- Evonik Industries
Transcription
- Evonik Industries
Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 The Green Power of Chemistry Developments in the field of chemistry make a sustainable lifestyle possible 1_Evonik_02-10_EN 1 03.09.2010 12:54:24 Uhr www.evonik.com Who helps turn sand into solar cells? We do. Sand becomes solar silicon, and solar silicon becomes solar energy: We deliver indispensable base elements for the low-cost production of solar cells. We are the creative industrial group from Germany active in the fields of Chemicals, Energy and Real Estate. With over 100 production sites in around 30 countries we are one of the world’s leading providers in the profitable specialty chemicals market. 216403_SandkastEvonikMagENG.indd 1 60_Evonik_02-08_EN 60 05.05.2008 16.05.2008 12:20:22 10:53:22 Uhr FOREWORD 3 There’s No Progress Without Chemistry PHOTOGRAPHY: BERNHARD HUBER Professor Dr. Hans-Jörg Bullinger, President of the Fraunhofer Society, writes about the challenges facing chemistry at the end of the oil era “Mister Innovation,” Hans-Jörg Bullinger, is head of the Fraunhofer Society Shaping technological change—In Germany, the period of strong growth in the chemicals industry, automaking, and mechanical engineering is already over. Germany as a research location is still a leader in these technological fields, which have a great economic impact. But a transformation has begun, and these industries are facing huge challenges. The chemicals industry must shape the change to white biotechnology, even though there will still be a place for traditional methods, and the automotive industry must shape the change to electromobility. The basic raw materials of industrial society to date—coal, oil, and natural gas—are growing scarce and thus increasingly expensive. Climate change and stricter environmental laws are demanding new alternatives. Going places with e-mobility—The development of electromobility is dependent on its key component, the battery. Germany should make massive efforts to occupy a leading role in battery technology. In recent years, the universities have abolished almost all of the professorships for electrochemistry. This is having an effect on the publication statistics for German scientists in the area of electrochemistry, especially in the field of battery technology. Similarly, the number of patents registered by German companies and research institutes in this field is not very promising. The Fraunhofer Society has launched extensive measures to build up research capabilities in these areas. The German Research Foundation (DFG) has started a research initiative regarding high-performance lithium batteries. It would make sense to concentrate in the future on batteries of the next generation. Replacing oil gradually—Biomass is the only alternative source of carbon for the chemicals and pharmaceutical industry. The use of biogenic raw materials is inextricably linked with industrial biotechnology. Sustainably produced raw materi- als are used to manufacture chemical and pharmaceutical products as well as foodstuffs, feed products, and energy sources. Today, German industry is already using more than two million tons of sustainably produced raw materials, which is about ten percent of all chemical raw materials. The prerequisites for increasing this percentage are sufficient availability, constant high quality, and competitive prices. These requirements can be met by developing new biotechnological processes and biocatalysts that are highly selective, economical, and sustainable. All of the world’s leading chemicals companies agree that biotechnology is the key technology of the 21st century. The Fraunhofer Society has addressed this challenge by launching an interdisciplinary research association that consists of eight Fraunhofer institutes and aligning its process technology research in this direction. Taking the forest path—With the aim of becoming the world leader in biorefinery research, Germany has set up a pilot plant where industrial companies can experiment with the switch from oil to wood, which is a sustainable raw material. In June the German Minister of Agriculture, Ilse Aigner, handed over a confirmation of government aid amounting to almost €8.5 million to a research association of 20 partners that aims to commission a test plant in the chemicals industrial venue Leuna by the end of 2011. In recent years, research partners such as Bayer, Evonik, and the Fraunhofer Society, coordinated by the Society for Chemical Engineering and Biotechnology (Dechema), have developed a process that transforms wood into cellulose, hemicellulose, and lignin of previously unattained high quality and converts these into sugar. This is the starting material for chemical and biotechnological processes. Using biotechnologies—The research area of industrial white biotechnology is especially important for the chemical, pharmaceutical, biotechnology, and food industries. These areas, together with the users of their products—for example, the plastics, automotive, and electrical industries—will have a decisive impact on biotechnology. From the perspective of industry and research, biotechnology is an important growth market that also offers tremendous innovation potential. There’s a great deal of interest in systematic process technology solutions that not only encompass the entire field of processes—in other words, everything from the biogenic raw material, enzymes and biotransformation processes to the bio-based product— but also take sustainability into account. When it comes to chemical and biological process technology, Germany also has an excellent opportunity to participate in the growth markets of the future. “To address our global challenges, we have to gain advantages from efficiency and help achieve sustainability.” Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 3_Evonik_02-10_EN Abs1:3 03.09.2010 16:25:09 Uhr 4 CONTENTS The Authors The authors whose contributions made this special issue possible: Prof. Dr. Hans-Jörg Bullinger, President of the Fraunhofer-Gesellschaft, has not only been honored with numerous international awards; in 1998 he also received the Order of Merit of the Federal Republic of Germany for outstanding service to science, business, and society Markus Honsig is a freelance journalist and author. His work focuses on topics such as the development of the automobile and its importance for the environment, business, and society Dr. Klaus Engel speaks with Dr. Thilo Bode Page 6 Dr. Godwin Mabande works in Ludwigshafen Page 12 Klaus Jopp is a freelance journalist and editor specializing in the natural sciences and technology. He is the author of the book Nanotechnologie – Aufbruch ins Reich der Zwerge (Nanotechnology—Setting Course for the Land of the Dwarves) Michael Kömpf is a science journalist specializing in medicine and technology. He writes about innovative technologies for science and business media Christiane Oppermann is a freelance business journalist and author. She has served as an editor at Manager Magazin and Stern as well as a department head at Woche Dr. Brigitte Röthlein is a science author. Her latest book is about the Curies: Marie und Pierre Curie – Leben in Extremen (Marie and Pierre Curie—Life at the Extremes) Tom Schimmeck works as a freelance journalist for newspapers, magazines, and radio. He writes about politics, science, and technology Günter Verheugen is an honorary professor at the European University Viadrina in Frankurt (Oder). Until February 2010 he served as the European Union Commissioner for Enterprise and Industry Dr. Caroline Zörlein is a science journalist and chemist. She writes for general interest media and corporate magazines The latest generation of cars are light thanks to plastics, carbon fiber, and chemicals—and sporty like the McLaren MASTHEAD Publisher: Evonik Industries AG Christian Kullmann Rellinghauser Str. 1–11 45128 Essen Publication Manager/ Head of Corporate Internal Communications and Group Media: Stefan Haver Editor in Chief: Sven Scharnhorst (responsible for editorial content) Art Direction: Wolf Dammann 4_Evonik_02-10_EN Abs2:4 Final Editing: Michael Hopp (Head), Birgitt Cordes Documentation: Kerstin Weber-Rajab, Tilman Baucken; Hamburg Managing Editor: Stefan Glowa Design: Teresa Nunes (Head), Anja Giese/Redaktion 4 Picture Desk: Ulrich Thiessen Copy Desk: Wilm Steinhäuser Publisher and address: HOFFMANN UND CAMPE VERLAG GmbH, a GANSKE VERLAGSGRUPPE company Harvestehuder Weg 42 20149 Hamburg Telephone +49 40 44188-457 Fax +49 40 44188-236 e-mail cp@hoca.de Translation: TransForm, Cologne 03.09.2010 16:27:00 Uhr CONTENTS 5 FOREWORD 3 There’s No Progress Without Chemistry Prof. Hans-Jörg Bullinger, President of the Fraunhofer Society, on the challenges facing chemistry at the end of the oil era DEBATING 6 Dialogue Dr. Klaus Engel debates Dr. Thilo Bode on reconciling the economy and ecology. What responsibility does the chemical industry have? DEVELOPING 12 German Chemicals Take On the World Uta Heinrich and Volkhard Czwielong are working for progress in Marl Page 42 The new markets are on the other side of the globe, where new players from China, India, and the Middle East are taking their place on the world’s chemicals stage. How is the German chemical industry meeting the challenge? DESIGNING 28 Günter Verheugen The chemical industry used to spark fierce debates, but today people are talking about the many solutions it offers for future problems. An essay SHAPING PHOTOGRAPHY: MCLAREN AUTOMOTIVE, KIRSTEN NEUMANN, BASF SE, CATRIN MORITZ, YOUNICOS, MONTAGE: THOMAS DASHUBER, ULLSTEIN BILD/AISA; COVER ILLUSTRATION: AXEL KOCK 32 Chemistry Gives Automobiles Wings MP4-12C Page 32 Management: Manfred Bissinger, Dr. Kai Laakmann, Dr. Andreas Siefke Publication Manager: Dr. Ingo Kohlschein Production: Claude Hellweg (Head), Oliver Lupp New materials and technologies are ushering in a new age of automotive design, and permanently changing the way we look at mobility EXPERIENCING All solar technology is chemistry Page 46 42 The Battle of the Backyard Many Germans immediately get up in arms whenever an industrial project is being planned—even if the plans call for a biogas facility or wind turbine. RECOGNIZING 46 Catching Rays with Chemistry Whether its solar cells or energy storage systems, energy-efficiency technologies have one thing in common: They are based on discoveries in chemistry ACHIEVING 52 The Women After Curie A hundred years ago, Prof. Marie Curie won the Nobel Prize for chemistry. Today many women study chemistry, but few go on to occupy top positions LIVING 58 Microzoos for Saving the World Dr. Bettina Lotsch, a professor at age 32 Lithography: PX2, Hamburg Printing: Neef+Stumme premium printing, Wittingen Copyright: © 2010 by Evonik Industries AG, Essen. Reprinting only with the permission of the publisher. The contents do not necessarily reflect the opinion of the publisher. Page 52 Contact: Questions and suggestions on the contents of the magazine: Telephone +49 201 177-3831, Fax +49 201 177-2908, e-mail magazin@evonik.com Tom Schimmeck reports on biochemistry, the solution to global problems Questions about orders or subscriptions: Telephone +49 40 68879-139 Fax +49 40 68879-199 e-mail magazin-vertrieb@hoca.de CHROMA-CHEM®, COLORTREND®, DYNACOLL®, DYNAPOL®, PLEXIGLAS®, ROHACELL®, STOKO®, and VESTAMID® are registered trademarks of Evonik Industries AG or one of its subsidiaries. They are indicated in capital letters throughout the text You can also find this issue of Evonik Magazine online at www.evonik.com Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 5_Evonik_02-10_EN 5 07.09.2010 17:16:44 Uhr 6 D E B AT I N G “The Million-Dollar Question” Dr. Thilo Bode is the founder of the Foodwatch consumer protection organization. Prior to that, he served as an executive at Greenpeace. His most recent book is Abgespeist 6_Evonik_02-10_EN 6 Evonik Magazine: Dr. Engel, you are the CEO of an internationally operating industrial group that is soon to be listed on the stock market. What do you feel more committed to: your shareholders’ earnings or the common good? Klaus Engel: That’s one of the million-dollar questions. The most recent financial crisis demonstrated that a one-sided focus on short-term profit is not very helpful. It also revealed that although we’ve talked a lot about sustainability during the past few years, we haven’t really taken the topic seriously. We need to think about future generations. But to answer your question: Acting responsibly also means balancing different interests. We need capital in order to do business, but we also have to use labor and other resources carefully and think hard about how to create value for all of the stakeholders. Dr. Bode, you studied economics, and you’ve very successfully served in several positions, some in the private sector. You were the head of Greenpeace for 12 years, and in 2002 you established the Foodwatch consumer protection organization. Did you do an intentional about-face, or has your career simply developed in a logical direction? Thilo Bode: If I could first briefly comment on Dr. Engel’s answer… Engel: …yes, please. Bode: First of all, the financial crisis did not occur because of the pursuit of short-term profit but instead because governments gave bank managers instruments that rendered basic banking regulations inoperative. Secondly, what you said about divided responsibility is sugar coating. Everybody knows that when things get difficult, companies must think primarily about their profits—and there’s absolutely nothing wrong with that. After all, it’s not their job to save the world. Please don’t take this personally, but I consider all the babbling about corporate social responsibility to be nothing but hot air. Now to answer the question: I didn’t switch sides. I’m still fighting on the same front, it just involves different aspects. The environment is a legally protected common good, and consumer protection—admittedly a horrible phrase— involves protecting individual consumer rights. In both cases, the idea is to roll back the inordinate amount of influence that business has on government. Basically, we’re foot soldiers fighting for the common good—but without weapons. 13.09.2010 12:59:00 Uhr D E B AT I N G 7 Can economy and ecology be reconciled? What is the responsibility of the chemical industry in this regard? Klaus Engel, CEO of Evonik and president-elect of the German Chemical Industry Association, debates Thilo Bode, founder of Foodwatch and former executive director of Greenpeace HOST MANFRED BISSINGER PHOTOGRAPHY KIRSTEN NEUMANN Dr. Klaus Engel is a chemist who began his career at Chemische Werke Hüls. He has served as the CEO of Evonik Industries AG since January 1, 2009 Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 7_Evonik_02-10_EN 7 13.09.2010 12:59:11 Uhr 8 D E B AT I N G “I reject the suggestion put forth by business that all problems can be overcome with technology” Thilo Bode One of the biggest issues in recent decades has been how to reconcile economy and ecology. Do you have the feeling that progress has been made—and if so, what type of progress? Bode: Reconciliation has not succeeded, and anyone who says anything different is not paying attention to the facts. We probably lost the battle against global warming long ago, and we’re losing the fight to maintain biodiversity, which is the second major issue. Now to the microeconomic level: When Mr. Engel uses his amino acids to make poultry feed processing a little more efficient and thus helps to reduce greenhouse gas emissions from meat production, he’s making money while he’s doing it, and what he does is also good for the climate. However, this microeconomic reconciliation of ecology and economy changes nothing in terms of the negative global situation. Are we experiencing a painful process that will require even more courage on our part in the future? Engel: We have set ourselves an ambitious goal, and 8_Evonik_02-10_EN 8 I am convinced that we can only achieve it through constructive dialogue with all the parties involved— businesses, governments, unions, churches, and of course NGOs. We need to organize this dialogue in an impartial manner. We in the chemical industry, at least, are striving to reconcile economic, environmental, and social needs. Bode: You wanted to answer the question about reconciling economy and ecology. We’ve already had enough dialogue. All everyone does is talk… Engel: …so why isn’t anything happening, Mr. Bode? Bode: Because responsibilities aren’t being clearly delineated and there has been no clear commitment by business to accept the role of a strong government. We need laws and regulations. There can be no sustainability without national and international intervention in the market. Such intervention has to happen, and companies finally need to honestly answer the question as to the role government should play. Do governments and the political parties that form them understand what’s at stake here? Engel: It’s true that economic and environmental concerns have not yet been reconciled in all areas. We need to keep working toward this goal, as it is still a very important task. On the other hand, I believe it’s unfortunate that during the crisis the government degenerated into a type of repair-shop outfit. Government should not try to act as though it were better at conducting business than the businesses themselves; instead, it should establish the key framework conditions. We need to reach a basic consensus that is acceptable for all social groups on how we wish to shape the future. And it’s important that the NGOs are involved here as well, Mr. Bode. Bode: I don’t agree with your view of the role of government. Seeking consensus is not the main job of the state. The primary task of government is to weigh conflicting interests and then to make decisions—if necessary, against the interests of business. What I’ve seen, however, is that governments have largely surrendered their regulating function. This was very clear to see during the crisis, when governments were unable to implement the necessary capital market regulations, not because they didn’t want to but because the influence of the financial sector was too strong. Corporations are working both sides of the street. On the one hand, they produce glossy brochures about social responsibility, while on the other hand they de- 13.09.2010 12:59:18 Uhr D E B AT I N G 9 ploy armies of lobbyists fortified with billions of euros in order to shoot holes in the regulations and established standards that govern sustainability. This has to change. So there’s no chance that we’ll see an alliance of reason and responsibility between government, industry, and the citizens? Bode: That’s completely idealistic. What we need to do is to look at the conflicting interests of the parties involved. Businesses have an obligation to generate profit for themselves and their shareholders. Mercedes is the market leader for large sedans; it can’t simply start building bicycles overnight. That would be economic suicide. Alliances? What’s supposed to come of that? Either business gets its way or we get solutions without substance and a dreadful type of regulation chaos, simply because no one has clearly addressed the competing interests involved. What we need is clear and honest debate and less cheap talk. Engel: I’m not that pessimistic. After all, we’ve made good progress—and in a few cases even done too much good, if you look at some of the regulations we now have. Mr. Bode, some of our laws here in Germany are now more restrictive and far-reaching than those in any other country worldwide. We therefore have problems with competitiveness because we’ve decided to be the pioneer in environmental technology. That’s all right, and we can accept it as long as jobs aren’t transferred out of the country and we don’t dismantle our industrial base. We put a lot of effort into the EU’s REACH legislation in order to regulate the use and production of chemical substances—to enhance consumer safety, among other things. But we also have to state clearly that if we want to live in a no-risk society, we’ll end up sitting on the sidelines of the development of key future technologies and all the opportunities they offer. And it also means that people will have to sacrifice some of their prosperity. Bode: If we succeed here in defining clear positions on both sides, then we’ll already have accomplished a lot. Our goal in this discussion is not necessarily to generate a single opinion. The chemical industry has manufactured some horrible products over the years and contaminated the world with toxic chemicals. Nevertheless, it’s quite useful that you are now developing technologies for vehicle tires that reduce fuel consumption by ten percent—hats off to you! Still, we need to establish a consensus that this is not enough. Sustain- ability requires us to think in broader terms. Of course competitiveness plays a role, and I’ll also concede that you’ve accomplished some things. My point is that it’s still not enough. Engel: I agree. I can understand your criticism, and I believe some of it is justified, but we should nonetheless not really try to turn back the clock and create paradise-like conditions so that we can live like Adam and Eve. We can’t do that, and we don’t want to either. Can you be more specific? Engel: Here in Europe, we already live in a highly developed region, which is why we don’t have the right to tell the emerging markets they’re not allowed to catch up with us. Even though we’re giving them excellent advice, that realization is also part of the challenge of preventing the planet from getting even further out of balance. Whether it’s energy consumption, climate change, or the question of how we can feed all these people, and what that will mean for the agricultural system, the water supply, and all other resources—my belief is that we can only overcome this challenge if we utilize the technologies that are already available today. This process can pose risks and will consume resources. However, people need to know that the luxury we enjoy cannot simply be ordered on the Internet without any risk. Bode: Again I have to disagree with you. Along with industry’s lack of acceptance of the role of government, you’ve also got another blind spot: the limits of growth. I’m a huge fan of technology—but the only thing we can do with it and the associated increase in resource efficiency is to postpone the day when the limits are reached. Moreover, it’s for society to decide whether it wants to accept the risks of technology. I reject the suggestion put forth by business that all problems can be overcome with technology. The best example is the electric car. Here, the automotive industry wants us to believe that we can keep driving a two-ton Daimler—all we have to do is to stick a plug into an electric socket, otherwise everything stays the same. That’s not going to happen, of course. The electric car will remain strictly an urban vehicle in the foreseeable future, and the heavy highway gas guzzler will become a thing of the past because we’re going to run out of oil. So if you want to call for an alliance of reason, please be more honest. Engel: That’s a good example to get a serious discussion of the problems going. Okay, let’s talk about “We in the chemical industry, at least, are striving to reconcile economic, environmental, and social needs” Klaus Engel Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 9_Evonik_02-10_EN 9 13.09.2010 12:59:25 Uhr 10 D E B A T I N G “We probably lost the battle against global warming long ago” Thilo Bode Meeting in Essen: Greenpeace and Foodwatch activist Thilo Bode (left) poses critical questions to Evonik CEO Klaus Engel in a debate hosted by Manfred Bissinger 10_Evonik_02-10_EN 10 the hype associated with the electric car. Obviously a lot of what’s being propagated now is of a dubious nature and questionable from an objective point of view. I would much prefer it if we realized that electric vehicles are an option that will give us the confidence to solve a key future issue, rather than hyping them like the bubbles we’ve all seen burst in the past. The fact is that we can’t get people to abandon their desire for individual mobility—not here and not in the emerging markets. And if we’re going to take sustainability seriously over the long term, we have to accept the fact that fossil fuel resources are finite. Oil most of all? Engel: Definitely—and there are much better uses for oil than simply burning it in an automobile. Bode: In 2020 we will have perhaps one million electric cars on the road in Germany and six million worldwide. That’s the pitiful reality. The other reality is that all the additional oil that’s been extracted since 2000 has come from offshore wells, and we’re all familiar with the dangers and risks involved with those. Just think about Deepwater Horizon and the Gulf of Mexico. For that reason alone, we’re only deluding ourselves if we think that individual mobility will still be the same in 30 years as it is today, only electric. So the industry is not coming clean with consumers. What we need to do right now is to drastically reduce the fuel consumption of automobiles. Engel: Electric drives represent one option for making the individual mobility of the future more environmentally friendly. The other option is to develop technologies that conserve fuel. Think about how long we’ve been talking about hydrogen. I’m not trying to play off one option against the other; I’m just saying I think various options are important. What I definitely don’t want to see is a situation where we fail to act in time, and then one day start demanding that a new technology be developed in five years because oil has now really become scarce, prices are increasing, and social tension is rising. It takes decades to develop alternative technologies. That’s why I’m optimistic about electric mobility. I’m also aware that the petroleum industry has forfeited a great deal of credibility because of Deepwater Horizon. We can’t allow such things to occur if we want the risks and opportunities associated with our technology to be assessed free of ideological bias. If industry says something is safe, then it has to be safe. However, even the worst setbacks should not be allowed to stop us from seeking an open dialogue. And that should be the case whether the issue is electric mobility, nanotechnology or biotechnology. I don’t mean to be trite here, but at the end of the day, life itself is perilous. Bode: At least the Deepwater Horizon disaster has directed massive attention to the fact that automobiles will remain linked to oil for many years to come. As a consequence, we urgently need to reduce fuel consumption. Has Deepwater Horizon also been a disaster for lobbyists—and did they mislead the U.S. government by giving it a false sense of security? Bode: The situation with lobbyists is a permanent catastrophe. Governments are already allowing business to determine policy to a large extent—and this is happening at every level. Engel: Mr. Bode, aren’t NGOs also lobbies? Bode: Absolutely—we’re lobbyist organizations, no doubt about it. Engel: There’s nothing wrong with lobbying per se… Bode: … you’re absolutely right. Constitutionally speaking, there have to be lobbies because the government cannot make proper decisions by itself. A democratic government actually has an obligation to listen to different interest groups, consider their proposals, and then make decisions in the interest of the common good. However, the lobbying power of NGOs is nothing compared to that of industry, with its political donations, privileged access to politicians, personal relationships with government officials, and threats to eliminate jobs. So what do you propose? Bode: We have to stop deluding ourselves that an appeal to morality will cause companies to conduct business with sustainability in mind. What we need are sustainability-minded entrepreneurs who also regard themselves as good citizens. And I may be talking more like a capitalist than you now, but what’s being delegated today to corporations, to so-called global responsibility, is customer fraud. Engel: That doesn’t help much in terms of solving problems. Bode: You’re right—and that’s why you also need to be extremely careful with noble claims such as “We corporations are taking on global responsibility.” The chemical industry cannot save the world! Sometimes it’s better to set your sights a little lower. 13.09.2010 12:59:28 Uhr D E B A T I N G 11 Dr. Engel, does this mean that you’re about to take on a new responsibility? Engel: To be completely open and personal here, I did a lot of soulsearching while I was trying to decide whether I should run for president of the German Chemical Industry Association. I have a pretty busy workday. I don’t suffer from boredom—we face a lot of big challenges at the company. In the end, I decided to make myself available because there are a lot of overlapping issues that are worth addressing. I’m taking on this responsibility because I’m convinced we need to make it clear to the public that Germany must remain an industrial nation. Bode: Is anyone questioning that? Engel: Mr. Bode, you’d be surprised by the kinds of discussions we have to face these days… Bode: …with whom? Engel: With neighbors, employees, political parties, and NGOs. For example, with regard to questions like: Where are we planning to build new power plants in the near future? What kind of plants will they be? What type of infrastructure do we need to have? Anti-industry sentiment has grown in our country, but we nevertheless need to have manufacturing industries. Bode: I’m entirely on your side here. Germany must and should remain an industrial nation. Engel: There’s also another point that’s important to me: It’s time we took a balanced view of the opportunities and risks associated with technology. This applies to nearly everything we do every day, but it’s especially important in terms of the chemical industry. There are a great many things whose continued development is worth fighting for—for example, biotechnology and nanotechnology. Of course there are examples of where things have gone wrong, but the fact is that the only way we can overcome the great challenges we face is if scientists and engineers achieve technological progress. Yes, we also need to change the way people in our society behave and reach a new consensus on our value priorities and the way we should live our lives. But we also have to take into account the fact—as we talked about before—that we won’t be able to keep people in the emerging markets from having a television, a second car, or a steak dinner. So we need consensus on this matter as well. Yes, we see the risks, and we understand that regulation is necessary—for example, we need to make sure that no one is seriously affected by our chemical production activities. The ef- “And if we’re going to take sustainability seriously over the long term, we have to accept the fact that fossil fuel resources are finite” Klaus Engel fect on people, the environment, and natural resources should be as beneficial as possible. I plan to work on that, but there’s no way I want to create the illusion that we can maintain our prosperity, not to mention increase it, without consuming resources and without risk. Making such a claim would be like promising to square a circle. So you are talking about an alliance of reason after all. But what is the goal? Engel: I want to help further develop and expand the magic triangle between ecology, economy, and social needs. For me, that means we need to talk to each other without bias and with respect, as we have done in this discussion. That’s how we learn from one another. Bode: My goal is not to appeal to people to become better human beings. Instead the important thing is to shape progress in a way that leads to an honest consideration of various interests that allows governments to make truly autonomous decisions. Ultimately, my vision is one of a democracy that actually functions the way it should. Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 11_Evonik_02-10_EN 11 13.09.2010 12:59:40 Uhr 12 D E V E L O P I N G German Chemicals Take On the World Today’s new markets lie on the other side of the globe from Europe. New players from China, India, and the Middle East are moving onto the international chemicals stage. How is the German chemical industry responding to the challenge? Evonik Magazine looks at the sector TEXT MICHAEL KÖMPF, CAROLINE ZÖRLEIN PHOTOGRAPHY: BASF SE CHEMISTS ARE NETWORKERS: They link molecules to form long chains, bind carbon with fluorine, or join aluminum atoms with nitrogen. Such detailed processes at the molecular level have their counterparts in the chemical industry’s activities in the macrocosm of the global economy. Practically no other industry has as extensive an international network, or has played such a pioneering role in globalization. Today, oil, natural gas, lithium, and phosphorus are shipped around the world, as are their primary and intermediate products. These substances are then processed around the globe into insulating boards, dashboards, medicines, and batteries. Chemicals are a major part of our daily lives. They’re with us when we brush our teeth, work on our laptops, drive our cars, or take a painkiller to relieve a headache. The chemical industry is also a key sector of the global economy. The special thing about this sector is that its small and medium-sized companies are seldom suppliers; they’re more likely to be customers of major corporations. Germany’s chemical industry is ranked fourth in the world, behind the U.S., China, and Japan. “Germany is also the largest producer of chemicals in Europe, with a share of 25 percent of total production,” says Dr. Utz Tillmann, Director General of the German Chemical Industry Association (VCI). Due to the economic crisis, the country exported “only” €123.2 billion worth of chemicals in 2009, as compared to €139 billion in 2008. More than 60 percent of Germany’s chemical exports remain within the EU, where the largest recipients are Belgium, France, and the Netherlands. Some 12 percent of the chemical exports are shipped to Asia to meet the rising demand there. Whereas the production of basic chemicals is handled by around 150 large companies, the German chemical processing industry encompasses some 1,900 small and medium-sized firms. German chemical companies are still growing more rapidly and profitably than their international rivals. “Nevertheless, the pressure to adapt structures has grown as a result of the economic and financial crisis, and this pressure will significantly change the chemical industry landscape in the years ahead,” says Dr. Wolfgang Falter, Managing Director of the AlixPartners GmbH consulting firm. Falter also predicts a significant shift of the focus of power in the chemical market: “We’re going to see a shift from the world’s leading markets—North America, Western Europe, and Japan— to the growth duo of the Middle East and Asia.” As an example, he cites the automotive industry, a key market for the chemical sector. Whereas the demand for automobiles is basically stagnating in Western Europe, it is growing rapidly in China and India. That’s why these countries are becoming the location of choice for new production facilities. Where demand is growing The number of new consumers in China and India who are pushing up the demand for chemicals due to their rising incomes is set to skyrocket over the next few years. The situation is exactly the opposite in Europe. “European populations are declining, which means that fewer products that require chemicals, like cars and refrigerators, are being bought,” says Thomas Rings, a partner at the A.T. Kearney GmbH consulting company. However, demographic transformation also presents a challenge to China, as no other emerging market is aging as rapidly as that country. In the Middle East, on the other hand, a new and dynamic society is coming of Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 12_Evonik_02-10_EN 12 03.09.2010 13:18:08 Uhr D E V E L O P I N G 13 BASF: LUDWIGSHAFEN Ludwigshafen is BASF’s largest production location worldwide Catalysis research is carried out at the “Chemicals Research and Engineering” competence center at the Ludwigshafen location. Laboratory Director Dr. Godwin Mabande is one of the 33,000 employees at BASF Ludwigshafen. The ten-square-kilometer site is home to the company’s headquarters and the center of its research and production 13_Evonik_02-10_EN 13 03.09.2010 13:18:21 Uhr 14 D E V E L O P I N G BAYER: SHANGHAI The plant in the Shanghai Chemical Industry Park is Bayer’s largest foreign investment project Bayer has a production facility for the polycarbonate Makrolon at the Shanghai (China) location. In the polycarbonate color laboratory, the chemists Polo Zou (left) and Jenny Yan (right) work on the color chips made of Makrolon. These color chips are used in quality control and when new colors are being developed. Bayer has approximately 21,600 employees in the Asia-Pacific economic region Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 14_Evonik_02-10_EN 14 03.09.2010 13:18:37 Uhr D E V E L O P I N G 15 Trying to describe the German chemical industry as a whole is like trying to explain the range of products in a large department store: There’s simply everything. In keeping with this analogy, you can also say that the chemical industry even includes architects and construction companies—like those who help build department stores. The German Chemical Industry Association (VCI) alone represents some 1,600 German chemical companies and German subsidiaries of foreign corporations, whose areas of expertise range from the development of highly specialized additives to the planning and construction of process engineering facilities. Plastics, medications, pesticides, creams, oils, glues, paints, and detergents are also part of the industry’s portfolio. The list goes on and on—and the competition in the international chemical sector is very fierce Competition among the new chemical-producing nations has begun age. AlixPartners predicts that the share of global demand for chemicals that is accounted for by China (not counting the pharmaceutical or petroleum industries) will rise from the current 9 to 15 percent by 2020. The firm’s experts also estimate that the Middle East’s share of demand will rise from 4 to 12 percent during the same period, while the figure for Western Europe will fall from 25 to 18 percent. The demand for chemicals is in fact rising in Western Europe, but the markets outside the region are simply growing much faster. PHOTOGRAPHY: BAYER In the passing lane “Together with the establishment of extensive new production capacity, the cost benefits in the Middle East will put substantial pressure on manufacturers of basic chemicals and plastics,” says Tillmann. The rapidly growing companies in the Middle East region are exporting more of their products to China, and they’re also moving into Western markets. They are taking full advantage here of their proximity to sources of oil and natural gas, as well as their large brand-new facilities. According to AlixPartners, the Middle East alone will expand the global market capacity for polyolefins such as polyethylene and polypropylene (key raw materials for the chemical industry) by eight percent by the end of 2010. The companies in this region are being helped by the expansive economic policies of their governments. The share of global economic activity that is accounted for by the developing countries and emerging markets will soon surpass that of the traditional industrialized nations for the first time. The weighting for these aspiring nations will reach 57 percent by 2030, according to the Organization for Economic Cooperation and Development (OECD). The future leaders of the global chemical market can already be clearly discerned today: “Cheap raw materials and rapidly growing sales markets have provided companies in the East with a solid foundation for moving into the global market,” says Falter. Relatively new players from the Middle East and Asia, such as Saudi Basic Industries Corporation (SABIC), China Petroleum & Chemical Corporation (Sinopec), and the Indian company Reliance Industries Limited have embarked on a path of rapid growth and are on the verge of taking over the top positions in the global chemical industry. “Companies that started out as petroleum processing firms later moved into basic polymers and are now specialty chemical enterprises,” says Rings. These new global players are also benefiting from state-of-the-art industrial facilities. “Although German plants have been optimized to an extent that makes them world champions of energy efficiency, many of them are 20 years old,” says Oliver Rakau, an economist and chemical industry expert at Deutsche Bank Research. “What’s more, factories in the Middle East are being built right next to oil wells.” Major market advantages are also being achieved through the extremely low raw material costs associated with “stranded gas”—small natural gas fields for which the construction of pipelines to consumer regions would be unprofitable. On top of that, South America—especially Brazil—is now looking to advance further in the global chemical club. Still, most German companies have done their homework very well. “In terms of growth and profitability, they’ve outperformed chemical companies in the U.S., Japan, and the rest of Asia on the world market and during the latest crisis,” says Falter, who also points out that the German chemical industry has created Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 15_Evonik_02-10_EN 15 03.09.2010 13:18:52 Uhr 16 D E V E L O P I N G PHOTOGRAPHY: KARSTEN BOOTMANN The German chemical industry has done its homework competitive revenue and cost structures over the past 20 years. “The chemical sector increased its revenues by 57 percent to €176 billion between 1995 and 2008,” Falter reports. Companies have consistently taken advantage of growth opportunities in international markets, thus stabilizing their positions in their home markets, according to Falter. A further element of their strategy is energy and resource efficiency. “Over the past 20 years, the chemical industry in Germany has reduced its greenhouse gas emissions by 37 percent, despite doubling its production,” says Tillmann. Major German companies have long since stopped thinking in terms of nationality, as BASF, Bayer AG, Linde AG, Henkel AG & Co. KGaA, Lanxess AG, Evonik Industries AG, Wacker Chemistry AG, and others are now focusing on attaining international technology leadership in their respective fields. These days, they not only generate most of their revenue abroad but are also shifting their still balanced workforce numbers for employees at home and abroad in favor of their growing international production locations. Speaking at the 2010 BASF Annual Meeting, the company’s CEO, Dr. Jürgen Hambrecht, predicted that “50 percent of the future growth of the chemical industry will take place in Asia.” BASF, the leading chemical company in the global rankings, has therefore set itself ambitious goals, such as achieving annual growth in the Asia-Pacific region that is two percentage points higher than that of the market and generating 70 percent of its regional revenues with local production. This will require capacity expansion, and to this end BASF will invest $1.4 billion in the expansion of its Nanking facility in China. Bayer AG—Germany’s second-largest chemical company in terms of revenues—is also stepping up its activities abroad. Between 2006 and 2009, the company increased its workforce in the BRIC countries (Brazil, Russia, India, and China) by more than 40 percent, to 15,000. Bayer also plans to invest €2.1 billion between now and 2012 solely for capacity expansion at its MaterialScience subgroup in China. In addition, the company is investing €100 million in a pharmaceutical research center in Beijing. Step by step into global markets The German presence is thus growing throughout the dynamic Asian region—and Evonik is no exception. In Shanghai, for example, Evonik has invested approximately €250 million in a facility for producing methyl methacrylate (MMA), which is used to manufacture PLEXIGLAS. The plant is part of a networked installation at a huge chemical park on the outskirts of Shanghai. “Despite the economic crisis, we made the secondlargest investment in our company’s history because we believe in China’s future,” explains Evonik’s CEO, Dr. Klaus Engel. Medium-sized companies aren’t idly standing by either: “Small and medium-sized companies are now specializing in specific products and thus focusing on a smaller group of customers,” says Tillmann. One approach that usually works is for small companies to go global through their relations with globally active major customers in their home market. This helps them avoid teething problems and financial losses. The chemical sector is generally well prepared to cope with the increasing global competition. The German chemical industry’s solid position is largely due to the structural transformation that has taken place over the past few years. Throughout most of their histories, German chemical companies were highly integrated Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 16_Evonik_02-10_EN 16 03.09.2010 13:19:04 Uhr D E V E L O P I N G 17 EVONIK: THE NETHERLANDS Almost 300 employees at five locations worldwide work on products and solutions which are marketed under the brand names COLORTREND and CHROMA-CHEM The Evonik Business Unit Coatings & Additives comprises a total of 21 production locations and technology centers worldwide. Patrick Peeters is employed by the Colorants Product Line. He works in Maastricht (The Netherlands) in the Color Service Department, which develops the color recipes for the paint and coatings industry. Evonik Colortrend B.V. has approximately 100 employees in Maastricht Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 17_Evonik_02-10_EN 17 03.09.2010 13:19:16 Uhr 18 D E V E L O P I N G MERCK: MEXICO CITY Products for the Latin American pharmaceuticals market are manufactured in the Mexican capital The quality of the pharmacological raw materials is controlled in the Manufacturing Conditioning of Injectable Substances & Liquids department. Chemists Estela Estrade and David Arias check the quality in the Raw Materials Laboratory. Merck has 1,300 employees in Mexico Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 18_Evonik_02-10_EN 18 03.09.2010 13:19:35 Uhr D E V E L O P I N G 19 PHOTOGRAPHY: MERCK Today’s specialists don’t necessarily need oil entities that covered the entire value chain—from raw materials such as ethylene and naphtha to pharmaceutical agents and bulk plastics. Two processes then began to occur around 20 years ago. The first was horizontal specialization, which saw major chemical companies with strong roots in their respective home markets transform themselves into global leaders in their segments that are continually expanding their core areas of expertise. The other development was vertical deconstruction—i.e. the outsourcing of units and services such as logistics, maintenance, human resources, data processing, and even customer relations. Complex internal corporate structures were thus reorganized with the goal of creating flat and virtual value creation networks. Both processes would ultimately help make German companies successful around the world. Companies today are focusing more and more on attaining or maintaining market leadership in individual segments. Wacker Chemistry is a good example: Although it’s only ranked 12th in the German chemical industry in terms of revenue, the company is number three in the world for silicone production—and the world market leader for silicone for building protection applications. “Horizontal integration isn’t over yet, however,” says Tillmann, who points out that takeovers, acquisitions, and spinoffs are still common in the submarkets. This trend will continue in the future. “After a decline in takeovers last year, we’re once again seeing more active buyers and sellers on the market,” says Dr. Volker Fitzner, a chemical industry expert at PricewaterhouseCoopers. The pressure to consolidate varies among the market segments, however. “Whereas the agrochemical sector is almost completely consolidated, there’s a high level of consolidation pressure in cosmetic industry raw mate- rials, for example,” says Rings. A recent example of this is provided by the BASF takeover of Cognis. Rings expects Chinese companies to get more involved in mergers and acquisitions in the future: “The only surprising thing is that this isn’t already happening on a large scale. But it’s possible that China first wants to consolidate its own highly fragmented specialty chemicals industry— and there’s a lot of movement in that market now.” Independence through specialization Specialization and specialty chemicals are the buzzwords today—and Evonik has gotten the message as well. “Our plan for Evonik is to focus on the specialty chemicals sector,” says Engel. Such a focus allows the company to more strongly disengage itself from the risks associated with fluctuating raw material prices, and from oil in general. “Specialized expertise is becoming much more important, whether it’s attained through innovative technologies or greater access to selected industrial value chains,” Rings explains. This requires bettertrained personnel, as Tillmann points out: “Knowledge is the raw material we’re using to shape the future of our society, and countries that invest more in their innovative capability end up doing better economically.” Knowledge, education, and research: It’s all about intellectual raw materials, which are especially important for the success of countries with few resources, such as Germany. However, this source of raw material could also dry up quickly. “The shortage of young engineers and natural scientists will grow over the next few decades,” says Rings, “so we need to take countermeasures here as well.” The focus on specialized markets requires even more, however: “The important thing is to have a well-functioning infrastructure,” says Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 19_Evonik_02-10_EN 19 03.09.2010 13:19:51 Uhr With the global trade in chemicals continuing to grow and the international division of labor increasing, German companies are at the forefront of the industry's development The Netherlands 11.4 Belgium 18.0 UK 7.5 Rest of Europe 4.9 Poland €7.3 billion in sales by German chemical companies from local production 11.4 France 4.8 Austria Exports to the rest of Europe 27.6 - Laundry, personal care products 9.0 Total value 2008 139.2 ALL FIGURES IN BILLIONS OF EUROS Exports make up an increasing share of sales Chemical products from Germany are increasingly developing into a leading export. With a growth rate of nearly ten percent per year over the last four years, exports have grown more than twice as fast as the German chemical industry's total sales. In 1990 less than every second metric ton was shipped abroad, but now exports account for more than 80 percent of total production. As the world’s largest exporter of chemical products, Germany will continue to benefit in the future from the dynamism of the global chemistry markets. 414.6 40 40 37.4 1990 2000 2008 30 300 27.9 2002 200 ALL FIGURES IN PERCENT 2002 2004 2004 2006 2006 ALL FIGURES IN BILLIONS OF EUROS 20 2008 2008 €8.7 billion in sales by German chemical Food, tobacco processing Publishing, printing sector 10 Total sales in billions of euros 0 0 100 SHARE OF FOREIGN SALES AS A PERCENTAGE OF TOTAL SALES 200 300 350 F EV T 9 E L O P M E N 199 M T O Research locations BASF Bayer Evonik Foreign direct investment by the German chemical-pharmaceutical industry is an important metric for its globalization. In 2008 they totaled €44.4 billion. The greatest investments were made in the USA (€10.1 billion), France (€3.6 billion), Switzerland and Belgium (€2.9/€1.9 billion). China was in seventh place, with €1.5 billion. Germany is also an attractive site for investments by foreign chemical companies. The largest investor in Germany is the Netherlands (€13.9 billion), followed by the UK and France (€5.3/€4.5 billion). Exports to Australia/Oceania companies from local production €1.0 billion Ranking of the German chemical industry by sales Exports to Latin America Investments by the chemical-pharmaceutical industry Australia/Oceania €1.6 billion in sales by German chemical companies from local production companies from local production Exports to Africa €2.2 Economic activity abroad NAFTA 26.6% Rest of Europe 10.1% EU-27 44.5% Foreign direct investment by German chemical companies Latin America 2.6% Asia 14.6% Oceania 0.7% Africa 0.9% SOURCE LARGE MAP: VCI; ILLUSTRATIONS: FLORIAN PÖHL, PICFOUR 30 SOURCE: STATISTISCHES BUNDESAMT, IKB 50 Other automotive manufacturing Mechanical engineering Medical, I&C technology Automobile manufacturing Radio, television, commuChemical industry nications technology Manufacturing of power generation equipment Paper Metal production Rubber Glass, ceramics Metal products manufacturing Furniture O €2.4 billion in sales by German chemical Foreign sales and sales of various industry sectors in 2009 70 companies from local production Africa Latin America billion A comparison with other sectors, in particular, also underscores the very important role that foreign business plays for the chemical industry. Foreign business accounts for a share of about 60 percent, making it about as important to the chemical industry as it is to the automobile and mechanical engineering industries. Many other sectors—including the glass and ceramics industry, foodstuffs or metal products manufacturing—are not nearly as globally oriented as the chemical industry and concentrate more strongly on the German market. 1.1 FRO €3.5 Sectors in comparison Asia €25.9 billion in sales by German chemical The leaders among German chemical companies are increasingly developing their research and development capacities abroad. Evonik, for instance, employs a workforce of about 2,300 people in research and development at more than 35 locations around the world. Between 1999 (initial values) and 2008 (final values), German chemical exports have generated very impressive growth rates, in some cases of more than 100 percent German sales 400 D The German chemical industry is going global 543.7 60 20 1982 1.9 Worldwide sales 500 Where the leaders research 7.9 0.6 companies from local production 600 80 6.2 8.4 €45.7 billion in sales by German chemical Worldwide sales of fine and specialty chemicals SOURCE: DESTATIS, VCI The export ratio is growing Other 0 billion Company 2009 sales in € billion 50.7 104,779 World’s largest chemical group with a broad product portfolio 2 Bayer AG 31.2 108,400 Pharmaceuticals, polymers, crop protection 3 Henkel AG &Co. KGaA 13.6 51,361 Detergents and cleansers, cosmetics and personal care, adhesives and sealants, surface finishing 4 Evonik Industries AG 13.1 38,681 Specialty chemicals, energy, real estate 5 Boehringer Ingelheim GmbH & Co. KG 12.7 41,534 6 Linde AG 11.2 47,731 Industrial gases, mechanical engineering 7 Merck KGaA 7.8 33,062 Pharmaceuticals and chemicals 8 Beiersdorf AG 5.7 20,346 Consumer goods, skin care 9 Lanxess AG 5.1 14,338 Polymers/rubber, basic and fine chemicals 3.7 15,618 Silicones, polymers, fine chemicals 11 K + S AG 4.3 15,922 Specialty and standard fertilizers, salt 2.6 5,572 12 Cognis GmbH* Specialty chemicals for detergents and cleansers, cosmetics, foodstuffs 504 China Japan 398 187 183 Germany 137 France German chemical products worldwide Pharmaceuticals, animal health 10 Wacker Chemie AG 2008 total sales in billions of euros USA Employees Fields of activity 1 BASF SE* The world’s largest chemical nations Although the Asian nations, and in particular China, are making appreciable gains, Europe and the USA are still clearly the largest sales markets for German chemical products. With a total of €18 billion, Belgium remains the largest single market, however. Just how rapidly China's hunger for chemicals is increasing can be seen in the growth that was recorded between 2004 and 2008. During this short period, the value of German chemical exports doubled, from €1.5 billion to €3 billion, surpassing the result achieved by Japan (€2.8 billion). 91 Brazil 88 UK 80 Italy 68 South Korea 58 The Netherlands 54 India Total world EU-27 2,535 770 SOURCE: FERI, VCI - Fine and specialty chemicals Enzymes SOURCE: ASF, BAYER, EVONIK 23.5 39.3 SOURCE: VCI/”DIE WELT”, JUNE 21, 2010 - Polymers (plastics) 10 Fats and oils billion S 21.5 Foodstuffs and feed 20 €15.4 Eight countries account for 71.5% of Germany’s exports to the EU-27. Exports to any of the remaining countries are valued at less than €2.5 billion RT - Petrochemicals and derivatives *North American Free Trade Agreement between the USA, Canada, and Mexico Bulk chemicals, polymers P 10.1 Pharmaceutical active substances 30 The most populous countries—China, Indonesia, and India—are among the fastgrowing chemical-producing countries in the world. China has shined, posting average growth rates of 12.8 Chemical production growth rates 2003–2008 percent between 2003 and 12.8 China 2008; for India this figure 12.6 Indonesia 12 is 8.6 percent. Another indication of the growing impor8.6 India 8 tance of China is the fact that an increasing number of 2.8 Germany companies, including BASF, 4 3.4 DuPont, Rhodia, and Dow, Worldwide average 1.7 USA have opened their own re0.3 Japan 0 ALL FIGURES IN PERCENT search facilities in the country. Exports to Asia X - Basic inorganic chemicals North America/ NAFTA nations* companies from local production 8 91.7 billion 0 Chemicals Vegetable raw materials China, the challenger €58.2 billion in sales by German chemical E 47.5 40 2005 2010 billions of euros EU-27 €88.1 0 Pharmaceuticals SOURCE: VCI Germany exported chemicals and pharmaceuticals with a total value of €139 billion in 2008. This included nearly €92 billion worth of goods from the chemical industry, with fine and specialty chemicals accounting for the lion’s share due to their high value-added. Important fields for the future are energy efficiency, environmental technology, alternative fuels, biotechnology, and nanotechnology. Germany enjoys a particularly good starting position in nanotechnology. The chemicals Germany ships to destinations around the world Exports to EU-27 billion Basic chemicals are increasingly being produced where raw materials such as oil and gas are found. Germany will focus more intensively on the production of specialty products, which require a higher level of expertise and make better value-added possible. With tailored products, the German chemical industry has good opportunities to contribute to areas such as energy and resource efficiency. Even more important in this regard are networks with customers, which generate precisely targeted innovations. The future will not be only about new materials; systems with high functionality will play the central role, with the synthesizing power of nature being harnessed with increasing frequency through the use of white biotechnology. SOURCE: VCI What the world needs €14.3 Biofuels billion 2 The trend toward fine and specialty chemicals €14.7 9.0 Italy Spain 4.9 Chemical processes can be optimized through the use of enzymes or microorganisms. Living cells such as bacteria or yeasts can be used as tiny "chemical factories.” White biotechnology is playing an increasingly important role not only in the production of fine and specialty chemicals, but also for feed additives and agricultural and pharmaceutical precursors. In addition, it has the potential to replace fossil raw materials with renewables. White biotechnology is therefore an extremely interesting field for the German chemical industry. Worldwide sales of white biotechnology are expected to total approximately €125 billion in 2010. O Exports to North America/NAFTA nations Worldwide sales of white biotechnology products SOURCE: FERI, VCI 63.3 percent of Germany’s chemical exports go the EU-27. This corresponds to goods with a value of more than €88 billion for 2008. The most important trading partners are our direct neighbors: Belgium, followed by France, the Netherlands, and Italy. Germany was the world’s largest exporter for the sixth time in a row in 2008, benefiting greatly from its proximity to Eastern Europe. The soft touch SOURCE: DEUTSCHE INDUSTRIEVEREINIGUNG BIOTECHNOLOGIE (DIB) The Globalization of the German Chemical Industry EU-27 The largest customer is the European Union *Contingent upon anti-trust approval, BASF will acquire Cognis by the end of 2010 SOURCE: VCI E_21-24_Innenklapper 2-3 03.09.2010 14:58:24 Uhr With the global trade in chemicals continuing to grow and the international division of labor increasing, German companies are at the forefront of the industry's development The Netherlands 11.4 Belgium 18.0 UK 7.5 Rest of Europe 4.9 Poland €7.3 billion in sales by German chemical companies from local production 11.4 France 4.8 Austria Exports to the rest of Europe 27.6 - Laundry, personal care products 9.0 Total value 2008 139.2 ALL FIGURES IN BILLIONS OF EUROS Exports make up an increasing share of sales Chemical products from Germany are increasingly developing into a leading export. With a growth rate of nearly ten percent per year over the last four years, exports have grown more than twice as fast as the German chemical industry's total sales. In 1990 less than every second metric ton was shipped abroad, but now exports account for more than 80 percent of total production. As the world’s largest exporter of chemical products, Germany will continue to benefit in the future from the dynamism of the global chemistry markets. 414.6 40 40 37.4 1990 2000 2008 30 300 27.9 2002 200 ALL FIGURES IN PERCENT 2002 2004 2004 2006 2006 ALL FIGURES IN BILLIONS OF EUROS 20 2008 2008 €8.7 billion in sales by German chemical Food, tobacco processing Publishing, printing sector 10 Total sales in billions of euros 0 0 100 SHARE OF FOREIGN SALES AS A PERCENTAGE OF TOTAL SALES 200 300 350 F EV T 9 E L O P M E N 199 M T O Research locations BASF Bayer Evonik Foreign direct investment by the German chemical-pharmaceutical industry is an important metric for its globalization. In 2008 they totaled €44.4 billion. The greatest investments were made in the USA (€10.1 billion), France (€3.6 billion), Switzerland and Belgium (€2.9/€1.9 billion). China was in seventh place, with €1.5 billion. Germany is also an attractive site for investments by foreign chemical companies. The largest investor in Germany is the Netherlands (€13.9 billion), followed by the UK and France (€5.3/€4.5 billion). Exports to Australia/Oceania companies from local production €1.0 billion Ranking of the German chemical industry by sales Exports to Latin America Investments by the chemical-pharmaceutical industry Australia/Oceania €1.6 billion in sales by German chemical companies from local production companies from local production Exports to Africa €2.2 Economic activity abroad NAFTA 26.6% Rest of Europe 10.1% EU-27 44.5% Foreign direct investment by German chemical companies Latin America 2.6% Asia 14.6% Oceania 0.7% Africa 0.9% SOURCE LARGE MAP: VCI; ILLUSTRATIONS: FLORIAN PÖHL, PICFOUR 30 SOURCE: STATISTISCHES BUNDESAMT, IKB 50 Other automotive manufacturing Mechanical engineering Medical, I&C technology Automobile manufacturing Radio, television, commuChemical industry nications technology Manufacturing of power generation equipment Paper Metal production Rubber Glass, ceramics Metal products manufacturing Furniture O €2.4 billion in sales by German chemical Foreign sales and sales of various industry sectors in 2009 70 companies from local production Africa Latin America billion A comparison with other sectors, in particular, also underscores the very important role that foreign business plays for the chemical industry. Foreign business accounts for a share of about 60 percent, making it about as important to the chemical industry as it is to the automobile and mechanical engineering industries. Many other sectors—including the glass and ceramics industry, foodstuffs or metal products manufacturing—are not nearly as globally oriented as the chemical industry and concentrate more strongly on the German market. 1.1 FRO €3.5 Sectors in comparison Asia €25.9 billion in sales by German chemical The leaders among German chemical companies are increasingly developing their research and development capacities abroad. Evonik, for instance, employs a workforce of about 2,300 people in research and development at more than 35 locations around the world. Between 1999 (initial values) and 2008 (final values), German chemical exports have generated very impressive growth rates, in some cases of more than 100 percent German sales 400 D The German chemical industry is going global 543.7 60 20 1982 1.9 Worldwide sales 500 Where the leaders research 7.9 0.6 companies from local production 600 80 6.2 8.4 €45.7 billion in sales by German chemical Worldwide sales of fine and specialty chemicals SOURCE: DESTATIS, VCI The export ratio is growing Other 0 billion Company 2009 sales in € billion 50.7 104,779 World’s largest chemical group with a broad product portfolio 2 Bayer AG 31.2 108,400 Pharmaceuticals, polymers, crop protection 3 Henkel AG &Co. KGaA 13.6 51,361 Detergents and cleansers, cosmetics and personal care, adhesives and sealants, surface finishing 4 Evonik Industries AG 13.1 38,681 Specialty chemicals, energy, real estate 5 Boehringer Ingelheim GmbH & Co. KG 12.7 41,534 6 Linde AG 11.2 47,731 Industrial gases, mechanical engineering 7 Merck KGaA 7.8 33,062 Pharmaceuticals and chemicals 8 Beiersdorf AG 5.7 20,346 Consumer goods, skin care 9 Lanxess AG 5.1 14,338 Polymers/rubber, basic and fine chemicals 3.7 15,618 Silicones, polymers, fine chemicals 11 K + S AG 4.3 15,922 Specialty and standard fertilizers, salt 2.6 5,572 12 Cognis GmbH* Specialty chemicals for detergents and cleansers, cosmetics, foodstuffs 504 China Japan 398 187 183 Germany 137 France German chemical products worldwide Pharmaceuticals, animal health 10 Wacker Chemie AG 2008 total sales in billions of euros USA Employees Fields of activity 1 BASF SE* The world’s largest chemical nations Although the Asian nations, and in particular China, are making appreciable gains, Europe and the USA are still clearly the largest sales markets for German chemical products. With a total of €18 billion, Belgium remains the largest single market, however. Just how rapidly China's hunger for chemicals is increasing can be seen in the growth that was recorded between 2004 and 2008. During this short period, the value of German chemical exports doubled, from €1.5 billion to €3 billion, surpassing the result achieved by Japan (€2.8 billion). 91 Brazil 88 UK 80 Italy 68 South Korea 58 The Netherlands 54 India Total world EU-27 2,535 770 SOURCE: FERI, VCI - Fine and specialty chemicals Enzymes SOURCE: ASF, BAYER, EVONIK 23.5 39.3 SOURCE: VCI/”DIE WELT”, JUNE 21, 2010 - Polymers (plastics) 10 Fats and oils billion S 21.5 Foodstuffs and feed 20 €15.4 Eight countries account for 71.5% of Germany’s exports to the EU-27. Exports to any of the remaining countries are valued at less than €2.5 billion RT - Petrochemicals and derivatives *North American Free Trade Agreement between the USA, Canada, and Mexico Bulk chemicals, polymers P 10.1 Pharmaceutical active substances 30 The most populous countries—China, Indonesia, and India—are among the fastgrowing chemical-producing countries in the world. China has shined, posting average growth rates of 12.8 Chemical production growth rates 2003–2008 percent between 2003 and 12.8 China 2008; for India this figure 12.6 Indonesia 12 is 8.6 percent. Another indication of the growing impor8.6 India 8 tance of China is the fact that an increasing number of 2.8 Germany companies, including BASF, 4 3.4 DuPont, Rhodia, and Dow, Worldwide average 1.7 USA have opened their own re0.3 Japan 0 ALL FIGURES IN PERCENT search facilities in the country. Exports to Asia X - Basic inorganic chemicals North America/ NAFTA nations* companies from local production 8 91.7 billion 0 Chemicals Vegetable raw materials China, the challenger €58.2 billion in sales by German chemical E 47.5 40 2005 2010 billions of euros EU-27 €88.1 0 Pharmaceuticals SOURCE: VCI Germany exported chemicals and pharmaceuticals with a total value of €139 billion in 2008. This included nearly €92 billion worth of goods from the chemical industry, with fine and specialty chemicals accounting for the lion’s share due to their high value-added. Important fields for the future are energy efficiency, environmental technology, alternative fuels, biotechnology, and nanotechnology. Germany enjoys a particularly good starting position in nanotechnology. The chemicals Germany ships to destinations around the world Exports to EU-27 billion Basic chemicals are increasingly being produced where raw materials such as oil and gas are found. Germany will focus more intensively on the production of specialty products, which require a higher level of expertise and make better value-added possible. With tailored products, the German chemical industry has good opportunities to contribute to areas such as energy and resource efficiency. Even more important in this regard are networks with customers, which generate precisely targeted innovations. The future will not be only about new materials; systems with high functionality will play the central role, with the synthesizing power of nature being harnessed with increasing frequency through the use of white biotechnology. SOURCE: VCI What the world needs €14.3 Biofuels billion 2 The trend toward fine and specialty chemicals €14.7 9.0 Italy Spain 4.9 Chemical processes can be optimized through the use of enzymes or microorganisms. Living cells such as bacteria or yeasts can be used as tiny "chemical factories.” White biotechnology is playing an increasingly important role not only in the production of fine and specialty chemicals, but also for feed additives and agricultural and pharmaceutical precursors. In addition, it has the potential to replace fossil raw materials with renewables. White biotechnology is therefore an extremely interesting field for the German chemical industry. Worldwide sales of white biotechnology are expected to total approximately €125 billion in 2010. O Exports to North America/NAFTA nations Worldwide sales of white biotechnology products SOURCE: FERI, VCI 63.3 percent of Germany’s chemical exports go the EU-27. This corresponds to goods with a value of more than €88 billion for 2008. The most important trading partners are our direct neighbors: Belgium, followed by France, the Netherlands, and Italy. Germany was the world’s largest exporter for the sixth time in a row in 2008, benefiting greatly from its proximity to Eastern Europe. The soft touch SOURCE: DEUTSCHE INDUSTRIEVEREINIGUNG BIOTECHNOLOGIE (DIB) The Globalization of the German Chemical Industry EU-27 The largest customer is the European Union *Contingent upon anti-trust approval, BASF will acquire Cognis by the end of 2010 SOURCE: VCI E_21-24_Innenklapper 2-3 03.09.2010 14:58:24 Uhr 20 S H A P I N G The New Mantra More and more pharmaceutical companies are restructuring in today’s globalized world. They’re no longer doing it all themselves, and outsourcing has become a strategic process TEXT CHRISTOPH PECK FABULOUS FORECASTS: Worldwide sales in the Research, clinical development, and marketing and sales: These are the areas that a growing number of pharmaceutical companies define as their core areas of expertise. Developing a new medication can take up to ten years and cost up to €1 billion. And then there remains a period of ten years on average for patent-protected marketing. The solution to this challenge is that companies should no longer do everything themselves. Outsourcing is the industry’s new mantra. “Outsourcing,” says Dr. Hans-Josef Ritzert of Evonik Industries AG, “has become a strategic process for many pharmaceutical companies.” The Head of the Exclusive Synthesis and Amino Acids Business Line isn’t worried about the pharmaceutical industry trend toward outsourcing the production of intermediate products and active substances—because that’s exactly what he provides. PHOTOGRAPHY: EVONIK INDUSTRIES (3), STEFAN WILDHIRT pharmaceutical industry will more than double by 2020 to roughly US$1.3 trillion, according to a study that was recently carried out by the auditing and consulting firm PricewaterhouseCoopers (PwC). And the company is not the only one making this prognosis. Current demographic developments and economic growth, particularly in the E7 nations—China, India, Brazil, Russia, Indonesia, Mexico, and Turkey—are setting the pace of this change, reports PwC. But the experts say that these predictions come with a caveat: This boom will benefit only those pharmaceutical manufacturers who succeed in adapting to radically changed conditions. The manufacturers' research and marketing activities must be realigned and more strongly oriented toward medical needs, the experts insist. Tippecanoe Laboratories in Indiana, USA. Evonik took over the entire production location from the US pharmaceutical giant Eli Lilly and Company 20_Evonik_02-10_EN Abs2:20 At Evonik’s Hanau facility the employees who work in exclusive synthesis wear special protective garments 03.09.2010 13:35:25 Uhr S H A P I N G 25 Evonik Rexim S.A.S. Ham in France is the world leader in the production of amino acids and keto acids A pharmaceutical active substance is produced in many reaction stages, which can be roughly divided into three sections. First the standard intermediates are produced. From these are derived the advanced intermediates, and they in turn are synthesized into the actual active substance. And what’s exclusive about it? “Exclusive synthesis simply means made-to-order production that is commissioned by a customer,” Ritzert explains. And here he has a few tools at his disposal, ranging from lab-scale synthesis development to commercial production in China, Europe, and the USA. “This enables us to offer our madeto-order production to customers in the places where it can be most efficiently and most effectively applied,” says Ritzert. The complete package A further milestone in the Business Line’s development was the acquisition of Tippecanoe Laboratories in Lafayette, Indiana (USA). In late 2009 Evonik took over the entire production location from the American pharmaceutical giant Eli Lilly and Company, thus significantly expanding its technological basis. The processes used there are based on the requirements of the GMP norms that are required by law. The GMP is a special quality standard stipulated by the pharmaceutical industry and lawmakers. What’s more, the team has many years of experience in the production of high potency drugs, which are state-of-the-art medications that can be used in much lower doses. The team passed the stringent audit of the US Food and Drug Administration (FDA) once again in March 2010. At the end of 2010 the location will be integrated into the Business Line’s global production and marketing network, making it “far stronger,” says Dr. Klaus Engel, Chairman of the Executive Board of Evonik Industries. And in China, Evonik built a new plant for ac- Evonik’s Nanning location in China. The Evonik research team trains Chinese employees like the one shown here tive substances production in Nanning, Guangxi province, in only 15 months. With the German locations in Hanau and Dossenheim, an additional location in China, and a facility in France for the production of pharmaceutical amino acids, the Business Line has become firmly established in the market as a leading supplier. And, Ritzert says, it has at its disposal “a network of production locations with a breadth that makes it very competitive, because we have the needed critical scale, a broad technology platform, and experienced employees. The customers know that their know-how is in safe hands. The locations complement one another ideally and enable us to intelligently operate our network of assets.” Entrusting entire stages of the value chain to outside companies requires a high level of reliability. The companies demand a lot from their preferred suppliers. Quality, performance, flexibility, and guaranteed delivery must all be flawless. From Ritzert’s point of view, the role of a preferred supplier goes far beyond just contract production. “Even though we have been concentrating more on the advanced intermediates and active substances in recent years, we know the entire process and we can offer the complete range of synthesis technologies. That’s why we begin talks with our customers as early as possible in the value chain—for example, by collaborating with them to jointly develop the synthesis process for the active molecule created in the lab.” Intensive research into new synthesis processes is being conducted, often together with pharmaceutical companies. And brainstorming together doesn’t stop after the market launch. For instance, it continues when production processes are optimized so that efficiency gains can be passed on to the customers. “We support the product throughout its whole life cycle,” Ritzert says. As a result, Exclusive Synthesis does more than deliver a product; it’s a full-service business. Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 25_Evonik_02-10_EN Abs1:25 03.09.2010 13:35:31 Uhr 26 D E V E L O P I N G EVONIK: SLOVAKIA Slovenská L’upcǎ is one of four Evonik locations manufacturing amino acids The amino acids threonine and tryptophane are produced for animal feed by the Business Unit Health & Nutrition in Slovakia. Evonik is the only supplier in the world to manufacture all four important amino acids. Soňa Slobodníková is one of the approximately 170 employees in Slovenská L’upča Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 26_Evonik_02-10_EN Abs1:26 03.09.2010 13:19:55 Uhr D E V E L O P I N G 27 Innovation remains success factor number one Rakau. A solid foundation is provided here by Germany’s more than 60 chemical manufacturing plants and 38 chemical parks. The industry utilizes a uniquely German supply system concept with links to the European pipeline network. The system, which transports petroleum, natural gas, naphtha, and basic chemicals such as ethylene, propylene, and hydrogen, is superior to those currently in place at many locations in China. The problem, as Falter recently pointed out in an interview in CHEManager, is that “there are too many chemical facilities in Germany with insufficient capacity utilization and noncompetitive cost structures.” Companies will also have to do their homework in this regard if they wish to satisfy internal and external customers with their facility services. PHOTOGRAPHY: STEFAN WILDHIRT Cooperating with other industries Still, industry experts believe that innovation remains the number one factor for success. “If German chemical companies want to be successful over the long term, they need to be at the forefront of innovative developments,” Tillmann explains. That also means they have to make sensible use of new technologies such as green, white, and red biotechnologies, as well as nanotechnology. Many sector experts criticize what they perceive to be an anti-innovation climate in Germany. “Speed is becoming more and more important for the successful market launch of innovations,” Rings explains. “Only those companies that quickly position themselves on the market can move into newly formed markets and shape the value chains.” Engel also believes that the reservations regarding new industrial projects pose a danger: “Industrial production and innovations are indispensable to our prosperity. The bank crisis may cost us billions—but opposition to industry can cost us our future.” Still, with total R&D expenditures of €8.3 billion, the chemical industry was third in the German rankings in 2009, behind the automotive industry and the electrical engineering sector. Such investments are establishing a good foundation for the future. Innovative capability could be increased even further in Germany if different industrial sectors cooperated more closely on development and market launches. For example, German chemical companies could work with the automotive industry to take on a leading role in the electric mobility sector. The government could help out by granting tax breaks for research into state-of-the-art technologies, rather than giving away money with cash-forclunker programs. This is also the view of Dr. Gunter Festel, owner of Festel Capital, a Swiss investment and consulting firm. Festel had the following to say in an article published by the magazine Chemical Business: “In terms of research and development, Germany will remain the location of choice for German chemical companies for quite some time.” And perhaps the leader in global chemical innovation as well. S U M M A RY The German chemical industry has emerged from the economic crisis in good shape. However, the development of global business remains the biggest challenge, because German companies are increasingly competing with aspiring firms from Asia and the Middle East. German companies are focusing on their core business areas and on specialty chemicals. Industry experts believe that the pressure to adapt industry structures will grow. • Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 27_Evonik_02-10_EN Abs1:27 03.09.2010 13:20:05 Uhr The Renaissance of the Chemical A rethinking process has started in Germany. The chemical industry used to spark fierce debates, but today GRAPHIC BY PICFOUR, WITH THANKS TO: ACTION PRESS THE CHEMICAL INDUSTRY SEEMS to generate more contradictory feelings and fierce debates than any other. The number of Europeans who regard this industry favorably just about matches the number of those who watch it with critical eyes. In Germany as well, 35 percent of the public still has negative feelings about the chemical industry. On the other hand, 61 percent of Germans now regard the chemical industry favorably—that’s the highest percentage in the 11 European countries investigated in a recent survey. By contrast, in France, the second-largest European location for the chemical industry, only about 36 percent of the public believes the chemical industry is a good thing. Actually, the chemical industry seems to have been struggling with image problems ever since its birth in the last third of the 19th century. In 1900, Dr. Wilhelm Bersch concluded in his book Moderne Chemie (Modern Chemistry) that “only one branch of the modern natural sciences has always been treated like a stepchild—chemistry.” He attributed this neglect, among other reasons, to the fact that “chemistry has for centuries been treated as an occult science.” Only a few years ago, the chemical industry was often regarded only as a source of danger that was poisoning human beings and the environment and was “out of control”—even though chemicals have for a long time been an indispensable part of modern life, as well as a reliable safeguard of German jobs and prosperity. Today, by contrast, it seems that a more balanced debate about the risks and opportunities inherent in the chemical industry is once again possible. Its image has improved somewhat, especially in Germany, and even the Greens political party recognizes that the chemical industry is one of the key sectors of the German economy. In fact, the German chemical industry includes approximately 2,000 companies, about 90 percent of which are small or midsized. With more than 400,000 employees, it is one of Germany’s largest employers and a substantial force in the German labor market. What’s more, the chemical industry is well known for its highly qualified and well-paid jobs. The German chemical industry’s leading position among its global competitors is clearly reflected, among other things, in its positive export balance. The German chemical industry is the backbone of the European chemical industry, accounting for about 25 percent of total sales in the European Union. On a global scale, it’s one of the so-called big four. These statistics are not due to chance—they are the result of an exemplary combination of outstanding basic research, highly motivated employees, and intensive efforts on the part of the industry to promote research and innovation. Sustainable products Today, the German chemical industry is the country’s third-largest research-oriented industry, spending more than €8 billion annually on research and development. This makes it one of the pace-setting drivers of innovation. Between 1999 and 2009 alone, the German chemical industry increased its research activities by 23 percent. In recent years it has not only conducted research to create new products and services, but also completed its entry into the field of sustainable production. This can be seen in the fact that between 1990 and 2008 it boosted its production by 58 percent while at the Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 28_Evonik_02-10_EN 28 03.09.2010 19:34:11 Uhr D E S I G N I N G 29 Industry people are talking about the multitude of solutions it offers for future problems. An essay by Günter Verheugen Former EU Commissioner Günter Verheugen pleads for an honest discussion of future perspectives for the chemical industry 29_Evonik_02-10_EN 29 03.09.2010 19:34:23 Uhr 400,000 employees in Germany Chemistry h Research expenditures up 23% between 1999 and 2009 [ C5H8=2] n [[CC5H =2] 5H88=2]nn [ C5H8=2] n [ C5H8=2] n [ C5H8=2] n “In the past, governments and the media have dealt with the chemical industry almost exclusively from the standpoint of risk prevention” €8 billion spent annually on research and development same time reducing its energy consumption by 18 percent and its emissions by an impressive 37 percent. Is it this transformation that explains the solid public approval of the chemical industry in Germany? Alternatively, it may be because we have become more rational and we realize that neither the dental care we require now and in the future, cancer medicines, nor any of the other products we need for safeguarding the future of our societies, would be conceivable without the analysis of materials and their conversion processes—in other words, without chemistry. Or the reason may be that the behavior of the chemical industry has gradually changed, from a refusal to discuss risk issues publicly toward a more deliberate acceptance of social responsibility—something that cannot be dictated by law but must be shouldered by the companies themselves. To me, in any case, it seems that there is a growing consensus that Germany needs its chemical industry in the 21st century as it has in the past. This makes it possible to have a more open and honest discussion of the opportunities and potential, but also the indubitable risks, that are associated with this industry and to jointly develop strategies and solutions. In the past, governments and the media have dealt with the chemical industry almost exclusively from the standpoint of risk prevention. In the process, hardly any attention has been paid to the fact that the chemical industry is primarily an enabling industry. It is increasingly becoming a problem-solver, and with its products it ensures that modern goods can be produced in the first place in all the other industrial sectors. Along the entire industrial value chain, the contribution of the chemical industry is indispensable. A country like Ger- many, which has a very broadly based industrial sector, would therefore be making a grave error if it did not do everything possible to ensure that chemical facilities remain in the country and are able to continue their development. In recent years there have been two major political initiatives that will have an impact on the future of the chemical industry not only in Germany but in the entire European Union. Both of these initiatives originated in Europe. The first one concerns the European regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH). REACH may be the most demanding piece of legislation that the EU has ever passed; in any case, it’s certainly the most complex one. There’s certainly room for argument concerning the details, and it will definitely be necessary to correct some errors when REACH is revised, according to plan, in 2012. But the general direction in which it is heading is the right one. If REACH is responsibly implemented by everyone involved, it should make the overall conditions for the producers and users of chemical products in Europe more stable and predictable. The second initiative concerns the high-ranking group appointed by the European Commission to confer about the future of the European chemical industry. Due to the cooperation of representatives from the fields of politics, business, science, and civil society within this group, people in the EU today recognize that the chemical sector is essential for the economies of Europe. In a very difficult process of dialogue, the representatives of industry and public interest groups moved closer together and arrived at an astonishingly broad consensus. The fact that in July Belgium, which Production up 58% between 1990 and 2008 30_Evonik_02-10_EN 30 03.09.2010 18:50:56 Uhr D E S I G N I N G 31 Energy consumption down 18% between 1990 and 2008 holds the current Presidency of the Council of the European Union, conducted a major conference on the future of the European chemical industry shows that we are moving in the right direction. A multitude of challenges confront us at the beginning of the 21st century. They include the need to make hunger and disease in most parts of the world a thing of the past and open up reliable prospects of future development and prosperity for most of the world’s population; the need to protect our environment and continue the struggle against climate change; the need to ensure the safety of industrial plants and the technological infrastructure; and the need to put a stop to international organized crime. Only by exhausting all the potential of modern chemistry will it be possible for us to master these challenges. It is precisely for this reason that chemistry, in the words of Prof. Gérard Férey of the French Academy of Sciences, is a “science of life and of hope.” GRAPHIC BY PICFOUR, WITH THANKS TO: ACTION PRESS There’s no such thing as “zero risk” But in order to live up to this definition we have to become more free of ideology. It’s no use to condemn the chemical industry’s high share of energy consumption, which can reach 60 percent in the case of certain products. What we must focus on is to reduce energy consumption to the minimum that is physically and technologically feasible. It’s also no use to condemn the production of chlorine because of its generation of toxic products as long as we work with chlorine in areas such as our public swimming pools. However, what we must insist on is that our companies have state-ofthe-art emission purification processes so that the air we breathe stays clean. Nor can we go on allowing ourselves to believe in “zero risk,” which does not exist in real life. What we need instead are strategies for clearly assessing and evaluating risks—the same kinds of risks we tolerate when it comes to medications. There is no technology that has only positive or only negative aspects. That’s why no technology should be utterly condemned from the very start—as we did for a long time with biotechnology, thus almost missing our opportunity to participate in its development. What are we going to do with the realization that the world’s food supply, especially that of the poorest nations, will in all probability depend on genetic engineering? This being so, is it still morally and ethically responsible to completely reject it out of hand? Wouldn’t it rather be our duty to participate in the worldwide research being done in this field, even though it may ultimately result in the well-founded conclusion that this technology cannot deliver the hoped-for solutions? We won’t make any progress in the cutting-edge chemistry of the 21st century if we block off areas of research and promote taboos, because this segment of chemistry is still in its infancy. Where will we find the raw materials of the future? We will find them in the earth, insofar as we have access to it. And we will certainly find them through recycling as well as through new materials, in other words alternative materials— something we’re very much pinning our hopes on. But many of these materials, for example nanomaterials, are still waiting to be developed. The cars of the future will need such new materials, and people who place their hopes in the electric car will also need the battery of the future in order to be mobile. And such a battery has not yet been developed to the stage of series production. The important thing is that the German chemical industry does not miss this opportunity, because this new industrial revolution, which must bring with it the transition to a resource-efficient economy that produces a minimum of CO2, will radically shake up the present-day structure of our industry. We don’t know how much of the basic chemicals sector that we know today will survive. What we do know is that a technological leader can survive in the fast-growing markets of today and tomorrow, and that it will reap profits not only by safeguarding local jobs but also by exporting progress. But in order for that to happen, the chemical industry needs the right governmental regulations, especially for the many small and midsized companies that depend on a policy that focuses on their interests. We will also have to ensure that there’s more fairness in international competition, because neither Germany nor Europe alone will be able to bring about the necessary structural transformation in the worldwide chemical industry. If we address this issue with a sense of proportion, we can demonstrate that it’s worthwhile to invest in the environment and in sustainable production processes— in jobs, in new eco-friendly products and services, and in the promotion of our natural environment. In order to succeed in this endeavor, it’s essential that we continue our alliance with science, which has been the secret of our past success. In addition, in this century as well, the German chemical industry needs people with science degrees and enthusiasm. However, it also needs such people to be aware of their responsibility for society as a whole, so that research and innovation do not stagnate and we continue on our course toward a sustainable economy. That applies to managers as well as employees. And finally, the chemical industry also needs us—a critical general public and a critical discourse—so that it continues to be forced to present its results to the public. The International Year of Chemistry 2011, which was declared by the United Nations, offers us a full range of opportunities to achieve all that. What this means is that the renaissance of the chemical industry is already well under way in Germany, but the best is yet to come. 61% of Germans approve of the chemical industry (but 35% still have a negative attitude) Emissions down 37% Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 31_Evonik_02-10_EN 31 03.09.2010 15:18:29 Uhr 32 S H A P I N G Chemistry Gives Automobiles Wings PHOTOGRAPHY: MCLAREN AUTOMOTIVE New materials and technologies are ushering in a new age of automotive design, and permanently changing 32_Evonik_02-10_EN 32 03.09.2010 15:15:58 Uhr S H A P I N G 33 the way we look at mobility TEXT MARKUS HONSIG MCLAREN MP4-12C The super sports car looks like an earthbound flying machine. The world’s first seriesproduced carbon fiber monocoque builds a bridge between the aviation and automotive industries Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 33_Evonik_02-10_EN 33 03.09.2010 15:16:08 Uhr 34 S H A P I N G PORSCHE 918 SPYDER Extreme hybrid with a carbon fiber mono- LOTUS EXIGE Weight reduction of 75 kilograms—with help from Evonik. coque, a V8 engine, two electric motors, 718 hp, and three liters/100 km Lower weight means better driving dynamics and lower fuel consumption Plastic, carbon fibers, PHOTOGRAPHY: OBS/PORSCHE, STEFAN WILDHIRT, VOLKSWAGEN AG, BMW GROUP LONGSTANDING EXPERTS like Walter Röhrl know every kilogram counts when you want to achieve outstanding handling and performance. That’s why Röhrl removes everything he believes is not absolutely necessary in the cars he works on, like the Porsche 964 RS, the Audi A2, and VW bus models. He takes out rear benches, panels and covers in the engine compartment and interior, spare wheels, and heater blowers. “It makes a difference whether a car weighs 1,200 or 1,150 kilos,” says Röhrl, who conducts highly specialized test drives for Porsche. Every kilo taken away increases the precision and efficiency of braking, steering, and accelerating. Responses to pedal and steering movements are more accurate and nimble, braking distances get shorter, and cornering speeds faster. Lighter vehicles also consume less fuel. Röhrl not only has gifted driving hands but also a well trained sense of cost control and environmental protection. It’s therefore no surprise that this rally legend is very pleased by the trend toward lightweight automotive design, “even though it shouldn’t necessarily have required hybridization and electrification to make it happen,” as he points out. Still, better late than never—and the time has now come for consistent advanced lightweight design, especially as CO2 emissions are directly linked to vehicle weight: 100 kilograms more or less translates into 0.3 liters higher or lower consumption per 100 kilometers. Lightweight design is also important because there aren’t many other levers left for enhancing vehicle efficiency. It comes down to aerodynamics, drive systems, and weight. Moreover, the electric cars for future mobility now being developed by every automaker already carry a heavy load: their battery. The rule of thumb is that every kilometer of increased range means at least one kilo of additional weight. Lightweight design is thus becoming a core discipline in automobile development. As a result, plastic composites will also become more important, and account for a greater proportion of vehicle weight. This applies to interior equipment and outer shells, induction pipes, rear windows, headlights, and high-tech adhesives that can replace bolts, rivets, and welds. Evonik Industries has demonstrated the potential involved here many times—in the Golf V (–371 kilograms), for example, and in the already quite lean Lotus Exige (–75 kilograms). In June, Evonik opened a new lightweight design studio in Darmstadt to present specific applications for the new synthetic materials. The vehicle body is one of the most effective levers for implementing a radical automotive diet. Although steel will remain the material of choice for some time, alternatives are already on the horizon. Manufacturing processes for carbon fiber-reinforced plastics (abbreviated to CFRP or CFP) appear to have advanced to a stage that would allow production at a reasonable cost. Vehicle architectures are also changing, as consistent lightweight construction requires new designs, while small, simple, and light electric motors are giving designers more freedom than ever before—and vice versa. Basically, what belongs together is now coming together. Material competition The latest example here is BMW’s Megacity Vehicle, which is scheduled for market launch in 2013. The electric car, designed mainly for urban driving, is a model for the future of lightweight construction. The car consists of two clearly separate and independent modules: the “Drive Module,” which integrates the battery, drive system, structure, and crash components into a com- Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 34_Evonik_02-10_EN 34 03.09.2010 15:16:17 Uhr GOLF V Evonik demonstrated the lightweight design potential for plastics in a Golf V: –371 kilograms—a diet on a grand scale and chemicals are making cars lighter than ever before BMW MEGACIT Y VEHICLE BMW is planning the world’s first mass production vehicle to be equipped with a carbon fiber body that will fully offset the additional weight of the electric car’s battery. The Megacity Vehicle will hit showrooms in 2013 35_Evonik_02-10_EN 35 03.09.2010 15:16:29 Uhr 36 S H A P I N G CARBON FIBER MONOCOQUES The perfect basic cell for extreme lightweight design and use of state-of-the-art plastics PHOTOGRAPHY: WOO-RAM LEE, MCLAREN AUTOMOTIVE, ARTEGA AUTOMOBIL GMBH, 2010 SMART TECHNOLOGIES ULC The new era of automobile design is upon us—and we’re pact chassis unit; and the “Life-Module,” which basically consists of an occupant cell made of carbon fiber (as CRP is often referred to). This simple and flexible design may not only permanently change the automobile as we know it but also the production processes used to make it. The two modules can be built independently from one another and then joined together quickly and easily practically anywhere in the world. BMW enhanced its carbon fiber expertise in the fall of 2009 by establishing a joint venture with the SGL Group, one of the world’s leading manufacturers of carbon products. “The MCV will be the world’s first mass production vehicle with a carbon occupant cell,” says Dr. Klaus Draeger, BMW Board of Management member responsible for Development. “Together with our LifeDrive architecture, the car will enable us to open a new chapter in automotive lightweight design, as it allows us to offset virtually all of the extra weight typical of electric vehicles. And here we’re talking about 250 to 300 kilograms” The MCV will be preceded by a completely different type of vehicle—the new 600-hp MP4-12C super sports car from McLaren. Along with its outstanding performance (0–200 kilometers per hour (km/h) in under ten seconds; top speed of well over 300 km/h), this vehicle stands out through a carbon fiber monocoque that weighs less than 80 kilograms and is thus 25 percent lighter than a comparable aluminum chassis. Despite this lean design, the monocoque offers unbeatable torsional rigidity and stability as well as safety that can’t be matched. What’s new here is that the McLaren monocoques are being produced in relatively high numbers (plans call for 4,000 units per year), but at a relatively low cost. In fact, the 12C monocoque can be built for less than 10 percent of what it costs to produce a hand-made 36_Evonik_02-10_EN 36 PEUGEOT MOVILLE The ultramobile one-seater of the future not only drives on the power of magnets but can also communicate with other vehicles 03.09.2010 15:16:39 Uhr S H A P I N G 37 ARTEGA GT The niche sports car has an aluminum chassis and a plastic body. This lightweight design can be implemented by both small and large-scale manufacturers SMART ELECTRIC DRIVE Small, light, and efficient, it offers the best conditions for drive system electrification a part of it Formula 1 cockpit. This is the first time such a vehicle will be manufactured in a true series production process, which is set to begin next year. The monocoques will be built by Carbo Tech, an Austrian company specializing in high-end carbon fiber components. “We’ve automated what was previously a manual production process, and we now manufacture highly integrated components,” says Carbo-Tech CEO Karl Wagner. Preparatory work on new measures for further automation has long been under way—and “the McLaren 12 C is the ideal interim step here.” In principle, a monocoque offers the perfect foundation for aggressive lightweight design—and not just for sports cars. Because the monocoque fulfills practically all structural requirements, the design of the extensions added to it can focus solely on weight reduction and aerodynamic efficiency. With the 12C, this translates into aluminum for the hood and roof, and glass-fiber reinforced plastics for all other body parts. In absolute numbers, the McLaren 12C will weigh around 1,300 kilograms—much less than an Audi R8 with an aluminum space frame body. McLaren is promising that the model will be the world’s most efficient sports car, with CO2 emissions well below 300 grams per kilometer. Prof. Frank Henning calls the McLaren 12C “an earthbound flying machine”—not just because of its outstanding acceleration but also because it’s something of a missing link between the aviation industry, which has extensive experience with the manual processing of carbon fiber-reinforced plastics, and the automotive industry, which is well-versed in the industrial processing of steel. The latter still has a lot to learn about new materials. Henning is deputy director of the Fraunhofer Institute for Chemical Technology, as well as the profes- sor for Lightweight Technologies at Karlsruhe Institute of Technology. “The key questions will be which processes make the most sense for CFRP in series production and what sort of stress-related dimensioning of the components it will be possible to deduce as a result,” he explains. In addition, “a consistent lightweight approach means automobiles and their components must be designed with as clear a specific application in mind as possible.” Reducing weight Numerous examples illustrate what’s possible when man-made fibers are used in an appropriate and targeted manner in automobiles. Some are still in the prototype stage, but probably not for long. The recently presented Artega GT is not a prototype, but instead a lightweight sports car already on the market. It has an aluminum/ steel chassis, a space frame, and the first-ever body to be made exclusively of the plastic polyurethane. The latter was developed in cooperation with former BASF subsidiary Elastogran. Such cars can only be produced in small batches “because tool costs are low as compared to steel,” says Peter Müller, Chief Operating Officer of Artega Automobil, which was founded in 2006 in Delbrück. Another development is the T.27 electric car from Gordon Murray, the former chief designer at McLaren. The vehicle weighs less than 700 kilograms (including the battery), and the completely new production process used to build it seeks to reinvent not only the automobile but also the way it’s manufactured. The chassis, including all drive system and crash components, is prefabricated; the plastic body is simply put on over it. The Heuliez Mia was originally a French development, but has recently been taken over by the German energy Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 37_Evonik_02-10_EN 37 03.09.2010 15:16:48 Uhr 38 S H A P I N G PHOTOGRAPHY: MATUS PROCHACZKA, SIPA PRESS, MINDSET HOLDING AG, TOYOTA DEUTSCHLAND GMBH, EVONIK INDUSTRIES MIA A creation of star designer Murat Günak, this electric car with a bolted plastic body weighs only a little over 600 kilograms services provider Conenergy and pharmaceutical entrepreneur Professor Edwin Kohl. Thanks to a plastic body, the Mia weighs just a little over 600 kilograms. Like the Mindset electric car, whose development has been temporarily halted, the Mia was designed by a star of the industry—Murat Günak, a former chief designer for Peugeot and Volkswagen, who has now moved outside established circles to bring to life his vision of the car of the future. What such examples teach us—besides the fact that the future belongs to lightweight vehicles—is that when the use of electric motors begins reducing the importance of highly complex mechanical engineering, and new materials do the same with expensive steel processing techniques, exciting new opportunities arise for small and flexible manufacturers. These companies can stimulate a market that is characterized by a lot of inertia through the introduction of new ideas, concepts, and vehicles. The prospects are without a doubt exciting in every respect. MINDSET Another Günak creation: The vehicle’s avant-garde electric-car design features a plastic body and a PLEXIGLAS roof liter, 136-hp engine, the lean racing machine accelerates from 0–100 km/h in 6.5 seconds, has a top speed of more than 200 km/h, and consumes no more than 6.3 liters of fuel per 100 km under normal driving conditions. It’s hard to imagine another vehicle that delivers so much sports car performance without having to feel guilty about the environment—especially when you consider the unbeatable enjoyment that a “lightweight” like the Elise has to offer. It’s therefore no coincidence The magic formula: Multi-material design Over the last few years, we have been told that the law governing the progress of automotive development dictated that cars would become heavier and heavier. One company, however, refused to accept this seemingly indisputable law, and was surprisingly left alone by the competition : Lotus. The latest successful example of its approach is the new Elise, which weighs only 876 kilograms. This low weight is due, on the one hand, to very restrictive equipment and, on the other, to a consistently implemented lightweight design that includes an aluminum/steel chassis, carbon fiber crash boxes, and a glass fiber body. Although equipped with only a small 1.6- Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 38_Evonik_02-10_EN 38 03.09.2010 15:17:03 Uhr S H A P I N G 39 TOYOTA VENZA Multi-material design. Use of a clever material mix has enabled Lotus Engineering to reduce the vehicle’s weight by 38 percent The Future Will Be Light Evonik’s new lightweight design studio in Darmstadt Chemical industry products will become increasingly important in future automotive development processes. Evonik is presenting practical examples of such chemical applications—for aviation and solar technologies as well—at its new lightweight design studio in Darmstadt. “We want to be able to demonstrate clearly to our customers and project partners what our products can do,” says Rudolf Blass, head of the Automotive & Surface Design industry segment in the Acrylic Polymers Business Line at Evonik Industries. Blass is referring here to products such as Rohacell, Vestamid, and PLEXI- GLAS—basic materials for intelligent lightweight design. This issue is not only attracting growing interest among automotive supplier companies but “also among end customers—the automakers, where interest is being expressed by both engineering and design departments.” The most fascinating products here include PLEXIGLAS glazing, which can reduce weight. “Our development people are working on customized, adapted solutions—such as those for car side windows— that employ different material concepts and offer different types of functionality.” MAGNETIC VEHICLE CONCEPT In the future, a magnetic drive system linked to an electric motor will be installed in a vehicle that travels on roads also equipped with magnetic fields. The result will be a reduction of as much as 50 percent in vehicle weight 39_Evonik_02-10_EN 39 In the lightweight design studio: Rudolf Blass (left) and Gregor Hetzke, head of Performance Polymers, present the PLEXIGLAS windshield for the Lotus Exige 03.09.2010 15:17:15 Uhr 40 S H A P I N G Major Flirt PHOTOGRAPHY: 2010 LOTUS ELISE Chemistry is playing an ever-greater role in automobiles, and the chemical and automotive industries are facing new challenges as a result. Is it love or a marriage of convenience? LOTUS ELISE The sleek sports car with a dead weight of only 876 kilograms served as a model for the electric Tesla Roadster that Elise serves as the basis for what is currently the hottest item on the electric car market: the Tesla Roadster. Lotus’ development subsidiary, Lotus Engineering, used a Toyota Venza—an SUV currently unavailable in Germany—to perform calculations that led to the realization that lightweight design can be employed for vehicles other than sports cars. The company developed scenarios for significantly reducing the weight of a large vehicle at a reasonable cost. The scenario for 2020 envisions an impressive weight reduction of 38 percent, assuming a total weight excluding drive system components of 1,290 kilograms, at a cost increase of only three percent. The body alone, currently made solely of steel, could be made 161 kilograms lighter by lowering the number of individual components and utilizing an intelligent material mix (37 percent aluminum, 30 percent magnesium, 21 percent composites, seven percent highstrength steel). This magic formula for applied lightweight construction is known as multi-material design. Once you lower body weight, you can, for example, also redimension the entire chassis area—and permanently reverse the trend toward heavier vehicles. S U M M A RY The future of automotive design belongs to lightweight construction. Lower weight means lower fuel consumption and a longer range for electric vehicles. The importance of the chemical industry for automobile production is therefore continually increasing. New technologies and materials are giving designers more freedom than ever before—and also requiring them to completely rethink the principles behind automobiles and their production processes. • TEXT CHRISTIANE OPPERMANN THE FUTURE belongs to lightweight electric vehicles powered by high-performance batteries. More than one million of these electro-mobiles are expected to be on the road in Germany in just a decade. These sleek machines will be made of high-quality materials produced by the chemical industry. Instead of being driven by loud engines with four, six, eight, or 12 cylinders, they will be powered by a battery that feeds energy to a noiseless electric drive system. The core expertise of automakers will then no longer be required: Fine tuning of combustion engines with their piston rods, camshafts, and cylinder heads will become superfluous, as will 125 years of experience in the optimization of engine output and fuel economy—not to mention the development of countless assembly steps that reach their pinnacle at the assembly line, where the glorified industrial-romantic marriage between chassis, engine, and bodyshell once took place. The quantum leap in drive system technology will reshuffle the playing field on global markets. The automotive industry will be joined by a new player—one it paid very little attention to in the past: the chemical industry. Even today, chemicals are a part of every vehicle, and the European automotive industry procures five percent of the total volume of chemicals produced in the European Union. Companies like BASF, Lanxess, and Solvay now generate more than 10 percent of their revenues through business with automakers. Still, the relationship between the industrial partners has suffered, according to a chemical industry survey conducted in the fall of 2009 by Roland Berger Strategy Consultants in cooperation with the European Chemical Marketing and Strategy Association (ECMSA). This estrangement became clear during the recent economic crisis after auto industry sales in Europe fell by 11 percent in 2009. Because automakers and their suppliers began depleting their inventories to gain liquidity, the sales decline had a much stronger impact on manufacturers of plastics, paints, rubber, textiles, and similar products. In addition, the chemical industry’s business with the automotive sector yielded low margins because the automakers and original equipment manufacturers are subject to price pressures themselves. According to the consultants from Berger, the drop in margins was accel- Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 40_Evonik_02-10_EN 40 03.09.2010 15:17:23 Uhr S H A P I N G 41 The true heroes The “vale of tears” has passed and the chemical industry is back on its feet again, having increased sales by 16 percent in the first half of 2010. “Positive developments have now reached our sector,” Dr. Ulrich Lehner, president of the German Chemical Industry Association, said at the organization’s half-year press conference in July. Specialist firms in the widely diverse chemical industry can be particularly optimistic about the future. Such specialists include manufacturers of carbon fiber-reinforced plastics (CFRPs), which are already used in aircraft production. These companies are very much in demand among automakers as business and discussion partners. Daimler, for example, is now cooperating with the world’s leading carbon fiber producer, Japan’s Toray Industries. Carbon fiber plastics are up to 50 percent lighter than steel and aluminum and are extremely impact resistant. They are also expensive, however, as a kilo of carbon costs around €15, while the same amount of steel costs only one euro or so. Mass automobile producers continue to rely on high-strength steel, and even Audi plans to stick with aluminum for the time being. Still, it makes good business sense for the automobile manufacturers and their suppliers to maintain direct contact with chemical companies. That’s because even with conventional designs, savings potential can be exploited through the use of modern materials, like PLEXIGLAS for glazing, mirrors, and interior trim, as well as new-generation adhesives like Evonik’s Dynacoll/Dynapol, whose bonds are just as stable as the welds or rivets that have been used to date. Hard foams like ROHACELL are lighter than steel or aluminum, but can withstand the same stresses, 41_Evonik_02-10_EN 41 if not more. However, the true heroes in the most important mobility segment of the future will be manufacturers of powerful energy storage units—the hearts of the new electric vehicles. The capacity and volume of these units will determine how far customers can travel with their electric cars. There are now around half-a-dozen of these specialists around the world with the capability of building batteries that meet the tough requirements of putting an extremely high storage capacity into a relatively small space, and delivering not only a long service life of more than a decade but also reliable stability in the event of a crash. It’s not only the weight of the batteries that make them the biggest hurdle when it comes to electric-car production but also their price. After all, the battery for a small urban electric vehicle will likely cost around €10,000 just by itself. The Evonik subsidiary Li-Tec Battery GmbH is one of the companies on the cutting edge of developments here. Li-Tec is the only German manufacturer of such batteries in a high-tech market otherwise consisting of a half-dozen Korean and Japanese firms. Li-Tec has also been working with a high-profile partner for the last two years: Daimler AG, whose CEO, Dieter Zetsche, explains the reason for the partnership as follows: “We are convinced that Li-Tec is the leading supplier of lithium-ion technology.” In line with this assessment, Daimler has acquired a 49.9 percent stake in the company. That number speaks for an equal partnership—and the Daimler-Evonik deal could mark the dawn of a new era for the chemical industry. As a major supplier of key components, Li-Tec will now also help shape the development of e-mobility. The two partners still have to get used to their new roles, which require that they learn to plan and talk with one another. Indeed, those who try to do too much too soon risk a “war of the roses.” Scenes from a marriage Only close partnerships ensure success on the automotive market IV. Common value chain Increase in cooperation III. Businesscase driven II. Strategy focus SOURCE: „FUSING THE VALUE CHAINS“ BY ROLAND BERGER STRATEGY CONSULTANTS erated by new competitors from the emerging markets of the Middle East and Asia. The new capacity in the industry thus began to exceed demand. The consultants believe that more than anything else, differences in corporate strategies put a huge strain on relations between automakers, their main suppliers, and chemical companies, with the latter seeking to achieve a high level of product standardization, as well as longer product cycles, in order to fully utilize their capacities. The automakers, on the other hand, plan according to their model strategies, and demand constant innovation and shorter product cycles. These conflicts persisted in the past because the parties refused to talk to one another—like partners in a dysfunctional marriage. The Berger study quoted a divisional director of a European chemical manufacturer as follows: “If we were to have direct discussions with original equipment manufacturers, we’d run into trouble with our direct customers.” Still, new initiatives like the National Platform for E-Mobility now require a change of thinking on both sides, as well as a greater willingness to engage in discussion. Greatly improved economic conditions are also facilitating a rapprochement. I. Manufacturer integration 0. Focus on direct buyers Today 6–12 months 12–24 months > 24 months The current strategy among automakers in the USA, Japan, China, and Europe is to build vehicles tailored to customer requirements. However, the Japanese and Europeans will have an edge when it comes to the establishment of a common value chain for manufacturers and suppliers in the future 03.09.2010 18:56:09 Uhr 42 E X P E R I E N C I N G The Battle of the Backyard Many Germans immediately get up in arms whenever an industrial project is being planned—even if the plans call for a biogas facility or wind turbine. A report on an intensifying conflict TEXT KLAUS JOPP PHOTOGRAPHY CATRIN MORITZ THINGS HAVE QUIETED DOWN in Schlenke, a former residential community that slumbers silently in the morning sun. Back in the 1950s, 146 rental apartments and 29 family homes were built here in close proximity to the shaft of the Brassert Mine in western Marl, between huge waste heaps and the Marl Chemistry Park. The Schlenke community was originally built as a temporary solution for housing the coal miners of the Brassert neighborhood, and it was no longer needed after the mine was closed in the early 1970s. But none of the residents wanted to move away—not even ten years ago, when the first discussions were held about expanding the Marl Chemistry Park to the west into areas that had long been earmarked for this purpose. The Schlenke community stood in the way of the industrial park’s expansion, but Germany’s laws were continually amended until the emissions standards and the regulations for the protection of residential property had become so strict that companies were even prevented from building some production facilities on their own premises. The dispute with the Schlenke residents lasted about ten years, until the Marl city council finally changed the regional utilization plan in March 2010. After years of wrangling, the area is now again available for industrial use, as was originally planned, and the empty houses are scheduled to be torn down for the industrial park by the end of this year. The former inhabitants have found new homes in the Gartenstadt neighborhood of Marl’s Drewer-Süd district. “We compensated the inhabitants for changes they had made to their homes and paid for the move. The plots of land were provided by a predecessor firm of Evonik Immobilien GmbH,” says Uta Heinrich, a lawyer and former mayor of Marl who played a key role in ensuring that the westward expansion of the industrial park is now within reach. Volkhard Czwielong, who has been working at Infracor GmbH for about ten years, also strove tirelessly to make the expansion possible. A subsidiary of Evonik Industries AG, Infracor is a key element of the new Site Services Organization, which combines Evonik’s chemicalsrelated services. A special combination Czwielong heads the site development and geodata management units at Infracor, which operates the chemistry park. The industrial park is located at the northern edge of the Ruhr region, next to the Lippe River. Its area of 6.5 hectares makes it one of the largest integrated facilities in Germany, encompassing more than 900 buildings, 100 production facilities, and 55 kilometers of roads. Thirty companies use the Marl Chemistry Park’s infrastructure and services, which can be summed up in impressive figures: Besides the roads, the industrial park has 100 kilometers of tracks, a harbor at the Wesel-Datteln Canal, 1,200 kilometers of pipelines, 30 kilometers of pipe bridges, 70 kilometers of canals, three power plants, and two sewage treatment plants. Such locations are in great demand in the chemical and pharmaceutical industries because the combination of facilities, companies, and employee experience and expertise creates many advantages in areas such as energy efficiency and product supply. “We still have unoccupied plots of land on our premises, but the largest property available for construction covers only 20,000 square meters. Potentially world-scale facilities need between 50,000 and 100,000 square meters,” explains Czwielong. Uta Heinrich has also given the industrial park’s expansion her unequivocal support, even though she faced an uphill battle. “My party pushed through a city Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 42_Evonik_02-10_EN 42 03.09.2010 14:45:14 Uhr E X P E R I E N C I N G 43 Uta Heinrich, a former mayor of Marl, and Volkhard Czwielong from Infracor GmbH support the expansion of the Marl Chemistry Park 43_Evonik_02-10_EN 43 03.09.2010 14:45:18 Uhr PHOTOGRAPHY: PICTURE ALLIANCE/DPA (2) 44 E X P E R I E N C I N G The construction of the world’s largest coal-fired monobloc burner for the E.ON power plant in Datteln is very controversial A building permit has been issued for the planned highway bridge across the Moselle (montage), but criticism continues council resolution requiring all of Schlenke’s residents to agree to a move before they could be relocated. My fellow city council members from the Christian Democratic Party passed this resolution in the knowledge that it would be impossible to reach an amicable settlement with about 20 percent of the inhabitants.” But after Heinrich was reelected as an independent in local elections in 2004, the Marl city council passed a positive resolution allowing the westward expansion to be started in 2005. The Christian Democrats on the city council voted against the expansion, while the Social Democrats, the Free Democrats, and the Marl Citizen’s Union were in favor of it. The mayor then tipped the scales with her vote, which pitted her against her former fellow party members. “If you’re talking to potential investors at the industrial park and they ask what the residential community is doing over there, you can’t just tell them that we’ll decide the matter in three to five years. If you do that, chemical companies will just go elsewhere,” says Heinrich. Protests, objections, and lawsuits In late 2008 the Higher Administrative Court in Münster removed the last obstacles to the expansion by rejecting the suit of the Schlenke community’s last inhabitant and stating that its decision could not be appealed. The judges ruled that the city of Marl had a legitimate interest in safeguarding manufacturing jobs and that it could therefore relocate the inhabitants of Schlenke, by force if necessary. The court also stated that the community was not built so that its inhabitants could live in pristine natural surroundings—it was built to house mine workers, but it was no longer needed for that purpose. Despite her success, Uta Heinrich was not reelected in the next local election. “The media agitated against me endlessly. Luckily my job as a lawyer makes me independent, or I could have never put up with so much hostility,” she says. These days industrial and infrastructure projects are always accompanied by protests, objections, and protracted legal disputes. “Although industrial production and innovations are indispensable to our prosperity, we indulge ourselves in the luxury of letting lose a hail of objections and complaints against almost every new industrial and infrastructure project,” says Dr. Klaus Engel, CEO of Evonik. Michael Vassiliadis, Chairman of the Mining, Chemical and Energy Industrial Union (IG BCE), also warns against the growing hostility toward industrial projects. “We’re facing a new situation in which people no longer debate matters objectively, but instead resist projects with an almost religious fervor,” says Vassiliadis, who calls on lawmakers to restrict the participation rights of professional objectors. Throughout Germany, resistance is particularly intense against construction of new coal-fired power plants. The environmental organization Friends of the Earth Germany (BUND) is therefore delighted that 11 of 31 proposed plants have already been successfully scuttled. One of the most controversial projects is Block 4 of the E.ON power plant in Datteln, just a few kilometers from the Marl Chemistry Park. Construction of the world’s largest coal-fired monobloc burner with a net output of 1,055 megawatts began in 2007. The facility would consume 20 percent less fuel than the previous generation of power plants. Over €1.2 billion is to be invested in the facility. In exchange for building the big new power plant, E.ON plans to shut down older facilities in Datteln (Blocks 1 to 3) and in other parts of the Ruhr region. In September 2009 the Higher Administrative Court in Münster ruled that the building permit for the power plant was invalid even though work on it was by then well advanced. The court ruled that the city of Datteln should have chosen a different location for the power plant. In June 2010 the regional government rejected a petition by BUND to have the construction work stopped completely. E.ON can therefore continue to build the boiler house and the turbine hall, but not external facilities such as the coal and ammonia storage buildings. Cases similar to the one in Datteln can be found throughout Germany. As a result, the German Association for the Energy and Water Industries (BDEW) recently warned that increased use of renewable energy sources could suffer setbacks, although they are being advocated as alternatives to coal- and gas-fired power plants. “Without new grids, there won’t be any growth in the use of renewable energy sources,” says Hildegard Müller, Chair of the BDEW Executive Board. In a study published in 2005, the German Energy Agency (Dena) stated that 850 kilometers of extra high-voltage power lines would be needed to transmit wind energy Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 44_Evonik_02-10_EN 44 03.09.2010 14:45:28 Uhr E X P E R I E N C I N G 45 The “not in my backyard” principle from the coast along the North and Baltic Seas to the centers of energy consumption. Only 90 kilometers of these power lines have been completed to date. What’s more, the Dena study assumed that renewable energy sources would account for 20 percent of electricity production in 2020, but the government has now increased this target to 30 percent. “Everyone’s in favor of electricity from renewable sources, but they want it only if the required electricity pylons aren’t visible from their living room windows,” says Müller. The BDEW is therefore calling for a campaign to increase people’s acceptance of infrastructure measures by pointing out the link with renewable energy sources. The bridge and the Moselle wines Transportation projects also spark lengthy conflicts. For example, 40 years ago the authorities began to consider measures for linking Belgium’s major population centers with the Rhine-Main region. They concluded there should be a crossing of the Moselle River near the village of Ürzig. After several lawsuits had been resolved, an unrestricted building permit was issued in late July 2008 for construction of the highway bridge across the Moselle. But the dispute is still far from over. Two renowned authors of books on wine, Stuart Pigott and Hugh Johnson, recently joined the fray, claiming the bridge would endanger the Moselle wines. This was too much for Hajo Weinmann, spokesman of the Social Democratic faction in the Traben-Trarbach town council. “For years the town councilors of the communities along the Moselle have been discussing ways to improve the infrastructure and traffic flow,” he says. “Today, heavy-duty trucks still have to wind their way through the narrow streets of the region’s towns and villages. Our would-be rescuers should realize that. We don’t expect the bridge to have any negative effects on winegrowing.” The region’s premier, Kurt Beck, also rebuked the critics. “People act as though we want to roof over the entire Moselle River,” he quipped. No other Western nation is as hostile to new technology as Germany, claims the U.S. magazine Newsweek. “Germany needs a party that is for progress,” writes Michael Miersch in the magazine. The Social Democrats were such a progress-oriented party back in the early 1960s, when they campaigned with the slogan “A Blue Sky above 45_Evonik_02-10_EN 45 the Ruhr.” And the skies did become blue, thanks to progress resulting from innovation and technology. In his article, Miersch also claims that “many engineers, scientists, and technicians don’t feel at home in their own country, even though they are largely responsible for Germany’s prosperity.“ That’s why Czwielong and his team want to promote the Chemistry Park and safeguard jobs. Two years ago, experts mapped the locations of nesting birds and bats. “We’re creating alternative habitats for the bats, and we’ll let two buildings remain standing for use by the common house martin,” says Czwielong. The other houses of the community will be torn down. Czwielong is convinced he’ll be vindicated once the first potential investors examine the area. Together with Uta Heinrich and many others, he has played a key role in promoting a development that will benefit the Marl Chemistry Park as well as Germany as a business location. S U M M A RY Community action groups and nongovernmental organizations (NGOs) are increasingly hindering infrastructure and power plant projects in Germany. The opponents of such projects have also staged protests against coal-fired power plants in Datteln and, most recently, in Walsum. Even biogas facilities, wind turbines, and solar energy plants are being blocked nowadays. Another example is provided by the western expansion of the Marl Chemistry Park, which has now finally been approved after a ten-year dispute. • The Schlenke community is now uninhabited. Mine workers used to live here 03.09.2010 14:45:30 Uhr 46 R E C O G N I Z I N G Catching Rays with Chemistry Whether it’s solar cells or energy storage systems, thermal insulation or LED light sources, energy efficiency technologies have one thing in common: They are based on discoveries in chemistry TEXT KLAUS JOPP 46_Evonik_02-10_EN 46 03.09.2010 14:28:13 Uhr R E C O G N I Z I N G 47 The right stuff for capturing solar energy: The chemical element silicon (Si), which can be found in every grain of sand, plays a dominant role in photovoltaics, whether as metallic raw silicon (above Einstein), as a polycrystalline material for installation in solar cells (to the left of Einstein) or as a finished solar cell (blue). Einstein is considered a pioneer in the production of electricity from the sun; he provided the theory behind the photovoltaic effect GRAPHIC BY PICFOUR, WITH THANKS TO: NASA, EVONIK INDUSTRIES, THOMAS KOEHLER/PHOTOTHEK.NET, DOCK.STOCK, AKG IMAGES; ILLUSTRATIONS: DIETER DUNEKA CHEMISTRY IS THE KEY to energy efficiency and thus to protecting the climate. Just last year, the International Council of Chemical Associations, ICCA, presented a study showing that the greenhouse gas emissions saved by chemical products are double the amount of such gases that are emitted during their production. In 2005, chemicals production generated a total of 3.3 billion metric tons of greenhouse gas emissions worldwide. On the other side of the ledger, 8.5 billion metric tons were saved through chemical products. The energy efficiency of the industry’s processes is exemplary. From 1990 to 2007, the chemical industry in Europe reduced its greenhouse gas emissions by nearly 34 percent, although production was increased by more than 70 percent. The German chemical industry, the revenue leader in Europe, reduced its emissions by 37 percent by 2008, making it the international poster child in this area. However, the energy-intensive chemical industry cannot afford to rest on its laurels. It still accounts for nearly ten percent of the net electricity consumption in Germany. On the other hand, the know-how gleaned from the products is important for new, energy-saving solutions. Boosting energy efficiency ensures global competitiveness. It was against this backdrop that Evonik Industries AG established a center for energy efficiency, the Eco² Science-toBusiness Center, in Marl in 2008. The industrial group is investing over €50 million in more than 20 research projects by 2013. Solar energy and energy storage, in particular, benefit from advancements in chemistry. On the following pages, you will see how the first groundbreaking discoveries in chemistry have led to the broad range of green technologies we have at our disposal today, ranging from the production of renewable energies to their storage. Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 47_Evonik_02-10_EN 47 03.09.2010 14:28:23 Uhr 48 R E C O G N I Z I N G Browse our compact lexicon of the energy efficiency of Einstein’s energy An incredibly clean affair [Photovoltaics] Basic knowledge about photovoltaics, the direct conversion of sunlight into electricity, goes a long way back. The French physicist Prof. Alexandre Edmond Becquerel discovered the relationship between light and electricity back in 1839—without being able to explain the phenomenon. Another researcher who made valuable contributions to this endeavor in the early 20th century was the German physicist Prof. Wilhelm Ludwig Franz Hallwachs, who laid the cornerstone for the development of the photocell, photoelectricity, and the light-quantum hypothesis. Shortly thereafter, in 1905, Prof. Albert Einstein established a key foundation for the advancement of photovoltaics when he formulated his light-quantum hypothesis and thus provided a theoretical explanation for the photovoltaic effect. For this achievement he was awarded the Nobel Prize for physics in 1921. In 1954, Bell Laboratories in New Jersey (USA) produced the first solar cell based on the semiconducting material silicon. [Solar silicon] Solar cells are made from various semiconducting materials that are produced in high-purity form by the chemical industry. More than 90 percent of the solar cells produced around the world are made of silicon (chemical symbol Si). In principle the silvery gray metalloid is nothing special—it’s as common as sand on the beach. Silicon is the second most abundant element in the Earth’s crust. Nonetheless, a few years ago there was a significant shortage of silicon, because the production of this material in high purity (99.999 percent) is very complex and requires the appropriate chemical processes. The German chemical industry is involved in the production of silicon in a variety of ways. Wacker Chemie AG, which is based in Munich, is the world’s second-largest producer of high-purity silicon for the solar industry. The company primarily uses ribbongrowing processes as well as the directional solidification of multicrystalline silicon. The polysilicon used for these processes must be extremely pure if high wafer pulling yields and perfect crystals are to be achieved. These in turn are required for the production of solar cells with high levels of efficiency. Evonik Industries AG has developed an alternative production process. Hydrogen chloride is made to react with the raw silicon in or- 48_Evonik_02-10_EN 48 PHOTOGRAPHY: EVONIK INDUSTRIES Silicon is the stuff of which solar cells are made PHOTOGRAPHY: BELL LABS Physicists have been working on solar electricity for a long time der to transform the silicon into trichlorsilane, which in a further step is purified by means of distillation and subsequently converted into monosilane (SiH4) and purified once again. The colorless gas is then thermally decomposed in a reactor, leaving behind silicon that has the required purity. The great advantage of this process is that it saves up to 90 percent of the energy that is required for the conventional production process. According to the German Solar Industry Association, Germany has a total production capacity of 27,500 metric tons of solar silicon per year. But plastics also play an important role when it comes to capturing the sun’s energy. First, the plastic material is used to cover solar bricks with solar cells, and also to focus the sunlight by means of Fresnel lenses, which can be manufactured from plastic using a variety of methods such as injection molding or extrusion. Evonik has developed special PLEXIGLAS-brand molding compounds for use in these applications. At the Group there is also a focus on specialty polymers that are used to create solar cells which are particularly lightweight and flexible. Electrically conductive plastics are used for these organic photovoltaics. Another approach to generating electricity from sunlight involves the use of synthetic dyes. 03.09.2010 14:28:29 Uhr R E C O G N I Z I N G 49 solar energy Sharp Corporation, the world’s largest manufacturer of solar cells, brought the largest thin-layer cell factory on line this year in Sakai, outside of Osaka (Japan). Sharp plans a production volume of 1,000 megawatts per year PHOTOGRAPHY: SHARP, ILLUSTRATION: PICFOUR The subtle difference—but how great is its effect? [Thin and thick-layer cells] Conventional crystalline silicon solar cells are thick-layer cells that are manufactured from discs which are less than one millimeter thick, called wafers. The wafers are cut from either a single crystal (monocrystalline) or a block of crystals (polycrystalline). The cells consist of a p-layer that is approximately 0.6 millimeter thick and an n-layer that is only 0.001 millimeter thick. The two layers are doped with different impurity atoms (phosphorus and boron). It is this doping process that makes the conversion of sunlight into electricity possible. The efficiency of industrial-scale crystalline cells is between 16 and 20 percent. With material thicknesses of only a few micrometers (thousandths of a millimeter), thin-layer cells are significantly thinner than conventional solar cells. There are siliconbased solutions for thin-layer cells (amorphous and micromorph cells) as well, but there are also solutions based on a variety of other semiconducting materials. Organic solar cells and dye-sensitized solar cells (which are called Grätzel cells after their inventor) also belong in this category (see next page). Amorphous cells still hold the largest market share among the thin-layer cells today. They are significantly less expensive, but their efficiencies are only between five and seven percent. The micromorph thin-layer cell has a tandem structure consisting of an amorphous and a microcrystalline silicon layer. This configuration makes optimal use of the sun’s light spectrum because both of the silicon layers convert the entire spectrum of light, from violet to the near-infrared range, into electricity. This gives the tandem cell a potential efficiency of ten percent or more, which is roughly in the same range as the efficiencies of the alternative semiconducting materials. Efficiency values as high as 20 percent have been achieved in the laboratory. Some of these semiconductors are at a disadvantage in the long run because they are rare and in very high demand, besides being difficult to recycle. This is why the hopes for lightweight, flexible, and mobile solutions tend to rest on organic solar cells that are based on plastics and dyes. Through thick and thin Thin-layer cells are increasingly being used concurrently with the familiar thick-layer cells. In contrast to the conventional wafer solar cell, the light falls onto the surface structure of a thin-layer cell at an angle and strikes an optically reflective reverse side, which multiplies the light path of the cell several times. A 30-micrometer thin-layer cell provides nearly the same photovoltaic effect as a 300-micrometer thick wafer cell. The graphic shows a thin-layer cell on the left compared with a thick-layer cell on the right Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 49_Evonik_02-10_EN 49 03.09.2010 14:28:45 Uhr 50 R E C O G N I Z I N G The pioneer Michael Grätzel captures the energy of the Research is focusing on the organic solar cell The Grätzel cell Turning plastic into electricity [Dye layer] Prof. Michael Grätzel, a physicist at the Swiss Federal Institute of Technology in Lausanne (Switzerland), has developed a new concept that was inspired by the photosynthesis of green plants back in the early 1990s. Instead of using the chlorophyll of plants, the Grätzel cell captures solar energy by means of a layer of synthetic dye. What makes this cell so interesting is that it becomes more efficient as the light becomes weaker and more diffuse; that’s a particular advantage for regions that do not receive very much sunshine. The quality of the nanocrystalline layers in which the dye is absorbed is a prerequisite for high efficiency. These layers enlarge the active surface that is available for the photoelectric process by a factor of 1,000. A number of research institutions are now conducting research into alternatives to the synthetic dye in order to make the cells even more efficient. Grätzel himself, the winner of this year’s Millennium Technology Prize, believes that efficiencies in excess of 30 percent are possible. [Organic solar cells] Organic solar cells are made of materials from organic chemistry, in particular plastics. New developments have now given rise to electrically conductive and superconducting polymers. In the lab, light is converted to electricity with an efficiency of approximately 12 percent. The particular advantages of organic solar cells lie in other areas, however, including a tremendous potential to 50_Evonik_02-10_EN 50 The layer principle Incident light Substrate: Glass, film Back electrode (transparent) Transport layer PHOTOGRAPHY: FRAUNHOFER ISE, GRAPHIC: PICFOUR PHOTOGRAPHY: ACTION PRESS Prof. Michael Grätzel, winner of the “2010 Millennium Technology Prize” Electrical conductor Absorber: Polymer-fullerene Metal contact Organic solar cells are effective only if the electrons can move with ease from the polymer to the fullerenes and traverse the distance to the electrode quickly Fullerene accepter <50 fs Polymer donator lower costs, as the organic materials used are very powerful absorbers. An extremely thin layer is therefore sufficient to capture the light, thus resulting in very low material consumption. Furthermore, lower production costs can be achieved by means of print or roll-to-roll processes. Other advantages include flexibility, transparency, easy handling, low weight, and high environmental compatibility. Finally, large-surface technologies enable high electricity yields, and a targeted synthesis of the plastics enables them to be adapted to the spectrum of the sun. Films made of PLEXIGLAS, which Evonik Industries AG has been manufacturing for decades, could play an important role as a protective layer and a covering for the actual photovoltaic cells. The use of organic solar cells as building facade elements that allow light to pass through and generate electricity is also conceivable. The flexibility of organic solar cells virtually predestines them for mobile applications. For instance, they can be applied to backpacks or clothing and used to generate electricity for operating cellular phones. The German Federal Ministry of Education and Research is subsidizing organic photovoltaics to the tune of €60 million, with an additional €300 million being provided by German industry, including major chemical companies. 03.09.2010 14:28:52 Uhr R E C O G N I Z I N G 51 sun with a layer of dye The world’s largest and first solar charging station is in Berlin Solar storage on a grand scale Air instead of lead [Storage technology] Closely associated with the increased use of photovoltaics—and renewable energies in general—is the development of the storage technology. Particularly at night and under very cloudy skies, the yields from photovoltaic systems are in effect zero, and high-performance storage systems must be available to bridge these downtimes. Chemistry is also laying the groundwork here. Leading the efforts in Germany toward the development and production of large, rechargeable lithium-ion batteries is Li-Tec Battery GmbH, a joint venture between Evonik Industries AG and Daimler AG that is based in Kamenz, Germany. Smaller versions of such systems are already used in cameras, cellular phones, and laptop computers. However, their energy density must increase to 150 watt-hours per kilogram before they can be suitable for use in electric vehicles and industrial applications. Nor is existing battery technology reliable or safe enough for the power required of large-volume systems. Components from Evonik, in particular an innovative ceramic membrane, compensate for this disadvantage. The heat-resistant separator serves as a partition between the electrochemical reactions, and because it does not melt until it reaches 600 °C (Celsius), the risk of a short-circuit is almost completely eliminated. [Lithium systems] Already under development today are innovative lithium systems in which the oxygen in the air is supposed to serve as a reaction partner for the lithium. Designs of this type are expected to achieve an energy density of at least 200 watt-hours per kilogram, and their weight would be just one fifth that of conventional lead batteries. The ultimate outcome of this development could be the super battery, a particularly clever lithium technology that uses the air as a cathode. Researchers are dreaming of such systems, which could boast an energy density of 1,500 watt-hours per kilogram in approximately ten years. With a system of this kind, an electrically powered vehicle would require a battery pack weighing as little as 120 kilograms in order to enjoy a mobility range of 1,000 kilometers. A major contributor along the road to this goal has been the new MEET (Münster Electrochemical Energy Technology) battery research center at the University of Münster. The global race for the car battery of the future is in full swing. In the long run, this will also benefit stationary systems that could be used in many locations as storage stations for wind and solar power. With the support of the German Federal Ministry of Research, Evonik and Li-Tec have already packed 4,700 cells into a demonstrator called LESSY (lithium-ion electricity storage system), which is scheduled to begin testing in 2011. LESSY’s storage system has a power of one megawatt. Large lithium-ion batteries will store solar and wind power and make it available to the electrical grid. Evonik is developing a giant rechargeable battery called LESSY (lithium-ion electricity storage system), which will be roughly the size of a shipping container. A LESSY is fitted with 4,700 cells and has a capacity of 700 kilowatt-hours PHOTOGRAPHY: PEUGEOT DEUTSCHLAND PHOTOGRAPHY: YOUNICOS, ILLUSTRATION: EVONIK INDUSTRIES The four electric motors of the Peugeot Pure are in the tires Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 51_Evonik_02-10_EN 51 03.09.2010 14:29:09 Uhr 52 A C H I E V I N G Marie Curie received her first Nobel Prize for physics in 1903 together with her husband (left). In 1911 she was the first woman to receive the Nobel Prize for chemistry (right) The Women after Curie A hundred years ago, it caused a sensation when a woman, Prof. Marie Curie, received the Nobel Prize for chemistry. Today many women are studying chemistry, but only a few go on to occupy top positions TEXT DR. BRIGITTE RÖTHLEIN PHOTOGRAPHY: AKG IMAGES, PICTURE ALLIANCE/DPA, MARKUS PIETREK, ROGER VIOLLET/GETTY IMAGES THE RUSSIAN RAILWAY COMPANY was faced with a problem: Its workers regularly got frostbite on their faces when they were sent to build railroad lines in Siberia. Hands and bodies can be protected from the freezing cold with warm clothes and gloves, but not the entire face. That’s why the railroad officials turned to the Skin Care product line in the Care Specialties Business Line of Evonik Industries AG in Krefeld to ask whether its specialist for “working skin” also had a cream that protects against the cold. The requirements were that the cream should be easy to squeeze from the tube at below-zero temperatures, be easy to spread, and leave no greasy marks on workpieces, as siliconebased creams do. Dr. Petra Allef, Head of Research, Development, and Application Technology at Skin Care, took on the challenge and developed, together with her team, the silicone-free cream STOKO frost protect, which stands up to the Siberian cold thanks to a special anti-freezing property. Today the cream is used outside Russia as well, protecting workers in German refrigerated warehouses and researchers on the Arctic Ocean, for example. The product recently received the Innovation Prize of the British Occupational Hygiene Society. Petra Allef and her research department have many different kinds of problems to solve. For example, workers in the metal processing industry have to protect their hands from aggressive cooling lubricants, welders and road construction crews need face creams that offer very good protection from ultraviolet light (UVA, B, and C), and people in the cleaning and care professions depend on especially effective hand creams. The 15 researchers in the team keep finding unusual solutions, for example a new type of skin cleanser for use against heavy soiling from materials such as grease and oils—completely without abrasives. “Even as a child, I always wanted to be a chemist,” says Dr. Allef, who is now 39. When she decided at age 12 that this was the only profession for her, people only smiled. And when she expressed this wish as a 10thgrader at a job counseling session at the local labor exchange, she was advised to become a teacher instead, as “that’s something more suitable for women.” Dr. Bettina Lotsch, a 32-year-old professor of chemistry at Ludwig Maximilian University in Munich, didn’t have these kinds of problems early on, but she did find that at the university level there’s a serious break. “The number of men and women receiving doctorates is roughly equal, but there’s a dramatic difference when you get to the postdoctoral stage,” she says. Petra Allef didn’t get discouraged and pursued her ambition, even though the road was sometimes rocky. “I got my doctorate in natural product chemistry/stereoselective synthesis, because I would have liked to work in the field of pharmacology,” she says. “However, in spite of many job interviews, I didn’t get that kind of position. The jobs always went to men with professional experience.” She finally accepted an offer from Procter & Gamble and worked on optimizing aftershave and toothpaste for the Gillette brand. “I enjoyed that a lot, because in this field you get results quickly and then you can hold in your hand a product you’ve developed yourself,” she says. Strictly for men? Allef’s switch to Evonik was the result of a coincidence. She was sitting in an airplane reading a magazine when she noticed a job ad from Evonik Gold- Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 52_Evonik_02-10_EN Abs1:52 03.09.2010 13:29:20 Uhr Dr. Petra Allef, 39, Head of Research, Development, and Application Technology at Evonik’s Skin Care product line in Krefeld, learned early on to go her own way and not let others divert her 53_Evonik_02-10_EN Abs1:53 03.09.2010 13:29:23 Uhr 54 A C H I E V I N G schmidt GmbH. Without hesitating, she sent in a job application and immediately received a position as head of the synthesis group for cosmetic base materials. Five years ago she was promoted to the position of Head of Innovation Management at Skin Care. “After I became a manager, I never again had problems asserting myself professionally as a woman against the men,” she says. Less than a hundred years ago, such a situation would have been unthinkable. In 1911, when the famous chemist Marie Curie dared to apply for membership in the French Academy of Sciences, she caused a quite a stir. She had already been doing research with extraordinary success, and in 1903 she had received her first Nobel Prize for physics, together with her husband. When her candidature for the Academy was announced in the newspaper Le Figaro on November 16, 1910, the Paris newspapers discussed whether a woman was even entitled to a membership. There was a range of opinions, from disapproving conservatives to supporters of women’s rights who would have loved to see a woman in the Academy’s sacred halls. Paparazzi even tried to chase her down in order to get photos of the elegant 43-year-old woman scientist. The chemist Silvia Marten, 39, a department head at the Knauer company in Berlin, is benefiting from a child-friendly boss Women not admitted! On Monday, January 24, 1911, the Academy of Sciences took a vote. A large crowd of spectators had arrived, but only the men were admitted. A total of 58 members were present, so the absolute majority was 30 votes. The new member who was eventually accepted, with just a few votes more than Curie, was the physicist Prof. Édouard Branly, who subsequently faded into obscurity. Although Curie did not show her disappoint- 54_Evonik_02-10_EN Abs1:54 03.09.2010 13:29:25 Uhr A C H I E V I N G 55 Dr. Andrea Schütze, 44, a team leader at Shell Hamburg who is responsible for lubricants research, has learned not to conceal her accomplishments PHOTOGRAPHY: NORA BIBEL, POPPERFOTO/GETTY IMAGES, ULRIKE SCHACHT, ULLSTEIN BILD/ROGER VIOLLET Men communicate differently ment in public, she never made another attempt to become a member of the Academy of Sciences. It took 68 years for the elitist club to accept its first female member, the mathematician Prof. Yvonne Choquet-Bruhat. The Nobel Prize committee was more courageous: In 1911 Marie Curie received her second Nobel Prize, this time for chemistry. In the following years women did not make great progress in chemistry: In 1935 Curie’s daughter Irène received the Nobel Prize together with her husband, followed only in 1964 by the British chemist Prof. Dorothy Hodgkin. It remains to be seen whether a new trend has been signaled by the awarding of the Nobel Prize last year to the Israeli Prof. Ada Yonath. Although it’s true that in the 20th century there was a change of attitude toward women, one looks in vain for outstanding female role models in the field of chemistry during this period. Important women researchers have remained in the background, such as the British chemist Prof. Rosalind Franklin, who laid the groundwork in 1953 for the discovery of the structure of deoxyribonucleic acid (DNA), but never received the Nobel Prize. Women who were interested in chemistry tended to choose medical professions, where they had much better career opportunities. Today, however, there are many women chemists in scientific professions. According to a statistic of the National Pact for Women in MINT Careers (MINT: mathematics, information science, natural sciences, technology), approximately 47 percent of the freshmen majoring in chemistry in Germany are women. However, a gap opens up once they graduate. “There’s a clear discrepancy between the numbers of women studying chemistry and the numbers entering it as a career and becoming professional scientists,” says Dr. Ines Weller, a professor at the University of Bremen who works at the Research Center for Sustainability Studies/Center for Gender Studies. “We’re not managing to keep this high proportion of women. Instead, it drops significantly during the subsequent phase of advanced studies.” The chemistry professor Bettina Lotsch believes there are several reasons for that. The most important one is that many women believe they have to decide between having a family and having a career. In order to show women possible solutions, universities have to start as soon as possible, according to Lotsch, a 32year-old researcher who doesn’t believe that quotas for women are a good solution. “As early as graduate school, we should be showing women different possibilities for combining a family and a career. And then, of course, we have to create the corresponding infrastructure, for example having daycare centers on campus.” Self-presentation is crucial Silvia Marten has successfully combined a career and a family. She heads a department at the Knauer company in Berlin, which specializes in manufacturing scientific equipment, and has a nine-year-old daughter. Her husband travels a lot for his job. “Fortunately, my daughter’s grandparents help out a lot, but daily life still requires lots of organization,” says the 39-yearold chemist. Marten’s job requires her full concentration and lots of travel, as she is in charge of so-called “column phase application.” This is a process in highperformance liquid chromatography (HPLC) in which mixtures of substances can be separated with extreme precision and analyzed. Marten and her six specialists are direct contact persons for the customers. Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 55_Evonik_02-10_EN Abs1:55 03.09.2010 13:29:27 Uhr 56 A C H I E V I N G Becoming a manager is no piece of cake The child-friendly policies of Silvia Marten’s employer have helped her to combine her career and her family. Alexandra Knauer, the owner and CEO of this medium-sized company, helps her 104 employees out wherever she can. She has set up a children’s room where employees voluntarily take care of the children at the company’s expense. “Taking care of each other’s children reinforces communication between the employees and improves the working atmosphere as a whole,” says Knauer, who is herself the mother of two children. “We simply can’t afford to let the professional potential of women lie fallow,” she says. She believes it’s even more important to strengthen the way women present themselves. “We have to realize that we’re just as good as the men, and we have to clearly communicate our achievements,” she emphasizes. That’s why she also offers training courses for women employees, where they can learn how to present themselves and how to deal effectively with their male colleagues. PHOTOGRAPHY: THOMAS DASHUBER, ULLSTEIN BILD/AISA Good work alone is not enough Dr. Andrea Schütze has also had to learn these professional skills. Schütze, a 44-year-old chemist, was previously responsible for developing fuels at Shell in Hamburg; since January 2010 she has been a team leader in the area of lubricant research. Together with her 12 team members she develops lubricants for the bearings of various transmission systems, ranging from window lifters in cars to airplane landing gear and wind turbines. All of these applications have very different requirements, so her group always looks for the optimal lubricant for every purpose. In her work she deals not only with chemistry but also with process engineering. This is really male territory, but Andrea Schütze was undaunted. “I’ve always been interested in chemistry, especially its practical applications. Besides, I like cars,” she says. Her parents also worked in technical professions, so she had no fears regarding technology. What was new to her was the way women have to present themselves in a man’s world. “Men always show off their achievements, but women still have to learn how to do that. Good work alone is not enough,” she says. “It’s wrong to simply expect the boss to seek you out when there’s a higher position to fill. You have to make sure you’re not overlooked.” Bettina Lotsch has also observed a difference between men’s and women’s behavior on the job. “One theory about why there are so few women professors in the universities is that the structures there are very masculine. They are characterized by networks, and men communicate differently. It’s not always easy for women to find their way in this male-oriented world,” she says. Nonetheless, she deals with this difficulty in a relaxed way: “At meetings I don’t feel I always have to dominate the discussion. I tend to stay in the background. I don’t need power.” What motivates her is science. Even as a student she was one of the best, and she received scholarship aid from the Chemical Industry Fund. In her master’s thesis she combined aspects of physical, organic, and inorganic chemistry, which are traditionally strictly separate. She still follows this approach today. After receiving her doctorate she went to Toronto, Canada, where she worked in the field of material chemistry. She had previously concentrated more on fundamental research, but now she changed her focus to applied research. For example, she investigated porous materials on the nanoscale, which have impor- Chemistry professor Dr. Bettina Lotsch, 32, doesn’t believe in quotas for women. The University of Munich persuaded the nanoexpert to return to Germany from Toronto (Canada) Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE September 2010 56_Evonik_02-10_EN Abs1:56 03.09.2010 13:29:28 Uhr A C H I E V I N G 57 tant applications in the areas of gas storage, catalysis, and sensor technology on account of their extensive surface area. It is hoped that their customized production will open up possibilities for a new “soft” chemistry. This field, known as “functional nanostructures,” is a hot topic at the moment, so the University of Munich was not about to let this extraordinary young researcher go. It lured her back by offering her a professorship, which she accepted in February 2009. Now Lotsch has to show whether she is equal to the demands of this leadership position. “I have to build up my team, settle in, and start by getting used to being a professor,” she says. “And of course I have exactly the same teaching obligations as my colleagues.” She certainly can’t expect any special treatment. Sylvia Martin sums up the situation as follows: “Women definitely have to be better than the men; you have to work hard to be accepted in this profession. It’s no piece of cake.” It is therefore all the more important for women to enjoy their work, feel comfortable in their jobs, and not let themselves be put under pressure. After all, unlike the days of Marie Curie, all doors are now open to women chemists—they merely have to step inside. S U M M A RY Approximately 47 percent of the freshmen majoring in chemistry are women, but there are still very few women in managerial positions in the chemical industry. The main reasons for that include the difficulty of combining a family and a career—as well as the way women present themselves, because they often don’t feel they can handle managerial responsibilities. The solution involves building better infrastructures and promoting stronger self-confidence among women. • • • 57_Evonik_02-10_EN Abs1:57 03.09.2010 13:29:32 Uhr 58 L I V I N G Microzoos for Saving the World TOM SCHIMMECK reports on biochemistry that aims to solve global problems ILLUSTRATION PETER PICHLER “WE’RE TRYING to find the ultimate solution for replacing oil,” says Prof. James C. Liao, Professor of Chemical and Biomolecular Engineering at the University of California in Los Angeles (UCLA). “That’s because the age of petroleum is coming to an end.” Prof. Liao’s words aren’t just an empty boast. He and his team have backed them up with pioneering research that is moving toward “green” biochemistry, which could solve global problems. Their approach involves genetic alteration of microorganisms. The trick here is to manipulate bacteria so that they become able to turn a source of anxiety into a cornucopia of benefits. One example is carbon dioxide. Since the start of the Industrial Revolution, human beings have produced many gigatons of it, in addition to the amounts generated by natural processes. Carbon dioxide isn’t a pollutant; on the contrary, it’s essential for life on Earth. The problem is its increasing amounts. The CO2 from factory smokestacks, power plants, and vehicles is worsening the notorious greenhouse effect that is changing the climate. What can we do with the gas? In the Petri dishes in their labs, Prof. Liao and his team are growing a genetically altered variant of the cyanobacterium Synechococcus elongatus, a photosynthetic freshwater bacterium that can turn the problematic CO2 into clean fuel. Liao’s team is also working with the well-known intestinal bacterium Escherichia coli, whose metabolism the researchers have altered in such a way that this coli bacterium has mutated into a fuel factory. “We’ve been lucky to find a new method for very efficiently transforming carbon dioxide into fuel,” reports Liao modestly. There are microorganisms in nature that can ferment plants with high sugar or starch content into alcohol. However, natural microorganisms produce only materials with a low energy content. So far, all attempts to increase this energy content have proved to be far too inefficient. But the bacteria from Prof. Liao’s microzoo are able to perform mighty feats: They can transform CO2 into higher alcohols consisting of longer molecular chains, including biofuels such as isobutanol, which yield much more energy than the well-known ethanol. And they do it by means of photosynthesis, which is fueled by solar energy. So emissions once again become fuel. This may sound a bit like turning water into wine. But it’s actually even better, because if such a process becomes available on an industrial scale, a problem would immediately be solved and a new, clean fuel would simultaneously be produced. “We’ve shown that this possibility is feasible,” says Liao. However, he adds that it will take a great deal of further effort before the method can be used by industry. He predicts this will happen “in five to ten years.” James Liao, who grew up in Taiwan, started out as a chemical engineer. He has been a professor at UCLA since 1997 and has received so many awards for his pioneering work that he could easily decorate an entire wall with them. In June 2010, Liao received the Presidential Green Chemistry Challenge Academic Award of the Environmental Protection Agency in Washing- ton (District of Columbia, USA). This coveted prize is awarded for the development of alternative technologies that reduce toxic waste or even help to eliminate it altogether. President Barack Obama sent his congratulations. According to Liao, a chemical engineer “is always looking for ways to manipulate chemical reactions within a system.” Liao is using this approach today in order to find out how we can change the chemical reactions taking place inside a cell. It wasn’t until the beginning of the 21st century that scientists began research focusing on altering cell metabolism. A metabolic engineer? Could the profession be an icon of the postindustrial age? The new research areas are in fact called “metabolic engineering” and “synthetic biology.” Initially, says Liao, “we couldn’t imagine our work would develop such a tremendous impact.” But today the pressure of global problems is the scientists’ strongest motivation. “I always encourage my students to aim high,” Liao says. But there’s no cause for megalomania, he adds: “It takes many small steps to achieve a major change.” Microorganisms taking over chemical production. According to Liao, an initial “bacteria factory” could be built right next to a power plant—enabling it to directly transform the plant’s CO2 emissions into biofuel. This could potentially even be cost-efficient. Does he consider himself a genius? “Nature has created all of this,” says Liao evasively. “We’re only channeling the natural biochemistry of the cell into a useful process.” Evonik Magazine CHEMICAL INDUSTRY SPECIAL ISSUE 2010 58_Evonik_02-10_EN Abs1:58 08.09.2010 12:19:05 Uhr www.evonik.com Exceptional solutions in plastics are no exception for us. Evonik.indd 1 03.09.2010 16:36:19 Uhr www.evonik.com Who gives electric cars such powerful acceleration? We do. Tomorrow’s cars will run on electricity. Evonik delivers the essentials to make it happen – components that make lithium-ion batteries safer and more powerful with longer life. This winning technology will give our customers in the automotive industry that all-important innovative edge. We are the creative industrial group from Germany active in the fields of Chemicals, Energy and Real Estate. Evonik.indd 1 03.09.2010 16:35:52 Uhr