Upbeat CIA dinner but costs of Reach revealed
The annual Chemical Industries Association (CIA) dinner took place in London last night with a much more optimistic atmosphere than for the last couple of years. Many of us trade journalists were guest either of the CIA or chemical producers themselves.
With the 30 November deadline approaching, Europe's chemical legislation Reach was a hot topic. I got talking to the CEO of a medium-sized UK-chemical manufacturer who revealed that he was preparing to pay over £100,000 to register just one substance. To him this is worthwhile because there is only one other player in the UK market and he doesn't want a monopoly to develop. He calculated it would take two years to earn back this investment and seemed not at all upset about this level of payment.
A lot of people, particularly the Chinese, have dropped out of the Substance Information Exchange Forum (SIEF) for this product leaving just the two remaining participants to share all the costs.
If this level of investment is required for a single substance the mind boggles at costs for producers with a broad portfolio.
Earlier this week I heard that BASF has spent E700m on administering Reach. If this is true it is a staggering amount. I will try to find out.
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