2008-05

DOW BIOCIDES TO INCREASE PRICES OF ANTIMICROBIALS AND PRESERVATIVES

Chemical Week: April 2008
Dow Chemical’s Dow Biocides says it will boost global list and off-list prices of select antimicrobials and preservatives 5%-10%, effective May 19 or as contracts allow.

REGULATIONS IN ASEAN COUNTRIES

Cosmetics & Toiletries: April 2008
The Association of Southeast Asian Nations (ASEAN) has agreed to harmonize its cosmetic regulatory scheme. This decision went into effect in January 2008. The 10 nations that are part of the ASEAN group include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
The harmonization into a single Cosmetic Directive has the benefits of enhanced cooperation between the countries, eliminating trade restrictions, and ensuring safety, quality and claimed benefits for all products. This scheme was agreed upon in 2003 and planned to take effect in 2008. The agreement consists of seven articles, two schedules and seven lists.
Article 1 states the objectives of ensuring safety, quality and claims, and was established to eliminate trade restrictions of cosmetics through harmonization of technical requirements and mutual recognition of registration and approvals. Article 2 states that the members will adopt these regulations by Jan. 1, 2008, and Article 3 lists the technical documents required for cosmetics. Article 4 states that members should strengthen and enhance cooperation in areas not already covered, and Article 5 adds that any differences should be resolved by negotiation between members. Article 6 establishes an ASEAN Cosmetic Committee (ACC) consisting of one representative of the cosmetic regulatory authority for each member state. And finally, Article 7 lists the final provisions regarding how the harmonised regulations of cosmetics will be approved.
Schedule A is divides into five articles for the cosmetic product registration approvals. Article 1 states that each member state will recognise registrations from other states, resulting in a product that need be registered only once. Article 2 adds that only registered cosmetics can be marketed in other states. Under Article 3, a notification letter informing the other states of information found in Appendix IV and a certified copy of the Certificate of Registration are required. In article 4, member states are encouraged to participate in the procedure described in Article 3. Article 4 states that two or more member states can proceed even if other states are not ready. Article 5, states that any member state may withdraw from or choose not to be part of the ASEAN cosmetics regulations.
Schedule B outlines the ASEAN Cosmetic Directive that consists of 12 Articles. Article 1- General Provisions: Member states will take all measures to ensure that only cosmetics that comply with the rules are allowed on the market. Article 2- Definition and Scope of a Cosmetic Product: This article includes that ASEAN definition of a cosmetic. Article 3- Safety Requirements: Cosmetics must not cause damage to human health under normal conditions of use. Article 4- Ingredient Listings: This article includes details on the list of approved ingredients and prohibited substances. Article 5- ASEAN Handbook of Cosmetic Ingredients: In addition to article 4, member states may allow the use, within their country, of substances for up to three years providing they conduct an official investigation on the cosmetics made with the substance, and that the product bears a distinctive indication that will define its authorization. Article 6- labelling: Labels should include the product name and function, a full ingredient listing, contents, a manufacturing or expiration date, the name and address of the company responsible for placing it on the market, instructions for use, the country of manufacture, a batch or lot number, and special precautions. Article 7- Product claims: All product claims must comply with the ASEAN Cosmetic Claims Guidelines. Article 8- Product information: at the address indicated on the product label, the following information must be accessible to the authorities: qualitative and quantitative composition of the product, name and code, the fragrance in the product, identity of the supplier of the perfume, specifications of raw material and finished product, method of manufacture and indication of compliance with GMP’s, safety assessments of the product, and existing data on undesirable effects. Article 9- method of Analysis: Methods used during manufacturing to confirm ingredient certificates of analysis and the criteria used to establish microbiological control of cosmetics and the chemical purity of ingredients must be available to the authorise. Article 10- Institutional Arrangements: The ACC shall review and monitor the implantation of the ASEAN Cosmetic Directive. Article 11- Special Class: member sates may provisionally prohibit a cosmetic product if there is a substantiated justification. Article 12- Implementation: Member sates must change their local laws to comply with the newly established regulations and send copies to the other states and the ASEAN Secretatist.

ISSA RETAINS DC LEGISLATIVE AND REGULATORY SERVICES AS INDUSTRY ADVOCATE

Cleaning & Maintenance Management:  March 2008
ISSA has retained the firm of DC Legislative and Regulatory Services to represent the interests of ISSA members on Capitol Hill and before federal agencies on issues of critical importance to the cleaning industry at large.
“The diversity of ISSA’s membership requires representation that is deep and well-versed on a broad array of issues,” according to Bill Balek, ISSA Director of Legislative Affairs. “That was the primary driver behind ISSA’s decision to select DC Legislative and Regulatory Services as its principal advocate on behalf of the association’s membership before the executive and legislative branches of federal government.”
A full-service government relations firm based in our nation’s capital, DC Legislative & Regulatory Services (DCLRS) specializes in environmental, antimicrobial pesticide registration, immigration, and small business and corporate issues.
DCLRS is unique among consulting firms because it advocates before both the executive and legislative branches. As a consequence, they have established broad-based, bipartisan relationships with members of Congress and their staff members, as well as regulatory officials in federal agencies. In addition, the firm's staff members bring several decades of combined legislative and regulatory experience that will well serve the needs of ISSA members.
DCLRS’ first task on behalf of ISSA and its membership was to engage the U.S. EPA Office of Pesticide Programs and urge the agency to allow suppliers of disinfectants and sanitizers to rely on third-party endorsements in communicating the fact that their product possesses a preferred environmental and safety and health profile.
If EPA approves of such a policy, manufacturers and distributors would be free to advertise the fact that their disinfectants and sanitizers were certified or recognized by the likes of Green Seal, the U.S. EPA Design for the Environment, or Environmental Choice. EPA’s current policy precludes such claims being made in reference to EPA-registered pesticides, including antimicrobial products such as disinfectants and sanitizers.

ARCH CHEMICALS ANNOUNCES SALES FOR FIRST QUARTER OF 2008

Company press release: May 2008
ARCH CHEMICALS announced sales for the first quarter of 2008 of $347.1 million, a nine percent increase, compared to $317.4 million reported in 2007.  Segment operating income was $12.2 million in 2008 compared to $26.9 million in 2007.
 “We are pleased with our first quarter results, which were driven principally by our industrial biocides and water products businesses, where we benefited both from profitable growth and from ongoing margin-improvement plans,” said Arch Chemicals’ Chairman, President and CEO Michael E. Campbell.  “Wood protection earnings met our expectations as the positive contribution from the acquisition of the Company’s Australian joint venture offset lower demand due to continued weakness in the U.S. housing and construction markets.
 The following compares segment sales and operating income (loss) for the first quarters of 2008 and 2007.
Treatment Products is the largest division and reported sales of $293.6 million and operating income of $21.6 million compared with sales of $263.6 million and operating income of $20.0 million in 2007. (Treatment products can be broken into Water at $97.8 millon, Wood at $115.4 million and biocides at $80.4 million).


HTH WATER PRODUCTS
HTH water products reported sales of $97.8 million and operating income of $6.0 million compared to sales of $95.6 million and operating income of $4.5 million for 2007. Sales increased $2.2 million, or approximately two percent, due to improved pricing in the South African market and favorable product mix in North America.   Favorable foreign exchange was offset by lower volumes, primarily in the European market, as a result of shedding marginal business.
Operating income improved $1.5 million as a result of higher sales and lower raw material costs.  Higher selling expenses to support sales growth were offset by the absence of severance costs related to the reorganization of the European operations included in the 2007 operating results.


PERSONAL CARE AND INDUSTRIAL BIOCIDES
Personal care and industrial biocides reported sales of $80.4 million and operating income of $15.9 million compared to sales and operating income of $76.9 million and $14.2 million, respectively, in 2007. Sales increased $3.5 million, or approximately five percent, principally due to higher volumes, resulting from increased demand for industrial biocides used in building products and marine antifouling paints.  Additionally, favorable foreign exchange more than offset lower pricing due to competitive pressures in worldwide markets, particularly in building products.
Operating income increased $1.7 million, primarily due to the improved sales volumes and the benefit from the Company’s profit improvement plans.


WOOD PROTECTION AND INDUSTRIAL COATINGS
Wood protection and industrial coatings reported sales of $115.4 million and an operating loss of $0.3 million compared to sales and operating income of $91.1 million and $1.3 million, respectively, in 2007.
Sales increased $24.3 million, or approximately 27 percent, primarily due to the acquisition ($17.0 million or approximately 19 percent).   Excluding the acquisition, sales increased by $7.3 million or approximately eight percent, due to favorable foreign exchange.  Higher volumes for the industrial coatings business as a result of increased demand in the Eastern European market were offset by lower volumes in the wood protection business due to the slowdown in the U.S. construction market that began impacting the business in the second quarter of 2007.
Operating results were $1.6 million lower than the prior year as the positive contribution of the acquisition was more than offset by higher raw material costs for both businesses.
Performance Products reported sales of $53.5 million and an operating loss of $0.3 million compared with sales and operating income of $53.8 million and $15.1 million, respectively, in 2007.   Included in the 2007 operating results was a gain of $12.8 million related to the completion of a contract with the U.S. Government.  Excluding the gain, 2007 operating income was $2.3 million.
Performance urethanes sales were comparable to the prior year as improved pricing for polyol and glycol products was offset by lower demand in the polyol and glycol markets due to competitive pressures and the slowing U.S. economy.  Operating results decreased $2.3 million due to higher raw material costs, principally propylene, driven by record crude oil prices.
Hydrazine sales were comparable to the first quarter of 2007.   The increased demand for hydrazine hydrates offset the lower pricing for Ultra Pure™ hydrazine.  Operating income, excluding the 2007 gain on the completion of the government contract, was also comparable to prior year.
The improvement in Treatment Products, principally driven by the Company’s HTH water products business and, to a lesser extent, the industrial biocides business, will be offset by lower operating results for Performance Products due to higher raw material costs.
For full year 2008, sales are expected to increase by approximately six to eight percent; the increase from previous guidance is due to the impact of favorable foreign exchange.  

MATERIA, CARGILL IN RENEWABLES ALLIANCE

Speciality Chemicals Magazine: April 2008
Material, the California Institute of Technology spin-off that commercialises olefin metathesis catalyst technology has joined with food and agriculture giant Cargill to form and finance a new firm to promote technology they have jointly developed.
Elevance Renewable Sciences, which has received over €25 million in venture capital from TPG Star, TPG Biotechnology Partners and others, will apply Materia technology to cheap renewable oils, such as soy, canola and corn, for applications in speciality chemicals. It expects to generate over €600 million in sales by 2016.
Elevance already produces commercial-grade waxes, some of which are sold world-wide under the nature-Wax brand. Plans are to expand into functional oils and antimicrobials in the near future, then to lubricants, additives and other chemicals. It will seek partnerships for the development, manufacture and marketing of new products.