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Chemical safety is a topic never far from public perception. While plastic waste is currently the biggest evil in the headlines of newspapers and social media, a newly published report highlighting the increasing concern of the scientific community over chemical mixtures is likely to bring public attention, once again, to the risks of chemical exposure.

The study is a collaboration between Andreas Kortenkamp from Brunel University in the UK and Michael Faust of Faust & Backhaus Environmental Consulting, and focuses on opinion among research chemists and chemical legislators.

Called ‘Regulate to Reduce Chemical Mixture Risk’ the analysis has now been published in the journal Science, where it notes that, “Until about a decade ago, toxicologists, risk assessors, and regulators regarded risks from chemical mixtures as negligible, as long as exposures to all single chemicals in the cocktail were below the levels judged to be safe for each chemical alone. However, an increasing body of scientific evidence has challenged this notion, showing that a neglect of mixture effects can cause chemical risks to be underestimated.”

As understanding grows of how a cocktail of chemicals can cause greater damage than the sum of their parts, regulators are beginning to consider further restrictions on the chemical industry.

As the report notes, “International bodies such as the World Health Organization now acknowledge the need for considering mixtures in chemical risk assessment and regulation. This would align toxicological risk assessment with the clinical sciences and their long tradition of investigating drug-drug interactions.”

While this may be a source of major concern for many chemical manufacturers, there is a wave of thinking that suggests that chemical safety doesn’t have to be expensive or even an added cost. Instead, innovation can make chemical safety profitable.

Innovation can make Chemical Safety Profitable.

Much of this theory is based on the idea of chemical substitution; finding innovative ways to replace toxic chemicals for safer ones. However, to do this, it is important to understand how chemical products will be mixed, used, and even disposed of.

This is an idea that has been taken up by the European Chemical Agency, and was outlined in January in a report called, the ‘ECHA’s Substitution Strategy’.

The report emphasises the importance of communication for all actors along the chemical industry supply chain. For example, that chemical raw material suppliers need to inform chemical processors of their sources, chemical end users need to inform manufacturers of their product uses, chemical producers must explain their ingredients, and so on.

As it states, “Substitution contributes to the overarching EU objectives for a non-toxic environment and a circular economy, wherein innovation and sustainable production and consumption are key elements.” Adding that, “The overall purpose of ECHA’s substitution strategy is to support informed and meaningful substitution of chemicals of concern in the EU and to boost the availability and adoption of safer alternative substances and technologies.”

To Support Informed and Meaningful Substitution of Chemicals of Concern.

The report also discusses the problems of the current chemical supply chain status quo, observing that, “On the one hand, substance-level technical knowledge is often greater among upstream manufacturers and formulators of chemicals than it is among downstream users and product manufacturers. In addition, downstream users often have much less technical knowledge about the hazard profile of specific substances. On the other hand, downstream users are likely to know the different technological possibilities to innovate and substitute the hazardous chemicals. They also have the possibility to work with their clients, who might not use the chemical but rather buy and use the articles produced by the downstream users.”

The strategy continues by noting that greater cooperation between chemical consumers and chemical suppliers can aid safety. It recommends that, “Specifications made by clients can help or hinder technical progress and innovation to substitute towards less hazardous chemicals. Similarly, final consumers (either directly or through consumer organisations) can drive demand for less hazardous products.”

The importance of this strategy was highlighted by Dr Matti Vainio, Head of the Risk Management Implementation Unit at ECHA, in a recent interview, when he said, “Substitution to safer chemicals needs to be an integral part of the research and innovation work of companies.” Adding that, “ECHA is willing to play its role in making this happen.”

Vainio is due to discuss the ECHA vision of greater communication and substitution at CIEX 2018 being held in Frankfurt on September 19^th and 20^th. The event has been created for R&D and innovation experts from the consumer, industrial and specialty chemical sectors, and is a unique platform for participants to learn, exchange ideas, and collaborate.

As Vainio notes, “In our CIEX discussions we should be able to see how innovation could be better targeted towards the use of safe chemicals, for example, with coordinated funding of research.” Adding that his talk will let attendees not only understand “… what ECHA is trying to achieve with its stakeholders by innovating to replace harmful chemicals, but also to exchange ideas on how to make money when doing so.”

Legislators are influenced by public opinion, so it is vital that the chemical industry remains proactive in prioritising safety.

The public will always be worried about toxic chemical exposure, be it through poisonous nerve agent attacks, BPA risks, or the dangers of household cleaning products. But if the scientific community is also starting to have concerns, then it is necessary for the chemical industry to react accordingly. Not defensively, with fear over the increased costs that restrictive legislation may bring, but with the understanding that the correct chemical product strategy can create a ‘win-win’ situation.

Can safer chemicals be profitable? With innovation and cooperation, then the answer is ‘Yes’.

Photo credit: MSDSOnline, OHSA, ECHA, ShareIcon, CommonsWikimedia, Iconsdb, SmileySymbol, emoji, vivilaparrochia, & Science.

When it comes to improving company performance, there are few better methods than the sharing of ideas. While business meetings, both formal and informal, are the mainstay for exchanging information, this approach is often between only two organizations or just a handful of individuals. But in today’s larger, more global business world, conferences are increasingly becoming the ‘go to’ method for sharing ideas.

Currently, the chemical industry is on the cusp of a new era, where ‘sustainability’ and ‘Industry 4.0’ are forging new paths for chemical companies. This makes the next few years a crucial time to share information to cope with these challenges.

It has become a crucial time to attend conferences.

Chemical Industry Sustainability

Take for example the 2017 Green and Sustainable Chemistry Conference that took place in Berlin last year. A 4-day event that focused on the chemical industry’s impact on the environment and how chemical companies can save money and be more ecological at the same time.

One attendee, Christina Välimäki, the VP of Segment Marketing & Research at Elsevier, noted how the sharing of ideas at the event gave chemical suppliers the best-practice methods to achieve the advantages of green and sustainable chemistry. Ultimately, they were able to establish common goals for the betterment of individual chemical producers, as well as the chemical industry as a whole.

As Välimäki notes, “The [conference] panellists all agreed on the importance of the following five principles for inspiring a more sustainable chemical industry:

* Green chemistry needs to anticipate the problems it aims to solve

* Green chemistry should not aim to justify negative perceptions of other elements of chemistry

* Break down the green chemistry silo

* Involve the circular economy into the product life cycle

* Inform the public and demonstrate the value of safe, sustainable chemistry”

Chemical Industry 4.0

Alongside the goal of sustainability, another key opportunity for the chemical industry is ‘Industry 4.0’; the notion that effective analysis of massive amounts of data can improve chemical innovation, production, supply, and sales.

In a recent interview, Sharon Todd, Executive Director at SCI, the UK-based Society of Chemical Industry, agreed that ‘big data’ has a big role to play. She noted that, “In the chemical industry in particular, data analysis offers the opportunity for vastly more efficient tools in research, formulation, and synthesis, as well as providing companies with unprecedented insight into the needs and wishes of consumers and industry.” Adding that, “Innovative strategies require that we be connected and make use of this capacity to collect and process untold amounts of data, and make these skills a part of the toolkit for every scientist entering industry.”

Interestingly, Todd will share her ideas at the upcoming CIEX 2018, being held in Frankfurt, Germany, as she will participate in panel discussions on topics such as ‘Unlocking Opportunities from the Bio-Economy’ and ‘Capturing New Global and Regional Opportunities’.

The CIEX 2018 event covers a wide range of topics affecting the chemical industry and includes speakers and panellists from key influencers such as BASF, Covestro, Cefic & DowDuPont.

When Todd was asked further about her eagerness to participate at CIEX, it became clear that she also believes in the value of conferences for exchanging ideas, as well as sharing the challenges (and solutions) facing today’s chemical industry.

Todd understands that a key part of rising to those challenges involves innovation, and she sees the CIEX event as a tool for exchanging novel ideas. As she states, “CIEX aims to explore cutting edge innovation in the rapidly evolving chemical industry and provides excellent opportunities for networking and learning best practices. It is critical to connect chemical producers and users to facilitate innovations to be commercialised successfully. Knowing your customer and having an intimate relationship with your supplier allows a collaborative and positive approach to new product development and launch.”

Adding that, “The high-quality innovation led programme showcasing developments & initiatives by leading companies combined with excellent networking opportunities make CIEX 2018 a stand out event.”

Clearly the exchanging of ideas remains essential for the wellbeing of the chemical industry, as all technological advances are based on the foundations of earlier research; ‘Standing on the shoulders of giants,’ as Newton put it. And when it comes to business, nowhere can this be done better than at an event such as CIEX 2018, because without sharing, chemical industry innovation stagnates.

­­CIEX is the premier event created for R&D and Innovation experts from the consumer, industrial and specialty chemical sectors. Every year, CIEX brings together all players across the value chain to create a unique platform for participants to learn, exchange ideas, and collaborate. This year, CIEX is scheduled to be held on September 19-20 in Frankfurt, Germany.

Connect, discuss and discover the most compelling ideas emerging globally with an unmatched group of innovators from companies such as Merck, DSM, BASF, Cefic, Lego, IKEA, DAW SE, Avantium, Evonik, Unilever, Covestro and many more!

You can view the conference agenda and speaker panel at: https://ciex-eu.org. SPOTCHEMI partners and subscribers get 15% off. Use promo code SPOT15.

­­Photo credit: CIEX 2018, Pixabay

The handy website XmasClock.com tells us that we are over halfway through the year to Christmas. But before anyone starts panicking over what presents to buy, it is time to take stock on this year’s chemical industry progress. How has it performed over the last few months, and what does that tell us about the future for chemical production and supply?

How has the Chemicals Industry Been Performing?

While the chemical industry gave investors returns equal to other sectors from 2012 to 2016, the past two years have begun to show massive increase in return from investment. As chemical industry consultants as McKinsey noted in report from May 2018, stating, “Since mid-2016, chemical total return to shareholders performance has taken off again, posting a CAGR of 24 percent, compared with the world market’s 19 percent. The principal reasons have been a combination of a sharp increase in M&A activity across the chemical industry, which investors have generally supported, and a more favourable supply–demand position for petrochemical producers that has generated strong earnings growth.”

How is the Chemicals Industry Doing Now?

Most financial investors agree that the chemicals industry is in a strong position. As chemical industry experts at the investment consultancy Zacks noted in a recent report, “The chemical industry is riding an upturn in the world economy and continued strength across major end-use markets such as construction, automotive and electronics. Another positive for the industry is a recovery in demand in the energy space – a key chemical end-market that had been out of favour for a spell.” Adding that, “The recovery has also been driven by the rebound in crude oil prices from their historic lows.”

Beyond oil price fluctuations, other factors have also been in play to create the chemical industry’s strong position. These include:

The Return of the EU Chemical Sector

The European chemical industry has been in much better health following years of stagnation. This is largely due to improved economic growth in the Eurozone, which has brought with it increased consumer confidence and lower unemployment.

The recovery is evident in data from Cefic’s June 2018 report (pdf), which states that, “Production in the EU chemicals sector grew 1.9% from January to March 2018 compared to the same period of 2017. Producer prices were above the previous year’s level, growing 2.5% in the EU chemicals sector from January to March 2018 (y-o-y).” Additionally, “EU chemicals exports reached a value of €26.4 bn through February of the current year, rising by 1.5 bn (+5.8 per cent) compared to the first two months of 2017.”

Increased Chemical Industry Investment

In an industry famous for requiring high levels of investment the fact that large capital expenditure projects are going ahead shows signs of a healthy industry, especially in America. As Zacks notes, “The shale gas boom has incentivized a number of chemical companies including industry heavyweights such as BASF and LyondellBasell to invest billions of dollars to beef up capacity. According to the American Chemical Council (ACC), roughly 320 chemical projects have been already announced worth more than $185 billion, 62% of which is foreign direct investment.” Adding that, “The ACC expects chemical industry capital spending to rise 6.3% in 2018 and 6.8% in 2019 and eventually reach $48 billion by 2022.”

M&A’s Showing Value

The large number of mergers and acquisitions that have occurred over the past few years are also now bearing fruit. Cost-cutting measures such as plant closures and reduced staffing, as well as synergy opportunities and economies of scale are all aiding chemical industry growth.

US Chemical Industry Recovering

The US chemical industry had a difficult 2017, with hurricanes Harvey, Maria, and Irma causing an estimated $200 billion worth of damage. Harvey was particularly damaging, as it flooded Houston and much of its petrochemical base, although all 17 named storms of that year caused infrastructure damage, as well as affecting production, imports and exports.

With the Autumn 2017 hurricane season now passed, the industry has now generally recovered, and business is back to normal. The ACC is now predicting US chemical industry growth for 2019 of 3.9%.

You can read more about the Chemicals Industry’s Future on SPOTCHEMI‘s parent company AG CHEMI GROUP‘s blog page.

The Year Ahead for Chemicals

Chemical Industry Challenges

But despite the positive news of progress and expansion in the global chemical industry, there are still worries among chemical industry producers. For example, there is concern over a recent spike in raw material prices, with the supply chain from American suppliers having only just recovered from the hurricane season, whilst China’s ‘Blue Skies’ policy is also affecting basic chemical output.
There are also concerns over China’s general economic well-being, as recent years have seen a dip below the double-digit growth of the previous decade coupled with fears of a housing bubble.

Zacks also acknowledges potential problems in agrichemical markets, noting that, “Chemical makers also continue to feel the pinch of depressed demand in agriculture markets. Sustained pressure on agricultural commodity prices is scuttling a meaningful recovery in this key chemical end-market. The outlook for the fertilizer and agricultural chemicals space remains cloudy due to continued weakness in crop prices, low farm income and sluggish economic conditions in certain emerging markets, including Latin America.”

Fears of a global trade war are also present, especially following June’s G7 summit.

The Chemical Industry’s Bright Future

Despite these bumps in the road ahead, the chemical industry has gone from strength to strength over the past two decades, even bouncing back strongly after the 2008 financial markets depression. As a result, the industry is likely to continue its upward trend in increasing output, value, and research levels.

Even in the short term with the threat of a trade war looming, predictions remain upbeat. As Zacks notes, “While the chemical industry still faces a few headwinds, its momentum is expected to continue this year on sustained demand strength across light vehicles and construction markets, a rebound in demand in the energy place and significant shale-linked capital investment. Strategic actions including expansion of scale through acquisitions, operational efficiency improvement and continued focus on cost and productivity should help chemical makers weather the macroeconomic and industry-specific headwinds in 2018.”

You can read more insights into the chemical industry and chemical industry markets at the SPOTCHEMI blog page.

Photo credit: TheManufacturer, Euractiv, AGCHEMIGROUP, Stiavelli, & Bilfinger