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Asian oleochemicals, company strategies and megatrends
FOCUS ON SURFACTANTS A MONTHLY REPORT FROM CAROLINE EDSER FEBRUARY 2012
ASIAN OLEOCHEMICALS, COMPANY STRATEGIES AND MEGATRENDS
In this issue
RAW MATERIALS
1-3
Asian oleochemicals sector attractive for companies willing to invest
SURFACTANTS
3
ASSOCIATED PRODUCTS
3
Dow Corning announces sustainable soy wax produced using green chemistry process
APPLICATIONS
3-5
Save money on your laundry
LEGISLATION MARKET REVIEWS
5-6 6
Lessons for the chemical industry from consumer markets
COMPANY RESULTS
6-7
Diversifieds still growing
COMPANY NEWS
7
BASF further develops its corporate strategy
EVENTS
SURFACTANTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
Key themes in this issue of Focus on Surfactants include growth of the oleochemicals sector in Asia, corporate strategies being adopted by chemical companies, and, what may prove to be a new word for some, the “megatrend”. Although Southeast Asia has long been a source of raw materials such as palm oil and coconut oil, it is only within the past 20 years that production of oleochemicals such as fatty acids and alcohols has been carried out in the region to any significant extent (p 1-2). Investors that can provide either new technology and/or financial backing via mergers/acquisitions have the opportunity to tap into a growing sector that is being driven primarily by increased demand for surfactant-based products within Asia itself. Lion Eco Chemical, an Asian producer, has predicted that the global market for surfactants will more than double to 30 M tonnes in volume terms by 2030 (p 3), with Asia accounting for most of the increase. Key elements of the strategy being adopted by BASF, the largest chemical company globally, include a focus on sustainable development, innovative new materials, and expansion of its portfolio (p 7). Sustainability and corporate responsibility are also important components of Clariant’s strategy (p 4). According to a new eBook published last year, successful companies will be those that develop products that benefit society as a whole, as opposed to those focused only on improving their bottom line (p 6). In contrast CEPSA Quimica, the Spanish firm, is aiming to grow by increasing its capacity, including that for linear alkylbenzenes, and geographic
SURFACTANTS
expansion via acquisitions (p 2). A strategy of diversification remains attractive for many chemical companies (p 6), whereas speciality chemical companies are seeking to adapt to the ongoing difficult economic climate by focusing on innovation, emerging markets, and global megatrends (p 6-7). So what are these megatrends? As already mentioned, sustainable development is described by Clariant as a key megatrend by which it will seek to use renewable raw materials such as biomass and organic waste (p 4). According to the report on the eBook (p 6), global megatrends comprise the opportunities provided by the ageing Western population and the requirements for improved water quality, increased food production, and reduced greenhouse gas emissions. DuPont is cited as an example of a company that has realigned its business to take account of these megatrends, in addition to focusing on emerging markets (p 6). The impact of these megatrends on the surfactants sector remains to be seen. This issue edited by Dr Alan Skull
RAW MATERIALS Oleochemicals Asian oleochemicals sector attractive for companies willing to invest in new technology, M&A Strong growth is projected for Southeast Asia’s oleochemicals sector
SURFACTANTS
SURFACTANTS
ASIAN OLEOCHEMICALS, COMPANY STRATEGIES AND MEGATRENDS
In this issue
RAW MATERIALS
1-3
Asian oleochemicals sector attractive for companies willing to invest
SURFACTANTS
3
ASSOCIATED PRODUCTS
3
Dow Corning announces sustainable soy wax produced using green chemistry process
APPLICATIONS
3-5
Save money on your laundry
LEGISLATION MARKET REVIEWS
5-6 6
Lessons for the chemical industry from consumer markets
COMPANY RESULTS
6-7
Diversifieds still growing
COMPANY NEWS
7
BASF further develops its corporate strategy
EVENTS
SURFACTANTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
Key themes in this issue of Focus on Surfactants include growth of the oleochemicals sector in Asia, corporate strategies being adopted by chemical companies, and, what may prove to be a new word for some, the “megatrend”. Although Southeast Asia has long been a source of raw materials such as palm oil and coconut oil, it is only within the past 20 years that production of oleochemicals such as fatty acids and alcohols has been carried out in the region to any significant extent (p 1-2). Investors that can provide either new technology and/or financial backing via mergers/acquisitions have the opportunity to tap into a growing sector that is being driven primarily by increased demand for surfactant-based products within Asia itself. Lion Eco Chemical, an Asian producer, has predicted that the global market for surfactants will more than double to 30 M tonnes in volume terms by 2030 (p 3), with Asia accounting for most of the increase. Key elements of the strategy being adopted by BASF, the largest chemical company globally, include a focus on sustainable development, innovative new materials, and expansion of its portfolio (p 7). Sustainability and corporate responsibility are also important components of Clariant’s strategy (p 4). According to a new eBook published last year, successful companies will be those that develop products that benefit society as a whole, as opposed to those focused only on improving their bottom line (p 6). In contrast CEPSA Quimica, the Spanish firm, is aiming to grow by increasing its capacity, including that for linear alkylbenzenes, and geographic
SURFACTANTS
expansion via acquisitions (p 2). A strategy of diversification remains attractive for many chemical companies (p 6), whereas speciality chemical companies are seeking to adapt to the ongoing difficult economic climate by focusing on innovation, emerging markets, and global megatrends (p 6-7). So what are these megatrends? As already mentioned, sustainable development is described by Clariant as a key megatrend by which it will seek to use renewable raw materials such as biomass and organic waste (p 4). According to the report on the eBook (p 6), global megatrends comprise the opportunities provided by the ageing Western population and the requirements for improved water quality, increased food production, and reduced greenhouse gas emissions. DuPont is cited as an example of a company that has realigned its business to take account of these megatrends, in addition to focusing on emerging markets (p 6). The impact of these megatrends on the surfactants sector remains to be seen. This issue edited by Dr Alan Skull
RAW MATERIALS Oleochemicals Asian oleochemicals sector attractive for companies willing to invest in new technology, M&A Strong growth is projected for Southeast Asia’s oleochemicals sector
SURFACTANTS
SURFACTANTS