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As Europe’s second-largest chemical producer —behind Germany—, France boasts a robust chemical industry with a prominent position on the global stage. France’s chemical industry, which transforms energy and raw materials into a wide range of useful compounds and materials, plays a key role in the country’s economy: Chemical industry is France’s leading export sector and France’s third sector in terms of revenue, with some €90 billion of revenue a year. Rhône-Alpes is France’s top region for chemical manufacturing, home to numerous production facilities as well as 20% of the country’s researchers and 25% of its R&D investments. Major industry players like Arkema, Total, and the French Petroleum Institute have set up R&D centers employing a total of 1,000 people near their production sites in and around Lyon. Some 5,000 more chemical-industry professionals work in the Grenoble-Isère area. In fact, Grenoble-Isère boasts a long history of chemical production spanning from commodities through to fine chemicals, with an excellent track record of efficient operations and successful risk management. The area’s three major chemical parks (at Pont-de-Claix, Jarrie, and Roches-Roussillon) are home to several plants fully compliant with the Seveso Directive, since safety is—of course—their top priority. In addition to the chemical industry heavyweights, many innovative, fast-growing SMEs have also set up shop in Grenoble-Isère. And most of the area’s chemical companies have one thing in common: European or even global leadership positions in their markets. This is true for products ranging from acetic acid and hydrogen peroxide to lubricants for underground operations and zirconium sponges. While the Grenoble region boasts solid, long-standing expertise in chlorine compounds, phosgene, and isocyanate, a wide variety of other chemicals—like sulfur, phosphate, silicone, and phenols—are produced in the Rhône river valley and the northern part of Isère.

2013

G R E N O B L E – I S È R E E C O N O M I C D E V E L O P M E N T A G E N C Y

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Ideally located to serve European markets Grenoble-Isère is situated in the center of France’s Rhône-Alpes region and at the crossroads of northern and southern Europe. This strategic location gives companies direct access to markets in Switzerland, Germany, and Italy. The Rhône-Alpes region boasts one of Europe’s most vibrant economies. Home to 6.34 million residents and a GDP of €182 billion (10% of France’s total GDP), the Rhône-Alpes region is the country’s second-largest regional economy behind Paris-Ile-de-France.

Robust infrastructure • Three international airports: Lyon-Saint Exupéry, Geneva-

Cointrin, and Grenoble-Saint Geoirs • Linked to the European high-speed train network • Modern highways throughout the region

Two large labor pools • Lyon (1,400,000 inhabitants) in the north • Grenoble (750,000 inhabitants) in the south

Advanced R&D backed by international companies in several industries R&D is a key driver of Grenoble-Isère’s economy. Most of the region’s R&D work is carried out in Grenoble, in close collaboration with the city’s world-caliber businesses and universities.

• 25,000 R&D jobs (second in France only to Paris) • 5 international and 9 national research centers • Numerous R&D partnerships with local businesses

Axelera, the Rhône-Alpes competitive cluster for environmental chemistry Axelera is the only competitive cluster in the world bringing together both chemical and environmental industry know-how. It was created to accelerate the development of next-generation chemical compounds that can help meet tomorrow’s environmental challenges. The cluster is currently coordinating 19 collaborative R&D projects bringing together research centers, businesses, and end customers along the entire environmental and chemical value chains. Its work focuses on five key pillars:

� Environmental chemistry applications � Environmental protection � Materials recycling and recyclability � Plant-based chemicals � Next-generation production plants

The cluster was founded jointly by Arkema, Rhodia, Suez, the French Petroleum Institute, and the French National Center for Scientific Research (CNRS).

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Arkema, the world’s third-largest H202 producer Arkema’s plant in Jarrie, just outside Grenoble, specializes in chlorine and chlorine derivatives and houses one of the world’s largest hydrogen peroxide units. The plant counts 350 employees and produces hydrogen peroxide, chlorine, soda, bleach, and methyl chloride.

Vencorex, a leading supplier of isocyanate Vencorex is the new joint venture between Sweden-based Perstorp and Thailand-based PTT Global Chemical—majority shareholder—. Vencorex’s plant is one of France’s only isocyanate manufacturer (including TDI, HDI, and derivatives); these compounds are used to make high-end, low-solvent paints and coatings and polyurethane foam for automotive and furniture applications. The company’s HDI business, which mainly serves the growing automotive and aerospace markets, relies heavily on innovation. Vencorex’s operations at Pont-de-Claix are fully integrated along the entire production chain, spanning from salt extraction and electrolysis to make chlorine, caustic soda, and hydrogen, to the production of phosgene and isocyanate.

Solvay Chemical giant Solvay has plants at both Pont-de-Claix and Roches-Roussillon. At Roches-Roussillon, Solvay boasts a world-leading cellulose acetate plant—cellulose acetate is an important intermediate for making cigarette filters.

Isochem, the specialist in phosgene fine chemicals At Pont-de-Claix, Isochem makes products for the agricultural and landscaping industries. Isochem produces herbicides used to protect grains and other plants. Isochem has 80 employees.

Air Liquide, the global leader in industrial and medical gases Air Liquide provides end-to-end systems including industrial and medical gases, gas distribution equipment, and installation and maintenance services. In Isère the company employs 700 people for the production of process gases such as nitrogen, oxygen, hydrogen, and carbon oxides.

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Bluestar Silicones, experts in silicone products Bluestar Silicones, which operates a plant at Roches-Roussillon, is a subsidiary of China National BlueStar (Group) Co., Ltd., a large state-owned enterprise owned by ChinaChem Group Corporation. The company employs 150 people in its silicones business, which makes methyl chlorosilane for glue, sealants, and plastics.

Areva-Cezus, a global leader in nuclear zirconium Cezus, an Areva company, manufactures zirconium-alloy components. Its Jarrie plant uses zircon to make zirconium sponges—a market in which Cezus boasts a 55% share worldwide. 95% of its sponges are used in the nuclear industry, making the Jarrie plant a key player in the production of nuclear fuel. The company also transforms zirconium production byproducts into other marketable compounds like hafnium and magnesium chloride. Hafnium is a key component in super-alloys capable of withstanding very high temperatures and is designed for use in applications like aircraft engines. Cezus employs 240 people at its Jarrie plant.

Adisseo, one of the world’s top three methionine producers Adisseo develops and manufactures nutritional additives (vitamins, methionine, and enzymes) for livestock feed. An animal nutrition expert, Adisseo employs 300 people at two sites in Isère: Saint-Clair-du-Rhône, which manufactures AMTP, an intermediate used in methionine production; and Roches-Roussillon, which makes methionine. Adisseo is a subsidiary of Bluestar, which is owned by ChinaChem Group Corporation.

Finorga-Novasep, a leading fine chemical company At its site in Chasse-sur-Rhône, Finorga, a Novasep company, produces active ingredients and advanced intermediates for all of the world’s leading pharmaceutical companies. Finorga-Novasep possesses expertise in the manufacturing of synthetic fine chemicals for production runs of all sizes. The company has a 50-person R&D center and delivers value at all stages of the production process: reaction, decantation, distillation, filtering, drying, and atomization. Finorga-Novasep also serves other industries such as cosmetics and fragrances. The company has 220 employees.

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Stepan Europe, supplier of a quarter of Europe’s fabric softeners Stepan Europe, the European branch of US-based Stepan Company, makes biodegradable fabric softeners for industrial and household use, oil field additives, and industrial and household detergents at its plant in Voreppe (in Isère). Voreppe is also home to Stepan Europe’s headquarters; the company has 120 employees.

Condat , the leading global supplier of lubricants for underground mining, drilling, and digging Condat, headquartered at Chasse-sur-Rhône, makes specialty lubricants for industrial processes like drilling, metal working, and wire drawing, and for industrial maintenance. The company is the leading global supplier of lubricants for underground operations and for cold heading (with its Vicafil range). 40 of Condat’s 425 employees work in R&D.

RSA le Rubis, designer of innovative materials RSA le Rubis, located in Jarrie, manufactures synthetic sapphire and ruby monocrystals made by crystallizing pure or doped alumina powder. These products are used in jewelry and timepieces. The company also produces large sapphires (more than 100 mm in diameter) for the microelectronics and optoelectronics industries (the sapphires are used to make LEDs, increasingly used in new lighting applications) and sapphire microbeads (made using plasma torches) targeting surface treatments for demanding applications in the aerospace, medical, and electronics industries.

Novacyl, a key player recognized amongst the largest pharmaceutical companies The Novacap subsidiary is a worldwide leader on acetylsalicylic acid and intermediates (salicylic acid, esters). The company also produces methyl salicylate in Grenoble-Isere. Its plants gathers 52 employees.

Novapex, an intermediate supplier Novapex is a Novacap subsidiary. Novapex produces phenol and acetone, basic chemical products which, after several processes, are used for daily use goods and products: mobile phone, computer, car, carpet, aspirin, paracetamol, etc… Novapex has 120 employees on its Grenoble-Isere’s site.

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University programs targeting chemical-industry needs Grenoble-Isère boasts world-caliber universities offering a wide range of chemistry and chemical engineering degrees. The area also offers numerous vocational programs for specialized technical degrees in fields like industrial processes, plastics, and paints, coatings, and adhesives. Every year some 800 chemistry students graduate from Université Joseph Fourier (UJF), the science, technology, and healthcare school of Grenoble University, including a handful of PhD students from its Doctoral School of Chemistry and Life Sciences. The area’s top engineering school, Grenoble Institute of Technology-Phelma, trains 110 engineers a year in fields like electrochemistry, physical chemistry, materials science and engineering, and process engineering.

Leading-edge research centers Grenoble-Isère is No.1 in France for R&D (as a % of total jobs).

Some 600 scientists work in chemistry-related R&D in the region, in

fields ranging from molecular chemistry and physical chemistry to

electrochemistry and process engineering. A great deal of research is

also done in biochemistry, for applications in pharmaceuticals, bio-

metals, and other promising areas. Materials science and engineering

at the crossroads with physics are also growing focus areas.

Grenoble-Isère is also home to large international scientific

instruments like the Synchrotron (ESRF), the European Molecular

Biology Laboratory (EMBL), and the Institut Laue-Langevin (ILL).

A dedicated Molecular Chemistry Department at UJF Université Joseph Fourier (UJF), in conjunction with the French National Center for Scientific Research (CNRS), opened a Molecular Chemistry Department on January 1, 2007. The Department’s 150 researchers work on applications for healthcare and nanoscience, focusing on five key areas:

• Organic chemistry (reactions and synthesis) • Biomolecular engineering and interactions • Inorganic chemistry (oxidation and reduction) • Theoretical chemistry • Electrochemical and analytical biosystems

A vast chemical inventory The molecular chemistry research center has a vast inventory of over 1,400 chemical compounds available for use by both companies and laboratories. These compounds not only showcase the research center’s know-how, but also enable scientists to perform biological screening tests to develop new diagnostic and/or therapeutic applications.

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Grenoble Chemical Park at Pont-de-Claix The Pont-de-Claix chemical park, located just south of Grenoble, focuses primarily on chlorine production using state-of-the art processes. The companies operating at the park are some of Europe’s leading suppliers of isocyanate (used to make polyurethane).

Key figures ���� 800 direct and 2,400 indirect jobs ���� 120 hectares ���� 30 ha available ���� 1 million tons of materials used ���� Assets: €1 billion ���� €100 million invested in safety and environmental

improvements in 2011 ���� 2 high-pressure phosgenation vessels

Main companies present Air Liquide, Isochem, Novacid, Solvay Energy Services, Sita REKEM (a Suez Environnement subsidiary), Vencorex (JV between PTT and Perstorp)

Shared services ���� Industrial-zoned land suitable for Seveso high threshold

plants and industrial-zoned land divided into 80 m x 80 m lots

���� Process fluid lines: steam, nitrogen, compressed air,

chlorine, hydrogen, and phosgene ���� An incineration unit for liquid and gaseous chlorine residue

���� A cogeneration plant, operated by Solvay Energy

Services, that generates the power for the park ���� Safety and environmental facilities including:

- A 40,000 m3 reservoir basin - An on-site fire station with a dozen trucks and access to a high-pressure water system

���� Industrial services: engineering, DCS conception & implementation, external supplier for maintenance, production laboratories, logistics and supply chain, customs, warehouses…

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Jarrie The Jarrie chemical park is located in a beautiful area just 15 km south of Grenoble. The many companies at the park play a key role in supporting and developing the local chemical industry and the broader economy.

Key figures ���� 1,000 direct jobs ���� 100 hectares, 75 of which house industrial facilities ���� Over €90 million invested in safety and environmental

improvements in 2011

Main companies present Arkema, Areva-Cezus, RSA le Rubis, Air Liquide

Shared services

���� A train station on France’s major railway network (Jarrie station)

���� Process fluid lines: nitrogen, oxygen, hydrogen, natural

gas, water, and chlorine ���� Pooled occupational health, fire-fighting, and emergency

services

���� Joint service providers serving both the Jarrie and Pont-de-Claix chemical parks: � Solvay Energy Services for energy optimization � Sita REKEM (a Suez Environnement subsidiary) for

industrial waste incineration (liquids and gases) � Omega Concept for the design and construction of

clean rooms

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Roches-Roussillon Located between Lyon and Valence in France’s “chemical belt”, the Roches-Roussillon chemical park is ideally positioned to serve markets in both northern and southern Europe. This rapidly-growing chemical park produces a wide variety of products, such as phenol, sulfur, phosphate, methionine, and silicone intermediates, and boasts modern multimodal shipping facilities with interconnected highway, railway, and river infrastructures.

Key figures ���� 1,400 direct and 4,000 indirect jobs ���� €93 million invested in 2012, 40% of which on health, safety, and environmental improvements ���� 16 companies present ���� 150 hectares ���� 50 hectares available

Main companies present Adisseo, Air Liquide, Bluestar Silicones, Celanese, Cofely (a GDF Suez company) Dalkia Industries, Evonik, Gambro, Gesip, Novacyl, Novapex, Solvay, Sita Rekem, Prayon and Thor

Centralized support services via Osiris ���� Industrial-zoned land suited for the construction of Seveso

plants (or plants subject to similar legislation), complete with utility and process gas hookups and wastewater treatment facilities

���� Technical support for obtaining building and operating

permits ���� Reliable, low-cost process fluids, electricity and gases

(nitrogen, compressed air, hydrogen, acetylene, natural gas, propylene, and water) and shared services for occupational health and safety, environmental protection, maintenance, logistics, research, IT systems, inspections, and laboratory analyses

���� A Health, Safety, and Environmental Code of Conduct for

all plants operating at the site, in order to ensure regulatory compliance and optimal performance in these areas

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Grenoble-Isère: the smart move

• Grenoble is top 5 in Forbes’ World’s 15 Most Inventive Cities (July 2013)

• No.1 in France for R&D (as a % of total jobs)

• International dimension: 7 out of 10 of top employers are foreign-owned companies; US,

Germany and UK are top investors in Grenoble-Isère

AEPI, the Grenoble-Isère economic development agency AEPI promotes Grenoble-Isère as a prime location for business and investment. With offices in the United States and China and a network of consultants spanning Germany, and the United Kingdom, AEPI is well-placed to attract foreign companies to Grenoble-Isère and assist them in development. Over the past fifteen years, the agency has provided 400 French and foreign firms with the support they need to make their move to Grenoble-Isère a success—creating some 9,000 jobs in the process. Drawing on our extensive knowledge of local industrial, research and government networks, and building upon international connections to the most advanced industrial & technological clusters and regions worldwide, AEPI is skilled in helping international and local investors achieve their business development goals. Grenoble-Isère’s strategic positioning at the crossroads of research, higher education, and industry makes it the perfect place to start a new business or expand an existing one.

AEPI - Agence d’Etudes et de promotion de l’Isère 1, place Firmin Gautier – 38027 Grenoble Cedex 1 – France

Tél : +33 476 709 718 – Fax : +33 476 709 719 – Email : AEPI@grenoble-isere.com

AEPI 2013 – Photos: DR, AEPI-Pierre Jayet, STMicroelectronics, Jazz à Vienne, Jean-Luc Rigaud, Plateforme chimique de Pont-de-Claix, Osiris, Arkema – Usine de Jarrie