2009-07

PROPOSED NEW ROLES FOR BIOCIDES IN EU

European Biotechnology News: July 2009
The EU Council of Ministers adopted the Directive for the "mini revision" of the biocidal products Directive. The revision extends the deadline for active substance approvals by four years, instead of three, until May 2014.
The proposed regulation would replace the current Directive 98/8/EC concerning the placing of biocidal products on the EU market. The proposed new rules affect manufacturers, users, suppliers and distributors of biocidal products, as well as articles containing biocidal products, that are placed on the EU market.
Under the proposed regulation, the two-step authorization process brought in by the current Directive would remain. This means that active substances will continue to be first tested and approved and consequently included in an EU list (known as the Annex I), followed by subsequent authorization of a product containing the active substance.
The main changes under the proposed regulation are set out below.
Scope: the rules would be extended to cover all articles and materials treated with biocidal products, including textiles and furniture. Under the current regime, if an article is treated in the EU then only authorized biocidal products may be used; however, if the article is treated with a biocidal product outside the EU and then imported, there is no control over the substance it may incorporate. In order to close this "loophole", under the proposed regulation, articles and materials could only be marketed in the EU if they have been treated with biocidal products authorized for that purpose by an EU Member State.
The proposed regulation would also apply to active substances generated in situ (i.e. active substances that are only produced by the addition of other substances when the product is to be used) and to biocidal products used in materials that come into contact with food. New product labeling requirements would also be introduced.
EU wide-authorization : under the current Directive, all biocidal products are authorized at Member State level and companies marketing in more than one Member State are obliged to apply for mutual recognition of authorization from other Member States. In contrast, under the new proposal this system would change for two types of biocidal products - those deemed to be "low-risk" and those that contain one or more new active substances - which would be authorized at EU level. Under this centralized authorization, companies are therefore expected to find it simpler to place these two categories of products on the EU market.
Mutual recognition by EU Member States : all other biocidal products would still be subject to national authorizations issued by Member States. However, there would be further changes to the rules on mutual recognition. For example, it would be possible to submit an application for mutual recognition of a biocidal product which runs in parallel to the first authorization process.
Parallel trade provisions: a parallel trade permit would be introduced whereby authorized biocidal products that have substantially identical composition to products authorized in another Member State could be placed on the market of that other Member State via a simplified administrative procedure. A parallel trade permit would be able to respond to specific demands for imports of biocidal products, although unlike mutual recognition, it is likely to be limited to trade between two Member States, a specified quantity and a particular timeframe.
Data requirements: under the current Directive, the same set of data must be submitted for all biocidal products, not all of which is always necessary. Under the proposed regulation, it would be possible to waive requirements if data is: not scientifically necessary, technically impossible to supply, or not relevant. Furthermore, it would no longer be possible to repeat tests that have already been carried out on vertebrate animals, and information from such tests would have to be shared by companies in exchange for fair compensation.
New role for ECHA : applications for EU-wide authorization for biocidal products that are low risk or contain new active substances would be submitted to the European Chemicals Agency ("ECHA") and to a competent national authority of the applicant's choice. The competent authority would evaluate the application and send its conclusions to ECHA. ECHA would then submit its opinion to the European Commission which would decide whether the authorization should be granted, and if so under what conditions.
Furthermore, in the event of any disputes between Member States or between Member States and applicants over mutual recognition, ECHA would provide the Commission with technical and scientific support. ECHA would also intervene in cases of disagreements about data sharing from vertebrate animal tests.
Companies should note that substances still being evaluated under the current rules (i.e. Directive 98/8/EC and, where relevant, Regulation (EC) 1451/2007) when the new regulation enters into force would complete evaluation under the older rules.
In order for the proposed regulation to become law, the European Parliament ("EP") and the Council (composed of representatives from the 27 EU Member States) have to reach an agreement on the text of the regulation. Discussions between the EP and the Council are expected to take place during the course of 2010. Thus, stakeholders interested in impacting the final text should consider the next few months as the opportune moment for making potential approaches to the appropriate EU decision-makers, in particular Council officials and Members of the EP ("MEPs").
Assuming an agreement is reached between the EP and the Council, the new regulation is scheduled to take effect from January 1, 2014.

AEGIS INTRODUCES ECOFRESH TRADEMARK

Textiles World: July 2009
 ÆGIS introduces a new consumer friendly certification mark: EcoFresh, Powered by the ÆGIS Microbe Shield® technology.
EcoFresh means products stay fresher longer and require fewer launderings. This reduces the amount of detergents released into the environment and helps conserve valuable resources such as water and energy.
As always when using the Aegis technology, products are protected against odor-causing bacteria, mold, mildew and contaminating fungus. Our unique technology is durable without the use of heavy metals and does not leach into the environment. Using the EcoFresh mark proves to your customers that a portion of the product they are buying is environmentally friendly.

JANSSEN PMP AWARDS CUSTOMER OF THE YEAR TO DYRUP

Press Release: July 2009
With this award Janssen PMP shows appreciation towards Dyrup for 25 years of good technical cooperation and loyalty in the area of Wood Preservation in Europe. The award was handed over to Dyrup representatives in Albi (France) in June 2009.
The CUSTOMER OF THE YEAR AWARD was installed by Janssen PMP in 2006 to acknowledge outstanding achievement and excellence in partnership. The candidates are nominated by the area sales managers and then screened by a selection committee designated by Janssen PMP management. The CUSTOMER OF THE YEAR AWARD recipients are chosen for their focus on Janssen PMP products, for realizing a significant achievement, for developing new markets, for redefining existing markets or for bringing innovation to increase market opportunities. The AWARD itself is a sculpture that represents harmony and balance.

ISP ACQUIRES ASSETS OF IONIC SOLUTIONS

Specialty Chemicals: July 2009
As part of ISP’s strategic vision to provide customers with innovative products, we are pleased to announce the acquisition of certain assets of Ionic Solutions Ltd. located in Bradford, West Yorkshire in the United Kingdom.  The acquisition includes substantially all of Ionic Solutions’ specialty chemical technologies and products.
Ionic Solutions was formed in 2000 with a strong commitment to research and development.  Over the past nine years, Ionic Solutions has developed a comprehensive portfolio of performance chemicals that will complement ISP’s existing product offerings.
ISP will commence operating a new business using the acquired assets and will begin supplying its customers with their requirements immediately.
International Specialty Products (ISP) is a leading global supplier of specialty chemicals and performance enhancing products for a wide variety of personal care, pharmaceutical, food, beverage and industrial applications. ISP produces more than 400 specialty chemicals, which it markets and sells worldwide. The company’s headquarters is located in Wayne, New Jersey, USA.

REVIEW OF 100 M EUROPEAN BIOCIDES IN WATER TREATMENT

ICIS: July 2009
The European market for specialty biocides in water treatment was valued at just over €100m in 2008, with nearly 25,000 tonnes consumed across the segments each year. 
Quats (Quaternary ammonium compounds) along with peracetic acid and sodium bromide are the major groups of specialty biocides used within the water treatment industry, accounting for nearly 60% of the market due to significant usage across all applications.
One key challenge in the entire process is the cost of the dossier preparation for BPD, estimated at up to €2m ($2.8m) - which has driven some organizations to join together to create task forces to generate the dossier and support the product. Examples include the EU Anti-Fouling Copper Task Force. Quats are currently being supported through the process by the European QUATS Consortium, while peracetic acid is supported by European trade body CEFIC's Peracetic Acid Registration Group.
However most companies are pursuing registrations independently, and therefore shouldering the burden of the cost. Product groups such as glutaraldehyde and tetrakis hydroxymethyl phosphonium sulfate (THPS) are used in all applications except recreational water. Glutaraldehyde is being supported by BASF and Dow while Rhodia is the only company supporting THPS through the BPD. Although the outcome of the BPD remains uncertain, it is unlikely that these products will be affected.
BIOCIDES PLUS NEW TECHNOLOGIES
A number of alternative technologies are being investigated and invested in. However, to date these technologies are not suitable to completely replace biocides, and in many cases complement the biocide within the water system, for example enzymes and ozone. The advantage of these new technologies is that they are not covered by the BPD.
Enzymes are being explored in both cooling water and pulp and paper applications. In cooling water, enzyme usage can result in cleaner water loops, reducing the need for contaminant control agents and biocides.
In pulp and paper, they have been formulated to improve pulp bleaching, de-inking, and refining, while reducing chemical consumption and refining energy, improving paper quality, including strength, and increasing production rates. At this time, they are not able to completely remove biocide usage from a system. Enzymes are complementary and are being touted as a more environmentally friendly alternative.
Ozone treatment is used within cooling water systems and recreational water treatment applications, as an alternative to conventional biocide treatment. Ozonolysis is effective, as it is a stronger oxidizer than chlorine or bromine, and environmentally friendly. However, the initial outlay in purchasing the ozone generator is significant and this has impinged on uptake of the technology, particularly within recreational water treatment. In cooling water, the effect of anti-corrosives and hardness stabilizers is thought to be strengthened by the use of ozone. However, one key disadvantage within cooling water is that ozone only targets the immediate area in which it is operating.
A technology more recently introduced than those mentioned above is an ammonium-based biocide that is produced by blending an ammonium bromide solution with sodium hypochlorite and water under specific reaction conditions. The biocide created is a mild oxidizer, which can control microbial population and minimize the adverse side effects associated with strong oxidizing biocides. This technology is now gaining share in Europe, and has been found to be an effective and low-cost program. A major attraction of this type of product is that they are not controlled by the BPD and therefore do not have the associated registration expense.
Other alternative technologies include UV exposure, ultrasound and copper or silver ionization. Ultraviolet and ultrasonics treatments have not been proven to be more effective than biocides if used on their own. However, the main advantage is that the process is environmentally friendly and does not involve chemicals. Copper or silver ionization involves passing the water through a chamber where charged copper and silver ions are created to destroy the microorganisms. As many of these alternative technologies have proved to be less effective than biocides if used on their own, they are not expected to significantly affect biocide consumption in the short term.
Despite developments in new technology and the ongoing investment required to support products through the BPD, there has been limited change in the competitive landscape in Europe. In 2005, there were more than 35 companies active in the market, with the leading three players in each water treatment segment accounting for over 40% of market share. Today, this number remains similar.
Two major acquisitions have occurred with BASF acquiring Ciba and Dow acquiring Rohm & Haas. The impact on the specialty biocide industry of both these ventures is yet to be understood. BASF and Dow Chemical are both leading players in Europe, along with Chemtura.
Although not linked with the BPD, but due to weakened sales in the recession, Chemtura filed for Chapter 11 bankruptcy for its US operations. Chemtura is a key player in the European market, with significant sales within water treatment of products including NaBr (sodium bromide), chloroisocyanurates and BCDMH (bromochlorodimethylhydantoin). It also supplies a number of actives to other biocide manufacturers active in the value chain.
In the past few years, corporate ownership may have changed, but the industry incumbents still have similar characteristics with companies such as Solvay, Ecolab, and Rhodia, focused on single, active chemistries, with other organizations, such as Arch Chemicals, Lanxess and Dow supplying a variety of actives across a broad range of industrial markets. These strategies are also not expected to change significantly with the BPD.
3 LEADING SUPPLIERS BY APPLICATION IN 2008
APPLICATION MARKET SHARE FOR TOP 3 3 LEADING SUPPLIERS
Cooling Water 60 % Chemtura, Dead Sea Bromide, BASF
Oil and Gas 62 % BASF, Rhodia, Arch
Recreational Water 41 % Inquide Flix, Chemtura, Lonza
Paper 49 % Solvay, FMC Foret, Evonik
Source: Kline
GROWTH PREDICTED
Although uncertainty due to the BPD and investment in alternative technologies are challenges facing suppliers within the industry, by 2013 consumption of specialty biocides in water treatment applications is expected to exceed 30,000 tonnes in Europe. Average growth of 4.5% is predicted, with recreational water exceeding the average growth of the segment and oilfield and gas applications lagging.
At this time, the full impact of the BPD remains uncertain. However, changes have been observed, with some low-volume, unsupported products no longer being marketed. It is unlikely that the BPD will drive significant consolidation through further acquisitions, but more likely from smaller players simply exiting the market. The most significant impact long term is expected to be reduction in innovation due to the cost of registering new products.
According to Ian Gould, Ashland's biocides manager for Europe, the company has implemented the Biocides Product Directive without too many headaches so far. Ashland is adopting a clever procedure to ease the process: "We can seek authorization for a formula in one country, but then we'll [also] need to seek authorization in all 26 EU countries. This should be easy as there is a principle of mutual recognition, but it may not go that smoothly." Gould says. Ashland intends to start selling all its biocides in all European countries so that it can benefit from the so-called "grandfather" period. This is a two-year period of grace where existing biocides can continue to be marketed without authorization. There is a huge variation in the ease of compliance across Europe in the national systems set up to register products, he adds.