chlorine industry review 2006-2007 · transparency: a key element in reputation management online...

Chlorine Industry Review 2006-2007Well-earned reputation rests on renewed sustainability efforts

Contents

Introduction 1 Not too many surprises – good or bad

Sustainability 2 No time now for complacency

Legislative developments 11Goal: Balanced and workable legislation

Information & education 15Transparency: A key element in reputation management

Science 16Effective advocacy depends on sound science

Industry overview 18Robust demand for caustic soda

Chlorine production plants 22

Euro Chlor 24

Membership 26

Full members 27

Cover: Electricity is essential to make chlorine. It cannot be substituted and represents up to 60% of the

variable cost of production. Huge electrical transformers enable economic long-distance transmission of

power for energy-intensive industries. Other photos kindly provided by Akzo Nobel, Ercros and Solvay.

1

1

Introduction

Euro Chlor mem-bers continue toconvert mercuryelectrolysis cellsto alternative technology at asatisfactory rate.

In 2007, membrane capacity will exceedmercury capacity for the first time.

European producers still have 9,600tonnes of mercury used as a catalyst tomake chlorine and caustic soda in 43 electrolysis plants in 14 countries.These account for 43% of regionalcapacity. However, our industry has voluntarily agreed to phase out theremaining such plants by 2020.

Improvements, but...Results of a half-way review of our 2010Sustainability Programme were broadlyas expected. There were continuedimprovements in indicators for energyconsumption, hydrogen usage and losttime injuries for employees, but a disappointing increase in the number of manufacturing accidents involvingcontractors. We have to work harder tomeet expectations.

It was a surprise, however, to have twochlorinated solvents included in the

Priority Hazardous Substances (PHS) listof the Environmental Quality Standards(EQS) Directive. We await the outcome ofmajor representations to EU authorities toreverse this, although other aspects of thisdirective are broadly acceptable.

What of progress towards meeting the chlor-alkali sector’s pressing need for access to electricity – one of ourmajor raw materials – at a fair and predictable price?

Strong advocacy efforts will continue asEU energy policy proposals to combatclimate change develop, aimed at resolving issues in this malfunctioningmarket and challenging the pass-through to customers of the values ofCO2 permits – all of which were issuedfree. Efforts by DG Competition tounbundle producers and distri bution system operators to correct the marketlook unlikely to provide a solution.

The review by DG Environment of theEmissions Trading Scheme is likely tomake for uncomfortable reading. This isbecause there is a perception that partialauctioning of permits is favoured byMember States post 2012, with the carbon market set to be considerablyhigher (above €20 per MT CO2) than

today with full pass-through of costs.While electricity prices have fallen tosome extent in recent months – duemainly to a mild winter and correspond -ing lack of demand on fuel suppliers –the need for lasting competitive pricingstability remains.

Step forwardA key step forward for our industry – anda tribute to Euro Chlor’s advocacy efforts– is the fact that the authorities now arestarting to acknowledge that the industrycannot afford to have global competitive-ness compromised by high electricityprices. It is now becoming understoodamong regulators that the chlor-alkalisector is a particular cause for concernbecause electricity costs represent morethan 20% of sales value.

We should now expect real action fromregulators.

Alistair J SteelExecutive Director31 July 2007

The past year has been relatively uneventful for the European chlor-alkali industry. We didn’t have too many surprises, good or bad. Mercury as a human health and environ-mental issue continued to be with us. However, I expect an end soon to the wranglingbetween the European institutions over banning exports and storing surplus metal aspart of the EU mercury strategy.

Not too many surprises – good or bad

2

2 / Chlorine Industry Review 2006-2007

Unified strategic approachAll of the Western European chlorinemanufacturing members of Euro Chloragreed in 2001 an industry-wide strategy that focused on six voluntarycommitments. These were firstdeveloped to ensure a united industryapproach and commitment to addresskey sustainability concerns:

• Include environmental, social andeconomic factors in all strategicbusiness decisions;

• Optimise energy efficiency in chlorineproduction;

• Reduce water usage through recycling;• Continuously reduce polluting

emissions to water, air and land;• Use more hydrogen generated by the

industry as a raw material or fuel; • Give high priority to safe transportation

of chlorine.

In parallel, data was collected for 2001-02and with this information, 14 perfor manceindicators and improvement goals wereagreed among producers and announcedby Euro Chlor in January 2003. Then thefollowing year, a 15th indicator was addedthat required members to gain EMASand/or ISO 14001 EnvironmentalAccreditation for their plants.

The original 14 indicators come underthe following main areas: economicaspects of production, environmentalprotection, safety and social progress.Each year, producers are required toreport their progress to Euro Chlor,which combines feedback to report to the association’s ManagementCommittee prior to annual publication of the industry’s performance.

In this section, we report onperformance indicators and progresstowards goals in 2006. Whilst theprogramme continues to be a powerfulforce for change, progress slowed lastyear for the first time. Improvementswere made on three indicators – LostTime Injuries (LTI) for companyemployees, energy consumption andhydrogen consumption. But all othersremained basically unchanged with theexception of the LTI rate for contractors,which worsened.

ECONOMIC CONTRIBUTION Energy useTarget: By 2010, reduce industry-wideenergy consumption by 5.0% in terms of kWh/tonne of chlorine producedcompared with the 2001 base year.

Update: Following a slight increase in average energy consumption from 3,491 kWh/t of chlorine produced in 2004 to 3,499 kWh/t in 2005, theindustry got back on track in 2006 andreached the target four years ahead ofschedule. Average energy consump tionlast year was 3,440 kWh/t.

Comment: Euro Chlor’s ManagementCommittee will now consider whether or not to reassess the goal in the light of progress.

Background: Since electricity is anindispensable raw material of thechlorine production process, the basicconsumption – corresponding to theelectrochemical reaction – cannot besignificantly reduced. Energy savingsarise primarily through using moreefficient technologies and reducingancillary energy use.

“European chlor-alkali producers can be proud of the substantial progress that has been madeunder the industry’s Sustainability Programme, but with six years gone and the 2010 deadlineapproaching, we need to beware of complacency.” Alistair J Steel, who took over as ExecutiveDirector of Euro Chlor mid-2006, added: “Our industry’s well-earned reputation rests on howwell we respond to the challenge of stepping up our environmental, health and safety perform-ance during the next three years.”

Sustainability

No time now for complacency

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3

The energy indicator is weight-averagedacross all producers and based on steamand electricity. Energy is used for electrolysis(transformers, rectifiers and cells) andmotor power (pumps, compres sors,centrifuges, etc.). Steam is used mainlyfor caustic soda evaporation and forminor utility purposes.

Hydrogen useTarget: Increase recycling and re-use ofhydrogen gas from 80% (2001) to 95% by 2010.

Update: In 2006, 89.1% of hydrogen wasutilised compared with 88.1% in 2005.

Comment: With further efforts, the 2010goal should be achievable.

Background: High-quality hydrogen is co-produced with chlorine and causticsoda during electrolysis of brine. Thiscan be used as a raw material or fuel.

Manufacturing technologyTarget: The percentage of chlorineproduced by mercury cells, diaphragmcells, membrane cells and othertechnologies will be reported each year.

Update: In 2006, the mercury processaccounted for 43% of capacity followed

by membrane (39%), diaphragm (15%)and other (3%).

Economic developmentTarget: Euro Chlor will report monthly,quarterly or annually data on Europeanproduction of chlorine and caustic soda.This will include utilisation rates, causticstocks, capacity and technology by plants and applications.

Update: In 2006, Euro Chlor published onits website and distributed to the mediafigures for monthly chlorine productionand caustic soda stocks.

Energy consumption

3,700

3,600

3,500

3,400

3,300

KW

h/to

nne

of c

hlor

ine

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Actual Target

Hydrogen utilisation

100

90

80

70

60

50

40

30

20

10

0

Hyd

roge

n us

ed (

%)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Actual Target

Goal:5% reduction by 2010

Goal:95% used by 2010

Sustainability

4


Process incidents and losses

80

70

60

50

40

30

20

10

0

Num

ber

of p

roce

ss in

cide

nts

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Actual Target

Lost-time injuries (per million working hours)

18

16

14

12

10

8

6

4

2

0

Num

ber

of lo

st-t

ime

inju

ries

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Company employees Contractors Target

Company employeesGoal: 85% reduction by 2010

Goal: >75% reduction by 2010

Contractors Goal: 90% reduction by 2010

The Industry Review included a map ofEurope showing location of all plants and a table indicating the location,ownership, technology and capacity of each plant (see p.23 for 2006).

SAFETY & SOCIAL PROGRESSLost-time injuriesTarget: To reduce lost-time injuries to 1.3 (LTI) per million working hours for allworkers whether company employees orcontractors working on production sites.

Update: There was a reduction inemployee figures for 2006, with an LTIrate per million working hours of 8.32 for employees (compared with 9.09 in2005). For contractors, the rate rose toan LTI rate per million working hours of10.50 (compared with 7.72 in 2005).

Comment: The rate for contractorsshowed a disappointing increase andthere is a marked need for additionaleffort by a number of companies.

Background: A lost time injury (LTI) isone resulting in at least one day off work.It is reported as the number of LTI permillion working hours.

Process incidents and lossesTarget: A 75% reduction in processincidents from 67 (2001) to 15.

Update: There were 16 incidents in 2006 and the same number in 2005. For each year, this was less than half the annual average for 2001-2004.

Comment: The 2010 target is stillconsidered achievable.

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5

Background: Incidents are classified asevents involving a fire or an explosion orthe release of chlorine, hydrochloric acid,sulphuric acid, sodium hypochlorite(bleach) and caustic soda, which cause a fatality, serious injury or propertydamage exceeding €100,000. Lossesinclude any chemical spills to air, water or land, which impact human health or the environment, property or result in evacuation.

TransportationTarget: 1. Zero transport incidentsinvolving bulk movement of chlorine by 2010; 2. The tonnage of chlorinetransported as a percent of the totalchlorine produced will be reportedannually as well as mode of transport.

Update: 1. Following zero accidents in 2004, three were reported in 2005 and one in 2006; 2. Last year, producersin Europe transported 618,000 tonnes of chlorine (2005: 761,000 tonnes), with 73% shipped by rail and the rest by road.

Chlorine transported (excludingpipelines) represented 6% of 2006production vs. 7% the previous year.The average distance chlorine wastransported by rail was 480 km and by road, 200 km.

Background: A chlorine transportincident is one which either involvesdeath or injury, a spill of more than 5 kg, substantial property damage, public disruption of more than one hour or intervention of emergencyservices or media coverage.PVC industry doubles

recycling in 2006The European PVC industry recycled83,000 tonnes of this chorine-basedplastic in 2006, more than doublethe 2005 figure and almost six timesthe 2004 figure, according to the lat-est Vinyl 2010 Progress Report. Vinyl2010 is a coalition of PVC industrygroups: the European Council of VinylManufacturers (ECVM), EuropeanPlastics Converters (EuPC), EuropeanStabiliser Producers Association(ESPA) and European Council forPlasticisers and Intermediates (ECPI).Vinyl 2010 says that progress towardstargets set in 2000 show that thisparticular approach to self-regulationis working.

Transportation of chlorine

1,500

1,000

500

0

Chl

orin

e tr

ansp

orte

d(k

iloto

nnes

)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Total Rail Road

Plant safety targets still achievable

Goal: zero incidents by 2010

Sustainability

6


The amount of chlorine transported in Europe by rail and road has halvedduring the past decade. Chlorinemovement has been decoupled fromproduction through supplier/customerrelocations and more use of local pipe -lines. Rail transport dominates; roadtransport for bulk supply is used only in the United Kingdom and, to a limited extent, in Spain.

Responsible CareTarget: The 2010 goal is for all chlorine-producing members of Euro Chlor tobecome participants.

Update: The number of chlor-alkaliproducing members of Euro Chlor has fluctuated since the programmebegan as a result of restructuring andcompa nies merging or withdrawing from the sector. At 31 December 2006,35 out of 39 full members had joinednational Responsible Care initiatives.

Background: Responsible Care is thechemical industry’s global voluntaryinitiative by which companies, throughnational associations, work together tocontinuously improve their health, safetyand environmental performance and tocommunicate with stakeholders abouttheir products and processes.

Responsible Care was conceived inCanada and launched in 1985 to address public concerns about chemicalmanufacture, distribution and use. The number of national chemicalindustry associations embracing theResponsible Care ethic has grown from six to 52 countries since 1992.

Sustainability: a global concernAddressing sustainability issues isnot only important for Euro Chlor,but also to other national or regionalchlor-alkali business organisationsaround the world.

In 2007, the World Chlorine Councilpublished Sustainability Commitmentsand Actions. This publication reviewssustainability developments withinthe industry worldwide since a firstreview was published in 2002.

The new publication describes howthe global chlor-alkali industry con-tributes to sustainable development,both by providing essential prod-ucts and by continuously working toimprove its social, economic andenvironmental performance. It alsoaddresses key future challenges.

Sustainable development is, of course,approa ched differently by differentnations. In general terms, such initia-tives by the industry focus on the following:

• Providing essential products;• Developing scientific unders tanding;• Promoting sound chemicals

management;• Promoting resource conservation;• Improving safety performance;• Implementing Responsible Care.

WCC represents producers account-ing for more than 80% of worldwidechlor-alkali production. It links 18chlorine and chlorinated productsindustry associations in Europe, Asia,North and South America. SustainabilityCommitments and Actions, can be down-loaded from www.worldchlorine.org.

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ENVIRONMENTAL PROTECTIONCOC emissionsTarget: Emissions of 22 chlorinatedorganic compounds (COCs) to bereduced by 75% to water and by 50% to air against the 2001 base year.

Update: At end 2006, COC emissionsfrom manufacturing plants had beenreduced by 69.8% to water comparedwith 67% at end 2005 and 50.8% to air compared with 35% a year earlier.

Comment: Euro Chlor will now considerwhether or not to reassess the goal inthe light of progress.

Background: The COCs were selectedfrom various international regulatorypriority lists for emissions reductionsand comprise the following substances:1,1,1-trichloroethane; 1,1,2-trichloro -ethane; 1,2-dichlorobenzene; 1,2-dichloro ethane; 1,4-dichlorobenzene;2-chlorophenol; 3-chlorophe nol; 4-chlorophenol; carbon tetrachloride;chlorine; chlorobenzene; chloroform;dichloromethane; dioxins & furans (asTEQ); hexachlorobenzene; hexachloro -butadiene; hexachlorocyclohexane;pentachlorophenol; tetrachloroethylene;trichlorobenzene; trichloroethylene andvinyl chloride.

In 2005, pentachlorobenzene was addedto the list of the substances to bemonitored, in line with the requirementsof the EU Water Framework Directive.

To provide a longer-term perspective ofthe sector’s commitment to reducingemissions, the data shown spans theperiod 1985-2006.

2010 Target

Plant emissions to air

60

50

40

30

20

10

0

1,00

0 to

nnes

/yea

r

1985

1990

1995

2000

2006

2010 Target

Plant emissions to water

10

9

8

7

6

5

4

3

2

1

0

1,00

0 to

nnes

/yea

r

1985

1990

1995

2000 20

06

2010 Target 2010 Target

Air emissions target achieved;water goal is within reach

Mercury emissionsTarget: Although all other programmedeadlines are for 2010, the industrydecided to maintain an earlier 1998commitment to achieve an emissiontarget of 1g/t/chlorine capacity on anational basis by end 2007.

The industry elected to keep the earlierdate, since from October 2007 all EU chlor-alkali plants whether mercury,membrane or diaphragm require anoperating permit under the IntegratedPollution Prevention and Control (IPPC) Directive.

Update: Overall European emissions in2006 amounted to 1.055g Hg/tonnechlorine capacity compared with 1.046gHg/t in 2005. The average mercuryemissions for Western Europeancountries remained at the level of 1 g/tcapacity, but also with a slight increasecompared with the previous year.

Comment: The overall level of emissionsrose slightly last year primarily due tohigher levels of emissions in a fewplants, including one that underwentextensive maintenance work. The blipis considered temporary.

Product knowledgeTarget: There is no specific goal for 2010.This is because the chlor-alkali sectordecided to maintain an earlier (1999)commitment to provide by 2004 full eco-toxicological and environmental data on 29 chlorinated substances underthe International Council of ChemicalAssociations/OECD initiative on highproduction volume (HPV) chemicals.

Update: The original ICCA/OECD globalchemical industry deadline of initialassessment reports for about 1,000 HPVchemicals by 2004 proved far tougherthan anticipated and was extended to2009. In 2006, Euro Chlor completedfour assessments bringing the totalsubmitted to 25.

The summary information on allcompleted assessments is availablepublicly via the Chlorine Online website at www.eurochlor.org.

Environmental accreditationTarget: All full members to gain EMASand/or ISO 14001 EnvironmentalAccreditation for their plants by 2010.

Sustainability

8


1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Air Water Products

European mercury emissions

3

2,5

2

1,5

1

0,5

0

g m

ercu

ry/t

chl

orin

e ca

paci

ty

Update: During 2006, one companygained ISO 14001 accreditation andthree companies upgraded to the morecomprehensive EMAS accreditation.

BackgroundEMAS (The Eco-Management and Audit Scheme) is the EU voluntaryinstrument which acknowledgesorganisations that improve theirenvironmental performance on acontinuous basis. EMAS registeredorganisations are legally compliant, run an environmental managementsystem and report on theirenvironmental performance throughpublication of an independently verified environmental statement.

ISO 14001 is an international qualityassurance standard to evaluate anorganisation's environmentalmanagement systems and encouragecontinuous improvement. It helpsorganisations minimise negativeenvironmental impacts (to air, water orland), comply with applicable laws,regulations, and other environmentally-oriented requirements, and continually improve.

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9

Reducing the industry’senvironmental footprintRecent technological developmentsare having a major effect on reducingthe chlor-alkali sector’s environmentalfootprint, in particular by increasingenergy efficiency. Examples of recentinitiatives by Euro Chlor membercompanies include:

Akzo Nobel Base Chemicals startedup two different pilot fuel cellsystems to produce electricity fromhydrogen in Bitterfeld, Germany, andDelfzijl, The Netherlands, duringearly 2007. The company couldproduce 5-10 megawatts of greenelectricity from the current excesshydrogen, which is co-pro duced atBitterfeld. In Delfzijl, the one-yearproject will initially step up the pilotunit’s power from 50 kW to morethan a megawatt, at which point itbecomes commercially attractive.

Bayer MaterialScience is due to com-plete construction in 2008 of theworld’s largest hydrochloric acid recy-cling plant at its Shanghai facility,where the company plans to buildworld-scale isocyanate productionplants. It will be the first time that thecompany uses the innovative oxygendepolarised cathode (ODC) techno-logy to produce chlorine in a world-scale facility.

Bayer’s first ODC hydrochloric acidelectrolysis unit, with much smallercapacity, started up in Brunsbüttel,Germany, in 2003. The experiencegained there paved the way for thenew plant in China. The ODC processconsumes about 30% less electricitythan the diaphragm process used byBayer for many years.

Caffaro, an Italian member of EuroChlor, started operating in 2006 atBrescia what is believed to be theworld's first commercial, large-scalehydrogen fuel cells installation at asodium chlorate facility. The 120 kWsystem produces estimated electricitysavings of up to 20% and not onlyreduces the company’s operationalcosts, but simultaneously cuts green-house gas emissions. The chlor-alkalielectrolysis process presents manysimilarities to that used to make sodi-um chlorate, which is mainly used toproduce chlorine dioxide for bleach-ing paper pulp.

At its Stade complex in Germany,Dow produces chlorine for use inpropylene oxide production and otherprocesses. These processes use 30million m3 of water taken from theElbe and five million tonnes of salt peryear. Dow has achieved a world firstwith development and implementa-tion of a closed loop process for brine,chlorine and propylene oxide produc-tion. The project resulted in conserva-tion of 7 million m3/year of river waterand 600,000 tonnes/year of salt, aswell as a 23% reduction of annual saltdischarge and of total organic carbondischarge to the river Elbe.

High-performance incinerators atmany Solvay sites make use of theenergy content from most of theunwanted chlorinated and fluorinatedorganic by-products. Organic wasteswith high energy content are proces-sed using increasingly sophisticatedmethods, with a growing part playedby recycling and incineration to makeuse of the energy content.

Sustainability

10


Risk managementWith the implementation of REACHchemicals legislation, the EuropeanChlorinated Solvent Association(ECSA) has updated risk manage-ment strategies for producers toensure long-term sustainable useand optimal end-of-life managementfor chlorinated solvents.

ECSA members have approved a pro-gramme that sets out short and long-term sustainability objectives anddefines key performance indicators:

1. Sustainability actionsObjective: By 2009, ECSA commits toanalysing and prioritising emissiveapplications, and defining sustain-ability improvement actions.

Comment: To drive long-term indus-try and product sustainability, indus-try needs to identify challenges foreach application where emissionscan occur; demonstrate continuousimprovement; resolve energy andraw material issues.

2. Stakeholder engagement Objective: By end 2009, ECSA com-mits to developing active dialoguewith priority stakeholders, and toaddressing concerns.

Comment: Open dialogue and listen-ing to societal concerns will be key ifthe sector is to obtain operationalfeedback and recognition for the initiative.

3. Value chain engagementObjective: By mid-2007, ECSA mem-bers commit to complying with theEuropean Single Assessment Document(ESAD) or a similar distributorassess ment scheme. By end-2008, theywill develop education programmesin partnership with trade associationsrepresenting end-users and recyclers.

Comment: The first of these twoobjectives was completed on time.The buy-in and active involvement ofdistributors and representativeorganisations of downstream userswill be essential to success. Thereare more than 100 distributors andmany thousands of end-users of thethree main chlorinated solvents –trichloroethylene, methylene chlo-ride and perchloroethylene.

Adhesives Ceramics Fibre-glass LubricantsAdvanced composites Computers Flame-proofing PaintsAir bags Cosmetics Footballs PaperAntibiotics Credit cards Fungicides PerfumesAntifreeze Detergents Gaskets PharmaceuticalsBleach Disinfectants Golf bags PlasticsBlood bags Drilling fluids Greenhouses RefrigerantsBrake fluids Drinking water Hairdryers Roller bladesBullet-resistant glass Dry cleaning Herbicides RoofingBumpers Dyestuffs Inks Safety beltsCar seats Electronics Insulation VitaminsCarpets Explosives Intravenous drips Window frames ...CDs and DVDs Fertilisers Lighting ... and much more.

Chlorine and caustic soda – key chemical building blocks

The products of the chlor-alkali industry rarely go directly to consumers. However, an enormousrange of products and 2,000,000 jobs in Europe depend directly or indirectly on chlorinechemistry.

Legislative developments

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11

Energy costs critical The chlor-alkali sector is probably themost energy intensive industry in theworld – even more so than cement, glass or iron and steel. In fact, electricitycosts exceed 20% of sales value forEuropean chlor-alkali producers, whose products underpin more than€300,000 million of annual Europeanchemical industry turnover.

Euro Chlor continued to collaborate with Cefic and an alliance of sevenenergy-intensive industries to drawattention to increased costs caused by a malfunc tioning internal energy market, and the potential impact ofcurrent and future EU energy policies to combat climate change.

Euro Chlor continues to call on EUauthorities to publicly recognise thecritical economic importance of thesector to the European chemical industryand the latter’s role in the economy. The European Commission has beenapproached and urged when developingpolicies to take into account the sector’sheavy reliance on electricity as a rawmaterial and the need to maintain acompetitive position on global markets.

A study by an independent energy expert into the effects of electricity pricing on the competitiveness of the chlor-alkali sector has beencommissioned by Euro Chlor in order to improve understanding of the issue. This will be published fourth quarter 2007.

Water policyIn the EU’s drive for cleaner rivers, lakes and coastal beaches, Euro Chlorcontinues collaborating with Cefic andother business associations such asECPA (the European Crop ProtectionAssociation) on providing input to thedevelopment of a new directive toestablish water quality standards forpriority water pollutants, includingmercury and 11 chlorinated chemicals.

This legislation aims to have a majorimpact on water quality over the nextdecade and it is vital for the chlor-alkaliindustry that environmental standardsand emission limits set for prioritychlorinated compounds are realisticallydetermined and based on soundscience. Euro Chlor is very concernedabout emissions criteria require -ments for a number of substances.

The Directive on Environmental Quality Standards (EQS) and Pollution Control, which sets limits for concentrations of substances insurface water, was adopted by the EUCommission in July 2006 and is generally supported by Euro Chlor.

The original draft quality standards tookinto account Euro Chlor work on marinerisk assessments and defined workablemaximum levels, or threshold values, in biota for mercury and the unwantedby-products, hexachlorobenzene (HCB) and hexachlorobutadiene (HCBD).

UnrealisticSome exemptions also recognised Euro Chlor’s position that a totalcessation of emissions of HCB andHCBD was unrealistic and cannot beachieved. A study commissioned byEuro Chlor from BiPRO GmbH ofMunich three years ago predicted thatfull cessation could lead to plantclosures, and the loss of more than100,000 jobs and €12,000 million in business.

The most important and critical role of Euro Chlor is to provide advocacy leadership onefforts to positively influence proposed laws to protect environment, health andcompetitiveness. EU and international authorities share a common interest in achievingefficient, balanced and workable legislation. Additionally, industry must constantly striveto minimise potential threats – such as shortcomings in EU energy policy – to theindustry’s competitiveness on global markets.

Goal: Balanced and workable legislation


12


Parliament proposed200 amendmentsSince the Commission draft EQSDirective was published, the EuropeanParliament and Council have beenconducting reviews of the proposal. Euro Chlor has been monitoring progress and advocating positions on mercury and the 11 chlorinatedchemicals. These are among 33 priority substances, of which some are identified as priority hazardoussubstances (PHS). For these, releases and losses to the environment shouldcease by 2025.

The Parliament has proposed morethan 200 amendments to the regulation,including addition of more chemicals tothe priority list and upgrading of somesubstances to PHS.

The principal issue for the chlorinatedsolvents producers is the Parliament’sreclassification of carbon tetrachloride,perchloroethylene and trichloroethylene,even though these do not meet the PHSclassification criteria. Euro Chlor willcontinue to oppose this since we areconvinced there are no objective reasonsfor such a reclassification.

There were also some positivedevelopments. For example, theParliament rejected lower EQS values forHCB and HCBD and the “close-to-zero”emissions concept proposed by theCommission has remained unchanged.

In June, the Council of EnvironmentMinisters supported a compromise text, which is close to the Commission’soriginal proposal. A second reading will now be necessary early 2008 to reconcile differences between the Council and Parliament.

Serious effort Euro Chlor was invited to join an EU expert group set up early 2007 to improve the scientific basis for evaluating EQS and develop amethodology to derive such standardsfor sediment and biota. This is a serious attempt to ensure sound science is the foundation of suchstandards and is supported byindustry, since it should lead topublication of technical guidance by mid-2008.

Progress on storageEuro Chlor continued to contributeactively to discussions with the EUinstitutions to find a sustainable andsatisfactory solution to the storage ofmercury following the planned 2011implementation of a ban on exports of this toxic liquid metal to other parts of the world.

The proposed ban is part of the EU’smercury strategy designed to reducesupply, demand, emissions andexposure, whilst encouraging a globalphase-out of new mercury and measures to prevent surpluses getting back onto the market.

Euro Chlor recognises the importance of reducing levels of mercury in theenvironment and producers areimplementing a voluntary phase-out of chlor-alkali mercury cells by 2020 at a cost of more than €3,000 million.

During 2005-06, seven mercury-basedchlor-alkali plants were either closed orreplaced with non-mercury technology.

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13

However, European producers still have9,600 tonnes of liquid metallic mercuryused by 43 electrolysis plants in 14countries. These units account for 43%of European chlorine capacity.

Euro Chlor fully supports the proposedexport ban and storage solution adopted by the Commission in October2006, since it is consistent withindustry’s preferred solution ofpermanent underground storage ofmercury from decommissioned chlor-alkali plants in former salt mines.

Mid-2007, Euro Chlor was in the finalstages of obtaining membershipendorsement of a voluntary agreementfor this approach to storage. Details ofimplementation will clearly depend onthe final wording of the regulation that is ultimately adopted by Council and Parliament.

The European Parliament’s first readingin May – after review by its EnvironmentCommittee – focused on bringingforward the export ban from 1 July 2011,stopping mercury imports and requiring temporary storage either above or underground.

In June, the EU Council of EnvironmentMinisters reached political agreement on the export ban and storage afteragreeing that mercury could be disposed of permanently underground,subject to meeting yet-to-be determined technical criteria. However,due to the differing positions taken by the EU institutions, a second reading will be necessary early 2008.

Euro Chlor will continue to advocate the sector’s position on permanentstorage since there is no commerciallyviable process to transform the mercuryinto a less problematic compound.

Solvents restrictionA loophole in the Solvent EmissionsDirective that excluded metal-cleaningend users of less than a tonne per year of trichloroethylene from compliance has been closed. This follows acceptance of a voluntaryagreement proposed by industry at aDecember 2006 EU Risk ReductionStrategy meeting. After 2010, TRI will only be supplied for metal-cleaning if users have totally-enclosed equipment.

ECSA is opposing a recommendation by DG Enterprise to restrict use ofmethylene chloride (dichloromethane) in paint strippers solely for industrialapplications. The proposed ban on use in consumer strippers followedpublica tion in May 2007 of an impact assess ment report prepared for the Commission.

Euro Chlor’s advocacy role is equallyessential at the international level,particularly representing the industry’sinterests with the UN EnvironmentProgramme (UNEP).

In February, the federation’sEnvironment & Regulatory AffairsDirector, Dr Arseen Seys, represented the global industry under the umbrella of the World Chlorine Council (WCC) at the 24th UNEP Governing Councilmeeting (Nairobi), when ministersagreed not to impose global, legally-binding restrictions on mercury.

Instead, UNEP decided to strengthenits mercury partnership programme.Euro Chlor, through its participation inWCC, supports this initiative, whichincludes promoting the reduction orelimination of global mercury releases

Industry supports EU Commission planfor permanent mercury storage


14


through the adoption of bestmanagement practices or conversion to non-mercury cell technology.Delegates from the EU, India, Russia,and North and South Americaacknowledged the responsible andcollaborative attitude of the chlor-alkaliindustry in providing annual datasummarising regional industry use,consumption and emissions of mercury.First data for 2006 has been submitted byWCC to UNEP and was presented at itsGoverning Council meeting in February.

POPs guidelinesIn a positive move, guidelines on BestAvailable Technology (BAT) and BestEnvironmental Practice (BEP) to reduceunintentional emissions of persistentorganic pollutants (POPs) from industrialprocesses were adopted at the UNEPStockholm Convention meeting in May.These global guidelines – which relatemainly to the unwanted chemical by-products, dioxins, furans and hexachloro -benzene – do not impose restrictions onproducts or processes provided that BATand BEP are applied when chlorine isinvolved. Euro Chlor has been activelyinvolved through WCC and supportedtheir adoption.

The meeting also adopted Guidelines forthe Environmental Management ofPOPs Wastes developed under the BaselConvention. These set specificconcentration levels for determiningwhat constitutes POPs wastes (“lowPOPs content”), required levels ofdestruction for waste containing POPs,and sound destruction technologies. The low level content of POPs in wastehas been fixed at 15 microgrammestoxic equivalents (TEQ) of dioxin/furansper kg of waste, in line with EU limits.WCC actively supported this position.Specifically, hazardous waste incinerationis recognised as a preferred destructiontechnology for POPs wastes.

Candidate POPs Euro Chlor and WCC are involved in theprocess of evaluating substances as newPOPs under the global StockholmConvention and the regional UNEconomic Commission for Europe(UNECE) Long-Range Transboundary AirPollution (LRTAP) Protocol. Severaladditional chlorinated substances havebeen proposed for evaluation, and couldpotentially be the first additions of newcandidate POPs to both treaties.

The mechanism for adding substances as defined in the Stockholm Convention is supported by industry, but the processfor reviewing candidates has includedefforts by some countries to dilute and re-interpret criteria. This has importantimplica tions since chemicals could beclassified and banned as POPs onunjustified grounds. Industry will continue to support a science and risk-based approach and maintains that some chemicals do not merit being listed as POPs.

Proposed decisions for 10 candidatechemicals under the StockholmConvention will likely be considered by thePOPs Review Committee in November,with formal adoption of any decision inMay 2009. There currently seems to be noclear policy guidance on listing of newchemicals, with a “product by product”approach being taken.

Evaluation by UNECE of seven newsubstances – including hexachloro-butadiene, pentachlorobenzene andshort-chain chlorinated paraffins (SCCPs)– is more advanced. A decision onmanagement options for thesesubstances could be taken by theExecutive Body in December 2007.

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Willing to listen and respondThe European chlor-alkali sector’sapproach is coupled with a willingness tolisten and when necessary take voluntarymeasures to address concerns. For example, the 2010 sustainabilityprogramme adopted by the industry in2001 (see mid-term report, pages 2-10) is firmly rooted in the recycling andemissions reduction initiatives developedby Euro Chlor 12 years ago.

Because chlorine is such a major buildingblock of the broader chemical industry, it is inevitable that the chemical will beassocia ted with emerging and futureissues. Accordingly, the provision of soundscientific information continues to be anessential element of Euro Chlor work.

In 2006-07, the business associationexpanded its library of sciencepublications. Comprehensive sciencedossiers entitled Biodegradability ofchlorinated aromatic compounds andPentachlorobenzene – sources,environmental fate and risk characterisationwere published.

Starting with pentachlorobenzene,Euro Chlor is making all future science

dossiers available on CDs in additionto being downloadable with all otherpublications from the Euro Chlorwebsite, Chlorine Online.

The Focus on Chlorine Science series was also expanded with a new publicationon life cycle analysis. Euro Chlor sciencemanagers participated in a majorinternational congress and gavepresentations on environmental risksand persistent organic pollutants to PhD students at universities in Madrid,Spain, and Ghent, Belgium.

Record attendanceA record 2,100 scientists fromgovernment, academia and industryparticipa ted in the Society ofEnvironmental Toxicology & Chemistry(SETAC) annual congress in May (Porto, Portugal) at which Euro Chlorhad a stand featuring chlorine science.

Chlorine Online is our main informationresource on the Internet and effortscontinued to promote visibility withsearch engines and improve siteaccessibility and content.

We continued work also with nationalassociations to develop local language

satellite sites under the Chlorine Onlineumbrella. The delayed German language site should be launched byDecember 2007, along with a new UKEnglish site. This will succeed thechlorine website of the UK ChemicalIndustries Association’s former Chlorine Working Group.

The UK-focused site will bring thenumber of mini sites under the ChlorineOnline umbrella to three [the other, aSpanish site, was created in collaboration with the AsociaciónNacional de Electroquímica (ANE) in 2005].

Information & education

Provision of timely and reliable information – particularly on health, safety and environ-mental issues related to chlorine chemistry – always underpins effective reputationmanagement. Consequently, a policy of open and transparent communications withstakeholders at European and international levels is a key element in the strategy ofEuro Chlor to achieve balanced and workable legislation.

Transparency: A key element in reputation management

Online information sourceAlmost 360 chlorine informationrequests from 65 countries werereceived by Euro Chlor via the feder-ation’s Internet website ChlorineOnline during 2006. The Top 5 coun-tries comprised UK (68), Germany(32), USA (25), France (25) and China(20), which joined the ranking for thefirst time. Requests primarily con-cerned health, safety and environ-mental aspects of chlorine produc-tion and use.

Consortia gear up forREACH Supported by member company experts, Euro Chlor embarked in 2006 on a major initiative to form consortia for the registration of 17 business-critical chlorine-related compoundsunder the new (June 2007) EURegulation on Registration, Evaluation and Authorisation of Chemicals (REACH).

Under this legislation, about 30,000substances will have to be registered bythe European chemical industry. REACHaims to protect human health and theenvironment, maintain chemical industry competitiveness and preventfragmenta tion of the EU internal market.

Euro Chlor expects to have mostconsortia operating by end 2007. Data availability, leading registrants, and cost-sharing procedures remain to be finalised. Fortunately, Euro Chlorand the European Chlorinated SolventAssociation (ECSA), which is part ofEuro Chlor, have extensive experience in data generation and dossierpreparation under previous EU and international regulations.

Euro Chlor and member companyscientists invested significant time andeffort in meeting the July 2007 deadlinefor registration of chlorine, sodiumhypochlorite and calcium hypochloriteunder the Biocidal Products Directive.This aims to harmonise the Europeanmarket for biocidal products and theiractive substances whilst providing a high level of protection for humanhealth and the environment.

Existing risk assessment dossiers wereupdated to match the required format,and data was collected on the efficacy of available chlorine, and on exposureduring the various applications covered by the directive.

Costs minimisedCosts were minimised by preparing thethree biocides dossiers in parallel.Additionally, abstracts from the chlorinedossier were provided on a fee basis to a few non-member companies seeking to register active chlorine because they sell small-scale electrolysis units toproduce the chemical on site in hospitals and swimming pools fordisinfection applications.

Nonetheless, preparation of the dossiers will still cost industry more than €800,000with additional registra tion data expectedto cost a further €200,000 in 2008.

Chlorine and asthmaThere have been persistent reports –often overly dramatised by the media –in recent years of a possible link between chlorinated indoor pools andchildhood asthma. However, the body of sound scientific evidence to supportthe hypothesis has been lacking. Euro Chlor organised a meeting late2006 in Brussels of scientists andmedical specialists who discussed and reviewed the scientific literature,concluding that further investigationswere warranted.

A decision was taken to inviteinternational experts in epidemiology,swimming pool environments andrespiratory ailments/asthma to debatethe issue. The objective is to develop aconsensus on current knowledge andwhich studies should be conducted toprovide definitive evidence of anynegative health effects resulting fromexposure to chloramines. These areformed in the pool air by the reaction offree chlorine with organic substancessuch as sweat and urine.

Euro Chlor continues to use its scientific expertise to advocate sound, science-based regulatory decision-making. Key science-related activities in 2006-07 included setting upREACH consortia; compiling EU registration dossiers for chlorine-based biocides; investigating possible links between chlorinated swimming pools and childhood asthma;and updating recommendations on minimising workplace exposure to mercury.

Effective advocacy depends on sound science

16


Science

The experts’ meeting was scheduled totake place at Leuven University, Belgium,in August 2007 (after this Review hadbeen printed).

Limiting exposureEuro Chlor recommendations on bestpractices to limit mercury exposure inthe workplace were reviewed andupdated. These provide membercompanies operating mercury-basedelectrolysis plants with up-to-datepractical guidelines for hygiene, exposure measurement and reporting.

The recommendations, which take theform of a Code of Practice, now include the new maximum occupationalexposure recommendation of 30 micro grammes/g creatinine by the EU Scientific Committee forOccupational Exposure Limits (SCOEL). They were also revised to comply with industry’s self-assessment audit scheme. This aims to optimise working practices,lower worker exposure and improve audit results.

Euro Chlor was also involved inpreparations to implement the EU

Occupational Electromagnetic Fields(EMF) Directive published in 2004 fornational implementation within fouryears. The directive is applicable to allemployers in the EU. It is primarilydesigned to protect workers againstestablished impacts, such as thermal and electrical effects on the body.

CENELEC (the European Committee forElectrotechnical Standardisation) wasmandated by the European Commissionto prepare exposure limit standards. Euro Chlor assisted on behalf of thechlor-alkali sector by preparing amethodology to calculate exposure values around transformers and rectifiers in electrolysis cell rooms. Only a small number of trained operators work in these areas.

The Scientific Committee on Health & Environmental Risks (SCHER)endorsed in 2006 the conclusions of the EU risk assessment on caustic soda.This stated that most of the productionsteps and applications did not pose arisk to human health and there were norisks for the environment. However, aneed was identified for risk mana ge -ment measures on a few aspects ofproduction and use.

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Children’s health andchemicalsChildren are particularly vulnerableto environmental exposures. Becau -se of the ubiquitous nature of chlorine, Euro Chlor scientistsendeavour whenever possible tocontribute to informed debateabout our responsibility to min-imise or reduce environmental andhealth effects.

Through Cefic, for example, we provided information about ourindustry’s product stewardship effortsfor a publication (available as pdfunder publications at www.cefic.org)distributed to participants at themid-term review (June 2007) inVienna of the WHO ChildrenEnvironment and Health ActionPlan for Europe.

Cefic presented industry’s views onchemicals, environment and chil-dren’s health as part of a long-termstrategy to earn recognition as a val-ued stakeholder in the run up to the2009 WHO Ministerial Conferenceon this issue.

Industry overview

18


European chlorine production in 2006 (kilotonnes)

Poland + Czech Republic + Hungary + Slovak Republic 731

(7.0%)

UK + Austria + Switzerland + Finland + Sweden + Norway 1,215

(11.6%)

Germany 4,553(43.8%)

Spain + Portugal + Greece 716(7.0%)

Belgium + The Netherlands 1,401(13.5%)

France 1,282(12.3%)

Italy 496(4.8%)

Note: Countries are grouped as shown to comply with EU competition law

Chlorine production totalled 10.39 milliontonnes last year (2006) compared with10.45 million in 2005 and the 10-year-high of 10.54 million in 2004.Capacity utilisation rates in 2006averaged 83% compared with 84% in 2005.

For every tonne of chlorine produced,about 1.1 tonnes of caustic soda is made and production of the twochemicals last year exceeded 20 million tonnes.

Demand for caustic soda (also calledsodium hydroxide) fluctuatedsignificantly, but overall there was strongdemand for the second year in a row.

As a result, caustic stocks held byproducers dropped below 300,000tonnes in March 2006 and reached anall-time low of 215,000 tonnes inNovember. It was not until March 2007 that stock levels returned above the 300,000 tonnes mark.

Chlorine and caustic soda are used inmore than half of all commercial chemis try applica tions to createhundreds of second ary compounds that in turn contribute to plastics,pharma ceuticals and thousands of other products. The largest use ofchlorine is in production of polyvinylchloride (PVC or vinyl) plastic (see p. 19)and for caustic soda in the production of pulp & paper (see p. 20).

Germany is the largest chlorine producer(see below) accounting for 43.8% of

For the third successive year, European chlorine production continued strong and steadyin 2006, accompanied by robust demand for this chemical's co-product, caustic soda.Market demand last year for chlorinated solvents stabilised after a prolonged period ofdecline. On the manufacturing side, chlor-alkali producers continued the gradual shiftaway from mercury cells to more energy-efficient membrane technology.

Robust demand for caustic soda

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European chlorine applications in 2006 (10.14 million tonnes)

Solvents 3.3%Metal degreasing, adhesives, dry cleaning, plastics

PVC 34.1%Pipes, flooring, medical supplies,

clothing, windows

Other organics 8.9%Detergents, ship & bridge paints, lubricants,wallpaper adhesives, herbicides, insecticides

Inorganics 14.0%Disinfectants, water treatment,

paint pigments, silicon chips

Isocyanates & oxygenates 27.0%Upholstery, insulation, footwear, plastics, pesticides, car parts

Epichlorohydrin 5.7%Pesticides, epoxy resins, printed circuits, sports boats, fishing rods

Chloromethanes 7.0%Silicon rubbers, decaffeinators, PTFE, paint strippers, cosmetics

European production. Belgium/TheNetherlands (13.5%) overtook France(12.3%) in 2006 to become the secondlargest chlorine producer after Germany.France dropped to third place. Together,the top three regions accounted for about70% of total production last year.

Chlorine and caustic soda are produced by electrolysis using three maintechnologies – mercury, membrane anddiaphragm. The mercury process hasbeen used for more than a century. Tenyears ago, it accounted for more than 60%

of European capacity. End 2006, itrepresented 43% and by end 2007 isexpected to be overtaken as the principaltechnology by the more energy-efficientmembrane process. By 2010, mercurycells are expected to represent less than35% of capacity.

This gradual shift away from mercurycells stems from a voluntary commit -ment made by European industry toclose or convert such plants to non-mercury technology by 2020 (except forproduction of a few speciality chemicals).

The long time frame is essential to allowchlor-alkali producers to absorb theestimated €3,000 million investmentrequired to effect the phase-out withoutdamaging the industry's competitiveposition on global markets.

The 2010 phase-out decision taken in1998 was in response to public concernsabout human health and environmentalissues related to mercury. It is a naturally-occurring toxic element found in theearth’s crust and mined industrially.

Industry overview

20


European caustic soda applications 2006 (9.89 million tonnes)

Organics 31%Artificial arteries, parachutes, pen tips, hosiery, telephones

Rayon 2%Bedspreads, surgical dressings

Aluminium and metals 6%Greenhouses, car panels, steel hardening

Food industries 3%Fruit and vegetable peeling,

ice cream, thickeners, wrappings

Miscellaneous 16%Neutralisation, gas scrubbing,

pharmaceuticals, rubber recycling

Water treatment 5%Flocculation, pH control

Pulp, paper, cellulose 13%Bleaching paper pulp, adhesives,

heat transfer printing ink

Soaps 3%Shampoos, cosmetics

Mineral oils 2%Greases, fuel additives

Bleach 3%Textiles, disinfectants

Phosphates 3%Detergents

Other inorganics 13%Paints, glass, ceramics, fuel cells, perfumes

During 2006, mercury plants weredecommissioned in several countries.In The Netherlands, Akzo Nobel shutdown a plant (74,000 tonnes/year) inHengelo as part of a restructuring tominimize chlorine transportation; inFrance, Arkema closed mercury cells(184,000t/y) at St Auban in the Alpes/Haute-Provence region; in Belgium,Tessenderlo Chemie replaced a mercuryplant (150,000 t/y) with membranetechnology (270,000 t/y) and at Runcorn

in the UK, INEOS Chlor completed anew membrane cell room as part of acontinuing modernisation programme;the company retains some existingmercury cells at the site.

As mercury cells are decommissioned,producers return recovered surplusmercury to Minas de Almadén in Spain,which until it ceased production was thelargest mercury mine in Europe.

Under a 2001 agreement with EuroChlor, such mercury replaced tonne-for-tonne metal that would have otherwisebeen mined. This route was takenbecause it reduced emissions frommining and processing new mercury, saved energy and met legitimatedemands for the metal elsewhere in the world.

During the past six years about 2,000 tonnes of liquid mercury from

decommissioned plants has beenrecovered and reused, but about 9,600tonnes remains in 43 mercury-basedplants in 14 countries.

Since the EU Commission announced in2005 that it intended to phase out allmercury exports by 2011 as part of astrategy against mercury pollution, EuroChlor has been developing a plan toprovide safe, indefinite storage of liquidmercury in deep underground salt mines.

Mercury from chlor-alkali plants - as wellas non-ferrous metal and natural gascleaning industries - would be stored inhermetically-sealed steel containers

under such circumstances that there isno risk of corrosion (there is no humidity in a salt mine).

Both the EU Commission and Euro Chlorare convinced that such disposal can bedone safely provided appropriate storage and rigorous safety requirements are observed.

With an EU regulation on exportsexpected to be agreed early 2008, EuroChlor is now able to finalise plans for a voluntary commitment by producerson storage after 1 July 2011.

Solvents market stabilisesThe European market for chlorinatedsolvents stabilised in 2006, totalling214,000 tonnes in the EU-25 plusNorway, Switzerland and Turkey. This is 1% lower than 2005 (216,000 t).

The more stringent carcinogenicityclassification for trichloroethylene (TRI)imposed by the EU in 2002 continued to hit sales, down 11% to 25,000 tonnes(2005: 28,000 t). TRI sales have fallen60% since 2001 and only three European producers remain.

European sales of perchloroethylene(PER) were stable at 55,000 tonnes(2005: 56,000 t). PER is still the solventof choice for 80% of dry-cleaning shopsand continues to gain market share as aTRI substitute for metal degreasing.

For the first time since 1997, methylenechloride sales slightly increased to134,000 tonnes (2005: 132,000 t).It remains the most widely-usedchlorinated solvent, particularly forpharmaceutical production.

Combustion main sourceof mercury emissionsSome 70% of global mercury emis-sions of human origin come fromcoal-fired power stations and theincineration of waste materials.Cremation is a significant source,principally due to volatisation ofamalgam dental fillings. Combustionin the production of steel, non-fer-rous metals, pig iron and cementalso contributes to emissions.

Storage in salt mines provides corrosion-free environment

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7th InternationalTechnology Conference -April 2008Euro Chlor will hold its SeventhInternational Chlorine TechnologyConference & Exhibition at the LyonCongress Centre, France, 15-17 April2008. The event is intended primarily forchlor-alkali industry personnel involvedin production, maintenance, engineer-ing, health, safety and environmentalprotection. There will be a special ses-sion (15 April) for technology presen-tations by member companies onimprovements in energy consumption.

Information: Chlorine Online websiteat www.eurochlor.org.

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Chlorine production plantsJanuary 2007

1

43

45

49

41

42

48

44

50

12/14

11/13

16

18

10

3252

5154

2935

34232122

2631

3320

27 3736

2530

58

87

5960

2428

19 4

35

67

17

40 82

85

68

62

61

7267

65

64

70

7166

69

89 77

88

39

63

38

8

9

55

75

7457

56

North-EastAtlantic

NorthSea

Baltic

Mediterranean

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23

Austria 1 Donau Chemie Brückl M 65Belgium 3 SolVin Antwerp Hg, M 474

4 SolVin Jemeppe M 1765 Tessenderlo Chemie Tessenderlo Hg, M 400

Czech Rep. 6 SPOLANA Neratovice Hg 1357 Spolchemie Usti Hg 61

Finland 8 Akzo Nobel Oulu Hg 439 Finnish

Chemicals Joutseno M 75France 10 PPC Thann Hg 72

11 Rhodia Pont de Claix D 22012 Arkema Fos D, M 27013 Arkema Jarrie Hg 17014 Arkema Lavera Hg, D 34116 MSSA Pomblières Na 4217 Prod. Chim.

d'Harbonnières Harbonnières Hg 2318 Solvay Tavaux Hg, M 37519 Tessenderlo Chemie Loos Hg 18

Germany 20 BASF Ludwigshafen Hg, M 38521 Bayer Dormagen M, HCl 48022 Bayer Leverkusen M, HCl 33023 Bayer Uerdingen Hg, M 24024 Bayer Brunsbuttel HCl 21025 Dow Schkopau M 25026 Vinnolit Knapsack Hg, M 31027 CABB Gersthofen M 4028 Dow Stade D, M 1,58529 Akzo Nobel Ibbenbüren Hg 12530 Akzo Nobel Bitterfeld M 8331 Degussa Lülsdorf Hg 13632 INEOS Chlor Wilhelmshaven Hg 14933 LII Europe Frankfurt Hg 16734 Solvay Rheinberg D, M 20035 VESTOLIT Marl Hg, M 21636 Vinnolit Gendorf Hg 8237 Wacker Chemie Burghausen M 50

Greece 38 Hellenic Petroleum Thessaloniki Hg 40Hungary 39 BorsodChem Kazincbarcika Hg, M 301Ireland 40 MicroBio Fermoy M 6

Country * Company Site Process Capacity(000 tonnes)

Italy 41 Altair Chimica Volterra Hg 2742 Solvay Bussi Hg 8743 Caffaro Torviscosa Hg 6844 Syndial Assemini/Cagliari M 15345 Syndial Porto Marghera Hg 20048 Eredi Zarelli Picinisco Hg 649 Solvay Rosignano Hg 12550 Tessenderlo Chemie Pieve Vergonte Hg 42

Netherlands 51 Akzo Nobel Botlek M 63352 Akzo Nobel Delfzijl M 10854 GE Plastics Bergen op Zoom M 89

Norway 55 Borregaard Sarpsborg M 4556 Elkem Bremanger M 1057 Hydro Polymers Rafnes M 260

Poland 58 PCC Rokita Brzeg Dolny Hg 12559 ZACHEM Bydgoszcz D 6060 Anwil Wloclawek M 21487 Tarnow Tarnow Hg 43

Portugal 61 Solvay Povoa M 2962 CUF-Químicos

Industriais Estarreja M 68Slovak Rep. 63 Novácke chemické

závody Novaky Hg 76Slovenia 88 TKI Hrastnik Hrastnik M 15Spain 64 Ercros Huelva Hg 101

65 Ercros Sabinanigo Hg 2566 Ercros Vilaseca Hg, M 19067 Electroquímica

de Hernani Hernani M 1568 Elnosa Lourizan Hg 3469 Ercros Flix Hg 15070 Química del Cinca Monzon Hg 3171 SolVin Martorell Hg 21872 Solvay Torrelavega Hg 63

Sweden 74 Akzo Nobel Skoghall M 9575 Hydro Polymers Stenungsund Hg 120

Switzerland 77 SF-Chem Pratteln Hg 2789 Borregaard Atisholtz M 10

UK 82 INEOS Chlor Runcorn Hg, M 76785 Albion Thetford M 7

TOTAL 12,681

Country * Company Site Process Capacity(000 tonnes)

Process: Hg: Mercury M: Membrane Na: Sodium D: Diaphragm HCI: Electolysis of HCI to Cl2

Company names in italic are not Euro Chlor members.

* Number on map * Number on map

Euro Chlor

Regulatory and HSE focal pointEuro Chlor represents the interests of 97% of chlor-alkali producers in the EU-27 and the EFTA regions with theEU institutions and internationalauthorities. It also provides a focal pointfor members to share best practices onhealth, safety and environment (HSE)matters as well as co-ordinate scientific and communications activities to improve understanding of chlorine chemistry.

In Europe, 39 producer members ofEuro Chlor directly employ about 39,000people at 69 manufac-turing locations in19 countries. However, almost 2,000,000jobs are directly or indirectly related tochlorine and its co-product caustic sodawhen downstream activities are takeninto consideration.

Apart from producers, Euro Chloralso has 44 Associate members and 39 Technical Correspondents. Theseinclude national chlorine associationsand working groups, suppliers ofequipment, materials and services as well as downstream users and producers outside Europe.

From offices in Brussels, Euro Chlor also provides the Secretariat for the World Chlorine Council, a global networkof national or regional organisations inmore than 27 countries. WCC representsproducers accounting for more than 80% of worldwide chlor-alkali production.

Euro Chlor was founded nearly 40 yearsago as a production-oriented technicalorganisation but was restructured in

1989 in order to provide the sector with strengthened scientific, advocacyand communications capabilities. Sincethen, a strong focus has been placed on sound science coupled with

continual health, safety andenvironmental improvements complemented by open and transparent communications with key stakeholders.

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Management committee (30 July 2007)

Chairman, Tane, C INEOS ChlorCo-chairman, Ohm, C Bayer MaterialScience Coenen, F Tessenderlo ChemieConstant, F SolvayFuhrmann, W Akzo Nobel Base Chemicals García Brú, F ErcrosGarrigue, F Rhodia ServicesKahsnitz, J VESTOLITLamm, R Dow Märkl, R BASFPelzer, A PCC Rokita Procházka, M Spolchemie Raae, S Norsk Hydro Rieche, T DegussaRusso, G SyndialTual, D ArkemaWinhold, M Vinnolit

Secretariat staff

Steel, Alistair Executive DirectorMinne, Françoise Senior AssistantGarny, Véronique Science Directorvan Wijk, Dolf Science ManagerMarquardt, Wolfgang Science ManagerBertato, Valentina Science ManagerHarcz, Péter Science ManagerNorré, Viviane AssistantSeys, Arseen Deputy Executive Director;

Environment & Regulatory Affairs DirectorAndersson, Caroline Regulatory Affairs CounsellorCoppens, Isabelle AssistantOrban, André ECSA & Chlorinated Paraffins ManagerWhippy, Peter Communications ManagerTomas Moreno, Anna Communications CoordinatorDebelle, Jean-Pol Technical & Safety DirectorAlbus, Claire Assistant

Organisation The 16 Secretariat staff employed atoffices in Brussels represent ninenationalities (Belgian, English, Dutch,French, German, Hungarian, Italian,Spanish and Swedish) and betweenthem speak 10 languages.

Guidance and overall strategic directionis provided by the ManagementCommittee and 38 committees andworking groups provide specialistknowledge and support.

Committees & working groups

Management

• Management Committee• Sustainability ad hoc Task Force• Statistics Committee

Advocacy & communications

• Regulatory Affairs Committee• EU Advisory Group• National Chlorine Associations WG• Chlorine Communicators’

Network (CCN)

Product groups

• Chlorinated Paraffins SectorGroup

• Potassium Group

Science

• Steering Committee• Environmental Working Group• Toxicology WG• Risk Assessment ad hoc WGs

- Caustic soda - Chlorine - Sodium hypochlorite

• Biocides Strategy GroupRegistration Groups- Chlorine - Sodium hypochlorite- Calcium hypochlorite

• REACH Project Team

Technical & safety

• General Technical Committee(GTC)

• Environmental Protection WG• GEST (Safety) WG• Equipment WG• Transport WG• Health WG• Electromagnetic Fields WG• Analytical WG

European Chlorinated Solvent Association

• Management Committee• Communication &

Outreach WG• General Technical WG• Occupational & Environmental

Health WG• Product WG• Chlorinated Solvents Risk

Assessment WG• Chloroform Risk

Assessment WG• REACH Steering Committee

(with six product teams)

Global co-ordination responsibilities

Euro Chlor’s DeputyExecutive Direc torDr Arseen Seys,who is responsiblefor Regulatory &EnvironmentalAffairs, is alsoMana ging Dir ector

of the World Chlorine Council. Thisfollowed transfer of the WCCSecretariat in January 2007 from theChlorine Chemistry Division (CCD) ofthe American Chemistry Council to Euro Chlor.

Dr Seys is responsible for co-ordi-nating the combined resources ofthe main WCC members to meetbroad global industry goals and tar-gets. He is a frequent speaker onchemicals regulations, product stew-ardship and sustainability at semi-nars around the world held underthe auspices of the WCC,International Council of ChemicalAssociations (ICCA) and UN bodies.

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25

26


Membership

Full members Akzo Nobel Base ChemicalsAltair ChimicaAnwilArkemaBASFBayer MaterialScienceBorregaard IndustriesBorsodChemCABBCaffaroCUF-Químicos IndustriaisDegussaDow Deutschland Anlagengesellschaft Donau ChemieElectroquímica de HernaniElectroquímica del Noroeste (Elnosa)ErcrosFinnish ChemicalsHellenic PetroleumHydro PolymersINEOS ChlorLII EuropeMSSANovácke Chemické ZávodyPCC RokitaPPC SASProduits Chimiques d'HarbonnièresQuímica del CincaRhodia Services SF-ChemSolvaySolVinSPOLANASpolchemie SyndialTessenderlo ChemieVESTOLITVinnolitZACHEM

Associate membersAl Kout Industrial Projects Albion Chemical Distribution Angelini A.C.R.A.F.

Arch Chemicals Asahi Kasei Chemicals Association of Chemical Industry of the

Czech Republic (SCHP)Association of the Dutch Chemical

Industry (VNCI)BochemieChemical Industries Association (CIA)Chemieanlagenbau Chemnitz ChemoformChlorine Engineers Colgate-Palmolive EuropeExxonMobil Petroleum and Chemicalessenscia - Belgian federation for

chemistry and life sciencesFederchimica AssobaseGHC Gerling, Holz & Co Hungarian Chemical Industry

Association (MAVESZ)Industrie De Nora Jianghan Salt & Chemical ComplexK + SLeuna TensideLOMBARDA H Lonza Nankai Chemical Industry National Petrochemical Company of IranNCP Chlorchem Nippon SodaPlast- & Kemiföretagen – The Swedish

Plastics and Chemicals FederationPolish Chamber of the Chemical Industry

(PIPC)PPG Industries Procter & Gamble Eurocor SGCI Chemie Pharma SchweizShikoku Chemicals Sojitz EuropeSpanish Chlorine Producers Association

(ANE)Syndicat des Halogènes et Dérivés (SHD)Syngenta Teijin Twaron Tosoh CorporationUhde

Unilever Hellas Verband der Chemischen Industrie (VCI)Waterchem

Technical correspondentsAGC Chemicals Europe Alcan PMGE Pechiney NederlandApplitek Arabian Chlorine Asahi Organic Chemicals Industry Bayer Technology ServicesCarburos MetálicosChemtecCrane Resistoflex DescoteElectroquímica de Sagua Eramet Garlock GEA Messo H2SCAN CorporationUK Health and Safety ExecutiveISGECKoruma Klor Alkali Kronos Lubrizol Advanced Materials Europe Nufarm Coogee Pty O.P.W Fluid Transfer Group Europe Occidental ChemicalPhönix Armaturen – Werke Powell Fabrication & Manufacturing Recherche 2000 Samson Sasol Polymers Senior Flexonics ErmetoSevern Trent WaterShaw, Son & Greenhalgh SIEM – SupraniteSimon Carves Smart-Hose TechnologiesTechnip FranceTronox Pigments Trust Chemical IndustriesW.L.Gore & AssociatesWT Armatur

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Akzo Nobel Base Chemicals BVP O Box 247NL-3800 AE AmersfoortTHE NETHERLANDSSwitchboard: +31 33 467 67 67General fax: +31 33 467 61 19www.akzonobel.com

Altair Chimica SpAVia Moie Vecchie, 13I-56047 Saline di Volterra (PI)ITALYSwitchboard: +39 05 88 98 11General fax: +39 05 88 44 392www.altairchimica.com

Anwil SAul. Torúnska, 222PL-87-805 WloclawekPOLANDSwitchboard: +48 54 236 30 91General fax: +48 54 236 19 83www.anwil.pl

Arkema420, rue d’Estienne d’Orves92705 Colombes CedexFRANCESwitchboard: +33 1 49 00 80 80General fax: +33 1 49 00 83 96www.arkema.com

BASF AGCarl-Bosch-Str., 38D-67056 LudwigshafenGERMANYSwitchboard: +49 621 600General fax: +49 621 604 25 25www.basf.com

Bayer MaterialScience AGD-51368 LeverkusenGERMANYSwitchboard: +49 214 301General fax: +49 214 303 88 10www.bayermaterialscience.com

Borregaard Industries LtdP O Box 162N-1701 SarpsborgNORWAYSwitchboard: +47 69 11 80 00General fax: +47 69 11 87 70www.borregaard.com

BorsodChem RTP O Box 208H-3702 KazincbarcikaHUNGARYSwitchboard: +36 48 511 211General fax: +36 48 511 511www.borsodchem.hu

CABB GmbHAm Unisys-Park 1 D-65840 Sulzbach am TaunusGERMANYSwitchboard: +49 6930 527 777General fax: +49 6930 5277 778www.cabb-chemicals.com

Caffaro SRLPiazzale Marinotti 1I-33050 Torviscosa (UD)ITALYSwitchboard: +39 0431 3811General fax: +39 0431 381 379www.caffaro.it

CUF-Químicos Industriais S.A.Quinta da IndustriaBeduídoP-3860-680 EstarrejaPORTUGALSwitchboard: +351 234 810 300General fax: +351 234 810 306www.cuf-qi.pt

Degussa AGBennigsenplatz 1 D-40474 Düsseldorf GERMANYSwitchboard: +49 211 6504 0410General fax: +49 211 6504 1472www.degussa.com

Dow Deutschland AnlagengesellschaftmbHWerk StadeD-21677 StadeGERMANYSwitchboard: +49 4146 910General fax: +49 4146 912 600www.dow.com

Donau ChemieAm Heumarkt, 101030 WienAUSTRIASwitchboard:+ 43 1 711 470www.donau-chemie.com

Electroquímica de Hernani SAAvenida de Madrid, 13 - 1E-20011 San SebastianSPAINSwitchboard: +34 94 345 11 41General fax: +34 94 345 39 65

Full members

Full members

Electroquímica del Noroeste S.A.U.(Elnosa)P O Box 265E-36080 PontevedraSPAINSwitchboard: +34 98 685 37 20General fax: +34 98 684 09 62

Ercros SAAvenida Diagonal 595 - 10a pl.E-08014 BarcelonaSPAINSwitchboard: +34 93 439 30 09General fax: +34 93 430 80 73www.ercros.es

Finnish Chemicals OyP O Box 7FIN-32741 ÄetsäFINLANDSwitchboard: +358 204 31 11General fax: +358 204 310 431www.finnishchemicals.com

Hellenic Petroleum SAP O Box 10044GR-541 10 ThessalonikiGREECESwitchboard: +30 2310 750 000General fax: +30 2310 750 001www.hellenic-petroleum.gr

Hydro PolymersDrammensveien 164N-0240 OsloNORWAYSwitchboard : +47 22 538 100General fax: +47 22 532 444www.hydropolymers.com

INEOS Chlor LtdRuncorn Site HQSouth Parade, PO Box 9RuncornCheshire WA7 4JE UNITED KINGDOMSwitchboard: +44 19 2856 1111 www.ineoschlor.com

LII Europe GmbHIndustriepark HoechstD-65926 Frankfurt am MainGERMANYSwitchboard: +49 69 305 20 50General fax:+ 49 69 305 20 57www.liieurope.com

MSSA SASPomblièreF-73600 Saint MarcelFRANCESwitchboard: +33 4 79247070General fax: +33 4 79247050www.metauxspeciaux.fr

Novácke Chemické Závody A/SM.R. Stefanika, 1SK-97271 NovakySLOVAK REPUBLICSwitchboard: +421 46 568 11 11General fax: +421 46 546 12 23www.nchz.sk

PCC Rokita SAc/o PCC AGMoerser Straße 149D-47198 DuisburgGERMANYSwitchboard: +49 2066 20 19 11General fax: +49 2066 546 82www.pccag.com

PPC SAS95 rue du Général de Gaulle68802 Thann CedexFRANCESwitchboard: +33 3 8938 46 00General fax: +33 3 8938 46 01www.ppchemicals.com

Produits Chimiques d'HarbonnièresP O Box 1Place de l'EgliseF-80131 HarbonnièresFRANCESwitchboard: +33 3 228 576 30General fax: +33 3 228 576 31www.spch.fr

Química del Cinca SAAvenida Diagonal, 352 Entlo.E-08013 BarcelonaSPAINSwitchboard: +34 93 458 40 00General fax: +34 93 458 40 07www.qcinca.es

Rhodia Services 40, Rue de la Haie CoqF-93306 Aubervilliers CedexFRANCESwitchboard: +33 1 53 56 50 00 General fax: +33 1 53 56 54 91 www.rhodia-eco-services.com

SF-ChemP O Box 1964CH-4133 Pratteln 1SWITZERLANDSwitchboard: +41 61 825 31 11General fax: +41 61 821 80 27www.sf-chem.com

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Solvay SARue du Prince Albert, 33B-1050 BruxellesBELGIUMSwitchboard: +32 2 509 61 11General fax: +32 2 509 66 17www.solvay.com

SolVin SARue de Ransbeek, 310B-1120 BruxellesBELGIUMSwitchboard: +32 2 264 21 11General fax: +32 2 264 30 61www.solvinpvc.com

SPOLANA a.s.ul. Prace 657CZ-277 11 NeratoviceCZECH REPUBLICSwitchboard: +420 315 661 111General fax: +420 315 682 82www.spolana.cz

Spolchemie Revolu ní 1930/86CZ-400 32 Ústí nad LabemCZECH REPUBLICSwitchboard: +420 477 161 111General fax: +420 477 163 333www.spolchemie.cz

Syndial SpAPiazza Boldrini, 1I-20097 San Donato Milanese (MI)ITALYSwitchboard: +39 02 520 326 00General fax: +39 02 520 326 16

Tessenderlo Chemie SARue du Trône, 130B-1050 BruxellesBELGIUMSwitchboard: +32 2 639 18 11General fax: +32 2 639 17 02www.tessenderlo.com

VESTOLIT GmbH & Co. KGP O Box 10 23 60D-45753 MarlGERMANYSwitchboard: +49 2365 4905General fax: +49 2365 4000www.vestolit.de

Vinnolit GmbH & Co. KG Corporate Center Carl-Zeiss-Ring 25 D-85737 Ismaning GERMANYSwitchboard: +49 89 96 1030 General fax: +49 89 96 103 103 www.vinnolit.com

ZACHEM S.A.Ul. Wojska Polskiego 65PL-85-825 BydgoszczPOLANDSwitchboard: +48 52 374 81 00General fax: +48 52 301 02 82www.zachem.com.pl

31 July 2007

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Euro ChlorAvenue E. van Nieuwenhuyse 4, box 2B - 1160 Brussels, Belgiumtel: +32 2 676 72 11fax: +32 2 676 72 [email protected]

© Euro Chlor 08/2007

Euro Chlor provides a focal point for the chlor-alkali industry’s drive to achieve a sustainable future through

economically and environmentally sound manufacture and use of itsproducts. Based in Brussels, at the heart of the

European Union, the federation works with national, European andinternational authorities to ensure that

legislation affecting the industry is workable, efficient and effective.

chlorine industry review 2006-2007 · transparency: a key element in reputation management online...

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