Fecc newsletter July/August 2013 by FeccEurope

Inside

newsletter issue 7 - July/August 2013

with

click a web ble links

2 Members News 4 Fecc Activities 6 EU Chemicals Legislation 8 GTDP 10 International Trade 11 EU & Other News 11 Trends & Statistics

New Fecc Membership Benefits leaflet available

ecc is delighted to share with you a new version of the Fecc Membership Benefits leaflet. The leaflet lists and explains the benefits of becoming an Fecc Member. Members benefit from: • representation before the European Institutions • receive regular updates and advice on relevant industry topics • access key information via, newsletters, publications and guidance documents • enjoy an unrivalled networking platform

Read more on page 8

Deloitte: M&A provides growth catalyst for chemical industry in 2013

espite challenges associated with energy and feedstock volatility and regulatory policies, the global chemical... Read more on page 10

Happy Holidays! Next issue: September 2013 The Fecc offices will be closed 15 & 16 August www.fecc.org

Members News Barentz opens new office and announces new collaboration Barentz opens an office in South Africa

n July 2013, the Barentz group will open an office in Johannesburg. “South Africa is a growth market for us and up until now, we have done business in South Africa through our European offices. Currently we are involved in so many projects in the Sub Saharan Region, that an own office is inevitable. We will represent Nu-Tek in the region and that is just the first step in the synergies we intend to leverage from our current network of suppliers.” says Hidde van der Wal, CEO of the Barentz group. As of 2014, a new law will be introduced in South Africa, forcing food companies to reduce the amount of sodium in their products with 20-25%. This new legislation creates opportunities for salt replacing food & nutrition solutions and with the reduced sodium and salt replacement solutions of Nu-Tek, Barentz and Nu-Tek see great potential in this market.

Barentz collaboration with Zamek Food Ingredients Barentz proudly announces its partnership with Zamek Food Ingredients from Germany, offering a comprehensive range of high-quality base HVP (hydrolysed vegetable proteins) products for applications in the savoury food industry, such as soups, sauces and meat products. Zamek has a long history in producing hydrolysed vegetable proteins, applying state of the art process technology. Barentz will be responsible for the sales, marketing and distribution of the Zamek HVP products in all Barentz Central, Eastern and Southern European countries. This collaboration will further strengthen the Barentz’ Food & Nutrition ingredients portfolio for its customers in the savoury industry, and will create opportunities for new and innovative HVP solutions for the Barentz customers.

Micronized marble dust with whiteness grades of 98-99% – for that extra touch of “extra white”

ordmann, Rassmann has expanded its range of functional fillers to include the natural calcium carbonates of its new Spanish partner, Triturados Blanco Macael (TBM). TBM produces ultrapure, micronized marble dust with whiteness grades of 98 – 99%. The company sources its marble from natural quarries located in the Almeria province of southern Spain, where it is strip-mined and then processed directly on site. The grain sizes of the micronized varieties of MICROBLANCO MACAEL 1, 2, 3 and 10 are in the D50 range of 2.5 - 10 µm. As functional fillers, Microblanco products serve another important role in dispersion based systems. Their exceptional

whiteness means that the amount of TiO2 used in various formulations can be reduced, leading to the significant optimization of production costs. M i c ro b l a n co products can be used in a markedly wide range of applications such as emulsion paints, varnishes, coatings and printing inks. Use as white fillers in adhesives and sealants, as well as in polymer-bound artificial stone paving tiles (e.g. imitation marble), is also possible. Additionally, they can be incorporated into thermoplastic materials, rubber and both soft and/or hard PVC.

30 years of partnership with AsahiKasei

Nordmann, Rassmann and AsahiKasei have reason to celebrate: the Hamburg firm and the Japanese manufacturer of engineering plastics (including polyacetal resins and polyamides) have supported one another in a successful business relationship for more than 30 years. Both companies are looking forward to many successful years in future.

IMCD Coatings further invests in its technical capabilities

MCD Group announced two significant developments for its Coatings Business Group; a 50% expansion of its Coatings laboratory in Cologne and its new collaboration with French laboratory BioPreserV. Speaking about this new laboratory expansion in Cologne, Dr. Sami Valkama, Technical Manager IMCD Coatings, commented: “This will allow us to focus more on decorative coatings and construction applications in the future and will also provide the opportunity to enhance our technical support for customers and suppliers through the recruitment of further resource.” In addition to this expansion, Dr. Valkama was also pleased to announce a new collaboration with BioPreserV in Grasse, Southern France. This laboratory will be primarily dedicated to the French market and will cover architectural and industrial coatings with a special focus on coating additives and microbiological studies. On top of the four already existing technical centres, this cooperation reinforces the technical competence of IMCD and the company’s dedication to bring value to its products. More information: www.imcdgroup.com

CBA publishes report on twenty years of RC

he report titled, ‘Twenty years of progress for the UK supply chain’ celebrates the contribution of Responsible Care to the industry. Over this period, the programme has delivered a remarkable improvement in the supply chain’s management of health, safety, security, and the environment. The report was published on the summer edition of Outlook, available on: www.chemical.org.uk www.fecc.org

Members News SCHOD CR informs about their latest activities

CHOD CR, the Czech Association, underwent some organisational and other changes, during the first half of 2013. The General Assembly approved and confirmed these changes to the Board and gave impulse to the modernisation and simplification of the SCHOD CR web sites. Member companies have activated the access to the Responsible Care Programme. Currently 65% of members (nine companies) fulfil the Responsible Care principles, all of them demonstrate progress towards protecting the environment and have been repeatedly certificated. The other two companies met the criteria and are at the stage of evaluation of auditors and preparation for the public defence. The remaining three member companies entered into the commitment to join Responsible Care Programme, one of which fulfilled a significant part of it. It can be said that 100% of the SCHOD CR at various levels are involved in the Responsible Care Programme. Visit the new website on: www.schod.com

AECQ welcomes new members and announces III national congress

ECQ, the Spanish Association welcomes four new members. The Board of directors announced that UNIVAR IBERIA, S.A., DROGAS VIGO, S.L, QUIMICOS Y DERIVADOS DEL CLORO, S.A. and INTERFAREBA, are the latest companies to join the association. This increases the representation of the association and brings it closer to its objective to represent 100% of the Spanish chemical distribution industry. The Responsible Care (RC) Committee of the AECQ has authorised the use of the RC logo, to their company members: AZELIS ESPAÑA, S.A., CALDIC IBERICA, S.L., COMERCIAL DE PRODUCTOS QUIMICOS, S.A., DROGAS VIGO, S.L., GLOBAL QUIMIA, S.L. and IMCD ESPAÑA ESPECIALIDADES QUIMICAS, S.A. Following the success of the first two editions, AECQ will organise the III national chemical distribution industry congress. The congress will take place on November 20, 2013 and will focus on the keys to success for an optimistic future.

AkzoNobel Q2 results 2013

kzo Nobel N.V. reported a 4 percent decrease in revenues in the second quarter compared with the same period last year. This was due to divestments and adverse

currencies against a backdrop of continued challenging market conditions. Operating income for Q2 was 17 percent lower at €322 million. Net income attributable to shareholders for the quarter rose to €429 million, buoyed by recognition of a deferred tax asset and profit on the divestment of Decorative Paints North America. The acceleration of AkzoNobel’s performance improvement program is on track to achieve the full EBITDA benefit of €500 million by the end of this year, whilst additional charges are expected in the second half of the year as restructuring activities are stepped up. More information and all the figures can be found on: www.akzonobel.com

Brenntag announces further expanding of their distribution agreement with Evonik Industries

renntag announced that from 1st July 2013, it will distribute the full range of products from Evonik Household Care in Czech, France, Germany, Italy and Poland. This adds to the distribution agreement between Brenntag and Evonik Household Care in 18 other European countries announced at the end of 2012. The agreement covers the full product portfolio of the business line “Household Care” from Evonik’s business unit “Consumer Specialties”, which is a global leader in the manufacture and supply of raw materials and additives to the household, detergent, car care and industrial & institutional markets.

BASF maintains good business performance in first half of 2013

ASF increased sales by 3% in the second quarter of 2013 to just under €18.4 billion thanks to higher sales volumes in all segments. Income from operations (EBIT) before special items decreased by 5%, to around €1.8 billion. In the first half of 2013, sales reached around €38.1 billion, surpassing the level of the previous first half by 4%. EBIT before special items increased by 3% to more than €4 billion. “In light of the challenging conditions, our business performed well in the first half of 2013. Our business with crop protection products contributed substantially to sales and earnings growth. Earnings rose considerably in the Functional Materials & Solutions segment. Higher volumes in the Oil & Gas segment also boosted sales and earnings development,” said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE. More information: www.basf.com www.fecc.org

Fecc Activities Fecc announces change of date for the Fecc Save the Congress Rome 2014 date! Fecc Save the date 26-28 May, 2014 Membership he European will be able to learn M e e t i n g TChemical Association of and discuss the latest Distributors trends in our industry. 2013 (Fecc) has changed the date for its 2014 annual congress to 26-28 May. The Fecc Annual Congress is the leading event for the European chemical distribution industry and a key date in the European chemical industry’s calendar. Hundreds of delegates, from business leaders to stakeholders, attend every year.

Ample networking opportunities will be available for the delegates to generate new business and reinforce existing relationships,” said Uta Jensen-Korte, Director General, Fecc.

More details regarding the programme and sessions will be announced in autumn. Fecc looks forward to welcoming the leaders “Following the great success of the of our industry in Rome. 2013 congress, we’re excited to prepare and host the Fecc congress in Rome. This change is due to a conflict of dates As always at the congress, attendees with other industry events.

13 November

ecc is holding its annual Membership Meeting and Gala Dinner on 13 November. The meeting and evening reception will take place at the Sofitel Le Louise Hotel, Brussels. During the General Assembly the Fecc working committees will present their latest achievements and objectives. The afternoon programme, theme and speakers will be available shortly.

Save the date! Fecc Membership New Fecc Membership Benefits leaflet Meeting 2013 available

ecc is delighted to share with you a new version of the Fecc Membership Benefits leaflet. The leaflet lists and explains the benefits of becoming an Fecc Member. Members benefit from: • r e p r e s e n t a t i o n before the European Institutions • receive regular updates and advice on relevant industry topics • access key information via, newsletters, publications and guidance documents • enjoy an unrivalled networking platform

• raise their company’s profile • enjoy reduce rates for the congress, seminars and workshops Inside you will also find key information on our association’s mission and objectives, working committees and membership categories. The leaflet is available for download on: www.fecc.org To receive hard copies of the leaflet, please contact Fecc’s Communication Manager Camila Diaz at: cdi@fecc.org

Fecc in the News

ou can now keep updated on all articles related to Fecc, published in various media outlets. Visit the section Fecc in the press on our website www.fecc.org to learn more.

13 November

Meetings in Brief 15-17 July – Fecc Director General Uta Jensen-Korte, visited member companies Lanxess Distribution and Stockmeier. She also visited potential member CG Chemikalien. Dr. JensenKorte likes to thank the companies for their hospitality. www.fecc.org

Fecc Activities Fecc Board ollowing the retirement of Harry Van Baarlen (Brenntag) and the end of term of previous Vice-President Enea Marchesi (AssICC); the Fecc General Assembly, ratified the appointments of Gordon Hay and Girgio Bonetti as Board members. Gordon Hay is Brenntag’s Operations Director Europe and Girgio Bonetti is member if the Governing and Executive Council of the Italian Association AssIC.

©Shutterstock/Pressmaster

BONETTI Giorgio - AssICC (Italian Association) ERICSSON Ann-Christin - P&K (Swedish Association) HARKE Thorsten - Harke Group HAY Gordon - Brenntag PARELLA Eduardo - Quimidroga DU PASSAGE Francois - UFCC (French Association) STEINBACH Peter - VCH (German Association) VIÑAS Ramon J. - AECQ (Spanish Association) VERONELLI Nathalie - Eigenmann & Veronelli

The Fecc Board consists of twelve members, six company representatives nominated by the Consultative Assembly of Company Members and six members appointed by the Consultative assembly of National Associations. Members of the Board: President: NORDMANN Edgar Nordmann, Rassmann GmbH Vice-President: PRIOR Neville - CBA (UK Association) Fecc Treasurer: SKOU Peter - R2 Group Fecc Director General: Uta JensenKorte A/S

Committee News GTDP

SHE

EXCiPACT – Next Training course, ecc organised its latest SHE 7-8 October 2013 Brussels committee meeting on the 4 July he next 2-day EXCiPACT™ 2013 in Brussels. The meeting was Training Course will be held 7-8 chaired by Michael Paetzold. The 15 October in Brussels participants exchanged at Fecc. More details views on actions and registration to support SMEs in information is preparation of the 2018 available at the registration deadline EXCiPACTTM website – and on the Commission www.excipact.org REACH review workshop and they were informed about the latest ENES platform International Trade outcomes. T Committee meeting – Russia and surrounding region of influence – 14 The nitric acid re-classification and its November 2013 potential impact on the Seveso sites The next IT committee meeting will was introduced and it was agreed be held at Fecc in Brussels on 14 to closely follow its developments. November 2013. The meeting will Finally the EU consultation regarding focus on Russia and the surrounding occupational safety and health policy region of Russian influence. The framework was presented. meeting will feature invited trade specialists as well as distributors The minutes of the meeting have been doing business in the region. For more circulated and are available on request information contact Joel D’Silva. Contact Ophélie Roblot. Shutterstock/photobank.kiev.ua

Join the Fecc Communications Network

ecc would like to invite you to the first Fecc communications network meeting on Monday 16 September 2013 at the Fecc offices in Brussels, from 11:00 to 16:00. The purpose of this network is to bring together communication and marketing professionals from the chemical distribution industry to discuss issues of mutual interest. Share the needs and challenges faced when carrying out communication and marketing activities and what Fecc can do to address them. In the first meeting we will discuss topics of interest and activities that can be prepared around them. We will also focus on defining the network and setting out clear aims and visions. If you are interested in attending this meeting, please contact Fecc Communications Manager, Camila Diaz cdi@fecc.org before 2nd September.

ICIS top 100 chemical distributors 2013 Published

CIS Chemical Business magazine has unveiled its annual ICIS Top 100 Chemical Distributors listing ranked by 2012 sales. The ICIS Top 100 Chemical Distributors is a global ranking based on total sales. Separately, it also lists leaders in key geographies such as North America, Europe, Asia, Latin America and Middle East & Africa based on sales in those regions. The listing also goes beyond the Top 100 companies by sales. This year we provide details on 213 chemical distributors around the world. To download the publication: www.icis.com www.fecc.org

External Events Produced by:

Co-produced by:

The 2nd ICIS European Surfactants Conference Thursday 12th & Friday 13th September 2013 • Radisson Blu Royal Hotel, Brussels, Belgium

Conference sessions this year include: • A world first in packaging – tackling the plastic pollution problem • Feedstock outlook – oleochemicals and petrochemicals – will volatility characterise the next 12 months? • Surfactants and enzymes – friends or foes?

• Key trends and developments in European personal care markets • A closer look at the European detergent market – what is the outlook? • Eastern vs Western Europe – reviewing consumption levels and growth forecasts • Economic outlook for Europe – is it all doom and gloom for the next 12 months?

For more information and to register your place, 8 www.icis.com/europeansurfactants or & +44 (0) 20 8652 3887.

• Latest technological developments – production of biosurfactants using bio-ethylene

Speaker representatives have already been confirmed from companies including: • ECOVER • IP SPECIALTIES • EOC SURFACTANTS • EUROMONITOR INTERNATIONAL • KOLB GROUP • INDIA GLYCOLS • TOYOTA TSUSHO CORPORATION, JAPAN • UOP With more to be announced shortly… Spotlight Sponsor:

Co-Sponsor:

Media Partners:

When registering please quote promo code FECCEU1

EU Chemicals Legislation REACH Review workshop - report

he European Commission organised • fees do not make the difference) a workshop on the REACH review some proposals: on 27 June 2013 in Brussels. Main topic • Fees based on the production of discussions covered the quality of volume the registration dossier, SMEs and • Payment of fees by instalment Downstream users. • Subsidies • Funding from EU financial The Commission and ECHA were/are institutions to overcome liquidity looking for real case/experience which problem happened for the 2010 and 2013 • Is industry willing to provide preparation in order to find solutions. rebates to smaller companies? The aim of the workshop was to get • Issue related to SIEF: unfair cost stakeholders opinion and to involve sharing. them to prepare 2018. • Need for more prescriptive Key conclusions: guidance on data sharing. Dossier quality: • Set up an official body against • Keep resources for regular updates. discriminatory practices (UEAPME) • Every intermediate dossier has been • Misuse of SIEFs, possible to have a screened. Intermediates: 90% of legal act to respond to that. dossiers updated after letters sent • In several cases guidelines took over • 67% of dossiers examined were not the role of the regulation in compliance. • Cumulative costs of registration for • ECHA evaluation of dossiers used to several regulation (biocides + REACH improve data quality: etc) • Selection of dossier for compliance • Consultants: ECHA proposal to train check: Mix of random and concernthem under reflexion based selection and mix of full and • Guidance in a nutshell on targeted compliance check. Target registration available in September specifics parts of dossiers where • Communication with SMEs remain safety matters. difficult, how to reach them? ECHA • Screening of all dossiers: substance rely on the others closer from SMEs. ID, intermediate status and identify poor entries of insufficient DUs: justifications • SDS cloud management, update in • Cost for SMEs to submit quality time, lots of advantages BUT… no dossiers (need support from who?) evidence of reception • Need for targeted guidance for SMEs • MS: national plan to reach the because they use them more than unreachable involved several actors the text law (ministeries, chamber of commerce, SMEs: UIC etc), leaflet without REACH in • Cost is an issue for SMEs (reduced the title ‘How to deal with chemical

• risks’, to meet locally the companies • Some DU disagrees with the finding from the REACH review that REACH does not overlap with others EU legislation ( end of life vehicle directive for instance) • RMM/OCs often too general and restrictive • Response: ENES, CSR/ES roadmap (publication mid-July), • Work plan: • Short term: short titles, link between CSA and ESs, guidance and exemplifying safe use info for mixtures • Medium Term: harmonisation/ standardisation of safety phrases, improve communication to end users • Long term perspective: facilitate the effective use of REACH info by DUs to comply with their obligations under other legislations More detailed conclusions are available on the document: Following up the Review of REACH which can be downloaded from the SHE Committee page on the Members Area of the Fecc website. The slides from the workshop have been published on the Commission website, along with the link to the web streaming-recording: ec.europa.eu For more information on EU Chemicals Legislation contact: Ophélie Roblot +32 (0)2 679 02 60 oro@fecc.org www.fecc.org

EU Chemicals Legislation ECHA has published the CSR/ES Roadmap

Five specific action areas are: • Increase common understanding among stakeholders • Information inputs for the chemical safety assessment • IT tools and standardization • Support to formulators • Support to end-users ©Shutterstock/yvon52

CHA published a roadmap towards enhancing the quality of information communicated in the exposure scenarios included in the REACH chemical safety reports and in the extended safety data sheets. These documents hold essential information on the safe use of chemical substances and mixtures for downstream users, authorities and REACH registrants alike. The roadmap is a collaborative effort of ECHA and its stakeholders and ECHA now calls for more stakeholders to join in.

Pre-registration phase for Croatian companies began on 1 July

rom 1 July, the REACH and Classification, Labelling and Packaging Regulations also apply to companies established in Croatia. Croatian manufacturers, importers and producers of articles have a special pre-registration period for their phase-in (existing) substances. This period started on 1 July 2013 and lasts for six months ending on 1 January 2014. Pre-registration is required for Croatian companies to benefit from the extended registration deadlines of 2014 and 2018 foreseen for phase-in substances.

ECHA, some member states (Germany, France, Italy, Netherlands, Poland, Romania, UK) and Industry associations (Cefic, Fecc, DUCC members, Concawe, Eurometaux) have signed/will sign the The Press Release: echa.europa.eu Dedicated section on ECHA website: charter to commit themselves to work The CLP Regulation requires companies to submit a notification on their CLP on the roadmap actions. echa.europa.eu

ECHA publishes two new Guidance documents concerning biocides CHA has published G u i d a n c e on information requirements for biocides and on active substance suppliers. The two new guidance documents are applicable from 1 September 2013, the date of entry into operation of the Biocidal Products Regulation (BPR). The aim of the Guidance on information requirements is to provide detailed and practical direction on the study data and other information that should be submitted, when applying for active substance approval or authorisation of biocidal products according to the BPR. Some of the major differences from the previous BPD guidance include harmonisation with guidance from other legal frameworks when applicable (for example, CLP, REACH and the Plant Protection Products Regulation) and a more formalised and systematic approach for accepting adaptations to information requirements, with Member States having to inform and

©Shutterstock/blackdaliya

assist applicants with adaptation requests. The present guidance document only covers the information requirements for chemical active substances and chemical biocidal products (i.e. covering Title 1 of Annex II and III of the BPR).

classification to the Classification and Labelling inventory one month after a substance has been placed on the market. The one-month period is calculated from the date a substance is placed on the EU market. Companies established in Croatia are now required to submit a classification and labelling notification within one month of placing their chemicals on the market. In practice, this means that all substances on the Croatian market on the date of accession to the EU need to be notified by 1 August 2013.

Fecc HSE Manager spends one week at Brenntag France

phélie Roblot, Fecc HSE Manager, Guidance on information requirements spent a week in July at the Brenntag for substances of concern in the biocidal product, Guidance on micro-organisms headquarter office in Chassieu. She was and Guidance on nanomaterials will be welcomed by Céline Ruer, Brenntag’s France Director Security and environment separately available later.

/ HSE Manager and her team. She had the opportunity to see the daily operations of a distributor. While visiting two Brenntag sites (Rhônes-Alpes and Andance) she had the chance to see a driver unloading at a customer’s premises, meet people from the health-security, environment, quality, commercial and legal departments. Ophélie would like to thank Brenntag for this opportunity which is definitely an The Guidance document can be added value to better understand the found on the ECHA webpage/Biocides distribution business and to represent the Guidance documents echa.europa.eu industry’s interests.

The Guidance on active substance suppliers explains the obligations for companies under Article 95 of the BPR. It provides guidance on who has to submit the required information under Article 95 to ECHA, which information has to be submitted and guidance on the regulatory consequences.

www.fecc.org

GTDP EXCiPACTTM – First Certificates issued by Argentina updates list of colour mdc Germany he EXCiPACT™ Association is Certification Standards. additives permitted TGerman delighted to announce that two manufacturers/distributors The award of these first certificates in cosmetics represents an historic landmark for the EXCiPACT™ Association in fulfilling its plans to become an internationallyrecognised, free-standing, not-forprofit company later this year. It also concludes the pilot phase of the project in which the Scheme details were extensively checked and tested to ensure that the standards could be implemented as intended.

r g e n t i n a ’ s regulatory authority has updated its list of colour additives which will permit previously prohibited substances in perfumes, personal care products and cosmetics.

EXCiPACT™ Certification demonstrates that these organisations manufacture and distribute pharmaceutical excipients according to the EXCiPACTTM Source: Good Manufacturing Practices (GMP) and Good Distribution Practices (GDP) Source: EXCiPACT™ - www.excipact.org cosmeticsdesign.com

©Shutterstock/Nino Cavalier

have received the first EXCiPACT™ Certificates issued by mdc -medical device certification GmbH - one of their internationally-recognised Certification Bodies.

New requirements for active substances EU Cosmetics (ASs) imported into the European Economic Regulation becomes Area – HMA and MHRA update fully applicable

According to the UK MHRA for Imports transiting Germany; • When the ASs first enter the EU and transit other Member States before they arrive in the UK, the UK based importer will need to comply with the requirements of those Member States and may need the assistance of locally-based importers. • If an AS is imported via Germany under the second waiver, the import requirements are applied at the border. • In this case, the importer must apply to the relevant competent inspectorate in Germany for a ‘72a Certificate’. As part of this application, the importer will have

©Shutterstock/Shutova Elena

he Heads of Medicines Agencies (HMA) has released a guideline document outlining the Falsified Medicines legislation and the process of API import from Third Countries (published 1 July 2013). The UK MHRA has also further elaborated on the process.

• to provide written justification to the German inspectorate for the absence of a Written Confirmation and include a copy of the GMP certificate. • The importer who applies for the ‘72a certificate’ is normally based in Germany and will contact the local German inspectorate to clarify details.UK importers are advised to arrange such imports in conjunction with a German importer. If the local process is not followed, it could result in consignments being held in Germany. For more information and the HMA guidance document see - www.hma.eu and www.mhra.gov.uk

India health ministry adds new products to Cosmetics Act

he India Health Ministry’s Drug’s Technical Advisory Board has added a list of six new product categories to schedule S of the drugs and cosmetics act. Source: cosmeticsdesign-asia.com

n July 11, 2013, the new EU Cosmetics Regulation 1223/2009 became fully applicable. The Regulation, already adopted on November 30, 2009, provides a unified and consolidated framework for the marketing and distribution of cosmetic products on the EU market. It enters into force following a period of transition allowing industry to adapt to the new rules.

©Shutterstock/Olgysha

Earlier this year, the final stages of an animal testing and marketing ban for cosmetic products placed on the EU market entered into force on 11 March 2013. As a result of the new Regulation becoming fully applicable, the old cosmetics directive 76/768/EEC is also repealed. For more information see – European Commission- europa.eu www.fecc.org

GTDP Provisions relating to the import of Active Mexico Amends Pharmaceutical Ingredients in the Falsified API Manufacturing Medicines Directive Regulations to Meet Update from the Commission – June 2013 EU Requirements

n update document is available from the General Secretariat of the Council of the European Union (19 June 2013) pertaining to the progress of the Falsified Medicines Directive.

According to the update document to date, twenty infringement proceedings have been launched against those Member States which have not notified the Commission the national transposition measures taken to comply with the Falsified Medicines Directive. Since then, 9 Member States have notified transposition measures and the Commission is currently analysing these measures. The Commission has official information from all important active substance exporting countries that they have started issuing the “written confirmation”, unless they have been “listed” by the Commission in accordance with Article 111b of Directive 2001/83/EC. Commissioner Borg visited India and China in April and June 2013 to seek the cooperation of the local competent authorities. India has issued over 110 written confirmations (out of 190applications). China started issuing written confirmations in mid-June.

Taiwan, South Korea, Israel, Ukraine, exico’s Ministry of Health South Africa, Singapore and Argentina has updated the country’s have also started issuing the “written confirmation”, while Canada, Mexico, requirements on Good Manufacturing (GMPs) for active Russia, and Turkey are expected to Practices pharmaceutical ingredients (APIs). start shortly. The new GMP requirements come The Commission has intensified the into force with immediate effect and “listing activities” under Article 111b are mandatory for all establishments of Directive 2001/83/EC. Switzerland, engaged in the manufacture and Australia, the Unites States and Japan distribution of APIs. are now listed. These countries will be able to export to the EU without With this Mexico believes that it has written confirmation. In addition, for met the requirement for API exports Brazil, the equivalence assessment to the EU under the EU Falsified is on-going. Israel and Singapore are Medicines Directive, which comes into modifying their legislation to be re- force on 2 July 2013. considered for listing. Source: Cofepris: www.cofepris.gob. Argentina, Mexico and Malaysia are mx information on: www. expected to apply for listing later this More year. To prevent shortage of medicines, drugregulations.org Member States have the possibility to allow active substances to be imported from a third country if accompanied by an EU good manufacturing For more information on GTDP practicecertificate. To date, Italy, Spain and the United Kingdom have contact: communicated to the Commission Joel D’Silva +32 (0)2 679 02 62 their intention to use this exception. jds@fecc.org Source: Council of the European Union - register.consilium.europa.eu

www.fecc.org

International Trade Brazil chemicals trade deficit seen at record despite depreciation

Russian chemicals trade body to create chemical products database

EU and Moldova conclude Deep and Comprehensive Free Trade Area

he Russian Chemists Union (RCU) is to create a Russian language database of chemical products and post it on its website, according to the International Confederation of Chemical Associations (ICCA). The initiative builds on a meeting in April organised by the RCU and BASF to help promote the chemical industry’s voluntary Global Product Strategy - a key part of its contribution to the UN’s goal of achieving safe management of chemicals accross the globe by 2020. Source: chemicalwatch.com

©Shutterstock/Rashevskyi Viacheslav

©Shutterstock/vinz89

razil’s chemical products trade deficit reached $4.3 billion during the first 2 months of this year, according to figures released by Abiquim (São Paulo). The deficit increased by 16.8% compared with the first 2 months of 2012. Brazil, during this period, imported $6.6 billion in chemical products, an increase of 11.4%. Exports stood at $2.3 billion, only a 2.4% increase compared with January and February of last year.

he DCFTA will bring Moldova’s economy closer to that of the EU. The DCFTA consists of 14 chapters; it will provide for a significantly improved mutual access for European and Moldovan goods and services. Furthermore, it will ensure an open, stable and predictable legal environment for the benefit of Moldovan businesses and consumers. The DCFTA will improve the trade opportunities between EU and Moldova and enhance prosperity of both economies.Source: DG Trade - trade.ec.europa.eu

espite challenges associated with energy and feedstock volatility and regulatory policies, the global chemical industry is poised for modest growth in 2013 with merger and acquisition (M&A) activity likely to be a key factor in helping companies achieve top line growth. According to a new report from Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group, 2013 Global Chemical Industry Mergers and Acquisitions Outlook, the global chemical industry is experiencing a portfolio realignment putting increased pressure

on companies to find new growth markets.

©Shutterstock/ Alexandra Ignatyeva

Indonesia to regulate Deloitte: M&A provides growth catalyst for certain chemicals in chemical industry in 2013 toys

Source: www.bnamericas.com

he Indonesian government is to impose limits on phthalates, formaldehyde and azo dyes in toys, manufactured domestically or The report identifies multiple factors imported, from October. driving growth of M&A activity around the world particularly for North According to the Decree on America, Europe, and China including implementing standards for toys (No. new markets, shale gas discoveries 24/M-IND/PER/4/2013), the inclusion and the progression of the Advanced of phthalates cannot be over 0.1% for Materials Systems industry. This is in toys of certain materials manufactured spite of continued Eurozone concerns or imported into the country. It also and slow recovery in other mature specifies that formaldehyde in certain markets. toys cannot be more than 20ppm, and For the report see: www.deloitte.com that no azo dyes are permitted in most of the toys covered by the decree. There will be additional technical guidance issued in October to explain the classification of phthalates derivatives, according to the Ministry of Industry, which regulates toy products in the country. Industry Outlook Survey Source: Chemicalwatch PMG International takes an in-depth look at the global chemicals and For more information on performance technologies industry by focusing on the results of KPMG’s International Trade contact: 2012 Industry Outlook Survey. This annual survey polls chemicals industry Joel D’Silva executives from the US, Europe, and the Asia Pacific region. The survey covers +32 (0)2 679 02 62 the industry outlook for business conditions, M&A, capital spending, revenue, jds@fecc.org headcount and other key categories across the three regions. For the survey and report see: www.kpmg.com

KPMG – 2012 Chemicals and Performance Technologies

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EU & Other News EIB delivers on increased SME lending and approves support for youth employment he board of the European Investment Bank, comprising directors from 28 EU member states and the European Commission, approved significant new support for stimulating investment by SME and mid-cap companies (up to 3000 employees). The board also agreed new initiatives for tackling youth unemployment and providing trade finance for export focused European companies in programme countries.

during 2013, up from the originally planned EUR 14.1 billion to EUR 17 billion. This brings the overall EIB Group support close to EUR 20 billion, with the European Investment Fund focussing on venture capital, guarantees and microfinance.

The board also approved EIB loans totalling EUR 3.8 billion for lending to small and medium sized businesses and mid-cap companies across the EU. This will bring total EIB support The board today approved a significant for European SMEs and mid-caps increase of the lending target for SMEs approved so far in 2013 up to some

ÂŠShutterstock/Stuart Miles

EUR 9.4 billion compared to EUR 6.4 billion in the same period last year. Source and more information on: www.eib.org

Trends & Statistics

Tough conditions lead to EU chemicals output contraction this year, growth returns in 2014

uropean chemicals output will contract by 1.0% this year before returning to modest growth of 1.5% in 2014, Cefic, the European Chemical Industry Council, has said. The 2013 figure is lower than the 0.5% slight expansion announced in December 2012, as the economic development to date has been weaker than expected. The gradual recovery will be founded upon stabilization of industrial production in Europe after two years of weakness, and a modest rise in exports. But the European chemicals sector, which generates 1% of the continentâ&#x20AC;&#x2122;s gross domestic product and which employs 1.2 million, will face tough competition from U.S. producers benefiting from cheap energy and feedstock. The 1.0% fall in European chemical output during 2013, compared with 2012, will be the second consecutive year of modest output decline. Important industrial markets for European chemicals are continuing to struggle. Although demand is stronger in some individual countries, both automotive and construction remain generally weak. Sales of new vehicles are being held back by high

Consumer chemicals, a subsector that will remain in positive growth territory in 2013, will further expand by 1.5% next year followed by a 1% uptick for inorganic basic chemicals. Employment in the sector is forecast to remain stagnant.

ÂŠShutterstock/sheelamohanachandran2010

unemployment and weak income growth, although the need to replace older vehicles will in time help to revive the market. Working off the excesses of past speculative building activity is happening at a painfully slow pace, and European construction output remains at historically low levels. The disappointing performance of the chemicals industry tracks the weak level of activity in the broader European economy, particularly in the Eurozone. Cefic forecasts a return to moderate positive growth for chemicals output in 2014 of 1.5%. Petrochemicals and fine and speciality chemicals sub sectors both are predicted to grow by2%.

The upturn in chemicals output depends on a modest recovery in the wider European economy. Industrial production in Europe is currently stabilizing after fiscal consolidation and structural reforms in many countries have helped establish a firmer base for renewed growth, albeit at the cost of higher unemployment. Demand is expected to improve modestly across the economy during 2014. More positively, world manufacturing output growth is expected to accelerate in 2014 after two years of slower progress. This should strengthen export demand both for European chemicals, and for products that contain them. Japan is striving to re-launch its economy, a US recovery is underway, and developing and newly-industrialised economies are continuing to expand rapidly, becoming important consumer markets. Source: www.cefic.org www.fecc.org

Trends & Statistics Cefic Chemicals Trends Report

U chemicals production contracted 2.1 per cent in the first five months of 2013 compared with the same period in 2012, according to the latest Cefic Chemicals Trends Report released today. Monthly production data for May showed a 1.1 per cent drop compared with the same month the year prior. The EU chemicals net trade surplus improved through the first four months of the year, latest data show, reaching €16.9 billion, up €1.9 billion on the same period last year. EU chemicals prices were lower on a

year-on-year basis in May, falling 1.8 per cent during the month against the comparable month in 2012. Sales were 3.3 per cent lower in the January-April time period compared with the first four months of the year prior, and remain 2.7 per cent lower than the peak level reached in third Complete report and more information quarter 2008. available on: www.cefic.org

Fecc Meetings Calendar 2013 Date

Meeting

Location

16 September

Communications Network

Brussels

17 September

Fecc/ECSA PS Workshop “Chlorinated Solvents – the time is over to only sell a product”

Brussels

18 September

Product Stewardship Committee

Brussels

23 September

Responsible Care Committee

Brussels

26 September

Congress Committee

Hamburg

27 September

Board Meeting

Hamburg

1 October

Precursors Committee

Brussels

7 October

ESAD Steering Committee

Brussels/Cefic

7 & 8 October

Excipact Training Course

Brussels

22 October

SHE Committee

Brussels

4 November

Logistics Committee

Brussels

7 November

GTDP Committee

Brussels

13 November

Fecc Membership & Board Meeting

Brussels

14 November

International Trade Committee

Brussels

18-21 November

NACD Annual Meeting

Marco Island, Florida, USA

11 December

Responsible Care Committee

Brussels www.fecc.org

Owner and Publisher: The European Association of Chemical Distributors (Fecc) Rue du Luxembourg 16B, B-1000 Brussels, Belgium www.fecc.org Chief editor: Camila Diaz, +32 26790263,cdi@fecc.org Editorial staff: Fecc Policy Managers Pictures: Shutterstock, PSD Graphics, member companies and private pictures Disclaimer The information contained in this newsletter is for general information purposes only. Through this newsletter you are able to link to external websites which are not affiliated with or under the control of Fecc. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.

• Uta Jensen-Korte, Director General ujk@fecc.org • Camila Diaz, Communications Manager cdi@fecc.org • Jan Thienpont, Responsible Care & Logistics Manager jth@fecc.org • Joel D’Silva, Life Science & International Trade Manager jds@fecc.org • Ophélie Roblot, Health Safety & Environment Manager oro@fecc.org • Catherine Lefranc, Assistant assistantfecc@fecc.org www.fecc.org

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