Dow Chemical took over Union Carbide well after the Bhopal tragedy in India occurred and therefore it was aware of the human sufferings caused  due to the tragedy and consequent  need to pay compensation [...]]]> Bhopal tragedy appears to have become ghost  for Dow Chemical, tarnishing its reputation built over several decades of hard work.

Dow Chemical took over Union Carbide well after the Bhopal tragedy in India occurred and therefore it was aware of the human sufferings caused  due to the tragedy and consequent  need to pay compensation to the victims

However, Dow Chemical appears to have taken  the stand that they should not be held responsible  for the liability of Union Carbide, which is unacceptable.

Whatever may be the legal wrangling on the issue, the fact is that Dow Chemical can not ignore the humanitarian aspect. It should pay the compensation amount as required by the principles of natural justice to the victims. If it would not do so, the loss of goodwill would be far more  significant than the money gain that it would get, by denying  the adequate compensation to the victims.

As a logical step, Government of India has now asked the Indian Olympic Association to protest against the sponsorship of Dow Chemical for the forthcoming Olympic Games, to the International Olympic Committee.

While Dow Chemical with it’s clout may over come this protest, tarnishing of it’s fair image can not be avoided. Dow Chemical should have more pragmatic and ethical approach to this situation. One more problem faced by the company is that Dow Agro Science of India has been black listed by Government of India for bribing the officials.

CBI has reported that during investigation, it has been established that De-Nocil Crop Protection Ltd., presently known as Dow Agro Sciences India, paid illegal gratification as well as pecuniary advantages to the government officials for expediting registration of three of its products. The registration was done between 1996 and 2001. Agro Pack, a product formulator of the company facilitated the payment of illegal gratification.

Dow Agro Sciences India P Ltd, Mumbai and Agro Pack have been black listed and excluded from purchase of pesticides made by the government for a period of five years vide order dated September 16.2010.

Dow Chemical  has to work out long term and fair public relation policies and double it’s efforts to convince the world community that it is not only committed to technology but also to ethical value system.

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In short, the IEA report has advised the governments to encourage renewables and nuclear power.  The economy of several countries in the world have been considerably uprooted due to the increasing cost of petroleum [...]]]> International energy agency released its  2011 “World Energy Outlook” report which shows pragmatic ideas in tune with the ground realities.

In short, the IEA report has advised the governments to encourage renewables and nuclear power.  The economy of several countries in the world have been considerably uprooted due to the increasing cost of petroleum fuel and coal which are depleting resources. Apart from the fact that these fossil fuels contribute to global warming, the fact is that the cost of power itself has become very high due to the increasing cost of the petroleum fuel and coal.

Nuclear power is advantageous in several respect due to its comparatively low cost of production and  it is a clean energy and not causing global warming and not generating green house gases.   The so called environmentalists have been doing a counter productive campaign against the nuclear power though, the overall safety records of nuclear power plants have been very satisfactory during the last several decades of operation.  While some accidents have taken place, they are far less compared to the many other accidents in industries , transport, coal mining etc.

The renewables such as solar power and wind power and biofuel have many obvious limitations,  there is no choice for the world other than going for nuclear power in a big way.  It is good that IEA has the courage of conviction to say this.

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Indiscreet capacity  creation are now getting rare  even in [...]]]> While there is a general impression that the global chemical industry are facing difficult times due to market constraints and over capacity in some cases,  a careful study would indicate that it is really getting fine tuned and we can look forward to better times.

Indiscreet capacity  creation are now getting rare  even in countries like China where project feasibilities are studied with great care and forward planning  and global perspective.   As the concept of globalization has come to stay, there is clear change in the approach of managements of global chemical industry to the global market. There is increasing emphasis on quality and cost optimization  and introduction of new grades and specifications in tune with the environmental issues and consumer expectations.  The regions and the companies which build technology lead are bound to dictate the trends in the coming years. Developing countries are also realizing this trend and are collaborating with the multi national companies in developed countries in appropriate technology search initiatives.

Obviously, those who do not see the trend and reposition themselves are likely to lose the market position before long.

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E-mail: dmm@ccdcindia.com

The EU is to warn that the era of cheap energy is over, according to a leaked document obtained by news agency Reuters that outlines how the bloc plans to accelerate investment in renewable energy.

The draft 2050 energy road map is to be published before the [...]]]> Contributed by: D M Mohunta

E-mail: dmm@ccdcindia.com

The EU is to warn that the era of cheap energy is over, according to a leaked document obtained by news agency Reuters that outlines how the bloc plans to accelerate investment in renewable energy.

The draft 2050 energy road map is to be published before the end of the year and is expected to reinforce the messages contained in the

2050 low carbon road map that was published by the European Commission in March and detailed how the bloc could cut emissions by between 80 and 95 per cent by mid-century.

Reuters reported that the latest draft reveals plans for a rapid shift away from fossil fuels and towards renewable energy sources, predicting that by 2050 renewable energy will account for between 55 and 97 per cent of total energy generation.

Mirroring the stance of the UK government, the draft document maintains that some investment in fossil fuels infrastructure remains necessary arguing that “maintaining a foot in the global oil market and keeping domestic refineries even when production and consumption is falling at home is important to the EU economy and security”.

It also claims that gas can provide a valuable bridging fuel through the 2030s as large-scale renewables projects come online, and hedges its bets on shale gas by arguing more research is required. However, it does predict that demand for coal should fall drastically over the coming decades.

Reuters reported that the leaked document acknowledges that energy prices across the bloc will rise over the next two decades before then stabilising, although it notes that prices would climb regardless of whether member states invest in renewables or new carbon-intensive infrastructure.

It predicted that energy costs, including transport fuel, could account for 15 per cent of average household income by 2030.

Significantly, the document also notes that the long-term plans are dependent on an international agreement that ensures other large economies continue along a similar path.

 ”If coordinated action on climate among the main global players fails to strengthen in the next few years, the question arises how far the EU should continue with an energy system transition orientated to decarbonization,” the report stated.

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Obviously, specialty chemicals is an area where Singapore [...]]]> Even  with little space and no natural gas or crude oil production, Singapore have gone in an imaginative way to promote massive petroleum refineries and  petro chemical projects. While this is an admirable initiative and forward planning , the fact is that Singapore’s strength lies elsewhere.

Obviously, specialty chemicals is an area where Singapore can forge ahead in much more impressive way and become a trend setter and role model for other smaller countries. Specialty chemicals refer to the chemicals that are produced in smaller volume terms and with higher value and where there are technology  intensity  and penetration issues.

To excel in the field of specialty chemical, strong research based and R & D development capabilities are required . Specialty chemicals  provide opportunities for setting up versatile production facilities that have possibility for the production of multiple products. It would not occupy large space and would generate little gaseous, liquid or solid effluent.

Specialty chemicals represent challenge and opportunity and Singapore has all the capability to reap the benefits in this area.

The success of venture in the field of specialty chemicals require very careful selection of combination of products as well as building up of excellent and appropriate R & D infra structure. In the long run, the benefits that would accrue to Singapore due to the focus on specialty chemicals would be far higher than its massive petro chemical projects on which Singapore is now focussing in a big way.

Nandini Consultancy can help in identifying appropriate specialty chemicals for focus in Singapore.

Please contact info@nandinchemical.com

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India has been registering impressive growth in GDP and this positive trend is likely to continue.

In view of steady industrial [...]]]> In recent times, India has become attractive destination for multi national companies as well as global trading houses for setting up chemical projects, trading activities and for out sourcing research and development functions.

India has been registering impressive growth in GDP and this positive trend is likely to continue.

In view of steady industrial and economic growth, the demand and  import of several chemicals and allied products are rapidly increasing in India.

Import level of a few products in India are given below, as an example :

While there are various issues faced by the country, as in the case of several other countries , India is tackling the issues with considerable foresight and vision. Therefore, the investment and trade opportunities in India remain excellent and can  be well exploited.

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Leading chemical industries are realizing the importance of developing technologies to achieve [...]]]> With the global chemical industries now passing through a period of uncertainty due to increasing energy costs and the demands to meet the ecological standards, there is sort of reluctance to create capacities for several chemicals, particularly speciality chemicals and intermediate chemicals.

Leading chemical industries are realizing the importance of developing technologies to achieve cost  and process optimization that would ensure that the price of chemicals would stay within the purchasing power capability of large segment of consumers and user industry sector. While there have been many successful R&D efforts in this regard, there is still reluctance to invest in setting up projects based on such developed technologies.

This has created a huge win win situation for both the chemical industries with successful product development efforts and contract manufacturers who have the versatile facilities to make products according to the needs of the clients.  As a matter of fact, we see a situation today where several well established chemical industrial units are converting themselves as contract manufacturers to meet the need of the time and exploit the emerging opportunities.

Nandini Consultancy Centre has now prepared a comprehensive directory on Global Contract Manufacturers and Custom Synthesis Units to meet the need   of the time. More details on this directory are available from www.nandinichemical.com

Also, mail can be sent  to   info@nandinichemical.com   for more details on this important directory of Global Contract Manufacturers and Custom Synthesis Units.

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Now, the [...]]]> With huge consumption power on the one hand and skillful implementation of proactive plans and programmes, China has now emerged as the most important location for chemical industries in the world. Nobody involved in chemical industry in any part of the world can afford to ignore the market and developments in China.

Now, the big multinational companies and the governments in America and Europe as well as in Middle East countries have acknowledged  the strength of  China. These large multinational players are no more targeting the investors and consumers in China in competition with the Chinese companies but are positioning themselves as partners with Chinese companies. 

At this stage, it is very important for all those involved in the chemical industry around the world as well as the economists and policy planners to understand the trends and happenings in chemical industry in China and the emerging scenario in China in the coming years. 

Mr. Swaminathan Venkatraman, Director, Nandini Consultancy (S) Pte. Ltd. , Singapore has now brought out an investigative publication based on extensive in depth study and analysis on happenings in the chemical industries in China. This publication has been edited keeping the need of the global chemical industry in view. 

Please contact info@nandinichemical.com  for more details on this important publication.

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