INTERVIEW WITH FELIPE PÉREZ RUIZ (HENKEL)ANALYSIS OF THE SURFACE TREATMENT SECTORpage 2

INTERVIEW WITH JOAN SERRET (HENKEL)page 4

HORIZON 2020:EUROPE’S COMMITMENT TO INNOVATIONpage 5

MODERNIZATION OF REFINERIES IN ALGERIAIN THE PROJECT FORUM WICAPpage 7

WICAP:FORMULA FOR SUCESSpage 9

CHEMICAL NEWS

CHEMICAL NEWS page 2

Which are the biggest challenges in this sector?One of the main challenges is eliminating metals from the process, like nickel, and also simplifying and reducing costs from the whole process. The surface treatment requires a very high consumption of water and energy, and it also produces a lot of mud that has to be removed. The baths work at 40 to 50 Celsius degrees temperatures, and that implies a high consumption of energy. The consumption of water is also high because of the dragging of the bodyworks, the evaporation due to high temperatures and the washing and rinsing stages. Therefore the biggest challenge is to optimise the process: less consumption of water, energy and mud. To get that, we have to lower the working temperatures for the baths and reduce the number of stages. We have to simplify the process and make it more sustainable.

Which changes have you seen in the vehicle bodyworks over the last few years? The substratum of vehicle bodyworks has undergone changes in the last years. From the steel of some years ago to current galvanized metal, preprotected sheets, aluminium, plastics,

«The forecast for the surface treatment sector is highly optimistic»

What is exactly surface treatment?Surface treatment is the first stage in the painting process of vehicles. It gets the vehicle bodywork ready for electrophoresis and the final painting colour.

Which stages does it involve? It is a long and complex process, including several stages, in which the vehicle bodywork goes through immersion baths and spraying methods. In simple terms, it starts with degreasing and activation, and it ends with a layer of phosphate before electrophoresis. These last two layers, phosphate and electrophoresis, are the ones that protect the car against corrosion, and on top of them the next layers of paint can be applied.

FELIPE PÉREZ RUIZ, TRANSPORTATION CHAIRMAN AT HENKEL (SOUTH EUROPE)

The automotive sector, including the surface treatment, is going through a very positive moment in Spain. After the crisis of the last years, the optimisation of costs from the vehicle manufacturers and the arrival of several new car models to the Spanish factories are shaping a promising future. In addition, new technologies are simplifying the surface treatment, and making it more sustainable.

THE PRODUCTION OF AUTOMOBILES IN SPAIN HAS GROWN 12% DURING THE FIRST HALF OF THE YEAR 2014

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etc. In particular, including aluminium in some pieces has lead to changing the process in order to get a correct phosphate application and corrosion protection.

Which solutions have been developed for bodyworks including aluminium in their substratum? At Henkel we have been successfully working for several years with our Two-Steps system, looking for a safe, stable and economical process that could reduce the extra cost of treating aluminium. This process is recommended for any proportion of aluminium in the bodywork, and we have received some international awards on innovation for it.

Which are the main novelties in the surface treatment sector?Our second solution, which in Henkel we call TecTalis, is applied to bodyworks with all kind of substrata. Its goal is to eliminate heavy metals and simplify the process so that the bath can be done at room temperature, and that implies seriously reducing energy, water and maintenance costs. It also decreases the formation of muds.

Which has been the sector’s answer to these novelties?Both solutions have already been implemented. The market has started including these technologies in the last fi ve years, and we

foresee an expansion to the majority of the bodywork lines in the next fi ve to ten years.

Which is the current situation of the automotive sector in Spain?Spain has a very peculiar situation in the automotive manufacturing sector. There are very few countries in the world with all manufactures as it happens here. Companies work with a very broad diversity of specifi cations, and that is a very important know-how added value. Between 2008 and 2013 the sector has suff ered the crisis in a very deep way, and we went from over three millions of bodyworks to under 2.3 millions. But in this time the sector has optimised its internal costs and factories have been automatized in a way that makes that today, in 2014, we are ready and tremendously competitive to make car manufacturing in Spain even more attractive. That explains why in the fi rst six months in 2013 production has increased 12% compared to last year.

Which is the forecast for the next years?The forecast is highly optimistic for 2015 and 2016. One of the most relevant factors is the number of new models that manufacturers are bringing to Spain. Practically all of them are manufacturing or are about to manufacture new models in our country. That had never happened before this way. Even though Spain is part of the mature European marketplace, its dynamism is comparable to the emerging countries.

The companies operating in Spain should take advantage of this momentum to make even more investments in the country and regain the inertia that we lost in the last few years. We must strengthen the role of the Spanish companies and try to be more infl uential in design, innovation and the implementation of new processes. I am very optimistic about the automotive Spanish market, and I think that this production improvement is going to last.

FOTO: HENKEL

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The Henkel industrial business area, with adhesives, sealants, and surface treatment, represents 50% of turnover; and specifically we consider the field of surface coatings (Functional Coatings) to be strategic in the industrial markets in which we operate, so it is one of the development platforms in our R & D policy in adhesive technologies.

What is your view of the industry both at the Spanish and the international level? The surface treatment industry in Spain has adapted and reorganized in the years of economic crisis and we are starting to see the results of this restructuring. Internationally this sector evolves following the development of emerging markets, providing solutions to the treatment needs of new materials and new coatings to reconcile growth and sustainability.

What are your expectations for Eurosurfas 2014? Three years after the previous edition, the industry has evolved and our expectations are about taking this meeting as a sounding board for our new products, developments and technologies; and also we expect to know firsthand with visitors and clients the current state of the industry and future visions.

«We believe it is possible to reconcile growth and sustainability»How would you define the hallmarks of Henkel? We are a global leader in brands and technologies in the three business areas in which we operate. We always focus on our values which are: the customers, people, sustainability, and financial and family goals.

What is your assessment after more than 50 years in the Spanish market? It is a very positive one. Our brands have reached leadership positions in all sectors in which we operate in the Spanish and Portuguese markets.

What are your challenges? They are the same that society and markets have. On one hand, to reconcile growth and sustainability; believe in the power and potential of changing reconciling growth and resource conservation. On the other hand, uncertainty and rapidly changing markets require adaptation strategies.

You have the adhesive technologies area, which provides solutions to various professional fields such as surface coating. Is it an important asset for Henkel?

JOAN SERRET, BUSINESS RESPONSIBLE AT HENKEL

IN SPAIN SINCE 1960

Founded in 1876 and headquartered in Dusseldorf, Henkel has about 47,000 employees worldwide and is a leader in three business areas: detergents and home care, cosmetics and adhesive technologies. Henkel came to Spain in 1960 and in 1989 entered the Portuguese market.

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The programme is based on a strong public investment for the period 2014-2020 in order to achieve, in the words of the Commission, “sustain-able, smart and inclusive growth

for the future.” Horizon 2020 wants to support the best lines of work and, for the first time, puts together in one package all European re-search funding. This unification, and the fact that the rules are the same for all participants, is intended to reduce bureaucracy and get more efficiency.

The Horizon 2020 programme has three main strategic objectives:

SCIENCE OF EXCELLENCEEurope should strengthen its position in the global scientific context. For this purpose the budgetary allocation to the European Research

Council (ERC), which subsidizes European re-searchers at the highest level, is increased by 77%, and the field of work of the so called Fu-ture Emerging Technologies (FET) expands, including projects related to disruptive tech-nology and with a high interdisciplinary ap-proach. Two examples of that are currently be-ing developed: research on graphene and the Human Brain Project.

The Marie Curie programme, which has been running since 1996, increases its budget by 21% to keep working on the training, mobility and skills of more than 50,000 researchers. Another priority is to improve the research infrastruc-

THE GOAL IS TO REDUCE BUREAUCRACY AND WIN EFFICIENCY

EUROPE PROMOTES RESEARCH, INNOVATION AND COMPETITIVENESS IN A PROGRAMME WITH UNPRECEDENTED ECONOMIC SUPPORT

Horizon 2020: the most ambitious programme

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ture network throughout Europe, enabling the transfer of knowledge and a best access to da-tabases for researchers.

TECHNOLOGIES AND APPLICATIONS In this goal, the industry has a central role, with signifi cant investments in key areas for devel-opment as ICT (Information and Communica-tions Technology) advanced manufacturing, biotechnology, nanotechnology and space. Ac-cording to the Commission, the industrial lead-ership in the future will be related to the ability of the technology and its applications to pro-vide answers to the real needs of society.

The commitment to competitiveness is linked to facilitate access to venture capital. The pur-pose is to overcome shortfalls in the availabil-ity of debt fi nancing and fi nancial resources for innovation in all phases of development for companies and R + D + I projects. This includes especially small and medium enterprises (SME) through the COSME programme. SME with po-tential for innovation and internationalization may receive additional support.

And within the industry, the Commission wants to bet on SME for their enormous growth po-tential throughout the European Union.

SOCIAL CHALLENGESHorizon 2020 wants to focus on six key areas that aff ect people’s life: health, food security and sustainable agriculture, energy, transport, climate action, and achieving inclusive and safe societies. All these lines of research will have an implicit gender policy. The results should pro-vide a direct benefi t to citizens: from paying attention to the challenges of an aging society and protection against cybercrime to the tran-sition toward an effi cient low-carbon economy.

80,000 MILLION EUROS

Horizon 2020 is endowed with this amount and will provide funding at all stages of the process: from basic research until the prod-uct reaches the market. This huge invest-ment is based on economic analysis. The Commission has a recent survey, according to which, if it can invest in R & D a 3% of Eu-ropean Union GDP by 2020, 3.7 million jobs will have been created in 2025.

INDUSTRY HAS A CENTRAL ROLE IN THE PROGRAMME

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«Algeria wants to sell more oil and gas to Europe»

Can you briefly describe the purpose of this project?This refinery was built in the early 60s and is dedicated to the production of gasoline and diesel. Because of its age it does not meet cur-rent standards as required by the Kyoto Protocol and its product cannot be sold in Europe. The goal is to expand production by 35% and adapt it to European standards, although in principle is expected to produce for the national market as a priority.

What difficulties does the project present?The administration tends to be a bit slow and that is a challenge. Algeria is a level 4 seismic zone and this means that every 10 years there may be a major earthquake. All civil works must

take this aspect, which is especially checked, into account. In Europe the intervention of a professional association for this type of review is enough, but in Algeria the state administra-tion is involved, and this implies an important delay of time. Another type of difficulty is the management of visas for foreigners which oc-casionally has affected the incorporation of some workers to the project on time.

Has bureaucracy influenced some other issue?Yes, there is a very demanding control over ma-terials at customs, for example in the case of ra-dioactive material that at some point we’ve had to import.

Can a project like this raise the participation of innovative companies?In the field of refineries there are few companies in the world specializing in achieving greater ef-ficiency in the refining process. From this point of view we could say that everything is invented. The project was designed in France but could have been done elsewhere and the necessary construction know how would not have varied. But I’m sure the companies that will come to Expoquimia may bring some elements or new methods that can fit during the operational

«THE GOAL IS TO EXPAND PRODUCTION BY 35% AND ADAPT IT TO EUROPEAN STANDARDS»

SALVADOR ESCUTÉ, ALGIERS SIDI REZINE REFINERY PROJECT ENGINEER, WILL MAKE A PRESENTATION IN WICAP PROJECT FORUM

With over 15 years of experience in large scale projects, Salvador Escuté is responsible for the modernization of a big refinery in the Algerian capital, managed by the state-owned company Sonatrach. Escuté will be present in Expoquimia to account for the project and explain the business opportunities in this country.

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phase once construction is completed, such as instrumentation for leak checking, analysis of residuals, wastewater treatment or others that will be of interest in the near future.

Does the plant in which you are working have a strategic significance for Europe?Yes it does. This is the first refinery that retro-fits but others will follow in the coming years. In fact all the refineries of the country will catch up. Algeria will focus on selling to Europe more oil and oil derivatives, plus natural gas (via pipe-line or liquefied), especially considering the tense situation between the European Union and Russia. They want to appear as reliable part-ners and although, as I said, right now the pri-ority is the local market, exporting to Europe is the next goal. There is only one hour flight from Barcelona to Algiers and distance shipping is very short compared to the major international routes. And that makes everything easier.

What do you expect from your participation in Expoquimia?

I was told by the organization that the event wants to be a meeting place of different companies with different needs in order that companies may find the solutions they seek, according to the law of supply and demand. I can explain opportunities that exist in Algeria and who should be addressed in case a com-pany wants to enter this market. And, last but not least, on what terms they need to talk with the authorities taking into account local spe-cificities. I guess some companies will be more interested in the refinery project and others in the context of the country for other busi-nesses.

And what is your vision of this event in general?My previous reference was based on a visit I made a few years ago where the idea of trade show prevailed, but now I perceive a change aimed at creating a large and attractive stage where exchanges between enterprises of all sizes and this can be a unique opportunity for small businesses. Nothing less than the differ-ence between dying or surviving.

ALGERIA

ALGIERSSIDI REZINE

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INNOVATIVE NETWORKING FOR SCIENCE, TECHNOLOGY AND INDUSTRY

WICAP: the formula for sucessBarcelona is developing the World Chemical Summit, and international, cross-cutting and innovative platform to foresee industrial needs and offer the chance to be part of the markets of the future. WICAP is the tool to get all that. It is a new networking experience at the highest level with public presentations and scheduled B2B meetings.

WORLDLeading companies and the most ambitious and cutting-edge projects from all over the world have a date in Barcelona. It is a unique opportunity to get first-hand knowledge of the real needs and establish strategic agreements. Emerging markets and innovative solutions join in one space to facilitate selecting suppliers and procurement processes, and to increase competitiveness in the international arena. Science and industry will be closer than ever.

INVESTMENTGovernments and Ministries from several emerging countries will explain their needs and challenges to companies willing to offer effective solutions through collaborative synergies, industrialisation and business development. It is an exceptional chance to negotiate face to face at the highest level with the representatives who make the real decisions.

COOPERATION AND INNOVATION LABIt will be an unrivalled platform to transform revolutionary projects into business oppor-

tunities. Scientist and entrepreneurs will meet investors and suppliers in what can be a future-setting alliance for the industry. That is a win-win for developing ideas and positioning companies.

APPLICATION FORUMThis is the place to turn challenges and solutions into effective synergies. Pioneering business with new proposals for products and processes searching for experienced companies that can meet their innovative needs in manufacturing, distributions and logistics. This is the opportunity for entrepreneurs and leading suppliers to become strategic or developing partners.

PROJECT FORUMDevelopers of highly defined projects and leading companies looking for new chances to expand their markets will meet face-to-face. A previously scheduled working agenda based on the needs of every participant to access the best offers without wasting time prospecting suppliers. Connecting with the best options is guaranteed.