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Cognis sees its sales rise but earnings fall in 1Q 2007
FOCUS cosmetics and enforcing their denaturation to four substances only. Diethyl phthalate, used for perfumes and cosmetics by most European producers, is not among these substances. As a result most foreign perfumes and cosmetics sales could become illegal. 80% of the 3500 retail traders operating on the market could be out of business. RBK Daily, 14 Jun 2007, (106), 8 (in Russian)
Laundry Small detergent units struggling for survival Small detergent units in Uttar Pradesh are adversely affected by the hike in State sales tax from 8% to 12.5% and an additional 1% development tax. Large quantities of detergents are sold without paying tax and in addition a lot of smuggling takes place from neighbouring states. Three major units with a capacity of 100 tonnes/day have been established in Uttarakhand by ITC, Hindustan Lever and Godrej. These units were originally meant to produce toilet soaps but are now manufacturing detergents, which find their way into Uttar Pradesh. Analysts opine that these factors have made it hard for the small detergent units to survive.
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additives production. The new coowners Viachem (Czech Republic), the bio-fuel producer Campa Biodiesel (Germany) and the financial group PPF Investments (Czech Republic), who jointly acquired Setuza during 1H 2007, should help Setuza’s development. Currently, around 50% of the firm’s turnover is represented by washing powder, toothpaste, edible oil and margarine and the remaining 50% by biocomponents for fuels. During 2Q 2007, Setuza agreed with the state on the solution of a debt of CEK 4 bn. The government will propose the cancellation of distrainment, which was declared for Setuza in the autumn of 2006. Hospodarske Noviny, 21 Jun 2007, 51 (120), 13,14 (in Czech)
PATENTS Henkel patents surfactant granule production method Henkel KGAA has earned Patent No US 7,186,677 B2 for a process of manufacturing anionic surfactant granules having builders. HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 38
Business Standard, 2 May 2007, 9 (259), I.5
Innovation Services patents medical cleaner
Setuza to double washing powder production
Innovation Services Inc has earned Patent No US 7,198,680 B2 for a method of cleaning the contaminated surfaces of surgical waste management equipment involving the use of a rinse solution containing two different nonionic nonylphenol surfactants.
Setuza (Usti nad Labem, Czech Republic) wants to double washing powder production. Another brand will be added to the washing powder brands Merkur and Titan shortly. Setuza is also trying to continue toothpaste production. The previous management sold the firm’s toothpaste brands, including Fluora and Perlicka, to UK pharmaceutical company GlaxoSmithKline (GSK). Currently, Setuza produces toothpaste products for GSK on the basis of a five-year contract. It hopes to extend this contract. It also wants to invest in the extension of stearine production for use in tyre manufacture, and intends to develop food products and move into biofuel 6
HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 38
P&G patents fabric care system Procter and Gamble Co has been granted Patent No US 7,196,048 B2 for a process of rendering a softening and anti-wrinkling effect to fabrics during a laundry cycle. HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 38
ENVIRONMENT & HEALTH US pressure groups target NPE The Washington-based Sierra Club led the petition by environmental and public health groups for the US Environmental Protection Agency (EPA) to curb the use of nonylphenols and nonylphenol ethoxylates (NPEs), which are primarily incorporated in cleaning products. The appeal, which was also signed by the Environmental Law & Policy Center, the Washington Toxics Coalition, and Physicians for Environmental Responsibility, urges the EPA to carry out additional health and safety reviews on NPEs, mandate labelling of products containing nonylphenols and NPEs, and prohibit their incorporation in industrial and consumer detergents. The groups allege that NPEs are endocrine disruptors that are not adequately eliminated by wastewater treatment systems and may have potential negative effects on human health and water quality. The Sierra Club added that even trace amounts of NPEs have negative effects on fish reproduction and sex relations. ICIS Chemical Business, 11 Jun 2007, (Website: http://icischemicalbusiness.com) & Chemical Week, 13 Jun 2007, (Website: http://www.chemweek.com)
COMPANY RESULTS Cognis sees its sales rise but earnings fall in 1Q 2007 Speciality chemicals firm Cognis registered a 1.3% decline in earnings before interest, tax, depreciation and amortization (EBITDA) in 1Q 2007 to €111 M ($149 M). Earnings were negatively affected by the high cost of raw materials and negative issues on hard currency. The growth in care chemicals and oleochemicals caused net sales to expand by 1.7% year on year to €890 M. Organic sales growth was 4.6%. The care chemicals unit recorded a 2.4% increase in revenues to €362 M due primarily to high volumes in innovative specialities and primary surfactants. In nutrition and AUGUST 2007
FOCUS health, turnover climbed by 1.3% to €86 M, with the rise in pharmaceuticals and healthcare compensating for reduced functional foods sales. Sales of the process chemicals unit were unchanged at €64 M. Cognis Oleochemicals, the 50:50 joint venture between Cognis and Golden Hope, saw its 1Q sales rise to €150 M, up by 8.2% from €139 M in 1Q 2006. On an organic basis, growth was €15 M, or 11.1%. All regions contributed to this sales development. ICIS Chemical Business, 4 Jun 2007, (Website: http://icischemicalbusiness.com) & press release from: Cognis Deutschland GmbH & Co KG, Germany. Tel: +49 2173 4995 464. Website: http://www.cognis.com (30 May 2007)
Novozymes 1Q 2007: sales of enzymes For its 1Q 2007, Novozymes A/S has reported sales of DKR 1931 M (DKR 1633 M for its 1Q 2006), of which enzymes contributed DKR 1727 M (DKR 1516 M). Detergent enzymes accounted for sales of DKR 572 M (DKR 505 M in 1Q 2006), technical enzymes DKR 542 M (DKR 453 M), food enzymes DKR 434 M (DKR 387 M) and feed enzymes DKR 179 M (DKR 171 M). Sales of microorganisms reached DKR 84 M in 1Q 2007 (DKR 94 M) and biopharmaceuticals DKR 120 M (DKR 23 M). Novozymes reported that negative exchange rate movements, particularly in the dollar, reduced growth in enzyme sales by 5 percentage points, though sales rose by 19% in local currencies. Sales of enzymes in 1Q 2007 were significantly higher than expected at the beginning of the year. Sales of detergent enzymes in the period rose by 13% in DKR and 16% in local currencies compared with 1Q 2006. This development was mainly due to increased sales of detergent enzymes to Asia and Latin America [Focus on Surfactants, Jul 2007], and a higher market share in Europe. Increased penetration of new products also had a positive impact on growth. Some of the growth is also considered to relate to timing shifts in detergent manufacturers’ purchasing. As a result, Novozymes is increasing the outlook for 2007 sales of both detergent and technical enzymes. The company launched three new products in 1Q 2007: Mannaway, a detergent enzyme, which has now been launched globally [ibid, Mar 2007]; Viscoferm, an AUGUST 2007
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enzyme for the alcohol industry; and HyaCare, an optimized hyaluronic acid for the eyecare medical device market. Around 26% of revenue in 1Q 2007 derived from products launched in the past five years. Novozymes Group Financial Statement 1Q 2007, 25 Apr 2007, 3,5,15 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark. Tel: +45 8824 9999. Fax: +45 8824 9998. Website: http://www.novozymes.com)
COMPANY NEWS Procter & Gamble increases production in Russia Procter & Gamble has three plants in Russia: P&G Novomoskovsk (household chemicals, Moscow region), Kapella (cosmetics, Nizhegorodsk region) and Peterburg Product Inter. In 2006 P&G’s sales in Russia were about $1.3 bn and are expected to rise by 20-30%/y over the next few years. During the last 15 years, P&G has invested around $270 M in Russia. P&G is planning to invest more than $100 M during the next three years to develop its production facilities in Russia. The Russian market for perfumes and cosmetics is $8 bn/y and household chemicals $5 bn/y. P&G accounts for 40% of the household chemicals market in that country. RBK Daily, 6 Jun 2007, (101), 8 (in Russian)
Shaowu Anshengqi Chemical starts production During 2007, four fluorine chemical facilities have been started up in the Shaowu Jintang Fine Chemical Industry Park, Fujian province, China. They include Shaowu Anshengqi Chemical Co Ltd’s plant which produces fluorine surfactants. China Chemical Reporter, 26 May 2007, 18 (15), 14
Clariant announces further price increases Clariant has announced further price increases affecting various product segments of the Textile, Leather & Paper Chemicals, Pigments & Additives as well as Functional Chemicals Divisions with immediate
effect. The continued high level of crude oil prices and energy costs as well as reduced supply for key raw materials due to the closing of several production plants in China to decrease environmental impact is causing an ongoing increase in raw material prices, the company says. Among others, the prices of Dyes, Pigments, Optical Brighteners, Polymer Dispersions, Leather Chemicals and Ethoxylates are being increased by between 5% and 30%. Clariant’s Functional Chemicals Division recently announced price adjustments to address both recent and announced raw material cost increases especially for products containing ethylene, ethylene oxide as well as fatty alcohols and fatty acids. Press release from: Clariant, Rothausstrasse 61, CH4132 Muttenz, Switzerland. Tel: +41 61 469 6745. Fax: +41 61 469 6767. Website: http://www.clariant.com (2 Jul 2007)
Dabur lathers up soaps segment with new launch strategy The Rup 22.34 bn FMCG major Dabur India Ltd plans to focus on its soaps portfolio. The company, which offers the soap brand Vatika in two variants, will introduce more soaps based on the ayurvedic heritage as a health platform under the Dabur brand by 2Q 2007-2008. Vatika, which has variants Honey & Saffron and Sandal & Saffron, will be extended to another variant, Orange Peel & Saffron soap. At present the Vatika brand of soaps is worth Rup 200 M in the total Indian soap market of Rup 45 bn. Business Line, 13 Jun 2007, 14 (163), 5
Corum appoints four North American distributors MG Force, Tempo Canada Inc, Charkit Chemical Corp and Ross Organic Specialty Sales Inc have been designated by Corum Corp as its new distributors in the North American region. Corum, based in Taipei, Taiwan, produces an extensive line of speciality ingredients for personal care products including mild glutamate surfactants and sugar esters. HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 158-159
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Laundry Small detergent units struggling for survival Small detergent units in Uttar Pradesh are adversely affected by the hike in State sales tax from 8% to 12.5% and an additional 1% development tax. Large quantities of detergents are sold without paying tax and in addition a lot of smuggling takes place from neighbouring states. Three major units with a capacity of 100 tonnes/day have been established in Uttarakhand by ITC, Hindustan Lever and Godrej. These units were originally meant to produce toilet soaps but are now manufacturing detergents, which find their way into Uttar Pradesh. Analysts opine that these factors have made it hard for the small detergent units to survive.
ON
S U R FAC TA N T S
additives production. The new coowners Viachem (Czech Republic), the bio-fuel producer Campa Biodiesel (Germany) and the financial group PPF Investments (Czech Republic), who jointly acquired Setuza during 1H 2007, should help Setuza’s development. Currently, around 50% of the firm’s turnover is represented by washing powder, toothpaste, edible oil and margarine and the remaining 50% by biocomponents for fuels. During 2Q 2007, Setuza agreed with the state on the solution of a debt of CEK 4 bn. The government will propose the cancellation of distrainment, which was declared for Setuza in the autumn of 2006. Hospodarske Noviny, 21 Jun 2007, 51 (120), 13,14 (in Czech)
PATENTS Henkel patents surfactant granule production method Henkel KGAA has earned Patent No US 7,186,677 B2 for a process of manufacturing anionic surfactant granules having builders. HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 38
Business Standard, 2 May 2007, 9 (259), I.5
Innovation Services patents medical cleaner
Setuza to double washing powder production
Innovation Services Inc has earned Patent No US 7,198,680 B2 for a method of cleaning the contaminated surfaces of surgical waste management equipment involving the use of a rinse solution containing two different nonionic nonylphenol surfactants.
Setuza (Usti nad Labem, Czech Republic) wants to double washing powder production. Another brand will be added to the washing powder brands Merkur and Titan shortly. Setuza is also trying to continue toothpaste production. The previous management sold the firm’s toothpaste brands, including Fluora and Perlicka, to UK pharmaceutical company GlaxoSmithKline (GSK). Currently, Setuza produces toothpaste products for GSK on the basis of a five-year contract. It hopes to extend this contract. It also wants to invest in the extension of stearine production for use in tyre manufacture, and intends to develop food products and move into biofuel 6
HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 38
P&G patents fabric care system Procter and Gamble Co has been granted Patent No US 7,196,048 B2 for a process of rendering a softening and anti-wrinkling effect to fabrics during a laundry cycle. HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 38
ENVIRONMENT & HEALTH US pressure groups target NPE The Washington-based Sierra Club led the petition by environmental and public health groups for the US Environmental Protection Agency (EPA) to curb the use of nonylphenols and nonylphenol ethoxylates (NPEs), which are primarily incorporated in cleaning products. The appeal, which was also signed by the Environmental Law & Policy Center, the Washington Toxics Coalition, and Physicians for Environmental Responsibility, urges the EPA to carry out additional health and safety reviews on NPEs, mandate labelling of products containing nonylphenols and NPEs, and prohibit their incorporation in industrial and consumer detergents. The groups allege that NPEs are endocrine disruptors that are not adequately eliminated by wastewater treatment systems and may have potential negative effects on human health and water quality. The Sierra Club added that even trace amounts of NPEs have negative effects on fish reproduction and sex relations. ICIS Chemical Business, 11 Jun 2007, (Website: http://icischemicalbusiness.com) & Chemical Week, 13 Jun 2007, (Website: http://www.chemweek.com)
COMPANY RESULTS Cognis sees its sales rise but earnings fall in 1Q 2007 Speciality chemicals firm Cognis registered a 1.3% decline in earnings before interest, tax, depreciation and amortization (EBITDA) in 1Q 2007 to €111 M ($149 M). Earnings were negatively affected by the high cost of raw materials and negative issues on hard currency. The growth in care chemicals and oleochemicals caused net sales to expand by 1.7% year on year to €890 M. Organic sales growth was 4.6%. The care chemicals unit recorded a 2.4% increase in revenues to €362 M due primarily to high volumes in innovative specialities and primary surfactants. In nutrition and AUGUST 2007
FOCUS health, turnover climbed by 1.3% to €86 M, with the rise in pharmaceuticals and healthcare compensating for reduced functional foods sales. Sales of the process chemicals unit were unchanged at €64 M. Cognis Oleochemicals, the 50:50 joint venture between Cognis and Golden Hope, saw its 1Q sales rise to €150 M, up by 8.2% from €139 M in 1Q 2006. On an organic basis, growth was €15 M, or 11.1%. All regions contributed to this sales development. ICIS Chemical Business, 4 Jun 2007, (Website: http://icischemicalbusiness.com) & press release from: Cognis Deutschland GmbH & Co KG, Germany. Tel: +49 2173 4995 464. Website: http://www.cognis.com (30 May 2007)
Novozymes 1Q 2007: sales of enzymes For its 1Q 2007, Novozymes A/S has reported sales of DKR 1931 M (DKR 1633 M for its 1Q 2006), of which enzymes contributed DKR 1727 M (DKR 1516 M). Detergent enzymes accounted for sales of DKR 572 M (DKR 505 M in 1Q 2006), technical enzymes DKR 542 M (DKR 453 M), food enzymes DKR 434 M (DKR 387 M) and feed enzymes DKR 179 M (DKR 171 M). Sales of microorganisms reached DKR 84 M in 1Q 2007 (DKR 94 M) and biopharmaceuticals DKR 120 M (DKR 23 M). Novozymes reported that negative exchange rate movements, particularly in the dollar, reduced growth in enzyme sales by 5 percentage points, though sales rose by 19% in local currencies. Sales of enzymes in 1Q 2007 were significantly higher than expected at the beginning of the year. Sales of detergent enzymes in the period rose by 13% in DKR and 16% in local currencies compared with 1Q 2006. This development was mainly due to increased sales of detergent enzymes to Asia and Latin America [Focus on Surfactants, Jul 2007], and a higher market share in Europe. Increased penetration of new products also had a positive impact on growth. Some of the growth is also considered to relate to timing shifts in detergent manufacturers’ purchasing. As a result, Novozymes is increasing the outlook for 2007 sales of both detergent and technical enzymes. The company launched three new products in 1Q 2007: Mannaway, a detergent enzyme, which has now been launched globally [ibid, Mar 2007]; Viscoferm, an AUGUST 2007
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enzyme for the alcohol industry; and HyaCare, an optimized hyaluronic acid for the eyecare medical device market. Around 26% of revenue in 1Q 2007 derived from products launched in the past five years. Novozymes Group Financial Statement 1Q 2007, 25 Apr 2007, 3,5,15 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark. Tel: +45 8824 9999. Fax: +45 8824 9998. Website: http://www.novozymes.com)
COMPANY NEWS Procter & Gamble increases production in Russia Procter & Gamble has three plants in Russia: P&G Novomoskovsk (household chemicals, Moscow region), Kapella (cosmetics, Nizhegorodsk region) and Peterburg Product Inter. In 2006 P&G’s sales in Russia were about $1.3 bn and are expected to rise by 20-30%/y over the next few years. During the last 15 years, P&G has invested around $270 M in Russia. P&G is planning to invest more than $100 M during the next three years to develop its production facilities in Russia. The Russian market for perfumes and cosmetics is $8 bn/y and household chemicals $5 bn/y. P&G accounts for 40% of the household chemicals market in that country. RBK Daily, 6 Jun 2007, (101), 8 (in Russian)
Shaowu Anshengqi Chemical starts production During 2007, four fluorine chemical facilities have been started up in the Shaowu Jintang Fine Chemical Industry Park, Fujian province, China. They include Shaowu Anshengqi Chemical Co Ltd’s plant which produces fluorine surfactants. China Chemical Reporter, 26 May 2007, 18 (15), 14
Clariant announces further price increases Clariant has announced further price increases affecting various product segments of the Textile, Leather & Paper Chemicals, Pigments & Additives as well as Functional Chemicals Divisions with immediate
effect. The continued high level of crude oil prices and energy costs as well as reduced supply for key raw materials due to the closing of several production plants in China to decrease environmental impact is causing an ongoing increase in raw material prices, the company says. Among others, the prices of Dyes, Pigments, Optical Brighteners, Polymer Dispersions, Leather Chemicals and Ethoxylates are being increased by between 5% and 30%. Clariant’s Functional Chemicals Division recently announced price adjustments to address both recent and announced raw material cost increases especially for products containing ethylene, ethylene oxide as well as fatty alcohols and fatty acids. Press release from: Clariant, Rothausstrasse 61, CH4132 Muttenz, Switzerland. Tel: +41 61 469 6745. Fax: +41 61 469 6767. Website: http://www.clariant.com (2 Jul 2007)
Dabur lathers up soaps segment with new launch strategy The Rup 22.34 bn FMCG major Dabur India Ltd plans to focus on its soaps portfolio. The company, which offers the soap brand Vatika in two variants, will introduce more soaps based on the ayurvedic heritage as a health platform under the Dabur brand by 2Q 2007-2008. Vatika, which has variants Honey & Saffron and Sandal & Saffron, will be extended to another variant, Orange Peel & Saffron soap. At present the Vatika brand of soaps is worth Rup 200 M in the total Indian soap market of Rup 45 bn. Business Line, 13 Jun 2007, 14 (163), 5
Corum appoints four North American distributors MG Force, Tempo Canada Inc, Charkit Chemical Corp and Ross Organic Specialty Sales Inc have been designated by Corum Corp as its new distributors in the North American region. Corum, based in Taipei, Taiwan, produces an extensive line of speciality ingredients for personal care products including mild glutamate surfactants and sugar esters. HAPPI, Household & Personal Products Industry, May 2007, 44 (5), 158-159
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