Cheminova A/S P.O.

Box 9 DK-7620 Lemvig

Tel. +45 9690 9690 Fax +45 9690 9691

info@cheminova.com www.cheminova.com

Growth throuGh innovation and sustainable development

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CHEMINOVA CONTENTS

Challenge, responsibility and strategy

3 The food challenge and food security 6 The strategy is development and growth 7 Focus on corporate social responsibility stimulates innovation

Product development
8 13 14 15 Innovative and dynamic product development New chemistry and chemical engineering art Microreactors ensure flow in the chemistry From classic phosphorus chemistry to asymmetric catalysis 16 Plant oils can improve Cheminovas products 17 Many investigations before new substances can be approved

Contents

Close to the market

18 R&D centre in India 20 Market knowledge gives new products

Human resources
22 Innovation calls for education at all levels 24 Improved competitiveness and job satisfaction 27 Profits fund research

Executive editor: Lars-Erik Kruse Pedersen, Vice President, Corporate Communication Contact: lars-erik.pedersen@cheminova.com

For Cheminova to fulfil its ambitious targets for the future, it is crucial that sustainable growth can be created through innovation and development. Innovation and development result in more and better products which can be sold to farmers worldwide, and in more efficient working processes throughout the company. Growth makes it possible to realise significant economies of scale, and thereby the prospect of improved earnings for the benefit of all stakeholders. At the same time, the new products mean that farmers will be able to increase crop quality and yields, so fewer people go to bed hungry. Sustainable development for society and the company are the goals for Cheminova.
Kurt Pedersen Kaalund president & Ceo

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CHEMINOVA Challenge,responsibilityandstrategy

we help improve quality of life for the worlds population by supplying products that help farmers increase yields and quality of crops to satisfy the global demand for food, feed, fiber and energy.
Cheminovas mission

The food challenge

and food security
1050 1000 950 900 1 9 6 9 -7 1 1 9 9 0 -9 2 2 0 0 0 -0 2 850 1 9 7 9 -8 1

1,050
2 0 0 9

1,000 950 900 850 800 750 1969-71 1990-92 2000-02 2008 1979-81 1995-97 2004-06 2009

The demand for food is growing rapidly, and experts are concerned that a new food crisis is around the corner.
2 0 0 8 2 0 0 4 -0 6

ver one billion people are starving and the problem is getting worse. 2008 saw an explosive development in food prices. The extremely high cereals prices were driven, in particular, by speculation and export restrictions, because cereals stocks were inadequate. The acute food price crisis is over, but the number of people who are starving is still rising. The basic challenge of an increasing population and the growth in demand from a growing middle class with high living standards as well as climate change persists. Agriculture therefore faces huge demands to increase production.
800 750

and the acute food crisis in 2008 has highlighted the sensitivity of the system and what can happen if just one years harvest goes wrong. When the cereals stocks fall below a certain level, it constitutes a threat that gives rise to panicky reactions and speculation. In future it will be necessary to produce record harvests just to meet demand. It is here that the food challenge lies.

1 9 9 5 -9 7

Hunger is on the increase. Today, more than one billion people are starving.
Source: The 10,00
9,00 8,00 7 ,00 more meat-based diet. This has already 6,00 increasing demand for animal led to an 5,00 feed, with maize and soybeans being the worlds most important crops, a 4,00 development which is expected to 3,00 continue in China and India, although 2,00 at a slower rate due to the financial crisis. 1,00 Meat consumption places an 0,00 extra burden on agricultural production, 1960 1970 1980 1990 2000 2010 2020 2030 which can be illustrated by the fact Befolkning (mia.) that it takes Opdyrket landbrugsjord (ha/person) two, four and seven kilogrammes of protein feed units to produce one kilogramme of poultry protein, one kilogramme of pork protein and one kilogramme of beef protein, respectively.

State of Food Insecurity in the World (FAO, WFP 2009)

0,6000

0,5000

0,4000

China needs feedstuffs

The Chinese economy has been characterised by growth, and even though the financial crisis has led to a slowdown, the economy is still growing. The general population growth has moderated due to the one-child policy, but the affluent middle class is growing. This population group in particular is benefiting from the rising living standards, which has resulted in a stronger demand for meat products. The eating habits of this population group are changing, shifting towards a

0,3000

0,2000

0,1000

Food crisis an eye-opener

The fact that cereals prices doubled in the space of a few months has shown the world what will happen if the agricultural production of basic foodstuffs is unable to keep up with demand. The structural problems are serious,

2040 2050

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CHEMINOVA Challenge,responsibilityandstrategy

The food challenge and food security

Streamlining is the only way forward

The demand for agricultural crops will continue to go up in step with population growth and rising living standards. Efficient agricultural production is a precondition for developments going in the right direction towards greater prosperity for a growing number of people and making famines a thing of the past. The challenge is that no more land can be farmed without natural areas of great value being lost. The area of farmland per capita is falling as a result of population growth, and, at the same time, the middle classes de-

mand for meat products is seeing an upward trend. Moreover, land is being reallocated from food production to cultivating biofuels, while climate change is destroying agricultural land due to drought and flooding. Consequently, far greater yields per hectare must be ensured in future. If this rationalisation project does not succeed, the insecurity and the high cereals prices which we saw in 2008 will only be a cautious prologue to a devastating food catastrophe exacerbating the fact that there are already more than a billion starving people in the world.

The ethical challenge

Poverty and hunger pose an ethical challenge with serious security-political perspectives. Crises involving dramatic price increases for agricultural products prompt debate on many issues such as biofuels, nature preservation, organics, GMOs, free trade policies etc., but there is no avoiding the fact that the uncertainty surrounding food supplies and threatening famine constitutes a security-political challenge which, in a globalised world, also has implications for Denmark. In connection with The World Summit

Cultivated land per capita falling

Population figures are increasing, while the area of cultivated land basically remains static. Consequently, the area of cultivated land per capita is continuing to fall. To feed the world population, it is necessary to ensure increasing yields per unit area.
10,00 9,00 8,00 7 ,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 0,2000 0,1000 0,3000 0,5000 0,4000 0,6000

Population (bn) Cultivated land (ha/capita)

1.050 1.000 950

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CHEMINOVA Challenge,responsibilityandstrategy

on Food Security in 2009, the DirectorGeneral of the FAO said: The silent food crisis, affecting one sixth of all humanity, poses a serious risk for world peace and security. We urgently need to forge a broad consensus on the total and rapid eradication of hunger in the world. Feeding the worlds population is a basic need having food to eat is a human right. Even though this is often overshadowed by other elements in the debate, the right to a livelihood with health and well-being, including food, is a human right which is specifically mentioned in the UNs Universal Declaration of Human Rights. It is Cheminovas mission to help improve quality of life for the worlds population by supplying products that help farmers increase yields and quality of crops to satisfy the global demand for food, feed, fiber and energy.

Sustainable crop protection

To avoid heavy losses due to weeds, plant diseases and infestation, crop protection is a necessary measure. Today, 30-50% of crop yields are saved thanks to the use of plant

together we must ensure that food is available and affordable - for all.
Ban Ki-moon, Secretary-General of the United Nations, from his opening speech at the UN Food Security Summit 2009

protection products. Apart from genetic engineering, today there are no sufficiently effective alternatives to chemical crop protection. Cheminova therefore expects like the sector in general a significant demand for the companys products for many years to come. The specific need for crop protection naturally varies considerably for the different crops and climate zones. And we expect that future needs will place greater demands on the composition of the product programme. In addition to the current phase-out of the most toxic products which can gradually be replaced by better and equally effective products, we are welcoming the growing interest in sustainable farming. Cheminova is therefore focusing on innovation, including the development of new, improved pesticides adapted to meet future needs and stricter environmental requirements.

The silent hunger crisis, affecting one sixth of all of humanity, poses a serious risk for world peace and security. We urgently need to forge a broad consensus on the total and rapid eradication of hunger in the world.

Jacque Diouf Fao director-General at the un Food security summit 2009

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CHEMINOVA Challenge,responsibilityandstrategy

the strategy is development and growth

The strategy for Cheminova is founded on three goals: a two-fold increase in the companys market share to 5% in 2015, earnings on a par with the best among peers, and greater value creation. These goals can only be achieved through development and growth.

heminova wants growth based on responsible development and rooted in the development work launched by the company. Growth must primarily be driven by the many new products which we have introduced in recent years, and which we will continue to introduce. This involves new active ingredients and ready-to-use products from our own development activities. We are focusing on products which, from the point of view of the environment and occupational health, meet tomorrows stricter requirements in these areas.

Five-in-Fifteen business plan

To focus our efforts, we have drawn up the Five-in-Fifteen business plan, which describes in detail how we will achieve a market share of 5% in 2015. There are three main points to the plan. Firstly, growth will be achieved through the development and sale of

new products. Each year, hundreds of millions of kroner are invested in this area, and we are progressing well with the many development projects which continually contribute to the establishment of a broader and better product programme. Secondly, we will acquire products and companies which match our product programme and strengthen our market position. Thirdly, we will exploit the economies of scale, primarily in sales and administration, thereby improving our efficiency. Moreover, we will use the production plants more effectively by always keeping our eyes open to potential streamlining measures. We must continue to draw on the employees experience with the production plants and working procedures throughout the company in order to implement the necessary improvements. Over the years, Cheminova has

the development and sale of new products is the cornerstone of Cheminovas growth strategy.
Allan Skov, Senior Vice President, Development & Registration

increased its market share, and this is happening to an increasing extent on the basis of new products. In fact, the companys traditional products now only account for about half of the revenue. In future, the new products will increasingly drive growth and value creation.

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CHEMINOVA Challenge,responsibilityandstrategy

Focus on corporate social responsibility stimulates innovation

Supplying an increasing number of products that contribute to increasing yields and the quality of agricultural crops is in itself a socially responsible activity.

sustainability for the farmer and for the company is a fundamental element in the phase-out plan for the most toxic products in the developing countries.

Cheminov a A/S P.O. Box 9 7620 Lemv ig

Tlf. 9690 Fax. 9690 9690 9691

info@chem www.chem inova.com inova.dk

A/S Cheminova P.O. Box 9 ig 7620 Lemv

9690 Tlf. 9690 9691 Fax. 9690

inova.co info@chem ova.dk www.chemin

Corpor Responsib ate Social ilit y Rapp or t l 20C9 rporate SociaRapport 2 0o sibility Respon

hemical crop protection is an area subject to extensive debate which, among other things, centres on environmental issues and food security. Like any other human activity involving the production of necessities, there are environmental, ethical and supply-related problems associated with such activities. This is why we focus on corporate social responsibility.

alternatives, and sustainable for our company, which can continue to supply its customers.

New values
Our focus on CSR has actually spawned completely new ideas, primarily involving the development of new products. However, at a more general level, rolling out the new mission, vision and the new values throughout the global organisation has led to focus on innovation and development. Here, discussions have pointed to many development-oriented initiatives at all levels in the organisation. A clearer understanding has emerged of the fact that innovation should not just be confined to the development labs, but should take place wherever employees operate. Procedures and working processes have been reviewed with fresh eyes. This is enabling us to reduce waste, avoid unnecessary energy consumption and guard against excessive bureaucracy. And innovation thereby becomes something in which all employees can play a role. Working with the value that we show corporate social responsibility, and that in the CSR reports we openly communicate about difficult topics and dilemmas, has resulted in a fruitful and broader dialogue with the outside world. In other words, working with CSR is paving the way for receiving more input from our surroundings.

Phase-out of most toxic products

For the past four years, Cheminova has published an annual report on Corporate Social Responsibility (CSR). In this, we describe our attitudes and how we handle such issues, as well as what we do to reduce risks associated with using our products. As the only company in the business, Cheminova has published a specific plan for phasing out the most toxic products. We have come a long way with phasing out these products in the poorest countries. This work closely follows the plan that has been drawn up, which in reality places considerable demands on development and innovation. When we take old products out of the market, it requires increased focus throughout the entire organisation. New products and new solutions need to be developed and marketed so the company can thrive and develop - in a way which is sustainable for the farmer, who has been provided with

Mission We help improve quality of life for the worlds population by supplying products that help farmers increase yields and quality of crops to satisfy the global demand for food, feed, fibre and energy. Vision We create results for our customers by being a sustainable and innovative world-class supplier of a broad range of quality crop protection products. Value creation shall match the best among peer companies to the benefit of all stakeholders. Values We achieve ambitious goals We are innovative We decide and act We recognise results We are good corporate citizens

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CHEMINOVA PRODUCTDEVELOPMENT

innovative and dynamic

product development

in recent years, the company has stepped up its development activities. a total of 220 of the groups 2,000 employees are engaged in innovative chemistry, process development, formulation development and registration. our many development projects call for close collaboration between a number of employees with wide-ranging competencies in our global organisation. the key to success lies in the expediency of priorities, project management and innovative commitment.
Allan Skov, Senior Vice President, Development & Registration

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CHEMINOVA PRODUCTDEVELOPMENT

Cheminovas pipeline of new products is undergoing constant development. More than 50 projects are currently dealing with new active ingredients, mixtures and further development of existing products.

lobal agriculture is changing. The agricultural sector has undergone significant changes in recent years. It is seeing ever-increasing demands for greater efficiency combined with stricter environmental requirements. Moreover, genetically modified crops are having a big impact on the need for crop protection products in many parts of the world. Insecticides and fungicides with renewed profiles regarding effectiveness and gentleness, are well on the way to replacing the old, toxic products. A number of new products with more specialised applications have arrived on the market. Genetically modified crops have revolutionised weed control, in particular in maize, soybeans, rape and cotton, where the broad-spectrum glyphosate has taken over the market from products directed at selected weed species. However, given the growing resistance to this broad-spectrum product, possibilities are again emerging for weed-specific products.

Dynamic product development

Selecting new products therefore demands a far more dynamic and innovative approach than previously. It is no longer sufficient to count on launching one big product every three years. More new products are required, including minor products which are only relevant for a particular crop or a particular geographical area. Cheminovas global structure with subsidiaries in its main markets, its own agronomists close to customers and a strong interdisciplinary project organisation

constitute the main nerve paths for the flow of ideas. Strong competencies within market analysis, agricultural know-how, development and analytical chemistry, engineering knowledge, approvals expertise, sourcing of raw materials, financial and project management are bound together in a creative network where ideas are turned into concrete projects for the purpose of developing new products. Needs and wishes are quickly communicated between the development centres in Denmark and India and the individual subsidiaries in the regions. Thus, for example, the need for a particular fungicide in Brazil is coordinated with the global strategy for the area, and the development project establishes production with the right capacity at, for example, our Indian subsidiary, based on the raw materials sourced in India and China. Insights into market conditions, agricultural practices as well as local needs and possibilities generate ideas for new products, while detailed economic and technical calculations ensure the viability of the projects, which often take several years from concept to marketing. A wealth of ideas and creativity combined with carefully workedout financing are prerequisites for success. Cheminovas pipeline of new active ingredients is undergoing constant development and at the moment it consists of more than 50 major and minor projects which are intended to bring new products to the market.

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CHEMINOVA PRODUCTDEVELOPMENT

Selecting new products

Cheminova does not invent completely new active ingredients from scratch, but markets existing products as the patents expire. Not just as copies, but very much in the form of newly developed crop protection products adapted to modern farming needs.
Henrik G. Schlosser, Manager, Identification & Project Development

new active ingredient is usually assessed for the first time shortly after its introduction, i.e. 10-15 years before its patents start to expire. At this point, it is decided when a more detailed assessment needs to be conducted. The next assessment usually takes place about five years before Cheminova can start marketing the substance at the earliest. At this point, assessments are made of how the products existing market will develop in the coming years the significance of competing products, new environmental requirements etc. Moreover, investigations are conducted

to establish how the substance can be produced, the extent to which brand new production methods are required, and which new sales products must be developed. In these areas, the development work often results in new breakthroughs which can be patented.

Decisive milestones
As the development projects take a long time, some of the assumptions may prove not to hold during the process. The project work therefore includes milestones where the assumptions are also assessed before any major investments are made. Assumptions for a project can change dramatically, which was experienced by Cheminova in the

1990s. In just three years, sales of the most important herbicide in the US and Argentina collapsed almost completely. Genetically modified soybeans made it possible to do without a number of products which would otherwise have been ideal new Cheminova products. On the other hand, sales of the same products increased dramatically in Brazil because of farmland expansions and a lack of permits to grow glyphosatetolerant GMO crops. Some of these products which Cheminova was developing in Brazil were successfully introduced, and it was also possible to avoid significant investments in registration data in the US.

Sugarcane
An important precondition for the subsidiaries growth is having a more complete product programme. Not just in the form of new products that provide access to new crops, but also for closing gaps in the product ranges for crops which the subsidiaries already target in their sales. Sugarcane is a good example of a crop which our subsidiary in Brazil identified as interesting, because sales for this crop fall outside the main season, and because the crop has seen significant growth due to increased demand for bioethanol. Sugarcane is by far the best crop for producing bioethanol, which is used as a fuel in Brazilian vehicles. The growth in sugar production also happened in parts of the country where Cheminova had already developed a good distribution network. After identifying sugarcane as a focus crop, the subsidiary started to identify the key products in this market. For some of these products it was possible to acquire sales rights, while others had to be developed from scratch. Here, Cheminovas global network played a role as some of the products can be used in other countries and with other crops and thereby form the basis for bigger and more profitable projects. Both herbicides and growthregulating products have been launched on the basis of this process. One of the growth-regulating products increases the sugar content in the crop, and also has a completely different application slowing the growth rate of grass on golf courses.

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CHEMINOVA PRODUCTDEVELOPMENT

In Brazil, sugarcane is primarily grown for the purpose of producing bioethanol, which is used as a fuel in cars.

A whole family of herbicides

Herbicides used in low doses represent an area of development with promising potential. The smallest bottle contains 227 grams which can be used to control weeds on approx. 32 hectares of cereals in the US.

At the end of the 1990s, the first patents expired for a group of herbicides called the sulphonyurea group, otherwise known as SU products or mini products. These are characterised by having very favourable environmental properties as well as being virtually non-toxic. Moreover, they can be used in exceptionally low doses, i.e. just a few grams per hectare is usually sufficient to control the weed. At the end of the 1990s, the SU family, which counts more than 20 members, represented global sales worth more than DKK 8 billion. This is definitely an economically interesting market, but as

these products are designed for very specific crops and weeds, their individual markets are very limited, and therefore there were only a few blockbuster products in this group. As producing the active ingredients also posed considerable challenges, it was hard to justify projects for the individual products. After looking closely at the chemistry, it became apparent that several of the products share the same intermediates, and that the same type of know-how is required to formulate, analyse, register and produce the SU products. By mastering this know-how, it is possible to create solid projects for a range of new products. The decision to pursue this course has meant that, as of now, Cheminova has developed the seven most important SU products, and more are in the pipeline. This means that in the coming years we will gain access to the most important parts of the market for SU herbicides in cereals, maize, soybeans as well as a wide range of fruit and vegetable crops. Today, this part of the market is worth about DKK 5 billion.

Selecting new products

CHEMINOVA

Intelligent herbicide

One good idea resulted in the launch of brand new product

It takes something special to get products which control grass to work in cereals, which are also a grass species. Many herbicides can damage cereals crops when combating grass weeds. This is also true of the product fenoxaprop. The problem can be overcome by mixing a so-called safener with the product. The safener is a substance which increases the crops ability to break down herbicides before they cause damage. The safener increases enzyme activity in the cereals species and means that the product can be used in both wheat and barley. Safeners give you an intelligent herbicide which can distinguish between friend and foe even though they belong to the same botanical family. Relatively few safeners exist, and some were only discovered after fenoxaprop was launched in 1982. The fenoxaprop-and-safener compound arrived on the market in 1988 and is patent-protected. In fact it has been issued with a patent two times, as the first safener was replaced by a new and improved product in 1996. This enabled the original producer to enjoy exclusive rights for a further ten years. Even though the patent on the active ingredient fenoxaprop expired long ago, other manufacturers

have not been able to access the market because a new safener is required. The old safener can no longer be environmentally approved, and the new safener is covered by patents until 2010. Consequently, it was necessary to innovate. Like many other discoveries in this field, our idea was actually pretty simple. What we discovered was that another safener, which was used by another company for a completely different product, could be used together with fenoxaprop. This combination was not being marketed, and the patent expired in 2005. Nobody else had spotted this opportunity, so we kept very quiet until the idea had been thoroughly tested. Extensive testing was conducted in the laboratory and as field trials on a number of cereal types under varied climatic conditions until we were certain that the new product had a reliable effect. Once all the approvals were obtained, the product was launched in several countries under the Foxtrot name, in Denmark in 2009.

Two failed projects led to the worlds best pyrethroid

Learning from your mistakes is also an important part of the innovative process. The market for insecticides in the pyrethroid group is dominated by two products which are relatively difficult to produce. We have unsuccessfully tried to develop improved production processes for both of them. Therefore it was not possible for Cheminova to launch its own versions of these two products. The two projects were based on widely different chemical approaches, one of them involving what could be called traditional chemistry. The second approach on the other hand was so-called chiral chemistry, which is used in the pharmaceutical industry to produce ultra-pure products consisting only of a single type of molecule. As part of a subsequent and particularly successful project, it was possible using this type of chemistry, which is used in the production of one of the pyrethroids, to produce the active molecule in pure form in the other pyrethroid. This resulted in a patentable new invention in the form of a process for manufacturing a product which has not been marketed previously in this pure form. Cheminova has therefore managed to access the pyrethroid market moreover with the worlds most active product, gamma-cyhalothrin. It is being marketed worldwide under the name of Nexide, and has been launched in Denmark in 2010.

Nexide is the worlds most effective pyrethroid, which has now also been introduced in Denmark.
Henrik Nrskov Pedersen, Portfolio Manager, Insecticides

Group Manager, R&D, Kim Lundkvist working on a laser-based analysis which is used to determine the crystallisation profile for a new fungicide.

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CHEMINOVA PRODUCTDEVELOPMENT

new chemistry and chemical engineering art

To survive in a rapidly changing world, it is necessary to be at the forefront of developments. Therefore, the latest technologies within both chemistry and process technology are part and parcel of working in the development labs for chemists, engineers and laboratory technicians.

eveloping chemical processes from concept to production today involves an interplay between two elements: chemistry and technology. It demands a sound knowledge of the two, as well as the ability to exploit this knowhow. In addition, you need to be able to make the most of innovation and research, and to come up with your own ideas and participate in the development of new knowledge and understanding. The objective of the development departments work is to establish a foundation for Cheminova being able to supply the right product quickly and efficiently under the given environmental conditions. This involves mastering the latest technology to exploit the latest scientific discoveries.

and one which Cheminovas development department has very actively invested and participated in, thereby contributing to making this new technology applicable over the past decade.

In addition, a number of other crystalline properties are determined in the laboratory.

Calculating the crystallisation profile

Once all this information has been determined and compiled, a crystallisation profile is drawn up for the product in question. This profile is then tested in a laboratory mock-up, where the crystal growth is determined together with the yield and quality. The crystallisation profile now contains all the primary chemical and physical information which is required to implement the process on a larger scale. However, tests and adjustments are required in order to fit the profile to the technical equipment which will be used in practice. Many factors need to be incorporated in the profile such as mixer type, choice of materials and container sizes before it is ready for use in a technical production plant. But once this has happened, the result is a robust process which always produces the desired result. Examples of where this has been implemented with considerable success at Cheminova include the production of substances as diverse as the insecticide gamma-cyhalothrin, the herbicide glyphosate and the fungicides flutriafol and fluazinam. Without access to the latest technologies for measuring the crystallisation rates and understanding the significance of this for the processes, it would not have been possible to develop these productions as efficiently and quickly as has been the case.

Technology and the crystallisation process

The technology is about very actively and based on a thorough knowledge of the chemistry controlling the chemical environment in which the crystals are formed and grow. In practice, this is achieved by continually controlling the temperature, speed and amount of dosed reagants, stirring etc. The crystals must be uniform and as big as possible. This minimises loss through filtration, and achieves the greatest possible yield. The uniformity of the finished product means that it can be handled during the process and by the end-user. In addition, we take advantage of the fact that the crystals in a product can differ, and we can segregate the unwanted ones. This has significant implications for the effectiveness, toxicity, mode of operation and speed of release of certain substances. All the conditions for the crystallisation process need to be determined in advance in the laboratory before commencing production. The speed at which a given substances crystals can grow is measured using focused laser reflection as well as by determining the amount of heat which is released. This calls for ultra-sensitive equipment. All the measurements are conducted under highly controlled conditions with regard to temperature, stirring etc.

Crystal power
In the past, Cheminovas raw materials, intermediates and finished products came in liquid form. The accompanying technology, for example the distillation and determination of a liquids properties, has over the years been increasingly refined. Now crystals i.e. solid substances have made their entry. In recent years, there has been something of a quantum leap towards solid products, and to some extent also solid intermediates. Handling these solids calls for new knowledge and technology. A big change here is using controlled crystallisation technology, in other words an in-depth knowledge and understanding of controlled industrial crystallisation. This is a relatively new branch within the field of chemistry and technological science,

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CHEMINOVA PRODUCTDEVELOPMENT

Despite their small size, microreactors can play a significant role in developing chemical processes for industrial use.

Microreactors ensure flow in the chemistry

Microreactors have become a permanent feature of R&D labs at chemical and pharmaceutical companies and also at many universities worldwide.
Casper Stoubk Andersen, synthesis development chemist
grochemical products are produced on a huge scale under precisely controlled process conditions and if possible under flow conditions. In other words, raw materials are fed into one end of a plant and intermediates are continuously taken out of the other without the product having to leave the plant between the different production steps. The opposite of continuous production is batch production, where a specific volume of finished product is produced at a time, after which the process starts again at the beginning. Before a chemical process is transferred from the laboratory to a production plant, hundreds of trials are conducted. In the laboratories it is a question of acquiring solid knowledge about the process before upgrading it from gramme-scale to tonne-scale. Here, microreactors can play an important role in acquiring optimum knowledge about a process.

conditions. Microreactor technology is based on the principle of carrying out a process by continuously mixing two or more liquid flows. Microreactor technology enables the rapid testing of many process factors with a view to finding the optimum conditions for a given reaction.

Producing large volumes

Even though a microreactor is small, relatively large volumes of a product can easily be produced using this continuous technique. In the laboratories at Cheminova, the production of a new herbicide is being studied in the microreactor. In this process, two substances react with each other while splitting off hydrogen chloride. In the microreactor, the relationship between the two reactants, the concentration of the reactants and the choice of solvent and hydrogen chloride-neutralising agent was studied in the course of a few days. As the optimum conditions had been found, the reaction turnover was more than 98% of what is theoretically possible, and the microreactor could produce several kilogrammes of the product per day. This was a process which could easily be scaled up to tonne-scale in the right production plant.

and any surplus heat can easily be removed. On the other hand, it is also possible to add a lot of heat to a given process and get reactions that require considerable activation energy to proceed quickly. In Cheminovas laboratories, this principle has been tested with great success. A compound was successfully produced by passing a mixture of two reactants through a catalyst while heating it to 265C. In so doing, the desired compound was formed continuously under conditions which would have been very difficult to handle in an ordinary batch process, i.e. in a test tube.

Super-reactive substances
In the past decade, the microreactor technology has contributed greatly to the development of process-friendly methods for manufacturing chemical compounds which could not have been controlled using ordinary laboratory equipment. For example, the formation and handling of super-reactive intermediates can be controlled with the microreactor technology. This is done by connecting two or more microreactors so that the first microreactor produces small volumes of the reactive intermediate, and this reacts immediately into a more stable structure in a new microreactor. Microreactors many applications will be utilised to an increasing extent in Cheminovas development projects.

Importance of microreactors
As the name suggests, a microreactor is a chemical reactor consisting of fine channels with a diameter of only a few micrometers, i.e. about that of a human hair. Microreactors have become a permanent feature of R&D labs at chemical and pharmaceutical companies and also at many universities all over the world. Microreactors function as a tool in much the same way as a classic reaction flask, except that the microreactor is designed to test continuous flow

Very successful use of technology

Microreactors also offer safety advantages as only small amounts of the substances are mixed at a time. They prevent potential runaways,

15 Mirror images identical, yet with completely different effects

Molecules are not always symmetrical. Some shapes are, like a left and a right hand, mirror images of themselves. In the case of medicines and crop protection products, it is often only one of the shapes that works. The challenge therefore is to produce precisely that particular shape.
Kre Sndergaard, synthesis development chemist
CHEMINOVA PRODUCTDEVELOPMENT

From classic phosphorus chemistry to asymmetric catalysis

t is well known that different phosphorous compounds are found in many of Cheminovas products.NDuring their development O and production, Cheminova has over the years built up a solid knowledge of phosphorus chemistry. This knowledge has served as a springboard to more modern phoshorus chemistry. Here, the phosphorous compounds function as a constituent in catalysts which can bring hydrogen into the right places on the molecules. With certain spatial properties1 of the phosphorous compounds, hydrogen can be supplied in a very selective way, which means that the resulting substances possess a high degree of optical purity. The foundation for these types of chemical reaction (asymmetric hydrogenation) was created by W.S. Knowles in the L -DOPA2 process, which earned him the Nobel Prize in Chemistry in 2001.

Iridium + fo sforf orbin dels e

For many years, Cheminova has built up solid knowledge about phosphorus chemistry, and has used this knowledge as a springboard to the more modern aspects of phosphorus chemistry.

Asymmetric catalyst in product development

In recent years, Cheminova has been developing several new products which

possess a high degree of optical purity. While working with a herbicide, it quickly became apparent that for the project to be profitable one of the steps H in the process needed to consist of H hydrogenation. For asymmetric catalytic this we needed to use a phosphorous catalyst. Together with an external collaboration partner, we have arrived at a process-friendly catalyst system which can deliver hydrogen very selectively and at high speed (see figure). By using an extremely small amount of the metal iridium (16 g) and the aforementioned phosphorous compound (37 g), 1,000 kg of basic substance can be turned into the hydrogen-saturated product. The process results in a high optical purity of the product and involves no use of organic solvents. This process is therefore basically free of waste products and can be regarded as a fine example of green chemistry. Cheminova already has other optically pure substances in its product programme such as gamma-cyhalothrin and acrinathrin, but in these cases the process is completely different. They

are produced using natures own, optically pure building blocks instead of the optical purity being introduced during the process. Cheminova thus has several different methods at its disposal for developing and producing optically pure products.

NOTES 1 Pure mirror isomers (chiral non-racemic compounds) 2 Optically pure amino acid, which is used as medicine against Parkinsons disease

Phosphorus has played a significant role in Cheminovas history

The development and production of phosphorous insecticides has formed the backbone of Cheminovas business activities since the 1960s. More and more products have been included in production, and finally constituted an entire tree with lots of big and small insecticides with accompanying intermediates. This tree still exists, but new applications have emerged for the element phosphorus. Cheminovas biggest product, the herbicide glyphosate, also contains phosphorus, but the chemistry is completely different to that which applies to the insecticides tree. The latest addition to the phosphorus trunk is top-modern catalysts which are not part of the products, but which help to control the chemical processes by directing the various constituents, for example hydrogen, into the correct place in the end product. Thus, instead of forming part of Cheminovas products, phosphorus can now work in adjuvants that drive the processes for completely new products.

Figure 1 Hydrogen is primarily supplied from above

Iridium + phosphorous compound

H N O H H N H O

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CHEMINOVA PRODUCTDEVELOPMENT

The mixability of the product with water is assessed

Plant oils can improve Cheminovas products

Crop protection products contain traditional organic solvents extracted from mineral oil. During formulation development, we have succeeded in replacing the petrol-like solvents in certain products with solvents based on plant oil from coconut or oil palms.
Morten Pedersen, Department Manager, Formulation Innovation

lant oils from coconut and oil palms have many uses, for example in cosmetics and as biodiesel. In a modified version, however, refined oil from coconut and oil palms can also be used as a key adjuvant in crop protection products.

Active ingredients and adjuvants

Crop protection products consist of an active ingredient and one or more adjuvants. The active ingredient performs the crop-protection effect and is thus the core of the product. Adjuvants function, for example, as solvents, and in different ways support the job of the active ingredient as they facilitate handling and spraying, and ensure the uniform distribution and the optimum effect of the active ingredient in the field. Crop protection products usually come in liquid form. They are either water-based or based on organic solvents. The amount of active ingredient in liquid formulations is usually 10-40%, but the volume of water or organic solvents as a rule constitutes 50-80%. The remaining approx. 10% consists of other adjuvants.

natural substances offer surprising potential for product improvement.

protection effect is outstanding. However, out of concerns for the environment and occupational health and safety, solvents are now generally not desired. By far the best way of removing organic solvents from crop protection is to develop and use solid particles or water-based crop protection products. Therefore, one of Cheminovas key activities within formulation development today is developing solid and water-based crop protection products with optimum effect and good environmental properties. Some active ingredients in insecticides, herbicides or fungicides, however, do not have a sufficient effect or are not sufficiently stable if they are used in solid form or in waterbased products. In other words, using organic solvents is necessary to ensure the necessary effect or to ensure the stability of these active ingredients.

using these methyl esters as solvents in certain crop protection products.

Attractive properties
In addition to originating from a sustainable CO2-neutral source, these methyl esters have particularly attractive environmental and occupational health and safety properties. However, the methyl esters are considerably more expensive than the petrol-like solvents, but this is justified by their more attractive environmental properties. Cheminova is using the methyl esters in commercial fungicides and insecticides. It is likely that the methyl esters will also be used in new herbicides which are still being developed. During the development work with the methyl ester solvents, it has become clear that the methyl esters are considerably less toxic for crops than traditional organic solvents. In unfavourable circumstances, traditional solvents can scorch the crops. The lower toxicity of the methyl esters for crops is probably due to the fact that they only cause limited damage to the plants protective layer of wax.

Methyl esters Patent applications

The mildness of methyl esters vis-vis crops has resulted in Cheminova filing several patent applications. Stabilising an easily degradable active ingredient, increasing the effectiveness of active ingredients and the possibility of developing a state-ofthe-art crop protection product from an active ingredient produced from microorganisms are also included in the patent applications.

Solid and water-based products

From a historical point of view, crop protection products based on organic solvents have been predominant. This is because they are cheap and relatively easy to develop and produce. Moreover, they are easy to spray, and their crop

In some of these products, Cheminova has managed to replace traditional organic solvents with solvents based on plant oil from coconut or oil palms. A fraction of the oil from palms, specifically the short-chained fatty acids, has turned out to have surprisingly good properties as a solvent for crop protection products. The properties of the short-chained fatty acids are further improved if modified chemically through conversion to socalled methyl esters. Cheminova is

It is important to understand the biological interplay in nature when risk factors in connection with crop protection are to be determined.

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CHEMINOVA PRODUCTDEVELOPMENT

Lots of testing before new substances can be approved

We do not only conduct mandatory investigations, but also contribute to the scientific development of improved methods for determining risk.
Inge Margrethe Jensen, Department Manager, Registration
pproval of crop protection products is based on risk assessments for humans and the environment. In the risk assessment, the effects are evaluated in relation to the possible exposure, for example toxicity to humans is determined based on the possible intake through foods. It is often the case that risk assessment is a step-wise process, where you start by making some general assumptions and use standard safety factors. If it becomes apparent that the risk is unacceptable, more in-depth investigations of the effects and measuring methods are required. The approving authorities always have research programmes in progress with a view to conducting better and more accurate risk assessments. Cheminova has on several occasions contributed to such programmes by making data available, by sponsoring the programmes or by supplying test materials and methods of analysis. In this way we have helped to define a new trend within risk assessment.

work with malathion at a conference for specialists in Europe.

Assessing breakdown products

Our work with accurately determining the relative toxicity of breakdown products has produced useful knowledge which is being used in evaluating the risk from intake of pesticide residues through food. To support our registrations in the US, we have conducted a number of comparative studies of the toxicological effects of our insecticides dimethoate and malathion and their breakdown products. Risk assessments based on this work have been published, and as far as the work with dimethoate is concerned, an article which was published recently won an award as the best in its class.

Aquatic plants
At the moment we are collaborating with the authorities, industry and the academic world on drawing up more precise risk assessments for aquatic plants. In connection with the approval of herbicides, this is important if the breakdown products also have a biological effect. Here, we have made data available. The work will be published either at a workshop or a conference in Europe, and will later form the basis for a risk assessment guide.

Insect-eating birds
For example, we have helped to develop methods for determining pesticide residues on insects and using these measured values in risk assessments for the insect-eating birds. In collaboration with a consultant and a contract laboratory, we presented the

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CHEMINOVA CLOSETOTHEMARKET

R&D centre in India

After acquiring the factory in India in 1997, the next step was establishing an R&D centre in connection with the facility.

he R&D centre was established in 1999 with the primary aim of improving production processes at our facilities in India and developing new products for the Indian market. Today, the centre is fully integrated with the development department in Denmark and contributes new solutions not just for the Indian market but also for Cheminovas global organisation.

India is growing
India is characterised by growth, and a growing, well-educated middle class is making it possible for Indians to carry out advanced projects at a technologically

ingredients at the Indian production plant have been developed by chemists at the R&D centre. Quality control is carried out using modern chemical analysis methods in the adjacent laboratory. The ready-to-use products which are sold to farmers are produced at the formulation plant. The production method is based on recipes which have also been developed locally. Thus, over the years, the local development team has collaborated actively with the rest of the organisation to produce products for the Indian domestic market.

Future already here

Cheminovas business plan Fivein-Fifteen is based, in particular, on the development and marketing of new products. It demands that the development department in Denmark and the R&D centre in India each play an active role. It is very important to make the most of every opportunity for collaboration. One example of this is the development of a new fungicide which will be part of Cheminovas global product programme especially for mixing with other Cheminova fungicides.

advanced level. At the same time, India is still an agricultural country, where agricultural production is witnessing change. The market for crop protection products is growing, and is moving away from the unilateral eradication of insects using old-fashioned products, and both herbicides and fungicides are playing an increasingly important role. This is altogether a situation which ties in well with Cheminovas strategic development plans.

Global development activities

Several Indian projects have already had a big impact on Cheminovas global development. The Indians played a pioneering role in developing and producing the insecticide imidacloprid. While production of this product was patent-protected elsewhere in the world, it was possible to freely develop the product in India. This put Cheminova in a favourable position when the world market became accessible, and the Indian initiative was a significant factor in Cheminova being able to enter into cooperation with the original producer. Moreover, the Indian development work has made it possible to launch competitive productions of other products, which are sold today via other Cheminova subsidiaries.

A strong card in the Indian market

Cheminovas R&D centre is, together with the quality control laboratory, a major asset for production in India. Almost all the chemical processes which are used to produce active

Following the phase-out of toxic monocrotophos, a production facility in India became available, and through global project collaboration it was quickly decided to rebuild the old plant so it could be used to produce the new fungicide. The chemical production process has been developed through collaboration between Danish and Indian chemists. And developing recipes for the finished mixtures is based, among other things, on the need to control fungal diseases in soybean production in Brazil.

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CHEMINOVA CLOSETOTHEMARKET

Facts about India

Area: 3,287,590 sq km (seventhlargest worldwide). Population: 1,095,351,995 (second-largest worldwide). Average annual income per capita (purchasing power) USD 2,740.

2006 Lorem 43% Ipsum 31%

Lorem 43% 2006

We have stopped producing a very toxic insecticide. Ipsumproduction The 31% Sit amet 15% Dolor Cheminovas plant has been rebuilt to supply a low-toxic fungicide for 11% Sit amet 15% global product programme.
Niels Morten Hjort, Senior Vice President, Production & Logistics

Dolor 11%

Crop protection in India

47% Insecticides

35% 47% 17% 1%

Sales of crop protection products in India are worth approx. USD 1 billion a year, corresponding to Ukrudtsmidler approx. 2.5% of the world market. The market 35% Ukrudtsmidler for crop protection products is Insektmidlerdistributed as follows: 47% Insektmidler Most important markets for crop protection Svampemidler 17% Svampemidler (crops): Rice, cotton, fruit, vegetables products Andet Andet cereals. and 1%

47% Insektmidler 35% Herbicides 35% Ukrudtsmidler 17% Svampemidler 1% Andet

17% Fungicides 1% Other

31% Insektmidler 31% Insektmidler 42% Ukrudtsmidler 25% Svampemidler 2% Andet

42% Ukrudtsmidler 25% Svampemidler 2% Andet

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CHEMINOVA CLOSETOTHEMARKET

market knowledge generates new products

Cheminovas vision is to develop and market innovative products that add value for farmers. The basis for Cheminovas marketing is created at the outset when the idea for the product arises.
Rico Toft Christensen, Vice President, Global Portfolio

n the past two decades, Cheminova has built up a global organisation with its own subsidiaries in basically all the key markets. The local market knowledge which has been acquired is a necessary precondition for the successful development and marketing of Cheminovas products. The development of new products is based on market needs which Cheminovas products can meet. These needs are identified by means of thorough market analyses.

New damaging insect in southern Europe

Cheminovas abamectin products have proved particularly suitable for controlling a new damaging insect in southern Europe. The standard product in the market is based on organic solvents, but Cheminova has developed an improved product with water as solvent and natural plant oils as adjuvants. These products are therefore classified in a lower toxicity class, which is important for farmers handling the product in concentrated form. The abamec-

tin products are thereby geared for the treated with Rubric produces the bigfuture, and they are being marketed for gest yields. This has very concrete and new applications: Southern Europe has direct advantages for farmers, which makes it easy to marex p e r i e n c e d ket, but it nevertheless serious probrequires, of course, a lems in recent well-documented basis years in tomain the form of numerous toes with a field trials. Cheminovas new pest, Tuta technical experts preabsoluta, a leaf pare and organise these miner moth intrials in collaboration troduced from with local and independSouth America. Cheminovas Henrik Nrskov Pedersen, ent consulting bodies. In abamectin is Portfolio Manager, Denmark, we cooperate being marketInsecticides with the consultancy firm Dansk Landbrugsed as one of rdgivning (DLBR) in the very few effective solutions available for control- Skejby near Aarhus. ling this new pest.

market knowledge at agronomic level has given us a tool for efficient marketing.

Anti-splash packaging A more effective fungicide

Epoxiconazole, which is marketed under the trade mark Rubric, is Cheminovas product for combating fungal diseases in cereals in, for example, Denmark, where Cheminova has developed a more effective product than its competitors. Trials have shown that cereals A product like Rubric, which confers value for the farmer in the form of higher yields, can thus be marketed on the basis of a very direct benefit for the farmer. However, in other contexts, the marketing is based on softer and more indirect elements. Cheminovas glyphosate products are sold in large pack-

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CHEMINOVA CLOSETOTHEMARKET

There are obvious advantages to containers that do not splash a kitchen test with water shows a perfect stream.

The precise and targeted combating of fungal infection in banana plants is environmentally friendly and also functions as good marketing.

agings, i.e. 10-litre and 20-litre containers. The disadvantage is that, due to their size, the contents gush out when the farmer needs to pour the product into the sprayer. Most people are familiar with the situation, such as when pouring windscreen wash from a large container into a smaller reservoir. What often happens is that the product glugs and splashes around the sprayers filler cap. Cheminova is therefore successfully marketing products supplied in special containers which prevent this from happening and it has thus been called an anti-splash container.

As a new concept, Cheminovas fungicide flutrialfol is applied with a special, hand-held sprayer, whereby a few drops of the product are sprayed on the upper leaf sheaths on the individual banana plants to combat the disease Black Sigatoka. The fungicide is transported from where it lands around the plant and is effective throughout. Traditionally, aerial spraying has been used for this purpose, but the new method achieves a better effect and far more precise and targeted eradication. This is an environmental benefit, and it avoids polluting water courses in the area.

A few drops directly on the banana plant

These examples show how, in its marketing, Cheminova uses elements that directly or indirectly create value for farmers. But there are other avenues which can be pursued in marketing. In addition to focusing on specific products and properties, we also need to market products as solutions that can, for example, support new and sustainable cultivation systems.

Mixtures and crop strategies

Another example is crop strategies, where Cheminovas products are used as basic components for organising a complete programme for controlling weeds, disease and pests. Cheminovas broad range of products also opens up the possibility of marketing mixtures with an enhanced and/or a broaderspectrum effect. In this way, we can enter the ring with our competitors, who are marketing mixtures where

one of the products is patented for the same purposes. As mentioned, in-depth market knowledge is a precondition for Cheminova being able to develop and market crop protection products. Effect, higher yields and better quality are important properties for the farmer for obvious reasons, but the softer values, for example a lower toxicity class for the abamectin products, anti-splash containers as well as more targeted and effective use of crop protection products, are also important factors for the farmer. Marketing products which are more user-friendly, environment-friendly and effective is also important for Cheminova, which is thus able to demonstrate corporate social responsibility and sustainability. This is described in more detail in our annual CSR reports.

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CHEMINOVA Humanresources

Cooperation and creative solutions come in handy every day.

It takes courage and a clear head to be an inspiring leader.

Navigating a ship takes more than simply understanding the charts.

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CHEMINOVA Humanresources

innovation calls for education at all levels

Applying new knowledge and ideas is inextricably linked with employee development, because it is in the nature of things that knowledge and ideas are bound to the employees.
Ole Zinck, Vice President, Human Resources
nnovation in an HR context is practised in several ways: When recruiting new employees, during the training and development of managers and employees, and when laying down policies for laying down policies for social behaviour.

Training and development

Training and development take place at several levels: In connection with the HR strategy, on the basis of the needs of a particular department or area, and as a result of employee appraisal interviews. An HR strategy and action plan are drawn up every year. This is discussed in relation to the business strategy for development and growth, and a decision is made on which employee development activities to implement. These may include, for example, launching an international project management course, implementing a leadership development programme, organising courses in connection with the introduction of new IT systems, or new methods such as LEAN and ongoing improvements. When holding the employee appraisal interviews, a conclusion is prepared for each employee, which can contain a wide array of training and development activities. It might be anything from a desire to be involved in particular assignments or projects to participating in various courses or seminars either locally or abroad. Finally, Cheminova offers a wide range of internships, by which we ensure that the organisation can be staffed with qualified and talented employees. We offer internships to students and apprentices within

a number of areas as well as trainee positions for newly qualified academics.

How we conduct ourselves

Innovation and development will only succeed where employees interacting with one another enjoy mutual trust, and where there is some healthy disagreement on what is the best course of action in a given situation. Employees often encounter barriers such as We dont normally do that and , Thats not how we do it here It is . therefore important to formulate a policy for collaboration and conflictsolving as the innovative processes involving a number of people hold a risk of disagreement developing into an inappropriate conflict. We therefore have a policy for collaboration and conflict-solving, so that through interest-based methods it is possible to resolve situations where disagreement is beginning to develop into a conflict in a positive way that benefits all the parties concerned. By establishing a sound framework for tackling disagreements and through implementing a wide range of employee appraisal interviews, we have an exciting and future-oriented platform for continued innovation and development which is contributing to Cheminovas Five-in-Fifteen business plan.

Recruitment
In connection with recruitment, the candidates professional and personal profiles are important. The professional profile must ensure that we acquire new knowledge and new or different experience with regard to the way in which we operate. Many of our employees have recently graduated from educational institutions with which we enjoy close collaboration, and this ensures the introduction of the latest know-how. To the extent that we employ graduates who already possess experience, in addition to their knowledge we also benefit from their experience of doing things differently. The personal profiles of new employees need to be matched to the culture we want to develop at Cheminova, where guidelines on conduct are expressed in our values. In this way, all new employees actively contribute to the development we seek.

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improved competitiveness and job satisfaction

Cheminova started a LEAN project after a study showed that savings totalling approx. DKK 100 million could be realised by implementing a number of changes in production.
Background facts
LEAN is a business philosophy which came about at the Toyota factories in the 1960s, and which aims to optimise and streamline work processes in a company. Today, LEAN is used worldwide and saw widespread implementation in Denmark around 2000. By 2005, three out of five production companies had implemented LEAN.

CHEMINOVA Humanresources

n January 2008, Cheminova started a LEAN pilot project at the glyphosate plant, its biggest production facility. Erling Lisby was part of the LEAN work group at the glyphosate plant. As a production employee, he possessed considerable knowledge about the problems at hand, and could answer practical questions about how things work at the plant. The fact that all the layers in the company were represented meant the project was a huge success, and it received full support of the top management. We were taught about LEAN and started to think differently. Now, when setting the daily targets for what we have to produce, there is a

greater feeling of shared responsibility for our work. There is also an element of competition: Can we produce more than expected? says Erling Lisby.

LEAN teams control processes

Today, four people have been employed who plan and manage the LEAN projects in Cheminova. One of the LEAN team employees is Jesper Munk Jacobsen, a development chemist who worked in the development department before landing a job with LEAN in production. We run projects which last about six months at a time. When we arrive at a new facility, we are completely in the dark about it. After two weeks however, we are ready to present an

Visibility and hand-over to the next shift as well as focusing on production targets result in commitment, job satisfaction and increased production.

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CHEMINOVA Humanresources

Measure sheets
The biggest savings which have been realised as part of the LEAN process come from the so-called measure sheets, which are lists of ideas from the employees. About 50 suggestions for improvements have been made, which are entered in a system with an owner ascribed to each idea. This owner is then responsible for ensuring that the idea is developed. The measure sheet also shows what has happened at various points in the project to realise the idea in practice. Many different ideas have seen the light of day on a measure sheet from minor changes to projects costing DKK 20 million to implement.

the best suggestions come from the employees who are familiar with the processes as part of their daily work, and this obviously leads to improved results but also increased job satisfaction among the employees.
Niels Bkdal, Lean Manager

analysis of what can be improved at the plant. Two weeks after that we present a plan for where changes need to be made, and twelve weeks later it is implemented, and we should be able to see a 20% improvement relative to the situation before the LEAN process commenced. And then its on to the next plant, explains Jesper Munk Jacobsen. It has been a huge success around the factory, and it hasnt been a problem selling the idea to employees, says Jesper Munk Jacobsen, adding: As a LEAN team, we are just catalysts for initiating the changes. It is the employees themselves at the plants who suggest the improvements.

The big changes have involved visibility. The LEAN team forms an overview and creates further visibility in the areas where problems exist. The operator needs to know exactly where focus is required. It needs to be obvious when you need to think about what you are doing and what you have to do.

Bottlenecks cleared at pyrethroid plant

At the pyrethroid plant, large boards are mounted on the walls in the plants control room which are used to control targets. The target for the individual shift is written down, followed by what is actually achieved. If the shift is behind

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CHEMINOVA Humanresources

improved competitiveness and job satisfaction

The right tool for the job at the right time and place boosts productivity.

Even though we are proud of our employees competencies at Cheminova, the work processes can still be improved. LEAN enables us to focus on improving flow in the production of our many products.
Niels Morten Hjort, Senior Vice President, Production & Logistics
4,0 3,5 3,0 2,5 2,0

The weekly production of pyrethroid has risen after LEAN. The first column shows the weekly average before LEAN. The operators closely follow how much is produced and thereby focus on avoiding the negative deviations.

Experience from workshops

In the workshops where LEAN projects have been implemented earlier, focus was on how employees use their time. It became apparent that a disproportionate amount of time was spent cycling back and forth to fetch tools and spare parts. Now service vans containing all the tools and the most frequently used spare parts are dispatched. This has increased the technicians productivity considerably. LEAN has resulted in big savings and thereby increased the companys competitiveness as employees are collaborating better, communicating better with each other, and basically working more efficiently. It takes many changes to the work processes, but increases job satisfaction because more feedback is provided on employee performance.

LEAN results at Cheminova

The glyphosate plant has increased capacity by 17%. The filling unit increased Overall Equipment Efficiency (OEE) by 17%. The workshops, which conduct inspections of machinery, now spend considerably less time performing the tasks. The pyrethroid plant has increased capacity by an impressive 21%.

schedule, the reason is1,5 noted down on the board. Consequently, there is always 1,0 focus on what needs to be achieved by 0,5 each shift, and a lot of openness about 0,0 what Cheminova expects of its process operators. Previously, the output from the individual reactors was not even measured, but this happens now to give the process operators a sense of whether they have achieved what they should on their shifts. This focus on output for each reactor has also led to far greater stability, with an average output of more than 90% with very little variation, compared to previously when the average output was lower and with much more variation. Instructions have been drawn up outlining what to do in the event of abnormalities. This makes the work of the process operators more interesting as they can solve any problem themselves rather than having to call in an assistant as they did in the past.

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CHEMINOVA Humanresources

profits fund research

he Aarhus University Research Foundation co-owns Cheminova, and the companys profits therefore contribute to research projects, grants and other scientific activities at Aarhus University. The research foundation supports research within a wide range of scientific disciplines from theological and historical studies to scientific investigations into the biology of different grasses and medical research concerning the effect of virus attacks on the immune systems cells.

Chemical synthesis is seeing rapid development, and research results are showing the way with new, innovative, environment-friendly and very selective chemical reactions. the innovative industrial chemical production of new products is impacted to a large extent by recent research advances, and Cheminova has managed to transform these research results into technical development. as the main shareholder in auriga industries, and thereby also Cheminova, the aarhus university research Foundation has been given the opportunity to financially support and promote research in areas that extend far beyond research into chemistry and the natural sciences.
Karl Anker Jrgensen, Professor of Chemistry at Aarhus University and a member of the Board of the Aarhus University Research Foundation

idworks.dk/4523/06.10

Cheminova A/S P.O. Box 9 DK-7620 Lemvig

Tel. +45 9690 9690 Fax +45 9690 9691

info@cheminova.com www.cheminova.com