NovaNews - Novadan newsletter

NOVA NEWS:

In this edition of NovaNews, the energy prices and inflation, in generel are topics which we focus on

Furthermore, we have been on several exhibitions since last edition of NovaNews - check out how this has been.

And then we have got several new colleagues in Novadan - they have written a few lines about themsel ves.

And... last but not least - we wish you all a great Christmas - see you in 2023!

The energy crisis changes the order of the factors

As everybody knows, energy and chemical prices have increased significantly during the past 10 months. A fact which in many cases changes the cleaning costs.

Chemical costs have certainly increased a lot but energy costs have increased even more in some cases... We know for a fact that many companies budget with electricity and gasoline costs 4-5 as high in 2023 that 2022. Therefore, any possible reduced energy consumption has huge impact on costs.

If you have any ”stories/expe riences with Novadan products” from your country that could be of interest to our other partners/ distributors, please share it with us by emailing details (and images) to hoy@novadan.dk

Novadan recommends to carry out an analysis of the total cleaning costs in cooperation with your customer (TOC - total cleaning costs) - it should be based on current figures and compared to corresponding data that is one to two years old.

Or if you are anxious to know more about some topics, which you would like us to write about - again please contact hoy@novadan.dk

Then it is possible to calculate the following:

What happens if we lower the temperature with 10 0C and increases the chemical dosage with 0,1 %?

What happens if we lower the temperature and increase the contact time?

Is it possible to save time if we turn up the mechanical effect by buying new nozzles? Savings in this case can be reduced electricity costs as the pumps run for a shorter time.

Check out the calculation for more scenarios and elaborate your own table - similar to the example below. Use Sinner’s Circle – it explains the proportion between the factors in a simple and comprehensible way.

Don’t be afraid to challenge the chemistry from Novadan on low temperatures. No harm is done as long as you remember to compensate on other parameters - cf. the Sinner’s Circle.

by Jens Ole Jensen Sales Manager Food

Novadan has the pleasure to introduce the product: CIP Box LR.

CIP Box LR is a product developed for removing labels on boxes used in the distribution chain.

During several years, rumours has it that Novadan is the best supplier to han dle removal of labels, labels residues and glue from transport boxes. Through the years, we have used the products CIP Alka 60 and CIP Alka 139 for these tasks. The difference between the two products is that CIP Alka 139 most effectively dissolves glue but also develops amounts of foam. The properties as to CIP Alka 60 is less foam development but on the other hand limited properties in case of dissolving glue and label mass.

Our R&D team has now - after three years of development - found a composition with a new and unique surfactant which even improves the solubility of glue while foaming much less than CIP Alka 139. Even though CIP Box LR is slightly more expensive than CIP Alka 60 and CIP Alka 139, it will be the right choice on machines where an antifoaming agent it added to control the washing proces. In this case, noticable savings on the antifoaming proces, at better result, and significant savings on consumption of the antifoaming agent can be recorded.

Do not hesitate to contact us to hear more about CIP Box LR.

PS: .... and if you have not guessed it already, LR stands for Label Removing..... :-)

by Jens Ole Jensen Market Manager Food

Game Additive Oxi - an overlooked product...?

Some of you have heard of this product before, some have even tried it and some have maybe wondered what to use it for....

You can read the following text on our product sheet:

Game Additive Oxi is a cleaning-enhancing additive based on hydrogen peroxide and is defoamed at temperatures above 40°C.

Game Additive Oxi loosens and effectively removes heavy soil including burnt organic deposits. The product is not stable in solutions and should be added as a booster directly to the cleaning solution.

An example could be: After analyzing the conditions in the company, a good product has been chosen in cooperation with the customer, eg. CIP Alka 76. The product works fine, but the customer has developed a high-protein product which is produced 1-2 times/week. During this production process, deposits occur in the form of burned protein during pasteurization! This kind of deposit can be difficult to loosen, and the task is possibly solved by adding a stronger and more expensive product, such as eg. CIP Alka 114.

But wait a bit…

This analysis (test) must be carried out before a change in product in order to test if it is the right solution. Does the customer register maybe two weekly production batches that are peak load, and does the other 30 batches during the rest of the week run without any cleaning challenges? Then a reasonable additive such as Game Additive Oxi will be the right choice. In this case, you get two different cleanings with a few extra costs instead of price increases on all cleanings. A solution with a cleaning addtive is often an overlooked opportunity which is very unfortunate as the potential achievable results are really good.

So please ask us about our experiences and please challenge your curiosity regarding Game Additive Oxi.

Novadan: New website

We have eagerly been waiting to inform you that we have published a new website. And finally it is here! Check it out - click on this link: https://novadan.dk/

So far we have published the website in four languages but more will follow, and we will continue to develop the site with more features and areas of customer interest.

Corporate Social Report

Novadan has published its’ first CSR report - This is an internal- and externalfacing document companies use to communicate Corporate Social Responsibil ity efforts and their impact on the environment and community. At Novadan, we are very conscious about reducing our impact on eg. the environment and climate and it is our plan to continuously develop the report on yearly basis. However, this is our first shot and we hope you find it interesting. Download the Novadan CSR-report

by Annette Høy Marketing Manager

Market update on the raw material situation and expectations for Q1, 23

by Jens Bramsen Sales Director

2022 was subject to price increases in the chemical industry which were high above what we have seen in other parts of the society. A cocktail of different causes created uncertainty in the world simultaneously and has challenged us all with higher prices and an extremely high inflation rate.

Taught by experience from 2022 it is very difficult to predict what to expect and the state of things in 2023. What we see right now varies a lot as some suppliers announce continuously increasing prices and challenges in supply chain in 2023. Others - on the other hand - expect things to normalize in 2023 as the demand has fallen significantly in other sectors. Consequently, it is very difficult to know what to expect and what we expect to happen.

The increasing inflation which impacts all companiesDanish as well as companies in all other countries - has also an effect on the price levels we are about to see in 2023.

At Novadan, we follow the markets for raw materials and their development closely in order to be able to react on the market conditions and also ensure all supplies to our products and customers. After an intense 2022, we hope

that 2023 will bring more stability for all of us. At the same time we would like to thank all our customers for the cooperation in 2022 and for the huge understand ing we have met regarding the development in the market.

So, how does it look right here and right now - and for Q1 2023?

Q4 has been characterized by many extremely high price increases on especially alkaline raw materials. Historically, the increases has been unbelievably high, Explanations on the current situation and causes are many but the most common arguments are:

• Force Majour announcements from several large manu facturers (eg. manufacturers of raw materials, eg. hydro chloric acid, chlorine and sodium hydroxide) which is due to the lack of supply in the markets.

• Several large plants /manufactures are closed due to maintenance.

• Generally high inflation rates (incl. wage increases) in all countries are pressuring the supply chain.

• Q4 has been subject to lower energy costs (gasoline and electricity) than in Q3. However, the prices are still much higher than before. Hopefully, the lower energy prices will - at some point of time - have effect on the products.

• The Ukraine war is still causing unstability and nervous ness in the market in generel, and the supply of raw materials coming from the East to Europe, no longer arrives due to sanctions.

We are about to end the year 2022 which has been the most turbulent year for Novadan ever regarding raw material prices, raw naterial supply and challenges in the supply chain.

Top 50 raw materials (only chemicals)

This curve illustrates the development of our 50 largest raw materials used in Novadan (only chemicals).

As shown we have logged the figures since Q1 2014 and until now.

There is no doubt that - what we have seen during the past 18 months - is an explosion of the raw material prices.

How is the supply situation?

We foresee continuous supply issues on some raw materials (such as complex binders) combined with longer delivery times in Q1 in generel. As it now appears (ultimo november) we see most challenges in these areas:

• Phosphoric acid: Back in stock.

• Sodium hydroxide (NaOH): The product is under extreme price pressure and has increased significantly in Q4. The situation has been marked by decline in production, Force Majeure and closing of plants (maintenance).

• Potassium hydroxide (KOH): High demand for the product and limited access to raw materials has increased the price on the product significantly. The raw materials (KCL) are currently imported from Overseas areas as they cannot be produced in Europe due to sanctions.

• Chlorine: The product has been affected by the high ener gy- and manufacturing costs as well as a reduced PVC-production (due to decline in other industries, eg. the construction industry.) Continued on the next page....

It is only chemical raw material that face price increases?

No, we see continuous increases or higher prices in many areas: - plastic packaging, carton, IBCs, wooden pallets, plastic film, freight, energy costs (Novadan’s own consumption of electricity and gasoline in our production). Add to that the generel inflation in the market which has impact on almost all companies.

When do we expect to see more normal prices again?

We are not capable of setting af specific date for when the situation normalizes. However, as mentioned before, we keep a close look at the market and the development taking place.

We thank you all for your unstanding in 2022 as to continuous price increases. It has been necessary due to the price increases on raw materials.

We sincerely hope and cross all fingers in Novadan to witness more stable prices on raw materials.

Best regards, Novadan ApS

from previous page....

• Acetic acid: The price on Acetic acid is still high, and the amounts which used to come from Eastern countries, are no longer shipped to Europe. Overseas suppliers are challenged on their ability to deliver.

• MSA Acid: As the Phosphoric acid disappeared from the market, the demand for MSA acid has increased notably. It is, how ever, available again but at a markedly higher price than before.

• Nitric acid: Nitric acid has been affected by the high energy prices and monthly energy surcharges are added. The falling energy prices will probably stabilize in Q1 on this raw material.

• Hydrochloric acid (HCL): The product is currently difficult to procure as Force Majeure has been announced on one of the large plants (closed due to accident/breakdown). It is expected the plant will come into operation ultimo Q4, and hopefully increaased amounts in the market will stabilize the prices some time during Q1.

• Complex binders (MGDA): Complex binder – both MGDA and EDTA – are still challenged as to supply and price. Expectedly, this will last until some time in 2023.

The above mentioned raw materials are only a selection of the largest raw materials where we currently facing the most affecting supply challenges.

In generel, the market volatility also has impact on ingredients such as surfactants, silicates, solvents, acids, phosphates, silicone oils.

EUROTIER EXHIBITION

by Hans Erik Nielsen Market Manager

Once again, Novadan had a fantastic interesting EuroTier exhibition in November 2022. We were all excited to see how it would be after an extraordinary long non-voluntary break of four years. Luckily, it turned out that we had nothing to worry about.

We are very happy and grateful for all the visits from all of our existing customers and for all the new interesting leads from new markets that we are following up on right now.

We thank all visitors for the interest for Novadan and for our products/ solutions and we wish everyone a Merry Christmas and a Happy New Year.

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Check a short video on this link: CLICK ON LINK

The heading refers to a theme Day arranged by “The Danish Society of Dairy Technology, Danish Export Association – Food Tech, and Food & Bio Cluster Denmark. Supported by Danish Board of Business Development.

This kind of theme days has developed during the past years. Several interesting presentations from eg. Danish Crown were part of the theme day and in between these presentations were a morning break of 30 minutes and a lunch break of 1½ hour plus a break in the afternoon. During the breaks, attendants could enjoy a buffet and the suppliers had the opportunity to present themselves at a table with a roll-up and brochures/flyers etc.

We have already tested this concept several times and believe it is a good way to meet people from the industry. We were more than 30 exhibitors and we talked to many from the industry on this day. An easy and relatively cheap way to market our company - especially when the topic was Sustainable Food Processing.

WELCOME TO OUR MOST RECENTLY

Kristina Elenius Andersen R&D/Quality- and Registration Manager

Anja og Chrisstine

My name is Kristina Elenius Andersen, and I am 41 years old. I live in Bramming with my husband and our children. We are a big, blended family with six children in total, yours, mine, and ours. I am the mother of four of them.

My background is in the food and pharma industry. Latest I worked 9,5 years at IFF / Dupont as Quality Control Manager and Manufacturing Technology Engineer.

Earlier I worked at Leo Pharma as a Process Chemist and Project Manager, and before my engineering degree I work as a labora tory technician at Novo Nordisk.

Funnily enough, my spare time is mostly spent with children ��, but also friends and other family members. I like a good film or series and am good at delivering recommendations in all catego ries and streaming services.

SARAH URSULA STENNER MORTENSEN Chemical engineer

I am 29 years old and just moved back to my hometown Vejle, where I am close to family. Before starting at Novadan I have worked at Eurofins where I started in a position doing qualitywork in their purchasing department, and later moved into customer service.

In my spare time I enjoy spending time with the family and friends. I also do a bit of yoga and try to fit in a few small cre ative projects. Currently I am learning how to crochet.

I am looking forward to being a part of Novadan and thank you for welcoming me.

by Torben Jensen Key Account Manager

Sustainable Food Processing – Billund.

RECENTLY EMPLOYED IN NOVADAN

HENRIK JENSEN Teamleader Warehouse, Logistics & Customer service

I am 46 years old and have just recently moved to Fredericia, after living in Kolding my entire life.

I have spent almost my entire work life, having a connection to logistics and leadership was added to my interests, over 20 years ago.

I enjoy spending time with my family, and my hobbies include movies, music and sports.

I am very pleased with the welcome I have received to the Novadan family, and am looking forward to help the company succeed even further.

Michael Birch Safety, Maintenance, and production Manager

Michael Birch 56 old has started as new Safety, Mainte nance, and production Manager.

I am living on a farm in a small town Uldum near Vejle with my wife. I have a 26-year-old son who lives with his girlfriend in Aarhus.

I started on 18 October as new Safety, maintenance and production Manager.

I have worked 25 years in similar positions with strong focus on safety, maintenance and people in various in dustries. In companies such as LEGO, Johnson Controls, Tenneco and Siemens.

In my spare time I play football, are together with family or work in the garden. Just became beekeeper.

Thank you for the warm welcome.

FoodTech exhibition - Great to be back!

Just like in 2018, Novadan once again attended this exhibition which is Scandinavia’s leading food exhibition.

For Novadan, it is of great interest to participate as the food industry is constantly developing. New exciting initiatives, educational actions, and interesting product news are what characterizes this exhibition. Therefore, it is important that Novadan is in the forefront of where the food industry and suppliers show their competences.

This year, our focus was especially on NovaInsight and the situation about increasing energy prices. Topics that resulted in many interesting conversations with customers as well as potential customers.

We had two co-exhibitiors on our stand and this meant good synergies with both Rocol and System Cleaners.

Visitors at the exhibition are primarily Danish, Norwegians, Swedish, Faroese, Icelanders, and also interested visitors from other countries.

The images speak for themselves and show some very good and active days at the stand.

Check a short video on this link:

CLICK ON LINK

by Jens Ole Jensen Sales Manager Food

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On the exhibition: Agromek, Novadan does not have its own stand but participates on LINDS stand.

Linds is our large Danish distributor and cooperative.

Agromek has also taken a break since 2018. Even though the official number of visitors is lower than in the “old days”, the generel number of visitors is a positive experience.

Visitors on Lind’s stand is primarily end users/farmers who at the end of the day are the ones that actually enjoy using and have the experience with using Novadan’s products.

Hans Erik Nielsen Market Manager Agro