July 2009:

Independent, Specialist Support in Chemicals Manufacturing

July 2009

Welcome to the blog. Our aim is to share up-to-date news and views related to chemicals manufacturing. If you would like to add any comments, please submit them via the 'contact us' link on the left hand side of this page.

Record Numbers to Study Chemical Engineering in UK

Figures show that 10,068 applications have been made to study chemical engineering in the UK later this year: a year-on-year increase of almost 18 per cent.

Since 2001, the number of students applying to study chemical engineering at UK universities has doubled and there is currently a record number of students studying the subject.

The blog is interested to know if the this trend the same around the world? Is chemical engineering proving as popular in other countries? The UK Institution of Chemical Engineers (IChemE) has certainly played a major part in promoting Chemical engineering as a career via its Whynotchemeng campaign.

Whatever the reason for the surge, this has to be good news for the chemical industry given concerns over the availability of skills in the future.

Posted by Andy Gibbins 14th July 2009

Recession Hits Jobs In US Chemical Industry

Figures from the US Department of Labor show that job losses in the chemical industry have increased significantly during 2009. Figures show that that the industry employs approximately 41,000 fewer workers than at the same time last year, a decrease of 5%.

Whilst employment numbers in the chemical industry have been falling for several years due to productivity improvements, the recent falls are thought to be largely recession related. Most of the job losses are in production positions.

The blog does not consider these figures to be a surprise. Almost all organisations are having to deal with the effects of recession and cost savings are essential to survival. What is vital, however, is to use effective management of change when making such cuts, otherwise safety,productivity and customer reputation could suffer as a result of poor decisions.

Posted by Andy Gibbins 13th July 2009

Process Safety - You Don't Improve What You Don't Measure

Wise words indeed and this blog agrees 100% with this sentiment. We all know what can happen when process safety is not managed adequately; Texas City, Flixborough, Seveso, Bhopal. These incidents have enormous impacts; for the people killed, hurt or otherwise affected by the incidents and for the organisations involved - in terms of cost, reputation and business continuity.

Yet many organisations that want to improve process safety struggle with defining the right metrics, particularly in the case of leading indicators.

From a number of discussions with experts in this field, it is clear that there are sometimes differing views on exactly what should be measured and there is acceptance that, in some cases, the measures need to be site and process specific. One thing which is universally agreed, however, is that leading indicators are highly valuable to give an early warning that things could go wrong.

For those new to this subject,  guide from Center for Chemical Process Safety, Process Safety - You Don't Improve What You Don't Measure , is an excellent starting point. Click here for link

Posted by Andy Gibbins 12th July 2009

Chemical Industry Has Positive Role in Climate Change

Euractiv.com claims that the chemical industry is essentially 'carbon positive'

"For every unit of greenhouse gases emitted directly and indirectly by the chemical industry, the industry enabled 2-3 units of emission savings via the products and technologies provided to other industries and consumers," states the first-ever report the Carbon Life Cycle Analysis (cLCA) of the chemical industry, based on 2005 figures.

The industry is hoping to use this as a means of negotiating free emission allowances in the next phase of the EU emissions trading scheme, which starts in 2013.

This report was compiled by the International Council of Chemical Associations (ICCA) with the support of the global management consulting firm McKinsey & Company and Germany's Öko-Institut.

The most important emission savings are said to come form building insulation materials, agrochemicals, lighting, plastic packaging, synthetic textiles, automotive plastics, low-temperature detergents, engine efficiency and plastics used in piping. 

The industry needs to be trumpeting this positive news and countering the public perception that the chemical industry is a polluter and contributor to global warming!

Posted by Andy Gibbins 9th July 2009

REACH - The Clock is Ticking

The European Chemicals Agency (ECHA) held a stakeholder day in late May, giving the industry a chance to ask questions and express its concerns regarding the implementation of the REACH legislation. As expected, there was significant concern raised by the participants at the session.

ECHA is so concerned about the industry not meeting the deadline, that it has launched an awareness campaign using the slogan 'The clock is ticking'.

A major difficulty for the industry concerns the management of the Substance Information Exchange Forums (SIEFs). With some SIEFs comprising up to 5000 registrants, it is proving a major headache for the lead registrant to coordinate the SIEF.

However, companies face heavy penalties, including improsonment, for failure to implement on time and there are no signs that this timescale will be softened.

The blog is pleased that ECHA is talking to the industry and is trying to address some of the major concerns, with support for lead registrants, regular webinars and an improved helpdesk but remains concerned that, with little over a year to go, some organisations will fail to meet the deadline, often through no fault of their own.

Posted by Andy Gibbins 7th July 2009

Borouge 3 Contract Awarded to Linde

Borouge (Abu Dhabi Polymers Company) announced on Thursday 2nd June it has awarded a $1.07 billion contract to Germany's Linde Group for building a 1.5 million-tonne-a-year ethane cracker at Al Ruwais in Abu Dhabi.

The Borouge 3 facility will also include polypropylene and polyethylene units, a low density polyethylene unit and a butene unit, as well as the related offsite utilities and marine facilities.

The low cost ethane feed is a major factor for Borouge, whose vision to become a major player in the global plastic industry. Borouge plans to export the bulk of its output - mainly to the Middle East, China and India.

This type of unit is costly but once completed will have major economises of scale as well as low cost feedstock. This will apply further pressure to the less efficient units elsewhere in he world. The blog notes yesterday's comments (below).

Posted by Andy Gibbins 3rd July 2009

Dow Shutting Down US Plants

Dow Chemical has announced the permanent closure of a number of US plants, particularly in the C2 chain. The company announced the closure of a cracker in Hahnville, an EO/EG also in Hahnville and an EDC/VCM plant in Plaquemine.

Dow has indicated previously that it would be looking to make cuts of $1.3BN following the Rohm and Haas acquisition.

The closures help to achieve that aim but also starts to demonstrate the impact of new ethylene and derivates capacity coming on line, particularly in the Middle East. Dow has balanced ints C2 chain as a result of these closures.

As noted previously, this blog believes that more closures will be inevitable, given the need to reduce overcapacity

Posted by Andy Gibbins 2nd July 2009

 

 

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