NEWS OF THE WEEK
CANADA TARGETS TOXIC CHEMICALS REGULATION: Industry views program as challenging but manageable
T
HE CANADIAN GOVERNMENT has launched a $300 million initiative to more tightly regulate and reduce the use of chemicals that are harmful to human health and the environment. "The chemicals management plan we are unveiling will make Canada a world leader in assessing and regulating chemicals that are used in thousands of industrial and consumer products," Prime Minister Stephen Harper said at a Dec. 8 news conference in Ottawa. Since 1994, all new chemicals manufactured or imported into Canada have been subject to a risk assessment by government scientists. However, some 23,000 older chemicals in commerce have not undergone the assessment required of new substances. Officials said a recently completed categorization of these "legacy" chemicals identified 4,300 substances that require risk analysis based on their suspected toxicity. A list of 200 high-priority chemicals, including
DUPONT NURTURES SEED BUSINESS RESTRUCTURING: Company tilts away from agricultural chemicals, will cut 1,500 jobs
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UPONT SAYS it will increase investment in plant genetics, biotechnology, and other highvalue agricultural fields by some $100 million per year. To fund the increase, the company will consolidate production assets and refocus marketing in the low-growth parts of its nutrition and crop protection businesses. The changes include the closing or streamlining of manufacturing at about 10 locations and the reduction of its agriculture business workforce by about 1,500 worldwide. DuPont expects annual cost savings of $100 million, all of which will go to the new initiative. The firm will take a pretax charge of about $200 million in the fourth quarter to account for the restructuring. "These actions will accelerate the momentum that is building in our seed business," says J. Erik Fyrwald, group vice president of DuPont's agriculture and nutrition business. "Our seed products are performing verywell around the globe." Thus, he explains, DuPont expects significantly improved financial performance
benzene, sulfuric acid, phenol, and acetic acid, will be reviewed over the next three years. Industry will be required to provide information about how it is managing the 200 substances. Government scientists will review the data, and federal officials will then decide what, if any, actions are needed. "In some cases, we may demand substitute products or formulations," said Environment Minister Rona Ambrose. "Moving forward, we will improve product-labeling programs, as well as deal with imported products that use chemical substances that are prohibited in Canada," added Minister of Health Tony Clement. The chemical industry and environmental activists applaud the government's plan. "We're generally supportive of what's being done. Overall, it's an effort to try to improve public confidence in old chemicals," said Gordon Lloyd, vice president for technical affairs at the Canadian Chemical Producers Association, which represents 70 Canadian chemical manufacturers. Assessing the high-priority chemicals by 2010 "will be challenging, but doable," Lloyd said. "The government deserves credit for taking decisive action on this critical issue," added Rick Smith, executive director of Environmental Defense Canada. "Many of the toxic chemicals subject to this announcement are potent carcinogens and are extremely harmful to the development of children."-GLENN HESS
for the business in 2007. DuPont says it has identified a number of growth opportunities for its agricultural businesses, including increased sales and marketing for seeds; investment in safer crop protection products such as its "ultra-lowtoxicity" Rynaxypyr insecticide; and continued investment in Brazil, Eastern Europe and Russia, India, and China. Indeed, the company said last week it has formed a joint venture with one of China's largest seed producers, Gansu Dunhuang Seed, to provide "top-performing corn hybrids to Chinese farmers in the spring market." The general movement in the crop protection industry is toward "greener" chemistries, notes Roger Shamel, president of Consulting Resources, in Lexington, Mass. "I would applaud that move, plus the company's moving toward the growth areas of the globe with plans to invest in places like China, India, and Latin America," he says. "It is too bad that 1,500 j obs are going by the wayside." DuPont also predicts that its overall 2006 earnings will be about $3.25 per share. This estimate is up from an earlier forecast of $2.86 per share, due mainly to onetime items in the fourth quarter.-WILLI AM STORCK
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DECEMBER 18, 2006
Ambrose
DuPont plants the seeds of its future.
