FOCUS: Preparing for REACH is hard work

04 May 2007 09:34  [Source: ICIS news]

By Nigel Davis

LONDON (ICIS news)--Sellers of chemicals in Europe are getting ready for REACH, arming themselves for the launch of the EU’s new chemicals legislation on 1 June.

But the run-up to pre-registration and registration of products under the new rules is going to be tricky.

REACH registration costs are likely to be high – energy giant BP has estimated a cost of $60,000 per product whether made in Europe or sold on the European market.

The pre-registration and registration processes themselves will mean that firms have to talk to their suppliers and to customer’s way down individual product chains.

REACH will link chemicals producers, suppliers and traders and customer industries in ways little seen before.

Sales people will become the front line troops for distributors when it comes to collecting information on chemical applications the Chemical Business Association (CBA) says. It is organising seminars to answer a range of questions about REACH.

The foundations of a supply chain communications process have to be laid, it suggests. The process will become increasingly important as the REACH provisions begin to take effect.

The information flows within REACH will be significant but it seems as though few companies are prepared yet for the impact.

Simplicity is the key to REACH compliance the CBA says but it has complained about the complexities apparently being developed in the various REACH Implementation Projects (RIPs) undertaken by the European Commission and REACH stakeholders.

The RIPS are supposed to inform the various REACH processes. “REACH may turn out to be a nightmare for smaller companies,” the CBA says.

This is where schemes like the CBA’s own ReFaC, the REACH Facilitation Company it has established for Europe’s chemicals supply chain become important.

ReFaC has two simple objectives, chairman Melvyn Whyte says: “To provide its members with cost-effective compliance solutions and, wherever possible, reduce the burden of administration imposed by REACH.”

ReFaC claims to be different because it will use its own staff and industry expertise to help clients. Other schemes such as the UK Chemical Industries Association REACHReady service and CEFIC’s ReachCentrum also draw deep on industry resources but provide links to outside expertise.

ReachCentrum is organising a webinar entitled: ‘REACH – How to be prepared’ on 9 May at 13:30 GMT.

REACHReady launched its REACHMatchmaker service on 2 May. It aims to put companies in contact with suppliers of services as diverse as consortia management, supply chain communications and legal expertise.

The big companies may be able to cope with REACH pre-registration and registration – pre-registration is advised because it gives you more time to register the substances you sell and join others in collecting the data necessary for the registration process.

But the smaller companies might be expected to struggle. They will need expert help.

The chemical industry is expected to make REACH work. But suppliers from Europe and outside remain confused.

The European Chemical Agency expects between 30,000 and 70,000 substances to be registered and anything up to 200,000 registrants. But many think the numbers could be far higher, says Whyte.

REACH will be a major challenge across the sector and will test its resources to the full.

By: Nigel Davis
+44 20 8652 3214

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