too? products? You have established collabora- tions and partnerships with lead- M. Meadows-Smith: Yes, the AMS pro- M. Meadows-Smith: The markets for mi- ing international seed/trait, ferti- Online ISBN: 9781118785317 cess is applicable to many crops crobial biopesticides and biostimu- lizer, and crop protection compa- Out now! and many traits. Our current focus lants are $2 billion and $1 billion re- nies. Can you just name a few, and lies around corn, wheat, soybean, spectively; both have been growing what their purpose is? Purchase the 3e of Wiley Encyclopedia of Management on Wiley Online Library, and get leafy vegetables, tomatoes and pas- 24/7 access to this monumental reference work. ture — with trials planned in the US, New Zealand, Europe and Latin Our products address a need for Online Reference Works combine the quality content you’d expect in a landmark print America. publication with the convenience and enhanced functionality of electronic access. With microbials developed to improve plant traits powerful search functionality, cross-referencing, and regular updates, these expertly edited What topics is your R&D team cur- and increase crop yields. and authoritative resources set the benchmarks for scholarly reference. rently focusing on, and what are your plans to expand your port- Features of the online platform include: folio? at 10% -15% for the past five years. M. Meadows-Smith: We now have a • Intuitive Navigation: Offers browsing by table of contents or articles by topic, as well as M. Meadows-Smith: Current R&D re- We believe the entry of companies number of greenhouse, field tri- the ability to expand and follow references and view author indices search is focused on developing such as Bayer, Monsanto and BASF als and collaborations underway • Enchanced Discoverability: An improved search engine delivers relevant and immediate consortia to enhance fertilizer use will only accelerate grower adoption with leading seed/trait and crop results. Search for a keyword or phrase across the full text of a reference work, use efficiency, general growth and abi- and market growth. protection companies looking at wildcards and Boolean operators otic stress tolerance, such as cold- Our products fit into these two combinations of their seed with our • Improved Alerting Tools: Email alerts and RSS feeds keep users updated with the latest and-wet and drought resistance. We fast-growing markets, but also ad- microbes, looking at improved toler- published research plan to pursue targets for metabolite dress an unmet need for microbials ance to abiotic stress and increased • New Interface: A new design offers easy access to highly structured articles, references, expression and biotic resistance in that have been specifically developed yield. We are also looking at the pos- and supporting information collaboration with others or after to improve plant traits and increase itive impact of our microbes on non- 978-1-119-97251-8 • RRp: £1,499.00 / €1,798.80 / $2,320.00 our own expansion in the future. crop yields. As such, we see our core crops. All these are covered by Wiley Online Library also offers libraries COUNTER-compliant usage data, unlimited Hardback • September 2014 For example, corn rootworm is an products becoming adopted in the confidentiality agreements at this concurrent user access, no DRM restrictions, perpetual access rights with one-time purchase, obvious target in the market, and we $50 billion seeds and $160 billion stage. The only collaborations that and enhanced MARC records at no extra charge. Praise for the Second Edition believe microbes can provide resist- fertilizer businesses, as well as the we have announced is with Ballance ‘Highly recommended for academic and special library business collections’ ance against this pest. $50 billion crop protection and $2.5 Agri-Nutrients, the largest fertilizer 1 33 Library Journal billion specialty fertilizer markets. company in New Zealand, to jointly 0 3 0 Given the serious global issues of develop a microbial product for pas- A E ML population growth, malnutrition, There is some consumer concern ture grass. Speak to your Wiley rep today, 02 / Learn more at www.wiley.com/go/weom climate volatility, and dwindling about agricultural chemistry prod- call +44 (0)1243 843291 897 exploitable resources, do you ucts such as pesticides, even if they think that microbial consortia contain the word “bio.” What is products that enhance crop pro- your response to such concerns? 2 www.bioconsortia.com + + + Find all content of this issue plus latest market news on www.chemanager.com/en + + +