More legal news
30 November 2005
Proposed European legislation on chemicals will increase prices, according to experts.
The Registration, Evaluation and Authorisation of Chemicals (REACH) legislation passed its first reading in the European Parliament this month.
The law is forecast to come in next spring, and will require firms making more than a tonne of chemicals to register products on a database, which will record their provenance and toxicity.
A spokeswoman for the Chemical Industries Association said it had seen 15 reports assessing the cost impact. "There are estimates of between £4 billion and £40 billion," she said. "It is expected those in the middle of the supply chain - the manufacturers - will bear the brunt of increases."
Mike Meynell, European purchasing manager at INEOS Chlor, which buys up to £80 million of raw materials a year, said buyers should safeguard their supply by checking their vendors know they have to register.