Black and Old or Black and Gold? Rubber in the Americas

Rubber World, April, 2008

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Welcome readers. This year marked the 7th annual Rubber in the Americas (RITA) conference co-sponsored by Rubber World Magazine and LANXESS Corporation and the 7th year we have provided you with a written report.

The conference theme, Black and Old or Black and Gold ... How does the industry take advantage of new technologies and global markets to generate growth? ... was a deliberate choice of topic because the rubber industry faces challenges to grow in the current business environment. My impressions are that the rubber industry is not unique in facing a number of issues, such as:

* the high cost of energy

* the high cost of production

* mergers and acquisitions

* not-so-good economic news

The point is: what affects the rubber industry affects many other industries. Sometimes an outsider helps us see ourselves in a new way. Imagine my delight when we uncovered a reputable rubber booster from outside the industry. Let me introduce him to you now.

In case the name James Dyson is unfamiliar, here is a quick overview of the man. 60-year-old James Dyson is a wealthy engineer and inventor in the U.K. who has been knighted for his services to business. He heads the Dyson dynasty renowned for the Dyson bagless vacuum cleaner. What could this man possibly say that would interest anyone in the rubber industry?

In a television interview Dyson said: "Rubber, I think, was one of the most interesting inventions. It's terribly important in today's industry ... it makes everything work ... rubber was the sort of invention I would loved to have done. It's something that is used everywhere for everything and absolutely essential to make everything work."

Of course we agree with this inventor.

Here is a man after my own heart. Dyson's story of perseverance and tenacity in the face of adversity is an inspiration to those in any business. You learn by making mistakes, he says. The more things are broken, the more you learn. The future belongs to those who use their brains best.

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Are we afraid to try something new in case it fails? We need positive thinkers in our industry when we try to meet the needs of customers. We can't go and ask our customers to be our inventors. That's our job.

This brings me back to the topic of our conference. Learning from industries around us and using our own knowledge and experiences will help us to generate ideas to grow our business. Our program was therefore comprised of speakers from inside and outside of our industry. The conference intent was that it will assist the attendees to ensure that rubber is, and continues to be, an exciting industry.

Are we Black and Old or Black and Gold? How can we take advantage of new technologies and global markets to generate growth? We listened to each of our speakers and were inspired by their thoughts, ideas and experiences as they urged us to look forward to the future with new eyes. My sincere thanks to these excellent business professionals who took the time to share their positive messages with us.

Boudewijn van Lent, Vice President, Technical Rubber Products, North America LANXESS Corporation, Pittsburgh PA

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Thoughts from the Defense Counsel: The Way it Really is in Antitrust Criminal Conduct, was the subject of a candid presentation by Phillip Proger, Attorney for Jones Day. He began by explaining that antitrust law can be traced back to 16th and 17th century British law. It is a body of law which is the companion to organizations and how they compete. "The Civil War brought fundamental change as the U.S. went from a predominantly agrarian to industrial society," said Proger. In the late 1880s agrarian states began to pass statutes prohibiting monopolies, leading to the Sherman Antitrust Act. "We are the leader in the criminalization of antitrust," said Proger. "The Sherman act was passed in 1890 as a criminal act and then in 1974 President Ford signed a law that amended it from a misdemeanor to a felony."

Proger asked the audience, why, if it is so apparent that price fixing is against the law, are there so many antitrust lawyers working? He recounted that in his practice he had found that many individuals seem to approach price-fixing in the same way as traffic laws-it is the law, but if I am not caught 'speeding' then it is alright. He explained that around the world, there is coordination by enforcement authorities against cartels. "Even if it is not illegal in your country, you will be prosecuted and pursued and you will be put in jail," he said, pointing out that today the average jail sentence is about 2 years.

Proger continued, drawing a chilling portrait of an anti-trust investigation. "In white collar crime, like antitrust, everyone talks," he said. "All the people you were with will roll on you in a moment to make a deal." Proger pointed out that a typical legal defense will cost between half a million dollars and several million dollars.

The first thing that happens is that all company and personal records, credit card accounts, hotel records and receipts-everything is seized. "Then you are suspended," said Proger. "And antitrust works at glacial speeds!" He continued that there is a long period where everything is on hold, during which co-workers and collaborators are undergoing parallel interviews and investigation. There is a great incentive to give the justice department information that will indict other people. Justice will be more lenient on the first one in, but only if there is enough information to indict others.