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Karen Southern

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Karen Southern karen.southern@distinctivegroup.co.uk

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Continuing shockwaves will concentrate the mind like nothing else

‘It’s great to see the industry back together!’ is this year’s CHEMUK tagline.

It is indeed – and while the Expo has only been around for four years, we’re all too painfully aware of the huge amount of upheaval thrown at the chemicals industry in that short time span. Now added to the volatile mix is the horrific situation in Ukraine, where the humanitarian disaster has sent shockwaves throughout the world.

Global supply chains have been further rocked by the war, as sanctions against Russia bite and Ukrainian manufacturing grinds to a halt. What impact will this have on the future direction of agrichemicals, for instance? Russia is the second largest fertiliser exporter in the world (together with Belarus, it accounts for over 40 per cent of global potash exports). This sudden cut-off in supply will quickly reverberate through the global food chain. Plus, with energy costs already spiralling, companies face even higher production costs in regions which rely heavily on Russian gas and oil. This could well be a huge catalyst for a switch in energy ‘loyalties’. In theory, chemical companies with a strong renewable portfolio should have access to better energy security than most, but the truth is that green investment has generally lacked focus and direction in the industry. Many businesses have a commendable long-term vision for carbon neutrality, but the struggle lies in setting out (and achieving) immediate aims. The current situation looks set to concentrate the mind like nothing else in the history of the chemicals trade, with the industry genuinely lying on the cusp of a new era. Apart from green energy, what other solutions might help ease the transition to a new normality? As Yoav Kutner of Oro Inc explains on page 50, the industry is amazing at materials innovation, but much slower at embracing digitalisation. ‘Use technology to drive growth or be left behind with an uncompetitive, vulnerable sales process’ is the stark choice he makes. Building a winning price strategy is also a key to survival. On page 58, Robert Price of Pricefx maps out how businesses can maintain focus until a degree of stability returns to the market. In much more positive news, the pioneering work of Michabo Health Science Ltd – an ‘Omics’ spinout at the University of Birmingham – will accelerate safety assessments for new and existing industrial chemicals while helping to actively phase out vertebrate animal experiments. More detail on this highly cost-effective chemical safety breakthrough can be found on page 22. Please feel free to drop me a line with story ideas and contributions at

karen.southern@distinctivegroup.co.uk.

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