FALL 2016

Shines on Avatar and WeylChem

MeMberSpotlight

SOCMA’s Broader FocusAttracts, Benefits Avatar Corporation

SOCMA Support Facilitates

Organizational Change at WeylChem U.S.

the intention of helping the company tacklethe challenges it faced due to the decliningagrochemical market. “The goal is to makeWeylChem U.S. more sustainable by imple-menting smart solutions,” he said. Initially,a risk assessment was conducted in orderto identify areas for improvement within thecompany and opportunities for growth inexternal markets. The information gained fromthis analysis was used to develop a strategyfor increasing the overall competitivenessof WeylChem U.S.

“The first step was to make changes to thecompany structure and processes, and it iswell under way. That includes investmentprocess-related advances to improve effi-ciency and productivity. We also recentlybegun implementing phase two – lookingat how WeylChem U.S. can serve differentindustrial sectors with existing and potentiallynew technologies,” Robin observes. “Ourbiggest accomplishment to date has beento find smart ways to be sustainable in avery challenging agrochemical market.” Thecompany is, in fact, on the way to makingmajor investments in new projects that willmeet the needs of an industrial market. “Wehave high expectations that when the projectsare completed it will change the split of our

Rapidly changing market conditions canpresent significant challenges to smallspecialty manufacturers focused on providingproducts and services to a very targetedmarket. SOCMA member WeylChem U.S.recently faced that challenge due tochanges in the agrochemical sector. Thecompany responded quickly, though, witha two-pronged approach: organizationalchanges have increased its nimbleness andflexibility and improved its cost structure,while at the same time the application of itstechnical capabilities in new ways is enablingentry into a broader range of industrialmarkets.

WeylChem U.S., located near Columbia, SC,is one of nine operating companies in theWeylChem Group of Companies, which wasestablished in 2005 as the Fine Chemicalsplatform of International Chemical InvestorsGroup (ICIG), a privately owned industrialholding company. In addition to offeringspecialty intermediates for the productionof agrochemicals, WeylChem U.S. has ex-tensive expertise in Grignard chemistry andproduces a wide range of Grignard reagentsas catalog products and for internal use. In2016, under the leadership of new CEOPhilippe Robin, the company is developinga third area of expertise – the production ofspecialty intermediates and advancedproducts, including polymeric materials, fora number of different industrial applications.

Philippe came to WeylChem U.S. aftercompleting a successful turnaround atanother Weylchem Group company, with

SoCMA Support Facilitates organizational Change at WeylChem U.S.

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“the goal is to make

WeylChem U.S. more

sustainable by

implementing smart

solutions.”

Rapidly changing market conditions can presentsignificantchallenges tosmall specialtymanufacturers...

WeylChem CEO Philippe Robin came toWeylChem U.S. after completing a successfulturnaround at another WeylChem Groupcompany and has a goal to make the companymore sustainable by implementing smartsolutions.

WeylChem U.S. is specialized in Grignardchemistry and offers a broad range of Grignardreagents.

WWW.SOCMA.COM • MEMBER SPOTLIGHT • 3

portfolio so that we are more heavily involvedin the industrial rather than the agrochemicalsector,” said Robin.

SOCMA has been instrumental in helpingWeylChem U.S. achieve its successful turn-around. As part of his new strategy, Robinasked his leadership team to develop anoperational excellence program because,based on his previous experience, he believedit would provide significant benefits for thecompany. “SOCMA staff not only helpeddefine the program and its targets, theyalso assisted us with identifying the bestapproach for implementing the program.They were very flexible and responsive and,perhaps most importantly, helped us workthrough numerous options to define ourobjectives.” Robin explains. The company’sChampion and Green Belts are currentlybeing trained, and Robin expects the programwill be implemented by the end of 2016.

Although Robin only joined WeylChem U.S.in January of 2016, he notes that the valueof SOCMA to the company has been readilyapparent to him from very early on.“SOCMA’s metrics program for regulatorycompliance has been very useful fortracking and reporting our performanceand identifying areas where we need toimprove. In particular, the external auditsthat are part of ChemStewards® provide avaluable perspective and a way to highlightcompany activities where we should beconsidering new ideas,” he said. In addition,the staff at SOCMA have helped WeylChemU.S. save a lot of time and energy by quickly

connecting the company with the rightpeople at federal agencies, according toRobin. In addition, the involvement of twoWeylChem U.S. employees on SOCMA’sEnvironment Committee helps the companystay informed on regulatory developmentsand provides access to useful compliancesolutions. Robin has also observed thatSOCMA’s Chemical Operator Training programhas been important to the company. “Withall of the changes that are taking place atWeylChem U.S., our operators are spendinga lot more time in the training room, andSOCMA’s program has been a real assetduring this process.”

Perhaps most of all, Robin has appreciatedthe accessibility of SOCMA staff and theirreal desire to provide assistance to members.“SOCMA staff always respond quickly anytime we make an inquiry, and they are veryeasy to work with. In addition, they are veryopen to new ideas, always willing to assist,and always looking for practical solutions.Equally important, if they don’t have theanswers, they are willing to help find theright people who can provide them. In

today’s dynamic market and increasinglycomplex regulatory environment, smallspecialty companies like WeylChem U.S.that are undergoing significant changes inorder to increase their competitiveness havea better chance of success when they haveaccess to the extensive support offered bySOCMA,” Robin concludes.

“SoCMA’s metrics program for regulatory compliance

has been very useful for tracking and reporting our

performance and identifying areas where we need

to improve. in particular, the external audits that are

part of ChemStewards® provide a valuable

perspective and a way to highlight company activities

where we should be considering new ideas.”

The WeylChem U.S. plant is located in Elgin, SC.

WeylChem U.S. Commercial Director RobHarpum shares his thoughts on the company’stheme – Better chemistry – achieving more:“human chemistry is important because peoplebuy from people.”

SoCMA’s broader Focus Attracts, benefits Avatar Corporation

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The company’s biggest accomplishment, headds, occurred two years ago when the U.S.Food and Drug Administration upgradedthe Avatar facility from a bulk pharmaceuticalchemical manufacturer to an API manufacturer.“While we don’t do unit dose manufacturing,published classification as an API manufac-turer reflects our commitment to quality andsafety and enables us to provide a widerrange of products to the pharmaceuticalindustry,” Shamie explains. “Our goal is to bea solutions provider, to help our customers– in all three of our end markets – overcomechallenges or address needs that aren’tcurrently being met by available productsor technologies. The transition to API hasenhanced our ability to do so for our pharmacustomers.”

Avatar has several projects under way tofurther expand its capability to meet andexceed customer expectations. “We buy alot of raw materials in bulk, and have up tonow been trans-loading from rail cars into tanktrucks,” Shamie said. “Significant investmentis being made to upgrade the rail track intothe plant site from 90- to 115-pound rail toenable direct rail delivery and pick up at theplant.” The company is also installing a 70-foot digital truck scale to improve on-siteefficiency and control. In addition, 75,000square feet of new space will be added tothe ~120,000 square feet already in use byAvatar. New HVAC equipment is currentlybeing installed to bring the packaging area

When it was first founded as the SyntheticOrganic Chemical Manufacturers Association,SOCMA focused on providing support tosmall and medium-sized chemical companieslargely involved in custom/toll manufacturing.Today, as the Society of Chemical Manufac-turers and Affiliates, SOCMA provides supportto companies involved in a much broaderrange of activities beyond chemical synthesis,including repackaging, blending, compound-ing, as well as distribution, analytical servicesand much more.

This broader scope, combined with the myriadbenefits offered by SOCMA, convinced Illinois-based Avatar Corporation to join SOCMAin 2014, according to President, CEO andcompany founder Michael Shamie. Avatarmanufactures products for the pharmaceuticaland personal care sectors, including excip-ients and active pharmaceutical ingredients(APIs), using current Good ManufacturingPractices (cGMP). For the food industry, Avataris the leading global supplier of baking releaseagents, and all of its food ingredients arecertified to conform to SQF Level 2 by anindependent third-party auditor (NSF) recog-nized and accredited under the Global FoodSafety Initiative (GFSI). “All three of thesesectors have a common thread, largely highexpectations for quality,” Shamie said. “AtAvatar, we place extreme emphasis on qualityand have both in-house quality assurance(QA) and quality control (QC) groups, which setsus apart from many of our competitors.”

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Company upgrading food safetycertificationand rail track,among otherprojects

The rendering shows Phase 3 of Avatar Corporation’s future plans for improvements andexpansion.

company followed SOCMA’s format, whichhelped contribute to the success of theevent, according to Shamie. Participationin the ChemStewards® program has beena big plus as well, leading not only to abetter and more logical safety program atAvatar, but also resulting in lower insurancepremiums.

SOCMA’s Chemical Operator Training Programhas been very valuable for the company ina number of ways. In addition to using theprogram to train its employees, Avatar hasbeen successful at getting several of the localcommunity colleges to adopt the programinto their curricula. “We and other specialtychemical companies in the area have haddifficulty finding people with relevant knowl-edge for working in a chemical manufacturingplant,” Shamie said. “SOCMA’s trainingprogram has been a key component of ourstrategy to overcome that difficulty.”

He also points to SOCMA’s work on Miscel-laneous Tariff Bill (MTB) as being particularly

beneficial for Avatar. “I spent a lot of timeworking with SOCMA staff to get the billpassed and was very pleased when it did,”Shamie said. “We have at least one productwe import into the United States that is notmade by any U.S. manufacturer, but forwhich we were being charged import duties.These types of tariffs don’t make any senseand are in fact anti-business. Passage ofthe MTB should bring relief to Avatar andother small companies facing similar butunnecessary costs. SOCMA played a pivotalrole in getting the bill passed, and we aregrateful for all the effort the staff put intomaking it happen.”

In addition to the resources that SOCMAbrought to bear on this trade issue, theassociation also has a very active advocacygroup fighting for reasonable regulationsthat consider the environments withinwhich small and medium-sized companiesoperate and provides extensive regulatorycompliance support, according to Shamie.“Membership in SOCMA provides companieslike Avatar with access to many types ofresources they would not otherwise have,and as importantly, the organization isspecifically focused on supporting smalland medium sized chemical companiesthat perform a wide range of activities fromchemical synthesis to blending and com-pounding,” he said. “Our membership inSOCMA has been truly beneficial to theoverall operation of the business.”

We and other specialty chemical companies in the

area have had difficulty finding people with relevant

knowledge for working in a chemical manufacturing

plant,” Shamie said. “SoCMA’s training program has

been a key component of our strategy to overcome

that difficulty.”

up to ISO Class 8 standard. “While manycompanies are putting off capital investmentslike this due to uncertainties surrounding thepresidential election and its impact on theeconomy, Avatar is growing, and we arecommitted to making investments that willenable us to continue to meet the needs ofour customers,” Shamie said.

On the safety and quality front, the companyis upgrading its SQF food safety certificationfrom Level 2 to the highest Level 3. “Evenmore than SQF Level 2, SQF Level 3 providesadded assurance to our customers that weare continually evaluating global industrystandards to meet and exceed their highestexpectations,” says Shamie.

SOCMA is also helping the company betterserve its customers. “We have a very positiverelationship with SOCMA, and being amember of the organization has been verygood for the company,” Shamie observes.For Avatar’s visit in January 2015 by UnitedStates Congresswoman Robin Kelly, the

Avatar Corporation provides bulk packagingin stainless steel tank trucks, as well as railcars.

Avatar Corporation manufactures, refines andsupplies raw materials and ingredients forthe food, drug and personal care industries.

Michael Shamie, President, CEO and com-pany founder of Avatar Corporation.

WWW.SOCMA.COM • MEMBER SPOTLIGHT • 5

president’s leadership Award Winners

Excellence in Advocacy

Brenda SeggermanEnvironmental Health and Safety Engineer, Hydrite Chemical Company

Brenda Seggerman, an Environmental Healthand Safety Engineer with Hydrite ChemicalCompany, is the recipient of SOCMA’s 2016President’s Leadership Award for Excellencein Advocacy. In 2016, Brenda representedSOCMA as a small entity representative(SER) on the Small Business RegulatoryEnforcement Fairness Act (SBREFA) panelson two parallel rulemakings – EPA's RiskManagement Program (RMP) Rule andOSHA’s Process Safety Management(PSM) Rule.

SOCMA was very fortunate to have Brendavolunteer for both the RMP and PSM SBREFAprocesses and that Hydrite allowed her toserve in this capacity.

As part of her contribution, Brenda:

• Provided insight on EPA's proposedemergency response provisions thatwould require facilities to comply withan OSHA rule on fire brigades.

• Provided a high degree of detail abouthow increased legislation could resultin unsafe practices of storing flammableliquids in drums and totes. Her informa-tion was quoted several times in finalreports from OSHA, SBA and White HouseOffice of Management and Budget.

• Made several novel suggestions forameliorating the impact of the proposedrules, such as examples of professionalauditor certifications that are morerelevant, and held by more people, thana Professional Engineering (PE) license(as EPA has proposed).

Brenda’s work was highly praised by SBA and, in many respects, became the core of SOCMA’sown comments on the relevant issues. If the resulting rules are better than what was sharedwith the SERs, it is likely to be because of Brenda’s contributions. Congratulations, Brenda,on this well-deserved honor.

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Brenda Seggerman also participated in theChemStewards National Chemical SafetySymposium, where she spoke to the groupabout her participation in the SBRFA panels.Here, she is taking notes during a breakoutsession at the national meeting in Houston.

Brenda Seggerman’s advocacy efforts gofar beyond her representation on the SBRFApanels. She was one of about a dozen SOCMAmembers who made a presentation before theEnvironmental Protection Agency regardingbatch processing and process safety.

Brenda Seggerman, an EHS Engineer withSOCMA member Hydrite, represented theassociation as a small entity representativeon the SBA’s Small Business RegulatoryEnforcement Fairness Act panels.

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Excellence in Service

Karli GreeneHuman Resources, CJB Industries, Inc.

Karli Greene of CJB Industries, Inc., hascontributed her time and expertise to createa new chapter on formulation for SOCMA’sChemical Operator Training (COT) program.

CJB Industries, Inc., has taken the initiativeto review the SOCMA Chemical OperatorTraining program and assess its relevancyfor companies that do formulation/mixing/blending but NOT reaction chemistry. Theoutput of their efforts was the creation of anew chapter (Chapter 15) specifically designed for formulators with a focus on agriculturalchemical mixtures. SOCMA continues to explore the value of creating a new nationallyrecognized credential called the Certified Process Operator in collaboration with our partner,Manufacturing Skills Standards Council (MSSC). If the idea is viewed favorably by downstreamformulators and processors, there is no question the contributions of CJB will be highlyrelevant and can be built upon by other industry formulators, such as food/beverage,personal care products, paints, adhesives, etc.

Karli led the charge in this effort, and for this is the recipient of SOCMA’s 2016 Excellencein Service Award. Congratulations, Karli, on a job well done.

SOCMA Welcomes Newest MembersSOCMA is pleased to welcome the following members to the association. We look forward toworking with all of you:

• AGI USA, Inc.• AMD Advisors, LLC• Analytical & Regulatory

Chemistry, Inc.• Anchin, Block & Anchin LLP• Archroma U.S., Inc.• Athlon Solutions• Biophore Pharma Inc.• Cardolite Corporation• ChemicalInfo• Chemical Management

Solutions, LLC• Dober• Encapsys, LLC• Gilbert Industries• Haynes and Boone, LLP• Husch Blackwell LLP• Ingevity• Insys Therapeutics, Inc.• Janssen Pharmaceuticals, Inc.• Marigold Management

Group LLC• Michigan State University

Bioeconomy Institute• Nachurs Alpine Solutions• Nortec Quimica S.A.• Patheon API Manufacturing, Inc• PerformanX Specialty Chemicals• Pinnachem• Quantum Materials Corp• REACHLaw Ltd.• RTMcDill Consulting LLC• Sage• Systran, Inc.• Texas Molecular• Toyota Tsusho America, Inc.

Karli Greene provided her time and expertisein crafting a new chapter on formulation forSOCMA’s Chemical Operator Training (COT)program.

Karli Greene led the charge in creating the new chapter for SOCMA’s Chemical OperatorTraining program.

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The Spotlight shines on... Avatar and WeylChem