September / October 2016

BULKDISTRIBUTOR

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chemicals capabilities : many of our investments in the last 18 months and our planned investments leading in to 2020 and beyond will be supporting our strategy of being a real solution provider – by which I mean addressing whatever challenge our customers are faced with , be it cost structure , stocking , storing , getting the correct blend , or getting the technical support from our team when required . We are aiming to further increase our capacity to service customers in food , feed , pharma and cosmetics sectors . For instance we are currently working on the new life sciences hub warehousing facilities at a number of locations across the UK and Ireland . A new food application laboratory is being built at Brenntag Widnes food hub site , featuring formulation , product and stability testing and covering both flavour and ingredient development , once again with a view to offering added value rather than just being a product supplier . We are making significant investments in our warehousing and associated infrastructure to ensure compliance with even the most exacting of requirements , whether they be related to third party accreditations or commercial demands . We have used technology from the food processing and pharmaceutical sectors to adapt our warehouses , creating high quality , clean space within our existing network . A new GMP filling facility at Brenntag Scunthorpe currently under development will give us further access to the expanding pharma and cosmetics sector . It complements our existing GMP-accredited laboratory and dedicated filling systems for pharmaceutical customers in Germany and the cosmetics formulation and development laboratory in France . In the life sciences division , we continue to look at compliance and GMP guidelines , among other factors , when selecting logistic partners . In fact we apply a host of stringent performance criteria such as safety , security , financial stability , knowledge of the industry , range of equipment , geographic coverage , flexibility , innovation potential – all of which are part of the assessment of our potential providers . We find that close collaboration up and down the supply chain indeed drives the best practice for a dynamic approach to address changing market needs .

RW : Our business thrives on change . The market always throws up surprises – whether that is an event of Force Majeure or an unexpected change in legislation . We pride ourselves on agility across all areas of our business to cope with these changes and continue to provide world class customer service across all areas . For instance , the regulatory environment is complex and can be daunting to many of our customer and suppliers . The implementation of the Biocidal Products Regulation is a good example where Brenntag has been able to provide information to the market – both as a manufacturer and distributor of biocidal products – and then provide feedback up the supply chain . This ensures producers are connected to their end markets and understand all the uses of their products . One other key trend is towards third party accreditations , a vital if complex and costly undertaking for a firm supplying so many different industries . As well as focusing on

the physical infrastructure , we recognise the importance of ensuring that our procedures are robust in the first instance and rigorously tested and audited . We have always been very proactive in terms of formal validation of safety and quality principles . Internally we have developed a comprehensive Supplier Approval System ( SAPRO ) requiring mandatory food certification , audit reports , production details and product testing for food additives and ingredients supplied via the Brenntag network in Europe . In addition to such a high level of internal scrutiny , we recognise the requirements and the benefits of third party verification relating to our infrastructure and services . For instance , by the end of 2016 we intend to complete the British Retail Consortium ( BRC ) certification and FEMAS accreditation across 100 % of Brenntag UK and Ireland distribution and blending sites . Externally , FEMAS accreditations haven been achieved for all Brenntag UK and Ireland sites during the last 18 months , followed by certification to the British Retail Consortium ( BRC ) Global Standard for Storage & Distribution , which covers the storage , distribution and wholesaling of ambient , packaged , food grade ingredients , additives and processing aids . It is our intent to have all of the Brenntag UK and Ireland sites BRC-certified by the end of 2016 , In addition , all of the sites have been assessed for ESAD II .

BD : Brenntag is targeting growth across Europe by extending the life science , material science and water treatment businesses . How is this being achieved ?

RA : Life science is a strong growth industry . We are dedicating significant investments to technical and R & D support to our business partners , building on our already strong speciality expertise . For instance , in the cosmetics and food and nutrition sectors we have launched and are working on several new products . As a channel partner , many customers rely on Brenntag to develop ideas , which we do successfully by combining our knowledge

and science with the most current trends in the marketplace . We have impressive capabilities available in the UK and Ireland , and our customers can further benefit from Brenntag ’ s global network . For instance , the Good Manufacturing Practice ( GMP ) accredited laboratory and dedicated filling systems for pharmaceutical customers in Germany , or European Cosmetics Formulation and Development laboratory based in France , which is especially dedicated to the development of innovative formulations . Brenntag ’ s global structure brings additional advantages to our customers and suppliers alike . Such laboratory application facilities create a real opportunity for collaboration between Brenntag and end users to formulate new products and innovate in terms of existing ones for the benefit of all parties and chemical industry overall . With this in mind we are working on various projects , such as a food application laboratory in Widnes , material science laboratory in Lutterworth , water treatment application laboratory in Bradford ; all of which epitomise our focused approach to the market and how we add value to the supply chain whilst working with all stakeholders . The unique combination of technical , sales , commercial , logistics , added value service and , most importantly , people

focused excellence will drive us light years ahead of the competition . Another factor is gravitas and the credibility of our supplier and customer facing teams : our dedicated sector focus has definitely been achieved allowing greater customer and supplier intimacy , ultimately leading to business growth .

RW : The water treatment industry is one of the key areas for our operations where we add value to our business partners . Chlor-alkali and industial chemicals remain a significant and important part of the business in the UK and Ireland . In some cases , they give Brenntag an entry into certain areas , like effluent treatment . Brenntag has recently concluded a pan- European deal with BASF for flocculant polymers , enabling its specialists to work with BASF ’ s technologists and be seen as a total service provider . In the UK and Ireland we have invested in expanding our technical and commercial capabilities in the water treatment sector with the addition of further specialists in Polyelectrolyte Flocculant and Disinfection areas . This has delivered strong growth and also allowed us to have a much more intimate relationship with many of our customers . It has also allowed our customers to benefit from a more efficient delivery process with more products arriving on their sites on the same vehicle at the same time . Brenntag Blending Services ( BBS ) is a good example , in my view , of an important source of added value . We are expanding our BBS offering further : we ’ ve already started a major investment and redevelopment in our Bradford BBS facility ( this site focuses on high value , low volume , technically complex lots ), where we are investing in the upgrading of blending facilities and more particularly the application lab , which includes increasing the level of technical and sales resource available to the BBS business . Ranging from simple powder into water dilutions , to more complex multi-component blends , which include reaction chemistry under IPPC license . Another area of particular interest is the manufacture of silicone emulsions for various industries , including the water treatment sector . A new large-scale industrial blending facility is planned to be built at Lutterworth , to serve the Material Science sector . This capability will include very significant raw material and finished products storage as well as extensive equipment dedicated to solutionising and multi-component blends .