Flashpoint - Reach: A Regulatory Behemoth


June 1, 2007
47 Pages - SKU: BJDQ1613362
License type:
The acronym REACH stands for Registration, Evaluation, and Authorization of Chemicals and it is the European Union’s new chemicals legislation that was implemented from June 1, 2007. It will lead to a shift of the responsibility for managing the risk posed by chemicals and for ensuring the availability of safety information chemicals from government authorities to each unit of the chemical industry. All substances manufactured and/or imported in volumes greater than one metric ton per year must comply with REACH regulations and must be registered with the European Chemical Agency. The pre-registration stage lasts from June 1, 2008, to December 1, 2008.

A grasp of the new legislation that applies to different products at various stages can be elusive and fulfilling the obligations under REACH is a challenging process. This report can help you to overcome some of these crucial challenges and achieve REACH compliance.

This report shows you how REACH affects you directly regarding:
  • Effects on selected industries (such as paper and metalworking fluids)
  • Products covered
  • Timelines for pre-registration and registration
  • Products of concern
  • Positive and negative ramifications
  • Sources of support
  • Recommendations for industry participants
Through its unified regulations across countries and substances, it is expected to create a level playing field for chemical companies within the EU and impact the competitiveness of the EU chemicals industry, a key sector for Europe's economy.

Large companies and SMEs are likely to be affected in different ways, as well as the product categories affected. The report outlines the benefits and problems that REACH is likely to present and illustrates the effects of REACH with examples from selected industries, such as the cosmetics, paper, specialty surfactants, and lubricants industries.

Small and midsize companies (SMEs) will be more affected than large companies for several reasons. The cost of registration per unit of product is higher due to the smaller volumes produced by SMEs than by large companies, so many SMEs may decide not to register certain substances.

It is expected that REACH will provide an impetus for consolidation in the industry and that companies will reduce their product portfolio.

SMEs should get involved in the registration process as early as possible so that they can take part in the decision-making process. Otherwise, the decisions will be taken by the big companies depending on their requirements.

REACH applies to chemical substances used in preparations that are mixtures or solutions of two or more substances, or chemical substances contained in articles if that substance is likely to be released from the article during the lifetime of the product.

A number of substances will be exempt from the REACH regulation due to low expected risks associated with the chemicals or if another regulatory regime is controlling the substances.

The possibility of entire downstream operations moving out of the EU applies to practically any manufacturing operation using chemicals affected by REACH.

In order to ensure that the REACH processes run smoothly, the ECHA has been established in Helsinki, Finland, as a central entity. It will be fully operational by June 1, 2008. This agency will manage the technical, scientific, and administrative aspects of the REACH system and ensure consistency in the decision making process.

There are several sources of assistance for REACH compliance, from governments in all EU member states and industry associations to consultants.

The primary and secondary research for this report was conducted by Kline consultants and subject matter experts in the U.S. and Europe who are familiar with the latest advances in this field and the markets where they are applicable.

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