KEMIA. jacomex -kaapit pitävät vaativatkin projektit hanskassa. INNOVATIONS UP AND DOWN THE CRITICAL BIO AND NANO. Finnish Chemical Magazine

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1 KEMIA SPECIAL ISSUE 5/2010 Finnish Chemical Magazine INNOVATIONS Making the Future UP AND DOWN in Concert with Customer Sectors jacomex -kaapit pitävät vaativatkin projektit hanskassa. THE CRITICAL Year of Reach BIO AND NANO Fulfilling the Promises Ääriolosuhteiden asiantuntija. labo line oy Karjalankatu 2, Helsinki p. (09) , Applikaatioesimerkkejä: kemikaalien käsittely nanotutkimus litiumakut radioaktiiviset aineet OLED-kehitys katalyysit bakteerit & virukset

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4 CONTENTS sisällys Efficiently cross-linked with other sciences, innovative chemistry is the enabler of a sustainable future. (p. 6) Scanstockphoto 21 Innovation and Human Resources Still in Focus Riitta Juvonen 28 Proactive Contracts For a Changing Business Environment Osmo Härkönen and Soili Nystén-Haarala 30 Biotechnology Fulfilling the Promises Carmela Kantor-Aaltonen 34 Models for Biorefining Finland Pertti Koukkari 38 Better Bread by VTT Kati Katina 40 Finnish Nanotechnology From Small Beginnings to Big Business Markku Lämsä 78 Näkökulma Anja Nystén 78 Kemia silloin ennen 79 Tutkimuksessa tapahtuu 82 Viinan viemät vallankahvassa Pekka T. Heikura 85 Kokouksia, tapahtumia BIO 2010 todisti alan voiman Katja Wallenlind 86 Energiatehokkaat muovit apuna ilmastotalkoissa Sanna Alajoki 88 Ulkomailta 90 Keemikko Päivityksiä 6 Chemical Industry Into the Future Through Innovation Timo Leppä 10 Up and Down in Concert with Customer Sectors Penna Urrila 16 Reach, Climate, Energy Questions of Destiny for the Chemical Industry Aimo Kastinen and Juha Pyötsiä 42 Shaping the Future with Functional Materials Markku Heino 44 Pharmaceutical Industry Reference Price System Revolutionising the Market Nadia Tamminen, Sisko Loikkanen and Soili Helminen 48 Cosmetics, Toiletries and Detergents Markets Growing Slightly Sari Karjomaa 91 Henkilöuutisia 95 Julkaisuja 95 Tulevia tapahtumia 96 Seurasivut 98 Puolet petäjäistä Kemia kasvatti kessun Pekka T. Heikura 99 Vihreät sivut 20 Meeting the Reach Deadlines Pragmatism Is the Key Niina Rantti 52 Up with Plastics Vesa Kärhä 54 The Rubber Industry Tough Times Are Over Tuula Rantalaiho 57 Paint and Printing Ink Industries Bottom Reached Years of Growth Ahead Aimo Kastinen 60 Industrial Gases Sustainable Development Requires Gas Competence Jukka Gustafsson and Johanna Ylikoski 62 Poor Year for Industrial Minerals and Rocks Markku J. Lehtinen 64 Chemistry Education Goes Electronic Jan Lundell Scanstockphoto The burden saddled on Europe s chemical industry by Reach is the heaviest in the world. (p. 17 and 20) 66 Separation Technologies Creating New Solutions Riina Salmimies and Mari Kallioinen 68 Tätä mieltä Voittajaksi muutoksessa Timo Mämmelä 73 Uutisia Rajaton valta ja viinanhimo ovat pelottava yhdistelmä. Suuruudenhullu juoppo Josif Stalin kuuluu maailmanhistorian julmimpiin diktaattoreihin. (s. 82) 4 KEMIA 5/2010

5 EDITORIAL September 2, 2010 KEMIA Kemi Vol. 37 Coden: KMKMAA ISSN Toimitus Redaktion Office Pohjantie 3, FIN Espoo puh faksi Päätoimittaja Chefredaktör Editor-in-Chief DI Leena Laitinen Toimituspäällikkö Redaktionschef Managing Editor Päivi Ikonen Taitto Layout K-Systems Contacts Oy Päivi Kaikkonen Sihteeri Sekreterare Secretary Irja Hagelberg Vakituinen avustaja Permanent medarbetare Contributing Editor Sanna Alajoki Ilmoitukset Annonser Advertisements Myyntipäällikkö Forsäljningschef Sales Manager Sauli Ilola Tilaukset Prenumerationer Subscriptions puh , faksi Tilaushinnat Kotimaassa 89 euroa (kestotilaus 79 euroa), muut maat 120 euroa Kouluille 45 euroa, Prenumerationspris i Finland 89 euro, övriga länder 120 euro Subscription price (out of Finland) EUR 120 Irtonumero/Lösnummer/Single copy EUR 15 (special issue 5/2010 EUR 19) Osoitteenmuutokset Suomen Kemian Seura puh , faksi Kustantaja Utgivare Publisher Kempulssi Oy Toimitusjohtaja Verkst. direktör Managing Director Leena Laitinen Pohjantie 3, FIN Espoo puh Toimitusneuvosto Redaktionsråd Editorial Board Laboratoriopäällikkö Susanna Eerola, Roal Oy Toimitusjohtaja Saara Hassinen, SalWe Oy Professori Matti Hotokka, Åbo Akademi Toimituspäällikkö Päivi Ikonen, Kemia-Kemi Tutkija Helena Laavi, Aalto-yliopisto/TKK Päätoimittaja Leena Laitinen, Kemia-Kemi Professori Jan Lundell, Jyväskylän yliopisto Apulaisjohtaja Juha Pyötsiä, Kemianteollisuus ry Professori Markku Räsänen, Helsingin yliopisto Tiedotuspäällikkö Sakari Sohlberg, VTT Aikakauslehtien Liiton jäsenlehti Painos Upplaga Printing order Forssan Kirjapaino, Forssa 2010 ISO 9002 Can Companies Reach the Goal? The implementation of Reach is at a critical stage. No one knows yet if the three months final sprint is enough to reach the goal on time. The pressure is intense both in companies and in the European Chemicals Agency (Echa). It serves no-one s interests if this massive project fails and companies providing valuable services to society end up breaking the law despite all their efforts. From a company s point of view, Echa has not made the task easy. Instructions have been provided bit by bit and often late. The companies have had to deduce which of the requirements apply to them and how the instructions should be applied. Communication with Echa experts is directed solely through electronic media, and requests for information are replied to with a delay. Furthermore, the replies often seem strange from the everyday operations point of view or even miss the actual question. Another big stumbling stone are the IT systems: their version updates and usage problems force companies to keep an armada of IT gurus on standby. Echa, too, is frantically trying to figure out a way for tens of thousands of companies to get through the ordeal successfully. In exceptional cases with well-defined reasons, companies are allowed to submit incomplete registration dossiers, to be completed later. However, the prerequisites for extensions are still unclear, and each company must do its utmost to get all its substances duly registered by the deadline. Work in Substance Information Exchange Forums (Siefs) is a story of its own. The beautiful idea that all manufacturers of a particular substance would produce the necessary data in cooperation might work in a perfect world. In the real life competing companies are tempted to withhold information from each other or to get rid of the weakest links by, for instance, defining a standard of purity that some of the manufacturers are not able to reach. We are facing an extremely strict sieving process that will unavoidably eliminate some of the players. Even the ones left in the field must bear in mind that the registration is only the beginning of a process which will have a permanent effect on business operations. Antti Mannermaa Leena Laitinen 5/2010 KEMIA 5

6 Chemical Industry Into the Future Through Innovation Chemistry is an enabler of a sustainable future, and it will remain the central science during this century. However, innovation in chemistry alone will not be enough in the evercontinuing pursuit of solutions: an efficient cross-linking with other sciences will be also needed. A solid flow of new innovations is made possible by a network linking research, development and innovation (RDI) by companies with that by universities and academic institutes. Timo Leppä Europe has been losing market share in the growing global chemicals market while Asian countries are gaining over other regions due to their fast growth. European, including Finnish, chemical companies must respond to the competition through marketing excellence and efficiency of operations. However, on top of that a high degree of innovation is needed. Innovation is often understood as a constant flow of new products and technologies to the market. New applications are definitely necessary but innovations also include services, new concepts, and business models. Innovation in chemistry is a key that opens up new roads for many other industries, too, as the chemical industry has an exceptionally broad customer range. The Finnish chemical industry has a strategic interest in growing the knowledge-intensive segments of its business portfolio. It is therefore very important for companies to raise the ambition levels and risk profiles of their RDI activities and extend the range of RDI programmes from short-term to medium- and long-term. For the chemical industry, safe use of the new applications brought to the market by innovation is very important. In Finland, the industry is working constantly to improve the safe use of chemicals and maintain transparent and trustworthy communication about the industry and its products. 6 KEMIA 5/2010

7 Finnish Chemical Industry In addition to the technology and forest industries, the chemical industry is one of the three biggest industrial sectors in Finland, and an important player in the Finnish economy that fosters welfare and offers employment to around 35,000 people. More than three-quarters of chemicals produced go to exports, either directly or as a part of customer products. R&D intensive, the chemical industry has spent more than 350 million euros annually in RDI investments. This represents about 2% of the industry s turnover. Safety at work has also been a focal point for a long time and results achieved have been very good. In autumn 2010, an award recognising outstanding performance in safety at work will be announced by the Chemical Industry Federation of Finland, to follow the Innovation Award established in late 1990 s. Public funding needed In 2009, Finnish RDI investments were almost 4% of the GNP, which puts Finland in second place after Sweden in the EU. This, however, does not tell the whole story as, due to the size of the Finnish economy, the absolute amounts invested in RDI are smaller than in many competing countries. 94% of funding for RDI of Finnish companies comes from the companies themselves, while public funding is mainly channeled through Tekes, the Finnish Funding Agency for Technology and Innovation. In contrast to most of Europe, indirect support through tax benefits is not used, although this approach is being promoted by the Chemical Industry Federation. In many countries, tax benefits associated with RDI investments actually form a bigger part of the support system than direct funding. In 2009, less than 8% of the EU budget was used for research, competitiveness, and innovation. Building the future of the continent demands increased RDI funding. At the same time, application processes must be simplified and made more efficient so that motivation for seeking public funding from the EU will be sufficiently high. Long-term commitment and farreaching targets are needed for a working innovation environment. The most efficient combination for cultivating innovation is created by public interest and funding together with private initiatives. Public funding is needed to secure long-term objectives and to encourage companies to make investments in RDI. Moreover, it is widely known that public funding also increases private funding. Scanstockphoto 5/2010 KEMIA 7

8 Reach is burdensome but it may also open a door to new opportunities for innovative companies. Reach a Boost for Innovation? Europe is currently implementing comprehensive and complicated legislation concerning the safety of chemicals. The objectives for Reach focus on improved chemical safety but it has also been stated that the legislation should nurture innovation and give rise to a number of new safer chemicals as some of the old ones would disappear from the market. Reach is unique in its coverage, complex in its structure, and very ambitious in its goals. Over the current year it has been seen that registration of chemicals according to Reach is a cumbersome procedure. For the time being, it seems that Reach has not been a boost for innovation within the chemical industry, but in many cases just the opposite. The burdensome registration process combined with high registration costs is putting the brakes on the development of new chemicals and applications, especially in small- and medium-sized companies. This is happening at the same time as companies are weighing registration costs against sales volumes and margins in order to decide which chemicals will continue to be produced and which ones will be abandoned. The Finnish chemical industry is highly committed to fulfilling the Reach legislation. It has detected the opportunities lying underneath the changes which will happen in the market. The industry has a long tradition in environmental management, safe use of chemicals, and sustainable use of resources. Reach will offer new opportunities for companies willing to grow their market presence with new products that may be acquired through RDI work or through acquisitions. Scanstockphoto Chemistry research to be evaluated The chemical industry looks at investments in RDI operations with the same eyes as it uses to scrutinise other investments. This means that the industry focuses on results and efficiency of the investment process rather than concentrating on resources and input. The main interest often lies in shortto medium-term projects that are able to create quick cash flow, preferably with low risk. Starting in 2008, the economic turmoil further shifted the balance from long-term to short-term targets. Universities and academic institutions focus on basic research and long-term development, thus forming a natural partner for the RDI efforts of the Finnish industry, which they can complement. A change in legislation during 2010 renewed university management and increased the autonomy of universities, opening up new possibilities for financing their operations. Nevertheless, the university network and structure in Finland is still scattered. In many cases, institutions within universities are too small to become highly productive and efficient. Therefore, research and educational institutions should aim at reaching critical volumes in their work and resources. Small-scale operations do not provide enough of the resources necessary for topflightwork in the fast moving research world. Being part of strong international networks is essential for efficient academic research, and further internationalisation of Finnish universities is an apparent need. During the autumn of 2010, the Academy of Finland will conduct an international evaluation of Finnish chemistry research. Describing focus areas and expertise for different research institutes and portraying possible developmental paths, the evaluation will provide an important research and science policy tool that will enable strategic development of the current structures. The writer is Director General of the Chemical Industry Federation of Finland. 8 KEMIA 5/2010

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10 Chemical Industry in Concert with Customer Sectors The chemical industry in Finland is strongly connected with many other branches such as the forest industry. Hence, the economic downturn experienced by customer industries has directly affected Finnish chemical companies. Penna Urrila In 2009, a sharp fall was recorded within the Finnish chemical industry in both production and export figures. Chemical companies exported 25% less in 2009 than in 2008 when measured in terms of value, while production volume decreased by more than 13%. Falling production had its effect on employment, too. According to Statistics Finland, the Finnish chemical industry work force decreased considerably. Last year, it employed around 33,200 persons, down from over 37,000 one year earlier. Decreasing figures were observed in the chemicals and chemical products industry as well as in the rubber and plastic products industry. However, investments in the chemical industry were still at a fairly high level. This was due to some larger investment projects that were started before the 10 KEMIA 5/2010

11 crisis broke out. Total investments increased to 790 million, up from 614 million in Nevertheless, according to the Investment Survey by the Confederation of Finnish Industries EK, investment figures will be clearly smaller this year. Finland seriously hit A small and open economy, Finland is very dependant on global trade flows and export demand. That is why the Finnish economy was so severely hit by the current crisis despite the fact that the domestic banking sector had a sound base. The value of Finnish exports dropped by over 30% in 2009 year-on-year. The fall in export demand led to a decline of around 20% in industrial production. Finland s GDP decreased by 8.0%, which is the largest drop measured in a single year since Finland s independence (1917 ). All these figures show that the crisis has been extremely deep and much steeper than any previously recorded downturn. Even the massive economic crisis that Finland suffered in the early 1990 s was much more gradual: GDP fell by 10.3% over a three-year period. With GDP shrinking at a record pace, employment has, however, developed Manufacturing production Scanstockphoto 5/2010 KEMIA 11

12 Global Economy From Collapse to Gradual Recovery 2009 was a year of dramatic events in the global economy. While the financial crisis spread to the real economy with full force, towards the end of the year some first signs of new growth were already observed. The period of the last two years has been full of the most spectacular events in modern economic history. The worst economic crisis since the 1930s and the first genuinely global financial crisis broke out in autumn Then, governments and central banks throughout the globe took extreme and to some degree quite unconventional measures to prevent the worst-case scenario from occurring. As a whole, the global economy has now returned to a path of growth. Nevertheless, the sustainability of this new growth has been questioned widely. It remains unclear whether the global economy will be able to remain on track when stimulating measures are withdrawn. In addition, increasing sovereign debt is burdening public economies in the medium- and long-term. Hence, longer-term growth prospects can be described as hazy. A global financial crisis was triggered in autumn 2008 following the collapse of the US-based investment bank Lehman Brothers. Globally integrated financial markets were virtually paralysed and therefore the crisis spread rapidly all over the world. Not only were the financial markets affected, but tight credit restraints for manufacturers as well as disappearing consumer confidence also caused a massive fall in industrial production worldwide. In late 2008 and the first half of 2009 production fell dramatically in almost all industrialised countries. Also in annual terms, last year was by far the worst in post-ww2 economic history. Global GDP growth turned into a slight decline for the first time in many decades. Even more striking was the 11% fall in global trade. Governments and central banks had to respond firmly to the outbreak of the crisis. Tough measures were needed when financial markets went to the edge of a full-scale collapse. First of all, interest rates were lowered at a record pace. In addition to this, central banks took unprecedented actions by quantitative easing of monetary policy to restore liquidity to the banking system and facilitate lending to customers. As a second pillar of economic stimulation policies, most governments have been reviving their domestic economies by increasing public consumption and/or lowering taxes. Unevenly towards recovery In the second half of 2010, the global economy has clearly entered a recovery phase. The International Monetary Fund IMF predicts that the world economy will grow by 4.6% this year, which would be slightly above the long-term average. However, the growth pattern is fairly uneven: this year s growth is expected to be strong in developing markets and low to moderate in advanced economies. High sovereign debt caused increasing worries in the financial markets, especially in spring 2010 when many European countries struggled to refinance their debt payments. Greece was on the edge of collapse but an international rescue mechanism was formulated to protect it and many other countries from so-called defaults. At the moment, the worst financial market turbulence seems to be over and confidence is slowly returning. China has undoubtedly been the most powerful engine in the rebound of the global economy. Some growth moderation is nevertheless expected, and growth figures are expected to be in the single digits in The US economy has also turned upwards, but the labour market is still performing poorly, with a high unemployment rate. Consumer confidence is at a low level, which is an alarming indicator since the US has traditionally been very dependent on private consumption. European economies have at last shown some brighter signs. The recovery has, however, been more gradual than in the other main markets, although the latest German production data has been a positive surprise and might indicate some acceleration of growth throughout the continent. Despite this optimism, Europe s longer-term growth opportunities remain unclear due to sovereign debt worries and the poor competitiveness of many important economies. in a surprisingly positive way. The unemployment rate has stayed below 10%, which is much better than some earlier forecasts that the unemployment rate would reach 12 13% in the second half of This is a consequence of fairly good consumer confidence, stimulus measures taken by the government as well as reasonably solid balance sheets in many Finnish companies. As a result, bankruptcies have increased only moderately and layoffs have been to a large extent only temporary. Getting a grip on a new growth trend? Despite sluggishness in developed economies and Europe in particular, the Finnish economy has started to grow in the first half of The pace of growth has so far been only moderate but the latest industrial production figures have been relatively promising. Growth estimates have been revised slightly upwards, and most research institutes predict GDP growth of around 2% in 2010 and possibly somewhat more in In the latest quarterly business survey for Finnish companies, published in August 2010, chemical industry companies report a noticeable improvement in their business situation during the last few months. They have clearly received more new orders than in the first quarter, and the current situation is described as moderately positive. In addition, some further recovery is expected in the second half of Based on the latest available information, stable growth in production is expected to continue until at least early The writer is Senior Economist at the Confederation of Finnish Industries EK. 12 KEMIA 5/2010

13 Bayer is a global enterprise with core competencies in the fields of health care, nutrition, and high-tech materials. In Finland we market over-the-counter products, tools for monitoring diabetes therapy, prescription medicines, crop protection agents and control substances, and industrial materials and chemicals. The pharmaceutical production plant in Turku focuses on polymer-based drug delivery technology and on the manufacture of tablets and capsules. Medicines manufactured in Finland are exported to over 100 countries. The use of polymers in long-term administration of drugs represents Finnish expertise. Polymer-based, long-acting drug delivery enables administration of drugs to a specific target more precisely, and it can be utilized in manufacturing products with a time of use lasting from a few months up to several years. New products for contraception and hormone therapy are studied and developed continuously.

14 Chemistry everywhere in Finland Muovista huomista ChemistryLab Gadolin AGA ideas become solutions. Oikotie ÄHTÄRI Tel Fax Water is the connection COMPOSITES CONSTRUCTION & CERAMICS INDUSTRIAL CHEMICALS PLASTICS & PACKAGING RUBBER & POLYMER COMPOUNDING Estonia Kazakhstan 14 KEMIA 5/2010

15 Ulkomaiset standardit kätevästi kauttamme SFS:stä voi tilata myös ulkomaisia standardeja. Autamme kaikissa standardeja koskevissa asioissa - nopeasti ja luotettavasti! Ota yhteyttä tai Lean Times Demand Faster Results Our Life, Our Future 5/2010 KEMIA 15

16 The effectiveness of EU chemicals policy shall be tested at the turn of the year when the first registration phase of the Reach chemicals legislation is completed. In 2010, significant decisions on the Union s climate and energy policy impacting on the whole of the next decade shall also be made. Reach is reaching high. Together with EU climate and energy policies, the legislation is the question of destiny for chemical companies. Scanstockphoto 16 KEMIA 5/2010

17 Reach, Climate, ENERGY Questions of Destiny for the Chemical Industry Aimo Kastinen Registration for the first phase of Reach finishes at the end of November. Then we will see whether the standard of legislation has been set correctly in respect of the EU s operational ability. If it isn t, significant problems will result for the community s treatment of materials and the EU s competitiveness, and Reach s value as a global model will become questionable. Also, the CLP regulation concerning classification, labelling and packaging of chemicals will start to come into effect as from the beginning of December. In the first phase, the question is one of classification of substances, and gradually the requirements will be applied to mixtures too. At the same time, Safety Data Sheets shall be renewed in accordance with their own transition period. The current product legislation concerning chemicals shall be fully revised by the mid-point of the decade, but before then company safety officers will have to do lots of work to change the previous routines. Questions about emissions trading The enforcement provisions of the Emissions Trading Directive issued at the start of 2009 are however still being prepared. Last autumn, a decision was made on limits for the carbon-leakage sector, but the bases for granting free emission quotas are still undecided. The limitations concern which company operations fall within the scope of emission quotas, what are the years of comparison that are used to estimate the quantities, and on what basis the relative energy efficiency of companies is calculated. All Finnish companies that are now within the scope of emissions trading shall continue for a third period; however, with the bounds of application being extended. New companies will also be included, including five chemical-industry businesses. Instead of the centralised trading that Finland supports some of the emission quotas will be sold by national markets and only a fraction of them will be sold by a service covering the whole EU. One concern of the Finnish chemical industry has been that they would be under the thumb of the big energy companies in the auction, because energy suppliers will dominate the emissions trading. When electricity and heating suppliers have to buy their emission quotas via auction, they transfer the costs to the price of energy at at least the same levels they paid. The rising price of electricity impacts particularly strongly on global competitiveness for the energy-intensive export industry. The Emissions Trading Directive provides the opportunity to compensate for this additional cost via national measures. How and on what terms compensation could be arranged is, however, unresolved. It is only known that the matter is under discussion somewhere in the labyrinth of EU bureaucracy. Energy efficiency is rising The fastest means of reducing emissions is to make energy use more effective. In Finland, industry has already been doing this for decades, because for energy-intensive basic industries energy is a significant expense. In contrast, other communities and consumers are only just starting their own energy-saving initiatives. The Government imposed tough targets in February: efficiency improvements should reduce energy usage for the whole country by 37 TWh by the year The latest agreement made with the Ministry of Employment and the Economy requires a 9 per cent reduction in energy use by SMEs by the year The target for energyintensive companies shall be specified by the end of the year and shall be confirmed next year. The chemical industry uses significant amounts of energy: around 26 TWh per year, of which electricity accounts for more than 6 TWh. The largest export companies that operate in the global marketplace use the great majority of the energy. Energy costs affect, for their part, the volume of exports. The SME sector of the chemical industry succeeded in improving its energy efficiency in the second year of operation of the current agreement, and it was clearly better than for the previous year. However, the target for 2016 still requires a significant improvement from the current level. Energy and climate policy has been a forum for constant change. However, to encourage investment in basic industry it is critical to improve the predictability of policy. At the moment, far too many factors are unresolved. 5/2010 KEMIA 17

18 Innovative technologies will provide a key to the challenges set by the climate change. Scanstockphoto New Technology Is Key to the Climate The EU s current climate-policy measures are based on the target of 20 per cent reduction by the year In the climate meeting held in Copenhagen last year, the Union prepared to tighten its own target to 30 per cent, providing the other countries committed themselves to the same target. However, the meeting was a disappointment for the EU, because mutual agreement was not even reached on the 20-per-cent target. Industry in the union area was also disappointed, because when agreement was not reached, the hopes for a common global standard for industry were wrecked at the same time. In spite of the outcome of the meeting, the EU has prepared plans to tighten the current target. Thus, uncertainty about measures for the current decade continues in this respect too. In the opinion of industry, the focus of the EU s activities must be transferred to development of new technology and new measures where chemistry and the chemical industry have a central role. The key to achieving results is allocation of resources for development activities, not restricting operational opportunities and continually changing targets. Safety Improving The Finnish chemical industry has managed for the first time to achieve a value below the magic number of 10 for the Lost Time Injuries frequency rate, according to the 2010 Responsible Care report. The best companies have already reached the zero level, i.e. they have had no accidents that have led to employees being absent from work. In all, the trend has been positive. The themes of this year s Responsible Care report are, in addition to safety, product footprints, renewable energy sources, and raw materials. The results of the report have been published on the website of the Chemical Industry Federation of Finland Electricity supply to be secured Energy taxes will rise to a level several times greater than the current one from the start of next year. The electricity tax for industry will jump from the 2.6 per MWh level to 7 per MWh. The tax rate required by the EU is 0.5 per MWh, so we will pay 14 times more tax than the Union requires. 18 KEMIA 5/2010

19 COMMENT The Year of Reach Here it is, year It will probably be the most demanding year ever in the history of chemicals control, as Reach, the most ambitious and complex chemical legislation in the world is now being enforced. The first Reach registration phase shall come to an end for phase-in substances on 30 November On the following day, 1 December 2010, the classification and labelling of substances in accordance with CLP regulations shall be put into effect, and on the very same day, the new requirements concerning Safety Data Sheets for substances shall be applied. A month later, 3 January 2011, the European Chemicals Agency (Echa) will need to be notified of any substances placed on the market on or after 1 December All this means an enormous workload for the companies in the EU that manufacture, import, or market chemical substances. It will be very important for all downstream users of chemicals as well as consumers that these companies fulfill all requirements so that they can continue their businesses and produce all chemicals required. We all need them for various purposes. One needs to bear in mind what has been stated in the first article of the Reach regulation: The purpose of this Regulation is to ensure a high level of protection of human health and the environment, including the promotion of alternative methods for assessment of hazards of substances, as well as the free circulation of substances on the internal market while enhancing competitiveness and innovation. These last words are really significant. Hopefully, they will come true so that in the future we shall be able to use various chemical substances to solve our existing energy and environmental problems. After all, chemistry is one of the key disciplines which can offer us solutions for issues such as saving energy, recycling, wastewater treatment, drinking water quality, and air protection. The developers of these innovations will very often be small and medium sized enterprises (SMEs), and they, too, have to meet all the requirements established by Reach and CLP legislation. Therefore, it is of utmost importance that all these new safety requirements regarding chemicals remain in balance with considerations of competitiveness and innovation so that European companies and especially SMEs can maintain their business. Juha Pyötsiä The writer is Assistant Director at the Chemical Industry Federation of Finland. Scanstockphoto The burden saddled on Europe s chemical industry by Reach is the heaviest in the world. Hopefully, European companies will hold and maintain their competitiveness. The current tax revenue for the chemical industry is around 15 million a year. In 2011, this figure will rise to 40 million. In practice, the tax is almost completely accounted for by the ten largest basic-industry companies, which are at the same time the industry s leading exporters. According to the model developed for large companies, this burden, which is regarded as unreasonable, can be reduced. To what extent the situation will be made more equitable depends on the contents of the legislation currently being prepared by the Ministry of Finance. The industry has also been very worried about the fact that the electricity-supply and price issues have not been resolved. The industry feels that the model of diverse energy production must be continued to maintain economic growth and employment and that greater self sufficiency must be sought. In practice, the question is one of replacing the aging production capacity for electricity and building the additional capacity required for the decades ahead. The author is the Director of Environment, Health and Safety at the Chemical Industry Federation of Finland. 5/2010 KEMIA 19

20 Meeting the Reach Deadlines Pragmatism Is the Key Many chemical companies operating in the EU are working hard in Siefs (Substance Information Exchange Forum) in order to submit their joint registration for Reach by 30 November According to several company representatives some of them involved in as many as 1,000 Siefs being pragmatic in everything you do is the key to successful Sief work. The message of these forerunners is to focus on the main issues and, no matter what, submit your registration well in advance of the deadline. Niina Rantti Ms. Genevieve Hilgers, Reach Team Leader in Procter & Gamble, a large consumer goods company with more than 300 branded products, emphasises the importance of pragmatism when working in Siefs. Siefs should progress fast on dossier preparation, ensure that they comply with both the business and the technical completeness check rules and that dossiers should be submitted in advance of the deadline as you may not be successful with the first submission attempt, Hilgers says. Less time should be spent on discussing all the little details of Siefs or consortium agreements. In addition, the Lead Registrant should not neglect to keep Sief members regularly informed of the dossier preparation progress. Hilgers also advises everyone to be supportive in their co-operation. There is no need now for unnecessary criticism. We are all in the same boat so let s work in a constructive way toward our joint goal. Ms. Anouk Carlier-Schwegler is a Reach coordinator at DSM, a large chemical company headquartered in the Netherlands which employs some 22,700 people worldwide. DSM s product portfolio includes nutrition, pharmaceuticals as well as base chemicals and materials. In terms of Reach, DMS is involved in all of its roles: as a manufacturer, importer, and industry user. Carlier-Schwegler has practical ex- perience of working both in very small Siefs with only two representatives as well as large ones with more than 1,000 companies. She emphasises the importance of drawing conclusions in the Siefs. Focusing on the process as a whole and managing the risks is very important. But what really matters now is the companies ability to make decisions together and, at this point, making them fast, says Carlier. We cannot get stuck in detailed discussions as our first priority is to meet the deadlines. The manager of Reach Competence Centre at Kemira s Environment and Safety unit is Ms. Liisa Rapeli-Likitalo. Kemira, a Finnish company focused on the water-intensive chemicals industry, is involved in more than 500 Siefs. The fact is that Reach is a challenge for all of us in this business. Implementing the legislation requires lots of resources and we need to get through the registration process if we want to keep doing business. However, nobody is left alone; you can rely on the Siefs, but the companies in them must work in a systematic way, says Rapeli-Likitalo. She urges everyone in Siefs to work as flexibly and constructively as possible in order to reach results on time. Take the lead when you can Hilgers, Carlier-Schwegler and Rapeli- Likitalo all represent companies with Extra Aid from Echa The deadlines stated in the chemical regulation cannot be changed. However, in exceptional cases with valid, well-defined reasons, extra time can be provided for registration so that incomplete Reach dossiers submitted to Echa by the deadline may be completed later. The exceptional procedure is not an automatic deadline extension system. Companies need to inform Echa of their circumstances in advance and must prove that the delay is caused by reasons beyond the company s control. More information will be provided by Echa in September. The planned exception procedure is in line with the proposal of the Directors Contact Group that is discussing problems related to the implementation of Reach. The details of the procedure are being defined by Echa in cooperation with the European Commission. Leena Laitinen thousands of employees. Being large or among the market leaders usually brings along the responsibility of being elected the Lead Registrant in a Sief. The Lead Registrant is a mandatory role in every Sief, but Reach does not specify the rules for their election. Anouk Carlier-Schwegler says that based on DSM s experience, in order for a Sief to function well, it is very important that it is clear from the beginning who the Lead Registrant is. We have taken the Lead role where ever we can. During this phase of the registration process we are involved in 81 Siefs, of which we are the Lead Registrant in 25. We have felt that if the substance is very important for our business, we have the skills and relevant input to provide, and therefore, we can take lead. 20 KEMIA 5/2010

21 Sand is trickling, and so is time. The Reach deadlines can only be met by joint efforts. Scanstockphoto REACH Out of over 100 substances to be registered in 2010 that Kemira is involved with, the company is a Lead Registrant in 28. According to Liisa Rapeli-Likitalo, in order to make the Sief function and to be able to submit the join registration on time, it is necessary to have a clear leader in the Sief. In substances that are extremely essential for our business, it has been natural for us to be the Lead Registrant in that Sief. However, in some Siefs we have been forced to take the role as no one else has stepped forward and 5/2010 KEMIA 21

22 Your partner in REACH and CLP Supporting your business with the leading know-how in chemical law, chemical safety and toxicology we have been able to allocate additional resources for these substances. The European Chemicals Agency (Echa) has issued a list of substances to be registered by December 2010 and a list of Lead Registrants. These lists have been deemed to be very useful especially among the downstream users. Genevieve Hilgers of Procter & Gamble, a large downstream user, invites all the Lead Registrants to let Echa know about them. I would highly encourage all the Lead Registrants to inform Echa once they have been nominated. The two Echa lists are extremely useful for the downstream users to prioritise their work by contacting only suppliers for which there is a concern with supply continuity, Hilgers says. We also call on all manufacturers and importers to communicate their registration intent to their downstream users or to reassure them on the future supply delivery. This does not necessarily mean that the supplier should contact each and every downstream user as this can be achieved by other means, e.g. via the company website. From an updated list we can easily see whom to contact in case of information requests. Learn from others The purpose of the Siefs is to exchange information on the substance at hand. Therefore, many smaller companies with limited resources can learn a great deal just by being in a Sief. I know that it is easy for me as a representative of a large company to speak about being active and taking the lead, but SMEs are in a completely different place. So my advice is that if you don t have the knowledge or the Scanstockphoto As far as Reach is concerned, all companies are in the same boat pursuing the same goal, experts remind. resources, rely on others in the Siefs, Anouk Carlier-Schwegler says. As other companies in your Sief need to register the same substance and therefore have to fulfil the requirements, you can get the information and pay a fair share of the costs for it. Being passive when you don t have any input is okay. Liisa Rapeli-Likitalo has a similar message. One of the positive sides in the Siefs is that they enforce companies operating in the chemical industry to improve their working methods and also to share information with each other. Exchanging information saves a great deal of your own resources. In addition to other companies, there are always the national helpdesks as well as industry and trade associations that offer their support to the companies in their Reach-related queries. Genevieve Hilgers recommends visiting Echa s website where useful guidelines and lists can be found that can be utilised in the registration process. As Carlier-Schwegler puts it, We can only reach the goal of Reach by helping each other. There is so much to know and so little time left, so please be pragmatic, support each other and find a solution together. Only by doing so, can we all submit our joint registration in time. More information from: 22 KEMIA 5/2010

23 Kansainväliset kumi- ja muovialan ykkösmessut maailmanlaajuisesti k-online.de Finland Russia Ukraine Belarus Kazakhstan Uzbekistan Buy your ticket now +++ at an attractive price +++ Take a native guide in the IPR jungle. in the Online Ticket Shop +++ at Sinulle tärkeimmät messut maailmanlaajuisesti! it s K-time, mikä tarkoittaa: noin näytteilleasettajaa yli 50 maasta esittelee uusimmat tuotteet ja konseptit, perusratkaisuista hightech ratkaisuihin. Ensiluokkainen määrällinen ja laadullinen tarjonta tekee K-messuista maailmanlaajuisesti tärkeimmän bisnes- ja kontaktipinnan käyttäjäteollisuudelle. 19 hallissa ovat Do you want to conquer new territories? We will find the best way to protect your innovations anywhere in the world. Your attorney will guide you safely through the whole process. alan markkinajohtajista lähtien täsmätuotteisiin asti edustettuina kaikki, jotka ratkaisevat alan tulevaisuuden. Ole paikalla kun kumin ja muovin maailmanluokan toimittajat kohtaavat Düsseldorfissa! Edustaja Suomessa: Suomen Messut P.O. Box 981, Helsinki, Finland. INTERFAIR PL Helsinki puh. (09) /2010 KEMIA 23

24 Innovation and Human Resources STILL IN FOCUS The challenging year of 2009 did not bring radical changes in the chemical industry s investments in innovation and human resources. The chemical industry maintains its position as the second largest R&D investor. Human resources planning is still on the agenda even during the recession, as companies prepare for growing numbers of retiring personnel. Scanstockphoto 24 KEMIA 5/2010

25 Riitta Juvonen The chemical industry has maintained its position as the second largest investor in research and development among Finnish industries. Contrary to what might have been expected, the economically challenging year of 2009 did not lead to decreased investments. According to Statistics Finland and a survey by the Confederation of Finnish Industries, the R&D investments of the chemical industry in Finland were 357 million, roughly on the same level as the year before. For 2010, a five percent rise is anticipated. Investments abroad amounted to 20 million, but a slight decrease is expected for this year. In 2009, some 3,200 people worked in the chemical industry s R&D positions in Finland and abroad. The number has been Tekes R&D funding by industry diminishing during the past couple of years, and a ten percent cut is anticipated also for this year. That, concurrent with increasing investments in R&D, relate to strengthening partnerships with universities and research institutions. Potential for a brighter future The major channel for public R&D funding is Tekes, the Finnish Funding Agency for Technology and Innovation. During the last few years the service sector s share of Tekes funding has been growing, and in 2008, it exceeded the funding to industrial sectors. Even though an assiduous user of public R&D funding, the chemical industry has been granted less funding during the last few years. In 2009, the industry s R&D projects were supported by about 20 million in Tekes funds. In addition, chemical companies were involved in projects of other industries, too. Recognising the significance of chemistry and the chemical industry as an innovation enabler for other industries, Tekes did a survey in 2009 on opportunities in the chemical sector. This was needed because the current Finnish innovation policy focuses on demanddriven innovations, and chemistry and the chemical industry tend not to be the focus in this kind of approach. The results of the survey revealed that the chemical sector has the potential for a bright future, especially in forest and environment related sectors, as well as in the development of renewable energy. The industry now looks forward to Tekes actions based on these results. Taking care of human resources Tekes R&D funding in 2009 Total 579 million euros and 2,177 projects In 2009, the economic recession diminished acute recruitment needs. In fact, lay-offs and redundancies were seen in many chemical industry companies. In any case, personnel needs and long-term human resource planning is constantly on the agenda, at least for those companies where a notable share of staff will retire in the near future. In the yearly personnel needs survey by the Confederation of Finnish Industries, no substantial recruitment difficulties were found for chemical companies. The contraction of the forest industry has brought a significant number of skilled process operators to the labour market, some of whom have been recruited by the chemical industry. The number of people with a university degree in chemistry is also fairly well in balance with the needs of the industry, although it has proven to be difficult to find candidates for some expert positions. Chemical companies recruit more people For more information Research, development and innovation: Tekes: The Academy of Finland: Chemical Industry Federation of Finland: 5/2010 KEMIA 25

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