Looking ahead...Obama and the chemical industry

Too early to predict anything for President Barack Obama will be challenged with greater issues of economics and war.

"Obama And Science"

New Administration will bring major changes for science policy and the chemical sector

by

David Hanson, Glenn Hess, Jeff Johnson, and Susan Morrissey

November 10th, 2008

Chemical & Engineering News

PRESIDENT-ELECT BARACK H. OBAMA, when he takes office on Jan. 20, 2009, will bring changes for science and technology policy, as well as for regulation affecting the chemical sector, according to observers. The president-elect's transition teams began work on key issues and appointments immediately after the historic Nov. 4 elections.

To help get bills and appointments passed quickly, Obama can look to the Democratic majorities in both the Senate, which picked up at least six seats in the elections for a total of 57, and the House of Representatives, which picked up at least 19 seats for a total of 254.

Although the next president's choices for key federal posts—including his science adviser and the heads of NIH, EPA, and the Department of Energy—have yet to be named, his positions on scientific issues during the campaign make it clear that the chemical sector can expect to see change, ranging from potentially more money for basic research to revisions of environmental regulations.

Obama has stated that government funding for basic research is too low and that he will double budgets for basic research over the next decade. He has pledged to end the ban on federal funding of research on embryonic stem cell lines created after Aug. 9, 2001, and to ensure that such research is conducted ethically and with rigorous oversight.

Obama also has committed to better use of science advice in government. He has said he will appoint individuals with unquestioned reputations for integrity at senior science and technology management positions. He promises to strengthen the role of the President's Council of Advisors on Science & Technology and to appoint a chief technology officer, a new post, to coordinate government infrastructure, policies, and services.

Another focus of the Obama Administration will be energy. During his campaign, Obama pitched a plan to rebuild the economy through $15 billion in annual government spending on renewable energy that will create 5 million energy-related jobs while cutting carbon dioxide emissions. Half-a-dozen local and national environmental organizations pledged at a post-election-day briefing to push Obama to follow through with his plan.

The environmental groups said they see no contradiction in government funding of new non-CO2-emitting power sources in the midst of a financial crisis. In fact, they argued, a big part of the solution to the financial crisis is more green jobs—in home weatherizing, manufacturing and installing wind turbines and solar panels, rebuilding the electric grid, and new green building construction.

The environmental groups also noted that they expect changes to regulations—which may impact the chemical industry—to take place quickly. Specifically, they expect the Obama Administration to swiftly reverse two Bush Administration decisions that prohibit California from regulating CO2 tailpipe emissions and EPA from regulating CO2 as a pollutant under the Clean Air Act.

The chemical industry is bracing itself for the Obama transition. The election results "will create historic challenges for our industry's priorities, but they will also offer some opportunities," says Bill Allmond, director of government relations at the Synthetic Organic Chemical Manufacturers Association. "It is clear that a majority of Americans have chosen the Democratic Party to lead the country in a different direction," he remarks. "With control of the White House and solid majorities in Congress, Democrats will wield significant authority but also have an enormous responsibility."

Rohm and Haas...National Historical Chemical Landmark

"The ACS established the chemical landmarks program fifteen years ago to acknowledge chemists' roles in expanding frontiers of knowledge, advancing medicine and industry, and creating products ranging from aspirin to zippers."

I was not aware of such a program.

"Rohm and Haas Chemistry Declared National Historic Chemical Landmark by American Chemical Society"

Eco-Friendly Water-Based Acrylic Emulsion Technology Designated with Landmark Status

September 4th, 2008

MarketWatch

The development of water-based acrylic emulsion technology -- found in everything from house paints to adhesives, roof coatings, highway line markings and home insulation -- by Rohm and Haas Company has been designated a National Historic Chemical Landmark by the American Chemical Society (ACS). The landmark status will be conferred by the world's largest scientific society during ceremonies in Philadelphia on September 15th.

The ACS established the chemical landmarks program fifteen years ago to acknowledge chemists' roles in expanding frontiers of knowledge, advancing medicine and industry, and creating products ranging from aspirin to zippers. Rohm and Haas's acrylic emulsion technology joins such esteemed company as flame-retardant cotton, Bakelite plastics, the introduction of nylon, the creation of Scotch(R) transparent tape, and Tide(R), the first heavy-duty synthetic laundry detergent.

"It is quite an honor to be recognized as the key developer of acrylic emulsion technology by such an esteemed organization as the ACS," said Raj L. Gupta, chairman and CEO, Rohm and Haas Company. "The pivotal role Rohm and Haas has played reflects the inventiveness and leadership of both our customers and the thousands of employees whose work has transformed multiple industries -- all the while eliminating the air pollution caused by the technologies our water-based chemistry replaced. The good news is that there is tremendous life yet for acrylic emulsion technology. We continue to find new markets and geographies for our chemistry -- breaking barriers in industrial and building applications that were once thought impossible. The best may be yet to come for acrylic emulsion technology."

Thomas H. Lane, Ph.D., ACS president-elect, will present a commemorative plaque for the landmark designation to Rohm and Haas on September 15th.

"The ACS has recognized only 62 chemical landmarks since the inception of the program in 1993. This makes the award to Rohm and Haas a mark of distinction for contributions that reach far beyond the boundaries of scientific practitioners, touching many lives over many decades," said Lane, who is director, Global Science and Technology Outreach and Senior Research Scientist, Dow Corning Corporation.

"Rohm and Haas is dedicated to developing technologies that are not only integral to how we live today, but that are also environmentally advanced," said Pierre R. Brondeau, president and chief operating officer, Rohm and Haas. "This prestigious honor validates what the company has strived for since its inception nearly 100 years ago. We are committed to continuing to take this innovation and extend its applications even further into the future."

In recent years, Rohm and Haas has been successful in bringing environmentally advanced technology to uses in industrial coatings, where applying high-performance water-based technology on metal surfaces was once thought impossible. In addition, the technology has proven beneficial to rapidly developing economies such as China, Russia and Eastern Europe where the environmental advantages of acrylic emulsion technology are particularly attractive in helping reduce pollution.

For the past 55 years, acrylic technology has revolutionized the $42 billion global paint market and completely changed the way we paint our homes. The technology helps keep roofs cool and led to the development of water-based adhesives for packaging and automotive uses. The technology is so pervasive that many U.S. roadways and runways have been marked with acrylic traffic paint technology -- including the runway on which the Space Shuttle lands in Florida.

Pioneered by Rohm and Haas, water-based acrylic technology for the paint market has taken 20 million tons of volatile organic compounds (VOCs) out of the air since 1953 based on studies conducted by the company.This is the equivalent of six pounds of fewer pollutants in the air for every man, woman and child alive in the world as of August 1, 2008.

In addition to being better for the environment, acrylic paint is resistant to aging and weathering, and performs exceptionally well. Rohm and Haas constantly subjects paint formulations to various weather conditions and climates on more than 42,300 test panels in 14 exposure sites around the world, including China, Brazil, Australia and Sweden. Today, acrylic technology is also being used to replace harsher alternatives, such as formaldehyde in building materials, and asphaltic materials used to dampen sound vibration in automobiles.

About Rohm and Haas Company

Leading the way since 1909, Rohm and Haas is a global pioneer in the creation and development of innovative technologies and solutions for the specialty materials industry. The company's technologies are found in a wide range of industries including: Building and Construction, Electronics and Electronic Devices, Household Goods and Personal Care, Packaging and Paper, Transportation, Pharmaceutical and Medical, Water, Food and Food Related, and Industrial Process. Innovative Rohm and Haas technologies and solutions help to improve life every day, around the world. Based in Philadelphia, PA, the company generated annual sales of approximately $8.9 billion in 2007.

About National Historic Chemical Landmarks

The American Chemical Society established the National Historic Chemical Landmarks program in 1992 to recognize seminal historic events in chemistry and to increase public awareness of the contributions of chemistry to society. Designations through the prestigious program have included the invention of Bakelite, the discovery of penicillin and streptomycin, the development of Tide laundry detergent, and the work of historical figures, including Joseph Priestley, Antoine Lavoisier, and George Washington Carver, among others.

The American Chemical Society -- the world's largest scientific society -- is a nonprofit organization chartered by the U.S. Congress and a global leader in providing access to chemistry related research through its multiple databases, peer-reviewed journals and scientific conferences. Its main offices are in Washington, D.C., and Columbus, Ohio.


National Historical Chemical Landmarks

ACS National Historical Chemical Landmarks

Rohm and Haas

Phthalates or Norman Bates?

Be afraid--VERY AFRAID...not of Norman Bates but of shower curtains made from "phthalates". The American Chemistry Council has announced that such items are harmful...a reversal of an earlier position. Is this micromanagement gone too far. After all, what is the time duration of humans with a shower curtain?

"American Chemistry Council's alert on phthalates"

by

Tami Abdollah

July 11th, 2008

Los Angeles Times

Remember that story we wrote about a month ago about the "new shower curtain smell"?

Vinyl shower curtains sold at major retailers across the country emit toxic chemicals that have been linked to serious health problems, according to a report released Thursday by a national environmental organization...

The study found that PVC shower curtains contained high concentrations of phthalates, which have been linked to reproductive effects, and varying concentrations of organotins, which are compounds based on tin and hydrocarbons. One of the curtains tested released measurable quantities of as many as 108 volatile organic compounds into the air, some of which persisted for nearly a month.

Well, back then the American Chemistry Council, a trade organization representing the chemical industry, issued a statement assuring the public that there was "no reliable evidence" that phthalates were harmful, linked to serious health problems, or even tied to the new smell.

This week, the council came out with a media alert about the phthalates, which they said are "commonly used in a wide variety of vinyl products to make them flexible and durable." The alert was "in response to inaccurate statements about phthalates that have been perpetuated in the news cycle in recent months." It also provided a list of plastic products in the U.S. that are "typically not made of vinyl (and thus are not made with phthalates)."

These include food packaging, baby bottles and baby bottle nipples, plastic water bottles, plastic food containers, and polyethylene terephthalate or PET (despite the name), according to the release. Plastic food wrap is apparently usually softened with plasticizers that are not phthalate esters, according to the group.

Furthermore, will there be a warning regarding that "new car smell".

New Car Smell-Wikipedia

Dow Chemical's greatest acquisition--ever!

An update to the post regarding a near 50% increase in chemicals by the chemical industry...Dow Chemical will acquire Rohm & Haas to the tune of $15, 300, 000.00.

Chemical industry raises prices

"Dow Chemical Buying a Rival for $15.3 Billion"

by

Abha Bhattarai

July 11th, 2008

The New York Times

Dow Chemical said Thursday that it had agreed to buy Rohm & Haas, a specialty chemical maker, for about $15.3 billion in cash.

The deal, the biggest in Dow's 101-year history, is being financed with equity investments of $3 billion by Berkshire Hathaway, Warren E. Buffett's huge holding company, and $1 billion by the Kuwait Investment Authority.

The deal, expected to close by early 2009, will create one of the nation's largest specialty chemical companies at a time when the industry is floundering and commodity prices are at record highs.

Dow said it would pay $78 for each share of Rohm & Haas, a 74 percent premium on the company's closing price of $44.83 a share on Wednesday.

Dow, which is based in Midland, Mich., will absorb $3.5 billion of Rohm & Haas debt.

"There are many jewels out there, and this is one of them," Andrew N. Liveris, chairman and chief executive of Dow, said in a conference call. "The bottom line is, this is a powerful new Dow."

But analysts said they were worried that Dow may have unrealistic growth expectations.

"It's going to be a challenging environment for Dow," said Frank Mitsch, an analyst at BB&T Capital Markets, which downgraded its rating of Dow shares to hold from buy on Thursday. "It's a heck of a premium, especially at a time when industry fundamentals are suffering."

Rohm & Haas will continue to do business under its own name and will maintain its headquarters in Philadelphia. Last year, Rohm & Haas reported revenue of $8.9 billion.

Its products include electronics technologies, coatings, and packaging and building materials.

"I have relentlessly talked to our employees, customers and stockholders about the imperative to seek opportunities for transformative change," said Raj L. Gupta, the chairman and chief executive of Rohm & Haas. "In its 100-year history, Rohm & Haas has constantly reinvented itself, and this agreement offers outstanding potential to do the same yet again."

The deal, unanimously approved by the boards of both companies, must be approved by Rohm & Haas shareholders.

Shares of Rohm & Haas rose 65 percent in midday trading, to $73.99, while shares of Dow were down as much as 6.5 percent.

Chemical industry raises prices

This two fold increase of 45% in two months through out the chemical industry will have a huge trickle down effect on every citizen on the globe. We are not privy to the ledgers of these companies but one wonders if this is an ethical and justifiable decision given the current world conditions despite the rise of raw products and energy. Would it be prudent to lower profit margins and hold the near 50% increase. Dollar General stores will disappear or be renamed Two Dollar General.

"Dow And Others Raise Prices, Again"

Chemical firms plan higher prices and cutbacks to offset costs

by

Ann Thayer

June 30th, 2008

Chemical & Engineering News

DOW CHEMICAL will raise prices by up to 25% on July 1, after already increasing them by as much as 20% on June 1. Like other chemical companies, Dow is trying hard to offset economic slowdowns in the U.S. and Europe and rising costs for both energy and raw materials.

Dow is going a step further, however, and is also idling or decreasing production at some plants. It has already reduced its worldwide ethylene oxide production by 25%, its North American acrylic acid production by 30%, and emulsion polymer capacity in North America and Europe by up to 25%.

Added to these will be 40% production cuts in styrene, 15% in polystyrene, and 20% in Styrofoam insulation, all in Europe. Dow's automotive unit will also trim costs at facilities and cut jobs.

Dow CEO Andrew N. Liveris calls the measures "extremely unwelcome but entirely unavoidable. For the first half of 2008, our feedstock and energy costs are up more than 40% compared with the same six months of last year."

Although the June 1 price increases helped, they have not been enough to fully cover the ongoing rise in costs, Liveris says. Dow and Rohm and Haas were two of just a handful of U.S. chemical makers that reported declines in first-quarter earnings. Earlier this month, Rohm and Haas said it would cut more than 900 jobs and shutter capacity, primarily in North America.

Several other producers, including BASF and Bayer MaterialScience, have also announced wide-ranging price increases for chemicals going into automotive, construction, and consumer products. International Specialty Products is increasing global prices by up to 20% in several areas on top of the 5–10% increases it imposed in late May. And Air Products says it will update surcharges on all of its liquid and bulk industrial gas products, effective July 1.

Whether these moves are enough to help companies even tread water is uncertain. Every $1.00 increase in the price of a barrel of oil costs the industry $660 million, points out T. Kevin Swift, chief economist at the American Chemistry Council trade association. And looking at producer price indexes through May, he concludes that "the feedstock component has gone up faster than the overall price for chemical products."