executive summary - essenscia · executive summary 1. ... pipelines offer a fast, efficient, cheap...
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Executive summary
1. Belgium is world-class for chemicals and plastics
2. Why is Belgium so attractive for this industry?
• Belgium hosts the second world cluster for chemicals and plastics
• Belgium, a unique logistical platform in the heart of Europe
• Strong expertise for product and process technology
• Highly skilled labour force available
• High R&D-expenditures directed towards sustainable innovation
• Attractive tax incentives for foreign investors
• Supportive attitude by the Government
3. Belgium is building a future of sustainable chemistry
• Sustainability challenges will remain top of our agenda
• Top-end innovation will require our world level capabilities for R&D and production
• Industry consolidation will reinforce a winning cluster like Belgium
2
A long tradition of world renowned scientists
Leo Baekeland (1863-1944)
Marc Van Montagu (1933- )
Ernest Solvay (1838-1922) Lieven Gevaert (1868-1935)
Christian de Duve (1917- 2013)
3
The Belgian chemical and plastics industry
is world-class
The evidence
4
Belgium is the n°1 chemical country in the world
on a per capita basis
5 5
0
1000
2000
3000
4000
5000
€ Sales of chemicals and plastics per capita (2013)
Source: Feri
Three-quarters of the world’s top chemical
companies have chosen to invest in Belgium
6
11 of the top 15 chemical companies have production sites in Belgium
Production plant in Belgium
6
0
20
40
60
80
100
Top chemical companies (2013 sales)
Source : ICIS Chemical Business, 8-14 Sep 2014 * Quadrant EPP Belgium & Quadrant CMS
in billion $
The share of the chemical industry in Belgium is
even bigger than in Germany
Share of the Belgian chemical industry in the total economy is 1.5 time bigger
than the average share of the sector in the EU
7
0%
1%
2%
3%
4%
5%
6%
Share of chemicals & plastics in the total economy*
Source: SBS (Eurostat), 2011 figures; calculations essenscia Based on value added at factor cost *Total business economy; repair of computers, personal and household goods; except financial and insurance activities
0% 5% 10% 15% 20% 25% 30%
Printing inks
Synthetic rubber
Ethylene
Washing & cleaning preparations
Industrial gases (Nitrogen,Oxygen, Argon)
PK Fertilizers
PVC
Propylene
Lubricating & mineral oil additives
Biaxially orientated PP films
Polyurethane (PU)
Polypropylene (PP)
PVC Floor, wall, ceiling coverings
High-density polyethylene*
Share of Belgium in total EU-production
Belgium is the dominant player for a wide range
of key chemicals and plastics in Europe
Source: Prodcom (based on production sold)
* For HD-PE, Belgian production data are confidential. Based on production capacity (source: Chemical Week)
8
Chemicals and plastics exports contribute
increasingly to the Belgian standard of living
Chemical trade balance increased by nearly 50% in 10 years
9
12.5
18.4
0
2
4
6
8
10
12
14
16
18
20
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
in billion € Trade balance (export - import)
Chemical, petrochemical and plastic products*
All products Belgium **
Sources: National Accounts Institute/NBB according to the communautarian concept *Harmonized System Sections VI+VII excluding pharmaceuticals (chapter 30) ** Chapters 01-99: all products
Why is Belgium so attractive for
this industry?
The reasons
10
Source: Flanders Port Area
First class availability of raw materials thanks
to 3 major seaports
Cargo handling – Ports Northern Europe*
Port Country 2010
(mio metric
tons)
Rotterdam NL 430
Antwerp B 178
Hamburg D 121
Amsterdam NL 91
Le Havre F 70
Bremen D 69
Zeebrugge B 50
Duinkerken F 43
Ghent B 27
Kortrijk
Oostende
Hasselt
Mons Charleroi
Namur
Zeebrugge
Ghent
Liège
Antwerp
Brussel
Bastogne
11
Source: Port of Rotterdam
* Range Le Havre - Hamburg
The port of Antwerp hosts the largest chemical
industry in Europe
Source: National Bank of Belgium, Havenmonitor; 2012 figures * Rotterdam-Rijnmond
The industry within the ports of Antwerp and Rotterdam
12
59% 38%
0
1000
2000
3000
4000
5000
6000
Port ofAntwerp
Port ofRotterdam*
Value added
in mio €
chemical industry other industries
48%
23% 0
5000
10000
15000
20000
25000
Port ofAntwerp
Port ofRotterdam*
Direct Employment
Jobs
chemical industry other industries
Pipelines offer a fast, efficient, cheap and ecological supply chain
Source: EPCA, Results of the Think Tank Sessions, August 2007
First class availability of raw materials thanks to
the central location in the Western European
pipeline network
13
Belgium offers access to 80% of the European
purchasing power within a 500 miles radius
14
Source: European Distribution Report, Cushman & Wakefield, 2008
The Belgian logistics platform offers a competitive
differentiator for the chemical industry
Regions* Ranking*
Liège (Belgium) 1
Limburg (Belgium) 2
Hainaut (Belgium) 3
Nord-Pas-de Calais (France) 4
Namur (Belgium) 5
Luxembourg (Belgium) 6
Alsace (France) 7
Oost-Vlaanderen (Belgium) 8
Antwerp (Belgium) 9
Arnsberg (Germany) 10
Source: European Distribution Report, Cushman & Wakefield, 2010
* NUTS-2 definition
Considering costs, transport system, accessibility, supply, labour and know-how
15
Best locations for logistics in Europe
Storage terminals and distribution platforms at the
service of the chemical industry in Belgium
16
• Tailor-made global logistics solutions for chemicals
• Logistical operators have built up considerable know-how in serving the chemicals
industry.
Distribution platforms
Gateway platforms Production Support Platforms
Source: Katoen Natie
On-site terminals
Further investments in logistics infrastructure
will secure our pole position
The “Combinant” project
• JV BASF Antwerp – Hupac – IFB
• New multimodal terminal (road-rail)
• Open for third parties
• Investment of 29 million euro
• With support from the Flemish Government and
the European Fund for Regional Development
Objectives
• Avoid impending congestion on the road
• Daily saving 10 km traffic jam
• 150,000 containers transfers from road to rail
yearly
• Yearly reduction of as much as 30,000 t/CO2
emissions
• Operational since March 2010
Railway connections
17
The high level of integration and diversity across
the value chain is unique in the world
Source: EPCA, Results of the Think Tank Sessions, Aug 07
Synergies in energy, process integration and logistics offer world class cost effectiveness
RAW MATERIALS FEEDSTOCKS BUILDING
BLOCKS COMMODITIES INTERMEDIATES
FINAL
PRODUCTS
Methane / refinery
residue Synthesis Gas
C2-C3 / Naphtha Ethylene
PE, EDC, VCM
Ethylene oxide
PVC
Glycols, EVOH, Ethyl
NBO, Glycol Ethers
Polymers, EPDM,
Copolymers
C2-C3 / Naphtha Propylene, propane Polypropylene
Propylene oxide,
Acrylic acid
Polymers e.g.
Polyurethane
Refinery off-gas /
Naphta Mixed C4 Butadiene Polybutadiene
Acrylonitrile,
Butadiene, Styrene
Naphtha Benzene, Toluene
Cyclohexane,
Caprolactam,
Aniline
BPA, Nylon 66, MDI Polycarbonate,
Polyurethane
Naphtha Mixed Xylenes O, P-Xylene PA, PTA PET
Chlorine, NaOH EDC, Phosgene VCM PVC, MDI,
hypochlorites
Plastics,
polyurethane ,
bleach
Natural gas / Crude
Oil / Condensate
Natural gas / Crude
Oil / Condensate
Natural gas / Crude
Oil / Condensate
Crude Oil
Crude Oil
Crude Oil
Sea water / Brine
C1
C2
C3
C4
C6
C7,8
Cl
Polyols, SAP
Ammonia, Nitric Acid Urea, AN, CAN, UAN Fertilizers
Methanol Formaldehyde Glues, Resins
Ship, pipeline, barge
Pipeline, barge, rail
Rail, road
Mainly road
items are produced in the cluster 18
Social
concertation
between
employers and
trade union
* Study by Prof. L. Sels (University of Leuven)
High employee satisfaction compared to other industries
• Low intersectoral mobility*
Limited number of strikes
• 0,12 days / year per
employee
Investment in human capital
(training) funded by employers
and employees
• 2 dedicated training centres:
ACTA and Cefochim
Constructive social relations are a long-time
tradition in the Belgian chemical cluster
19
Highly skilled labour force ensures world-class
technical expertise and operational excellence
Source: World Economic Forum, Competitiveness Report, 2013-2014
Mean
(out of 148
countries)
Top
(Japan)
Production process sophistication: use of the world best’s and most efficient process
technology (score from 1 to 7; 1 = labour-intensive methods or previous generations of process
technology, 7= the world’s best and most efficient process technology)
3 4 5 6 7
3.9
4.5 5.8
6.5
20 20
Operational excellence also leads to high safety
at work
0
1.000
2.000
3.000
4.000
5.000
6.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Chemical industry Belgium
Chemical industry EU15
Manufacturing Industry EU15
Standardised incidence rate of accidents at work (per 100000 workers)More than 3 days lost (4 days absence or more)
Source: Eurostat
21
Operational excellence delivers world-class
energy efficiency
22 22
220
230
240
250
260
270
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
PJ/year
Energy consumption at 2012 production levels
World top according to benchmarking covenant
Belgium (Flemish Region, at 2012 production levels)
Source: Benchmarking Committee Flanders (annual report 2012)
Attractive tax incentives increase financial returns
on capital intensive and R&D investments
Withholding tax
exemptions
Tax rulings
with
emphasis for
multinationals
Special
tax regime for
expatriates
No capital duty
VAT grouping
R&D tax
incentives
Notional
Interest
deduction
Belgian tax
incentives
23
80% patent income reduction (maximum tax is 6.8%, lowest in the EU)
80% exemption payroll withholding tax for scientific researchers
Refundable R&D tax credit system
Increased investment deduction and flexible depreciation rules for R&D
Tax-free return on qualifying equity
• Exchange of information, knowledge and experience between industry, regulators and service providers
• Coordinate communication throughout the supply chain
• VLARIP and WALRIP: two support tools for SME’s
REACH: Registration, Evaluation and Authorisation of Chemicals
CLP: Classification, Labelling and Packaging of substances and mixtures
REACH
The Belgian chemical industry has a unique
network to implement REACH & CLP
essenscia
working
groups
Belgian
authorities
Company European
authorities
Mentors
24
At regional level (Flanders)
• Round table on chemical industry by the Flemish Minister of Economy (started
in 2005)
• Recognition of the chemical industry as a strategic sector in Belgium
• focus: innovation, competitiveness, infrastructure & logistics and social
acceptance of the industry
• 12 action points
At European level
• High Level Group on Chemicals initiated by the European Commission (2007-
2009)
• 22 recommendations
At Belgian level
• High Level Group for a sustainable chemical and plastics industry in Belgium
initiated by the Prime Minister (2012- )
The authorities in Europe and in Belgium actively
support the chemical industry
25
Source: Belspo, 2011 figures
* Intra-mural expenditures
Belgian industrial R&D-investments
Company R&D-
expenditures*
(mio €)
R&D-personnel
(headcounts)
Pharmaceuticals 1708 4199
Chemical, petrochemicals and plastics 718 3506
Electrical equipment 319 3365
Machinery 256 2474
Telecommunications and electronics 169 284
Motor vehicles 168 901
Metal industry 166 924
Food & beverages 146 1526
High R&D investments prepare the chemical and
plastics industry for top-end innovation
26
• Total Petrochemicals Feluy: the largest R&D center of the Total Group
• Dow Corning: European headquarter is established in Belgium, Seneffe
• Procter & Gamble: European Research Centre in Brussels is a global business unit for
Home & Fabric R&D
• Solvay: Research & Technology – Brussels Center, the main R&D center of the group
• Recticel: International Development Centre in Wetteren
• Agfa-Gevaert: important R&D activities in Antwerp
• Huntsman: European headquarter & R&D center in Everberg
Worldwide technical competence centers in the cluster of Antwerp
• BASF Antwerp for MDI
• Evonik-Degussa for methionine
• Bayer for Makrolon
Major European R&D centers in Belgium:
a few examples
27
R&D-expenditures
Source: essenscia – survey amongst member companies
Provisional data 2013
• Continuous increase of R&D-expenditures
• Innovation is a key development factor for the sector in Belgium
R&D-expenditures
Chemical, plastics and life sciences industry in Belgium
1,89 2,00
2,17 2,28 2,32 2,34 2,29
2,46
2,72 2,75
3,09
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
In billion euro
Investments in the chemical industry in
Belgium 2013-2014 (i)
29
BASF Antwerpen – Antwerp
Butadiene extraction plant
Evonik – Antwerp
New plant for the production of shrimp
feed additives
INEOS Oxide – Zwijndrecht
Expansion of ethylidene
norbornene (ENB) unit
Indaver – Zwijndrecht
Heat and steam network Air Liquide – Lillo
New carbon monoxide production
unit
Chevron Phillips – Tessenderlo
Expansion of H2S synthesis-
unit and new control room
30
Cargill – Vilvoorde
New pilot plant for the European
research centre
Investments in the chemical industry in
Belgium 2013-2014 (ii)
Praxair – Antwerp
New air separation plants &
extension pipelines
Ferro – Antwerp
New production unit for
phthalate free plasticisers
Surface Chemistry (Akzo Nobel
Chemicals) – Mons
Relooking incinerator reduction of
NOx emissions
Dakota – Nazareth
New cryogenic micronisation
line
Alcon – Puurs
Expansion of production lines
31
Investments in the chemical industry in
Belgium 2013-2014 (iii)
Kuwait Lubricants – Antwerp
Blending facilities and additional storage
capacity for lubricants
Yara – Tertre
Modernisation
ammoniac unit
GSK Vaccines – Wavre
Building for the production of clinical lots and
start of expansion projects Pa and IPV
Nomacorc – Thimister-Clermont
Extrusion line synthetic wine
corks
Baxter Bioscience – Lessines
Installation and qualification of an
aseptic filling line under isolator
Bayer MaterialScience – Antwerp
New steam boilers
32
Investments in the chemical industry in
Belgium 2013-2014 (iv)
Kronos Europe – Ghent
New energy efficient line for the filtering
and drying of pigments
Revatech – Engis
Building of equalisation
basins wastewater
treatment
Libert Paints – Ghent
New production and R&D site
Christeyns – Ghent
New European
distribution centre
MaSTherCell – Gosselies
Building of clean rooms for the
production of ATMP
Total – Antwerp
Modernisation of the refinery
& chemical production
platform
Government funded competence centers foster
talent and innovative solutions
• Cori stimulates scientific and technological development in the coating
industry.
• VKC (Vlaams KunststofCentrum) is the Flemish technological centre of
expertise for Plastics Processing.
• EMRA (Environmental Materials Research Association) gathers the
Environment, Materials and Process expertise and capabilities of 6 Research
Centres.
• The Ghent Biotech Valley brings together world-class expertise in the fields
of medical, industrial and agricultural biotechnology.
33
• Education Covenant between essenscia, trade unions and associations of
secondary schools
• Aim: encourage youngsters to choose for scientific branches
• System of cooperative education
• masters degree in analytic science combining high school education with
practical work experience in companies on a 50/50 basis
• professional bachelor degree in process techniques combining high
school education with practical work experience in companies on a
20/80 basis
• Chair Master after Master programme on process safety engineering at the
University of Leuven
• First chair between a sector federation (essenscia) and a university
• Aim: offer a high EU-level study program in process safety engineering
A strong collaboration between the Belgian
chemical industry, schools and universities
34
Belgium is building a future of
sustainable chemistry
35
The world is facing important challenges in the use of energy, natural
resources, and the provision of food, water and health for its population.
Chemistry, Materials and Life Sciences are essential to making the world's
development sustainable. Our innovative research is crucial to the development
of new products, applications and services. Our industry is central to a
successful future and to improving everyone's quality of life.
36
Mission statement
The Belgian chemical industry aims at becoming
the sustainable chemical cluster in the world
Examples of high-tech, sustainable innovations in
Belgium (i)
• The MTO/OCP pilot plant at Total Petrochemicals (Feluy)
• The Pilot PLA plant , a JV Total Petrochemicals / Galactic for the production of bioplastics
from renewable origin
• Specialty chemicals company Lanxess develops solutions that enable “Green Mobility”
• Indaver, a leader in sustainable waste management
• LIPAMAX : enzymatic treatment for fat removal developed by Realco
• Proviron’s ProviAPTTM, harnessing the potential of microalgae
• Evonik’s first production plant AQUAVI® Met-Met dipeptide for shrimp aquaculture
37
Examples of high-tech, sustainable innovations in
Belgium (ii)
• Nanocyl , a leading supplier of Carbon Nanotubes Technology (CNT)-based products
• Derbigum, the specialist in highly reflective roofing membrane
• Recticel, a worldwide leader of a wide range of innovative polyurethane foams
• Soudal, world expertise in sealants, PU foams and adhesives
• LiFePO4, a revolution in battery-technology by Prayon
• Solvay investing in the Solar Impulse project, a solar airplane
38
The MTO/OCP pilot plant at Total Petrochemicals
in Feluy – a world first
• The pilot plant combines the methanol-to-olefines process (MTO) and the Olefin
Cracking Process (OCP)
• Benefited from the expertise in process
engineering at the Feluy Research Centre
• Diversified feedstock for making petrochemicals
• Higher yield of good-quality light olefins
39
Futerro, a pilot PLA plant for the production of
bioplastics from renewable origin
• JV Total Petrochemicals / Galactic to develop a production technology for PolyLactic
Acid (PLA) bioplastics of renewable vegetable origin with the financial support of the
Walloon Region. Lactic acid is obtained from the fermentation of sugar or starch.
• On stream since 2010.
• 1,500 tonnes/y
• PLA bioplastics have many applications
• Recovering and Recycling PLA: the most environment friendly option
ECO-Benefits (points)
• ECO-Benefits are based on the standard eco-indicator 99 scores
(Taking in account elements such as ecotoxicity, fossil fuels, climate change,…)
3 1020
160
0
20
40
60
80
100
120
140
160
180
200
Composting Incineration Anaerobic digestion LOOPLA™
Endless
cycle
PLAL-Lactic Acid
Source: Galactic
LOOPLA™ : « Cradle to Cradle » concept
40
Specialty chemicals company LANXESS
develops solutions that enable “Green Mobility”
41
• “Green Tires” combine a number of advantages
• Lightweight plastics are used in engine applications, door
structures, front ends,… Weight reduction by 10 to 50%.
High-tech polymerization world-scale facility in Antwerp,
Belgium, started in July 2014, with annual capacity of
90,000 tons. Processed in global network.
Indaver, a leader in sustainable waste management
• World class treatment installations for commodities and complex hazardous waste
• Highly specialised in waste management from the chemical industry
• “Total Waste Management” projects
• Focus on energy and material recovery
• Waste management: 3 million tons per year
50% recovery of energy (steam, electricity) from waste for own installations, neighbouring
companies and 140,000 households
40% sustainable re-use of waste materials (PMD, mercurial waste, …).
Between 80% and 100% of recycling efficiency
10% safe storage and neutralisation via landfilling, physico-chemical processing and waste
water treatment
Aiming at the lowest possible CO2 footprint and environmental impact
Source: Indaver
42
43
LIPAMAX : enzymatic treatment for fat removal
SCREENING
&
DEGRITTING LIPAMAX
BIOLOGIC
TANK
SECONDARY SLUDGE PRIMARY SLUDGE
DECANTATION WASTE
WATER
• Transformation of lipids in fatty acids
• All the fatty acids are reinjected in biologic tank
• Full recycling of fat in wastewater treatment plant
• Savings of 73,000 T/year of fat disposal
• Savings on transport + no incineration → savings on greenhouse gas emissions
Proviron’s ProviAPTTM, harnessing the potential
of microalgae
• ProviAPT® is a highly efficient cultivation process which exploits fully all interesting
properties of microalgae
• Algae produced at Proviron’s pilot plant at Hooge Maay are applied
already in aquaculture (ProviFeedTM Nannochloropsis)
• Use in feed and food applications, as nutritive supplements and in cosmetics are
investigated through collaborations in the frame of Flanders’ Food and FISCH projects
• Algae can be envisaged as a sustainable substitute for fossil oil as an energy source or
as a source for platform chemicals for biochemicals or biopharmaceuticals
44
Evonik starts construction of the first
production plant for methionine dipeptide
AQUAVI® Met-Met
a feed additive specially developed for shrimp
in aquaculture
consumers benefit from improved food quality significantly reduces the consumption of fish
meal in shrimp aquaculture.
lowers feed costs
environment is less polluted reduces the strain on fishing grounds
worldwide
helps water purity by reducing the amount
of waste produced by the animals and nitrogen
output into the environment
first dipeptide in the world to be produced on
commercial industrial scale and be
economically viable for use in animal nutrition.
Nanocyl, a leading global supplier of Carbon
Nanotubes Technology (CNT)-based products
• Carbon Nanotubes are the most electrically conductive additives available today on the
global market.
• The Nanocyl patented process was originally developed at the University of Namur by
Prof. Nagy and at University of Liège by Prof. Pirard.
• Examples:
Electronic packaging
Antifouling coatings
Thermoplastic body parts
Flame barriers coatings
46
Derbigum, the specialist in roofing membrane that
reduces the energy consumption of buildings
• DERBIBRITE is a highly reflective membrane which acts as a passive cooler to reduce
the energy consumption.
• DERBIPURE® is the first white roofing membrane with a base of organic raw
material, without the use of bitumen
• Thanks to a patented exclusive coating, DERBIBRITE NT and DERBIPURE®
reflect up to 80% of the sun's rays and therefore reduces the temperature in the
building by 5°C
• Increased return of solar panels
• Reduced costs for air conditioning
Source: Derbigum 47
Recticel, a worldwide leader of a wide range of
highly innovative polyurethanes
A unique chemistry for light stable polyurethane
• Combined with a patented spray technology
• For the production of dashboard skins & other interior
trim
• Revolutionary breakthrough in car interiors surfaces
• As a foamed material in top class intimate apparel,
“shaping the natural curves”
Insulation
• High insulation values of PU makes the construction of
passive houses possible.
• Collaboration with Wienerberger building a massive
passive house
48
Soudal - world expert in: sealants, PU foams and adhesives
for the construction, DIY and industrial applications.
A pioneering role in the development of new expanding, semi-flexible insulating
polyurethane (PU) foams that can be used easily to fill joints and gaps:
• Flexifoam - ready to use, elastic, one-component PU gun foam, provides
durable acoustic and thermal insulation
• Launched SMX - the first expanding foam without free isocyanates which is
harmless to consumers
The Soudal Window System offers a highly efficient installation of
window frames which leads to higher energy savings
also in passive houses.
49
LiFePO4 , a revolution in battery-technology
by Prayon
• A new generation of batteries allowing a maximum storage of energy within a
minimum amount of space
• Based on iron phosphate technology, enriched with bore
• The best solution for battery equipped cars, available as from 2010
• Patented technology in collaboration with CEA-Liten (Laboratory for new energy
technologies)
50
Solvay, main partner of the Solar Impulse 2 which
will soon circumnavigate the world without fossil fuel
• A symbol for innovation and sustainable development
• A springboard for advanced materials solutions and developments
• new lightweight materials to minimize weight and energy consumption
• new battery components with improved capacity and performance
• new films for encapsulation of the photovoltaic cells
Source: Solvay
51
Industry consolidation will reinforce the role of the
Belgian chemical clusters
• Europe is facing challenges: centre of gravity shifting toward Asia, US & ME
• Industry will readjust through further consolidation, process integration and
innovation
• The Belgian clusters generate smarter operations throughout the value chain
• maximization of synergies (energy, services, utilities)
• skilled workforce
• focus on sustainable chemistry
52
This presentation is supported by:
essenscia
Belgian Federation for Chemistry and Life Sciences Industries
Contact
Yves Verschueren, Managing Director
T +32 2 238 98 12 - [email protected]
Corine Petry, Head of Communication
T +32 2 238 99 12 – [email protected]
www.essenscia.be
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