annual report · 2018-03-31 · pca annual report 2016-2017 2 association to pursue other...

ANNUAL REPORT

2016-2017

PCA Annual Report 2016-2017 2

In January, our President Sherry Keramidas, announced her decision to resign from the Pine Chemicals Association to pursue other endeavors. The PCA Board then formed a search committee, who have identified and interviewed several candidates. No decision has yet been made on a replacement. In the interim, past President Charlie Morris, has been working as the “acting President” and will continue to assist until a new President is identified.

Today our industry is undergoing many changes and challenges including major shifts in global supply of rosin, intrusion of low cost hydrocarbon resins that are competing with rosin use in inks and adhesives, competitive substitutes for TOFA in the production of dimer acid, challenges to CTO availability due to governmental mandates and incentives for biofuel use, and regulatory challenges around the globe.

The good news is that our products are renewable and based on sustainable forestry. However, if ever there was a time for our association to make a difference and bring value to our industry efforts, now is the time.

By sharing best practices, sponsoring educational seminars, advocating for our industry and addressing regulatory challenges with facts and good science, the Pine Chemicals Association International will continue to bring value to our members and to our industry.

Our PCA committees are the backbone of our association and they continue to be quite active and productive, as can be seen from their updates in this report and the reports at the upcoming meetings.

A few of the highlights include: the planning of a “Recovery Short Course” later this year, our annual presentation of safety awards, continued cooperation and support of HARRPA in their efforts to assure CTO is available for all uses without governmental mandates or incentives unbalancing the supply and setting artificial values.

Our EHS committee is pleased to welcome, Joel Anderson, as a new support person. Joel, recently retired from Ingevity and brings a wealth of experience in developing and implementing safety programs and culture change. Jerry Smith, who has done an excellent job in supporting his committee for several years will now focus his efforts on the Recovery Committee.

Thanks to all our member companies for their support. We urge you to have your employees get involved with our committee work as both your company and the industry will benefit.

We hope you have an enjoyable and productive meeting in Orlando.

Charles Morris Acting President

Message to PCA Members


PCA MISSION, VISION & VALUES

The PCA is:

▪ Recognized as the global leader representing, supporting and advocating for the values of pine chemicals as bio-renewable and sustainable products.

▪ A leading monitor of regulatory and legislative issues impacting the global pine chemical industry taking action independently or in collaboration with other associations or groups to address critical issues.

▪ The global resource for developing and maintaining industry standards.

▪ The recognized resource for information and education related to the pine chemicals industry.

▪ Recognized for its culture of ethics and adherence to anti-trust compliance.


Membership and Information Committee

The objective of the Membership and Information Committee is to create, communicate and ensure the value proposition of PCA membership to all stakeholders. The Committee assures that members have: access to regulatory, legislative and key business developments; access to best practices; education and training for their staff; and can network effectively with colleagues. The Committee works closely with other PCA committees to identify valuable programs, services and activities. Currently, PCA membership is comprised of 82 paid members. The Committee established a goal of reaching 125 members within three years. Additional goals for 2017 include: ▪ Ensure access to information on key legislative,

regulatory, legal, scientific and other international topics.

▪ Develop, refine and communicate a clear value proposition of membership to its current and potential members.

▪ Create forums and collaborations with related

associations and industry thought leaders.

The PCA represents the pine chemicals industry around the globe and provides the

best opportunities for networking with

organizations and individuals involved in the

full life cycle of pine chemicals.

Membership PCA membership:

In recognition of the global scope of the PCA, the Board of Directors and Membership elected to change the name of the Association to:

Pine Chemicals Association

International

46 47

60

7381 85

78 82

0

20

40

60

80

100

44 18

11

2 6

Producer

User

Associate

Fractionator

19Forestry Products

End User

Associated Member

Processor (Fractionator)

20

Members by Type

15

36 11

Members by Region

1


ETHICAL PRINCIPLES OF THE

PINE CHEMICALS ASSOCIATION The following statement of ethical principles is established for the purpose of guiding the conduct of all PCA members and supporting the PCA’s commitment to fairness in business relationships. Membership in the PCA constitutes a commitment by each member to use its best efforts:

▪ To support the purposes of the PCA as set forth in its Mission and Vision Statements.

▪ To observe the highest level of integrity when acting on behalf of the PCA, representing the best interests of the association over individual interests.

▪ To respect and comply with applicable local laws and regulations where such member organization operates (as well as international treaties and agreements to which the country of operation is a signatory).

▪ To maintain and enhance the safety and well-being of workers.

▪ To encourage environmental stewardship and sustainable forestry practices.

▪ To comply with applicable antitrust and competition laws at all PCA-related meetings and events, refraining from any discussions of competitively sensitive topics, including but not limited to, local, regional or international prices or pricing strategies.

Adopted by PCA Board of Directors, April 2016


PCA International Meetings are among the largest gatherings for the pine chemicals sector, focused exclusively on developments, issues and opportunities in pine chemicals. Reflecting the global nature of the industry, the 2016 meeting was held in Santiago, Chile with over 220 attendees. In 2017, the PCA International Conference will be held at Le Westin Hotel in Montreal,

Canada, on 17-19 September 2017.

In 2018, the Annual Spring Meeting will be held at Westin Savannah Harbor Golf Resort and Spa in Savannah, GA, on 18-20 April 2018.

PCA International Meetings bring together the global pine chemicals industry for a unique opportunity to address current

issues, learn and network with colleagues.


Recovery Committee: Focuses on educating members on safe handling, recovery and

processing of by-products (co-products) from the pulp and paper industry, specifically black liquor soap, crude sulfate turpentine and crude tall oil. The Committee accomplishes its work through papers on best practices, short courses on soap and turpentine recovery, as well as, crude tall oil processing to educate those specializing in the recovery and processing of these materials from the pulp and paper industry. In 2015-2016 the Committee released best practice articles on the PCA website and held two acclaimed training Courses on Soap & Turpentine Recovery and Crude Tall Oil Processing attended by nearly 130 total participants.

PCA Committees offer members an opportunity to engage in issues critical to the pine chemicals

industry.

Gum Rosin Committee: During the last four years, the Gum Rosin Committee shifted its

original work plan as a task group working on gum rosin specifics (physic-chemical specifications, markets, production) into an advocacy forum. This shift included annual Gum Rosin focused presentations at PCA meetings and participation in other pine chemicals events. This has helped to offer greater visibility to the issues and opportunities in this aspect of pine chemicals. The Committee’s efforts were most apparent in the Oleoresin Symposium held in Lisbon in February 2016. Beyond its education functions, this symposium brought together the global players of the sector, offering a baseline of gum rosin today which should help organize the Committee mission and objectives. The Committee will continue to refine its mission and objectives and its function to drive knowledge and innovation through its activities in Orlando and Montreal, as well as, planning for a future Oleoresin Symposium.

Advocacy Committee: The past year has seen the development of communications and

tools to aid in the efforts to support the Pine Chemical industry. The industry is a prime example of the sustainable use of natural raw materials for the good of society. PCA has taken a back seat during the year to the efforts organized around Crude Tall Oil, as this has been lead at ACC and CEFIC. Legislation in the USA has been slowed around the RFS, though the approved pathways for RFS are routinely monitored for changes. In the EU, the Renewable Energy Directive is in the process of reauthorization for 2020 to 2030. CEFIC is taking an active role here. CEFIC has indeed improved in their operations and is a valuable partner in the efforts.

Addressing Sustainability as an industry is a long-term goal of the group. The Pine Chemical industry is in a unique position to share the story about the use of renewable materials. The industry can ensure a long life by employing sustainable practices in all areas – from growth of the trees, to the safety of employees, to care of the environment.

Two particular opportunities are for the PCA to join as an industrial association around the globe in Sustainable Material certification consortiums and to actively participate in the efforts by ASTM, UL, and others to create a registration for bio based materials. Many in the bio fuels industry have joined these efforts and are driving the criteria, sometimes to the detriment of the bio chemical industry.


Product Regulatory and Stewardship Committee & Advocacy Committee: Addressing key issues shaping the regulatory, legislative and business environment affecting pine chemicals around the globe this committee is addressing concerns vital to PCA members. Key areas of focus for the committee include: US: Continue to support TSCA reauthorization, as a member of the American Alliance for Innovation (AAI). After six years of efforts, the committee was successful in passing the Lautenberg Chemical Safety Act in the Summer of 2016. This update to TSCA will significantly change the way the chemical industry places new and existing chemicals into US Commerce. Additionally, they are involved in the rule-making phase; resetting TSCA inventory and new product approval risk assessment are high priorities and the PCA has submitted comments for improvement, both as a separate organization and in conjunction with AAI. CALIFORNIA: Despite efforts by PCA and its legal representatives to influence California and Environment Canada, removal of hydrogenated rosin derivatives from the Candidate Chemicals List has been unsuccessful. Canada cannot change their PBiT list, although their risk assessment showed that there were no concerns; California will not remove the derivatives from their list until Canada does so. EUROPE: Work continued with HARRPA and CEFIC to support the efforts to remove the subsidies to convert CTO to diesel fuel. Scientific and economic studies were completed by PCA and other groups; however, the industry was unsuccessful convincing the European Commission to change. The CoRAP program in Finland, which could result in rosin esters being restricted as Authorized Substances, was carefully monitored by the PCA. CANADA: Work with Environment Canada and Health Canada, as a member of the Industry Coordinating Group, to provide data, reports and guidance to support the risk assessments on pine chemicals is underway as part of the final Phase 3 of the Chemicals Management Plan. Canadian risk assessments will likely be one basis for the US risk assessments. The PCA was successful in having all pine chemicals-derived polymers screened out of risk assessment. OTHER: PCA sponsored two consultants to complete a monograph on the status of skin sensitization of rosin and its derivatives. One of the authors presented a portion of the work at a significant conference. The aim is to slow restrictive regulations on the uses of rosin. The PCA continues to stay abreast of the developing issue of classifying tall oil fatty acid as a skin sensitizer in Europe that would have significant ramifications for the industry. In the year ahead, PCA will continue to address these regulatory issues and monitor global regulations for impact on pine chemicals, related materials and the industry, collaborating

with other organizations to leverage our resources and advocate accordingly.


Environmental, Health and Safety Committee: Provides PCA

Member Companies with real-time information and proven strategies for opportunities to gain and sustain competitive advantages through a proven source - investment in safety, health, and environmental management systems. The experience and knowledge among the committee members is a resource to provide tools to assist member companies in preventing adverse events. Quite simply, the EHS Committee strives to allow Member Companies to better protect their triple bottom line – people, planet, profit. The committee works continuously to identify operational better practices and lessons learned from regularly scheduled PCA Member discussions for identifying risks, reducing those risks and advancing incident prevention programs at Member Facilities. To address this important role, in 2016-2017 the Committee: ▪ Oversees and administers the EHS Awards Program recognizing

facilities, employees and leaders for their continuous improvement efforts.

▪ Creates a Best (Better) Practice Document Program, publishing information on the PCA website.

▪ Provides a forum for members to share knowledge related to new EHS rules and regulations at committee meetings and information exchanges.

▪ Defines and collects pertinent EHS data from member companies and disseminates for comparative purposes.

Robust Safety, Health, and Environmental management is vital to pine chemical companies and the Committee is actively requesting member companies to engage with and provide personnel as appropriate, and utilize the Committee.

Testing Committee: Responsible for maintaining and updating

PCA, ASTM and ISO standard test methods related to the pine chemicals industry; developing new and improved methods; and harmonizing methods when possible. Efforts this year included:

ASTM D01.34 Test Methods-five methods were reviewed and approved for renewal in 2016 with seven to be considered in 2017. Method development focused on measurement of color in rosin in solution, as current methods apply only to solid rosin. A round robin is planned, with laboratory work to begin in early 2017.

ISO TC35/SC10/WG5- efforts concentrated on a widely-used method for measuring softening point of resins by the Mettler cup and ball methods and comparing different methods used in the US and Europe. Precision data is currently being calculated.

PCA Test Methods- specific for the industry are under review, to be completed in 2017. The scope of the original PCA publication was broadened to include some turpentine test methods in addition to tall oil related methods.


The PCA safety awards recognize excellence in

protecting the environment and

employees

Proactive steps toward protecting the environment and employees is important to pine chemicals companies and to the identity of this sustainable, bio-based sector. The PCA promotes a safety culture among member organizations and recognizes people and facilities demonstrating excellence in safety. The PCA is pleased to recognize this year’s Safety Excellence Awardees:

Leadership Recognizing a CEO or facility manager whose commitment and leadership foster Environmental, Health and Safety excellence in the workplace

Steve Violette, Plasmine Technology, Pensacola, Florida

Employee Recognizing an employee whose contributions and commitment foster Environmental, Health and Safety excellence in the workplace

Greg Clements, Symrise, Jacksonville, Florida and Eric Olivier, Ingevity, Charleston, South Carolina

Facility Recognizing a plant or facility demonstrating environmental, health and safety excellence among their management and employees, who implemented new programs to protect the environment and/or identify and control workplace hazards

. Lawter, Inc., Baxley Facility, Baxley, Georgia

Safety Excellence

Awards


Welcome Remarks PCA Today and in the Year Ahead

▪ Membership: Opportunities for Growth

▪ Creating Greater Value for Members

▪ Building Awareness of Pine Chemicals Globally Finances: 2016 Update Nominating Committee Report/Election of Officers & Directors Other Business Closing Remarks Adjourn

2017 PCA Business Meeting

Building the Pine Chemicals Industry & PCA


2016 Unaudited Financial Summary

Pine Chemicals Association International

Statement of Cash Flows As of December 31, 2016

2016 2015 $ Change

ASSETS

Current Assets

Total Cash and Cash Equivalents 453,439 502,589 -49,150

Accounts Receivable 143,162 159,009 -15,847

Other Current Assets

Prepaid Expenses 9,339 106,237 -96,899

Undeposited Funds 0 2,685 -2,685

Total Current Assets 605,939 770,520 -164,580

Total Fixed Assets 4,323 4,323 0

TOTAL ASSETS 610,262 774,843 -164,580

LIABILITIES & EQUITY

Current Liabilities

Accounts Payable & Other 2,614 6,527 -3,913

Credit Cards 8,649 0 8,649

Course Registrations 0 22,375 -22,375

Deferred Dues 233,806 231,084 2,722

Total Liabilities 245,070 259,986 -14,916

Equity

Fund Balance 511,937 548,001 -36,064

Net Surplus (Loss) -146,745 -36,064 -110,680

Total Equity 365,192 511,937 -146,745

TOTAL LIABILITIES & EQUITY 610,262 771,923 -161,661


2016 Unaudited Financial Summary

Pine Chemicals Association International

Statement of Activities 2016 Actual vs. 2015 Actual

2016 2015 $ Change

Ordinary Revenue/Expense

Revenue

Meeting Revenue 499,855 424,445 75,410

Membership Dues 267,778 281,774 -13,996

Books & Video Sales 3,285 5,095 -1,810

Shipping and Handling 430 730 -301

Special Projects & Assessments

EU CTO Industry Analysis 61,903 26,132 35,771

ASTM 0 -1,400 1,400

Hydrogenated Rosin 0 38,441 -38,441

Total Special Projects & Assessments 61,903 63,173 -1,270

HPV Project Revenue 0 2,263 -2,263

Total Revenue 833,250 777,479 55,771

Expense

Operating Expense 494,956 443,102 51,853

Conference & Meeting Expense 328,120 306,975 21,145

EU CTO Analysis 61,903 26,132 35,771

Global Economic Study 49,404 0 49,404

Communications Strategy Expense 41,500 37,835 3,665

Brand Development 4,113 0 4,113

Total Expense 979,995 814,044 165,951

Net Other Revenue/Expense 0 500 -500

Net Surplus (Loss) -146,745 -36,064 -110,680


Nominating Committee Report:

Proposed 2016/2017 Officers & Directors

Chairman Mike Roberts Vice President, Pine, Mining & Oil Field Chemicals Georgia Pacific Chemicals, LLC Vice Chairman Greg Adams Category Manager International Flavors and Fragrances Directors: Peter Acton COO Arboris, LLC Alejandro Cunningham Director AR El Dorado Lee Godina President Resinall Corporation Keely Goodwin Business Unit Manager Eastman Chemical Company Hunter Harris Director- Operations Support Ingevity Dale Hobson VP Strategic Materials & Business Development Symrise

Vice President- Pine,

Mikio Katayama Director Global Business Development Lawter, Inc. Dave Keselica President & CEO ArrMaz Greg McLean Director Global Strategic Raw Materials Arizona Chemical, a Kraton Company Corey Schneider President DRT America Steve Violette President Plasmine Technology

President Sherry Keramidas, PhD, FASAE, CAE Pine Chemicals Association Secretary/Treasurer Amanda Young Pine Chemicals Association

Member Companies

A V Pound & Co Ltd Ireland Mercer International Inc. Canada

Ambar Florestal Ltda Brazil Meridian Chemicals United States

AR Eldorado LTDA Brazil Mobile Rosin Oil Company Inc United States

Arakawa Chemical (USA) Inc. United States Montigny Investments Swaziland

Arboris LLC United States Neste Jacobs Oy Finland

Arizona Chemical, a Kraton Company United States Neste Oil Oyj Finland

ArrMaz United States New Tech Chemicals India

Callisons, Inc. United States Nopek Oy Finland

ChemTreat United States ORGKHIM BCH Management Company, JSC Russia

Claremont Chemical Co LTD England P T Milatronika Karya Niaga Indonesia

Domtar Paper United States Petrofer AG Switzerland

DRT France Pine Chemicals Recovery Assistance, Inc. United States

Dutch Mountain Trading Netherlands Pinus Brasil Agro Florestal Ltda Brasil

East South Inc United States Plasmine Technology Inc United States

Eastman Chemical Company United States Privi Organics Limited India

Edward L. Healy LLC United States PT Kharisma Satya Jaya Indonesia

Environmental Packaging Technologies United States PT. Ispak Indonesia

Euro-Yser S.A. Portugal Quad Graphic CR/T (Chemical Research Technology)

United States

Evergreen Packaging United States Resinall Corp United States

FGN Global Logistics Inc United States RESINEVES AGROFLORESTAL LTDA Brazil

Florachem Corporation United States Rosin Plus Consulting Services, LLC United States

Forchem Finland Scion New Zealand

Fram Renewable Fuels L.L.C. United States Sea-Land Chemical Company United States

Fujian Green Pine Co.,Ltd China Shiba & Co (NZ) Ltd New Zealand

G. C. Rutteman & Co. BV Holland Socer Brasil Ind e Com LTDA Brazil

Georgia-Pacific Chemicals LLC United States SPI Marine (Houston) Inc United States

Green Pine Industries India Star PineChemical CO., Ltd China

Grupo AS Resinas Brazil Stora Enso Oyj Finland

Harima MID Inc Japan Sun Chemical Corporation United States

Industria Resinera Bahr, S.A. Honduras SunPine AB Sweden

Ingevity United States Symrise Group United States

International Flavors & Fragrances Inc United States T&R Chemicals Inc United States

International Paper United States Teckrez, Inc. United States

James Russell United States TER GROUP Germany

Kemi - Pine Rosins Portugal, SA Portugal United Resins- Producao de Resinas SA Portugal

Kemira Chemie GesmbH Austria University of Florida, School of Forestry Res. & Conservation

United States

Langley Smith & Company Limited United Kingdom

VGS Ltd China

Lawson Consulting United States Vistaurum Corporation United States

Lawter Inc United States Vopak Americas United States

Legacy Chemical Corporation United States WestRock United States

McAllister Consulting, LLC United States Xiamen Doingcom Chemical Co., Ltd. China

annual report · 2018-03-31 · pca annual report 2016-2017 2 association to pursue other...

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