en the key international edition to greater...

The key to greater efficiency Catalysts make life easier for chemists. Evonik Industries is significantly expanding its catalysis business

T H E E M P L O Y E E M A G A Z I N E O F E V O N I K I N D U S T R I E S A G 10 | 2 0 1 0

EN | International Edition

Background The German chemical industry has a new voice Careers The program for international talentGerman chemistry A decade of global success

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3 Editorial A new pre sident, more efficiency, and global talent

4 Magazine Cooperation with APTEurope, Site Services Business Unit launched, new plant in China, TEGO in cosmetics, lunch in Rheinfelden

6 Cover story With the right catalyst, chemical reactions use fewer resources. That’s why they’re in demand worldwide when chemical processes need to become more efficient. A look at Evonik Industries’ strategy here

12 Our people Participants report on how the International Sales and Marketing Program turns talented young people into well-traveled experts

14 Background As the new President of the Association of the Chemical Industry, Dr. Klaus Engel represents the interests and promotes the image of his sector

16 At a glance How the German chemical industry is taking world markets by storm

19 The thing Pressing tubes is part of technical manager Volker Martini’s job

Evonik people Bernd Schmitt from Uchtelfangen

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MASTHEADPublisher: Evonik Industries Aktien gesellschaft, Dr. Klaus Engel Office Manager/Head of Internal Communication: Stefan Haver Editor in Chief: Urs Schnabel (responsible according to press law)Editorial Consultant: Christoph Peck Art Direction: Wolf Dammann Managing Editor: Stefan M. Glowa Head of Group Editorial Office: Steffen Henke Senior Editor: Christof Endruweit Authors in this issue: Dr. Karin Assmann (ASS), Horst-Oliver Buchholz (HOB), Christof Endruweit (CHE), Carsten Greiert (CEG), Ursula Jäger (UJ), Markus Kleine-Beck (MKB), Stefanie Kubot (SK), Christoph Peck (CP), Carina Troll (CT) Address: Rellinghauser Straße 1, 45128 Essen, Postfach 10 32 62, 45117 Essen, tel. +49/(0)201/177-33 40, internal 992-33 40, fax +49/(0)201/177-31 81, e-mail: [email protected] Picture Editor: Karsten Bootmann Design: Martin Bartel, Arnim Knorst (head), Silke Möller, Susana Oliveira/Redaktion 4, Hamburg Copy Desk: Wilm Steinhäuser Translation: TransForm, Cologne Publishing house: HOFFMANN UND CAMPE VERLAG GmbH, a company of the GANSKE VERLAGSGRUPPE, Harvestehuder Weg 42, 20149 Hamburg, tel. +49/(0)40/441 88-457, fax +49/(0)40/441 88-236 Management: Manfred Bissinger, Dr. Kai Laakmann, Dr. Andreas Siefke Publication Manager: Dr. Ingo Kohlschein Production: Claude Hellweg (head), Oliver Lupp Marketing: Kirsten Beenck, tel. +49/(0)40/688 79-139, fax +49/(0)40/688 79-199, e-mail: [email protected] Reproduction: PX2, Hamburg Copyright: ©2010 by Evonik Industries Aktiengesellschaft, Essen. Reprinting only with source credit and voucher copy. The content does not necessarily reflect the opinion of the publisher.

Marketing efficiencyCatalysts make production in the chemical industry more efficient. Evonik Industries is expanding its capacity and strengthening its position in this growth market

The new voiceAs the new President of the Association of the Chemical Industry in Germany, Dr. Klaus Engel aims to promote the interests of the chemical sector and boost its public image

Cover photo Companies involved in specialized catalysts for chemical production can do good business all over the world. For the cover photo, our photographer Stefan Wildhirt snapped Evonik employee Manfred Hoff in the Technicum in Hanau as he was testing a catalyst specially developed for a customer

The name TEGO® is a registered trademark of Evonik Industries AG or one of its subsidiaries It is indicated in capital letters throughout the text.

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The Evonik agenda for OctoberOctober 6–8, Herne: The Europe Forum session will be attended by 35 delegates who have been sent by employees and the management. The dele-gates will meet with the Labor Director of Evonik Industries and the Board of Management of Evonik Degussa GmbH to discuss strategic, financial, and human resources issues that affect the employees at the Group’s locations in Europe.

October 27– November 3, Düssel-dorf: At the K, the world’s largest trade fair for rubber and plastics, Evonik Industries will present inno-vations from all of its Business Units.

October 29, Bochum: Dr. Klaus Engel, CEO of Evonik Industries and President of VCI, will give a keynote speech in the Audimax of Ruhr-Universität Bochum. His focus will be on the fundamental challenges now being faced in the area of industrial policy.

October 5 –7, Paris Nord Villepinte (France): CphI worldwide will take place in the French capital city. It is the most impor-tant global trade fair for buyers, producers, and customers of pharmaceuti-cal products and services. Evonik Industries will be represented at the fair by the Inorganic Materials, Coatings & Additives, Health & Nutrition, and Industrial Chemicals Business Units.

October 4 –6, São Paulo (Brazil): The International Congress and Exposition of Cellulose and Paper is regarded as Latin America’s most important event of its kind.

This year the CPhI will be held in Paris (France)

Dear readers,Dr. Klaus Engel is the new voice of the German chemical industry. And this voice is saying very clearly that Germany must remain an industrial nation. As the newly elected President of the Association of the Chemical Industry, he represents the sector‘s interests in dealings with politicians and the general public. In this issue our Folio author Christoph Peck presents the positions taken by the new president and an overview of the association’s work and responsibilities (pages 14–18).

Chemical catalysts make it possible to use resources and energy in a very efficient manner. This makes them a key factor when it comes to optimizing value creation in chemicals production. Our editor Dr. Karin Assmann describes how Evonik Indus-tries is strategically expanding its position and creating value in the catalyst market (pages 6–11). The strategy involved focuses on the market: Companies that aim to do good business with catalysts must be very familiar with their customers’ needs.

Understanding how other people think and work was the theme of the second Network ing Day of the International Sales and Marketing Program (ISAM for short) in Hanau-Wolfgang. Christof Endruweit, who attended the meeting for Folio, reports on the reactions of the program’s participants and supporters (pages 12–13). Stefanie Reitz, an ISAM participant currently working in Piscataway (New Jersey, USA), had a very clear message: “To get ahead, you have to apply yourself, get involved, and have good communication skills.”

Pleasant reading!

The Folio editorial team

ChristophPeck

Dr. Karin Assmann

ChristofEndruweit

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New unit launchedThe new Site Ser-vices Business Unit was launched on October 1. The unit, which has eight lo-cations in Germany, brings together ser-vices for technology, logistics, supply and disposal, and site management in one organization. Prior to the launch, the exec-utive team led by Dr. Norbert Ripke designed the unit’s organizational struc-ture and appointed its top-level manag-ers. Plans for its fur-ther development are already in place. “The first order of busi-ness is to make sure the structures func-tion smoothly and establish a unit-wide reporting system,” says Ripke. “We need to quickly show that the new Site Services Business Unit will offer bene-fits to our employees and customers. Then we’ll press on with the integration of five more locations by July 1, 2011. We’ll also step up the expansion of our third-party busi-ness.” Site services already generate some 40 percent of their revenues through business with companies outside the Evonik Industries Group.

LUNCH IN… RheinfeldenElements that belonged together have come together in Rheinfeld, where the Persalt Product Line was incorporated into the Active Oxygens Business Line as an independent product line at the beginning of this year, and then given the designation of “IC Operating Group” on June 1. The new partnership is not only working out well on the job; staff members from both organizations also regularly meet for lunch. Pictured here are IC Group director Dr. Jürgen Haas (left), plant manager Lothar Kaiser, and assistant plant manager Rolf Späthe. All of them agree that “when two organizations merge, the chemistry has to be good. Taking lunch breaks together definitely helps to promote mutual understanding between the two groups of employees.”

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New plant in ChinaEvonik Industries is planning to build a new factory for pro-ducing triaceton-amine (TAA) deriva-tives in Liaoyang (China). The move comes in response to continually increas-ing demand for these substances over the past few years. The cornerstone of the new facility will be laid before the year is out, and plans call for full production to begin in the fourth quarter of 2011. TAA derivatives are key primary materials for the production of light stabilizers, which improve the resistance properties of plastics that are exposed to intense light. Some of the most important ap-plications for these stabilizers can be found in the automo-tive and construction industries. Evonik al-ready operates a TAA manufacturing facility in the Marl Chemical Park.

Planned: A new facility for TAA derivatives

TogetherEvonik Industries will cooperate with APT Europe on the pro-duction and sale of VESTAKEEP brand products in the fu-ture. The partnership will allow Evonik to take advantage of APT Europe’s sales and technical service network, which has been operating suc-cessfully for decades. APT Europe will benefit from Evonik’s expertise in the pro-duction of high-per-formance semi-fin-ished products made of polyetheretherke-tones in the USA. “Working with APT Europe allows us to extend our coopera-tion from the USA to Europe,” says Dirk Heinrich, Director Marketing & Sales VESTAKEEP in the High Performance Polymers Business Line. The partnership will focus on devel-oping new applica-tions in areas such as medical technology.

Unbeatable: VESTAKEEP semi-finished products

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VESTAKEEP® and TEGO® are registered trademarks of Evonik Industries AG or one of its subsidiaries. They are indicated in capital letters throughout the text.

Stable cosmeticsThe Personal Care Product Line presented its new product TEGO Carbomer 140 G at the in-cosmetics international trade fair in Paris (France). Car-bomers are substances that are widely used as flowability modi-fiers and suspension agents in body care products. Carbomers stabilize and thicken products such as gels, emulsions, and surfactant-based formulations. Standard carbomers come in the form of powders, but the new product from Personal Care is manufactured as a granulate. TEGO Carbomer 140 G was specifically developed for use in cosmetic and pharmaceutical emulsions and gels. Its granu-lated structure offers numerous advantages over the standard powder form of carbomers, such as less dust buildup and a higher level of flowability. The bulk density of TEGO Carbomer 140 G is 3.5 times higher than that of powdered carbomers, which translates into lower transport volume when it is shipped. It is also easier to disperse and handle than powdered carbomers. TEGO Carbomer 140 G is both water-soluble and alcohol-soluble and can be used across a broad range of pH values. It can be dispersed very quickly in water without forming any clumps and is par-ticularly suitable for the prepa-ration of clear gels with a water or alcohol base, as well as the preparation and stabilization of creams, lotions, and suspensions and the production of highly viscous emulsions.

Why does Evonik Industries need a rating?Rating agencies are among the organizations whose job is to assess and categorize the creditworthiness of individual companies. One of the ways that Evonik raises funds is by going to the capital markets, as we did last year with our bond issue, for example. The ratings that are issued by leading international agencies provide potential investors with an independent assessment of the company’s creditworthiness.What does Evonik’s current rating actually mean?In principle, the better the rating is, the more favorable will be the terms under which companies can obtain funds from the capital markets. In this sense, a positive rating can have a direct effect on fi nancing costs at Evonik Industries. The current BB+ rating from S&P, and the Ba1 rating by Moody’s, puts us just below the so-called investment grade, which we plan to reach in the next step.What can Evonik do to improve its rating?There are two key factors that infl uence a rating: a company’s business profi le and its fi nancial profi le. With our business profi le we have already laid the foundation for an investment grade rating. For example, our well-diver-sifi ed chemical operations have helped to stabilize us during the economic crisis, and the decision we’ve taken to focus on the core Chemicals business reinforces this approach. The increase in operating profi t that we recorded for the fi rst half of 2010 led to a considerably higher cash fl ow from our ongoing business operations. At the same time, we have implemented several measures that have lowered our fi nancing debt by €1.09 million since the end of 2008. This will enhance our fi nancial profi le, and so will our partial use of our sales revenue to pay down our debt and the improvements we have made as a result of our “On Track” effi ciency program.

Ute WolfThe Group Finance Director talks about Evonik Industries’ first-ever rating

T H R E E Q U E S T I O N S F O R …

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Management on the move

August 10-13, Lafayette (Indiana, USA): CEO Dr. Klaus Engel visits Tippecanoe Laboratories for the first time. A week later, Engel and RAG Foundation Chairman Wilhelm Bonse-Geuking pay a visit to China.

August 11, Hanau: Dr. Wolfgang Col-berg, Chief Financial Officer of Evonik Industries, visits the Wolfgang Industrial Park. The tour program includes an in-house fair, the Rhine-Main Training Center, and AQura GmbH.

July 22, Munich: CEO Dr. Klaus Engel signs documents covering the establish-ment of a new foundation at Technische Universität München. Evonik Industries is one of the foundation’s ten founding members.

August 10-13, Shanghai (China): Thomas Wessel, Chief HRO and member of the Evonik Degussa GmbH Board of Management, visits three locations: Xin-zhuang, MUSC , and Evonik Sanzheng (Yingkou) Fine Chemicals Co., Ltd.

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Accelerate growth with catalysisWhile the market for catalysts is growing moderately in Europe and the USA, it is experiencing powerful growth spurts in India and China. The Catalysts Business Line, which is part of Health & Nutrition, reacted to these developments with a targeted growth strategy linking world-class German research with customer proximity in the dynamic markets


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Without catalysis, many of our ev-eryday products would be incon-ceivable: drugs and polymers,

fuels, and fertilizers. Worldwide each year chemicals valued at about US$3 trillion are created using catalytic processes. The actual market for catalysts themselves, on the other hand, has a volume of roughly US$15 billion—which shows their enormous leverage effect—and they are going to become even more im-portant. Catalysts are extremely efficient in terms of energy and resources and are indis-pensable to sustainable development, not only in the chemical industry. The changes in the energy economy will depend on them to the same extent as the use of renewable raw ma-terials. Catalysts first made possible many of the 20th-century chemical products that have become essential to maintaining our standard of living—and they will remain a key technol-ogy for solving many of the problems of the 21st century.

One of the global suppliers in the catalyst market is Evonik Industries. The company is one of the world’s leading producers of pre-cious metal powder catalysts and activated base metal catalysts. Both catalyst groups are used in similar market segments: in the pharmaceutical and food industries and in the production of fine and industrial chemicals. These industries need them to produce vi-tamins, active pharmaceutical ingredients, and intermediates for polyurethane, which is used, for example, in foams for car seats and to insulate refrigerators. Catalysts, however, have different capabilities in terms of se-

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C O V E R S T O R Y 7

At the technical center in Hanau, Manfred Hoff tests a catalyst which has been specially developed for a customer


lectivity and activity, which means that Evonik covers a wide range of applications.

Traditionally, the regional focuses of the catalyst market are highly developed regions: Europe, the USA, and Japan. Evonik has es-tablished a leading position in these regions over the years—by continuously developing its range of products as well as its services. “On the one hand, thanks to modern research, our catalysts are becoming increasingly ca-pable—the leverage effect increases because they continuously improve the yields of chem-ical processes. This reduces consumption of energy and raw materials,” explains Dr. Wil-fried Eul, who heads Evonik’s Catalysts Busi-ness Line. On the other hand, Evonik supports its customers at all levels in the development of a catalytic process for which the catalyst is needed. “This wide range of services is what distinguishes us from the competition.” It’s a recipe for success that will become increas-ingly important in the future. “The key to suc-cess in these markets is to further develop our good market position through close coopera-tion with the customers, while offering them good service and innovation,” is how Eul de-scribes Evonik’s strategy.

Above-average growth rates in AsiaIn the emerging markets of China and India particularly, the pharmaceutical and chem-ical industries are recording above-average growth rates of between five and ten percent. In China, increasing domestic consumption and the fact that a growing number of indus-tries now produce here, such as the textile,

automotive, and electronic sectors, have fa-vored growth in the country’s own chemical industry, which is also getting a stronger foot-hold in the world market. Because it is gaining more and more expertise, China’s chemical industry is increasingly focusing on products that are more difficult to synthesize, so the de-mand for powerful catalysts for resource and energy efficient processes is growing.

India is becoming a market to reckon with in the global pharmaceutical industry. Auditing and consulting company Pricewa-terhouseCoopers (PwC) predicts that the sales volume in the Indian drug market will rise from the current US$20 billion to about US$50 billion by 2020. This would place India among the ten-largest pharmaceutical mar-kets in the world by the end of the decade. At the same time, Indian producers are increas-ingly forging a presence on the world market with generic products. PwC estimates that the volume of India’s pharmaceutical exports will increase from about US$8 billion in 2008 to US$20 billion by 2020. The Indian fine chem-icals market is also growing because more and more pharmaceutical and agricultural chem-ical producers no longer produce their own active agents, but have them manufactured by fine chemical companies.

Evonik has aligned its catalyst strategy to take account of these developments. The aim is to expand the technological lead and glo-balize technologies. More specifically Evonik wants to enter the emerging markets with key technologies in order to support the develop-ment of these markets, on the one hand, and

to participate in them, on the other. “In con-crete terms, this means that we’ve entered both markets with our own production so that we can supply the companies operating there directly,” says Eul.

Production started in India and ChinaFor example, in June 2010, the company opened a new plant in Shanghai (China) to produce precious metal powder catalysts—an ideal location because Shanghai is right next-door to the provinces of Jiangsu and Zhejiang where numerous pharmaceutical and fine chemical companies are located. “This prox-imity to our customers allows us to align our products and services optimally to the needs of the Chinese industry,” says Tim Busse, who is responsible for the Catalysts Business Line in China.

At the same time, in India, Evonik has taken over the precious metal powder catalyst business from Ravindra Heraeus. This means that Ravindra Heraeus’ expertise, technology, and business relationships with catalyst cus-tomers have now been transferred to Evonik. The production facilities, however, have re-mained with the Indian company in Udaipur (India), which now produces precious metal powder catalysts for the Indian market and processes spent catalysts for Evonik.

For Eul, this precious metal management is an indispensable service when it comes to gaining a foothold in the region. This is espe-cially true as Ravindra Heraeus is an efficient partner—the precious metal company is

Horst Mauer at the catalyst production facility in Hanau.

Evonik also produces catalysts in Tsukuba (Japan), Americana

(Brazil), Calvert City (Kentucky, USA), and Shanghai (China)

Dr. Wilfried Eul (left), Head of the Catalysts Business Line, and Tim Busse, responsible for Catalysts in China

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a 1:1 joint venture between the world’s leading precious metal and technology com-pany, W.C. Heraeus, Hanau, Germany, and the Indian family-owned company, Ravindra Choksi, “By becoming incorporated in the lo-cal precious metal system we not only avoid time-consuming import processes but also don’t have to pay the high import duties for the precious metals,” explains Eul. This allows us to pass on considerable cost advantages to our customers.”

In the past, Evonik imported the catalysts for its existing Indian customers from Ger-many. Ravindra Heraeus will now also pro-duce these catalysts, making imports super-fluous. Evonik also provides its precious metal service in China, where the Catalysts Busi-ness Line offers recovery of precious met-als in close collaboration with Heraeus, thus closing the precious metal cycle in the coun-try. All things considered, with its precious metal powder catalyst production, Evonik is now present in both the established and emerging markets and is integrated into the local precious metal cycles. Apart from India and China, the company also has production sites in Hanau (Germany), Tsukuba (Japan), Americana (Brazil), and Calvert City (Ken-tucky, USA).

Technology platform expandedFor the activated base metal catalysts, the pro-duction location does not play such a deci-sive role. As they contain no precious metals, import duties and the costs that are associ-ated with them are not so important. “We

want to increase our technological lead in this area to further expand our market position,” says Eul. The company took a major step in this direction early in the year by acquir-ing the AMPERKAT catalyst business from H.C. Starck —a combination of special cata-lysts, production technologies, and technical application expertise. As a result, Evonik can now also produce activated base metal cata-lysts based on spray alloys and in tablet form—two highly specialized processes that offer additional freedom when designing high-performance catalysts. “Catalysts are not an off-the-shelf product; they have to be adapted especially for every individual synthesis,” ex-plains Dr. Stefan Wieland, head of produc-tion of the Catalysts Business Line. “ With the products and technologies from H.C. Starck we now have additional tools to produce the optimum catalyst for specific reactions.”

The newly acquired technology is cur-rently being transferred to Hanau, where

the Catalysts Business Line’s research cen-ter is also located. “Germany has a top posi-tion in catalysis research,” says Eul, “and we have benefited from this many times over the years through cooperation agreements.” This is the reason why development is also carried out here if the customers cannot find what they need in the existing product portfolio. In Hanau, a team of scientists and application engineers adapt standard catalysts to the cus-tomer’s specific synthesis or develop com-pletely new catalysts. If, on the other hand, the customer wishes to have a catalyst optimized for a specific application, a service team han-dles this on site.

Production, precious metal management, and comprehensive on-site service, research and development in well functioning net-works in Germany—everything that has stood the test of time in Evonik’s established for-eign catalysis locations in Japan, Brazil, and the USA is now also proving to be a success in China. The Catalysts Business Line regularly organizes seminars for customers in China to present its services and to get an idea of what Chinese companies want and need. “The re-sponse has been highly positive,” says Eul. “For this reason, I’m convinced that we’ve set the right course so that we can grow further from our own strengths when it comes to ca-talysis. At the same time, we’re also pursuing interesting opportunities to develop our busi-ness through acquisitions, joint ventures, and sales partnerships.” ASS

“Catalysts are pure resource and energy efficiency”Dr. Wilfried Eul

Catalysts influence the speed of a reaction although they themselves remain unchanged by the reaction. They are comparable to the robots in an automobile plant, which accelerate assembly significantly, but at the end of the process are essentially tools that don’t become part of the assembly. A chemical product likewise gives no indication that it was produced with the help of catalysts. Often a tiny amount of a catalyst is sufficient to affect the reaction of a large amount of starting materials. Roughly 90 percent of all chemical products undergo at least one catalytic stage during their production. Powerful catalysts conserve resources by increasing yield. They also help to avoid byproducts and reduce energy requirements. They are thus the key to achieving value creation that is optimized both economically and ecologically. Catalysts are also the most important tool for enhancing the sustainability and profitability of chemical production processes. Although catalyst research can look back on an extremely successful past, it continues to be a dynamic and highly innovative field of research that today contributes more than ever to forward-looking development. Important future challenges for catalysis lie ahead in very diverse areas. For example, they will have key roles to play when it comes to ensuring the supply of power, creating tailored materials, and improving existing processes

AMPERKAT® is a registered trademark of H.C. Starck GmbH, Goslar; License: Evonik Degussa GmbH. It is indicated in capital letters throughout the text.

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Diffusion Diffusion

Adsorption Desorption

Reaction

Catalyst surface

2 NO N2 + O2


Uwe Packruhn in the catalysis center in Hanau, where the Catalysts Business Line develops catalysts for customers the world over

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Christian Brüggemann (right) and trainee Benjamin Pietsch at the filter press, where the catalysts are separated from the aqueous suspension during production


The global networkAbout 50 International Sales and Marketing Program (ISAM) participants, graduates, supporters, and mentors gathered on August 27 in Hanau-Wolfgang for the second Networking Day. The theme of the day was “International business success with intercultural skills.” Folio spoke with many people who emphasized the importance of ISAM for the graduates and the Group

Eleonora Bobrova, HR manager in Moscow (Russia): “My job is to bring as much information and material as possible from Networking Day, in order to present the program to our team in Moscow. We have lots of talented young people in Russia who want to further develop their careers in a targeted way. ISAM offers them a great opportunity to start an international career”

Gerd Brand, Head of the Crosslinkers Business Line: “I worked for the Group for five years on assignments in Taiwan, India, and Japan, so I enjoy serving as a mentor. The ISAM candidates are all very motivated young colleagues with clear expectations and a solid sense of direction. That’s why I like to speak with them and why I am delighted when I can share my own experiences with them. ISAM is a very good program. How-ever, a little bit more diversity wouldn’t do any harm. In addition, it could take steps to ensure that employees from Eastern Europe and Asian countries apart from China are also included”

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Dr. Thomas Dieter, Managing Director of Evonik Degussa International AG in Zurich (Switzerland): “We just hired two ISAM partici-pants who recently completed the program. In an initial phase, they will provide customer support from home offices in England and Spain. ISAM helps us to recruit flexible, young people for this type of job”

Carlos Gil Mast, Corporate Development/Strat-egy: “Some 23 years ago my personal and pro-fessional development was enriched and ad-vanced by the program—especially during my first year at Degussa s.a. in Brazil. It made it pos-sible for me to pursue my international career in the Group—with assignments in Spain, Guate-mala, and the USA that lasted for years at a time”

Juan-Carlos Guzman, Manager of the Evonik plants in Granollers and Zubillaga-Lantarón, Spain: “ISAM is a great program, but it’s really a little too small for a Group of our size. While it’s true that the plants in Spain are purely production locations without sales functions, a stay here could be an interesting experience for ISAM participants”

Stefanie Reitz, ISAM participant, currently with the Coatings & Additives Business Unit in Pisca-taway (New Jersey, USA): “Living abroad, acquir-ing international experience, and gaining access to the global network as a career springboard—those were the main reasons for applying to take part in ISAM. To get ahead, you have to apply yourself, get involved, and have good communication skills”

Grace Chang, ISAM participant, currently with the Adhesive Resins Product Line in Marl: “This made my dream come true—to gain expe-rience in a multinational environment with other values and cultures. It wasn’t easy to become acclimatized to everyday conditions, but my colleagues are very helpful. There aren’t many programs like this in Taiwan, where I’m from”

The International Sales and Marketing Program (ISAM) is an on-the-job training program designed to prepare future sales and marketing mangers for their future responsibil-ities. Acquisition of intercultural and inter-national experience, personal development, gaining more knowledge and know-how, and getting to know different business units and functions are the main focal points of the program. ISAM is intended for young employees with very good language skills who have recently started their careers.

BACKGROUND

Mira Leiss, Human Resources and Organiza-tional Development Service Unit employee, responsible for the ISAM program since 2007: “The International Sales and Marketing Program (ISAM) ideally serves as a first step on the career path for young employees. We want to give the participants an opportunity to further their personal development”

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Dr. Thomas Haeberle, Member of the Board of Management of Evonik Degussa GmbH: “ISAM is the most international training platform we currently have in the Group. It is designed to serve the needs of young employees who are beginning their careers. That’s what makes ISAM one of the most important tools for diver-sity management at Evonik”

Heinz Günter Lux, Managing Director of Evonik Colortrend B.V. in Maastricht (the Nether-lands): “We accepted an ISAM participant in Maastricht, which sparked stronger interest in the program and greater demand for it at the lo-cation. I think ISAM is an important means of starting an international career, so it should get even more support from the top management”

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The German chemical industry’s new voiceOn September 24, following a vote held in Dresden, Dr. Klaus Engel was appointed the new president of the VCI (German Chemical Industry Association). He replaces Prof. Ulrich Lehner, a member of the Shareholders’ Committee of Henkel. It is Engel’s responsibility, as the new voice of the chemical industry—and as vice president of the Federation of German Industries (BDI)—to represent the sector’s interests and concerns in the public and political spheres. Folio examines the new president’s positions and describes the responsibilities and objectives of the VCI

The quotations from Dr. Klaus Engel are from a conversation with Dr. Thilo Bode from the Foodwatch organization, which appeared in a special publication of Evonik Magazine on the chemical industry.

“To be completely open and per-sonal here, I did a lot of soul-searching while I was trying to decide whether I should run for president of the German Chemical Industry Association. I have a pretty busy workday. I don’t suffer from boredom—we face a lot of big challenges at the company. In the end, I decided to make myself available because there are a lot of overlapping issues that are worth addressing. I’m taking on this re-sponsibility because I’m convinced we need to make it clear to the public that Germany must remain an industrial nation”

Founded 133 years ago, the Verband der Chemischen Industrie (German Chemi-cal Industry Association—VCI) has always

had a clear idea of its mission, as reflected in the body’s initial name. In the winter of 1877, a group of industrialists got together in Frank-furt am Main to set up the Verein zur Wah-rung der Interessen der Chemischen Indus-trie Deutschlands (Union for the Protection of the Interests of the German Chemical In-dustry). Today’s name may be shorter, but the goal is still the same. With some 1,600 mem-bers, the VCI represents over 90 percent of the German chemical industry and overarches 26 trade organizations—ranging from the Asso-ciation of German Gelatin Manufacturers to the German Pharmaceutical Industry Asso-ciation—of which most member companies are also affiliates.

The VCI has steadily grown in significance over the years. This mirrors the increasing im-portance of the chemical industry itself, which has experienced substantial global growth, particularly during the last decade (cf. graphic “At a glance”). After automotive, mechanical, and electrical engineering, it is the fourth-largest sector of Germany’s manufacturing

industry. Ten percent of German industrial output is generated by the chemical industry. Furthermore, almost all other branches of in-dustry depend on primary products from the chemical industry. Indeed, it is often innova-tions from the chemical industry that make German manufactured goods so successful in other areas.

At present, the chemical industry pro-vides around 60 percent of total investment in the research and development of new ma-terials. This makes it the most important tech-nology driver in German industry today. And this role is growing in importance. In recent years, expenditure on research and develop-ment in the chemical industry has risen by 23 percent. Even in the financial crisis, compa-nies declined to make savings in this area.

“We in the chemical industry are striving to reconcile economic, environmental, and social needs“

Without chemicals there would be no light-weight construction for the automotive in-dustry, no solar cells, no efficient bioenergy,

“We need to make it clear to the public that Germany must remain an industrial nation“

—as the new president of the VCI, Dr. Klaus Engel represents the interests

of the German chemical industry

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14 B A C K G R O U N D


and no batteries for electric cars—that’s how important the industry is to the economy as a whole. In order to secure the right conditions and a climate favorable to innovation in Ger-many, VCI also maintains an ongoing dialogue with legislative bodies.

In today’s world, that means having an of-fice not only in Berlin but also at EU headquar-ters in Brussels, where the majority of regu-lations now originate. The task of the VCI is to ensure that policy-makers on all levels are aware of the current concerns of the chemi-cal industry, what it needs to operate success-fully, and any political decisions—whether of a legislative, economic, or fiscal nature—that may affect it.

In concrete terms, this means that the var-ious expert committees at the VCI need to de-termine not only the current condition of the chemical industry but also the possible impact of, for example, a proposed piece of regula-tion regarding the activities and the employ-ees of German chemical companies. Given the fact that 420,000 jobs in the chemical industry are affected, it is vital to ensure that this kind of data informs the political decision-making process.

“Some of our laws here in Ger-many are now more restrictive and far-reaching than those in other EU countries. But we also have to state clearly that if we want to live in a no-risk society, we’ll end up sitting on the sidelines of the development of key future techno-logies and all the opportunities they offer. And it also means that people will have to sacrifice some of their prosperity”The informational work of the VCI is tar-geted not only at the general public, with pub-lications such as a brochure introducing the chemical industry, but also at member com-panies, for which it provides assistance con-cerning the proper implementation of legis-lation and regulations from both Brussels and Berlin. For example, the association provides extensive support for the observance of the extremely wide-ranging REACH regulations

on the registration, evaluation, authorization, and restriction of chemicals, which have led to a lot of questions and a substantial amount of extra work effort during the introductory phase. The VCI also helps by providing exten-sive informational materials.

Other services have long since become a vital part of the chemical industry. These in-clude the online database ChemCompass, which grew out of the former handbook for companies in the chemical industry and cele-brated its tenth anniversary last year. The VCI played a substantial part in turning this portal into an indispensable source of information for the industry. Today the database contains some 3,100 producers and traders together with over 170,000 products and services.

“We understand that regulation is necessary. The effect on people, the environment, and natural resources should be as beneficial as possible. I plan to work on that, but there’s no way I want PH

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Folio 10 | 2010


16 A T A G L A N C E

Folio 10 | 2010

Globalization of the Germany’s chemical exports rose worldwide between 1999 and 2008 and in

North America(USA, Canada, and Mexico)

€14.3 billion

in exports to North America

€45.7 billion

in sales by German chemical companies from

local production

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+70 %

+84 %+100 %

Latin America(excluding Mexico)

€ 3.5 billion

in exports to Latin America

€ 8.7 billion


local production

Africa€2.2 billion

in exports to Africa

EU-27€88.1

billionin exports within the

EU-27

€58.2 billion


local production

Main importerMore than 63 percent of Germany’s chemical ex-ports go to other countries in the European Union

(EU-27). In 2008, these exports were worth more than €88 billion. The main trading partner by far is the small country of Belgium, which imported €18

billion of German chemicals, followed by France and the Netherlands (€11.4 billion each), Italy (€9

billion), and the UK (€7.5 billion)

+124 %


17

Folio 10 | 2010

German chemical industry some cases more than doubled

German chemical products worldwideAlthough the Asian nations, particularly China, are visibly catching up, Europe and the USA are still

clearly the largest sales markets for German chemical products. Just how quickly China is increasing its hunger for chemicals is illustrated by the growth between 2004 and 2008. During these four

years alone, Germany’s chemical exports to the country doubled from €1.5 billion to €3 billion, thus surpassing the chemical exports to Japan (€2.8 billion)

+67 %

€2.4 billion


local production

Rest of Europe€14.7

billionin exports

to therest of Europe

€7.3 billion


local production

Asia€15.4

billionin exports to

Asia

€25.9 billion


local production

Australia/Oceania€1.0 billion

in exports to Australia/Oceania

€1.6 billion


local production

+95 %+137 %

CHINA, THE CHALLENGER

The most populous countries—China, Indonesia, and India—are among the fastest-growing chemical-producing countries in the world. China has shone with average growth rates of 12.8 percent between 2003 and 2008; for India this figure is 8.6

percent. Another sign of the growing importance of China is the fact that an increasing number of companies have opened their own research facilities there.

Chemical industry growth rates

0 %

4 %

8 %

12 %

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THE EXPORT RATIO IS GROWING

Chemical products from Germany are increasingly developing into a leading export item. With a growth rate of nearly 10 percent per year over the last four years, exports have increased more than twice as fast as the total sales of the German chemical industry.

Whereas less than every second metric ton was shipped abroad in 1990, exports now account for more than 80 percent of total production. As the world’s largest exporter of chemical products, Germany will continue to benefit in the future from the dynamism of the global chemical market.

Exports’ share of sales is increasing

20 %

40 %

60 %

80 %

1982 2008In

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Brochures and events: One of the tasks of the VCI is to present the chemical industry to the general public

“We need to reach a basic consensus on how we wish to shape the future“—as new VCI president, Dr. Klaus Engel is the main voice of the chemical industry for partners both inside and outside the sector

to create the illusion that we can maintain our prosperity, not to mention increase it, without con-suming resources and without risk. Making such a claim would belike promising to square a circle”In addition to its routine activities, the VCI, as an interest group, is also pursuing a long-term agenda. The overriding objective is best summarized under the heading “Strengthen-ing Germany As an Industrial Location”—the name of a campaign the VCI has launched to-gether with other associations and the Feder-ation of German Industries (BDI). This cam-paign comprises a bundle of strategies and measures that are designed to support in-dustry as the Number One driving force of the German economy. These strategies in-clude the call for an energy policy favorable to growth. For the chemical industry, as an en-ergy-intensive sector, growth is of particu-lar importance. In the area of legislative pol-icy, the VCI is lobbying to strengthen patent protection, so as to protect intellectual prop-erty rights and thereby promote investment in research. The major issues in the field of

fiscal policy are the need for a simplified and workable tax system and, more specifically, tax incentives for research. Research is also the main concern in a fourth area of policy—science and education—where the VCI sup-ports research cooperation but is also issu-ing warnings about an impending scarcity of skilled workers. Alongside the training op-portunities that are offered by the member companies themselves, the VCI is also pro-viding €10 million to promote basic research in chemistry and to fund dynamic chemistry teaching in schools.

“We need to reach a basic consen-sus on how we wish to shape the future. I am convinced that we can only achieve this goal through constructive dialogue with all the parties involved—businesses, governments, unions, churches, and of course NGOs“

As the voice of the German chemical industry, the VCI also has another long-term responsi-bility: to strengthen the industry’s image in

the public eye. In this area there is still a lot of work to be done. According to a study con-ducted by the Allensbach Institute in 2009, most Germans acknowledge the major sig-nificance of industry, with 97 percent con-sidering it “important” or “very important” to the country’s interests. However, 77 per-cent of those surveyed primarily associate the chemical industry with a feeling of risk. And well over half (63 percent) said they connect the chemical industry with environmental destruction.

The chemical industry has a harder time than other sectors, such as the automobile in-dustry, when it comes to creating a positive, likeable image of itself. That said, the facts are nonetheless on its side. Take safety and the environment: Regulations and standards in Germany are among the strictest world-wide, and accident figures are extremely low and have been falling for years. Take climate protection, where the chemical industry not only plays a major role in the development of climate-friendly technology in areas such as lightweight construction, thermal insulation, electric cars, and solar energy, but is also do-ing research in the fields of new biomass tech-nology; white biotechnology, which plans to replace fossil fuels with renewable sources of energy; and new energy storage systems. Meanwhile, the industry has also cleaned up its own act. While the world pondered emission targets, the chemical sector went ahead and re-duced its emission of greenhouse gases by 37 percent from 1990 to 2008, although output rose by 58 percent over the same period. Com-parative studies by the International Council of Chemical Associations (ICCA) show that production in Germany’s chemical industry is more energy-efficient than anywhere else in the world.

The VCI is working hard to correct the in-dustry’s skewed image in the public eye. And one of Engel’s first goals as the new president will be to increase its acceptance among the general population:

“It’s time we took a balanced view of the opportunities and risks associated with technology. This applies to nearly everything we do every day, but it’s especially im-portant in terms of the chemical industry. There are a great many things whose continued deve-lopment is worth fighting for“

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It isn’t very big. In fact, it’s only about 15 cen-timeters high and has a diameter of around four centimeters. The object is a little plastic

tube that is filled and packaged during the pro-duction of STOKO Skin Care in Krefeld. I first encountered the little plastic item in 1996. Five years previously, I had started my job as assistant foreman for the two-shift system at STOKO Skin Care. I’m a trained chemistry specialist, and today I am a technical manager, whose responsibilities include monitoring the packaging and filling technology used in the production of STOKO Skin Care. In this posi-tion, I see thousands of these little tubes pass by every day—on production lines, in car-tons, and on pallets. Depending on the prod-uct that is being filled, the number of tubes can vary significantly. My responsibilities also in-clude testing the pressure of the tubes. This test became necessary in about 1996, when we switched from filling aluminum tubes to tubes made of plastic. If a tiny quantity of the

product being filled managed to get into the seam of an aluminum tube, the seam wouldn’t burst because it was roll-folded. But a plas-tic tube can burst, because the seam is heat-sealed but not folded. Every 15 minutes we take a few tubes from the production line and test their impermeability.

The invisible glove inside a tube of hand cremeThere was a time when the tubes were still tested by hand. But you can hardly expect any-one to spend the whole day pressing on tubes, which is why a manually operated device came into use. As a result, it is now possible to ex-ert a specific amount of pressure on a tube. Today this is done by a machine that applies 3.6 bars of pressure on the tube for ten sec-onds. If the tube doesn’t burst, we know ev-erything is in good shape. The tubes are filled with ARRETIL, for example—also known as the “invisible glove”—a hand cream that pro-

Testing times for tubesIn Germany, “press on the tube” basically means “step on the gas.” That’s because “tube” is slang for a combustion engine’s carburetor jet. Volker Martini knows all about that—but the technical manager from Krefeld also knows the ins and outs of a little plastic tube

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tects against workplace substances such as oils and grease that are insoluble in water. You apply it before starting work and it protects you—well, pretty much like a glove! Auto re-pair workshop employees, in particular, use this cream a lot. And so do I. In my free time I like to tinker with cars. I used to prefer work-ing on Opel models, but today I’m much more interested in Volvos. Unfortunately, the ve-hicles are equipped with an increasing num-ber of electronic systems. But now and then a friend brings an old treasure around to my place. I study the mechanical workings of the car—the spark plugs, carburetor jets and pis-tons. Then I go to work, tightening bolts, sol-dering, and so on. And when I’m finished, it’s time to press on a tube again. SK

STOKO® and ARRETIL® are registered trademarks of Evonik Indus-tries AG or one of its subsidiaries. They are indicated in capital letters throughout the text.

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T H E T H I N G 19


“I’ve always got an ace up my sleeve”

My name is Bernd SchmittBusiness Unit: Evonik Power Saar GmbH Position: Team Manager Project Management/Corporate Affairs Nationality: German Age: 44 Place of residence: Uchtelfangen Marital status: Married with two children

How would you describe your home town, Uchtelfangen, in a single sentence to a colleague from a foreign location?It’s a town in the center of the German state of Saarland that’s surrounded by fields and forests, so it’s a great place to relax when I have time off.

What will you always remember about your first day on the job? My first trip down into a mine. I got very excited when we reached about 1,000 meters underground. The enormous dimensions of the underground passages can even accommodate a diesel locomotive. I had imagined it all being completely different.

What advice would you give to a trainee on his or her first day at the company?Act natural, be polite, and relaxed—and have an open and curious attitude as you go about your work.

What’s the most important lesson you’ve learned in life?That you can also learn things from children. As my children grew and matured, so did I.

Which lesson would you rather not havehad to learn? None, because I think all of our experiences, both positive and negative, are very important for changing our old patterns of behavior.

If you had €500 to spend as you like, what would you buy? I would take my family on a trip to an amusement park and round the day off with a good meal.

As a kid, who did you want to be like?Captain Kirk of the Enterprise. Even now, I’m still fascinated by the process of exploring new things.

You never leave for work without...?Talking to my family at the breakfast table.

Whenever you come home really tense, what is the fastest way for you to relax? Sometimes I go for a run in the woods, but usually I relax by spending time with my family.

What do you like best about the people you meet in other countries?I’ve only met people from other countries on my vacations, and so far they’ve all been equally friendly.

What is the last experience that left you speechless?The births of my children.

We all have our little extravagances. What’s yours?Magic. It gives me the possibility of making impossible things possible.

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