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#CMI0125: Strategy & Management Substances of Concern: A New Cornerstone for Chemicals Management in the EU The EU Chemicals Strategy for Sustainability (CSS) highlights the shift to a hazard-centric approach in EU chemical regulation, emphasizing 'Substance of Concern' over risk-based measures. The EU Chemicals Strategy for Sustainability (CSS) shed a new light on the concept of ‘Substance of Concern’. So far, risk management measures for chemicals (in products) in the EU was risk-based, mostly preceded by an identification as ‘Substance of Very High Concern’ and/or by the demonstration of a risk to human health or the environment. By contrast, the concept of ‘Substance of Concern’, increasingly present in a variety of horizontal and sectoral EU legislations, is symbolic of a shift to a more hazard-centric approach to chemicals regulation in the EU, with important consequences in various regulatory contexts. Historically, in the EU’s chemicals legislation (notably #REACh), concerns posed by a substance only trigger the adoption of risk management measures to the extent that they reach a certain level of gravity, possibly initiated by their classification in a given hazard class under the CLP Regulation, thereby qualifying a substance as ‘Substance of Very High Concern’ (SVHC). This mechanism serves as a flagging mechanism for the most hazardous substances. Such identification does not trigger any risk management measures (RMM) per se, but merely information requirements across the supply chain. Beyond that, it may attract authorities’ attention towards the eventual adoption of further RMM, such as for example an inclusion in the REACh Authorization List or a restriction. ▶️ A broader understanding of the notion of Substance of Concern can be found in the “sectoral” biocides and plant protection products regulations. Under both regulations, however, qualifying as such merely excludes products containing the substance from fast-track authorization and approval procedures but does not bear regulatory consequences. ▶️ The Chemicals Strategy for Sustainability The concept was revived with the launching of the EU’s CSS in October 2020, which expanded it to include substances in the REACh Candidate List, as well as substances “which hamper recycling for safe and high quality secondary raw materials”. With this evolution, the concept is no longer only safety-related, as consideration is now given to circularity objectives.  The strategy recommended the minimization of the presence of Substances of Concern, and, for the most harmful, a phasing out for non-essential uses. This rationale was subsequently incorporated into a range of legislations adopted in the context of the Green Deal. (...) Get more information from Thomas Delille, Partner, and Marie ESCORNEBOUEU, Associate, Squire Patton Boggs, Brussels, Belgium, in the latest issue of CHEManager International: https://lnkd.in/euK2U6Ua

#CMI0125: Markets & Companies Fostering #Innovation and Collaboration ▶️ Valerie Diele-Braun, CEO of IMCD Group, shares her vision for sustainability, global expansions, and strategic direction in an exclusive CHEManager International interview. Valerie Diele-Braun, CEO of IMCD, a leading global distributor and formulator of specialty chemicals and ingredients, sits down for an exclusive interview with CHEManager International’s Christene A. Smith, PhD and Ralf Kempf. As she marks her first year in this pivotal role, Diele-Braun shares her vision for IMCD, the significant changes and achievements under her leadership, and the company’s strong focus on sustainability. She also discusses IMCD’s recent global expansions and how these efforts align with IMCD’s overall strategic vision. She explores IMCD’s strategic direction, accomplishments, and the challenges that lie ahead, offering a unique perspective on the dynamic trends currently shaping the market. CHEManager International: Now that you are a year into your position as CEO, what have been the most significant changes and achievements under your leadership? Valerie Diele-Braun:  The company has excelled over the past 20 years, and I therefore see my mission as inducing more of an evolution than a revolution. Understanding the company correctly was crucial, and as a former board member, I had some insight already. Fine-tuning areas like sustainability and digital leadership are key to achieving even more excellence. We have established a sustainability program with a portfolio of products based on deep market understanding and innovation, and we are implementing ever more digital tools to enhance efficiency. Additionally, we have introduced a cultural value of continuous improvement to ensure we stay agile and ahead of the game. We continued our M&A track record, acquiring 12 companies last year, and developed numerous business opportunities with both new and existing principals, expanding geographically and adding new principals to our portfolio. CMI: Given your extensive international experience, how do you see the global market for specialty chemicals evolving, and what role do you envision IMCD playing in this landscape? V. Diele-Braun:  We need to be at our best in whatever field we operate because we are living in a VUCA (volatile, uncertain, complex, and ambiguous) world. In this chaotic environment, we must be the partner of choice for our principals and customers, which means being agile and responsive to ongoing changes. Consumers and governments are torn between the dual challenges of the economy and climate change, as seen with recent events like the LA fires and floods in Spain. The chemical industry needs to offer viable solutions, and distributors like IMCD must provide appropriate and cost-effective options to stay competitive. (...) Read the full interview on #CMI online: https://lnkd.in/eXgw6JkV

What’s Next for #Pharma Supply Chains? Explore at PHARMAP 2025 Sudden shifts in demand, supply shortages and global collapse have put immense pressure on #pharmaceutical logistics. To address these challenges, PHARMAP 2025 brings together industry experts to discover AI-driven supply chain optimisation, strategic logistics partnerships and digital solutions that enhance efficiency and resilience in the pharmaceutical supply chain. The pharmaceutical industry has long-faced supply chain vulnerabilities, but the #COVID-19 pandemic exposed and intensified these challenges. Disruptions from accelerated clinical trials, shifting manufacturing priorities, lockdowns and ongoing shortages of raw materials and labor have significantly impacted drug availability. Additional factors, such as rising inflation and geopolitical instability, have further strained global supply chains, highlighting the urgent need for new strategies and technologies to ensure supply chain resilience. According to Global Data, supply chain pressures have risen substantially since 2020, making it clear that reforms are necessary. However, restructuring it within the pharmaceutical sector presents unique complexities, as patient safety and product reliability must remain key focuses. Appealing these problems, the Pharmaceutical Manufacturing and Packaging Congress (PHARMAP) 2025, taking place on 14-15 April in Berlin, features a dedicated session on supply chain innovation. The Congress annually gathers industry leaders to explore solutions to the most pressing issues of the industry and share best practices from top market players.  (...) Find out more about PHARMAP 2025 on #CMI online: https://lnkd.in/eDZ_BmN9

#CMI & #CM0325: Strategy & Management Advantage: Circular Economy Interview with James Hogan and Jan Haemer, Simon-Kucher & Partners #CircularEconomy is not just about sustainability – it’s a strategic advantage. Jan Haemer and James Hogan, Simon-Kucher & Partners, explain why. CHEManager: How are chemical companies responding to new trade conflicts and tariffs? Jan Haemer: Capital exports have always been a proven strategy in the chemical industry to be closer to the market and customers. Local production ensures market access, strengthens customer relationships, and enhances competitiveness as a local supplier. A prime example is BASF in China: The company’s $10 billion investment in the Zhanjiang Verbund site secures not only growth but also protection against trade barriers. Companies with local production are more resilient to tariffs and geopolitical risks. James Hogan:  Moreover, this trend can be observed worldwide – companies invest not just due to regulatory pressure but to secure local value creation and strategic independence. CM: How does raw material availability play into this? J. Haemer:  European chemical companies are often processors rather than raw material producers, making them highly dependent on imports and vulnerable to price fluctuations. Circular economy can help: using more recycled raw materials means lower reliance on global supply chains and greater resilience. J. Hogan:  In the U.S., companies increasingly rely on circular economy to secure their raw material base locally. CM: Can you give examples? J. Hogan:  Aurubis is investing in Georgia in metal #recycling to replace primary raw materials and close local loops. This secures not only resources but also trade #resilience. J. Haemer:  Similarly, Eastman in France is investing €1 billion in chemical recycling of #plastics — located where waste is generated, not where fossil resources are extracted. (...) Read the full interview on #CMI online: https://lnkd.in/eTihNsGQ

#CMI0125: #Chemistry & Life Sciences New Deal to Boost Competitiveness: Revamping Europe’s Industrial Landscape The EU Green Deal has hurt Europe's industry. The Clean Industrial Deal aims to improve this, but a change of mindset at the Commission is needed. The EU industry is on its way to a climate-neutral and more sustainable economy in Europe. The EU Commission intended to support and accelerate this transition with the “European #GreenDeal”. This has not been successful; the Green Deal is not a growth program for Europe. Since its launch in 2019, the EU Green Deal has introduced a flood of #regulations, some of which are poorly coordinated, forcing the European chemical industry to make significant investments in order to comply. Companies are also suffocating under the weight of reporting requirements. The goal of climate neutrality is right and important, but the way to get there is not. The new regulations aim to promote more sustainable and climate-friendly production, but tend to increase the bureaucratic burden considerably, while the protection of health and the environment is often not significantly improved. Furthermore, they come at a time when the industry was already facing a multitude of crises. The financial crisis, the Covid-19 pandemic and geopolitical conflicts such as Russian aggression in #Ukraine have further increased the burden on companies.   ▶️ Green Deal Mainly Flourished in #Bureaucracy With regard to the EU chemical industry, more than 150 regulatory measures have been announced that will change the landscape for the industry. About 900 implementation measures already affected the chemical industry. Other significant measures like the revision of the #REACh regulation have been announced but have not yet been implemented. Centerpiece of the Green Deal activities is the Chemicals Strategy for #Sustainability. Within this strategy, a multitude of parallel regulations has emerged, often incorporating extremely concerning approaches. For instance, the introduction of the essential use concept, a broader generic approach to risk management, and the introduction of the new hazard classes imply a shift away from well-established risk-based systems to blanket substance restrictions based on potential hazards. This is also to be found in the Circular Economy Action Plan, e. g. the #Ecodesign for Sustainable Products Regulation, which includes a one-dimensional view of sustainability and limits the possibilities for further development.(...) Please find the full article from Heike Liewald, Managing Director, and Anne Thüsing, Head of Communications, Eurocolour e. V., Frankfurt am Main, Germany, in the latest issue of CHEManager International #CMI0125. You can find the link to the full article in the comments.

LyondellBasell and Covestro Close Joint Plant LyondellBasell and Covestro have jointly decided to permanently close the propylene oxide/styrene monomer (POSM) production plant (PO11) at the Maasvlakte site in the Netherlands. This decision is due to ongoing pressure on Maasvlakte's profitability resulting from global #overcapacity, a sharp increase in imports from Asia, and high European production costs. The situation is expected to persist, making long-term profitable production unlikely. “While the decision to shut down the PO11-unit is difficult, we must ensure all assets within our portfolio are a long-term strategic fit,” said Aaron Ledet, executive Vice President I&D and Supply Chain at LyondellBasell. “We are prioritizing our core assets which play a key role in our technology differentiation and circularity strategy or provide attractive returns over the cost of capital.” "As part of our Sustainable Future corporate strategy, we’re continuously working to optimally position Covestro to be a reliable partner for our customers and to operate competitively in a challenging market environment," said Hermann-Josef Dörholt, Head of the Performance Materials Business Entity at #Covestro. "Due to global overcapacities, persistently weak demand, and high costs in Europe, we have jointly decided with LyondellBasell to close the PO11 plant. We will support #LyondellBasell in implementing this change as socially responsibly as possible.” (...) Read more on #CMI online: https://lnkd.in/euwkkYK6

Arkema Launches Acrylic Acid Purification Project Arkema has announced the launch of its Carat Project at its Carling site in France. This initiative aims to enhance the capabilities and sustainability of the facility, which specializes in producing acrylic monomers and #superabsorbent polymers. This large-scale industrial project (€130 million investment) involves the construction of a new unit with an innovative acrylic acid purification process, which will improve energy efficiency by 25% and the carbon intensity of operations by 20%, optimize resource and waste management, while increasing the site's production capacity. Acrylic monomers, Arkema's Carling plant specialty, are essential compounds in the design of many everyday objects. They are used to manufacture metal coatings for laptops and tablets, paints, adhesives, super absorbents (for diapers), and flocculation agents for water treatment. (...) Find out more on #CMI online: https://lnkd.in/eAWp4CqV

Our latest #CMI newsletter is out NOW! Innovation and Collaboration Key topics: Fostering Innovation and Collaboration, company news about AbbVie, Adragos Pharma, Axplora, BASF, Corden Pharma - A Full-Service CDMO, IMCD Group, Roche, Syngene International Limited, Toray Industries, Inc., and more. The chemicals industry is undergoing a transformative period, marked by significant challenges and opportunities for all stakeholders along the chemical supply and value chains. Innovation and collaboration are crucial for driving progress and maintaining a competitive edge. In the upcoming edition of CHEManager International, Valerie Diele-Braun, CEO of specialty chemicals distributor IMCD, shares her vision for #innovation, collaboration, and her strategic focus in an exclusive interview. Preview her insights on our newsletter: https://lnkd.in/eXfHmMTa Events like CPHI China & PMEC China 2025, June 24-26 in Shanghai, are perfect for fostering industry connections and driving innovation. This cornerstone event for the APAC region will showcase the latest developments in China's evolving pharma landscape. It's a chance to stay ahead in the competitive pharma market and leverage the dynamic growth happening in China. CHEManager International keeps you up to date on the latest events and developments. Become one of more than 16,000 followers on our LinkedIn channel and see what's happening in the industry on a daily basis. Wishing you an insightful read, Christene A. Smith, PhD A. Smith Editor, CHEManager International

#CMI0125: Strategy & Management Supply Chain and #Logistics Trends in the Chemical Industry: The Course Must Now Be Set for a Successful New Start once the Current Slump Has Been Overcome This interview covers key results of the study ‘Success Factor Supply Chain Management and Logistics in the Chemical Industry 2024’ by Solventure, AIMMS and Miebach. The chemical industry is facing major challenges, with an urgent need for action. However, now is precisely the time to lay the groundwork for a successful recovery once the current downturn has been overcome. The study “Success Factor #SupplyChain Management and Logistics in the Chemical Industry 2024”, conducted by Solventure, Aimms, and Miebach, examines key trends and challenges, the role of digitalization and artificial intelligence (AI), and planning strategies in the European chemical sector. The study begins by asking: What are the current trends and challenges in the chemical industry? This broad question was broken down into specific trends and their perceived significance according to the study participants. Birgit Megges interviewed Klaus-Peter Jung, Partner at Miebach, about the key findings of the study. CHEManager: Mr. Jung, the study reveals that the majority of participants consider rising cost pressures on warehousing and transportation to be the most critical issue, while CO2 neutrality is currently a lower priority. Were you surprised by this result? Klaus-Peter Jung: Not at all. This finding is reflected not only in the predominantly negative public reports about the state of the industry but also in our daily consulting work. In the short term, many companies are primarily focused on cost reduction and cost avoidance, leaving CO2 neutrality as a secondary concern. However, it’s also important to acknowledge that logistics contributes only a small share of CO2 emissions in the chemical industry — far less than in other manufacturing sectors or retail. Moreover, there is a “natural correlation” between reduced transport costs and lower CO2 emissions: shipping is cheaper and more environmentally friendly than air freight, full trucks are more cost-efficient and eco-friendly than half-empty ones, and larger shipments are more economical and sustainable than multiple small ones. CMI:  You explored how well the European chemical industry is prepared to tackle current challenges. What insights did you gain from the responses? K.-P. Jung: Following the boom years of the early 2020s, the industry experienced an abrupt downturn for which, by its own assessment, it was not well prepared. Looking at individual aspects, we found that only about half of the participants consider themselves ‘very well’ or ‘well’ prepared in terms of ‘transparency through enhanced communication and close collaboration’. (...) Read the full interview in the latest issue of CHEManager International: https://lnkd.in/eiMFt9iQ

Battery Technology: Chemistry, Manufacturing and Recycling of Batteries Free Virtual Event: 25-27 March 2025 Battery materials, processing, engineering – Battery technology across the supply chain. About The Event CITplus and CHEManager bring together experts from the European battery industry. We talk about battery production, recycling, and new battery systems. REGISTER HERE! https://lnkd.in/eztbBjh6