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Issue 94 Online October 2021 Bulletin INFORMED COMMENT FROM THE BRITISH ADHESIVES SEALANTS ASSOCIATION INSIDE THIS ISSUE The UK s Chemical Industries reunite at CHEMUK 2021 NEC Birmingham Lorna Williams BASA Executive Officer and General Secretary As one of the first post lockdown national trade show events scheduled at NEC Birmingham CHEMUK 2021 the UK s Chemical Industries Supply Chain Expo opened its doors on Wednesday 15th Thursday 16th Sept prompting delight and enthusiasm from across the sector CHEMUK 2021 Expo followed on its hugely successful inaugural event held in Harrogate in 2019 and represents the UK s only dedicated national supply chain expo for the chemicals industries BASA was present at stand L41 and it was great to see a selection of BASA Members attending over the two days A packed free to attend 2 day speaker programme presented 2021 attendees with some 150 expert speakers across the four integrated show floor stages including feature session panels discussing the big trends challenges opportunities innovations affecting the UK s chemical industries BASA gave three presentations over the two days Ian Stone MD of event organisers UK Industry Events commented In the wake of unprecedented challenges and disruptions thrown up to all industries with the outbreak of the global Covid 19 pandemic the CHEMUK team were so delighted to see attendee groups from across all segments of the Chemical Industries as well as representation from across all regions it was so satisfying to bring the industry back together again Showcasing some 350 exhibiting companies representing literally hundreds of product technology and service brands supporting the broad Chemicals Chemical formulated products and Chemical using industries the busy 10 000 sqm expo floor welcomed some 2 400 visitors and a further 1 000 from across exhibiting teams over the 2 days creating a combined 3 500 attendance dates for Diary CHEMUK 2022 11 12 May 2022 NEC Birmingham Continued on page 2 Bri sh Adhesives Sealants Associa on BASA_updates Secretariat update 02 The UK s Chemical Industries reunite continued 04 Updated Plas c Packaging Tax guidance 06 Can Patents Blunt the 2023 Corpora on Tax Spike 07 UK Cost of Carbon NET ZERO CARBON WHAT ON EARTH DOES IT MEAN 08 BASA Focus on UKREACH for Mixtures 11 Beyond ECHA Addi onal Compliance Requirements 12 FEICA European Adhesive Sealant Conference and EXPO 2022 13 BASA Virtual Open Industry Forum to be held on 4th November 2021 16 300 Surge in Silicon Price 17 Roger Mar n Fagg Economic 18 Update We would like to welcome BASA s newest member BIM United Kingdom Ltd View BIM s pro le here www basa uk com BASAupdates

Email secretary basa co uk I would like to take you back to March 2018 to the times when we could meet and to BASA s AGM and Industry Lunch at Twickenham where many BASA Member Company s enjoyed a great day out some got heckled by Matt Dawson for leaving early and many of you enjoyed a wonderful tour of the stadium before a sumptuous lunch sponsored by BASA Members Rakem Stuart Carlyon from DHL gave a fascinating presentation on managing disruption to the supply and I hope that perhaps some of you had taken on board Stuart s advice and had plans in place to cope with the raw materials crisis we have been reporting on in the last Bulletin and the first edition of the BASA Digest published for the ChemUK Exhibition Although Stuart focussed on KFC s lack of chicken after DHL was awarded the complete supply contract for all the franchises perhaps you may also remember his comment that at any one time there is only 24 hours of petrol and diesel being stored in the UK fuel stations Fast forward to September 2021 and retailers were emptying their tanks as fast as they could for the switchover to E10 fuel It is not clear why they felt the need to do this as the legislation that the Government put in place to introduce E10 allowed fuel retailers to still use existing stocks until 1 November as part of a gradual change so there was no apparent need to empty storage tanks A sudden surge in panic buying triggered by a very unhelpful leak to the media quickly drained the BASA BULLETIN Issue 94 remaining stocks Far more serious than the toilet roll and pasta panic buying at the start of the Coronavirus pandemic there were long queues at petrol stations as many people who actually did not need to fill their cars jerry cans or plastic drinking bottles with fuel but all decided that they ought to just in case leaving those workers who really needed to be able to get their normal fill up unable to get to work The reality is that what we have seen was not in fact caused by a shortage of HGV drivers at all but rather was an unfortunate consequence of the E10 switchover coupled with irresponsible leaking of information The lack of drivers means that the supply chains have not been able to recover as quickly as they need to By September 16 a week before panic buying began average stock levels had fallen from 40 per cent to 34 By 23rd the day of the notorious leaked BP warning that supplies were running low due to a lack of HGV drivers stock levels were already at 32 The data available suggests that sales and deliveries were steady until the sales surged amid panic buying The doubling of demand daily fuel sales of 15000L per station to 35000L on 24th meant that because most retailers needed to replenish their stocks at the same time this placed enormous stress on supply chains which broke For years supply chains have focused on reducing inventory levels and cutting costs by embracing lean just in time management in their logistics plans These efforts negatively impacted the resilience and agility of the supply chain In a recent article by Forbes they say that Almost two thirds of shippers 68 believe supply chains have become too global and must be balanced towards more regional and local domestic ecosystems I found it slightly disconcerting that at the recent joint BASA BCF UKREACH workshop for downstream users the representative from DEFRA asked Why would a manufacturer want to purchase from more than one supplier We were trying to explain the costs of registration if downstream users had all the registration obligations It was clear that government departments do not in the main understand the chemical supply chain complexities that you all have to deal with I hope you enjoy reading the various features in this issue We are still producing the BASA Bulletin as an online version so all the previous issues are available on the publications section of the website To conclude I really hope that we are seeing a sustained return to normality and that I can welcome you all back to BASA s Industry Lunch next March and we can hold the 2022 AGM in person and finally see each other again www basa uk com

The UK s Chemical Industries reunite at CHEMUK 2021 NEC Birmingham continued from page 1 On Wednesday BASA had two presentation slots and Jenny Barnett SHEQ Manager F Ball and Co Ltd gave an excellent case study on recycling Jenny looked at how manufacturers can be responsible for what they produce once products leave their site It considered aspects such as extended producer responsibility a demand for zero avoidable waste on construction sites and a life cycle approach for manufacturers of adhesives and sealants www cirs reach com I gave a presentation prepared with the assistance of BASA s Technical Officer Jim Palmer and Sustainability Consultant Tony Bingham on the performance demands for sustainability energy efficiency and the circular economy I talked about the broad topic of sustainability and the effect on the performance demands for adhesives and sealants considering the intended function of the adhesives and sealants including long term durability concerns I talked about how it might be possible to match this up with circular economy demands for debonding dismantleability and re use of materials On Thursday I gave a second presentation this time on the challenging topic of the demands of regulation on a downstream adhesive or sealant user I looked at the key chemical and product regulations that effect the manufacturers and users of adhesives and sealants and discussed how the regulations are developing and the cost to industry I reviewed the EU and UK GB regulatory landscape to understand the effects of any changes and to try to clarify the extra burden any divergence from existing regulations places on manufacturers On this year s attendance Ian Stone comments With strong pre registration levels and a great buzz across industry social channels the industry s eagerness to engage again in a dynamic physical trade show environment was palpable and borne out as soon as the doors opened on Day 1 Summing up Ian Stone commented Nothing beats the live trade show experience for networking and connections vital intelligence ideas inspiration and just soaking up your sector s current position You can also see what is happening immediately over the horizon as well as longer term in a dynamic spontaneous and visually engaging way empowering and informing those crucial next steps Can t wait to welcome the industry back in 2022 www basa uk com CIRS CHINA Address Hangzhou China 310000 Tel 86 571 87206574 Email service cirs reach com CIRS IRELAND Address Dublin Ireland D02 HW77 Tel 353 1 477 3710 Email service cirs reach com CIRS USA Address Arlington USA VA 22203 Tel 1 703 520 1420 Email service cirs reach com CIRS Korea Address Seoul Republic of Korea Tel 82 2 6347 8816 Email service cirs reach com CIRS UK Address London UK E2 6GG Tel 44 20 3239 9430 Email service cirs reach com BASA BULLETIN Issue 94 3

launch Crestaform 3D printing resins Scott Bader Co Ltd is excited to launch Crestaform a new range of high performance 3D printing resins available to both individual consumers and businesses This is Scott Bader s first ever product range for 3D printing and therefore it has created much excitement and anticipation 3D printing is a rapidly growing market that Scott Bader identified as an area for new product development using their vast experience and expertise in resin manufacture dating back over 70 years That expertise led to the development of Crestaform high performing 3D printing resins that exhibit superior mechanical performance and excellent reactivity Scott Bader s Crestaform 3D printing resins can be used in most stereolithography 3D printers and are cured by laser or light The level and quality of detail that can be achieved is staggering when using Crestaform resins to produce a 3D print The opportunities truly are endless Crestaform 3D printing resins are supplied in recyclable bottles that are available to individual consumers via Amazon Scott Bader will share more information on how to easily clean the bottles for recycle Larger bulk orders are available directly from Scott Bader Jonathan Stowell Scott Bader s Commercial Director said Entering the 3D printing market is an exciting new venture for Scott Bader We have used our in depth experience in resin development to create market leading 3D printing resins that are easy to use and effortlessly produce highly detailed prints SCOTT BADER TO INVEST 16 MILLION IN A NEW PRODUCTION SITE IN NORTH CAROLINA Mocksville North Carolina U S A 11th October 2021 Global chemical company Scott Bader has acquired a new facility in North Carolina as it strives to meet growing domestic and global demand for its market leading structural adhesives and gelcoats Commenting on the latest expansion plans Art Murphy Sales Director for Scott Bader North America said This latest investment makes clear our commitment to the North American market as well as to our global growth strategy He continues It comes as we also invest 2million in Canada We now have the additional capacity we need to be more responsive to customer needs and leverage the interest in our The investment sees the acquisition of a 110 000 primer less structural adhesives amplifying the success we ve already square foot industrial unit on a 15 acre site in had with the portfolio Mocksville North Carolina which with further investment will be developed into a state ofthe art Scott Bader s international presence now totals seven gelcoat and structural adhesives manufacturing manufacturing sites 17 offices and two joint ventures worldwide facility This will be the company s second North with future expansion plans firmly focused on establishing its American manufacturing site the new development innovative composite and adhesive products in North America and is expected to create 27 new jobs locally with 21 in Asia manufacturing and the other roles shared across HR In keeping with Scott R D commercial support and applications Bader s 2036 vision to The new premises was specifically selected to tap into steer towards sustainable the State s growing advanced manufacturing sector growth while increasing The facility will be built with modern design principles its global footprint and operate to GMP conditions manufacturing a environmental impact has range of innovative Scott Bader products The plant been a key consideration throughout the North aims to be fully operational by Q1 2023 Carolina development Commenting on Scott Bader s investment in the area and will remain central to Terry Bralley President of the Davie County Economic the investments in its new Development Commission said We re delighted a site Investing in people company with the pedigree of Scott Bader has chosen and technology to ensure our county to invest in and expand their offering both the build and nationally and overseas The new infrastructure will be a ongoing operations are as great addition to the area and the creation of 27 efficient as possible immediate new jobs is a real economic boost He continues I hope Scott Bader and our region mutually For further information visit scottbader com benefit from one another for many years to come BASA BULLETIN Issue 94 www basa uk com

In short DH Industries are a one stop shop for all your industrial mixing and filling processing needs With 60 years of technical know how at your disposal you can be assured your project will be designed managed and delivered professionally efficiently and to a specification that meets your individual requirements Since 1961 the name DH Industries has been synonymous with the manufacture and supply of specialist machinery to the paint chemical and sealant industries From the outset DH have always worked closely with customers to design machines which will best meet their individual requirements The company ethos is to provide the perfect solution for all customers From a purpose built factory in Essex DH are also able to provide process trials with clients in their well equipped test laboratory DH provide a wide range of process equipment solutions from laboratory and pilot equipment up to full scale production machines The mixers and equipment DH supply are predominantly for processing heavy difficult and viscous materials These include mixers such as Planetary Butterfly dispersers and Universal triple shaft mixers All these can be supplied under vacuum and to ATEX and DSEAR Dangerous Substances and Explosive Atmospheres Regulations DH also manufacture Jenag strainers for industrial products which are designed to give a combined straining and pumping system in one compact and mobile unit They provide a totally enclosed self cleaning system for the removal of oversized particles from a wide range of liquid products They can also re circulate suspensions to prevent settling of particulates in pipework during stoppages DH Industries supply powerful hydraulic extruder presses or pumping systems to move your product to the next part of the production line To complete the process a range of world class cartridge and container filling equipment is available in both semi and fully automatic options The unique and highly effective continuous self cleaning system with environmentally friendly reusable mesh ranging down to 20 microns instead of costly disposable media assures an uninterrupted throughput and consistent quality The range of strainers can provide throughputs from 0 6 000 litres per hour and can be connected direct to filling machines or vessels for further processing DH Industries Limited SS15 6TD UK Contact Mark Sullivan Phone 01268 410 666 Mobile 07951 709 393 Email dh dhi co uk Website processing dhi co uk www basa uk com BASA BULLETIN Issue 94 5

Updated Plastic Packaging Tax guidance published information on the tax The Further information for businesses part of the guidance has recently been updated to provide 24 Sept 2021 further detail on To tackle the pressing global issue of plastic pollution the government is committed to introducing a world The types of plastic packaging subject to the tax including leading tax on plastic packaging from April 2022 The single use products such as carrier bags sandwich bags and Plastic Packaging Tax will create a clear economic disposable cups incentive for businesses to use recycled plastic material Who is liable for the tax and when it is charged by clarifying in the production of plastic packaging in turn what is considered last substantial modification stimulating increased levels of recycling and collection of plastic waste and diverting it away from landfill or HMRC has also produced two decision tree documents to provide a step by step guide to help business determine if incineration plastic packaging is in scope of the tax and who is required to The tax will be paid by manufacturers and importers of account and potentially pay the tax The decision trees are plastic packaging including plastic packaging filled on attached to this email importation that contains less than 30 recycled plastic Queries and will be set at a rate of 200 per tonne More detailed guidance and support to businesses will be To ensure the tax does not disproportionately impact provided in the coming months Any queries on the tax should small businesses those that manufacture or import less be directed to HMRC using the contact details in the than 10 tonnes of plastic packaging each year will not guidance need to register or pay the tax All businesses above this threshold must register including businesses who Guidance Documents already include more than 30 recycled plastic in their Liability to register guide Scope decision tree guide packaging To support businesses HMRC published Get your business ready for the Plastic Packaging Tax guidance on GOV UK which provides an overview and further www wac2022 org BASA BULLETIN Issue 94 www basa uk com

In March 2021 Rishi Sunak confirmed HMRC s intention to increase corporation tax from 19 to 25 This presents a significant challenge to many industries adjusting to a post Brexit economy during the midst of the coronavirus pandemic The sealants and adhesives sector knows these difficulties all too well with bureaucratic quagmires such as the ongoing REACH problems exacerbating the more widespread foes of supply chain disruption and raw material cost fluctuation Nevertheless help may be at hand in the unlikely form of patents As many readers might recall HMRC launched its Patent Box scheme in 2013 which slashes corporation tax from 19 to 10 on profits from patented technology1 What might come as a surprise is that the lower rate of 10 applies even when the main rate jumps to 25 A single qualifying intellectual property right for example a UK patent can be used to reduce corporation tax on all worldwide profits relating to sales of a qualifying item This presents an extraordinary saving and could see enormous future tax relief given that well over 1Bn of relief is already claimed annually at the current level of corporation tax Figure 1 This will be especially valuable to the chemical industry which has been one of the major beneficiaries under the patent box scheme Figure 2 falling under category C C Manufacturing G Wholesale and Retail Trade M Professional Scientific and Technical Activities N Administrative and Support Service Activities J Information and Communication F Construction A Agriculture Forestry and Fishing S Other Service Activities H Transportation and Storage K Financial and Insurance Activities E Water Supply 0 100 200 300 400 500 600 700 800 Figure 2 Patent box uptake based on industry sector It is important to keep in mind that skilfully prepared patents can be granted for incremental advances in technology rather than being restricted to moments of paradigm shift Moreover a patent covering a substances or additive can under the correct circumstances be used to reap tax relief on more complex products incorporating the substance or additive For example there have been examples of patents to a wing mirror being used to claim tax relief on the sales of a car This logic can also be applied to the adhesives and sealants sector and could magnify tax relief considerably With the sticky problem of a looming corporation tax hike now might be the time to view patents as a revenue stream instead of a necessary cost centre For more information on this and other patent topics please contact Dr Greg Stepney is a specialist chemical patent attorney and Partner at European patent firm Withers Rogers LLP gstepney withersrogers com 2019 20 partial 2018 19 Dr Philippa Roberts is a specialist chemical patent attorney and Associate at European patent firm Withers Rogers LLP PRoberts withersrogers com 2017 18 2016 17 2015 16 2014 15 2013 14 0 300 600 900 1 200 1 subject to further qualifying criteria see www gov uk government statistics patent box reliefs statistics Figure 1 Total relief claimed year on year Attend BASA s Open Forum on 4th November to hear directly from Greg and have an opportunity to ask questions www basa uk com BASA BULLETIN Issue 94

Lorna Williams BASA Executive Officer combatting net emissions and is the name used for any method which aims to reduce emissions or increase the capture of greenhouse gases by adding a cost to those creating emissions and in so doing encouraging the take up of alternatives and or making the polluter pay for the damage In an explanatory article authored by Jane Thornback Sustainability Policy Advisor at CPA found here Jane explains that at its simplest Net Zero mathematically means that input and output are matched there is no net gain so Net Zero Carbon means that total carbon emissions are equal to or less than the emissions There are two main methods of carbon pricing a direct removed from the atmosphere tax on emissions generated by a business or a system of allowances or permits to pollute tradeable on a The UK through the Climate Change Act has a Net secondary market referred to as an emissions trading Zero Target by 2050 compared to 1990 levels it also scheme ETS or cap and trade system Before the end has several intermediate milestones such as 68 of the Brexit transition period the UK was part of the EU s reduction by 2030 and 78 reduction by 2035 ETS In the summer of 2020 as the UK prepared to leave Scotland has a target of Net Zero by 2045 Wales of 80 the EU s ETS the UK consulted on whether to set up its by 2050 In addition it should be remembered that own ETS or to impose a carbon emissions tax CET In individual businesses that supply BASA Members may December 2020 the UK government announced that it also have their own targets in terms of when they want would be proceeding with a UK ETS from 1 January to achieve net zero as an organisation 2021 The UK Government is seeking to get companies both large and small to sign up to the Race to Zero Commitment and to promote UK plc green innovations and drive export markets The scheme was established with 5 fewer allowances in circulation than the UK had under the EU scheme and allowances was subject to a transitional auction reserve price of 22 The idea behind these measures was to make allowances and therefore emissions more The SME Climate Hub is a pioneering global initiative expensive than they were for UK emitters under the EU that aims to create a tipping point for mainstreaming ETS signalling the UK s intent to lead from the front climate action and building business resilience The SME Climate Hub is an initiative of the International Reuters reported on May 19th 2021 that Britain s Chamber of Commerce the Exponential Roadmap Emissions Trading System ETS kicked off as the UK Initiative the We Mean Business coalition and the strives to eliminate net emissions by 2050 with carbon United Nations Race to Zero campaign prices reaching over 50 per tonne and making the cost of polluting in Britain higher than in the EU The ETS is a If you decide to make a commitment the SME Climate method of charging power plants and other industrial Hub will get in touch with tools to help you entities for each tonne of carbon dioxide they emit understand your emissions how to tackle them and Britain launched its own market to replace the European how to share what you re doing with your customers Union s ETS after it left the bloc Read more here and community In the following months they will keep you up to date with ideas support and incentives Currently the UK deals with the problem of carbon to help you meet your commitment This commitment leakage by giving free credits to certain businesses is for small businesses in the UK Small businesses from which compete with businesses in countries not subject outside the UK can also make the commitment on to carbon pricing However in terms of reducing the main page of the SME Climate Hub Bigger emissions this defeats the object of having a carbon businesses in the UK and from around the world can price in the first place as the emissions escape pricing also do their part at Race to Zero altogether Your suppliers may also be tracking their carbon cost using tools like the Ember Daily Carbon Prices Carbon pricing is designed to reduce greenhouse gas emissions by adding a cost to the creation of emissions Carbon pricing is primarily a policy tool for BASA BULLETIN Issue 94 Daily Carbon Prices If Members are interested the daily Carbon prices under both the EU and UK Trading System can be tracked and downloaded here https ember climate org data carbon price viewer www basa uk com

In 2016 world cement production generated around 2 2 billion tonnes of CO2 equivalent to 8 of the global total More than half of that came from the calcination process Data source ICE Intercontinental Exchange Together with thermal combustion 90 of the sector s emissions could be attributed to the production of clinker One EUA or UKA gives the holder the right to emit one tonne of carbon dioxide or the equivalent amount of two more powerful greenhouse gases nitrous oxide N2O and perfluorocarbons PFCs The challenges and opportunities of decarbonisation are likely to be different for each company For energy Intensive industries such as cement steel and ceramics the priority is how to replace fossil fuel in the manufacturing process for other sectors such as flooring it may be how to reduce the amount of waste that goes to landfill BASA members will have elements of all the aspects as their raw material sources may come from the cement industry they may have their own energy and production challenges or they may have a large packaging footprint to deal with About two thirds of those total emissions result from calcination the chemical reaction that occurs when raw materials such as limestone are exposed to high temperatures as shown in the McKinsey Company figure below Why does cement production emit so much CO2 The large scale of manufacturer and use of concrete makes it a top contributor to global greenhouse gas emissions the industry was responsible for 7 of A brief look at Cement Clinker the big polluter worldwide CO2 emissions in 2018 according to a Many BASA Members are involved in cementitious Scientific American article products so in this feature we will take a quick As I have already indicated the majority of concrete s snapshot of the issues carbon footprint comes from the production of clinker As reported by Reuters on October 12th global and this production results in chemical and thermal cement and concrete makers laid out steps to cut combustion processes called calcination creating 50 of carbon dioxide emissions 25 by 2030 and to reach the processes greenhouse gas emissions Because this zero net emissions by mid century relying on more CO2 comes from a chemical reaction it can t be carbon free energy new chemistry and eliminated by switching to more energy efficient fuels manufacturing technology and carbon capture Today there are a few options for low carbon cement Cement accounts for about 7 of global carbon mixes that either eliminate or decrease the amount of emissions and the Global Cement and Concrete clinker in cement mixes Substitutes such as fly ash and Association GCCA accounts for 80 of concrete blast furnace slag are used instead made outside of China and some companies within High fuel requirements are another big contributor to China cement production s big carbon footprint Heating the A BBC article in 2018 looked at the issue of Concrete kilns to high temps required to make cement is responsible for another 40 of emissions created as a massive CO2 emitter How much CO2 is produced per ton of cement The CO2 emission from the concrete production is directly proportional to the cement content used in the concrete mix 900 kg of CO2 are emitted for the fabrication of every ton of cement accounting for 88 of the emissions associated with the average concrete mix www basa uk com BASA BULLETIN Issue 94 9

The McKinsey abatement cost curve below estimates the costs of several large scale investments to reduce one ton of CO2 based on assumed future costs CO2 prices and abatement volumes A negative abatement cost such as for clinker substitutes implies a benefit to the producer rather than a reduction in cost the schemes become stricter and a border tax is introduced carbon capture technology will become necessary for cement manufacturers to reduce emissions BASA will be looking at the UK s Net Zero objectives at out Open Industry Forum on 4th November and are pleased to welcome speakers from BEIS xtonnes We will be looking at what resources we can have available for Members in future to help them in their journey to net zero How many of your colleagues from you company have access to the BASA website We actively encourage as many eyes from each Member Company to have website access as possible There is so much information being generated in terms of regulation business information trends and guidance that it is beneficial not to just have one contact A member company can have unlimited subscribers under the one annual subscription fee so it really makes sense and will enable the maximum membership benefit The process is simple all you need to do is go to the website www basa uk com and click on the orange Members link at the top right of the screen Abatement costs indicate ranges as the exact price of goods depend on regional and future availability For example as the steel and energy sectors step up their decarbonization efforts the availability of clinker substitutes such as pulverized fuel ash fly ash and granulated slag will decrease The same holds true for biomass which is likely to experience rising demand from other industries With the abatement costs of certain levers higher than CO2 prices cement manufacturers are faced with a dilemma there is pressure from the public and financial investors to abate quickly even though there is no economic rationale to do so Not only do the economics seem far from stellar but the required investment needs to be directed toward cost reduction measures for cement producers to maintain their value share in the broader construction industry In a last comment in January 2020 Redburn the equity research house stated that decarbonisation will drive a dramatic rise in cement prices from the middle of the decade as the costs to produce cement will rise by some 61 when the industry invests in technology to capture and store carbon The emissions trading schemes will initially benefit cement manufacturers although with the UK ETS running higher than the EU ETS the UK will benefit less than the EU initially as the UK scheme beds in but as BASA BULLETIN Issue 94 At the next screen click on the drop down arrow to select your company Then fill in your details choosing a password according to the rules And click on the I m not a robot box and Apply There is no costs to adding subscribers and it is a great way to keep up to date so please feel free to encourage your colleagues to subscribe today www basa uk com

Hopefully you have read my recent article in the new BASA Digest a publication that combines some of the usual BASA Bulletin stories with a Member Directory Section at the back This was issued in print at the recent ChemUK exhibition but if you missed it then it is always available digitally on the BASA publications page here www basa uk com Home SiteContent 4 590 We also held a successful joint workshop on UKREACH for Downstream Users with the British Coatings Federation on 7th September and it is clear than many BASA and BCF members are struggling to understand the intricacies of UKREACH duties for GB downstream users many of whom will become importers and will need to register or the first time I am sure I am not the only one who is finding it difficult to see any value in the exercise for existing EU REACH registered substances This special feature is having a look at some of the key questions we are asked and hopefully giving you some useful answers Don t forget if you want to have a chat with other members please join us for the informal BASA Members drop in Clinic every Friday at 10 00 This is a great Friday networking opportunity and we all learn something each week The last session we were even treated to Sam s interesting Friday Facts and learned about Stephenson s Rocket and have decided we want this as a regular weekly feature so we are interested to see Sam from Hodgson Adhesives future facts Three important points to remember UKREACH duties only fall to GB legal entities and they are the only ones who can meet any obligations UKREACH is for all the substances in any mixtures you purchase use ie all substances in mixtures must be UKREACH registered if imported over 1T per annum In the same way as EU REACH operates it is one substance one registration BUT only suppliers who hold a UKREACH registration will comply with the UKREACH obligations Grandfathering or DUINs will defer the full UKREACH registration obligations for 2 4 or 6 years All GB manufacturers will need to be a part of any substance group that submits a joint registration to share the data costs but all must pay the appropriate registration fee If there is no GB manufacturer then either a GB importer or a GB Only Representative OR would need to be part of the substance group to share the joint data costs again each entity will pay the appropriate registration fee and it is only the data costs that are shared www basa uk com YOUR Q A Q CAN MY EU SUPPLIER REGISTER THE MIXTURES HE SUPPLIES ME A No Only substances can be registered AND the obligation for UK REACH registration is for a GB legal entity ONLY either a GB Manufacturer or a GB Importer or a GB OR appointed by the EU supplier Q CAN MY EU SUPPLIER APPOINT A SINGLE GB ONLY REPRESENTATIVE FOR MULTIPLE EU MANUFACTURER LEGAL ENTITIES A Yes In this situation there are three options that would allow their GB customers to comply with the UK REACH duties 1 EU manufacturer supplies as much formulation information on the substances in the mixtures he supplies as possible and the GB customer submits a DUIN Every GB customer would also need to do this This only defers the registration obligations for 2 4 6 years depending on the volume each GB customer imports at some point the full registration will need to be submitted by each customer 2 If the EU supplier has a GB legal entity they can act as the importer and submit one DUIN for the substances in all the mixtures imported by all the EU legal entities 3 The EU supplier appoints a GB OR who acts for all of the EU legal entities but they would need to submit a DUIN to represent each of the EU legal entities covered ie if there were 4 EU legal entities then 4 DUINS would be needed The DUINS would all be submitted by the one GB OR This is managed by the GB OR setting up his own parent Comply with REACH IT account and then once they have signed into the service they set up 4 child accounts one for each of the 4 EU legal entities represented as per my example We are waiting for HSE to confirm exactly what role the GB importer must take to be classed as the importer Depending on their answer it may be that the GB legal entity of the EU supplier must be appointed as the GB OR under option 3 instead Q IF MY EU SUPPLIER SAYS THAT THE SUBSTANCES OR SUBSTANCES IN THE MIXTURES HE SUPPLIES ME ARE ALL UKREACH COMPLIANT SHOULD I STILL SUBMIT A DUIN A Yes We would strongly recommend that Downstream users submit a DUIN to cover all of the substances and substances in mixtures supplied by an EU supplier This is because submitting the DUIN will allow all your future suppliers of this substance to be covered under your DUIN Doing this gives you a choice to use additional non GB suppliers of this substance under your own DUIN and avoiding the need for an immediate registration Q SHOULD I STILL SUBMIT A DUIN IF I DON T KNOW THE SUBSTANCES IN MY MIXTURE A Yes The advice is to submit on the basis of you best guess regarding the substances I your mixture This is particularly true for polymers where you are unlikely to be able to get information on the monomers from the SDS Use your best guess and please feel free to contact BASA for advice Doing this will give you an opportunity to update the DUIN at a later date if you are able to get additional information and still benefit from the deferred dates for full registration Provide as much information as you can even if you cannot support by analysis BASA BULLETIN Issue 94 11

Beyond ECHA Additional Compliance Requirements Six countries have not yet joined their internal IT systems to ECHA Any information submitted via the ECHA portal will not be available within the country in an emergency so anyone calling the poison centres in these countries won t get any information or advice With thanks to NCEC for providing this information In order to be compliant with Annex VIII the notifications must be submitted via the national processes rather than via ECHA This has been requested by the member state and is mandatory for Annex VIII compliance In other poison centre news the portal will be updated in October and should give companies the ability to edit dossiers Up until now dossiers are similar to pdf files and are locked The portal update will allow users to unzip the files and gain access to datasets Country For Annex VIII countries that have not connected to the ECHA system and so for compliance we must no fy directly to the country Belgium Bulgaria Iceland Lichtenstein Luxembourg Slovakia Na onal process must be used Na onal process must be used Na onal process must be used Na onal process must be used Na onal process must be used Na onal process must be used The countries below are accepting notifications via the ECHA portal however they have additional requirements to be fully compliant with Annex VIII Country Austria Croa a Hungary Northern Ireland Ireland Italy Latvia Spain For Annex VIII to be compliant the below is mandatory in addi on to the ECHA no ca on Informa on must be sent directly to member state Informa on must be sent directly to member state and a fee must be paid Member state requires payment of a fee Informa on must be sent directly to member state Informa on must be sent directly to member state and a fee must be paid Member state requires payment of a fee Informa on must be sent directly to member state Informa on must be sent directly to member state The countries below have mandatory national reporting requirements These involve a one off notification and regular tonnage reporting We are aware that the authorities are carrying out compliance checks on the below Country Denmark Finland Norway Sweden Latvia Other legisla ve requirement in addi on to Annex VIII ECHA no ca on Tonnage declara ons Execu ve Order No 1794 of 18 December 2015 No ca on to Denmark Product Registry plus tonnage declara ons every 2 years Finnish Chemicals Act 08 09 2013 599 No ca on to Finland Chemical Product Register plus tonnage declara on every year Norwegian Regula ons on Labelling of Chemicals to the Product Register deklareringsforskri en No ca on for Norway Declara on Regula on plus tonnage declara on every year KIFS 2005 7 Classi ca on and Labelling Regula ons No ca on to Swedish Products Register plus tonnage declara on every year Cabinet of Ministers of the Republic of Latvia No 795 plus tonnage declara on every year BASA BULLETIN Issue 94 The Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009 amended The Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009 has been amended by the Radiation Emergency and Consultation Regulations 2021 The Radiation Emergency and Consultation Regulations 2021 come into force on the 1st of November 2021 and amend both the Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009 and The Radiation Emergency Preparedness and Public Information Regulations 2019 The regulations have been requirement due to the fact that Public Health England PHE has been abolished The UK Health Security Agency UKHSA is taking on the relevant functions of the PHE The Radiation Emergency and Consultation Regulations 2021 replaces references to Public Health England PHE with references to the UK Health Security Agency UKHSA Read The Radiation Emergency and Consultation Regulations 2021 here www legislation gov uk uksi 2021 1110 regulation 1 made www basa uk com

2022 Hamburg Germany SAVE THE DATE FEICA European Adhesive Sealant Conference and EXPO 2022 14 16 September 2022 Grand Elys e Hamburg www basa uk com BASA BULLETIN Issue 94 13

Stain free sealing for natural stone flooring with illbruck FA880 Formulated to complement the natural beauty of stone illbruck FA880 helps the trade achieve great looking joints without any compromise on design This neutral curing silicone comes with the reassurance of an illbruck guarantee that it will not cause migratory staining to natural stone FA880 is also available in an extensive range of colours to achieve a perfect match for projects while a contemporary matt finish brings a stylish finish underfoot To maintain its attractive surface FA880 also includes a fungicide to prevent mould growth making it the perfect partner for sanitary and swimming pool surround applications Alistair Inglis Sales Director for Construction Products Group CPG UK s Sealing Bonding Insulation division which includes the illbruck brand said FA880 is a high performance silicone sealant developed specifically for the jointing of natural stone as well as other surfaces It has been formulated for the long term elastic sealing of movement joints between natural stone such as granite slate terrazzo porphyry limestone travertine sandstone quartzite and marble as well as for joints with other construction materials including concrete ceramics metals glass PVC and primed wood FA880 offers good resistance to UV light ageing and weathering and its rapid curing formulation means that it skins within 10 20 minutes We are also the only manufacturer with guaranteed no staining to have achieved a 50 classification under the BS 8449 Movement Accommodation Factor Offering sealing and bonding products for floors windows fa ades interiors and exteriors illbruck is one of CPG s portfolio of leading construction product brands which also includes the renowned flooring brand Flowcrete as well as Tremco Vandex Nudura and Dryvit and Nullifire BASA BULLETIN Issue 94 These high performance building materials including roofing and waterproofing solutions as well as sealing bonding insulation fire protection systems and modern methods of construction together provide a single source for specifiers and contractors As well as exceptional products CPG customers also have access to enhanced resources including technical support from industry experts new product development opportunities and access to pioneering technologies Full training including CPDs application training both practical and theory and on site support such as surveys complete the service package More details at www illbruck com en_GB product fa880 premium na tural stone silicone matt www basa uk com

ISO TC 59 SC8 Sealants Meetings Virtual Events 28th 29th September Two long days of Zoom meetings had most of the participants keen to have a face to face set of meetings in 2021 We all miss the coffee breaks and social events around the meetings We hope to meet in the US in 2022 all being well after a 2 year break I chair two WG s WG24 which updated ISO 9046 new version now published so is now disbanded and WG5 which is looking at higher movement Please join the Sealants WG to find out more and a flavour of virtual meetings was shared by the Chinese secretariat of ISO TC 59 SC8 where the Chinese delegation were all in the meeting room whilst the rest of us managed the time zones Written by Lorna Williams Chair of BSI mirror Committee B 547 and UK expert head of delegation of 1 currently www basa uk com BASA BULLETIN Issue 94 15

BASA Virtual Open Industry Forum via Microsoft Teams Join us at 09 30 on November 4th 2021 for a Producer Responsibility as a sector we are going to packed OIF programme dealing with the current need to look at what we can do together to reduce the hot topics impact of our packaging waste and Tony McGurk Chairman Founder Cryptocycle has some interesting After the usual welcome from BASA s Technical officer ideas for ways of dealing with packaging from different Jim Palmer Alistair Gardner Department for suppliers brand owners to mitigate against the costs international Trade DIT will start the day off with a look at trade and import export trends post Brexit Our second speaker Julie Mayhew Senior Policy Advisory from DEFRA will then take us through a review of the grandfathering process completed and give us the first view of the DUIN process which ended on 27th October This is an opportunity to ask your questions so please think about what concerns you most and what additional help you need In our 6th presentation we have Stephen Cummins from BEIS who is going to start our discussion about industrial decarbonisation This is a topic that many of you will definitely be feeling if you are using cement in your adhesives After Stephens presentation you have all earned your second cup of coffee but part 2 of the decarbonisation discussion after the break and something that you will all be interested in In the last session Vanessa Macdougall and Charlie Zhu In the third session before your virtual coffee break we will be joining from xtonnes the next generation have Michael Kearney and Krish Govinden from the software to help manufacturing businesses take control Office for Product Safety and Standards OPSS talking to of their carbon emissions us about how OPSS and trading standards will approach market surveillance in regards to UKCA marking of Manufacturers are facing increasing pressure from construction products Save those questions about regulation investors and customers to decarbonise the actual UKCA marking of adhesives and sealants however current solutions normally consultancy are incredibly expensive for the last session though The xtonnes mission is to make carbon management intuitive and affordable Their software has been built with designers and manufacturers to take you through the crucial steps of carbon management and create a You can then all have a well earned quick coffee break Net Zero reduction strategy But make sure you are back in time to hear Kristel Ons from FEICA give us a European post Brexit view Followed by our first speaker on the environmental aspects of the sector who will be talking about Championing Circularity Continuing from the last OIF where we started talking to you all about Extended BASA BULLETIN Issue 94 www basa uk com

In their session they ll give an overview of the steps businesses need to take options available to do so and provide a demo of the xtonnes software in action For anyone who can t make it but would like more information head to www xtonnes com or email vanessa m xtonnes com xtonnes will also be at Digital Manufacturing Week on Innovation Alley so anyone attending should stop by and say hello The second presentation in this last session is by me Unfortunately DLUHC formally MHCLG were unable to field a speaker for the event so with an extension to the intended date to cease recognition of CE marking in GB to 1st January 2023 I will pass on the latest information from DLUHC about both the intended future legalisation changes to cease the recognition of CE marking and other thorny issues like historical test reports Finally something a bit lighter to end on we have Dr Greg Stepney Partner European and UK Patent Attorney Withers Rogers who would like to start the discussion about monetising patents With all the groundbreaking development work needed to find innovative solutions to the current environmental challenges then wouldn t it be nice if your work also had added value in its own right 300 surge in Silicon price sends yet another blow to the adhesives sealants market If you are trying to purchase silicone polymers you may have been told that the polymer is not available or will take a while to arrive or that the price has rocketed So what s causing the silicone shortage Last year during the height of the COVID 19 pandemic several major monomer suppliers halted their operations In China a joint venture was closed for an extended period and in the US a facility that produced fumed silica went off line Today there are too few North America facilities that make silicone and globally demand for silicone is higher than it was in 2020 when many advanced economies were consumed with the pandemic Consequently producers in Asia need to fill both higher regional demand and increased Northern American and European orders Meanwhile a shortage in silicon metal triggered by a production cut in China due to massive restrictions on electricity usage is the latest in a series of supply chain disruptions that creates a damaging mix for adhesives and sealant manufacturers and customers Silicon metal is made by heating common sand and coke in a furnace For most of this century the price of it has ranged between about 8 000 and 17 000 yuan 1 200 2 600 a ton Then producers in Yunnan province were ordered to cut production by 90 below August levels from September through December amid electricity curbs Prices have since shot up as high as 67 300 yuan Jim Palmer will have a final word with us all and you will have a last opportunity to ask any questions and then that s another year of Open Forum s over We will have held three virtual OIFs in 2021 so it would be useful if you can let us know if you feel that this is something you would like to see continuing in the post Covid world Please drop me an email with your thoughts if you were not able to join the OIF on 4th November and we are aiming to run a survey for booked attendees after the event to gather feedback Written by Lorna Williams Executive Officer and General Secretary BASA www basa uk com Prices are expected to remain elevated around current levels through next summer until more production comes online in the second half of the year said Yang Xiaoting senior analyst at Shanghai Metals Market Demand is growing from sectors like solar power and electronic equipment BASA BULLETIN Issue 94 17

My regular readers will remember that I was adamant we should expect significant labour supply issues once lockdowns ended And this is where we are today The blame game is in full swing with Brexit the often quoted culprit but its more complicated than this My objective is to think through the likely pattern of events we should expect over the next 18 months But as always we must begin with recent history The Money Tree Before covid hit the World Western Governments had finally realised that the mediocre or nonexistent productivity growth of major economies since 2008 was partly due to austerity measures In particular the collapse in public sector investment The private sector needs an efficient and effective base on which to operate Its needs power water sewage disposal telecoms space port facilities a supply of labour with the necessary basic skills and an effective diplomatic core to facilitate global trade and influence Many countries such as the USA Germany India and the UK have significantly underinvested in their domestic infrastructure Those countries which did invest have performed better eg Singapore China UAE and Sweden The UK announced in 2019 100Bn capital spend each year for 5 years This to be financed by issuing gilts which are purchased by local and international pension funds If higher growth results the arithmetic is straightforward nominal GDP rises faster than the cost of borrowing and there is a net gain Investment spending boosts nominal GDP It is Modern Monetary Theory in action If for whatever reason the pension funds are reluctant to buy the gilts at an acceptable yield the Bank of England steps in and buys increases across the board My view is that we have excess demand due to the 19 trillion of new money created by central banks There is no way supply can rise fast enough to match this so inflation is not a blip but will remain in the system until purchasing power is eroded and demand slows to match rising supply This will certainly take another two years In the UK the Government has begun to shift back to raising tax to fund social spending National Insurance will rise from next April This tax redistributes income form the healthy to the sick and elderly It does not change the amount of money in the system But if private companies notice their sales are falling below budget and they then take steps to reduce their outgoings we have the beginnings of a recession This is why some people are forecasting a sharp slowdown or even a recession They are unduly pessimistic The excess money in our system is 300Bn the NIC increase will take out 13Bn a year from employers and employees It will however remain in the system unless social spending is reduced by the same amount ie 13Bn AND the Bank of England sells 13Bn of its bond holding to the market AND then writes 13Bn out of its balance sheet Thus destroying some of the 400Bn it created beginning April 2020 There are no signs it will do this In summary tax increases used to increase Government spending do not reduce the total amount of money in the system they redistribute it This year the Government will pay out 103 6 Bn to pensioners Before covid to borrow for capital spending is considered sound but to borrow to finance social spending such as pensions was considered to be irresponsible Then covid hit and for 18 months the view changed Spend whatever it takes to find a vaccine prevent death and maintain productive capacity in lock downs The result is a massive increase in the global money supply and a much smaller increase in the volume of goods and services As markets work to balance supply and demand the inevitable consequence is price BASA BULLETIN Issue 94 Demographics We now know the UK Government believe that allowing EU workers into the UK since 2005 has depressed wages to the extent that nearly 3 million people in work are also claiming universal credit Although unstated they are hoping that www basa uk com

wages will rise sufficiently to remove the remaining 3 million from the benefits register They also believe that a persistent labour shortage will drive innovation when the wage bill becomes prohibitive The chart also shows us why the demand for family homes has been strong but will fall away from 2028 And the demand for I bedroom flats from 2025 will weaken A look at the type job in high demand raises some question marks We are some way off from self driving trucks and vans although Ocado the online grocer is expecting to have driverless electric delivery vans in 2 years time There are robot hoovers and lawn movers but most gardening jobs from my experience will still require humans In warehousing there is significant innovation and fully automated warehouses are nearly with us In Manufacturing there is a lot of scope and many manufacturers are innovating The construction industry is fairly traditional and our housing stock is old There is plenty of automation in prefabricated building but repointing a 1880 chimney I suspect will always require a human It s clear that wages will rise faster than normal in the private sector The Government limit rises in the public sector and will quite rightly be excoriated for this There will be an exodus from public to private sector by the more talented Apparently if its a hard Winter the roads will not be gritted because there has been exodus of HGV drivers to the private sector Wage growth in excess of productivity will lock in inflation Productivity gains will prove elusive particularly in social care and activities where person to person interaction cannot be substituted It s worth noting that by 2028 there In hospitality there are opportunities particularly for self will be a million more 85 year olds service If wages rise sufficiently then a meal out with human table service may well become a luxury The Money Supply Please take a look at the chart below When there is no QE by the Bank of England the black line and red line move almost in tandem because the black BUT LOOK AT THE CHART line is commercial bank lending which creates new money out of thin air which then appears in the red line The red line can only be above the black line if either foreigners decide to buy sterling and hold in a London account possibly because they are laundering and or the Bank of England is creating money We are 1 2 million short of 15 19 year olds and 600 000 short of 20 24 year olds This partly explains 100K starting salaries for newly qualified solicitors with the big six firms in London Those who state the labour shortage little to do with Brexit are deluded Professor Portes estimates 1 3 million EU workers have left the country since Brexit As many of them were in their early twenties its clear why business is short of suitable workers Typically UK money supply grows by 100Bn a year Changes in the rate of interest are designed to control its rate of growth In the last 18 months it has grown by 400Bn the 300Bn excess growth has come from the Bank of England operating QE There is 300Bn sloshing around our system it can only leave our system if its spent overseas commercial banks call in loans or the bank of England s unwinds its bond holding If the latter then the long run rate of interest will rise from the current 1 to closer to 3 And the mortgage rate would soon follow There will significant wage inflation as companies poach from each other The 3 million in work but claiming UC will earn more Will the remaining 3 million enter the work force This is doubtful Of this 3 million 1 7 million are presumed to be actively looking for work Arithmetically this matches the demographic shortfall but in practice it will be a question of skills attitude and location So a good match is unlikely This There is enough money in our system to finance a is why we define full employment exits when 5 are 5 inflation rate Indeed currently earnings are growing close to 5 but productivity by 1 unemployed www basa uk com BASA BULLETIN Issue 94 19

Last year output per worker fell 10 but wages didn t We have an inflationary gap This gap could be filled by big increases in output unlikely or price inflation which is what the UK and the rest of the World are experiencing In short inflation is the process by which excess money is absorbed There is also the fact that from 2008 there has been more uncertainty than previously Banks were calling in loans and reluctant to lend then the Brexit debacle and now covid All three have clearly damaged confidence and the willingness to invest in productive capacity but not property despite record low interest rates Paying people wages for no output is inherently inflationary Furlough has been hugely successful in maintaining capacity but there has been no increase in capacity The productivity issue The UK has a record of poor productivity when compared to our neighbours Total productivity is the same as France but output per hour of work is about 15 less There are many arguments as to why this should be so The favoured one is that much higher minimum wages drive higher levels of automation in France My opinion is the difference is primarily cultural And the rise of home working will improve our performance In the UK on arrival in the workplace there is an expectation that one chats about the football the rugby the appalling traffic etc usually with the first coffee of the day This loses 15 mins and then in an office environment people leave their terminal regularly for a chat with others I have not witnessed the same behaviour in France or Germany And at 5 pm in both countries offices are empty not so in the UK as people stay later to catch up on the work they should have done instead of chatting However we must look at other issues There is a long tail of small businesses which are best described as lifestyle businesses where labour resource could be more effectively deployed but by choice is not Over the next few years it is likely many of these will fail releasing much needed resources for others to employ BASA BULLETIN Issue 94 The next 18 months I reckon central banks will tolerate above target inflation for the next 18 months and therefore although interest rates will rise they will be kept below the level required Central banks will cease creating new money but not reduce the amount of QE So an inflationary growth period is the likely outcome Stagflation slumpflation or a recession is are all unlikely The 80 20 rule will apply to households The bottom 20 will suffer their real income will fall Due to the loss of 20 pounds a week for this on UC And their food bill will rising by 10 their energy by 30 The remaining 80 will enjoy wage awards not public sector at least in line with inflation and cover their energy and food bills from excess savings there is 170Bn sitting in households accounts They will keep spending The bottom 20 of earners spend 20 of their income on food and energy For the rest the steadily drops Half UK earners pay 10 of their income on food and energy Government will boast falling deficits as tax receipts rise strongly The real growth rate of the major economies will revert to trend when they reach pre covid levels of output in the next 6 months There will shortages of certain products and this will be exacerbated by media driven buying frenzies There is the issue of the oil price It s currently at 80 Under normal circumstances I would begin to worry that this would soften growth If it stays around 80 then we need not worry about growth Why The prices will be passed on and some of the excess money will be absorbed Consumers will pay more but not buy less If we see more than 100 and stays there then all bets are off Looking ahead to 2022 I expect the following for the UK www basa uk com

assuming no lock downs Nominal GDP ie spending up 8 inflation 5 real growth 3 Wage growth 6 Interest rate 1 0 but long run rate 1 8 Exchange rate 1 18 euro 1 37 dollar Oil price 85 The Rest of the World It s clear to me that most of the price pressure in the World is due to excess demand The USA illustrates this best The chart shows the actual spend on consumer durables Pre covid the spend was 1 5Trn After the Biden stimulus it rose to a peak of 2 150Trn I very much doubt if any durables manufacturer predicted this surge and therefore of course there is insufficient supply Latest GDP data indicates the USA growing at 12 3 Trend growth since 1950 is 3 Global growth If the forecasts shown in the chart are accurate or even close we should expect shortages throughout 2022 And with it will be a higher than forecast global inflation rate I repeat individual market prices are mopping up the excess money supply present in the global system There is 19 trillion Perhaps a better illustration is the current price of US equities 30 high than pre covid Private equity has 2 5 trillion looking for deals They are currently paying 45 above the market for companies they wish to buy The number of UK buyouts is 60 above the same period in 2019 The loads of money of the late 1980 s is back with a vengeance Its worth noting that in 1989 the UK inflation was just under 10 The 4Trn of new money is flooding through the the USA and driving up global prices It is estimated that 50 of US Conclusion money supply flows abroad via imports of goods and UK demography shows us why there are labour supply problems These will persist Global supply issues are services and exports of capital primarily due to the post lockdown recovery being much stronger than the mainstream forecasters The EU expected but if you are regular reader we fully The EU has recovered more expected it The current levels of inflation are not a quickly than I or anyone blip although Government and central banks wish to else expected Real GDP will believe it is They will be too slow to reduce the exceed pre covid level by quantity of money they have created Commercial the end of this year This bank money creation is not excessive the problem is chart shows the change in with central banks Perversely increases in base rate will visitor numbers shops You increase the cost of working capital for business but it will see the UK is the lowest will not reduce the rate of commercial bank lending This is because we use on line shopping for 30 of Scare stories of slumpflation or recession are wide of our purchases In the EU its the mark and best ignored We will experience 15 inflationary growth But the press will be full of business failure horror stories Remember that business failures China I use energy consumption data to assess China s growth Its always increase with economic recovery primarily due GDP Q2 grew by 9 on this basis But Q3 and Q4 will be to over trading And the banks know they will get their significantly less because of electricity rationing And money back so they play hard ball There are many of you who kept your staff on increased training in the shortages of a wide range of products will persist slack periods innovated and believed in the upside You should be beginning to reap the benefits now Finally we now know what the Governments strategy is it s to encourage productivity growth through wage inflation borrow 100Bn a year for infrastructure ensure house prices continue to grow and berate business for not adapting quickly enough So if it all goes wrong it will be the fault of UK business Written by Roger Martin Fagg Rmfagg aol com www basa uk com BASA BULLETIN Issue 94 21

Synthomer Announce Acquisition of Eastman Chemical Company Adhesive Resins Business Synthomer plc today announces it has agreed to acquire the Adhesive Resins business Adhesive Technologies of Eastman Chemical Company Eastman which develops manufactures and sells tackifying resins and additives for adhesive products with a strong focus on attractive end markets such as hygiene packaging and high performance tyre additives Read more https www synthomer com index php id 932 Scott Bader Italia established Scott Bader is pleased to announce the formation of Scott Bader Italia Scott Bader Italia has been established to ensure they serve their growing base of Italian customers operating in various markets including marine land transportation and building construction The Scott Bader Italia office will continue to work closely with their strategically positioned Italian distributors for the distribution of their innovative composite adhesive and functional polymer product ranges Antonio Giamp Sales Manager for Scott Bader Italia joined Scott Bader in early 2021 He is an Aerospace Engineer with 15 year s experience in the composites market He said I am delighted that Scott Bader Italia has been established and I look forward to working with our key customers and distributors in the region I will put all my knowledge expertise and passion to turn Scott Bader Italia into a successes Members of FEICA Trade Association Forum Alliance of Chemical Associations Society of Adhesion Adhesives BSI UK Food Paper Packaging Chain The Construction Products Association BASA BULLETIN Issue 94 www basa uk com