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Akzo Nobel Chemicals – operating income up 18%
FOCUS Environment Foundation. The highperformance surfactants are designed to help manufacturers move away from the use of nonylphenol ethoxylates (NPEs) in polymerization processes, in anticipation of legislation banning the use of these environmentally-damaging substances. Disponil AFX surfactants are highly concentrated modified fatty alcohol ethoxylates made from renewable raw materials. Launched in the US in Feb 2004, the NPEalternative range is now being marketed worldwide. Disponil AFX surfactants are fully biodegradable and safer, more environmentally friendly and less toxic than competing products. According to Cognis, the ‘green’ surfactant systems are actually more efficient than NPEs, performing better in aqueous polymerization processes due to their better electrolytic stability and ability to withstand freeze/thaw cycles. Disponil AFX is also suitable for other areas of application such as crop protection chemical and paints and coatings. Cognis says the patented product has already achieved a 5% share of the emulsion polymerization surfactant market. New EU legislation that comes into force in 2005 will prohibit the use of NPEs in practically all applications where they can get into the water. This will affect the estimated 75,000 tonnes of NPEs used annually for technical applications, and the approximately 10,000 tonnes used by European companies in the emulsion polymerization phase of the latex manufacturing process. Press release from: Cognis Deutschland GmbH, Postfach 130164, 40551 Düsseldorf, Germany. Tel: +49 211 794 00. Fax: +49 211 798 4008. Website: http://www.cognis.com (27 Jul 2004)
BASF calls for a competitive chemicals policy in Europe The 6th World Surfactants Congress CESIO 2004 was held in Berlin on 20–23 Jun 2004. Those attending discussed the latest developments in the field of surfactants, detergents and cleaners and the applications for these products in the industrial and consumer sectors. The regulatory framework in the European Union – for chemicals in general and, on the occasion of the CESIO congress, for surfactants in particular – was an 6
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important topic of discussion. The Deputy Chairman of BASF, Eggert Voscherau, addressed the plenum to outline demands for a chemicals policy that provides the basis for a sustainable chemical industry in Europe. Voscherau is deeply committed to protecting human health and the environment but also fears that the enormous costs and bureaucracy that will be generated by the planned European legislation will pose a threat to the competitiveness of the European chemical industry and its innovative potential. Cefic estimates that the registration and testing of 30,000 individual substances will generate additional costs of €2.3 bn for the chemical industry. The chemical industry accepts the fundamental goals of European chemicals legislation, but there is disagreement between legislators and the industry on the concrete measures that are needed to achieve these goals. Press release from: BASF, Germany. Website: http://www.media.basf.com (21 Jun 2004)
MARKET REVIEWS
Brazilian cleaners industry has hopes for 2004 The Brazilian household cleaners market was so-so in 2003. Some segments did achieve sales of over 36%, but overall the market hardly grew. Growth of 4-5% is expected in 2004. Rising industrial wages and a growing economy could prompt consumers to buy dearer products again. Air fresheners are becoming increasingly popular. Sales of cleaning and related products in Brazil reached Real 7 bn in 2003, a rise of over 6% on 2002. But with inflation running at 9.3%, this actually represented a fall. Sales volume was down 1.5% at 2.79 M tonnes. 2003 was characterized by a switch away from branded products to cheaper noname ones. 55% of producers of the cheaper products were able to expand. The biggest sales rise was in bar-soap used for laundry, which rose 36% to Real 762 M (volume was down 5.3%). Powder detergents rose almost 20% to over Real 2.3 bn (volume up 2.2%). Softeners were up 19% at over Real 517 M, and disinfectants rose 13%. Dishwashing liquids were up 2.5% by volume. Nachrichten fuer Aussenhandel, 6 Jul 2004, (128) (Website: http://www.nfa-online.de) (in German)
How soap can avoid the slippery slope During 2003 soap was the largest single-user of oils and fats in a nonedible application worldwide, with sales of around $24 bn, including $15 bn of laundry soap. The forecast for bar soap is flat or declining, but could be revitalized through the use of aromatherapy oils and natural extracts. The development of soap production and changes in soap composition are discussed together with the personal wash market, market trends and the use of laundry soap. The personal wash market is dominated by Unilever (23.9%), Colgate (10.9%) and Procter & Gamble (9.0%). The top 10 companies account for around 60% of the global market, estimated at $9 bn. The market for organic oils in Europe is estimated at 54,000 tonnes. Food is the major application. The use of organic oils in soap will rise as availability improves and the current price premium narrows. Oils and Fats International, Jul 2004, 20 (4), 18-20
COMPANY RESULTS Akzo Nobel Chemicals – operating income up 18% In Akzo Nobel Chemicals, which includes the Surface Chemistry business unit, business volumes and prices were both up 2% in 2Q 2004. Operating income jumped 18% as a result of cost saving. Most of the Chemicals businesses benefited from the active restructuring and costsaving programmes. The group is to close a surfactants manufacturing unit in the UK because of declining profitability (see p 2). The divestment programme for Catalysts, Phosphorus Chemicals and Coating Resins, which will create financial room to manoeuvre for the company, is on track. Akzo Nobel News and Views, 19 Jul 2004 (Akzo Nobel NV, PO Box 9300 6800 SB Arnhem, the Netherlands. Tel: +31 26 3665760. Fax: +31 26 3665850. Website: http://newsandviews.akzonobel.com)
SEPTEMBER 2004
BASF calls for a competitive chemicals policy in Europe The 6th World Surfactants Congress CESIO 2004 was held in Berlin on 20–23 Jun 2004. Those attending discussed the latest developments in the field of surfactants, detergents and cleaners and the applications for these products in the industrial and consumer sectors. The regulatory framework in the European Union – for chemicals in general and, on the occasion of the CESIO congress, for surfactants in particular – was an 6
ON
S U R FA C TA N T S
important topic of discussion. The Deputy Chairman of BASF, Eggert Voscherau, addressed the plenum to outline demands for a chemicals policy that provides the basis for a sustainable chemical industry in Europe. Voscherau is deeply committed to protecting human health and the environment but also fears that the enormous costs and bureaucracy that will be generated by the planned European legislation will pose a threat to the competitiveness of the European chemical industry and its innovative potential. Cefic estimates that the registration and testing of 30,000 individual substances will generate additional costs of €2.3 bn for the chemical industry. The chemical industry accepts the fundamental goals of European chemicals legislation, but there is disagreement between legislators and the industry on the concrete measures that are needed to achieve these goals. Press release from: BASF, Germany. Website: http://www.media.basf.com (21 Jun 2004)
MARKET REVIEWS
Brazilian cleaners industry has hopes for 2004 The Brazilian household cleaners market was so-so in 2003. Some segments did achieve sales of over 36%, but overall the market hardly grew. Growth of 4-5% is expected in 2004. Rising industrial wages and a growing economy could prompt consumers to buy dearer products again. Air fresheners are becoming increasingly popular. Sales of cleaning and related products in Brazil reached Real 7 bn in 2003, a rise of over 6% on 2002. But with inflation running at 9.3%, this actually represented a fall. Sales volume was down 1.5% at 2.79 M tonnes. 2003 was characterized by a switch away from branded products to cheaper noname ones. 55% of producers of the cheaper products were able to expand. The biggest sales rise was in bar-soap used for laundry, which rose 36% to Real 762 M (volume was down 5.3%). Powder detergents rose almost 20% to over Real 2.3 bn (volume up 2.2%). Softeners were up 19% at over Real 517 M, and disinfectants rose 13%. Dishwashing liquids were up 2.5% by volume. Nachrichten fuer Aussenhandel, 6 Jul 2004, (128) (Website: http://www.nfa-online.de) (in German)
How soap can avoid the slippery slope During 2003 soap was the largest single-user of oils and fats in a nonedible application worldwide, with sales of around $24 bn, including $15 bn of laundry soap. The forecast for bar soap is flat or declining, but could be revitalized through the use of aromatherapy oils and natural extracts. The development of soap production and changes in soap composition are discussed together with the personal wash market, market trends and the use of laundry soap. The personal wash market is dominated by Unilever (23.9%), Colgate (10.9%) and Procter & Gamble (9.0%). The top 10 companies account for around 60% of the global market, estimated at $9 bn. The market for organic oils in Europe is estimated at 54,000 tonnes. Food is the major application. The use of organic oils in soap will rise as availability improves and the current price premium narrows. Oils and Fats International, Jul 2004, 20 (4), 18-20
COMPANY RESULTS Akzo Nobel Chemicals – operating income up 18% In Akzo Nobel Chemicals, which includes the Surface Chemistry business unit, business volumes and prices were both up 2% in 2Q 2004. Operating income jumped 18% as a result of cost saving. Most of the Chemicals businesses benefited from the active restructuring and costsaving programmes. The group is to close a surfactants manufacturing unit in the UK because of declining profitability (see p 2). The divestment programme for Catalysts, Phosphorus Chemicals and Coating Resins, which will create financial room to manoeuvre for the company, is on track. Akzo Nobel News and Views, 19 Jul 2004 (Akzo Nobel NV, PO Box 9300 6800 SB Arnhem, the Netherlands. Tel: +31 26 3665760. Fax: +31 26 3665850. Website: http://newsandviews.akzonobel.com)
SEPTEMBER 2004