ICIS Chemical Business | From Our Own Correspondent

BY SPECIAL GUEST CAROL PICCARO, PRESIDENT AND CEO, U.S. CHEMICALS

Golf is one of the perks of my business, and I feel grateful for the opportunity to entertain and be entertained on the "almighty" course. While I've learned much about the game and the people I have played with over the last 20 years, this particular day it was a "golf first."

But going back, I still remember the day a very patient supplier offered to teach me the sport. I felt like I was just admitted to "the club." And I was hooked. I wanted to have all future meetings outside, without desks or tables, phones or Blackberries - just walking down the course, sharing stories.

What luck to be out of the office, enjoying some of the most wonderful settings in the country - and all this for "work!"

Being in the chemical distribution industry, most of my golf rounds are with men. Therefore, I have a wonderful advantage at golf outings, especially when the longest drive competition is not gender-segregated.

In many cases, the women's tee box is a generous 150 yards in front of the men's. You connect, and you may very well be the recipient of a dozen golf balls and winner of the coveted "longest drive" competition. But then at the 19th hole, all the participants hoot and holler that a woman won the honor, which makes for a long walk to receive the prize.

I felt compelled to write this after traveling to Ohio to play golf with a vendor. Once again, I was the sole female golfer. I accepted the invite and agreed that caddies would be a treat.

I appreciate caddies and enjoy their company, as they move the game along, save time ball searching, and help with reading putts, yardage, and providing advice when choosing a golf club. Playing golf is similar to running a company - you need the assistance of a great caddie to shoulder the load.

As we walked up to our first tee, I was blown away to find four young, attractive women as our caddies. Each girl was more pleasant than the next, with a smile from ear to ear. They gladly embraced the work on a hot afternoon.

And for once, I was not in the minority - I had peers, women, and numbers in my favor! The teasing I received for forward tee boxes or a good drive was now met with five sets of eyes staring down the persecutor. It was a wonderful day, and truly the highlight of this noteworthy golf experience.

Photo credits: U.S. Chemicals, Carol Piccaro

Stephen Burns of the ICIS bureau in Houston writes of his recent trip to Colombia:

 

Many cities are known to us only by reputation. Paris has romance, London has pageantry, Rio de Janeiro has nightlife. Medellin has...Pablo Escobar?

 

It is almost 16 years since the violent death of the drug baron who for much of the world still defines that city. Escobar helped shape the image of chaos that Colombia still struggles to shake off.

 

Here's hoping it can, because the country deserves recognition for the progress that has put it back among the leading economies of Latin America.

 

A bad rap is hard to dislodge, though. Both the opportunities I have had to cover conferences in Colombia - Cartagena in 2004, and Medellin in 2009 - came my way because of the greater prudence of others.

 

The organizer of the latest conference acknowledged that the security issue loomed large for Americans in particular. But attendance from across the region was healthy and the choice of location was generally acclaimed as a success.

 

So what is a journalist with only a couple of spare hours to do in Medellin? Guidebooks talk of markets, the old town centre, and Botero statues.

 

But to a reporter, that would be like going to Rome and not seeing the Coliseum.

The hotel doorman translated my destinations to a taxi driver: Escobar's grave, and the scene of his bloody last stand.

 

Bravado evaporated as I was led across a well-kept cemetery, a magnificent showcase for the local flower industry. Did henchmen still watch over him, and watch over his visitors?  

 

Maybe so...I was surprised to find fresh flowers adorning a large, tidy grave. Later I learned that flowers are placed regularly by those who regard Escobar more as Robin Hood than as evil personified.

 

Escobar shares the wide grave - and the December 2, 1993 date on his headstone - with some relatives. It looks more like a little garden than the portal to hell I had envisaged.

 

The area where Escobar made his last stand was nicer than I expected, too, although the house had obviously been empty for a long time. Graffiti on the walls distinguished it from its neighbors.

 

But the grim look on the faces of two men working on the roof where Escobar died was enough to deter my taxi driver from stopping. On to the chubby Botero statues.

 

It is said that reputations come down in the elevator but go up the stairs. Medellin - and Colombia - found itself a long way down in the basement, but it's definitely moving on up. 

 

Video of Medellin, including Escobar's grave and last hideout: 

If an industry, group or person was able to reach the 100-year mark, this would definitely be a cause for celebration.

For synthetic rubber producer LANXESS, 2009 is officially the global rubber year as the company celebrated synthetic rubber's 100th anniversary last month in Cologne, Germany. Synthetic rubber was first developed and patented on September 12, 1909, by German chemical company Bayer. LANXESS was formerly Bayer's chemical and polymer business division, which was spun off in 2005.

During the event, LANXESS showed how man-made materials such as synthetic rubber could continue to thrive and remain indispensable for mankind, despite growing opposition from environmentalists to anything made from petroleum.

I was, however, amused when during the event's question-and-answer (Q&A) session, two European reporters boasted of their publications' more than 100-year-old pedigree in their introductions before proceeding to their questions.

Getting into the competitive spirit of whose publication is the oldest, I eagerly raised my hand. Did I have a burning question for the presenter at that time? No, but I also wanted to state ICIS Chemical Business's 138-year history.

I guess the event moderator sensed my intention and quickly wrapped up the Q&A session. Despite the missed opportunity, it dawned on me how LANXESS employees felt being part of a rich 100-year history.

ICIS Chemical Business's history goes back to 1881, when the former Oil, Paint and Drug (OPD) Reporter, based in downtown New York, began its operations. OPD was famous in the industry for its weekly lowdown on actual commercial conditions of the growing oil, paint, drug and chemical markets.

OPD, which then became Chemical Market Reporter, and is now part of ICIS Chemical Business, was able to survive more than a century of volatility within the chemical and publishing industries. Even now, as many print publications are in dire straits, ICIS Chemical Business will continue to evolve and become a better provider of chemical information, insight and analysis as we celebrate our 138th anniversary on October 18.

It is truly a pleasure to be a part of this historic publication and we look forward to our 200th anniversary!

See other old OPD/CMR photos on ICB's new facebook page!

By: Clay Boswell

The credit crisis has put a spotlight on the flow of money from the US to China - and back, through the purchase of US Treasury bonds. The relationship seems to defy logic, as if one country were paying another to buy its products.

I'm reminded of a science project I did in the sixth grade, a modified balsa wood airplane. Like other such craft, it had a propeller at the front. Typically, the propeller would be powered by a wound rubber band, to which it was directly attached. (Get your own here!) My innovation was to eliminate the rubber band and connect the propeller, by means of a crude gear, to a paddle wheel further back. No child prodigy, I imagined that air flowing past the airplane would spin the paddle wheel, which would turn the propeller, which would pull the airplane through the air, which would spin the paddle wheel, which would.... You get the idea.

Mrs. Birch, the school principal, complimented my imagination, sweet lady. "But you know, of course, that perpetual motion is impossible," she added. Yes, I nodded cautiously, wondering what "perpetual motion" meant.

I'm no longer a stranger to the laws of thermodynamics. Indeed, I often see analogous relationships in unlikely places - such as America's trade deficit and debtor status. The economy isn't a closed system, however, and new wealth is being created all the time, sometimes even more quickly than it is destroyed. Likewise, the long-term trend in living standards does not suggest entropic decay.

Still, there does seem to be something fundamentally unsustainable going on. The Chinese government has been worried for some time. Last week, a former vice-chairman of the Standing Committee and the current head of China's green energy drive, Cheng Siwei, said Beijing was not pleased that the US Federal Reserve had resorted to buying US treasury bonds, essentially printing money to buy its own debt. "If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard," he was quoted as saying in the UK's Daily Telegraph.

That's pretty much what happened to my airplane: it fell hard. But that's science, right? With the economy, on the other hand - the stakes are a bit higher. And yet, I wonder: Are we like test pilots in a jumbo jet designed by a child?

I was really looking forward to my visit to East Asia. As soon as the invitation for a press trip to Shanghai, China, dropped into my email inbox last year, I was very quick to respond and get down to the local embassy to arrange my visa.

Aside from the obvious networking and news opportunities the trip would provide, I was particularly excited about the prospect of snagging a few bargains in the high-tech stores around the city. With a favorable exchange rate and access to one of the most innovative and advanced electronics markets in the world, I made sure I converted plenty of currency.

Despite major jetlag upon arrival, I had a few hours to kill before my first few meetings, and found myself gesticulating wildly to a passing taxi driver, urging him to take me to the city center. I roamed the streets, taking in the spectacular skyline - the bulbous Pudong Tower, the looming skyscrapers and massive illuminated signage I'd seen so often in the movies.

It wasn't long before I was accosted by a guy at a dodgy-looking stall, pleading with me to take a look at his "quality" goods. Other pushy street vendors made similar offers, which I respectfully declined. I'd heard from a fellow journalist back home about the risks of buying items in some parts of the city; counterfeiting is still rife in China. So I did business only in legitimate stores, the ones that provided receipts and offered a selection of items bearing all the leading brand names.

Sadly, someone I was with was not so lucky. Returning home, the large capacity computer memory stick they'd bought corrupted all their data, their DVDs didn't play properly and their selection of branded clothing barely made it through the laundry in one piece.

These were bought from what appeared to be reputable dealers, but it's still pretty easy to fall foul of unscrupulous vendors in China. Earlier this month, the World Trade Organization (WTO) hoped to address the situation by ruling that China should ease its restrictions on imported goods. The BBC website commented that, "China's current limitations on the import of official US DVDs and other media products has created a large domestic counterfeit industry."

My friend would have probably considered a return visit if the WTO had acted a little sooner.

(Photo credit: d'n'c)

You never really notice the convenience of things until they're gone. Such was the case on my vacation to Ireland in August.

Visiting the Emerald Isle for the very first time, and for a week, my wife and I made the capital city of Dublin our home base as we explored the city and took several day tours.

Making a quick run to Supermacs, the fast-food chain bearing a strikingly close resemblance to McDonald's, I ordered four cheeseburgers, fries, some fried chicken, and a coffee and tea to go.

Just your usual unhealthy fast-food order - but lo and behold, no plastic bags for your takeout!

Ireland first slapped a tax on plastic bags in 2002 and usage dropped 90% within months. There are just no plastic bags to be seen anywhere.

Instead of the plastic bag you're used to getting in my home town of New York, you get a flimsy paper bag. Now that's fine for the food, but not ideal for carrying hot drinks back to the hotel.

And at the "convenience" store, whatever you buy, you haul out with your hands and arms - no bag is offered. Good luck carrying several bottles of water, milk, juice, potato chips, a cup of yogurt and a banana.

If you insist on having a bag, it will cost you 22 euro cents there. Call me cheap, but I was loathe to pay for something I'm used to getting for free.

Sure, there could be benefits to taxing plastic bags - the streets do look clean and same for the countryside. Maybe it's worth a bit of inconvenience, but that's debatable.

I missed the convenience of plastic bags. And don't get me started on the napkin situation. Restaurants were very sparing with the napkins, making a messy eater like me look even worse. At a local Burger King, there was a half-joking sign that said that if you took more than 10 napkins, you were a thief!

In August, Mexico City became the latest major metropolis to ban non-biodegradable plastic bags from the retail sector.

In most of the US, many feel it is our God-given right to get a free plastic bag with our purchase - whatever it is!

But then again, we also thought it was our divine right to drive gas-guzzling SUVs fueled with $1/gal gasoline.

 

Photo credit: Yvonne Chang

Most readers will be aware that since the merger of the US and European/Asian titles in 2007, ICIS Chemical Business has become a global magazine, with teams in New York, London and Singapore. I'm the deputy editor, heading up the European bureau based in the sleepy town of Sutton in Surrey, near London, UK.

Last week I had the opportunity, for the first time, to travel to New York and work with the editorial team out there, headed up by Joe Chang the global editor.

As you can imagine, there was something of a contrast between my usual Monday morning and my first day on the 17th floor of 360 Park Avenue South, New York.

To set the scene, let me first describe an average Monday morning. After hastily swallowing down a piece of toast, I normally rush down to a chilly Crystal Palace railway station to be met by an announcement such as "Southern Railways would like to apologise for the cancellation of this service". After a journey spent staring through the rain-spattered windows at the cheery folk of South London as they board the train, I arrive at the metropolis of Sutton; a small suburban town renowned for its snarling teen mums in gold hoop earrings, pushing prams, cigarettes burning.

Now to New York, where jet lag meant I awoke early on my first morning. The map showed a piece of open space called Madison Square Park near the office so I made my way down there, basking in the early morning sunshine. After buying a coffee and blueberry muffin I noticed some commotion near the park. It was a full outdoor film crew about to begin shooting. Park benches nearby beckoned so I sat down and watched the action. "Quiet please, film rolling", someone shouted, and the action began. I watched as a street scene was played out for a new TV series called White Collar.

A friendly New Yorker sat with me and after he'd finished moaning about the disruption caused by film crews blocking the sidewalk, we got talking about his great city and how clean and safe it was compared to the 1980's when he'd arrived from Guyana.

Madison Square Park became my breakfast venue each morning and I had a fantastic week working with and getting to know the team in New York. It's a shame I didn't get to meet pharma/fine chemicals editor Feliza Mirasol, but here are images of the rest of the team.

 
Clay Boswell, features, pharma outsourcing

 

 

 

 

 

Doris de Guzman, specialties/oils

 

 

 

 

 

 

 

 

 

Ivan Lerner, commodities

   

By John Richardson

I was sharing lunch with a highly de-motivated Singapore-based chemicals industry employee recently and the great British 1970s sitcom, The Good Life, came to mind.

In that sitcom, Tom Good, played by the actor Richard Briers, is meeting "Sir", the boss of the plastics processing company where he works as a draftsman. The company specialises in designing and moulding those little plastic toys you used to get (or might still get - I am not sure) free in your breakfast cereal.

"Sir" puts his arm around Tom, who he has noticed for the first time because he has been introduced by his friend Jerry, played by the late and great Paul Eddington, as "our top designer". Jerry is a monumental crawler and, as a result, is in an executive position.

Anyway, "Sir" says to Tom, or roughly words to this effect: "A new bubble has just come off the top of our think tank and I want you to take charge of this project - plastic hippopotamuses (or was it giraffes? Couldn't find on Google). Are you excited? Do you think you are the man for the job?"

He is speaking in one of those annoyingly enthusiastic voices you may have heard in meetings and wished "if only I could have the presence of mind to fake it that well".

Tom, is of course, supposed to show enthusiasm in order to crawl up the slippery corporate ladder, but instead bursts out laughing, goes home, quits his job, and decides to become self-sufficient by growing all his own food - and keeping livestock - in his suburban back garden.

To return to my lunch with the unhappy chemicals-industry employee, he had been ground down by having to bite his tongue in so many long and dull meetings that when his boss asked for ideas for a new corporate slogan, he replied: "How about 'The Relentless Pursuit of Mediocrity?' "

He lives in a condominium with a window box as a back garden and so growing fruit and vegetables for a new career is not an option.

Anonymous contributions would be gratefully received for comments you would have liked to have made in company meetings, but felt unable to do so. This is your chance to let off some steam.

After testing out the H-racer fuel cell toy car sent by BASF (see ICB 5/11/09, p.7) I got the chance to test out a real fuel cell vehicle on July 14 courtesy of General Motor's Chevy Equinox fuel cell demo car powered by Shell's hydrogen.

Shell, in partnership with GM, opened its second hydrogen refilling station in New York for fuel cell car drivers. There aren't any fuel cell cars out there yet for sale but some are testing demo cars such as GM's Chevy Equinox under the company's Project Driveway program.

GM said there are 30 of the model available for testing in New York and 60 in California. The company has overall 115 for testing across the globe. Since the program's inception in January 2008, these cars burned 900,000 miles in total all producing just water as emissions.

The car has an estimated rate of 39 miles per kilogram so if we do the math, it can actually go to more than 160 miles (even 200 miles GM said) before it needs to be filled up again with hydrogen.

At first glance, the car didn't even looked anything like my vision of a greener bat mobile and instead featured a gray SUV/van-type of automobile that any parent with two kids who'd like to have. It did sport a Fuel Cell logo along with trailing green water molecules that look like vines from a distance.

The shiny fuel cell powerhouse is located under the front hood replacing the odd bits and pieces of greasy motor innards typical of a petroleum-powered car. On the back of the car are four exhaust slots where water mists flow out. GM assured no dripping water here.

I had one of the GM officials to chauffered me around a parking lot so I can check the nuts and bolts inside the car (and to avoid being sued in case I crash it). GM did not disclose the cost of the car but said that they were very expensive to make. The fuel cells were hand-made by the way.

One feature that was very interesting to watch while the car is being driven is the energy display monitor near the dash board which shows power flowing from the fuel cell to the motor and/or battery as well as charging power returning to the battery during regenerative braking. It also showed how much petroleum was saved depending on the car's total mileage.

The car that I rode already had 9,392 miles on its hood and indicated about 417 gallons of petroleum saved.

I generally don't like to drive and it has been 10 years since my last attempt but all in all I was very impressed and was mightily tempted to buy an electric vehicle at that moment - if there's one already available and if it's cheap.

All I ask is to put a nice sounding chime to it when the car starts to avoid a possible crash. It's so darn quiet that I didn't even realized it was already turned on! Oh, and GM did assured me that the three hydrogen tanks located underneath are crashed proof.

We don't want another Hindenburg incident, do we?

For five days each year, a few fields in a quiet corner of the UK's West Country becomes a throbbing city of 180,000 people. The Glastonbury Festival of the Performing Arts is a national institution. Started in 1971 by a farmer, Michael Eavis, who had an interest in music, it has grown to become Europe's biggest festival.

Whilst there this year, I started thinking about the organisation and economics of this event, plus its wider impact on the local area and on demand for chemicals.  

At a "meet the organiser" question and answer event, a rather stoned-looking man stood up and said he thought the festival had become a model for a new way of living. He was referring to the "Green Fields" part of the event where people seeking alternatives to conventional lifestyles.

Eavis didn't seem too keen on that idea, but said the festival had been called "the acceptable face of capitalism" because he donates around £2m each year to charities such as Greenpeace and WaterAid.

The local economy must benefit hugely from the festival. There were several hundred stalls selling everything from food to clothes to the "ShePee", which I'll leave to your imagination. Of the 180,000 people attending, 40,000 are workers: a major boost to the economy.     

The huge number of tents covering the site must also stimulate demand for the UK plastics industry: or more likely, China's plastics industry.

"Green" is certainly a key theme of the event. Woe betide anyone trying to avoid the queues at the toilets by hiding behind a bush or hedge. A team of "green police" (see video) wearing British Bobby hats coloured green patrol the site, blowing their whistles and chasing offenders.

The figures for waste produced are staggering. In 2008 the festival recycled 49% or 863.32 tonnes of its waste. This included 193.98 tonnes of composted organic waste, 400 tonnes of chipped wood, 9.12 tonnes of glass, 54 tonnes of cans and plastic bottles, 41 tonnes of cardboard, 66 tonnes of scrap metal, 11.2 tonnes of clothing, tents, sleeping bags, 0.264 tonnes of batteries, 10 tonnes of dense plastic and 0.25 tonnes plastic sheets.

This year the festival also used a fleet of New Holland tractors, all capable of running on 100% biodiesel refined from used cooking oil sourced in the UK.

This year I saw fantastic performances from Prodigy, Will Young, Tom Jones and Neil Young plus DJs like Pete Tong and Deadmau5. Don't tell any of my cool friends, but I also loved Australian legend Rolf Harris!