Emerald - 2015 Health & Safety and Environmental Annual Report

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Emerald Kalama Chemical Rotterdam Site

2015 Health & Safety and Environmental Annual report


Surging growth Key words to describe the year 2015? Surging growth. This best describes the year behind us. In 2014, we developed a strategy for Emerald and in 2015 we began with the implementation of various dynamic projects. Factory in Widnes Safety is, of course, always our number one priority. We also aim for the expansion of our business. We have purchased a factory in Widnes, England where fragrance and flavors substances are made. Benzaldehyde is one of the raw materials they use and this has increased our demand. Doubling production Another development we are seeing is the growth in the market for light products. Worldwide, the use of sugar is being curtailed. Sugar also acts as a preservative and when you remove it from a product, another preservative needs to be added as well as an alternative sweetener. Benzoic acid - a substance that can be found in cranberries - is preservative (E210/E211) and the demand for this Emerald product is growing. In order to accommodate this, we have started the ACE project. ACE stands for Acid Capacity Expansion and concerns the realisation of a second purification unit. With this new unit, we are able to double the production of benzoic acid. This also gives us the opportunity to discover new markets for this product such as in the home and personal care markets. Energy conservation measures The expansion of our business is not our only concern, of course. In 2015, we have taken several measures to reduce costs. This can be achieved with such energy conservation measures as improving the insulation, increasing the efficiency of the boilers and reducing steam losses, for example. Another measure includes the expansion of the effective use of raw materials which should curb the amount of by-products. In this area, we have begun to make some good progress and we continue to search for smart solutions to further optimise the production process.

Making adjustments In order to improve our performance even more, in 2015, we became a so-called "performance-based organisation". This means that every month, we take a critical look at a number of important indicators so that we will be able to make better adjustments when necessary. Training programme More growth, in many areas. Here, the human factor also plays a key role and we have grown in the number of employees. In order to provide a good work environment for these new employees, in 2015 we have carried out some major renovations to the offices, workplaces and communal areas. Further, we have continued with the improvement of our training programme. We are creating a learning environment which will offer our employees plenty of room to develop and flourish. This is vital , because they too, want to keep growing! Wilfred Buijs, Site Director


Our company Emerald Kalama Chemicals Ltd., part of Emerald Performance Materials, is the largest producer of benzoic acid in the world. The quality of our benzoic acid is of such a uniquely high level that Emerald supplies not only the international pharmaceutical industry but may also include the food sector among its clients. The production location makes a wide range of raw materials and additives for, among others, the food, pharmaceutical and soft drink industries as well as for cosmetic, resin and glue manufacturers. Emerald Kalama Chemical has approx. 163 fulltime employees in service (of which roughly 23 are employed in Geleen) and approx. 60 contractoremployees.

Our products Benzoic acid (Purox B) Benzoic acid is used as a preservative in food and cosmetics (E210) and as an additive to alkyd paints to make these more easily spreadable, stronger and shinier. Benzoic acid is also the raw material for "plasticizers" or softeners. Benzaldehyde Benzaldehyde is used, among others, as fragrance and flavors in macaroons, pudding (almond flavour), soft drinks and in various perfumes (lillies of the valley, rose and jasmine). It is also used as raw material for the preparation of colourants used in packaging materials (malachite), cough syrups, (ephedrine) and in the production of medicine. Benzyl alcohol Benzyl alcohol is a flavouring, aromatic, colourless solvent that is used in the pharmaceutical, health care and foodstuffs industries and is also sometimes used for technical purposes. Sodium benzoate (Purox S) Sodium benzoate is used a preservative (E211) in in such light products as soft drinks and sauces. In nature, it can be found in blueberries.

Plasticizer (K-Flex) K-Flex is a plasticizer that ensures products (especially plastics such as PVC) remain flexible.

2015 Results In 2015, Emerald Kalama Chemical Ltd. has executed a number of large and medium-sized projects with the aim of improving the environmental and safety performance. These are the most significant projects: Environment • Five-year sewer inspection to find and repair potential leakages. • Research into conditioning cooling water in order to prevent the growth of algae and mussels in the cooling water system. • Replacement of the air preheaters in order to improve the efficiency of the thermal oil boilers and lower NOx emissions. • Completion of the RIO project. This makes it possible to discharge part of the waste water in the municipal sewage system and we reduce the strain on our own water purification system. • Improving the performance of the waste water purification system by way of an anti-foam unit and a new sludge scraper. Safety • Numerous RA&Es (Risk Assessment and Evaluation), aimed at hazardous materials exposure, work in the laboratories, health and safety and absenteeism policies, workplaces and warehouses. • Safety Day at the Blijdorp Zoo, where we discussed the safety performance of our organisation. The theme of the day was "From good to (even) better". • In November, we reached the "1000 days without an accident causing absenteeism" milestone. A fantastic achievement and a first for our organisation.


Daan van Eck, Process Engineer

"Continue to monitor the Safety Measures" “We at Emerald want to keep growing, as long as we grow safely. We are aware that we work with dangerous, flammable materials here - both in the form of the raw material and the end product - and that is why safety is always a priority during the development phase. We are extra alert that the correct precautionary measures are taken when we arrange such processes as temperature and pressure safety and alarms. But also after the developmental phase, we continue to monitor that the safety measures are still adequate. Whenever changes are implemented in the production process, for example, when production begins again, we are constantly re-evaluating to find out if we are in compliance with our own safety requirements and the law and legislation. “The law and legislation on the area of safety is becoming ever more stringent. As a BRZO (Control of Major Accidents Hazards) company, we are required to draft a safety report, for example. In accordance with new legislation (BRZO 2015), we are required to submit this report anew in 2016. At the start of 2016, we began with its realisation. In it, we are required to show that we have taken sufficient measures to minimise the risk as much as possible in eleven basic situations. These may include, accidents due to high pressure or temperature or an operator fault, for example. We are driven and required to comply with the European Seveso guideline and that means we implement the best available techniques in order to guarantee the safety of our employees and the local residents."

he "Your Own Safety" (JEV-team) has realised a T new signage plan wherein every area is now provided with an informational sign that incudes the most important materials found in the area concerned and the ban and restrictions signs. • Start of a new training programme HSE (Health, Safety and Environment) which covers, among others, Atex, SIL, security, arrangement of danger zones and environmental permit requirements. Health • The absenteeism figure in 2015 was at an average of 3% with a reporting frequency of 1.11%. • A number of employees have undergone a periodic medical examination. Generally, the Emerald employees had few health complaints and no work-related problems. • If we receive enough applications, a company will come on site to take measurements for hearing protection, safety glasses and computer glasses. Currently, 50 employees have made use of this provision. • In 2015, 14 new employees joined the company and 9 have left service due to notification or retirement. • In 2015, several employees had shown increased chrome measurements. They were re-examined and this revealed that the values were no longer higher. Because we were unable to trace the source and chrome is immediately broken down by the body and presents no real health risks, it was decided to conclude the investigation. We will continue to be vigilant of any increased measurements in future.


Environment and regulations Permits In 2015, permits were obtained for the placement of two back-up air compressors, for the expansion of the benzoic acid purification plant and for the combustion plants that fall outside of the Activities Decree.

Inspections and investigations Watersystem Agency Watersystem Agency (Rijkswaterstaat) field staff from their Maintenance Department made two visits during the course of the year. During these visits, they took random samples of the waste water purification system. Neither visits were at all related to the incident. Innovative control In 2015, competent authorities carried out two inspections under the new Innovative Control theme. The Rijnmond Environment Service (DCMR) has tested several elements contained in the environment permit and some small deviations were detected and easy to remedy. BRZO inspection In August of 2015, a BRZO (Control of Major Accidents Hazards) inspections was performed by regulatory bodies. The following aspects were examined: • The organisation and the staff • The investigation into (major) accidents • The safety culture • The measures and security of the toluene oxidati on factory • General impression of the company as based on a tour of the grounds. Generally speaking, it can be said that Emerald is taking sufficient systematic measures to manage the risk of major accidents. There were 5 points discovered where improvement was needed and one of these was even designated as a violation. The violation concerned the abscense of a procedure for the proper handling of plants that are temporarily out of use. The violation has been dealt with.

Klaas de Vries, H&S officer:

"Do not tamper with safety" "Now that we are carrying out bigger projects more often, it is even more important to pay extra attention to safety. Colleagues and employees from the companies we hire must leave our premises just as healthy and with all their fingers and toes intact when they leave! Safety policy starts with having a thorough insight into all the possible risks. We want to have that risk inventory ready at the earliest possible stage: meaning, completed during the preliminary process. That is why we centralise all the expertise there is: the companies we hire understand our trade; we have knowledge of the factory and our processes. These two expertises are needed to achieve safe work processes." "We would like to complete our projects within schedule and on budget, but it is more important that that it occurs without any accidents taking place. I sometimes play the role of "devil's advocate" in this when I point out to management and staff that the work must be done safely at all times. Structure and communication: these are the two key words in the area of safety. Certainly with big projects which involve a great many people, it is essential to work according to fixed protocalls and to communicate with each other honestly and clearly. I understand that this can sometimes be difficult, definitely when it means taking extra time, but you should just never tamper with safety."


Objectives and most significant projects in 2016 Emerald Kalama Chemical always strives to further improve its health & safety and environmental performances. Below, we have provided an overview of the most important projects in the coming year.

Environment Bart Groenenboom, Reliability Engineer:

"Finding balance between costs and benefits" “We are always looking for opportunities to improve the reliability of our production plants. We recently realised the flow meter project. When flow meters are not functioning optimally, the quality level of the production may not be achieved. That is why we have thoroughly examined all of the critical flow meters and remedied any problems found. The result? A more efficient process and a better end product. Another example is the reduction of steam leakages. We have taken inventory at the steam traps, among other places, to see whether there were any leakages to be found. Any leakages found, we repaired immediately." "With these kinds of improvement processes, we always look at the costs and benefits, of course. The most attractive projects are those that cost little and offer much. There are quite a few more efficiency improvements that we will be carrying out. We have had our own IVG (User Inspection Department) since last year. This means that we can inspect our own pressure equipment. Good to know: in order to be allowed to set up an IVG, you must comply with strict requirements and to safeguard the quality of the inspection, at least 10% of our own inspections are also evaluated by an outside independent party. Anything it takes to guarantee the safety of our employees!�

Replacement of the process air heater F-601 In order comply with the emission requirements that will go into effect on January 1, 2017, we are installing a new process air heater. Soil and groundwater management plan The Location Management Plan provides insight into the actual soil quality of the location by way of carrying out a biennial monitoring programme. This plan establishes how to treat the historical soil contamination. Energy efficiency In 2015, we set up a project team to ensure a more efficient use of energy and raw materials. The goal is to be 10% more efficient with our energy use per tonne of product made. Two projects are already under way: replacement of the burner and heat exchanger of the granulator and the replacement of the compressor with a more compact one. Five other projects are still in the development phase.

Safety Job Safety Analysis (JSA) The JSA is intended to evaluate a task that is to be carried out on the risks and measures involved. A multi-disciplinary team will evaluate whether the work activities can be carried out responsibly and/or if additional measures are needed. Execution of RA&E Every year, an RA&E Risk Assessment and Evaluation) is carried out on a section of the organisation. In 2016, the RA&E will be done on the production department. In addition, the action plans for RA&E exposure to hazardous materials, workplace and


warehouses, health & safety and the absenteeism policy and the laboratories. Development HSE Culture programme In line with the "Safety First" programme of the Association of the Dutch Chemical Industry (VNCI), attention is paid to the development of HSE culture (health, safety en environment) in the chemical industry. An important element of this programme is carrying out the so-called Self-Assessment Questionnaire which periodically measures how the HSE culture within Emerald stands and where there is room for improvement as based on a survey.

Health Exposure investigation Every year, exposure measurements are carried out on individuals during which the extent of employees' exposure to (a high degree of) hazardous materials while performing their work activities is tested.

Business Expansion of the production of benzoic acid In 2016, the second benzoic acid purification unit will be built. In order to allow the work activities to safely run their course, a separate safety organisation has been set up. Migration of DCS The Distributed Control System (DCS) is the operating system with which we control the instruments in the factory. The current DCS is outdated and will be replaced. The new DCS offers us many extra possibilities with which we can further optimise the production process and realise energy and environmental savings.

RenĂŠ van Everdingen, Plant Engineer:

"Even greater efficiency in the use of raw materials" “We try to use as little possible raw materials to produce as much possible. This is not only advantageous to our financial picture, but also better for the environment. Because the more efficiently raw materials are used, the less waste created. In 2015, we established a five-year plan and the reduction in the use of raw materials is one of its main objectives. In order to tackle this properly, we have assembled a multi-disciplinary project team. That team has brainstormed a list of fifty ideas together and from it we have chosen the fifteen most promising. During the coming three years, we will be implementing these action points. "At Emerald, we have been working highly efficiently and we now have a yield, call it a revenue, of 89% on all raw materials. We would like to raise this to 93%. But, precisely because we have already come so far, it is difficult to make big strides. It is often just a matter of fine tuning processes. These may include, for example, the even more precise control of the pressure levels or temperature in the reactors or distillation columns. But there are also initiatives to further reprocess waste flows internally, for example. Here, it is extremely important that the processes continue to be safe and reliable, of course. In our quest for efficiency we cannot and may never make any concessions in safety."


Explanation Environment and Health & Safety themes Air In the installations two types of emissions are released into the atmosphere: fugitive emission and emission from point sources (stacks). Fugitive emissions are a type of leakage loss that is measured by a specialised contractor company according to a fixed schedule.

Dennis Vermaas, field operator:

"More production - less waste"

Diffuse emissions (in tonnes/per year)

25 20 15 10 5 0

“In the beginning of 2016 we started construction of a new factory. If everything goes according to plan, this project will be completed by the end of the year. We will then preside over a second benzoic acid purification plant which will enable us to double our production of pure benzoic acid. And although we will be able to substantially increase production, this new modern factory creates less waste and uses less energy per tonne of produced product. That's what makes this project so special: it really is a winwin situation." "Roughly one hundred people were involved with this project and it is my job, more or less, to make sure everything runs smoothly and safely. I sign the permits after the LMRA (Last Minute Risk Analysis) has been done; I am present at the construction meetings and provide all the contracting parties with all the relevant information when any questions arise. We engage a whole host of different companies and some of them may not always have any experience in the chemical branch. In these cases, it is really crucial to strictly monitor the employees on their compliance with the regulations. The painting of an office building can hardly be compared to an assignment on our grounds. And yes, there are times when I am forced to play the role of "policeman". But also when employees quietly work according to the rules, I will acknowledge that too. A pat on the shoulder or a small compliment here and there can make all the difference."

2008

2009

2010

2011

2012

2013

2014

2015

Carbon dioxide (CO2) and nitrogen oxides (NOx) are the most important emissions from point sources. Since 2013, these emissions have been greatly reduced by the implementation of the steam import project which enabled Emerald to take one steam boiler out of operation. Carbon dioxide (in tonnes/tonnes of product per year)

1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2014

2015

Nitrogen oxides (in kg/tonnes per year)

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0

2006

2007

2008

2009

2010

2011

2012

2013


Water In the past years, various actions were executed to optimise and unburden the functioning of the water purifcation system. In 2016, all kinds of improvement projects are scheduled. The decline of the chemical oxygen demand (COD) can be explained by the fact that waste water purification was able to process less waste water. COD (in grammes/tonnes of product per year) 700 600 500 400 300 200 100 0

2006

2007

2008

2009

2010

2011

2012

2013

"Strengthen the basis in order to be able to grow further" 2014

2014

Undissolved components (COD) (in grammes/tonnes of product per year) 120 100 80 60 40 20 0 0

2006

2007

2008

2009

2010

2011

2012

2013

Ellen Mackenbach, HR Director:

2014

2015

Soil Incidents During the past year, six leakages occurred that resulted in a minor soil contamination. The leakages were stopped as quickly as possible and the soil contamination was immediately cleaned. For each incident, an incident investigation took place and measures were taken to prevent repeated occurrence. The decontaminations were done according to the applicable procedure and were reported to the environmental authority.

“What we do here, we do well. But if we want to grow - and we do - we must strengthen our basis and prepare for the future. Much knowledge is contained within the heads of our employees. We must make sure that this knowledge is recorded and that we more often work with automated systems. This way, we will be better able to anchor all that knowledge and expertise in our company. That is why, for example, a renewed version of our intranet is coming. Another example? We have rewritten the company's Operating Regulations: where once we counted four pages, it is now thirty. Just an indication of how little was being documented...Additionally, we are seeing that over the years, additions have been made to the existing procedures and work processes. This has created a certain complexity which sometimes makes our work non-transparent." "Emerald is a fine employer, yet even in this area we still want to make more steps towards the future. The focus of the collective agreements (CAO) now still lies on the older employee and we would like to change that to what is aptly named "a conscious life-phase policy". We want to be an attractive company for employees in all phases of their career. In 2015, we happily welcomed 14 new colleagues and we now count 163 employees. With the growth ambitions this company has, this number may continue to rise further in the years ahead."


Remediation of Area 10A A historical soil contamination with benzine in Area 10A is being remediated. This remediation - with the aid of in-situ PuriSoil technology - began at the end of 2011 and is expected to be completed in 2016. Ground water samples are periodically being taken in order to evaluate the progress of the remediation and make adjustments if necessary.

Michel Leibbrand, E/I Technician:

"Ready for further growth with new the DCS" Migration of DCS The Distributed Control System (DCS) is the operating system with which we control the instruments in the factory. At this moment, we are busy implementing the new system. The former programme was 20 years old and by now updates are no longer available. Going on with this system was not an option: It costs money and could have a negative effect on the reliability of the production process. The migration project has been running for two years. We started the actual migration in the beginning of 2016 and it will surely take us to the end of the year to finish. We actually have to adapt hundreds of control loops." "I don't do this all by myself, of course: we have a team of seven working on it. Each having their own specialisation as I am busy with radioactive sources, among others. We are routinely faced with challenges and it sometimes demands a certain amount of creativity to find a solution. Internet is a great and much-used tool in this process. Once the new DCS has been completely installed, we will be fully prepared for the future and the continued growth of the company. We can then further optimise and realise energy and environment savings."

Asbestos In order to build the new benzoic acid purification unit we needed to excavate. Asbestos was found during the soil survey. It was found in such high concentrations that the soil could not be re-used and had to be restored externally. As a result of this soil survey, the entire location is now suspected of containing asbestos. During the course of 2016, an action plan will be established to map out the asbestos decontamination.

Energy As a participant in the Long-Term Energy Efficiency Agreement (LTA), Emerald Kalama Chemical is required to make a contribution to the national CO2objectives. Our aim is to improve energy efficiency by nearly 17% during the period covering 2013 - 2016. This is in addition to the recently realised improvement of 12% (rounded off) in the period spanning 2006 2012. The execution of such projects as the optimisation of a distillation column and a steam import have already resulted in an energy efficiency improvement of 12%.

Waste For many years now, we have carried out an active waste flow policy. In addition, the waste prevention plan we developed to further reduce the amount of waste that is released on site has been approved by the environmental authority DCMR. All our efforts have led to the standard minimisation of the amount of material to be dumped or incinerated. In 2015, the amount of hazardous waste has increased in comparison to 2014. This is caused by more waste water being processed externally.


Accidents and incidents Accidents

Incidents

In the past year, no serious accidents (OSHAs) have happened. The number of First Aid accidents has dropped when compared to 2014 (from 11 to 7). After various people suffered from a small particle causing irritation in their eye, new safety glasses were introduced. Two people stumbled and injured themselves; one person suffered a drop of hot liquid on his hand and another had the misfortune of getting a drop of lye in his face. None of these incidents caused any serious injury.

In 2015, eight incidents had to be reported to the competent authorities. This is an increase from the year previous. In the graph below, the trend of environmental incidents has been represented.

In the graph below the trend of accidents is represented along with the targets for 2015.

Reports to the competent authorities

12 10 8 6 4 2 0

2006

2007

2008

2009

2010

2011

2012

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2014

2015

First Aid and OSHA accidents

The causes of the accidents and incidents at the top are being thoroughly analysed by Emerald Kalama Chemical. An action plan will be devised based on the findings for the purpose of taking preventative measures to avoid incident and accidents.

18 16 14 12 10 8 6 4 2 0 2006

2007

First Aid

2008

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2014

OSHA

In 2014, the number of HSE registrations of near-misses has continued to climb in the Incidents Registration System (Classbase). It is a good sign that employees are aware of the risks and react in a timely fashion. 528 safety management audits were executed.


Emerald Kalama Chemical Montrealweg 15 Haven number 4322

3197 KH Rotterdam-Botlek The Netherlands Post box 1021 3180 AA Rozenburg The Netherlands

Colophon This public report contains an abbreviated summary of our official Environmental Annual Report. Publication Emerald Performance Materials Design and realisation SD Communicatie, Rotterdam Photography Glenn Mostert Interviews Anita Schregardus Printing MVL Copyright Š 2016 No rights may be derived from this. Interested parties may request the official report from John Mol by sending an e-mail to: john.mol@emeraldmaterials.com, or call him on telephone number +31 (0)181 249 386


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