The REACH (Registration, Evaluation and Authorisation of Chemicals) white paper, which could come into force in 2007, aims to regulate the production, importation and use of chemicals in the EU.

Trade bodies such as CEPE, fearful of the effect the legislation could have on both manufacturers and end users such as printers, commissioned research from KPMG to look into the effect that the proposals could have on EU firms.

The study looked at firms in various sectors, including a flexible packaging manufacturer. While it recognised that SMEs would be "particularly effected" by REACH, it also noted "that there is limited evidence that downstream users will be faced with a withdrawal of substances of greatest importance".

CEPE, however, claimed that the findings were "a result of the methodology used", saying the research did not look into enough substances used in the supply chain, in particular chemicals that have annual volumes of under 100 tonnes, which would be the most affected by REACH.

Story by Darryl Danielli