- Email: [email protected]
A ‘natural’ driver of demand: cosmetics sector
F O C U S Surfactant Replacement Therapy pipeline and potentially entering into strategic partnerships. Press releases from: Discovery Laboratories Inc, 350, South Main Street, Suite 307, Doylestown, PA 18901, USA. Tel: +1 215 340 4699. Fax: 215 340 3940. E-mail: [email protected]. Website: http://www.discoverylabs.com) (5 & 25 Apr 2006)
Other
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Fabric softener assigned to P&G Procter & Gamble has received Patent No US 6,995,131 B1 for clear or translucent aqueous fabric softener compositions. High electrolyte and optional phase stabilizer are contained in the compositions. HAPPI, Household & Personal Products Industry, Apr 2006, 43 (4), 28
Leaving surfaces, tools clean and dry Chymera Group has developed Acrastrip, a safe and non-volatile cleaner capable of cleaning all surfaces and tools from paints, resins, epoxies, greases, sealants and lacquers. Acrastrip is a combination of extremely high-boiling solvents and surfactants that can be applied at room temperature and are diluted with water. The product has secured formal approval from the Environmental Protection Agency as an environment-friendly cleaner.
Kao patents detergent compositions Kao Corp has obtained Patent No US 6,992,055 B1 for a method of preparing detergent compositions with high bulk density. The method involves dry-neutralizing a liquid acid precursor of a non-soap, anionic surfactant, prepared by a sulfur trioxide gas sulfonation method, with a water-soluble, solid, alkali inorganic substance.
Materials World, Apr 2006, 14 (4), 15
HAPPI, Household & Personal Products Industry, Apr 2006, 43 (4), 28
Sipcam Agro to market Aquatrol’s surfactant
Patents: it’s a fair crop
Aquatrol has tapped Sipcam Agro USA, Inc to exclusively market its IrrigAid Gold Agricultural Soil Surfactant. CropLife, Apr 2006, 169 (4), 7
PATENTS
European patent application EP1638395 from two US inventors claims a pesticide that has a physical, rather than chemical, mode of action. The product contains a polymer, a surfactant, a cosolvent and a diluent in a hydrocolloid suspension. There is brief discussion of the product and its mode of action. Chemistry and Industry (London), 1 May 2006, (9), 15 (Website: http://www.chemind.org)
New method for salicylate production wins state patent in China On 7 Mar 2006, a Chinese patent was awarded to Dushanzi Petrochemical Co Ltd for its new process for the production of basic alkyl salicylates, which are used extensively as additives in both fuels oils and engine oils. The new process avoids problems associated with coprecipitation when detergent dispersants are also used as lubricant additives. The process enables the production of basic calcium alkyl salicylate that is more compatible with other additives than basic calcium alkyl sulfophenate, has good product stability, and can reduce production costs. China Chemical Reporter, 6 Apr 2006, 17 (10), 17
JUNE 2006
ENVIRONMENT Alkylbenzene sulfonates risk assessment and preliminary risk reduction options: notice of availability This notice, issued by the US Environment Protection Agency (EPA), announces the availability of EPA’s risk assessment, preliminary risk reduction options, and related documents for the pesticide alkylbenzene sulfonates, which encompasses sodium dodecylbenzene sulfonate, dodecylbenzene sulfonic acid, benzenesulfonic acid, and C10-C16
alkyl derivatives, and opened a public comment period on these documents. The public is also encouraged to suggest risk management ideas or proposals to address the risks identified. EPA is developing a Reregistration Eligibility Decision (RED) for alkylbenzene sulfonates through a modified, four-phase public participation process that the Agency uses to involve the public in developing pesticide reregistration and tolerance reassessment decisions. This is Phase 3 of the process. Through these programs, EPA is ensuring that all pesticides meet current health and safety standards. The deadline for comments was 19 Jun 2006. Federal Register, 19 Apr 2006, 71 (75), 20090-20092 (Website: http://www.gpoaccess.gov/fr/advanced.html)
MARKET REVIEWS A ‘natural’ driver of demand: cosmetics sector The Freedonia Group projects the natural product segment of the US cosmetics sector to expand at 8%/y to $1.1 bn in 2009, compared with 5.7%/y to $7.6 bn for the overall cosmetic and toiletry chemicals sector. Freedonia attributes the projected strong growth to growing demand for make-up containing ingredients that are nontoxic, environment-friendly, and use testing methods that do not involve animals. These ingredients include botanical extracts, proteins such as albumin and collagen, silk- and vegetablebased proteins, and sorbitol. Growth is also being driven by new laws that limit toxic ingredients, such as the Safe Cosmetics act of 2005, a regulation passed in California requiring producers to provide a list of products sold in the state and to list ingredients that cause cancer or affect reproductive health. A law with similar objectives was also passed by the European Union. The increasing number of companies shifting to natural ingredients is spurring ingredient suppliers to expand their portfolio of natural products, particularly in oleochemicals. FPG 5
F O C U S Oleochemicals, a Malaysian joint venture of Felda Palm Industries and P&G Chemicals, intends to set up a fatty acid plant at Kuantan, Malaysia, to produce 120,000 tonnes/y of vegetable oil-based fatty acids [Focus on Surfactants, May 2005]. The facility will come onstream in 2006. Among the leading oleochemicals companies is Malaysia-based Cognis Oleochemicals, which generates sales of over €690 M/y. Chemical Week, 5 Apr 2006, (Website: http://www.chemweek.com)
COMPANY RESULTS Huntsman nearly doubles operating income but ends 2005 with a net loss Huntsman Corp almost doubled its operating income in 2005 to $813.9 M, with a 13% increase in revenues to $12.961 bn. Despite the increase in operating income and revenues, the company reported a net loss of $34.6 M in 2005, down from a loss of $227.7 M in 2004. Huntsman faced a difficult 4Q 2005 with a financial fallout of around $140 M due to devastating impact of the Gulf Coast hurricanes and spiralling increases in material and energy costs. The company’s performance products unit reported increases in revenues and EBITDA by 1.7% and 72.9%, respectively. Sales volume has dropped by 28% in 4Q 2005 due to the hurricanes, while some surfactants and glycols sales also logged lower sales volume.
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2006” with underlying growth on the base business of 6% and a better than expected contribution from Boots Healthcare International in its first two months. Underlying growth was driven by the success of initiatives like Vanish Oxi Action Crystal White and Cillit Bang Stain and Drain supported by increasing marketing investment, Becht says. In Europe (54% of net revenues), net revenues grew 16% to £623 M. Underlying growth was 5%. The major contributors to growth were fabric care, surface care and home care. Operating profit increased by 23% to £133 M. In North America and Australia, which together account for 28% of revenues, net sales were up 11% to £326 M while operating profit was 6% higher at £47 M. Developing markets (18% of total revenues) saw 9% growth in sales to £213 M and operating profit up more than 30% to £16 M. At constant exchange rates, Fabric Care net revenues increased 9% to £291 M in 1Q 2006. The major drivers were strong continuing growth for Vanish Oxi Action fabric treatment due to the launch of Vanish Oxi Action Crystal White, and for both Woolite fine fabric and Calgon water softeners. Laundry detergent sales improved. Net revenues for dishwashing products increased 1% to £154 M. Home Care net revenues improved by 12% to £172 M and Surface Care net revenues grew 4% to £232 M. The company is optimistic of reaching its targets for 2006. Press release from: Reckitt Benckiser plc, 103-105 Bath Road, Slough SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com (27 Apr 2006) & Handelsblatt Wirtschafts- und Finanzzeitung, 28 Apr 2006, (83), 16 (in German)
European Paint and Resin News, Mar 2006, 44 (3), 9
Reckitt Benckiser posts strong start in 1Q 2006 Reckitt Benckiser increased its net profits by 14% in 1Q 2006 to £141 M, excluding restructuring charges, and its operating profit for the same period rose by 23% to £196 M. If restructuring charges are included, net income fell 11% to £110 M and operating profit was down 4% at £154 M. Sales in 1Q 2006 were up 18% to £1.16 bn at actual exchange rates. According to CEO Bart Becht, the company “made a strong start to 6
net profits of €186 M. Henkel’s boss is predicting a 10% rise in operating profits and profits per share in 2006. Sales are expected to grow 3-4%. Sales rose 13% in 2005 to almost €12 bn, and operating profits rose 16.7% to almost €1.2 bn. Net profits were up 2.9% at €770 M for the year. Handelsblatt Wirtschafts- und Finanzzeitung, 3 May & 10 Apr 2006, (Website: http://www.handelsblatt.com) (in German)
Godrej Consumer Products: results for 2005-2006 Godrej Consumer Products Ltd has reported a net profit of Rup 301.6 M on sales (net of excise) of Rup 1641.2 M for 4Q ended Mar 2006 (net profit of Rup 288.2 M on sales of Rup 1385 M in 4Q ended Mar 2005). During 4Q 2005-2006, the company recorded sales of Rup 985.4 M from soaps, Rup 430.2 M from hair colours, Rup 143.9 M from toiletries and Rup 44.4 M from liquid detergents businesses (sales of Rup 835.2 M from soaps, Rup 379.5 M from hair colours, Rup 73.5 M from toiletries and Rup 47.7 M from liquid detergents businesses in 4Q 2004-2005). Godrej posted a net profit of Rup 1212 M on sales (net of excise) of Rup 6573.2 M for the year ended Mar 2006 (net profit of Rup 895.9 M on sales of Rup 5626.7 M in the year ended Mar 2005). Business Line, 27 Apr 2006, 13 (116), 7
COMPANY NEWS Cognis set to review entire business group
Henkel posts strongest growth in Asia Henkel has achieved its strongest growth rates at the start of 2006 in Asia/Pacific. The company’s EBIT was up 11.7% at €295 M and net profits 10.1% at €185 M. Growth in Asia was 17%. Group sales were up 11% in 1Q 2006 at €3.05 bn. The consumer adhesives business posted growth of 20.8%, and detergents 5.4% to €1.01 bn. The toiletries division was up 8.1% at €642 M. Analysts had expected 1Q 2006 sales of €2.92 bn and EBIT of €292 M and
Investment funds Permira and GS Capital Partners, the two major shareholders in Cognis, recently engaged the services of Goldman Sachs and J-P Morgan to evaluate various strategic options for the German chemicals group. Although neither shareholder has disclosed further details, the most likely solutions are either the group’s sale or its entry onto the stock exchange. Cognis has a third shareholder, SV Life Sciences, but this company has not announced what it intends to do JUNE 2006
Other
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Fabric softener assigned to P&G Procter & Gamble has received Patent No US 6,995,131 B1 for clear or translucent aqueous fabric softener compositions. High electrolyte and optional phase stabilizer are contained in the compositions. HAPPI, Household & Personal Products Industry, Apr 2006, 43 (4), 28
Leaving surfaces, tools clean and dry Chymera Group has developed Acrastrip, a safe and non-volatile cleaner capable of cleaning all surfaces and tools from paints, resins, epoxies, greases, sealants and lacquers. Acrastrip is a combination of extremely high-boiling solvents and surfactants that can be applied at room temperature and are diluted with water. The product has secured formal approval from the Environmental Protection Agency as an environment-friendly cleaner.
Kao patents detergent compositions Kao Corp has obtained Patent No US 6,992,055 B1 for a method of preparing detergent compositions with high bulk density. The method involves dry-neutralizing a liquid acid precursor of a non-soap, anionic surfactant, prepared by a sulfur trioxide gas sulfonation method, with a water-soluble, solid, alkali inorganic substance.
Materials World, Apr 2006, 14 (4), 15
HAPPI, Household & Personal Products Industry, Apr 2006, 43 (4), 28
Sipcam Agro to market Aquatrol’s surfactant
Patents: it’s a fair crop
Aquatrol has tapped Sipcam Agro USA, Inc to exclusively market its IrrigAid Gold Agricultural Soil Surfactant. CropLife, Apr 2006, 169 (4), 7
PATENTS
European patent application EP1638395 from two US inventors claims a pesticide that has a physical, rather than chemical, mode of action. The product contains a polymer, a surfactant, a cosolvent and a diluent in a hydrocolloid suspension. There is brief discussion of the product and its mode of action. Chemistry and Industry (London), 1 May 2006, (9), 15 (Website: http://www.chemind.org)
New method for salicylate production wins state patent in China On 7 Mar 2006, a Chinese patent was awarded to Dushanzi Petrochemical Co Ltd for its new process for the production of basic alkyl salicylates, which are used extensively as additives in both fuels oils and engine oils. The new process avoids problems associated with coprecipitation when detergent dispersants are also used as lubricant additives. The process enables the production of basic calcium alkyl salicylate that is more compatible with other additives than basic calcium alkyl sulfophenate, has good product stability, and can reduce production costs. China Chemical Reporter, 6 Apr 2006, 17 (10), 17
JUNE 2006
ENVIRONMENT Alkylbenzene sulfonates risk assessment and preliminary risk reduction options: notice of availability This notice, issued by the US Environment Protection Agency (EPA), announces the availability of EPA’s risk assessment, preliminary risk reduction options, and related documents for the pesticide alkylbenzene sulfonates, which encompasses sodium dodecylbenzene sulfonate, dodecylbenzene sulfonic acid, benzenesulfonic acid, and C10-C16
alkyl derivatives, and opened a public comment period on these documents. The public is also encouraged to suggest risk management ideas or proposals to address the risks identified. EPA is developing a Reregistration Eligibility Decision (RED) for alkylbenzene sulfonates through a modified, four-phase public participation process that the Agency uses to involve the public in developing pesticide reregistration and tolerance reassessment decisions. This is Phase 3 of the process. Through these programs, EPA is ensuring that all pesticides meet current health and safety standards. The deadline for comments was 19 Jun 2006. Federal Register, 19 Apr 2006, 71 (75), 20090-20092 (Website: http://www.gpoaccess.gov/fr/advanced.html)
MARKET REVIEWS A ‘natural’ driver of demand: cosmetics sector The Freedonia Group projects the natural product segment of the US cosmetics sector to expand at 8%/y to $1.1 bn in 2009, compared with 5.7%/y to $7.6 bn for the overall cosmetic and toiletry chemicals sector. Freedonia attributes the projected strong growth to growing demand for make-up containing ingredients that are nontoxic, environment-friendly, and use testing methods that do not involve animals. These ingredients include botanical extracts, proteins such as albumin and collagen, silk- and vegetablebased proteins, and sorbitol. Growth is also being driven by new laws that limit toxic ingredients, such as the Safe Cosmetics act of 2005, a regulation passed in California requiring producers to provide a list of products sold in the state and to list ingredients that cause cancer or affect reproductive health. A law with similar objectives was also passed by the European Union. The increasing number of companies shifting to natural ingredients is spurring ingredient suppliers to expand their portfolio of natural products, particularly in oleochemicals. FPG 5
F O C U S Oleochemicals, a Malaysian joint venture of Felda Palm Industries and P&G Chemicals, intends to set up a fatty acid plant at Kuantan, Malaysia, to produce 120,000 tonnes/y of vegetable oil-based fatty acids [Focus on Surfactants, May 2005]. The facility will come onstream in 2006. Among the leading oleochemicals companies is Malaysia-based Cognis Oleochemicals, which generates sales of over €690 M/y. Chemical Week, 5 Apr 2006, (Website: http://www.chemweek.com)
COMPANY RESULTS Huntsman nearly doubles operating income but ends 2005 with a net loss Huntsman Corp almost doubled its operating income in 2005 to $813.9 M, with a 13% increase in revenues to $12.961 bn. Despite the increase in operating income and revenues, the company reported a net loss of $34.6 M in 2005, down from a loss of $227.7 M in 2004. Huntsman faced a difficult 4Q 2005 with a financial fallout of around $140 M due to devastating impact of the Gulf Coast hurricanes and spiralling increases in material and energy costs. The company’s performance products unit reported increases in revenues and EBITDA by 1.7% and 72.9%, respectively. Sales volume has dropped by 28% in 4Q 2005 due to the hurricanes, while some surfactants and glycols sales also logged lower sales volume.
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2006” with underlying growth on the base business of 6% and a better than expected contribution from Boots Healthcare International in its first two months. Underlying growth was driven by the success of initiatives like Vanish Oxi Action Crystal White and Cillit Bang Stain and Drain supported by increasing marketing investment, Becht says. In Europe (54% of net revenues), net revenues grew 16% to £623 M. Underlying growth was 5%. The major contributors to growth were fabric care, surface care and home care. Operating profit increased by 23% to £133 M. In North America and Australia, which together account for 28% of revenues, net sales were up 11% to £326 M while operating profit was 6% higher at £47 M. Developing markets (18% of total revenues) saw 9% growth in sales to £213 M and operating profit up more than 30% to £16 M. At constant exchange rates, Fabric Care net revenues increased 9% to £291 M in 1Q 2006. The major drivers were strong continuing growth for Vanish Oxi Action fabric treatment due to the launch of Vanish Oxi Action Crystal White, and for both Woolite fine fabric and Calgon water softeners. Laundry detergent sales improved. Net revenues for dishwashing products increased 1% to £154 M. Home Care net revenues improved by 12% to £172 M and Surface Care net revenues grew 4% to £232 M. The company is optimistic of reaching its targets for 2006. Press release from: Reckitt Benckiser plc, 103-105 Bath Road, Slough SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com (27 Apr 2006) & Handelsblatt Wirtschafts- und Finanzzeitung, 28 Apr 2006, (83), 16 (in German)
European Paint and Resin News, Mar 2006, 44 (3), 9
Reckitt Benckiser posts strong start in 1Q 2006 Reckitt Benckiser increased its net profits by 14% in 1Q 2006 to £141 M, excluding restructuring charges, and its operating profit for the same period rose by 23% to £196 M. If restructuring charges are included, net income fell 11% to £110 M and operating profit was down 4% at £154 M. Sales in 1Q 2006 were up 18% to £1.16 bn at actual exchange rates. According to CEO Bart Becht, the company “made a strong start to 6
net profits of €186 M. Henkel’s boss is predicting a 10% rise in operating profits and profits per share in 2006. Sales are expected to grow 3-4%. Sales rose 13% in 2005 to almost €12 bn, and operating profits rose 16.7% to almost €1.2 bn. Net profits were up 2.9% at €770 M for the year. Handelsblatt Wirtschafts- und Finanzzeitung, 3 May & 10 Apr 2006, (Website: http://www.handelsblatt.com) (in German)
Godrej Consumer Products: results for 2005-2006 Godrej Consumer Products Ltd has reported a net profit of Rup 301.6 M on sales (net of excise) of Rup 1641.2 M for 4Q ended Mar 2006 (net profit of Rup 288.2 M on sales of Rup 1385 M in 4Q ended Mar 2005). During 4Q 2005-2006, the company recorded sales of Rup 985.4 M from soaps, Rup 430.2 M from hair colours, Rup 143.9 M from toiletries and Rup 44.4 M from liquid detergents businesses (sales of Rup 835.2 M from soaps, Rup 379.5 M from hair colours, Rup 73.5 M from toiletries and Rup 47.7 M from liquid detergents businesses in 4Q 2004-2005). Godrej posted a net profit of Rup 1212 M on sales (net of excise) of Rup 6573.2 M for the year ended Mar 2006 (net profit of Rup 895.9 M on sales of Rup 5626.7 M in the year ended Mar 2005). Business Line, 27 Apr 2006, 13 (116), 7
COMPANY NEWS Cognis set to review entire business group
Henkel posts strongest growth in Asia Henkel has achieved its strongest growth rates at the start of 2006 in Asia/Pacific. The company’s EBIT was up 11.7% at €295 M and net profits 10.1% at €185 M. Growth in Asia was 17%. Group sales were up 11% in 1Q 2006 at €3.05 bn. The consumer adhesives business posted growth of 20.8%, and detergents 5.4% to €1.01 bn. The toiletries division was up 8.1% at €642 M. Analysts had expected 1Q 2006 sales of €2.92 bn and EBIT of €292 M and
Investment funds Permira and GS Capital Partners, the two major shareholders in Cognis, recently engaged the services of Goldman Sachs and J-P Morgan to evaluate various strategic options for the German chemicals group. Although neither shareholder has disclosed further details, the most likely solutions are either the group’s sale or its entry onto the stock exchange. Cognis has a third shareholder, SV Life Sciences, but this company has not announced what it intends to do JUNE 2006