“Fecc: THE European voice of the chemical distribution industry”

Dr. Uta Jensen-Korte, Director General, Fecc

AssICC, General AssemblyRome, 26 May 2014

Content

• Fecc in a nutshell Membership The European distribution sector Mission & Objectives

• Fecc’s activities

Fecc Membership

National Associations: 15

Company Members: 37

Associate Members: 9

Fecc represents around 1650 companies of which 830 are distributors with around 30,000 employees annual sales turnover of about 27 billion EurosSource: Fecc Statistics 2013 (2012 data)

Chemical distribution - ICCTA

Key statistical data - Survey 2013 (Data 2012)

Fecc Americas ICCTA (Fecc + Americas)

N. of Member Companies: 1.617 609 2.226

N. of Distributors: 832 455 1.287

N. of Employees: 32.158 37.839 69.997

Turnover (billion Euros): 27.2 33.0* 60.2

N. of sites: 1.114** 2.054** 3.168

Source: Fecc/ICCTA Statistics 2013 (2012 data)

* Canada not available ** Austria, Brazil Switzerland and Denmark not available

Fecc company members

90% listed in the ICIS 2013 Top 100 EU chemical distributors

Fecc membership

15 National Associations:

AT (WKO), BE (BACD), CZ (SCHOD), DK (KLS), FI (TKL), FR (UFCC), IE (IACI), IT (AssICC), NL (VHCP), PT (GROQIFAR), ES (AECQ), CH (SGCI), SE P&K), UK (CBA)

European chemical distribution sector

Source: BCG study - 2013

* Other W. Europe – Austria, Belgium, Denmark, Finland, Greece, Ireland, Luxembourg, Netherlands, Norway, Portugal & Sweden.

** Central & E. Europe – Bulgaria, Czech R, Estonia, Hungary, Latvia, Lithuania, Romania, Slovakia & Slovenia.

2010: % Members with this activity

2011: % Members with this activity

Chemical distribution sector2011: % Members supplying this sector

Source: Fecc Statistics 2012 (2011 data)

Chemical Distributor Types - Europe

Focus on Industrial Chemicals

Focus on Specialities

Reg

iona

lPa

n-Eu

rope

an

Regional / NationalIndustrial Chemicals Distributors

National / “Sectorial”Specialty Distributors

Pan-European Generalists

(„Full-line Distributors“)

Pan-EuropeanSpecialty Distributors

(„Buy & Build“ / LBO‘s)

Traditional Specialty Distributors(often family owned)

AlliancesAlliances

Source: TER GROUP, DistriConsult analysis

Business Set-up

Schematic

Distributors can with reasonable accuracy be characterised by their “business set-up“ and their geographical reach across Europe

Value added services, access to emerging markets and ability to adapt to regulations and complexity (ATKearney 2013, BCG 2013, Accenture 2012)

Chemical Distribution: Key considerations

Projected key value added servicesMixing, blending, formulatingCustoms handlingVendor managed inventory

• From 2008 to 2012 the chemical distribution market grew by more than 9% (or 7% excluding inflation)

• Growth is likely to continue – 6-7% Source: BCG study - 2013

Chemical Distribution: Forecast

Mission & Objectives

Mission

Promote the European chemical distribution industry in order to ensure a sustainable business environment for the sector in the short, medium and long term

Represent Fecc members' interests at European and international level

Foster co-operation within the chemical distribution sector

Objectives

Regulatory affairs Responsible Care Communications Co-operation within the industry

Fecc Strategy 2011-2014

“Become THE opinion maker within our industry so that we are the natural partner for our members, European Institutions and stakeholders”

Motivating

Improving

Succeeding

Sustaining

Innovating

Out Reaching

Networking

Uta Jensen-korteujk@fecc.org

Communications

Camila Diaz Oliveroscdi@fecc.org

Office Assistant

assistantfecc@fecc.org

HSE

Ophélie Roblotoro@fecc.org

Life Science & Trade

Joel D’Silvajds@fecc.org

RC & LOG

Jan Thienpont (1May 13)jth@fecc.org

Fecc Secretariat

• SHE Cttee (REACH, CLP, Seveso, Biocides, etc.)

• ECHA contacts• CARACAL• Sherpa DCG etc…

• GTDP Cttee (Pharma,Food,Cosmetics)• EXCiPACT (Board Member &

Treasurer)• International Trade Cttee• Distribution Agreements and

Competition Law• Other legal issues

• RC Cttee • PS Cttee• Logistics Cttee• Precursors Cttee• SQAS/ESAD steering Cttee• ICCTA backup

• Invoicing• Administration• …

• Newsletter / Website• Congress / Events• Media relations• Publications• Copy writing

• ICCTA Fecc Secretariat• DCG• CARACAL • SQAS/ESAD etc…

Fecc’s activities

Product Stewardship

• Joint committee of distributors & manufacturers

• Joint Cefic/Fecc PS guidelines (revised) & Fecc PS good practices for Chemical distributors

• PS Cttee focusses on topics affecting the whole supply chain:• 2013: Chlorinated solvents: The time is over only to sell a

product• 2014: Food Safety: How to comply as a chemical

distributor

Fecc’s activities

Responsible Care• Initiative of continuous improvement in health, safety , security

and environmental performance

• Together with Cefic a voluntary third party verification system was set-up to evaluate performance of chemical distributors, SQAS Distributor / ESAD

• Cefic and Fecc works on the integration of corporate social responsibility and sustainability into SQAS and ESAD

Fecc actively promotes RC within its membership!

RC/RD Implementation (data 2012) *

% Distributors committed to RC/RD by country (2010-2012)

* DATA CH AND A NOT RECEIVED

Activities of the Working Committees

Good Trade and Distribution Practices• Active in all Pharma, food, feed and cosmetics related issues

• EXCiPACT -international GMP and GDP standard for excipients

• Asbl set up January 2014

• Responded to EC consultations on APIs and Excipients.

• Cosmetics Regulation update document – 2013

• Fecc Regulatory & Quality Symposium March 2014

International Trade• Analysis/ Factsheets of trade in Magreb, Turkey and Russia

• Trade Meeting – Russia and beyond? – November 2013

• Monitors developments pertaining to FTAs and trade barriers

• Distribution Agreements & Competition Law Workshop‘s

Activities of the Working Committees

• Logistics Committee Monitors the developments in EU and international legislation

Development of guidance e.g. Best Practice Guidance on the safe (Un)Loading of Road Freight Vehicles

Precursors• Fecc/Cefic commented on the Regulation on explosive & drug

precursors

• Participation and input to the CBRN Advisory group & subgroups of the Commission

• Fecc Model Agreement on voluntary measures on substances subject to Trade controls

Activities of the Working Committees

Safety, Health & Environment• Support for the 2018 REACH registration deadline (DCG,

guidance)

• Joint industry guidance on supply chain communication & on extended Safety Data Sheets

• Involvement in the development of an electronic exchange format for Exposure Scenarios

• Member of the ECHA Expert Network on Exposure Scenarios (ENES), 6th Workshop (13/14 May 2014)

• Update on the Seveso Directive & Biocidal Product Regulation

Hot topics

The 2018 deadline and the overall cost of registration• Transparent and fair cost sharing in SIEFs• Staged payment to help an SME that would like to buy a LoA• Free letter of Access for multiple registered substances between 1-10 t • More acceptance of (Q)SAR for newly registered substances

Extended SDSs Harmonisation of information to Poison Centres Improvement of the C & L Inventory EU Falsified Medicines Directive and related activities EXCiPACT Fecc Model Distribution Agreement

Partnership in the supply chain

ICCA-ICCTA, Cefic-Fecc Fecc an Affiliated Association of Cefic

• Joint forces for advoacy & expertise to mutual benefit

DUCC• A.I.S.E, CEPE, Cosmetics Europe, EFCC,

ECPA, FEA, Fecc, FEICA, I&P Europe, IFRA

• Contributing constructively to the implementation of REACH &CLP

INTERNATIONAL

COUNCIL OF

CHEMICAL

ASSOCIATIONS

Building alliances

Conclusions Benefits of Fecc membership

• Majority of chemicals legislation initiated in Brussels

important to have contact with EU institutions to track and influence, to ensure your concerns are heard

• Early awareness of legislative developments

• Technical advocacy and advice to membership

• Networking opportunities with institutions and within membership

• Industry visibility due to Fecc membership

Fecc and NA’s have different roles – they are complementary

We look forward to continuing enhanced cooperation!

Thank you for your attention!

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www.fecc.org