Optimising supply chains

The magazine of the Chemical Business Association

Spring 2015

Facing the challenges – Pages 8 & 9

2 Outlook

Outlook is published by the Chemical Business AssociationGroup House, Electra Way Crewe Business ParkCrewe, Cheshire, CW1 6GU

Telephone: 01270 258200Facsimile: 01270 258444e-mail: cba@chemical.org.ukweb site: www.chemical.org.uk

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The views and opinions expressed in Outlook are not necessarily those of CBA.

For Outlook advertising rates, contact CBA on 01270 258200.

Peter Newport CBA Director

Outlook 3

Welcome to CBA Outlook In this issue, we include CBA’s Chairman’s report to member companies on the Association’s activities in 2014. This is extracted from CBA’s Annual Report that will be formally published at the AGM ahead of the Annual Lunch on 29 April 2015.

We also publish the results of our fifth Supply Chain Trends Survey showing that sales volumes are weakening for many companies and sales margins are under pressure.

In March, the Mayor of Cheshire East formally opened CBA’s new offices, Group House. Our new headquarters offers member companies enhanced facilities in terms of meeting rooms available for full-day or half-day hire, as well as providing state-of-the-art accommodation for CBA’s seminars and workshops – see pages 12/13 of this issue.

Outlook is also pleased to publish the latest supply chain research in the form of the WBR Logichem Benchmarking Report that has been prepared for Logichem 2015 taking place on 21-23 April, at the Hilton Antwerp Hotel, Belgium – see pages 8/9.

ReFaC, CBA’s specialist regulatory compliance company, underlines the need for companies to take action on the substance testing implications of any REACH registrations scheduled for 2018.

Outlook contains the latest industry news and regulatory developments. I hope you enjoy reading this issue.

Combat Stress to be Annual Lunch charityCBA’s Chairman, Dr Steven Cartlidge, has chosen the UK’s leading mental health charity for veterans – Combat Stress – to be the beneficiary of the charity collection at the Annual Lunch on Wednesday 29 April 2015 at the Grosvenor House, Park Lane, London.

Founded following the First World War, Combat Stress has helped more than 100,000 ex-Service men and women and is currently helping 5,600 veterans – including those who fought in the conflicts in Afghanistan and Iraq.

The charity helps veterans to rebuild their lives and treats a range of conditions, including Post Traumatic Stress Disorder, depression, and anxiety. It offers short-stay clinical treatment, outpatients’ facilities, occupational therapy,

community outreach, and a 24-hour helpline.One of the main barriers the Charity has to

overcome is the reluctance of veterans to seek help with mental health issues. On average, veterans wait 13 years after their discharge from the Services before contacting the Charity for assistance.

The Charity has a partnership with the Ministry of Defence and the Department of Health that allows it to work directly with NHS Mental Health Trusts and the Armed Forces Health Networks to develop services suitable for military veterans.

CBA members are asked to give generously to this worthwhile cause.

ANNUAL GENERAL MEETINGAll CBA member companies are encouraged to attend the Annual General Meeting to be held in the Jeeves Suite at the Grosvenor House, Park Lane, London, on Wednesday 29 April 2015 starting at 10.30am.

During 2014, trading conditions for the UK chemical supply chain steadily improved, though CBA member companies were cautious about the short-term outlook for sales. CBA’s Supply Chain Trends Survey for the third quarter also showed an improvement in sales margins and expected employment levels.

CBA itself reflected this improving situation and I am pleased to report it delivered a prudent financial surplus. We continued to grow our subscription base by attracting new member companies, with eleven new companies joining or rejoining the Association last year. Revenue from seminars and workshops, along with appropriate cost control, contributed to this performance. In addition, the Board of CBA’s specialist regulatory compliance company, ReFaC, report another year of satisfactory trading.

In 2014, we were able to take a 110-year lease on new offices at Crewe Business Park. This has provided the Association with a valuable long-term asset. Following this major expenditure, CBA will now rebuild cash reserves to sustainable levels.

Group House, CBA’s new headquarters building, offers member companies a number of excellent, state-of-the-art meeting and conference facilities that are available for hire on a day, or half-day basis. Non-member companies can also use these facilities but are charged a higher rate. These meeting facilities also create additional capacity for CBA’s cost-effective programme of training seminars and workshops which, again during 2014, were well attended by members and are clearly a much-valued CBA service.

A successful year for CBAIn this extract from CBA’s Annual report, Chairman, Dr Steven Cartlidge, reviews another successful year for the Association.

In September 2014, CBA organised its second Executive Conference, Pathways to Growth. This successful event took place at Ashorne Hill Management Centre, Warwickshire, and was attended by more than 80 delegates. The Conference heard a series of high-level presentations highlighting some of the key issues providing a framework for growth and sustainable profitability.

In addition to providing a range of value-added services to member companies, CBA continues to build its profile as the key organisation representing the UK chemical supply chain. It has now become the authoritative voice for the industry.

To take chemical security as an example, in 2014 alone, CBA’s expertise has been called upon by a number of leading international organisations. Interpol, the US Department of State’s Chemex Programme asked CBA to address events in Turkey, Thailand, and Georgia. In addition, the Organisation for the Prohibition of Chemical Weapons asked CBA to address an international conference in The Hague.

Overall, CBA’s senior personnel represent the sector on 71 official working groups or industry bodies in the UK, Europe, and

elsewhere. This level of engagement puts member companies in a privileged position in having access to CBA staff embedded within the policy-making process.

This demonstrates one of the major benefits of CBA membership. Individual companies cannot hope to engage with the range of issues and organisations with which CBA is involved on a day-to-day basis. In addition to major regulatory issues, such as REACH and the Classification, Labelling and Packaging provisions, CBA has played a key role in changes to COMAH thresholds and enforcement. It has made successful representations to a key House of Lords Committee aiming to make the Government’s new system of consulting business more workable and the Smith Commission examining the extent of further devolved powers following the Scottish referendum.

As this is my last Annual Report as CBA Chairman, I would like to record my thanks to all the CBA members that give their time and expertise to the CBA though its Council, Executive and Technical Committees. CBA could not function effectively without your support. Thank you.

Steven Cartlidge

Individual companies cannot hope to engage with the range of issues and organisations with which CBA is involved on a day-to-day basis.

Veteran, Mark Clyde, who served

in Afghanistan, with his wife

Carys and children, Poppy

and Archie.

Outlook 5Outlook 4

CBA’s fifth Supply Chain Trends Survey reveals that the sales momentum reported in the last survey is faltering and sales margins are under pressure.

“Our March 2015 snapshot of trading conditions is something of a turnaround from the results of our survey in September last year. The short-term impact on order books, sales volumes and margins probably reflects the volatility of currency movements over the last six months,” said CBA’s Chairman, Dr Steven Cartlidge.

“On the plus side, more than a third of respondents to the survey expect

to increase employment levels during the next three months,” he added. The following results are based on responses from 52 member

companies to an on-line survey conducted in mid-March. CBA’s Trends Survey asks companies to provide information on order

books, sales, sales margins, and employment on a ‘better–worse–same’ basis. The analysis ignores responses answering ‘same’ and focuses on the positive or negative balance provided by the difference between the ‘better-worse’ responses.

ORDER BOOKS Declining trend over last three months.

The March 2015 survey shows a decline in the volume of orders, with CBA member companies reporting a positive balance of +36%, down from +54% in the last survey.

SALES MARGINS Current margins under pressure; outlook flat.

The March 2015 survey reveals continuing pressure on current sales margins with a negative balance of -13% of respondents (accounting for more than one third of the total) experiencing lower sales margins. The outlook for the next three months looks relatively flat, with almost two-thirds of respondents forecasting no growth in sales margins.

EMPLOYMENT Jobs growth continues.

Member companies continue to forecast higher employment with a positive balance of +19% indicating that they will create new jobs during the next three months. Members’ employment forecasts have remained positive ever since the first survey in July 2013. In the March 2015 survey forecasts remain positive, but are down from their peak (+34%) in September 2014.

SALES Current sales momentum faltering; three-month outlook stable.

Over the last three months, fewer CBA member companies have experienced sales growth. The March 2015 survey shows a positive balance of +29% companies reporting higher sales, compared with +44% in the last survey. Companies remain relatively optimistic in relation to the outlook for future sales with a positive balance of +44% forecasting increased sales, up slightly from +40% in the last survey.

29% 44% 44% 40%

19%

36% 54%

As the March 2015 Supply Chain Trends Survey is the CBA fifth assessment of short-term trading conditions for the UK chemical supply chain, it is starting to provide a useful time series of results.

The chart illustrates the volatility of sales margins between July 2013 and March 2015. The chart monitors the difference between the ‘better’ and ‘worse’ responses to the question, ‘Are your current sales margins better, worse or the same than during the previous three months?’

Sales falter, margins under pressure

CBA speaks at first Global Congress

Manufacturing growth steady – CBI

Group House formally openedOutlook reports on CBA’s fifth Supply Chain Trends Survey

Volitility of sales margins25

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0Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15

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The latest survey of UK manufacturing industry by the Confederation of British Industry, published on 23 March 2015, shows that the rate of output growth is steady and that manufacturers expect to ‘ramp up production even further in the next three months.’

The survey of 468 manufacturers found that total order books were ‘down a little from February’s six month high, but remained well above average’. However, export order books weakened significantly.

Rain Newton-Smith, CBI’s Director of Economics, said, “Our manufacturers lost some

of their steam from last month, but they continue to move steadily along a decent growth track. Sluggish export performance seems to be a headache that won’t go away, with a still subdued Eurozone and headwinds from a stronger pound.”

The Mayor of Cheshire East, Councillor Wesley Fitzgerald, formally opened Group House, CBA’S new headquarters building on Thursday 19 March 2015.

In his opening speech, the Mayor welcomed both CBA’s commitment and contribution to the area. He unveiled a plaque commemorating the event and was then given a guided tour of the office and meeting room facilities in Group House. Members of CBA Council watched the ceremony following their meeting earlier that day.

CBA Chairman, Dr Steven Cartlidge, pictured here with the Mayor, Councillor Wesley Fitzgerald, said, “Group House represents an important investment for CBA and a valuable asset for the future. It also offers enhanced facilities for CBA’s seminars and workshops as well as providing a venue for member companies to hold meetings and events.”

CBA made two presentations at the National Chemical Emergency Centre’s (NCEC) first Global Chemical Congress in London at the end of February.

The two-day event brought together speakers from around the world including Argentina, the United States and China as well as the UK.

CBA’s Chief Executive, Peter Newport, spoke on ‘Responsible Care in the Supply Chain’ and the Association’s Technical Director, Douglas Leech, led a workshop on the Biocide regulation.

The NCEC Congress focused on providing practical advice and support around the core

themes of regulations and emergency / crisis response.

It heard presentations on topics ranging from South America’s Dangerous Goods Regulations, to the United Nation’s regulations on the transport of dangerous goods, and from crisis management in the event of chemical emergencies, to best practice in terms of risk management within the chemical supply chain.

NCEC’s Director, Jonathan Gibbard, said, “The Congress was an excellent event. We’ve had great input and energy from speakers and attendees, with lots of companies providing very positive feedback.”

ABOUT NCECThe United Kingdom’s National Chemical Emergency Centre (NCEC) considers itself the world’s leading 24/7 chemical response centre. Operating since 1973, NCEC has one of the most experienced teams in the world in understanding the requirements of the chemical industry and emergency services. It offers a range of Emergency Response products and services to help to deal with chemical emergencies

CBA Chairman, Dr Steven Cartlidge with The Worshipful Mayor of the Borough of Cheshire East, Councillor Wesley Fitzgerald.

-13%

Current sales

Future sales

6 Outlook Outlook 7

RESULTS WATCHBRENNTAG POSTS RECORD GROSS PROFITBrenntag has posted a record gross profit for the 2014 financial year. The company achieved a gross profit of 2,027.5 million euro despite an economic environment that it describes as ‘somewhat challenging’. Sales amounted to 10,015.6 million euro, which adjusted for exchange rate effects, represents an increase of 3.2%. Profit after tax totalled 339.7 million euro.

In regional terms, Brenntag reported ‘a very good financial year’ for Europe; ‘a positive trend’ in North America; ‘a difficult macroeconomic environment’ in South America; and ‘a positive trend in the fourth quarter’ in Asia-Pacific.

Steven Holland, Brenntag’s Chief Executive, said, “In view of an economic environment characterised by only moderate recovery, we are satisfied with the results for the 2014 financial year. We have seen a positive trend especially in terms of gross profit with all regions contributing to this growth.”

Steven Holland is forecasting further growth in 2015. “The mixture of organic and acquisitive growth has established a solid foundation in order to continue to expand our global position in chemical distribution,” he said.

IMCD REPORTS STRONG RESULTS IMCD’s full year results reveal a 10% growth in revenue to 1,358 million euro with more than 6% of this rise resulting from organic growth. Gross profit increased by 10% in line with revenue growth to 287.6 million euro and the gross profit margin remained stable at 21%.

The company reports rising revenue from all its major markets, though in the Asia-Pacific region and in several emerging markets, exchange rates had an overall negative impact.

IMCD’s Chief Executive, Piet van der Slikke, said, "2014 proved to be busy, eventful and rewarding for IMCD. Listing on Euronext Amsterdam was a significant event for us. Looking at the business, market circumstances were not always easy but we still have been able to achieve strong results.”

“I believe that our business model provides the right platform to face the challenges of today's

business environment. Looking forward I feel confident that we will be able to further strengthen our position as one of the leading distributors of specialty chemicals and food ingredients," he added.

Congratulations to Biochemica’s apprentice, Jonny Lofthouse, on receiving the Young Achiever Award at the recent NEPIC (Northeast of England Process Industry Cluster) Annual Awards 2015. Our photograph shows Jonny with his £1,000 prize at the Awards ceremony.

Jonny joined Biochemica in July last year as a Warehouse Assistant Apprentice. He has since been taken on as a full time Warehouse Assistant as the result of his hard work and dedication to his role. He will now be able to complete his apprenticeship as a full-time employee.

The pay of apprentices will increase by 20% from October 2015. This equates to a rise of 57 pence per hour to £3.30.

The rise in apprentice pay is higher than that recommended by the Low Pay Commission which considered an increase of 2.6% to £2.80 per hour as appropriate. The Commission thought a higher increase would put at risk the provision of more apprenticeship places.

The Government has also confirmed a 3% increase in the national minimum wage to £6.70 per hour – this is the largest real terms rise since 2007.

A-Gas Electronic Materials is the new name of Chestech Ltd, the specialist chemicals and processes distributor to the electronics industry. The change recognises the company’s inclusion as part of the A-Gas International group in the UK and abroad.

The company has also moved into a new 20,000 square foot facility at Rugby, Warwickshire, which will allow it to expand into new markets and create new jobs.

A-Gas Electronic Materials have a wide range of customers in the semi-conductor, printed circuit board, electronic and industrial metal finishing, photovoltaic and advanced packaging technology industries.

A-Gas International's Regional Managing Director Ian Podmore said: “We have a new name which reflects the way our

Regional Managing Director, Ian Podmore.

Steven Holland

Piet van der Slikke

Biochemica's grand apprentice

relationship with our customers and our suppliers is developing. We will be working closely with our supplier Dow Electronic Materials in the UK and Ireland to offer the best possible service to our customers.”

“The move to new premises will give us greater flexibility to respond to the needs of our customers globally and in turn allow us to increase sales,” he added.

A-Gas is an international group with headquarters in the United Kingdom and trading subsidiaries in the UK, South Africa, Australia, South East Asia, China, Thailand and the Americas. It supplies refrigerants, industrial and specialty gases, environmental services, fire protection substances, as well as electronic processes and specialist chemicals.

A-Gas Electronic Materials – the new name of Chestech

Book now for Fecc Congress

Apprentice pay and minimum wage to increase

Bookings are open for the Fecc Congress in Athens, 6-8 May 2015. The theme of this year’s Congress is ‘Towards a Sustainable Future’.

The event attracts the leaders of Europe’s chemical distribution sector and has a programme of senior industry speakers addressing some of the key issues facing the industry.

With a new-style programme, this year the Fecc congress includes parallel sessions on the second

Night-time shot of Athens showing Parthenon

morning. Delegates can choose to attend sessions on African and Middle East markets or one on chemical security and regulatory compliance.

Marc Woods, a Paralympic Gold Medalist and ex-cancer patient, is the inspirational speaker focusing on leadership and overcoming challenges.

Other presentations will include: ■ Does size matter? Success

Factors in the chemical industry

■ Global perspective of chemical distribution market

■ New developing markets■ Compliance and

communication in the supply chain

■ Sustainability, putting it in perspective

■ New trendsTo book for Fecc Congress, go to www.fecc-congress.com

European Chemicals – Facts and figuresThe European Chemical Industry Council (Cefic) has released its latest Facts and Figures on the EU chemical industry. It shows the extent to which the industry contributes to net exports and highlights the sector’s connections to a wide range of processing and manufacturing activities.

DID YOU KNOW? ■ Eleven of the top 30

chemical-producing countries are European, generating chemicals sales of 543 billion euros.

■The EU had a trade surplus of €48.7 billion euros in 2013.

■Emerging economies are outpacing industrial countries in chemicals production.

■Chemical companies in the EU employ about 1.2 million people.

■Greenhouse gas levels in the EU chemicals sector has fallen by 71 per cent since 1990s

Cefic’s Facts and Figures can be downloaded from www.cefic.org/Facts-and-Figures/

Outlook 9Outlook 8

Whilst the global perspective for chemical output is healthy, with shipment values set to exceed one trillion US dollars by 2018, European markets are becoming ever more competitive. As such, chemical manufacturers are looking to their supply chain organisations to deliver a competitive advantage.

The ability of supply chain organisations to successfully optimise their operations is being shaped by a number of external factors. We investigated these factors in a survey of supply chain leaders in preparation for the LogiChem 2015 conference, the results of which can be found in our LogiChem Benchmarking Report.

■ Supply chain management and business strategy

Supply chain operations significantly influence an organisation’s overall performance. However, the tendency to exclude supply chain management from corporate level strategy can result in the failure of organisations to capitalise on valuable opportunities to increase their competitive advantage. Moreover, if corporate level strategy does not reflect the dynamic market environment within which the supply chain operates, supply chain strategy is less likely to succeed.

More than 80% of businesses in our survey felt their supply chain function is well represented at

board level, or is influential in decision making processes which affect overall corporate strategy. The fact that the rest identified their supply chain function as reactive in their relationship with wider corporate strategy indicates more progress is needed to move away from the conventional consultative method of working.

We can see that the importance of an effective supply chain strategy is clearly becoming more recognised. The question still remains, however, as to how this concept is being embedded within the boardroom agenda to help drive value throughout the business.

■ A positive view of increased competition

As a result of the rapid expansion of the chemical industry in Asia-Pacific regions, the share of the global market held by European companies has seen a decline in recent years. With the global chemicals market looking healthy, but ruthlessly competitive, once again businesses look to the supply chain to provide a competitive advantage.

In order to retain customers and maintain high levels of customer service, chemical supply chain organisations must extend supply lines and provide a distribution service over long distances, which is competitive with local producers. As a result supply chain organisations have to become more agile in their approach to customer

demand, and continue to facilitate the evolving relationship between manufacturers and customers.

Despite these market pressures, and the associated business transformations, the majority of supply chain executives remain upbeat about the possibilities. According to our research, 79% of executives surveyed, view this perceived ‘Asian dominance’ as an opportunity rather than a threat to the industry, especially with regard to opportunities for overseas business growth and the ability to collaborate with emerging powerhouses to diversity product portfolios.

■ Success driven by technologyOne of the main drivers of supply chain improvement across the industry is information technology, and chemical companies, like their counterparts in other sectors, have invested heavily in new IT systems, particularly Enterprise Resource Planning (ERP) software.

In fact, 95% of leading supply chain executives agreed that technology and e-business initiatives are becoming increasingly important to streamlined supply chain operations.

However, some chemical manufactures are not fully exploiting the potential that these systems offer for managing the supply chain more efficiently. Development of e-business networks, advances in information and communication

technology and the diffusion of scanning and tracking devices are just some of the trends hitting the industry today.

As Manish Popli, Director of Hitachi Consulting comments in our report, “There is sufficient industry evidence that points to the conclusion that IT is seen as critical to managing and enhancing operations. It is fair to say that having IT support in most parts of the supply chain and operations is seen as the ‘cost of doing business’, which is the minimum to have a stake on the table. It is those organisations that push the boundaries and use technology to climb the next step that will be seen as the leaders and best placed to not only protect their competitive position but to enhance it.”

■ Transport management planning

Strategic decision-making is increasingly being affected by transport management planning. In fact, our research shows that 82% of chemical supply chain executives rate it as either important or critical.

In the past, the European chemical industry has tended to lag rather than lead the development and implementation of new logistical practices and technologies. As part of an overall effort to provide competitive advantage, chemical companies will have to overhaul their supply

chains to meet a series of external challenges. As a result, supply chain leaders will need to

know which new transport and logistics strategies work best in order to allow them to plan effectively and optimise their distribution networks. If the optimal distribution network is not achieved, the logistics operation will be seen to be unable to cope with market demands. Ultimately a significant portion of the overall costs of logistics is attributable to transportation, thus driving increased efficiency can only help to deliver a direct benefit to the bottom-line.

■ Supply chain visibility Another area increasingly in the headlights of supply chain executives is supply chain visibility, and in particular transforming track and trace in the chemical supply chain to overcome inefficiencies. Improving traceability, data compatibility and supply chain functionality are just some of the key improvement areas that supply chain executives have been mandated to improve through the implementation of harmonised systems.

Our research has demonstrated that even now a large proportion of chemical manufacturers (53%) have limited visibility of goods in the supply chain, which is a significant measure with considerable room for greater efficiency in this area.

Vivek Chaturvedi of Hitachi Consulting points out that, “From planning manpower in the incoming warehouse to the possibility of reducing safety stock to the increased ability to plan manufacturing … monetisation of these efficiency improvements is more than likely to pay for the cost of enhancing business processes and investing in enabling technology to provide visibility across the supply chain.”

■ Big Data and the supply chain The technological revolution is increasingly changing the way in which business is done across a wide range of industries, and this is no less true in the for chemical supply chain. As organisations interact with trading partners they generate significant volumes of data, and enhanced use of systems and technology has given the ability to harness that data to drive competitive advantage.

Some 65% of supply chain executives surveyed agreed that the ability to manage big data in the supply chain is becoming a priority. Clearly there is a growing realisation that there is value in this data, the next step is for organisations to make the necessary investments into analytics which can help them maximise the benefit of the available opportunities.

Optimising supply chains – facing the challenges

Charlotte Hutton, Logichem 2015 Programme Director, outlines the findings of the WBR LogiChem Benchmarking Report

About LOGICHEM 2015Now in its 14th year, LogiChem is the only VP-level, end-to-end supply chain event for the chemical industry, focusing on strategic and tactical improvements for Europe and the rest of the world. LogiChem 2015 hinges on the balance between the need for the supply chain to generate value for the customer and the business, and for it to drive cost savings in order to protect margins and positively impact the top-line. Returning this year to the heart of the chemicals hub at the Hilton Antwerp Hotel and taking place on 21-23 April, LogiChem will enable you to find the solutions and opportunities, to combat challenges, and to support the Supply Chain community.

continued on page 10

10 Outlook Outlook 11

There may seem to be plenty of time before the final REACH deadline in 2018, but companies should be taking action now if they need to undertake substance testing ahead of preparing the REACH dossier.

The key reason is that testing to the standards required by the REACH Regulation could take up to 36 months to complete - depending on the substances involved.

REACH registration in 2018 covers substances manufactured or imported into the European Union in volumes of 1-100 tonnes per annum. Substances termed Annex VII substances are those manufactured or imported in 1-10 tonnes per annum, while Annex VIII are manufactured or imported in 10-100 tonnes per annum.

Although REACH is sometimes thought of as an administrative process, this is only a small part of dossier preparation. Crucially, substances must be tested in accordance with the specifications of REACH and the results interpreted before compilation of the dossier can even begin.

For some substances, this work will have been done for the 2010 or 2013 deadlines. In 2010 approximately 3,400 substances were registered, with a further 3,000 registered in 2013. However, the European Chemicals Agency expects that there will be considerably more substances to be registered for 2018; the current estimate is anywhere up to 25,000.

This means that potential registrants of 2018 substances may have to perform a large number of studies before they can register for REACH.

Regardless of tonnage or whether a joint submission is to be made, each registrant must, as a minimum, ensure their substance is tested to confirm its identity. Substance identity testing can be performed in two to three weeks, depending on the availability of laboratory capacity. However with up to 70,000 registrations anticipated for the 2018 deadline it is it not difficult to imagine that laboratories could become very busy in the coming months.

Registrants, Substance Information Exchange Fora, and Consortia preparing lead dossiers for 2018 face a much bigger task. Annex VII substances may require five to seven months to complete the testing process, while for Annex VIII substances it can take six to eight months.

However, testing itself is only part of the process. Firstly, existing data must be gathered and a strategy prepared, discussions with the test laboratory must take place, contracts signed and the test substances sent to the laboratory. Then the QA department must become involved and the relevant paper work completed.

The method development process can also take time. ReFaC’s advice is that 2018 registrants should aim to reach this stage as soon as possible. After this, the tests can be conducted and reports drawn up and finalised. Only then can dossier compilation and filing take place, a process that can take several months in itself.

From start to finish, it is estimated that the whole procedure can take up to 20 months for an Annex VII substance and 36 months for an Annex VIII substance. Bearing these timelines in mind and with the REACH 2018 deadline only three years away, it is advisable for preparations, such as an initial data gap assessment to determine testing needs, to begin as soon as possible.

With thanks to the laboratories providing updates on lead times.Estimated number of subsrances/registrations provided by ECHA.

Congratulations to Banner Chemicals and the Warrant Group on winning Chemicals Northwest Awards.

Banner Chemicals won the Health & Safety Award and the Warrant Group won the Business Improvement Partner Award. Both Awards were presented at a special ceremony on 19 March 2015 at the Hilton Hotel, Manchester, hosted by ITN’s news anchor, Lucy Meacock.

Chemicals Northwest is an industry-led, support organisation for the £10 billion North West chemical sector. It is funded by its member companies and owned by the Chemical Industries Association.

DKSH SIGNS EXCLUSIVE AGREEMENT WITH DFE PHARMADKSH has signed an exclusive agreement to market, sell and distribute DFE Pharma’s Pharmacel (pharmaceutical grade) in the UK, France, Switzerland, Ireland, Denmark, Finland, Norway and Sweden. DFE Pharma is headquartered in Germany and has production facilities in the Netherlands, Germany, New Zealand and India. It is the world’s leading manufacturer of pharmaceutical excipients for oral solid dose and dry powder inhalation formulations.

Tanja Schaffer, Vice President Pharmaceutical Industry, DKSH Performance Materials, said, “We are very pleased that DFE Pharma has chosen DKSH as its partner for the distribution of their Pharmacel excipient. We can leverage on our size, experience and industry know-how to provide tailored services and distribution opportunities for DFE Pharma.”

DKSH is headquartered in Zurich and has 27,600 specialised staff operating from 750 business locations in 35 countries. DKSH generated net sales of CHF 9.8 billion in 2014.

NATIONAL CHEMICAL COMPANY WINS AWARDThe National Chemical Company (NCC), the parent company of NatChemCo, has been named in the Deloitte Best Managed Companies’ awards for the second year running.

The company received its award at a special ceremony on 6 March 2015 attended by more than 800 representatives of the Irish business community.

NCC, established in 1969, is a procurement supply chain partner for chemicals, food ingredients, technical polymers, and is particularly active in the life sciences sector.

Alan Looney, Chief Executive of NCC said, “We are proud to achieve this prestigious award. The receipt of this accolade and our special award last year for Commitment to Learning was great for staff moral and reflects our commitment to personal development. We seek to be the employer of choice for the best talent in our sector.”

HELM EXTENDS UK FERTILISER BUSINESSHELM is in the process of extending its fertiliser business in the UK at three new locations. Mistley and Bristol have storage capacities of 6,000 tonnes each. Howdendyke, another new location, has storage capacities of 15,000 tonnes and also has a blending facility able to handle 100,000 tonnes per annum. Commissioned in April 2014, the new plant means that quality coated blends are now produced in Howdendyke as well. The new locations and blends will facilitate a highly promising debut in direct marketer operations.

COMPANY NEWS

The winning Warrant Group team (left to right) Jarrad Bycroft, Lynsey Morrison, and David Roff.

CBA members win Chemicals Northwest Awards

To make sense of the increasing amount of data collected, chemical companies need new strategies, improved skills and enhanced technological capabilities to deal with the impact this has on the effectiveness of their supply chain operations. While most companies share the view that big data will play an increasingly important role, over 30% still have difficulty adopting or understanding the true capabilities required to handle it effectively.

■ Developing sustainable supply chains

From the high street to the factory, the marketplace is abuzz with sustainable supply chain initiatives. This focus is in part driven by a shift in consumer priorities, but it is also relevant to the drive for operational performance. Our research underlined the relevancy of this trend for the chemical supply chain industry; only 5% of executives said that this issue was of no major concern to their customers, while over half stated that it was critical.

Implementing initiatives to improve sustainability practices will enable supply chain and sourcing organisations to allocate resources more efficiently and mutually improve sustainability standards in the global supply chains of the chemical industry.

Another highly topical area relevant to maintaining a sustainable supply chain is the tightening of environmental controls that will force chemical companies to reduce the carbon intensity of their supply chains over the next decade.

Almost 75% of companies believe the practice of pooling resources, either through swap agreements or consolidation of shipping containers and handling equipment will help reduce logistics costs. The effective implementation of this concept, however, will require a close match in both the technology standards and the capabilities of the participants. As such, the verdict amongst respondents is not conclusive, with 23% of respondents unconvinced by the practicality of the proposed solution.

If successful, resource pooling will represent a dramatic change in the way chemicals are produced and distributed in Europe. Redefining the optimal combination of multiple transport modes in order to reduce lead times and keep inventory costs down will be instrumental to the improvement of environmental sustainability initiatives.

The WBR Logichem Benchmarking Report can be downloaded from http://wbresear.ch/ss

continued from page 9

Optimising supply chains – facing the challenges Take action now on substance

testing for REACH 2018ReFaC’s Rachel Hill explains why testing should be on companies’ current agenda

About ReFaCReFaC is a specialist regulatory compliance company able to assist with all aspects of REACH registration including dossier planning and substance testing. ReFaC is a CBA company – Telephone 01270 258530 or go to www.refac.eu

Rachel Hill

VISIT ReFaC AT CHEMSPECVisit ReFaC at Chemspec Europe, 24-25 June 2015, Cologne, Germany - Stand RS07 in the Regulatory Services Zone. ReFaC’s Rachel Green will be speaking on 24 June 13:30-14:00 in the Regulatory Services Zone on ‘The Challenges Facing 2018 Registrants’.

ReFaCREACH Facilitation CompanyRegulatory Facilitation Company

Outlook 1312 Outlook

GROUP HOUSE – THE IDEAL MEETING VENUE

As an introductory offer, the first booking by each CBA member company is eligible for a 50% discount during 2015.

Only 29 miles from Manchester airport and served by excellent road and rail links, CBA’s facilities are fully equipped and ideal for board meetings, formal conferences, sales meetings, seminars or workshops.

Non-member companies can also use these facilities but are charged at a higher rate.

Full day rates cover 0900–1700 hours; half-day rates cover 0900-1300 hours or 1400-1700 hours.

To make a a booking, contact Claire Morris at claire.morris@chemical.org.uk or call 01270 258200

■ CONFERENCE ROOMCBA’s ground floor Conference Room is able to accommodate up to 40 delegates in classroom style (as pictured) or up to 60 delegates seated in theatre style.Hire RatesMember companies £300 + vat Full day

£200 + vat Half day

Non-Member companies £400 + vat Full day

£245 + vat Half day

■ MEETING ROOMThe first floor Meeting Room can seat up to 16 people in board-room style.Hire RatesMember companies £110 + vat Full day

£70 + vat Half day

Non-Member companies £150 + vat Full day

£90 + vat Half day

■ BOARD ROOMCBA’s ground floor Board Room can seat up to ten people.Hire RatesMember companies £80+ vat Full day

£40 + vat Half day

Non-Member companies £110 + vat Full day

£65 + vat Half day

Group House, CBA’s new headquarters at Crewe Business Park, is the ideal location for meetings and has a number of excellent, state-of-the-art meeting and conference facilities that are available for hire on a day, or half-day basis.

■ AUDIO-VISUALAll CBA’s facilities are equipped with audio-visual systems with screens, suitable for video or PowerPoint presentations. Each seating position in the main Conference Room has its own power socket when used in classroom-style.

On-Line facilities can be provided by prior arrangement and are subject to CBA’s Terms of Use and bandwidth availability.

■ REFRESHMENTSHire rates are inclusive of tea and coffee served in the morning and afternoon for full day events and once in the case of half-day events. Buffet lunch menus are available by prior arrangement at cost plus a small service charge depending on the numbers involved.

■ CONFERENCE ROOM

■ MEETING ROOM

■ BOARD ROOM

Chemtrac® is proving to be an effective management tool in helping member companies keep abreast of global regulatory compliance and manage the risks associated with their product portfolios.

Lake Chemicals and Minerals, one of the companies that have taken advantage of the special introductory subscription, says the Chemtrac® database is living up to its expectations.

Quality Assurance Manager, Lorraine Gorrell, told Outlook, “We use the database almost every day. It’s proving to be excellent value for money as well as an effective management tool."

Chemtrac® is an on-line regulatory database covering more than 150,000 substances cross-referenced to relevant regulatory provisions. It monitors worldwide and European regulations as well as providing a sector analysis of chemicals, hazards, and applications.

Just a few introductory subscriptions to chemtrac® are left at the special introductory rate of £300 + vat – less than half the usual cost. Subscriptions will be allocated on a first-come, first-served basis and are limited to one user per company.

For further information, contact Michael Cooper at CBA on 01270 258200 or e-mail michael.cooper@chemical.org.uk

ProductsThe following products are ONLY available to CBA member companies

Outlook – CBA’s Member Magazine + On-Line Management Briefing Outlook Magazine and On-Line Outlook Management Briefing are key elements in CBA’s member communications programme. They are distributed free on demand.

Update – On-Line Technical NewsletterCBA’s On-Line Update Newsletter is a user-friendly way of keeping up-to-date on technical issues, regulatory changes, as well as events, meetings and conferences.

Chemical Services DirectoryCBA’s free Chemical Services Directory is a searchable, on-line directory promoting services offered by CBA Affiliate and Logistics Services member companies. Please Note – although anyone can

search the Directory, only Affiliate and Logistics Services member companies can use the facility to advertise their services.

ServicesCBA offers a range of paid-for consultancy services to assist its member companies minimise the cost of regulatory compliance.

These services are delivered by CBA’s own staff and by the personnel of ReFaC – CBA’s specialist regulatory compliance company.

■ Compliance Audits: REACH; Classification, Labelling and Packaging; Health & Safety; Security; Environmental.

■ Dangerous Goods Safety Adviser ■ Pre-ESAD Assessments■ On-Site Training: Health & Safety; COMAH; Import and

Export; Environmantal; Emergency Response.

For further information, contact CBA on 01270 258200.

CBA PRODUCTS AND SERVICES

Chemtrac® proving an effective management tool

ABOUT chemtrac®

The database contains over 150,000 chemical substances, including the entire EC inventory, and covers: ■ EU chemicals regulations (REACH, CLP, RoHS, ELV, WFD,

Cosmetics, Biocidal Products and Toy Safety)■Global chemicals regulations (US, Canada, Japan, Taiwan, China

and others)■Global conventions (POPs, Rotterdam Convention, OSPAR)■Governmental lists (Member States list for prioritising SVHCs,

EDCs, IARC)■NGO lists (SIN, ETUC, PAN, FOE list of endocrine disrupting

pesticides)■Sector lists (automotive, aerospace, apparel and footwear,

electronics)■Information on common uses and applications for thousands of

the most relevant substances in the database.

Outlook 15

AGROSMART UK LIMITED

AgroSmart is an independent, privately owned company with almost 25-years experience in toll-manufacturing services. It delivers small, medium, or large batch orders to the agricultural and public health sectors meeting the specifications laid down by the Food and Agriculture organisation and World Health Organisation. Its product range includes ready-to-use formulated fungicides, herbicides, and insecticides. AgroSmart’s highly skilled workforce operates the latest equipment and is backed by an on-site analytics facility and quality assurance process accredited to ISO9001:2008. The company offers a bespoke formulation service and provides a packaging and labelling service for containers ranging from 100ml bottles to 1,000L IBCs.

STOLTHAVEN DAGENHAM LTD

Stolthaven Dagenham handles a wide range of bulk liquids, including fuels, chemicals, agricultural and food products. Capabilities include drumming services and IBC filling, laboratory services, blending, dilution and product heating. A deepwater jetty receives vessels with up to 9.3 metres draft. Stolthaven Dagenham provides tailor-made storage solutions for speciality chemicals and operates a wide range of tank sizes and specialist handling equipment. The current capacity of the terminal is 134,000 cubic metres. The terminal is moving ahead with a major refurbishment and expansion programme with additional capacity due to be commissioned Quarter 3 of 2015. Customers are welcome to contact the terminal for more detail.

CORDSTRAP LIMITED

Cordstrap is the global leader in research, development, manufacturing and sales of Cargo Securing Systems. Cordstrap offers the industry’s broadest and most innovative portfolio of cargo securing products. With over 50 years’ experience and our knowledge of the latest rules and legislation, we are cargo securing specialists. The global expansion of the chemical industry creates shipping requirements with unique challenges whether drums, IBC’s or bulk bags. We work closely with our customers, keeping them up to date with effective cargo securing solutions – thus ensuring that between us, we keep the worlds cargo safe..

WESTEND AS LIMITED

Westend AS Ltd is a distributor of raw materials for the animal feed industry in both the UK and Irish markets. With offices in Holmes Chapel and Cork, Westend are a rapidly growing distributor supplying a range of feed macro minerals, additives and associated chemicals. Utilising their UK and Irish bulk to pack storage facilities Westend offer a range of packaging formats from 25kg bags to IBCs and bulk.

Welcome to our new members

Contact Graham HaighE-mail info@agrosmartuk.com

Telephone 01484 866959

Website www.agrosmartuk.com

Contact Steve Walker, Terminal Manager

E-mail s.walker@stolt.com

Telephone (020) 8593 7211

Website www.stolt-nielsen.com

Contact Jim Robertson - Cargo Securement Specialist (Chemicals)

Alan Green - Country Manager

E-mail Jim.Robertson@cordstrap.net Telephone 01695 554700

Website www.cordstrap.com

CBA’s Technical Team – Doug Leech, Michael Cooper and Roland Mugarura – highlight current issues

Technical Helpdesk Doug Leech

Michael Cooper

Roland Mugarura

New speed limits for HGVsNew speed limits for HGVs come into force on 6 April 2015. The national speed limit – in England and Wales - for heavygoods vehicles over 7.5 tonnes on single carriageways increases from 40mph to 50mph and on dual carriageways, from 50mph to 60mph.

CLP amendmentsAmendments to the Classification, Labelling and Packaging of Chemicals (CLP) come into force on 31 May 2015. They bring other European legislation in line with the CLP Regulation covering substances and mixtures which itself comes into force on 1 June 2015.

Smoke-free private vehicles Smoking in cars carrying children (under 18) is prohibited by the Smoke-free Private Vehicles Regulations coming into force in England and Wales on 1 October 2015. Penalties under the regulations are a £50 roadside fine. Electronic cigarettes are not banned by the Regulations which also do not cover smoking in a convertible car with the top down.

14 Outlook

Changes to the drug driving lawOn 2 March 2015 the law relating to driving while under the influence of drugs changed.

It is now illegal to drive with certain drugs in the body above specified levels. The new offence will work alongside the existing offence of driving whilst impaired through drink or drugs.

The new law covers sixteen legal and illegal drugs, including cannabis, cocaine, ecstasy and ketamine. The Police can screen drivers for cannabis and cocaine at the roadside. They will also be able to test for these and other drugs at a police station, even if a driver passes the roadside check. The limits for all illegal drugs are low – taking even a very small amount of an illegal drug could exceed the legal limit. The penalties for drug driving are the same as for drink driving. This means on conviction a minimum 12-month driving ban, a criminal record, and a fine or up to six months in prison or both.

COMAH changesChanges to the Control of Major Accident Hazard Regulations come into force on 1 June 2015. Most of the main COMAH duties remain the same, but there are changes relating to how dangerous substances are classified. Importantly, new duties are imposed on lower tier COMAH sites. In line with upper tier sites, lower tier operators will now have to provide information to the public about their sites and its hazards. For HSE guidance on the changes, go to http://www.hse.gov.uk/seveso/be-prepared.htm

The Planning (Hazardous Substances) Regulations 2015 have been laid before Parliament and will come into force on 1 June 2015, They transpose the land-use planning requirements of the European Seveso III Directive and relate to the way hazardous substances consents operate, and the way in which the planning system reduces the likelihood and impact of major accidents. These regulations are the responsibility of the Department for Communities and Local Government and only apply in England. Planning practice guidance on hazardous substances is also being updated to reflect changes that will be introduced on 1 June 2015.

Contacts Dermott Hughes (Director)E-mail dermott.hughes@westendagri.com

Telephone 01477 544 400

Website www.westendagri.com

WHAT'S ON

16 Outlook

Date 16 April 2015 Event Export Essentials *

Date 21 April 2015Event COMAH Safety Leadership Group *

Date 29 April 2015Event CBA Annual LunchVenue Grosvenor House, Park Lane, London

Date 6 May 2015Event COMAH Introduction

Date 20 May 2015Event Trade Controls *

Date 17 June 2015 Event CEO Safety Leadership

Date 18 June 2015 Event Responsible Care –

Back to Basics *

Date 10 September 2015 Event SDS – How to use them

Date 17 September 2015Event Advanced Responsible Care *

Date 22 September 2015 Event Southern Regional Compliance

Update *Venue TBC

Date 24 September 2015 Event Northern Regional Compliance

Update *

* CBA member only events

The venue for all events is CBA’s Conference Centre, Group House, Crewe, unless otherwise indicated.

Golden 50 for Potter LogisticsCongratulations to Potter Logistics on celebrating fifty years in business.

Founded in 1965, by Derrick Potter, the company’s Executive Chairman, the business started with just one yellow lorry. Now, fifty years later, Potter Logistics currently operates from six distribution centres and rail freight terminals employing more than 300 staff.

The Yorkshire headquartered business has seen significant organic growth over the years along with several acquisitions and joint ventures in the logistics, property and material recycling sectors.

Derrick Potter said, “I started Potter Logistics with a vision of a friendly and can-do transport and distribution business. Over the years, the scope of our services has expanded to establish a professional logistics company that has not forgotten its original ethos.”

The company provides specialist logistics solutions focusing on the chemical, agricultural, pharmaceutical and food industries. Potter Logistics operates distribution centres located in Droitwich, Ely, Knowsley, Ripon, Selby and York.

To celebrate its fifty years in business, the company is commemorating the anniversary with changes to its vehicles’ livery, further additions to its fleet, and a special celebration for its employees at Doncaster Race Course in September.

Mottie Kessler wins IoD North West AwardCongratulations to Mottie Kessler, Chairman and Chief Executive of 2M Holdings on winning the Institute of Directors North West Global Director of the Year Award.

UK Trade & Investment support the IoD Awards that celebrate leadership excellence. Mottie Kesler was also a finalist in the Science and Innovation Director of the Year. The Award was presented at a special ceremony in London on 2 March 2015.

2M Holdings has over 3500 customers worldwide and is headquartered in the UK and has subsidiaries in: China, Benelux, Ireland, Poland, Scandinavia and Brazil. The group exports to customers in over 75 countries.

Our picture show (left to right) - Mottie Kessler, Dr Maggie Kessler - Global Export Director (Triklone/Perklone products) and Paul Stowers, Deputy Regional Director at UK Trade & Investment North West.