It is important to focus on the broader opportunities created by the European Union’s (EU) registration, evaluation and authorisation of chemicals (Reach) program, rather than linger on its challenges, and this is what we have been doing at Sabic. We believe that the EU chemical industry only stands to benefit from a single regulatory system for new and existing chemicals. Reach will encourage our industry to innovate, either by replacing potentially harmful substances with suitable alternatives, or by dramatically reducing the risk posed by the use of these chemicals.

Because Reach mandates that all chemical substances in the EU be comprehensively documented, knowledge and expertise regarding these substances will increase, for the benefit of society as a whole. And since the legislation also covers chemicals that are imported into the EU, Reach will have a positive impact on the wider global market.

Taking a Pragmatic Approach  

At Sabic, we fully endorse the Reach objectives. As a responsible manufacturer and importer of chemicals, we care for the health and safety of people and the environment, and compliance with Reach is merely a logical step in the process. Yet we also see Reach as a serious business topic and as such, we have been pragmatic in our approach to the new regulations. We have assembled a professional corporate Program Management Office (PMO) to centrally guide the timely delivery of high-quality dossiers for all our products. Although independent from business and Safety, Health and Environment functions, the PMO aims to cover both needs. To help our team achieve on-time registration, we recently signed a four-year strategic partnership with TNO, a highly respected scientific research institute. With the right people and processes in place, we feel we are well placed to meet the necessary goals outlined by Reach.

As with any new legislation, it is important that companies take the right approach to ensure that they are in the best position to implement the changes, minimize the impact on the business and to keep ahead of the competition. By working with a third-party, such as TNO, who have the expertise and knowledge to help shape the approach, companies can put themselves into the best possible position to react to the changes.

Sharing is the Key to Success 

To help lessen the burden of animal testing the Reach regulation mandates that all producers and importers of a chemical substance should work together by sharing toxicology data and jointly submitting dossiers. Beyond its humane spirit this requirement also offers a clear financial benefit to producers as the expense of testing can be shared among groups of substance producers.

Sabic has already joined pre-consortia groups of producers established by the European Chemical Industry Council (Cefic) through its sector groups and will be openly sharing Reach-related knowledge and best practices with others-and the sharing doesn’t need to stop there.

At conferences and via industry networks, companies have the opportunity to discuss and compare relevant work processes with each other. In addition, Sabic is committed to using other forms of communication, such as our website and newsletters to share information on the progress of the substance registration process with customers and other stakeholders alike.

But why is sharing so important? The scope of the Reach legislation is so complex–and its impact so large–that cooperation is the surest way to produce the best results. By working together, the industry and authorities will increase their knowledge and expertise regarding chemical substances, and contribute to a healthier future for our children and our planet.

So now we know what industry groups such as SOCMA and the European Fine Chemicals Group, among others, are up against. As fine chemical manufacturers what are your experiences of pharmaceuticals counterfeiting and how do you think the industry should respond?

“In practical terms this means that for the next few quarters we may not see another Hexion-Hunstman transaction sponsored by a large private equity fund,” says Chris Cerimele, senior v.p. at Lincoln International. “At least, probably not in the U.S.”

Attention and activity is shifting toward deals in the middle market, or those with lower price tags. “Funding is still available for smaller deals, it’s just that the loan cost is 150 basis points (1.5 percentage points) more expensive than it was earlier in the year,” says one executive at a private equity firm that targets transactions as large as $500 million.

Deal structures are changing and terms have become more “lender friendly,” Cerimele says. “Previously a single lender would fully underwrite a deal and then syndicate post-closing,” he says. However, “we are now seeing the return of club deals, with pre-close syndication required,” he adds. Buyers are putting up more equity, and loan pricing is higher, Cerimele says. “Covenants, which had begun to disappear during the height of the market in the first half of 2007, are now reappearing,” he says.

Chemical makers, particularly those with strong balance sheets, appear better positioned now that private equity faces financing constraints. Producers say they are evaluating acquisitions, particularly bolt-on deals, but are, so far, still cautious. M&A activity is likely to be tempered by the credit crunch and concerns over the economic outlook, says Wesley Chinn, chemicals analyst with Standard and Poor’s (New York). “However, the shakeup in M&A appears to create some opportunities for chemical companies looking for strategic assets,” because firms previously faced stiff competition from private equity firms.

This year’s conference tackles a slew of urgent new issues in transportation, distribution, and security that the chemical industry is contending with. What do new security policies mean for the transportation and distribution of chemicals, especially hazardous materials? How is the chemical industry dealing with continuing labor shortages among carriers? Are freight rates going to climb further in 2008? Are there still lessons to be learned for shippers and carriers from the devastating hurricanes that hit the U.S. Gulf Coast in 2005?

Central themes to be addressed at the 13^th Annual Chemical Transportation, Distribution and Security Conference include:

· The ins and outs of the Department of Homeland Security’s new security law, and its implications for production, storage and transportation of chemicals

· How the industry is addressing rising freight rates and labor shortages among carriers

· A look at the rebuilding of New Orleans two years after the devastation caused by hurricanes, and the lingering effect on the transportation network

· Lessons learned in emergency preparedness and disaster recovery

This year’s conference will take a closer look at these issues, and provide you with the opportunity to analyze and discuss them with your peers and experts in the field.

To register for the 13^th Annual Chemical Transportation, Distribution and Security Conference, visit www.chemweek.com/conferences/transportation08.

“The new che.com site simply capitalizes on Web-based technology to improve how Chemical Engineering delivers timely, practical information to the chemical process industries,” notes Rebekkah Marshall, Editor in Chief of Chemical Engineering. “Now visitors can quickly and easily drill down within subcategories such as Processing & Handling; Software, Automation & Control; Environmental Health & Safety; and Business & Economics.

”The new site offers readers the choice of over 130 RSS feeds, which notify them of developments or technical expertise in areas as broad as up-to-the-minute Business News to those as specific as Project Management, Distillation, Alarms or Heat Transfer Media. Also in keeping with Chemical Engineering’s global audience and coverage, the new site enables RSS notification of content that pertains to certain geographical hotspots and makes it browsable via an online map.”

Nella Veldran, Publisher of Chemical Engineering commented “Now, more than ever, readers will search and find information and analysis on the specific processes, systems and workflows they manage everyday. Visitors will benefit directly from Chemical Engineering’s more than 100 years of experience as the publication of record in the chemical processing industries.”

During this beta testing period, the team at Chemical Engineering is actively seeking feedback on all aspects of the website and its content so they’ll be able to continue fine-tuning the user experience to be even more useful to professionals seeking information online and via mobile devices. As beta testing continues, the Chemical Engineering team will further enhance the site with added functionality and content. Users will see advanced customization and search capabilities, an online “store” and new information and data products in the coming months.

For information about beta testing contact John Rockwell at +1 212 621-4668, email: jrockwell@accessintel.com.