essential chemicals for daily life … chemicals for daily life applications. 1 ... from...

ESSENTIAL CHEMICALS FOR DAILY LIFE APPLICATIONS

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« With 14 facilities and 1,600 employees worldwide, Novacap is more than ever a global company, among the top three players in each of our major markets. We offer a wide range of high performance products to our customers in response to their increasing challenges.

Our ambition is clear and objective: providing them with innovative, efficient and sustainable solutions thanks to our specific know-how and state-of-the art technology.

Our growth strategy is based on organic development through investments and operating excellent initiatives as well as targeted acquisitions or solid partnerships worldwide with companies whose technologies or products can create new opportunities.

In the past five years, we have significantly expanded our international footprint especially through acquisitions in China and Germany.

The last acquisition, in June 2015, of the German midsize company Uetikon is a good example of our strategy to reinforce our position in the pharmaceuticals and health market. Uetikon’s core competences are the custom synthesis of fine chemicals and the manufacture of pharmaceutical substances that complete our offer and therefore open doors for further product development.

Being more and more a key player in the pharmaceuticals and cosmetics market, we will continue in the coming years to commit capital and operating expenditures in all our pharmaceutical facilities and processes in order to comply with increasing cGMP (Good Manufacturing Practices) requirements on quality and compliance and to achieve the highest standards in the industry.

Sustainability is of course at the heart of our vision and we aim to be a reference in this field among our industry in the way we manufacture, do business and manage people, and by the product portfolio we offer to our customers.

I want to thank our employees for their strong commitment and their mobilization around a common culture of responsibility and performance, in the long run and at all levels in order to achieve the group’s ambition. »

PIERRE LUZEAUNOvACAP CEO

« As a global and responsible chemicals leader, we want Novacap to be a source of progress and competitiveness for its customers with a high quality and reliable offer. »

CHAIRMAN’S COMMENT

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PHARMACEUTICAL & COSMETICS

N°1 worldwide aspirin & salicylic acid

N°2 worldwide para-aminophenol

MINERAL SPECIALTIES

N°2 European sodium bicarbonate

N°3 European soda ash

PERFORMANCE CHEMICALS

Major player in Southern Europe hydrochloric acid, ferric chloride and

other derivates

N°3 European phenol & oxygenated solvents

3 BUSINESSDIvISIONS

(Novacyl, Yangzi, Jiangsu Puyuan, Uetikon)

(Novacarb, Novabion, Novacogé)

(Novapex, Novacid)

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Novacap produces and distributes essential chemicals used in everyday products and enjoys leading positions in its target end markets: pharmaceuticals & healthcare, cosmetics and fragrances, food and feed, home care and environment.

c. 1,600 PEOPLE

14 INDUSTrIaL PLaNTS

633.9 MILLION

2015 proforma net revenue

A gLObAL CHEMICALS PLAYER

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A global supplier of active pharmaceutical ingredients (APIs), the worldwide leader in salicylic acid, methyl salicylate and aspirin

With a global network composed of seven manufacturing plants, the Pharmaceutical & Cosmetics business division produces and sells aspirin, paracetamol (acetaminophen), salicylic acid, para-aminophenol and ketamine, on a worldwide basis. These products are sold mainly to the pharmaceuticals, cosmetics and healthcare markets. The division also produces esters like methyl salicylate, octyl salicylate and homosalate mainly used in cosmetics as Uv filters and in fragrances industries.

Benefiting from modern technologies, we are fully vertically integrated from phenol to salicylic acid to aspirin, as well as from salicylic acid to methyl salicylate and octyl salicylate, and from para-aminophenol to paracetamol. This backward integration ensures greater security and reliability of the supply of the key raw materials.

as part of our quality governance, we have defined a global policy applicable to all our sites.Our facilities are certified CGMP, FDa, CEP, ISO 9001, ISO 14001, HaCCP, and EMa inspected.

Building a comprehensive offer of pharmaceuticals & cosmetics products and services

Leveraging on highly competitive assets, continuous improvement of our quality systems and innovation

PHarMaCEUTICaL & COSMETICS

acetylsalicylic acid (aspirin)

Salicylic acid

PaP/ aPaP (Paracetamol)

allyl alcohol

Methyl salicylate

Octyl salicylate & Homosalate

aPIs and Fine Chemicals

DIvISIONS & MAIN PRODUCTS

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From salicylic acid to acetylsalicylic acid (aspirin) and esters: a unique technology

Para-aminophenol is the main raw material required for production of paracetamol. We source the largest part of the para-aminophenol we use from our Yangzi production facility in TaiXing. Paracetamol, known in the United States as acetaminophen, is a widely used medication for minor pain and fever relief and is a major ingredient in numerous cold and flu remedies. Paracetamol can also be used in combination with other drugs to manage more severe pain such as post-surgical pain and to provide palliative care in advanced cancer patients.

From para-aminophenol to paracetamol

Salicylic acid is a key ingredient in products that serve pharmaceuticals & healthcare, personal care, flavor & fragrances end markets. It is produced from phenol and used as a key raw material in the production of aspirin mainly used for mild pain relief and cardiovascular disease prevention. Numerous studies have recently shown that aspirin can also be used in the prevention of certain types of cancer, as well as in the prevention of neurodegenerative diseases, such as alzheimer’s and Parkinson’s.Salicylic acid is also an ingredient for esters such as methyl salicylate, octyl salicylate or homosalate that are used by sun care manufacturers for beach wear and daily wear segments.With a unique paraben-free and odorless range, Pharmaceutical and Cosmetics asserts its distinctive offer in the cosmetics.


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A leading European player in soda ash and sodium bicarbonate products, specialized in high quality grades

With four plants located in Eastern France, we are manufacturer of sodium carbonate, sodium bicarbonate and sodium silicate. These mineral products are essential ingredients intended primarily for the food and feed markets (including container glass for beverages), as well as the environmental protection, pharmaceuticals and cosmetics, healthcare, detergents and construction markets. recent investments in France have positioned Novacap as a leading player in the highest value added end markets such as sodium bicarbonate for hemodialysis. Our ambition is to rapidly roll out our model internationally, especially in asia where a new stand-alone production unit based in Singapour will efficiently serve the fast growing regional demand on premium segments starting the second quarter 2017.

Our backward integration into captive raw materials (limestone and salt) and our competitive access to diversified energy sources (coal and gas) enable us to master the entire production chain, to ensure full traceability and to offer the best guarantee quality to our customers.

Our facilities are certified ISO 9001, ISO 14001, OHSaS 18001, GMP Feed and Excipact.

Leveraging on our high sodium bicarbonate technology and know-how to expand in Asia

Competitive positioning through vertical integration

MINEraL SPECIaLTIES

Soda ash

Sodium bicarbonate

Sodium sulphate

Sodium silicate


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Sodium silicate is a product derived from soda ash.Its main markets are precipitated silica (green tires), soil consolidation, glues and adhesives, paper de-inking, mineral paints and detergents. We manufacture three commercial grades: cullet, liquid and granulated silicates known as Nabion. Nabion acts as a sequestering agent (capturing magnesium and calcium) used in the formulation of powders or tablets for washing machines and dishwashers.

Sodium silicate is used for green tires

Sodium bicarbonate, a wide variety of uses

Sodium bicarbonate, referred to as «baking soda», is primarily used in baking as a leavening agent but has a wide variety of uses thanks to its multiple properties: mild disinfectant, neutralisation of acids and bases, deodorant, cleaning agent or pH balancer.

Sodium bicarbonate is used in hemodialysis treatment.The extracorporeal hemodialysis is an exchange system between the patient’s plasma and the dialysis bath. This is done by diffusion through a semipermeable membrane that enables exchanges between the blood and the dialysis fluid (dialysate). The dialysate is prepared by a generator, throughout the dialysis session, from a pure water mixed in very precise proportions with solutions concentrated in ions and sodium bicarbonate used as buffer.Demographic changes and developing economies contribute to significantly increase the number of patients who need a hemodialysis treatment.


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Oxygenated solvents (isopropanol, isopropyl acetate, acetone)

Specialty products(alpha-methylstyrene, acetophenone)

Hydrochloric acid

Ferric chloride (through Jv)

Calcium chloride

Thanks to the launch of a new unit for the production of isopropyl acetate (IPaC) in December 2015, the division has reached a new milestone in widening its product offer of oxygenated solvents and expanding its range of high quality specialty products. Produced through an innovative reactive distillation, isopropyl acetate strengthens the division’s position in key markets such as pharmaceuticals, cosmetics and perfumery as well as food industry. The division has also started several projects to increase the production of its phenol specialty products (alpha-methylstyrene and acetophenone) and a new premium oxygenated solvent is scheduled to start in 2017.

Accelerating our downstream development strategy in high value specialty products

For many years, our Performance Chemicals business division has been offering high quality products and services to its customers. Our high service approach also applies to our supply chain, where we provide dedicated trucks and rail cars, multi-tanks to serve smaller quantities at selected customers and rapid delivery to our core sales area.

Our installations are certified ISO 9001, ISO 14001, ISO 50001, OHSaS 18001, HaCCP.

Leveraging on our cost leadership and continuous improvement

PErFOrMaNCE CHEMICaLS

A leading European organic chemicals producer, A range of specialty products for the most demanding markets

Phenol


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Ferric chloride is used primarily in waste water treatment as a coagulant that facilitates the removal of suspended materials from water. Ferric chloride is produced from ferrous salt and hydrochloric acid. The increase in population leads to an increase in the consumption of drinking water with all the induced effects of resource availability and quality. Compliance with European standards on the quality of water discharged into rivers requires the deployment of new processing units or upgrading of existing facilities. In 2011, Novacap and Feralco, a Swedish specialist in products for the treatment of water, entered in a joint venture to produce ferric chloride in France to support the growth of the European market of coagulants for water.

Ferric chloride, a treatment for waste water

Novacap oxygenated solvents are acetone derivates widely used in many applications such as cosmetics, aromas and fragrances, agrochemicals, cleaning products, paints and coatings.They can be used for chemical synthesis or as diluents, coupling agents or other functional additives in various types of formulations.They are valued for their high solvent power and their low toxicity. Isopropanol (IPa) has thus a wide range of uses in easily recognizable every-day life applications: detergents and many household products, pharmaceuticals, food ingredients, hand sanitizers, inks and coatings, and wind screen washing fluids.

Oxygenated solvents, adding value to acetone


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The Group develops a wide range of products for use in the pharmaceuticals and healthcare market: aspirin, paracetamol (painkillers), sodium bicarbonate (neutralisation of gastric acidity, dialysis, excipients, toothpaste) and some active pharmaceutical ingredients (ketamine, methimazole, sodium phenyl butyrate) used in many pathologies.

PhArmACEutICALS & hEALthCArE

5 HIgHLY DEMANDINg END MARkETS

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Novacap supplies the cosmetics and fragrances market with esters including homosalate, octyl and methyl salicylates. These are sweet-smelling products used in sunscreen and cosmetics to absorb the sun’s ultraviolet rays. They are also used in medicated skin balms.Sodium bicarbonate properties are also used in cosmetics.

COSmEtICS & FrAgrAnCES


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Sodium bicarbonate is a basic raising ingredient for breads and cakes. Salicylic acid is used as an additive and preservative in the food industry.Calcium chloride has similar uses in cheese and other dairy products. Methyl salicylate is used in ester form as a flavouring for food and drinks. Hydrochloric acid is used to produce gelatine, food starch and food additives. Soda ash is part of the manufacturing process for glass food containers (bottles and jars).

FOOd And FEEd


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Our solutions help protect the environment in daily life and in industry.Sodium bicarbonate is used to treat acid emissions from incinerators. Ferric chloride has uses in waste water treatment while calcium chloride is used for defrosting devices and de-icing roads.

EnvIrOnmEntAL SErvICES


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Sodium bicarbonate, sodium silicate, soda ash and sodium sulphate are used in washing powders and tablets for dishwashers and washing machines.

hOmE CArE


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Phenol is the raw material used to manufacture polycarbonate for a range of sectors including the electronics, construction and automotive industries. It can replace glass in applications like mobile phone cases, car headlights or glass panels in buildings. Sheet glass using soda ash is also used in building, for windows, doors, furniture, mirrors, in photovoltaic cells and in the automotive industry. Soda ash is also a raw material for sodium silicate which goes to make the silica used in “green” tyres.

Novacap sells chemical agents and intermediaries to several industries for use in a range of industrial applications, many of which serve our resilient target end markets.

SPECIALIZED MARkETS

COnStruCtIOn And AutOmOtIvE

ChEmICAL IntErmEdIArIES

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2003

2004

2006

2008

2010

Creation of the Novacap group, Bain Capital is the majority shareholder

Start-up of a new sodium bicarbonate unit (Mineral Specialties)

Start-up of the calcium chloride unit (Performance Chemicals)

Start-up of the second sodium bicarbonate unit (Mineral Specialties)

Start-up of the Isopropanol unit (Performance Chemicals)

While demographic trends, middle class expansion in emerging markets, worldwide beauty and well-being trends, evolving regulatory environments, ‘‘green economy’’ and regional water shortages are strongly impacting consumption patterns, our ambition is to keep reinforcing our world business of essential chemicals with 3 key pillars:

• Develop further in resilient, high value and fast growing target end markets;

• Increase geographical footprint;

• Further diversify the business mix and product portfolio through downstream development (acquisitions or manufacture of new products) and innovation.

Over time, novacap has demonstrated its ability to continuously foster growth by increasing capacities, expanding geographically and promoting innovation.

A FAST gROwINg INNOvATIvE CHEMICALS LEADER

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2011

2014

2015

2012

2013

ardian becomes the majority shareholder of Novacap Start-up of the third sodium bicarbonate unit(Mineral Specialties) acquisition of Novacyl (Pharmaceutical & Cosmetics) Start-up of a new ferric chloride production unit in France in joint venture with Feralco (Performance Chemicals)

Capacity expansion on alpha-methylstyrene (Performance Chemicals)

acquisition of a controlling stake in TaiXing Yangzi Pharmaceutical Chemical in China (Pharmaceutical & Cosmetics)

acquisition of Uetikon (Pharmaceutical & Cosmetics), a German aPIs and Fine Chemicals manufacturer

Start-up of the isopropyl acetate (IPaC) unit (Performance Chemicals)

acquisition of a majority controlling stake in Jiangsu Puyuan (Pharmaceutical & Cosmetics)

A FAST gROwINg INNOvATIvE CHEMICALS LEADER

Eurazeo becomes the majority shareholder along with Merieux Developpement and ardian

2016

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Focus on uetikon

acquired in June 2015, Uetikon provides a full service package to its customers in pharmaceuticals and health markets with a seamless transition from kilo-lab to large scale production. as a trusted European supplier, Uetikon also offers r&D and Quality support to its customers during the entire development of new pharmaceutical molecules. Uetikon has a successful track record in developing not only aPIs but also pharmaceutical intermediates. The team consists of highly qualified and fully committed employees with a long track record for the company.With a best-in class multi-purpose production facility built to the highest standard, Uetikon has become the partner of the largest pharmaceutical companies.

2015 ACHIEvEMENTS

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close-up on AlgAnelle: microAlgAe As cell FActories

In December 2015, Novacap signed its first partnership agreement with the biotechnology start-up alganelle.alganelle is specialised in the development and production of high added-value molecules from microalgae that meet the quality and safety requirements of the cosmetics, pharmaceuticals and biomedical industries.This partnership is an exciting first step and evidence of our dedication to opening up our portfolio to bio-sourced ingredients.

close-up on JiAngsu puyuAn

In February 2015, the Pharmaceutical & Cosmetics division increased its salicylates leadership position with a majority stake in Jiangsu Puyuan, a Chinese manufacturer of salicylic acid and methyl salicylate, allowing the Group to reinforce its leadership positions in these markets.

close-up on yAngzi

In November 2015, Novacap increased its majority shareholding in Chinese company Taixing Yangzi located in the Taixing Economic Development Zone, Shanghai. Taixing is one of the leading Chinese producers of para-aminophenol (“PaP”), a chemical intermediate mainly used for the production of paracetamol. Yangzi’s technology from iron reduction to catalytic hydrogenation and its products are widely recognized in the pharmaceuticals industry as the benchmark in terms of quality and purity.

2015 ACHIEvEMENTS

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Innovation is central in our growth strategy

Our r&D projects aim at developing new products, designing or improving production processes or to exploring new market applications. We ensure that the principles of “Green Chemistry” are applied at each stage of the products and process development, resulting in safer production processes, lower energy consumption and reduced carbon footprint.

The YOS E brand (octyl salicylate) produced by the Pharmaceutical & Cosmetics division was voted one of the best Uv-B filters for its specific properties at the "In Cosmetics asia" exhibition that took place in November 2015 in Bangkok.

The Novafeed Sa grade is a new flavored sodium bicarbonate produced by the Mineral Specialties division, mainly used in cow feed. It is produced under a patented process from ammoniacal bicarbonate with only one step of carbonation. Due to its specific ammonia odor, this grade is mainly dedicated to a use in mineral premix.

Isopropyl acetate (IPAC) has enriched the range of high quality oxygenated solvents produced by the Performance Chemicals division and used in a number of demanding pharmaceutical, perfume and food industry applications. IPaC is produced using a reactive distillation process, an innovative concept combining both process intensification and energy and environmental efficiency, in line with Novacap’s sustainable development policy.This is a symbolic and encouraging achievement which puts Novacap in an excellent position for the development of new “factories of the future”: optimized, clean and intelligent factories.

YOS E, the first truly paraben-free uv-B filter

novafeed SA, a new flavored sodium bicarbonate

Innovative Processeshigh quality innovative products

INNOvATION

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With continuous and sustainable improvement of key performance metrics, our operational excellence programs cover the organization of production through process optimization, supply chain management, innovation, quality, reliability and safety of products.

We offer our customers the best service thanks to responsive and reliable teams and a very high level of compliance and certification (ISO 9001, ISO 50001, ISO 14001, OHSaS 18001, HaCCP, GMP, etc.).

OPERATIONAL ExCELLENCE

Operational excellence is an on-going challenge, so we look with fresh eyes at every step of our processes

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Sustainable development is a top priority rooted in our corporate culture.

SUSTAINAbLE DEvELOPMENT

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• Integrate environmental protection in our everyday tasks;

• Continue to reduce the environmental footprint of our activities;

• Ensure the industrial safety of our plants and a safe transportation of our products;

• Preserve natural resources.

• Guarantee health and occupational safety of our employees and partners;

• Respect labor rights and ensure a social dialogue of high quality;

• Promote and respect the protection of human rights;

• Integrate our plants and businesses into their local communities, earn our partners’ trust regarding compliance of our practices and protect our intangible assets.

• Meet our customers’ expectations with the respect of the highest Quality & regulatory cGMP standards as well as ethical practices;

• Provide our clients with an in-depth knowledge of our products and promote the most environment-friendly ones;

• Promote and protect our sustainable innovations;

• Extract a sustainable and robust value from our activities through operational excellence and costs optimization.

Economic Performance

Social responsibility

Environmental Protection

SUSTAINAbLE DEvELOPMENT

A volontary approach oriented on progress and transparency, a commitment to results

29 avENUE JOaNNES MaSSETLe Carré Joannès CS 1061969258 Lyon Cedex 09

TEL. +33 (0)4 26 99 18 00FaX. +33 (0) 4 26 99 18 38

www.novacap.eu

Written & designed by: Novacap Corporate Communications Direction

May 2016

Photos credits: Novacap/ Shutterstock/ Istock.

This document is printed in France by an Imprim’vert certified printer on PEFC certified paper produced from sustainably managed forest.

essential chemicals for daily life … chemicals for daily life applications. 1 ... from...

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