THE ART OF CLEANING THE AIR / BYPRODUCT
Transcription
THE ART OF CLEANING THE AIR / BYPRODUCT
Issue 6 Oct. 2011 THE ART OF CLEANING THE AIR / BYPRODUCT SYNERGY IN A CONCRETE INNOVATION / PAINTING THE TOWN WHITE / BECKY, OUR RACING CHAMP TEL: +966 (2) 652 9966 FAX: +966 (2) 652 652 9933 EMAIL: info@cristalglobal.com WEB: www.cristalglobal.com C O N T E N T S 4 10 D E - P O L L U T IO N THE ART OF CLEANING THE AIR CristalACTiVTM technology is used to demonstrate a scientific art of making us all breathe easier. 12 15 CO L L A B O RAT IO N A team of researchers from Cristal Global and King Saud University wins gold at the 39th International Exhibition of Inventions. 28 SO C IA L RE S P O N S IB IL IT Y ALL IN THE FAMILY Our site in Stallingborough has a proud tradition of being part of the local community for almost 60 years. 24 Along the busiest roadway of Manila, which has the fourth MAS S AP P EAL most polluted air in BREATHING the world FRESH according AIR INTO FASHION to the World Health Photocatalytic clothing combines fashion and Organization, chemistry and has the potential to clean the air TM we CristalACTiV breathe. technology is used to demonstrate a scientific art of making us all breathe easier. C ristalACTiVTM photocatalytic technology PAINTING THE developed by Cristal TOWN WHITE Global is driving the The Urban Heat Island effect and how Cristal world’s first large technology offers exceptional performance in scalekeep public project that uses a helping citiesart cool. special paint formulation to clean noxious air pollutants. The project, called KNOxOUTTM Project: EDSA (Everyone Deserves Safe Air) consists of eight artworks each measuring about 1,000 sq.m., along Manila’s busiest roadway, which also has the acronym EDSA (Epifanio de los Santos Ave.). In IG a unique mix of art and S P OTL HT science, all of the artworks will use MEET BECKY, OUR TM Boysen KNOxOUT , the first air RALLY-RACING CHAMP cleaning paint in the world with TM CristalACTiV Becky Kirvan from ourphotocatalytic Stallingborough plant technology abilityin to is well on her waywhose to competing thereduce final URB AN P L ANNING BYPRODUCT SYNERGY IN A CONCRETE INNOVATION 18 depollution round of the World Rally Championship. Artist Bogie Ruiz works in Manila on the first large scale public art project in the CONSE RVAT IO N CREATING A NEW NATURE HABITAT IN HEALING 34 INTERV PATHS MEET world that IEW uses aWHEN special paint formulation clean noxious air pollutants AND STRETCH FOR 35 FRUITFUL YEARS 37 G LO B AL ECO NO MY AtoFADED SILVER LINING CRISTAL CRISTALGLOBE GLOBE- -October January2011 2011 Issue Issue64 1 5 e d i t o rr ii a l Issue 6 Oct. 2011 OUR GAME-CHANGERS W e are glad to note an increased participation by Cristal Global family members worldwide in this edition, a good part of which shows how the gamechanging achievements of our scientists, researchers, partners and marketers are helping usher in an anti-polluting, self-cleaning and a brighter world of assured fresh air outdoors, especially in the burgeoning cities of smog around the world. THE ART OF CLEANING THE AIR / BYPRODUCT SYNERGY IN A CONCRETE INNOVATION / PAINTING THE TOWN WHITE / BECKY, OUR RACING CHAMP PUBLISHER Cristal Global Corporate Communications P.O. Box 13586 Jeddah 21414 Kingdom of Saudi Arabia The articles also demonstrate the reach of our enabling technologies as we collaborate with like-minded institutions to innovate and prove that environmental responsibility can indeed be cost saving and sustainable as a business model. Our contribution towards raising environmental consciousness includes participation in an effort to popularize photocatalytic clothing. CRISTAL GLOBAL CHAIRMAN & CEO Dr. Talal Al-Shair PRESIDENT The underlying theme in all our endeavors is the combined talent, expertise and prowess of the many hundreds of our people working together diligently from different parts of the world as they pursue a shared ideal of making the environs and lives of the communities we operate in better by the day. Jamal Nahas EXECUTIVE COMMITTEE Abdalla A. Ibrahim, SVP Finance John E. Hall, SVP Business Development EDITOR Ramesh Balan editor@adelphicomm.com + 91 80 41162633 ASSOCIATE EDITOR Shom Seth DESIGN/ PICTURE RESEARCH Warren Hannington STUDIO C.H. Ajith COVER Laura Prager’s First Place photo from OhioASH I in the sites category of the Cristal Global 2011 Photography Contest 2 4 In striving to constantly better ourselves, we are very daring too. Becky Kirvan, Management Team Coordinator at our Stallingborough plant, who is preparing to contest in the final round of the World Rally Championship, Rally Great Britain, perhaps best exemplifies this trait. THE ART OF CLEANING THE AIR CRISTAL CRISTALGLOBE GLOBE --January October2011 2011 Issue Issue46 And as Dominic Manganaro, Director-Cristal Bemax, and Greame Stephen, Director-Pigment, Commercial R&D at Hendersen, reveal in an interview on what kept them with the company for the past 35 years, commitment to excellence and courage of conviction go back a long way at Cristal Global. While our net sales has soared in the third quarter, the global economy, nonetheless, remains in dire straits. To better prepare ourselves to determine what’s in store, we conclude with the precarious European debt crisis and a look at the various ways the scenario can unfold by the year-end. ❄ d er pe os p l l uo tni o s en AIL M • • M AIL As part of a continuing effort to better focus and improve Cristal Globe, we invite suggestions, clarifications and other comments from readers. Please send your comments by email to Berhan. Hailu@cristalglobal.com under the subject header ‘Cristal Globe Response.’ Cristal Globe is published quarterly. The Communications Team Really great stuff Along the busiest roadway of Manila, Omar Najjar, VP-Human Resources which has the fourth Cristal Global most polluted air in thefocus world according Like the articles and to the World Health Looks really good. I like the articles and focus. Organization, CristalACTiVTM Tom Van Valkenburgh, VP-Supply Chain technology isCristal usedGlobal to demonstrate a scientific of making ‘Many hands makeart light work’ us all breathe easier. Thank you very much for all the help and your patience. I think the final two articles are excellent thanks to your contribution. ristalACTiVTM “Many hands make light work.” photocatalytic I should also like to thank some of the staff here who helped me with the earlier years, particularlytechnology Peter Carter. C developed by Cristal Global is driving the Robert McIntyre, Director, Global R&D-Commercial, firstGlobal large Millennium Inorganic Chemicals,world’s a Cristal scale public art projectCompany. that uses a special paint formulation to clean noxious air pollutants. Impressive variety The project, called KNOxOUTTM Project: EDSA (Everyone Deserves Air)variety. consists of eight artworks Quite impressive – glad to Safe see the each measuring about 1,000 sq.m., Manila’s busiest roadway, Robert J.along Daniels, VP-Titanium Metals which also has Global the acronym EDSA ITP - Cristal US, Inc. , a Cristal Company (Epifanio de los Santos Ave.). In a unique mix of art and science, all of the artworks will use Commendable Boysen KNOxOUTTM, the first air cleaning paint inGlobe! the world with Yet another impressive issue of the Cristal Great CristalACTiV work on this one. The quality of the articlesTMisphotocatalytic commendable. technology whose ability to reduce Thanks for your effort on this. Mark J. Stoll, VP-Commercial Artist Bogie Ruiz works inCristal Manila onGlobal the first large scale public art project in the world that uses a special paint formulation to clean noxious air pollutants CRISTAL CRISTALGLOBE GLOBE- -October January2011 2011 Issue Issue64 3 5 THE ART OF CLEANING THE AIR 4 CRISTAL GLOBE - October 2011 Issue 6 d e p o l l u t ii oo nn Along the busiest roadway of Manila, which has the fourth most polluted air in the world according to the World Health Organization, CristalACTiVTM technology is used to demonstrate a scientific art of making us all breathe easier. C ristalACTiVTM photocatalytic technology developed by Cristal Global is driving the world’s first large scale public art project that uses a special paint formulation to clean noxious air pollutants. The project, called KNOxOUTTM Project: EDSA (Everyone Deserves Safe Air) consists of eight artworks each measuring about 1,000 sq.m., along Manila’s busiest roadway, which also has the acronym EDSA (Epifanio de los Santos Ave.). In a unique mix of art and science, all of the artworks will use Boysen KNOxOUTTM, the first air cleaning paint in the world with CristalACTiVTM photocatalytic technology whose ability to reduce Artist Bogie Ruiz works in Manila on the first large scale public art project in the world that uses a special paint formulation to clean noxious air pollutants CRISTAL GLOBE - October 2011 Issue 6 5 noxious air pollutants has been proven in several scientifically verified trials around the world. Like many Asian urban centers, Manila’s air is a health threat to its population. Metro Manila was cited in a 2005 World Health Organization report as having the fourth most polluted air in the world. A study by the World Bank and the Dept. of Environment and Natural Resources (DENR) estimated that breathing dirty air is responsible for 5,000 premature deaths in the metropolis. A study from the University of the Philippines College of Medicine found that over half of all medications sold in the country last year were for respiratory illnesses. Roadside pollution poses the biggest threat to human health, because of its high concentration so close to where we live and work. One of the main contributors to roadside pollution is nitrogen dioxide (NO2), a reddish brown smog precursor produced from vehicle emissions with serious health and environmental effects. “Air pollution in Metro Manila is dangerous, especially along major thoroughfares,” said Philippine Vice President Jejomar Binay, putting his touch on the Ganap artwork along EDSA. Looking on were Francis Tolentino, Chairman of the Metropolitan Manila Development Authority (MMDA); Boysen VP Johnson Ongking; and artist Bogie Ruiz. Said Dr. James Simpas, head of Urban Air Quality at the Manila Observatory, who presented data that showed that the average daily NO2 level near the Guadalupe MRT Station in 2009 was over four times the safe limit set by the World Health Organization (WHO) and the European Union: “There is little being done to mitigate this pollution and its health effects.” In a creative approach to addressing the air pollution problem, Boysen put up the country’s public artworks that simultaneously function as air purifiers. The key to transforming the artworks into air purifiers is the use of KNOxOUTTM, which uses photocatalysis to convert air pollutants like nitrogen oxides (NOx) into benign substances in an environmentally friendly way. The CristalACTiVTM technology used in KNOxOUTTM was developed by Cristal Global, the world’s second largest titanium dioxide (TiO2) producer and the global leader in using ultrafine TiO2 for air quality improvement. Variants of the technology have been in use as Boysen KNOxOUTTM is the first air cleaning paint in the world with CristalActivTM photocatalytic technology For earth-friendly coatings Cristal Global’s Stallingborough site has spent the past 10 years developing CristalACTiVTM for earth-friendly coatings that actively clean the air we breathe. After extensive research, development and testing into the products, they are now on sale in Europe and Asia. 6 CRISTAL GLOBE - October 2011 Issue 6 Philippine Vice President Jejomar Binay putting his touch on the Ganap artwork along EDSA. Looking on are MMDA Chairman Francis Tolentino, Boysen VP Johnson Ongking, and artist Bogie Ruiz. DeNOx catalysts for over 30 years in lowering NOx emissions in gas as well as diesel exhaust systems. On a KNOxOUTTM paint film, light energy activates the ultrafine TiO2, which then converts ordinary water vapor into free radicals that break down NOx that come into contact with the surface of the TiO2 particles. Because of its small size – 6,500 of the TiO2 particles can be laid end to end across the width of a human hair – a gram of the material has a surface area of a tennis court, and this large surface area promotes a high level of contact and activity with air pollutants. The NOx gas is converted into nitric acid, which is rapidly neutralized by alkaline calcium carbonate particle in KNOxOUTTM, producing harmless quantities of calcium nitrate, water, and negligible amounts of carbon dioxide and water. Calcium nitrate is water soluble and easily removed from the film, leaving a fresh surface ready to engage the next pollutant to come into contact with the film. Because the ultrafine TiO2 is merely a catalyst in generating free radicals, it is not consumed in the reaction, allowing KNOxOUTTM to continually clean the air as long as exposed to sufficient light. The air cleaning properties of KNOxOUTTM and CristalACTiVTM have been validated in several trials all over the world. A subsidiary of Cristal Global supplied the photocatalytic coatings used for a European Union funded project called Photocatalytic Innovative Coatings Applications for De-Pollution Assessment (PICADA), which did several small scale trials that showed that the technology could reduce levels of NOx. CRISTAL GLOBE - October 2011 Issue 6 7 The world’s largest air cleaning paint trial to date was done at a metro rail station along EDSA in 2009. The trial, which was monitored by the Manila Observatory and the Swedish environmental project management company Conexor, showed that the KNOxOUTTM painted on the walls of the station and surrounding area reduced NO2 levels by up to 20% in the area, equivalent to the NO2 emissions of over 30,000 cars passing by the station every day. A recently concluded trial in Camden, London verified by King’s College, showed decreases in NO2 levels similar to the Manila trial. A study in Europe by APHEIS (Air Pollution and Health: A European Information System) found that even very small cuts in pollution can benefit health, while a Harvard University study found that people living in cities where air pollution decreased in recent decades saw their life expectancy increase an average of five months as a result of cleaner air. “Every little bit counts in the fight against air pollution,” says Johnson Ongking, Vice President of Boysen Paints. “People have always known that air pollution wasn’t good for them, but they’ve felt hopeless in doing much about it.” “KNOxOUTTM is an empowering technology – it gives ordinary people the power to transform ordinary walls into air filters and actively fight air pollution,” added Ongking. “The artists for the EDSA project are creating some of the most beautiful air filters Pollutants (NOX) TiO2 H2O CO2 CaCO3 Ca(NO3)2 For earth-friendly coatings CristalActivTM photocatalytic technology, which is ultrafine titanium dioxide, (TiO2) absorbs energy from light and transforms ordinary water vapor into hydroxyl and peroxyl radicals at the surface of the TiO2. These free radicals, created in billionths of a second, become the reactive species that break down noxious air pollutants such as nitrogen oxides (NOx) that come into contact with the surface. Harmful NOx gas is converted to nitric acid that is rapidly neutralized by alkaline calcium carbonate particle in the paint, producing harmless quantities of calcium nitrate 8 CRISTAL GLOBE - October 2011 Issue 6 With UV light and moisture, KNOxOUTTM converts NOx-ious pollutants into harmless substances and negligible amounts of carbon dioxide and water. Calcium nitrate is water soluble and easily removed from the film, leaving a fresh surface ready to engage the next pollutant to come into contact with the film. Other pollutants such as sulfur oxides (SOx) are broken down in a similar process. A great advantage of this photocatalytic reaction is that ultrafine TiO2 acts as a catalyst that continuously generates free radicals as long as there is sufficient light, air and moisture. Additionally, this reaction gives the paint selfcleaning and anti-bacterial properties. Artists for the KNOxOUTTM Project: EDSA were chosen by curator TAO Inc. for their familiarity with communication through graphic means in outdoor spaces, and include the following: • Social Realist painter, graphic designer and political cartoonist Jose Tence “Bogie” Ruiz Asuncion “Baby” Imperial • Damien “Coco” Anne of the Manilabased graphic design studio B+C • Brisbane-based partners Alfredo and Isabel Aquilizan • Multiple award winning art department of the advertising agency in the world, but for the rest of us we can do our share for clean air by painting plain air filters all over the city.” The idea of empowering people to help clean the air was one of the major reasons the company chose to put up the artworks along EDSA, the site of the 1987 People Power Revolution where ordinary Filipinos gathered to oust the dictatorship of Ferdinand Marcos. “This EDSA project is about rekindling the spirit of people power to fight the problem of air pollution,” says Ongking. “Everyone who uses a motor vehicle is part of the pollution problem, and KNOxOUTTM makes it possible for all of them to now be part of the solution. After all, we all breathe the same air, and it’s our common responsibility to make sure it stops being harmful to us. At the very least, TBWA • France-trained painter and virtuoso printmaker Virgilio “Pandy” Aviado • Highly-regarded Japanese-American Neal Oshima who has lived in the Philippines for more than three decades • Dutch-Indonesian, London-based artist and curator Erika Tan, whose work is inspired by her interest in anthropology • London-based moving image architects Tapio Snellman and Christian Grou, who own the practice named Neutral, founded in Tokyo. it’s now possible to take out the same amount of NOx that we put in the air.” “If you about drive 20 kilometers daily on an average modern car that produces .15 grams of NOx per km, you’d be producing about 3 grams of NOx per day,” adds Ongking. “You could potentially erase that NOx footprint by painting 10 square meters of a wall with KNOxOUTTM on a busy street. It would take about 10 mature trees to take out the same amount of NOx.” Each of the artworks for the project will be a lot bigger than that. In fact, at 1,000 square meters each, they will the largest public artworks ever in the country. The project is being done in cooperation with MMDA. It is also the first curated public art project in the country. ❄ CRISTAL GLOBE - October 2011 Issue 6 9 m a s s aa pp p e a l A FIELD OF JEANS BREATHING FRESH AIR INTO FASHION Using CristalACTiV TM solution, artist and designer Professor Helen Storey and chemist Professor Tony Ryan are fashioning a wave of everyday participation in helping clean the air by just jumping into your photocatalytic jeans – slim, straight, relaxed, classic or standard. 10 CRISTAL GLOBE - October 2011 Issue 6 P hotocatalytic clothing is a radical project that brings together the worlds of fashion and chemistry with the potential to clean the air we breathe. Cristal Global has already proven the technology works within major city environments to help meet the stringent legislations and directives on reducing air pollution. Using fashion is quite different and by employing Cristal Global’s CristalACTiVTM technology in this new way, the project seeks to explore how clothing and textiles can be used as a photocatalytic surface to purify air. It is the brainchild of artist and designer Professor Helen Storey and chemist Professor Tony Ryan – people from very different worlds whose minds have come together in highly successful art-science collaborations. At the Newcastle Science Fest ‘2011 in March, they produced a ‘field of jeans’ – as people generally own such a garment – on the concourse in Sheffield university’s main campus to illustrate the potential everyday use of catalytic clothing. Cristal Global attached its specialty TiO2 to the fibers of the jeans, and in the following months more ‘field of jeans’ sites appeared in London and elsewhere in the United Kingdom. Since most concentrated pollution in cities is captured at the ground level upwards for about one meter or so, photocatalytic jeans are ideally positioned to make an impact. Photocatalytic clothing harnesses the power of a photocatalyst to break down air borne pollutants. A catalyst makes a reaction proceed at a greater rate but isn’t actually consumed during that reaction. A photocatalyst gains the energy it needs to be active from light. When light shines on the photocatalyst, the electrons in the material are rearranged and they become more reactive. These electrons are then able to react with the water in the air and break it apart into two radicals, which then react with the pollutants and cause them to break down into non-harmful chemicals. The photocatalyst causes oxidation of substances adsorbed on the surface, and nothing is absorbed in the process. Nitrous oxide is converted to soluble nitrate and volatile organics are converted into fatty acids and soaps. The two biggest sources of air borne pollutants are industry and motor vehicles. Although the majority of the pollutants are prevented from reaching the air, using technology such as catalytic converters, some do escape. It is these pollutants that photocatalytic clothing will break down. A significant reduction in the level of air borne pollutants in a large city such as London could be achieved if, for every meter of pavement width, 30 people wearing catalytic clothes walked past each minute. For earth-friendly coatings CristalACTiVTM has been used in tunnels in Paris and Manila – many road tunnels need to be closed every six weeks or so for a 12-hour period for the cleaning of the interior walls, causing a great inconvenience to road users and also incurring a substantial cost for the cleaning. CristalACTiVTM uses the UV component from the tunnel lights to help keep the paint clean, therefore reducing costly cleaning bills and ultimately lowering our carbon footprint by being to able use fewer lights as the white paint stays cleaner and brighter longer. After years of extensive testing all over the globe, the CristalACTiVTM technology has been demonstrated and proven on paving stones, railway stations, indoor car parks and building exterior walls, which have all been monitored over extended periods. Reductions of nitrogen oxides were seen in all cases with levels ranging from 20% up to 65%. These results were validated in experiments conducted with Kings College in London. CRISTAL GLOBE - October 2011 Issue 6 11 colla b o ra t io n BYPRODUCT SYNERGY IN A CONCRETE INNOVATION An environmentally friendly invention by a team of researchers from Cristal Global and King Saud University in Riyadh wins gold at the 39th International Exhibition of Inventions in Geneva. 12 CRISTAL GLOBE - October 2011 Issue 6 ‘W Instead of employing the conventional way of making concrete by mixing cement with water and broken or crushed stone or gravel and other materials, the CristalKSU team used admixtures from TiO2 manufacturing waste byproducts – such as fly ash, furnace slag cement, and silica fume – to partially reduce the use of cement. Tests showed that the new concrete had several advantages and was as strong and resistant as conventional concrete. inning a gold medal at the 39th International Exhibition of Inventions last April in Geneva is a feather in the cap for Cristal Global in its endeavor to help reduce the carbon footprint of industry in general by developing “byproduct synergy.” The winning invention, patented in the United States last May by researchers from Cristal Global and King Saud University (KSU), is for the use of waste byproduct from titanium dioxide production as partial replacement for cement in order to reduce its environmental impact. Dr. Fadi Trabzuni, Director General-Performance Improvement and Intellectual Property, is Cristal Global’s inventor on the research team. The other members are Dr. Yousef Al-Zeghayer, Dr. Waheed Al-Masry, Dr. Tareq Al-Musallam and Dr. Mohammed Iqbal Khan from KSU. “The alliance with Cristal Global is an example of how a quality product can stem from joint research,” says research team leader Dr. Al-Musallam Their invention, which also won an award at the Malaysia Technology Expo earlier in February, is significant in that global cement manufacturing releases huge volumes of carbon dioxide into the atmosphere – calcium carbonate when heated produces lime and carbon dioxide. The cement industry is the second largest CO2 emitter behind power generation, producing about 5% of global manmade CO2 emissions, of which 50% is from the chemical process and 40% from burning fuel. Nearly 900 kg of CO2 is emitted for every 1,000 kg of cement produced. Globally, over three billion tons of cement are produced annually, with nearly four billion tons forecast by 2012, according to the International Cement Review. The Cristal-KSU team, instead of employing the conventional way of making concrete by mixing cement with water and broken or crushed stone or gravel and other materials, used admixtures from TiO2 manufacturing waste byproducts – such as fly ash, furnace slag cement, and silica fume – to partially reduce the use of cement. Tests showed that the new concrete had several advantages and was as strong and resistant as conventional concrete. The Cristal-KSU admixtures – obtained from the waste of both the sulfate and chloride processes for TiO2 production – can be used to make concrete and other cementitious material products for structural and non-structural uses, for example, grout, mortar, gunite, stucco, masonry, decorative stonework, bricks, blocks, roof tiles, floor tiles, cobblestones and pavers. For Cristal Global, the environmentally friendly invention is also a way to convert “trash into treasure” by working on the age-old concept of “byproduct synergy” (BPS), as best exemplified in agriculture and livestock farms. Recent research by Harvard Business School Assistant Professor Deishin Lee extends the concept into industrial processes, using an analytical model to show that a modern manufacturing plant can use BPS to make any number of new products CRISTAL GLOBE - October 2011 Issue 6 13 Dr. Moayyed Al-Qurtas, Vice Chairman and Chief Executive of Tasnee receiving a memento from Dr. Abdullah Bin Abdulrahman Al-Othman, KSU President. Looking on are Mubarak Al-Khafrah, (left), Chairman of Tasnee, and Dr. Talal Al-Shair (right), Chairman and CEO of Cristal Global in order to both reduce environmental impact and increase profits. “You have to stop thinking of yourself as a company that creates a certain product and instead think about the resources you have (including raw material resources) and how you can use them to produce as much value as possible,” says Lee in the HBS newsletter. Cristal Global has signed a memo of understanding with KSU and Riyadh Techno Valley to utilize the invention to achieve two objectives: serving humanity and boosting the economy of Saudi Arabia where rapid and expansive construction is under way. The Academic Ranking of World Universities (ARWU) puts KSU among the best 300 universities around the world. In the QS World University Rankings, KSU is ranked 200. In both the rankings, the university is rated as the best in the Arab world Riyadh Techno Valley is a KSU-initiated project dedicated to developing a knowledge-based economy in Saudi Arabia. The RTV project facilitates dynamic research 14 CRISTAL GLOBE - October 2011 Issue 6 activity within the university and enables researchbased institutions in the Kingdom to generate or transfer advanced technology. Among other objectives, the RTV project aims to increase the level of interaction between KSU and Saudi knowledge-based industry, business and commerce; create an appropriate environment for establishing and developing a school of entrepreneurship; and build up a site to encourage foreign direct investment by technology-based companies. The new and improved concrete can be used in the construction of infrastructure and regular of reinforced buildings. The effect will be a huge reduction in energy consumption, cost and environmental damage. As global environmental consciousness grows, the invention is likely to find wide application. China accounts for almost half of the global figures, consuming 1,851 metric tonnes of cement annually. India is a distant second with 212 mt and the United States third with 69 mt. (The US saw a fall in demand in 2010). Turkey is the largest exporter of cement and clinker while Bangladesh is the largest importer. ❄ u r b a n pp ll a n n i n g PAINTING THE TOWN WHITE One of the options to keep cities cool amid concerns about rising temperatures from climate change and intense urbanization is to paint buildings white.This alternative is supported by environmentally friendly Cristal technology which offers air purification, less energy consumption, cost savings and new opportunities for the paint industry. M. M. Paniel reports. C ity centers are increasingly facing a typical problem in the context of climate change – they are getting warmer than their more open, greener outskirts. However, urbanites cannot really blame it on global warming and the climate change it induces. Its reasons are more local than global, and architects and scientists are suggesting several ways to help keep urban centers cool, including painting the town white. Weather studies show that on a given sunny day, the built-up and busy heart of the city is much warmer than its green and open peripheries. The temperature difference can be felt more at night, especially when Last Afternoon Temp. Urban Heat Island (UHI) Effect 92F C 85 Rural Commercial Suburban Residential Urban Suburban Residential Residential Downtown Park Rural Farmland Urban Heat Island manifests as a large temperature difference between urban/commercial areas and surrounding countryside. EFFECT OF ROOF TYPE/COATING ON TEMPERATURE UNDER ROOF CRISTAL GLOBE - MEASUREMENT October 2011 Issue 6 SOLAR REFERENCE vs TEMPERATURE DIFFERENCE 15 EFFECT OF ROOF TYPE/COATING ON TEMPERATURE UNDER ROOF * Reflectivity: the ability of an object/surface to reflect radiation (measured 3002500nm) 95% 5% Black Ashphalt Low Reflec�vity* High Emissivity** 70-90°C 60% 40% Aluminum Coa�ng High Reflec�vity Low Emissivity 60-75°C 70% 90% White Acrylic Coa�ng Vey High Reflec�vity High emissivity 40-50°C ** Emissivity: the ability of an object/surface to re-reflect absorbed heat at longer wavelengths (measured 2-19mm) Effect of roof type/coating on temparature under roof the winds are too weak to cool the environs. This phenomenon is called Urban Heat Island (UHI) effect, formed basically by old fashioned, if not flawed, local planning. First investigated and described in the 1800’s, UHI is mainly caused by the modification of the land surface with materials that effectively retain heat. Buildings block the surface heat from radiating into the relatively cool night sky. Tall buildings provide multiple surfaces for reflection and absorption of sunlight, and they block air movement, inhibiting cooling. Urban surface properties, roofs and pavements can constitute about 60% of the surface area of a typical American city. These surfaces are typically dark in color and thus absorb at least 80% of sunlight, causing them to get warmer than lighter colored surfaces. These warm roofs and pavements then emit heat and make the outside air warmer. Air conditioning, manufacturing, transportation, and other human activities additionally discharge heat into our urban environments, all of which contribute to warming up cities by anything from 2 to 8oC. Warmer temperatures in cities lead to the need for air conditioning to cool buildings, and it becomes a vicious cycle. Elevated demand for air conditioning increases the 16 CRISTAL GLOBE - October 2011 Issue 6 use of energy by fossil-fuel power plants and the resultant emission of air pollutants and greenhouse gases. Burgeoning demand for energy in hot weather is already straining the electrical grids of the emerging markets, making them more susceptible to brownouts and blackouts. Moreover, warmer air accelerates the formation of smog (ozone) from airborne pollutants like nitrogen oxides and volatile organic compounds. Lower air quality from such higher air temperatures can aggravate heat-related and respiratory illnesses and also reduce productivity, according to the Heat Island Group at Lawrence Berkeley National Laboratory. In India, meteorological department officials in Bangalore point out that the city center is on an average warmer by a degree or two than the suburbs that are greener. Even islands of green cover within the city such as the Indian Institute of Science (IISc) in the northern side of Bangalore are cooler than the vast areas riddled with concrete constructions elsewhere. “A dense building pattern means a lot of heat is retained in the area,” explained Prof. Manju Mohan at the Centre for Atmospheric Science of the Indian Institute of Technology Delhi (IIT-D). “(UHI) also depends on the artificial heat generated by air conditioning, traffic density and tarred roads.” Manju and two of her colleagues, along with Prof B.R. Gurjar of IIT Roorkee and two scientists from Meisei University, Tokyo, had presented their findings at the seventh International Conference on Urban Climate, Yokohama, Japan in 2009. Their paper showed that commercial areas of New Delhi, like Connaught Place, Sitaram Bazar and Bhikaji Cama Place, were the top three urban heat islands. At the same time, green areas of the city, like Hauz Khas District Park, Sanjay Van and Buddha Jayanti Park were the cooler pockets. IIT-D is now lining up a series of experiments to ascertain the extent of the UHI effect on the temperature in New Delhi. An input that goes into such studies is surface temperature measurement dataset sourced from an international satellite project called MODIS. The Moderate Resolution Imaging Spectroradiometer (MODIS) is a key instrument aboard the Terra and Aqua satellites – Terra is a joint US-Japan-Canada satellite and Aqua is a NASA mission. Terra passes from north to south across the equator in the morning, while Aqua passes south to north over the equator in the afternoon. MODIS contributes to creating validated, global and interactive earth system models, which helps predict environmental and climate change. A study in Bangalore led by Prof. Ramachandra T.V. of the Centre for Ecological Sciences, Indian Institute of Science (IISc), which was published last year, showed that heat islands were also growing in Bangalore, Aerial photo of Salt Lake City, site of 8565,000 ft2 white reflective roof coating Images courtesy of NASA Thermal Infrared image of Salt Lake City, hot (red / orange) cool (green/blue). White reflective coatings are blue For earth-friendly coatings Cristal Global’s market-leading TiO2 products add significant value to paint and coatings manufacturers by delivering exceptional performance, whiteness, brightness and opacity. In addition to its TiO2 offering, Cristal Global is also a leading manufacturer of specialty and ultrafine TiO2 commercialized under the CristalACTiV™ brand for a number of applications, including environmental, chemical and petrochemical catalysis, fuel desulphurization, refining, electronics, color pigments and photocatalysis. These materials are manufactured at Cristal Global’s plant in Thann, France, which was expanded in 2009 to double its capacity. Cristal Global produces titanium chemicals (TiCl4 and its derivatives) in the United States and France for a variety of applications, including titanium metal, pearlescent pigments, catalysis, and electronics. the country’s information technology (IT) hub in the south, long known for its pleasant weather as a naturally ‘air conditioned’ city throughout the year. “Bangalore has witnessed a drastic reduction of green spaces and lakes,”Ramachandra said, “and it has seen an increase in local temperatures to the tune of 2 to 2.5oC during the last decade.” The Director of the Divecha Centre for Climate Change at the IISc blamed also the proliferation of glass and steel buildings in Bangalore over the past decade. The manufacturers of a leading brand of glass said big businesses in Bangalore have been adopting glass varieties of late that let in light and reflect heat from their high-rise buildings. But that only posed another problem of reflected heat. “Glass or no glass, there is a need to reduce the density of concrete structures and leave green spaces in between,” Manju said. Cristal technology Researchers worldwide are finding ways to offset UHI. Recent research at the US National Center in Boulder, Colorado, demonstrated that white roofs can be an effective method for reducing urban heat since they reflect incoming solar rays. Scientists are also working towards construction and roadbuilding materials that absorb less heat. At Cristal Global, the Research, Development and Technology (RD&T) group has come up with a pure acrylic emulsion CRISTAL GLOBE - October 2011 Issue 6 17 Solar reflectance and thermal emittance are the two radiative properties to consider when selecting a cool roof. (Image courtesy of the Cool Roof Rating Council) 18 paint system that incorporates the innovative CristalActivTM technology. CristalActivTM technology helps keep the roof cleaner and whiter for longer. The coatings are durable, offer thermal shock protection and cost cost savings from less energy use, and are environmentally friendly since they are water based and have self-cleaning and air purification functions. Researchers at the Polytechnic University of Bari, Italy, and Columbia University, U.S., recently evaluated the positive effects of vegetation on buildings and neighborhoods. Monitoring the urban heat island in four areas of New York City, they found an average temperature difference of 2 oC between the most and least vegetated areas, which can CRISTAL GLOBE - October 2011 Issue 6 be ascribed to substitution of vegetation with man-made building materials. Significantly, the researchers led by Dr. T. Susca – who is affiliated to both the universities – checked by using a climatological model how at a micro-scale surface albedo (reflection) impacts climate. They compared surface albedo and construction replacement separately for a black, white and green roof. “By our analyses, we found that both the white and the green roofs are less impactive than the black one – with the thermal resistance, the biological activity of plants and the surface albedo playing a crucial role,” they noted in the journal Environmental Pollution. ❄ s o c i a l r e p o n ss ii b ii l i t y ALL IN THE FAMILY Rebecca Kirvan traces the growth of our Stallingborough site as a vital force in the development of the local community. C ristal Global’s Stallingborough plant has been part of the local community for almost 60 years. Located in the east of England, the plant sits on the bank of the River Humber at the northeast tip of Lincolnshire county almost where the mouth of the river meets the North Sea. The 160-hectare site was first developed in the 1950’s by Laporte because the deep-water docks at nearby Immingham allowed ore and sulfur imports. Water was also plentiful and there was rail access for bulk materials. In February 1953, as the factory was being built, the east coast floods struck, covering the site in a foot of water and causing devastation amongst the building works. This instigated the building of the sea wall that remains in place today and is vital protection for the site (Right) Haydn Fulton with some of the books his school was able to buy with funds donated by Cristal Global CRISTAL GLOBE - October 2011 Issue 6 19 Photograph of the site from across the adjacent fields, taken by Cristal employee Mark Woofindin from the tidal waters. On July 5, 1953, the plant fired up its two kilns for production and began making pigment. Making 5,000 tonnes a year, it didn’t take long for the plant to begin expanding and the site was up to six kilns by 1965. The area was still relatively remote at this time with the only access road being a narrow country lane on soft ground unsuitable for heavy vehicles and not ideal for exporting the finished pigment. Better roadways had been promised but the area had to wait another 30 years for the main A180 road to be built so this delayed any other industrial development in the area. Not being able to wait, Laporte paid for the upgrade of the access roadway soon after the factory was completed, making it possible and feasible to bring ore into the factory by lorry as well as export finished product. The year 1970 saw the arrival of the more environmentally friendly chloride plant which was initially to run along side the sulfur plant with a capacity 20 CRISTAL GLOBE - October 2011 Issue 6 of 30,000 metric tonnes a year. In 1984, Laporte sold the site to SCM Chemicals, which considerably expanded it right away using improved technology. The site has since continued to grow and been through a number of different ownerships over the years. It finally became a part of the Cristal Global group in 2007. The Stallingborough plant has always been a big employer in the area, with many of its workforce coming from Grimsby, the largest local town just a few miles down the road. Grimsby was originally a Viking settlement founded in the 9th century and back then it was called Grim’s by (Grim’s Village). Grim was a fisherman sent from Denmark to kill the young Prince Havelock, whose three sisters had already been killed by Earl Goddard. Grim could not bring himself to kill the child and, being unable to return to Denmark, he settled alongside the Humber Estuary which later became known as ‘Grimsby’. Steam and process chemicals pipes The town is now best known for its fishing port that at one time competed with the local City of Hull (on the north bank of the River Humber) to be the largest fishing port in the world. The Stallingborough plant has always been very dedicated to supporting the local community in various ways. The Community Awareness Committee set up several years ago to manage the company’s community CRISTAL GLOBE - October 2011 Issue 6 21 The Cristal-Millennium Cycle Team cycled 185 miles (298 km) raising money for Pinderfields Hospital involvement is made up of a cross-section of employees dedicated to ensuring that the company’s support benefits the most local and worthy causes. Earlier this year a Community Care Day was held, when company volunteers armed with paint brushes, scrubbing brushes and gardening tools went out to a local children’s nursery to give the place a makeover and create a brighter and healthier environment for the children. In a joint project with the Research and Development team, the nursery building was painted from top to bottom in our new CristalActivTM coating. The team also works with many local charities either through financial support or by volunteering for local projects – from taking part in charity fundraising events to serving hot meals to the homeless on Christmas Eve. We also get involved in educational activities. For the younger children, employees regularly go to schools for a day to teach the children about what a community is and why it is important to support your local community. For the older pupils we arrange demonstrations and workshops to help them relate to the chemistry they 22 CRISTAL GLOBE - October 2011 Issue 6 study in school to how it can be used in a career. Following a big expansion project in 2010, the plant has benefited from some exciting new technology to further increase production at the site. This has resulted in many new career opportunities providing quite a challenge to our HR team. “This really is a fantastic opportunity for enthusiastic and dedicated people in the local area who are looking for a new challenge,” said Human Resources Manager Philip Long. “At Stallingborough, we pride ourselves on developing our people and offer higher education opportunities to enable team members to realize their own potential and to progress their careers.” “Learning and Development is one of our core values, and as part of our many training schemes, we offer apprenticeship and graduate programs,” he said. “In September last year, we recruited eight new apprentices to the scheme and offered employment to eight apprentices who recently completed their training programs.” Throughout the company, there are many examples Claisse Fusion Machine in the labs of employees who have developed their careers through the success of these programs. Paul Gilbert, Safety Health and Environment Manager, joined the company in 1982 as an apprentice and has worked his way up to his current position on the site’s Senior Leadership Team. One of the site’s longest serving employees, Ray Collinson, a Senior Engineer, has recently celebrated an extraordinary 50 years’ service, having started his career as part of the Youth Training Scheme. Paulo Oliveira, Functional Safety Leader, is a more recent employee who joined the company just over two and a half years ago. He said, “Since day one, working at Millennium has been a positive challenge which has driven me to try harder and do better. Starting out as an I&E Maintenance Engineer for the base pigment production part of the plant, I had the opportunity to contribute, improve and look after systems that are crucial to safety and quality. “ “My personal interest in safety aligns with the company’s strong safety commitment,” Oliveira said. “This has resulted in an opportunity to lead functional safety systems, an area of process safety which I am very interested in. I am now planning to develop my career further by studying for an M.Sc. in Process Safety, and in the interim I’ve become a fully certified Functional Safety Engineer. With no exception I’ve learnt something valuable from each and everyone I have come in contact with at MIC and enjoy working with the many people that make this site unique.” “Overall, the experience has been rewarding and fulfilling, with opportunities and challenges that have provided me with important learning opportunities not only professionally, but personally,” he said. Lynton Simmonds, Site Director at Stallingborough added, “The site here has made huge steps forward in recent years and as it continues to develop and grow, we look to the future to strive towards our vision of becoming a manufacturing center of excellence.” ❄ CRISTAL GLOBE - October 2011 Issue 6 23 conservation OUR HEALING TOUCH 24 CRISTAL GLOBE - October 2011 Issue 6 How Cristal Global is working to create a renewed habitat for nature and wildlife at the historical Healing Cress Beds. S tallingborough’s Millennium Inorganic Chemicals, a Cristal Global Company, is working to create a new habitat for nature and wildlife at the historical Healing Cress Beds. “This is a wonderful opportunity for us to make a contribution by encouraging many kinds of wildlife to the area,” Ian Williams, Environmental Advisor at MIC. The site was originally converted into Cress Beds back in the 1940’s as the land lent itself to watercress due to the springs of pure water overflowing from the chalk outcrops on the Lincolnshire Wolds, filtering through the gravel and chalk down to Healing. Much of the watercress produced then was transported from Grimsby train station to towns throughout the North of England. However, as British Rail cut back on their freight services, it became much more difficult to get the cress to the town markets early enough by road, and (left) Starting work CRISTAL GLOBE - October 2011 Issue 6 25 commercial production at Healing finally came to an end in 1970. The land at the cress beds has since been used only for water abstraction and has developed naturally. Given the area’s historical and archaeological uniqueness, MIC is taking over the abstraction license this year with a view to enhancing the land by developing a mosaic of different natural habitats. The aim is to attract wading birds, plants and invertebrates, all of which have become much diminished within Lincolnshire. Cristal Global has employed nature conservation specialists Humber INCA (Humber Industry Nature Conservation Association) to put together a plan for making the best use of the land. Work began in early September to expose the historical cress beds and to create wetland, grassland and ponds in a new natural habitat. “We have been members of Humber INCA for many years as our plant is located on a Site of Special Scientific Interest (SSSI),” Ian said. “We feel it is very important that we continue to meet our environmental responsibilities, ensuring preservation of the specialist natural habitats here. We were excited to take over ownership of the Healing Cress beds, being an area that has such a significant historical background. To be able to re-expose the cress beds as well as create a new wildlife habitat is fantastic.” ❄ 26 CRISTAL GLOBE - October 2011 Issue 6 (Clockwise from left) Exposing the cress beds, exposed sluice gates and exposed cress beds CRISTAL GLOBE - October 2011 Issue 6 27 spotlight MEET BECKY, OUR RALLY RACING CHAMP Becky Kirvan is the Management Team Coordinator at Cristal Global’s Millennium Inorganic Chemicals plant in Stallingborough. She’s well on her way to competing in the final round of the World Rally Championship. W hen Becky Kirvan once interviewed world championship driver Mikko Hirvonen for a television program, little did she know that she’d be competing in the same event as him one day! Becky’s world championship quest in the final round of the World Rally Championship, Rally Great Britain, takes place in Wales, in November this year and Cristal Global is her sponsor. “I feel very privileged,” Becky said. “Competing at this level would have been completely out of reach if it wasn’t for Cristal Global’s sponsorship. Now I’m able to achieve one of my biggest ambitions in rallying – to compete against world championship drivers in their amazing cars. It’s almost unbelievable!” Becky is the Management Team Coordinator at Cristal Global’s Millennium Inorganic Chemicals plant in 28 CRISTAL GLOBE - October 2011 Issue 6 Stallingborough. “She has done very well in rallying and we are proud to help her compete at the highest level possible,” said Fahad Nackshabandi, General Manager of Cristal Global Corporate Communications. Having been crowned BRC Challenge Ladies Champion in the previous round of the British Rally Championship, The International Rally of Northern Ireland, Becky, together with co-driver Kaz Watts, had looked strong and confident going in to the penultimate round of the 2011 season, the recent Trackrod International Rally Yorkshire in the KC Rally Team Ford Fiesta ST. It was Becky’s home event but the venue was notorious for its super fast forests and fierce competition. Getting off to a good start, the pair were lying (Right) Becky Kirvan interviewing world championship driver Mikko Hirvonen for a television program CRISTAL GLOBE - October 2011 Issue 6 29 ‘ within touch of 10th place after three stages. “Stage 4 was the long one of the event so we wanted a big push to take 10th in the Challenge,” explained Kaz. “I had my head down, reading the notes, when I heard Becky on the intercom say we had no brakes. Heading fast downhill into square right, Becky was doing everything she could to slow the car down but we left the road and hit a tree. We rolled and landed upside down in a ditch but thankfully we were both okay, a bit sore and bruised, but eager to get the KC Ford Fiesta fixed and back out.” The final round of the British Rally Championship Challenge (BRCC) in 2011 takes place on the asphalt roads of the Isle of Man in October and there will be just two weeks for Becky’s rally technicians to convert the car into the right specification for the gravel forest roads of Rally Great Britain. Amongst the changes will be different suspension and different wheels and tires. The car will also be branded with Cristal Global graphics. “Rallying really is my passion,” said Becky. “The thrill of powering a car as fast as possible down narrow slippery tracks compares to nothing else.” After many years of watching rallying on the television, Becky got her first real taste of the sport in 2001 when she was given a rally driving course as a birthday present. “After a day sliding and skidding a rally car around a gravel course I was hooked.” She has since followed every World Rally Championship. “In fact, Rally Great Britain was the first rally I ever went to watch. I remember standing in the forest waiting for the awesome world rally cars to pass me, you can hear them coming from up to a mile away. The roaring engines and the popping and banging of the unburnt fuel made me tingle with excitement!” Becky’s first big chance came in 2006 when she entered the Ladyquest competition held at the Silverstone 30 I had my head down, reading the notes, when I heard Becky on the intercom say we had no brakes. Heading in to a fast downhill square right, Becky was doing everything she could to slow the car down but we left the road and hit a tree. We landed upside down in a ditch... – Becky’s co-driver Kaz Watts (Right) Becky in racing gear. “Competing at this level would have been completely out of reach if it wasn’t for Cristal Global’s sponsorship,” she says. CRISTAL GLOBE - October 2011 Issue 6 CRISTAL GLOBE - October 2011 Issue 6 31 motor racing circuit, the same place where Formula 1 racing takes place. “After a lengthy assessment process where an instructor tested my driving skill, ability and fitness, I was judged the winner and was absolutely thrilled.” The prize was a full program of events beginning with the daunting Lombard Rally in October 2006, which featured four days and nights of competition. “A really tough start to my rallying career!” After that Becky competed in several events in 2007 in order to qualify for her full national competition license. “This meant I could finish my Ladyquest prize at the prestigious Swansea Bay Rally. I competed against some of the fastest drivers in the United Kingdom in this event and was very happy to win my class. After a quiet two years in 2008 and 2009 Becky made a full return to rallying in 2010 when she competed in the national BTRDA Rally First championship, which takes place at venues all over England and Wales. “I had an absolutely fantastic year and, despite a high-speed accident on one event which destroyed the car, I won the BTRDA Ladies title.” The costs of competing in rallying are very high and Becky’s championship success brought in KC, a communications company in Hull, East Yorkshire, as her main sponsor for the British Rally Championship Challenge (BRCC) in 2011. Once the BRCC comes to an end in October, Cristal Global will sponsor her contest in the final round of the World Rally Championship in Wales in November this year. Rally Great Britain will consist of four days of competition all over Wales starting on the North coast near Llandudno and finishing in Cardiff. The total competitive mileage is 220. “It will be the longest stage rally I’ve ever competed in and it’s sure to be very challenging,” Becky said. “There is an immense amount of work to get both myself and the car ready for the event, 32 though I believe the experience I’ve built up in the last two years will help me a great deal. I’ll be aiming to do the very best that I can.” Becky presently lies in 7th place in the BRCC as well as second in her class championship and she still has two rounds to complete before her Rally GB outing with a double-header on the Isle of Man. “The season has gone really well so far and I’m very pleased to have successfully completed all the events. The car has been great throughout the season, my only issues being a couple of punctures for which I can hardly blame the car – and of course the brake failure in Yorkshire. “I’ll be pushing hard on the final round to gain as good a championship position as I can. I would like to express my sincere thanks to my sponsors KC, Bardahl Top Oils, Princes Quay Shopping Centre, Peart Auto Services, Rally4Real and Songasport for supporting my BRC Challenge campaign this year.” Alongside competing Becky is also involved in other aspects of the sport. She has helped with fundraising rallying calendars, participated in various motor shows as part of the Girlracer organization with the aim of encouraging more women to take part in the sport. “I have also presented a television program about rallying which included me interviewing one of the biggest stars in world rallying – a driver I will be competing against very soon!” When not working hard at Stallingborough or out rallying, music plays a big part of Becky’s life. “I studied music at university with the bassoon being my specialty. I now play in an orchestra and I am also a soprano soloist, singing at weddings and concerts – so it’s not always easy to fit everything in! Becky’s website: www.beckykirvan. co.uk ❄ CRISTAL GLOBE - October 2011 Issue 6 ‘ Rallying really is my passion. The thrill of powering a car as fast as possible down narrow slippery tracks compares to nothing else. Whether it’s bouncing off a dirt road, skidding on ice, taking a sharp turn or ploughing into mud, Becky has done it all CRISTAL GLOBE - October 2011 Issue 6 33 in tervie w WHEN PATHS MEET AND STRETCH FOR 35 FRUITFUL YEARS On July 5, 1976, two promising young analytical chemists began their careers. Dominic Manganaro and Graeme Stephen both studied Chemistry at the University of Western Australia, finishing with honors in 1975. Neither of them knew that the other was also starting at what was then Laporte, on the same day. Both of them were offered an initial six-month contract. They continued to work for the company for the next 35 years, contributing enormously to Cristal Global’s development, innovation and success. Summa Hollins reports. DOMINIC MANGANARO A s Director-Cristal Bemax, Dominic’s leadership drives the integration and strength of Bemax’s position in the mineral sands market. Dominic’s first role with the company was as a chemist at Australind. By 1979, he was Plant Superintendent at the hydrogen peroxide plant in Banksmeadow, New South Wales. In 1982, he was promoted to Plant Manager, Bunbury Operations. He was appointed Site Director, Ashtabula Complex, Ohio, USA in 1986. In 1999, he returned with his family to Australia and resumed the role of Site Director at Bunbury Operations. 34 CRISTAL GLOBE - October 2011 Issue 6 GRAEME STEPHEN G raeme is currently the DirectorPigment, Commercial R&D, based at Henderson, a suburb of Perth in Western Australia. He began his career with Cristal as an Analytical Chemist and was quickly promoted through the ranks to become the Production Manager by 1992. In 1999. Graeme was promoted to Site Director of Le Havre, France. In 2001, he was transferred to Stallingborough to take up the post of Site Director. He returned home to Australia in 2004 to accept the position of Director-Supply Chain. Dominic Manganaro (left) and Graeme Stephen who were both offered an initial six-month contract back then What has kept you with the company for 35 years? DOMINIC: I have been very fortunate to have been involved in many interesting and challenging projects and assignments both within Cristal’s Australian and global businesses. So I have really enjoyed the international experience of being part of a larger team, learning new skills, and being involved in many varied and challenging work assignments. GRAEME: Mainly the people I’ve had the opportunity to work with. Over the years, I have worked in many roles and at a number of sites, and the constant factor is the quality of the people. I’ve made many good friends along the way and have always found the working environment to be both challenging and stimulating. The other great factor is the CRISTAL GLOBE - October 2011 Issue 6 35 technical challenge of both the process and the products, which always makes coming to work interesting. What is the single biggest change you have seen in business operations during your career? DOMINIC: The biggest change I have seen is the growth in the complexity of managing business operations in its modern environment. While new technology has been useful in raising our personal productivity, it has also increased the level of complexity in managing business. Working in a complex world today means that we have had to become very, very good at choosing the right things to work on! GRAEME: I think the change in technology from the sulfate to the chloride process. While the sulfate process was full of excitement for a young chemist, the chloride process has brought a higher level of stability and a larger scale to the business. It has also driven some fundamental cultural changes, particularly on the safety and environmental fronts. Are there any business or personal achievements that stand out in your mind? DOMINIC: There have been many challenges during my career but the one that I am focused on at present is the most important to me right now. Mining is a very big challenge in today’s competitive business environment. While the past two years has been very difficult, the successful commissioning of the Snapper Project has transformed Bemax into a larger and stronger enterprise, with a more secure long term future. This has been a great example of a combined Cristal-Bemax team effort. GRAEME: On the business side, I think my involvement in the development of 36 CRISTAL GLOBE - October 2011 Issue 6 the first generation of chloride products for Australind, particularly Tiona RCL 575TM, was a highlight. All of that first generation of chloride grades were outstanding products that helped establish the long term success of the Bunbury operations and provide a platform for many of our current products. On the personal side, having the opportunity to work and live in France and subsequently the UK as Site Director for Le Havre and Stallingborough were wonderful experiences. Have you had a mentor or a particular support person who has assisted you professionally or personally during your career? DOMINIC: I have been around for a while and so there are many leaders and work colleagues that I have worked with, both in Australia and overseas, who I have admired. I consider myself fortunate to have worked with so many talented people within Cristal/Bemax. What I have learnt from them is that everyone has a contribution to make and getting results is really a team rather than an individual effort. GRAEME: I have had the opportunity to work with many wonderful people who have helped and supported me in my career but without doubt, Les Hamor (retired Technical Manager of the Bunbury Operations) stands out as the person who assisted me most both personally and professionally over the years. Les had the ability to challenge your thinking without challenging you. He had that depth of knowledge only gained through direct experience but which also brought intelligence and sophisticated thinking to every discussion. He was an honest, caring and compassionate leader and is still a great friend to many Bunbury employees. ❄ g l o b a ll e c o n o m yy A FADED SILVER LINING Global economic uncertainty has been made worse by debt crises, low growth in employment and policy dithering. The overall scenario looks a bit rough for the moment, writes M. M. Paniel. CRISIS WATCH ON THE EDGE T he global economy still hasn’t recovered from the 2008 credit crisis and has been close to stalling anew for the past several months because of unease over the European financial system’s exposure to sovereign bonds. Europe’s woes are responsible for wiping out about $13 trillion of wealth since July 1, analysts at Barclays Capital estimate. The crisis “has reached a systemic dimension,” said European Central Bank President Jean-Claude Trichet on Oct. 11. Europe’s nightmare scenario would mean fresh financial disaster, according to Nobel laureate economist Robert Mundell. In the worst case, authorities fail to prevent Greece from defaulting on 356 billion euros ($489 billion) and investors react by triggering insolvencies as far as Spain and Italy. Such a firestorm would devastate bank balance sheets, rock markets, derail economic growth and threaten to splinter the 17-nation euro area. The default and spillover may cause the euro area to contract by 1.3% in 2012, using the Lehman Brothers case as a benchmark, estimated Laurence Boone, chief European economist at Bank of America-Merrill Lynch in London. The European Central Bank (ECB) would probably have to lead the response as the Fed did in 2008. At New York-based Goldman Sachs Group Inc., economist Andrew Tilton says Europe is already slowing the U.S. “to the edge of recession” by tightening financial conditions and limiting American exports. If financial markets freeze and governments cut budgets even more, economies would probably be shoved back O n a sunny autumn day, as seagulls flew over the campus lawns of the University of Sussex in Brighton, U.K., Prof. Jon Mitchell, head of doctoral research at the School of Global Studies, listed an unusual topic for his new research students to probe — the global economic situation as it unfolds, here and now. While there are other international issues such as climate change, unemployment and security threats that call for rigorous research attention, the economic situation is a concern that requires an urgent response from pundits as well as practitioners. A clear statement regarding the economic scene came from across the Atlantic on Sept. 12. “The world economy has hit a rough patch on the road to recovery and is in danger of skidding off course,” said a report issued by the Massachusetts-based think tank, Brookings Institution. An update of the Tracking Indices for the Global Economic Recovery (TIGER) issued by Brookings along with London’s respected daily, The Financial Times, painted a rather gloomy picture: “The general picture among G-20 economies is one of slowing growth, swooning financial markets, and declining consumer and business confidence.” “A series of adverse shocks, coupled with political wrangling that has stymied effective policymaking and added to uncertainty, has crippled growth in advanced economies,” wrote Brookings senior Fellow Eswar Prasad and senior analyst Karim Foda. “Emerging markets have maintained strong growth so far, but the battle against domestic inflation and weaknesses in major export markets are beginning to affect their growth as well,” they wrote in a commentary published by The Financial Times in the following week. The authors argued that global economic uncertainty has been made worse by debt crises, low growth in employment and policy dithering in the major advanced CRISTAL GLOBE - October 2011 Issue 6 37 CRISISWATCH WATCH CRISIS into recession. The Geneva-based International Labor Organization said last month that there is a risk of 40 million fewer jobs in the G-20 next year than when the credit crisis began in 2008. CRISIS RESOLUTION STEPS The ECB needs “to be very active” in managing the regional crisis with steps that include allowing its bond buying program to reach as much as one trillion euros, maintaining liquidity in banks, and cutting its key interest rate to 1% from 1.5% by early next year, according to David Mackie, chief European economist at JPMorgan Chase & Co., who forecasts an imminent recession. European Finance ministers and central bankers from the Group of 20 held their first in a series of crisis resolution meetings on Oct.12 in Paris. European leaders will then convene in Brussels on Oct. 23 and those from the G-20 will gather Nov. 3-4 in Cannes, France. “If the G-20 comes out of Cannes with nothing, that will be a nightmare,” said Jim O’Neill, chairman of Goldman Sachs Asset Management, who had crafted the concept of the BRIC nations to describe the growing economic might of Brazil, Russia, India and China. The leaders are working on multiple fronts to manage Greece’s finances, protect banks and overhaul Europe’s economic governance to avoid a repeat. A default or a country leaving the euro weren’t part of the single currency’s original design. The package of measures to stop the crisis from spinning out of control should include requiring Greek banks to hold more capital so they can withstand potential losses from bond holdings, according to the IMF, which has put the cost as high as $200 billion. Euro-area banks need at least 150 billion euros of capital under a plan similar to the U.S. government’s U.S. Troubled Asset Relief Program, estimate analysts at JPMorgan Cazenove led by Kian Abouhossein. European governments also are laying plans to increase the spending power of a 440-billion-euro bailout fund, created in May 2010 to provide loans to cash-strapped nations. It is now being revamped to allow it to also buy bonds on primary and secondary markets, offer precautionary credit lines and inject money into banks. With taxpayers balking at providing more cash and wealthy countries worried about hurting their own credit ratings, officials may try to leverage the bailout fund’s capacity, perhaps by insuring a portion of new bonds issued by debt-ridden nations. Silvio Peruzzo, an economist at Royal Bank of Scotland Group Plc in London, says two trillion euros of capacity is needed to persuade investors that Spain and Italy would have enough funding. The need to make Greece’s borrowings more manageable also may mean investors will have to take a bigger share of losses on its debt than the 21% write-off that formed part of a July aid deal. German banks are reportedly preparing for losses of as much as 60%. 38 CRISTAL GLOBE - October 2011 Issue 6 economies. Rising risk and inadequate policy responses have made a dent in the confidence of financial markets around the world, leading to stock markets taking a beating over the last summer. They took note of the current scenario on either side of the Atlantic and beyond and said withdrawal of fiscal stimulus and dilly-dallying on the long-term debt problem, amid a lot of political wrangling, have delayed the recovery process in the U.S. Meanwhile, the European debt crisis appears to be putting the breaks on consumer spending and business growth. Everybody is playing safe. At least for now. Japan, a major economy of Asia, has yet to recover fully from the double whammy of the earthquake and tsunami. Commodity exporters Australia and Canada face the spin-off effects of the slowing down of the major economies. While emerging markets continue to perform well, they are under pressure with problems such as high inflation. “India’s financial markets have cooled off and GDP growth has slowed slightly, but foreign trade and industrial output continue to grow strongly,” the FT report noted. Still there are factors that affect business that are not really highlighted, such as a high-voltage campaign against what appears to be rampant corruption, with several former ministers jailed for graft. Though China clocks robust growth, there are signs of increasing domestic policy tensions while balancing inflation control on the one hand and maintaining the growth rate on the other. “Emerging markets may find it difficult to continue being the drivers of global growth for much longer if advanced economies’ policies fail to restore their own economic growth,” the report warned. The overall scenario looks a bit dull for the moment and the silver lining still looks distant and dim. The UN Conference on Trade and Development Report, 2011, titled Post-Crisis Policy Challenges In The World Economy pointed out that global economic recovery has entered a renewed phase of fragility. In a clear, bold statement, the report said: “The recovery of the world economy is slowing down, with strong downside risks.” Released in September, the report listed a set of reasons that has contributed to the scenario. Though the G-20 responded effectively to the “Great Recession” that followed the collapse of financial institutions, their response has left a lot of unfinished business. Leading central banks have eased their monetary policy, followed by most members of the G-20 pumping in fiscal stimuli and laying down support mechanisms to restore financial stability. “(T)hese measures stopped the economic freefall and won policymakers an important first round in battling the crisis,” the UNCTAD report noted. Still little progress, if any, has been achieved in major areas like financial regulation, financialization of primary commodity markets and reform of the international monetary system for curbing speculation-driven, short-term capital flows, the report added. On another plane, many of the developed countries have WORLD OUTPUT GROWTH, 2003–2011 (Annual percentage change) Region/country 2003 2004 2005 2006 2007 2008 2009 2010 2011a World 2.7 4.1 3.6 4.1 4.0 1.7 -2.1 3.9 3.1 3.0 2.5 2.8 2.6 0.3 -3.6 2.5 1.8 2.7 3.6 2.5 1.9 3.0 2.0 2.0 2.6 3.2 2.4 2.1 3.0 -1.2 0.4 0.5 -6.3 -2.6 -4.2 4.0 2.9 1.8 -0.4 2.3 1.9 2.2 2.5 1.2 1.5 3.0 1.7 1.9 0.8 0.7 2.2 3.1 2.2 3.4 2.0 2.8 2.8 2.4 2.7 1.5 2.7 0.5 0.2 1.0 -1.3 -0.1 -4.1 -2.6 -4.7 -5.0 -4.9 1.7 1.5 3.6 1.0 1.3 1.8 2.1 3.0 0.9 1.3 5.5 4.7 6.5 6.2 4.0 -3.6 2.2 3.2 7.2 4.1 7.6 7.7 5.6 7.9 6.5 4.7 6.7 8.3 5.2 8.7 8.6 6.1 8.8 5.4 4.3 5.5 -6.7 -3.7 -7.0 4.1 0.5 4.5 4.4 2.2 4.5 7.3 7.2 6.4 8.2 8.5 5.6 -7.9 4.0 4.4 5.4 7.5 5.2 6.9 8.0 7.6 5.3 8.0 6.0 5.4 5.9 2.5 5.4 7.4 1.8 4. 6.3 4 3.5 6.6 4.9 5.1 5.4 4.7 4.8 1.5 4. 1 0.2 5.5 1 2.9 3.0 4.6 5.4 5.3 6.8 5.6 7.2 5.5 6.8 3.7 4.2 -1.8 5.5 2.8 5.8 4.0 1.8 3.0 5.8 3.7 4.6 7.5 5.5 9.4 5.6 5.9 4.0 3.0 -2.2 0.3 5.9 3.3 4.7 3.4 3.8 1.4 1.9 4.2 4.1 6.9 4.8 3.3 5.1 6.5 4.8 5.5 7.1 3.4 6.7 4.3 1.5 5.3 -0.5 -6.5 -0.4 3.6 5.5 6.4 4.3 4.0 5.1 1.1 6.9 7.1 5.7 8.1 8.3 3.2 8.1 8.6 4.0 8.7 10.0 6.1 9.1 11.1 5.2 5.8 7.0 -0.6 4.2 5.9 7.5 8.3 9.4 4.0 7.2 8.0 10.0 7.8 10.1 7.5 11.3 8.2 12.7 8.4 14. 8.9 2 9.6 4.5 9.1 5.8 10.3 7.2 9.4 6.9 8.4 5.6 6.3 2.4 8.3 6.5 9.4 2.0 9.3 5.8 7.8 2.2 9.4 6.2 6.7 1.4 9.6 6.6 5.2 2.8 5.1 4.2 4.8 2.5 7.0 1.0 -0.8 1.4 8.6 7.8 6.0 2.9 8.1 5.0 6.4 3.5 Developed countries 1.9 of which: Japan 1.4 United States 2.5 European Union (EU-27) 1.4 of which: Euro area 0.8 France 1.1 Germany -0.2 Italy 0.0 United Kingdom 2.8 European 4.3 Union (EU-12)b South-East Europe and CIS South-East Europec CIS, incl. Georgia of which: Russian Federation Developing countries Africa North Africa, excl. Sudan Sub-Saharan Africa, excl. South Africa South Africa Latin America and the Caribbean Caribbean Central America, excl. Mexico Mexico South America of which: Brazil Asia East Asia of which: China South Asia of which: India South-East Asia West Asia Oceania Source: UNCTAD secretariat calculations, based on United Nations, Department of Economic and Social Affairs (UN/DESA), National Accounts Main Aggregates database, and World Economic Situation and Prospects (WESP) 2011: Mid-year Update; ECLAC, 2011; OECD.Stat database; and national sources. Note: Calculations for country aggregates are based on GDP at constant 2005 dollars. a Forecasts. b New EU member States after 2004. c Albania, Bosnia and Herzegovina, Croatia, Montenegro, Serbia and The former Yugoslav Republic of Macedonia. CRISTAL GLOBE - October 2011 Issue 6 39 CRISISWATCH WATCH CRISIS Any fresh measures may still fail because of the range of differences in Europe over what to do, according to Mackie at JPMorgan Chase. The Germans and Dutch, for example, want a deeper restructuring of Greece’s debt than France and the ECB seem willing to accept, he said. Germany is among the AAA-rated countries that have roiled markets by seeking strict terms and trying to push bailout costs onto investors. In Greece, voters have resisted the everdeepening austerity measures demanded in return for aid. THE ALTERNATIVE Invest strategists assign a 10% probability to a euro breakup from a Greek default and say this alternative of a smaller euro zone is dismal and may result in the euro being the ultimate casualty A smaller euro zone may mean a repeat of the Great Depression, according to HSBC Holdings Plc economists Stephen King and Janet Henry. Dissolving the single currency would threaten the region’s financial system. Banks would have to disentangle a mass of cross-border assets and liabilities. The reintroduction of national currencies and legal ambiguities would rattle markets. Peripheral nations may suffer hyperinflation as their currencies plunged, while the core economies would be hammered by surging exchange rates, the HSBC economists said in a Sept. 30 report. If a weak country such as Greece left the euro first to regain control of exchange and interest rates, its new currency would drop 60%, and local borrowing costs would jump at least seven percentage points, imperiling the balance sheets of banks and companies, according to a Sept. 6 study by UBS AG (UBSN) economists. Departure from the European Union would cause trade to fall by half even with devaluation. The cost in that country would be as much as 11,500 euros a person in the first year outside the euro and 4,000 euros in following years, the UBS economists calculated. If Germany, the region’s largest economy, quit the euro, its new exchange rate would probably surge 40% and interest rates two percentage points, UBS said. Banks would require recapitalization and trade would slide 20%. Each person would lose as much as 8,000 euros in the first year, UBS estimated. The pain would probably spread. The S&P 500 Index (SPX) would tumble to about 750 from 1,203.66 on Oct. 13, and company earnings would slide as much as 45%, according to Credit Suisse Group AG strategists. THE SPARK The spark for a financial chain reaction may emerge from anywhere. The Greek parliament may not accept more budget cuts; a country such as Germany could tire of bailouts; a bank could cease to have access to shortterm funding; or international investors could run out of patience with policy makers and stop buying European assets. – From Bloomberg reports ❄ 40 CRISTAL GLOBE - October 2011 Issue 6 moved their fiscal policy stance from stimulus to retrenchment, risking prolonged stagnation, or even a contraction of the economies, the UN report noted. “Given the lack of growth in employment and wages in Europe, Japan and the United States, their policies should aim at continued stimulation of their economies instead of trying to ‘regain the confidence of the financial markets’ by prematurely cutting government spending. The main global risk is that wages and mass incomes might not increase sufficiently to feed a sustainable and globally balanced process of growth based on domestic demand.” However, the risk of a higher inflation resulting from price rise is remote, according to experts. A cause of worry is the slowing down pace of global recovery in 2011. Global GDP now is expected to grow by 3.1%, following its 3.9% increase in 2010. During the course of 2011, in many developed countries, the slowdown may even be accentuated. Governments are busy putting in place policies to cut public budget deficits or current-account deficits, the UN report warned. In effect this could mean lack of business for firms that depend on public works, besides hardship for people who depend on such services. Moreover, as indebtedness of households is still high in many countries, banks shy away from offering new financing. In effect this scenario could translate to fiscal and monetary tightening risks that could lead to a prolonged period of mediocre growth, if not outright contraction, in developed economies. “(T)here is a high risk that the eurozone will continue to act as a significant drag on global recovery.” In most developing countries, however, growth dynamics are still much stronger, driven mainly by domestic demand. Growth rates in developing countries are likely to remain much higher – at almost 6.5% – than in the developed countries. In many developing countries, growth has been driven more by domestic demand than by exports. Emerging market economies such as Brazil, India, South Africa and Turkey (G-20 members) have their own set of problems that have to do with short-term capital inflows attracted by higher interest rates. Such inflows not only put pressure on their domestic currencies but also weaken their export sectors and widen their current-account deficits. Though expansion has remained strong in the developing world in general, North Africa and some countries in West Asia face the lingering impacts of the recent political unrest. The Arab Spring has adversely affected investment and tourism, and in turn growth. In the unfolding scenario that is rather sober, observers see muting of the capital mantra of a reduced role of the State in economic management. On the contrary, business and financial leaders in many countries – across developed and emerging market economies – have demanded and gained packages to restore demand and to offer safety net. The governments have often come across as “buyers and borrowers of last resort.” A ‘Keynesian moment’ once again so to say. ❄ By increasing our global presence, staying in the forefront of new titanium technologies, protecting the environment, and giving back to the communities where we work, Cristal Global strives to be a model corporate citizen and a name synonymous with the benefits of titanium products. We are committed to the well being of our employees and communities. As a critical component of who we are and what we wish to be, our commitment to Safety, Health and Environmental Stewardship is a prominent part of our company culture. We constantly strive to excel in our safety, health and environmental performance. Cristal Global Locations www.cristalglobal.com