- Email: [email protected]
El Nino could squeeze oleochemical feedstocks globally
FOCUS ON SURFACTANTS A MONTHLY REPORT FROM CAROLINE EDSER SEPTEMBER 2014
BRAZIL’S MARKETS SCORE SURFACTANT INVESTMENTS
In this issue
RAW MATERIALS 1-2 Elevance Renewable plans Malaysian biorefinery with Genting Plantations
SURFACTANTS
2-3
Air Products extends superwettering surfactants range
ASSOCIATED PRODUCTS
3-4
Clariant launches viscosity modifiers for challenging formulations
APPLICATIONS
4-5
Personal & home care products Health Other
MARKET REVIEWS
5-6
Market trends for household and personal care products in Turkey, Israel and India
COMPANY NEWS
6-7
Evonik undertakes structural reorganization EVENTS
SURFACTANTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
Brazil has been in the global spotlight recently as a result of the Football World Cup, but it has been attracting attention in the surfactants industry as well! This issue includes news of investments by both Stepan and Lubrizol that will expand their surfactant manufacturing footprints in the country. Stepan is acquiring a 30,000 tonnes/y sulfonation unit in Bahia from Procter & Gamble’s Brazilian subsidiary for an unspecified sum. The additional facility will complement Stepan’s existing sulfates and sulfonates factory in Vespasiano (p 2). Berkshire Hathaway company Lubrizol, on the other hand, is investing $20 M to construct a new surfactants manufacturing unit at its existing site in Rio de Janeiro (p 2). According to the company, this will allow it to produce both a greater volume and a greater variety of surfactants to serve local demand. Both Stepan and Lubrizol are of course attracted by the dynamism of the Brazilian market, where the expanding middle class translates to rapidly increasing demand for surfactant-containing household cleaners, detergents and personal care products, such that Brazil is now one of the largest and fastest-growing markets globally for personal and household care products. In fact, elsewhere in the issue we learn, courtesy of data from Euromonitor, that the country now ranks as the second-largest market globally in the hair care, bath and shower, men’s grooming, and baby and child sectors (p 5).
SURFACTANTS
Emerging markets are the target for much of the current investment and acquisitions activity reported in these pages, such as Clariant’s recent spate of innovation-orientated investments in Southeast Asia (p 7). Elevance is similarly planning to site its third biorefinery in Malaysia via a 25:75 venture with resident concern Genting (p 2). This will allow the use of locally sourced palm oil as the feedstock in Elevance’s metathesisbased process for the production of olefins and speciality intermediates. However, the location changes to Europe for the news of food giant Nestle’s planned buyout of L’Oreal’s 50% stake in their Galderma joint venture (p 4). Galderma specializes in the production of soaps, shampoos, shower and bath products, and skin care products. With this acquisition, Nestle will extend its reach in the personal care sector. To handle the expanded range, the company intends to establish a new business, Nestle Skin Health. Caroline Edser
RAW MATERIALS El Nino could squeeze oleochemical feedstocks globally The expected El Nino weather phenomenon in late 2014 may have different effects on biofuels and the oleochemicals feedstock fats and grease markets. It may lead to
SURFACTANTS
SURFACTANTS
F O C US extremely dry conditions over parts of Malaysia and Indonesia, which could consequently result in less oil palm yield than expected in these regions. In Australia, the dry weather may lead ranchers to sell more cows into slaughter, which would have an effect on the supply of bleachable fancy tallow. These effects would consequently result in price hikes for biofuels and oleochemicals feedstock fats. However, the El Nino phenomenon may bring heavy rain to Argentina and Brazil, creating an ideal climate for soybean growers and boosting biodiesel production there. Original Source: ICIS Chemical Business, 2-8 Jun 2014, 285 (21), 28-29 (Website: http://www.icis.com) © Reed Business Information Limited 2014
Elevance teams up with Malaysia’s Genting to build third biorefinery US company Elevance Renewable Sciences has entered into a collaboration with Malaysian group Genting Plantations Berhad through the creation of a new subsidiary called Genting Integrated Biorefinery (GIB). The partners are to build a 240,000 tonnes/y biorefinery in which Elevance will hold a 25% and Genting Plantations Berhad a 75% stake. The proposed biorefinery will be located on the Lahad Datu Palm Oil Industrial Cluster in Sabah, Malaysia. Elevance has granted GIB an exclusive licence to use its proprietary metathesisbased technology [see Focus on Surfactants, Jul 2011], which means palm oil can be used to make highperformance renewable olefins and other speciality chemicals for a wide range of applications, including surfactants, detergents and lubricants. Elevance will be exclusively responsible for the sale of all speciality chemicals that are produced at the biorefinery. Elevance already has a 180,000 tonnes/y biorefinery in Gresik, India, and will open a second making 320,000 tonnes/y biodiesel in Natchez, MS, USA, in 2016. Elevance has a number of existing partners, including Stepan, Versalis [ibid, May & Jul 2014], Wilmar and Arkema. Original Source: Elevance Renewable Sciences, 2014. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 15 Jul 2014, (Website: http://www.specialchem4cosmetics.com). Original Source: Chimie Pharma Hebdo, 21 Jul 2014, (684), (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2014
2
O N
S U R FA C TA N T S
SURFACTANTS Lubrizol to expand surfactant production plant in Brazil Lubrizol Corp has broken ground on a major surfactant plant expansion in Rio de Janeiro, Brazil. Strategically located in Belford Roxo, the new unit is designed to meet the growing demand for household cleaning and personal care products in the Brazilian market. The company says that expansion will allow it to produce a larger portfolio of surfactant products at the facility, including ‘a significant number of naturally derived ingredients’ to ensure that it is aligned with the growth strategy of its targeted customers in Brazil. The estimated investment in the new plant totals more than $20 M and will feature some of the latest equipment in the industry. Brazil is one of the largest and fastest-growing markets for personal care and home care products in the world. Original Source: Lubrizol, website: http://www.lubrizol.com/ (13 Jun 2014) © The Lubrizol Corporation 2014
Stepan to acquire P&G do Brasil’s sulfonation production facility Surfactants firm Stepan Co, through its subsidiary in Brazil, reported that it has reached an agreement with Procter & Gamble (P&G) do Brasil SA to acquire the latter’s sulfonation production facility in Bahia, Brazil, subject to approval by the Brazilian antitrust authorities and by the Industrial Development Superintendence of Bahia State, as well as other customary closing conditions. The facility is located in the northeast region of Brazil and has 30,000 tonnes/y of capacity. The transaction is projected to close in 3Q or 4Q 2014 and the acquisition is expected to have a minimal impact on Stepan’s 2014 financial results. Financial terms of the transaction were not disclosed. Brazil is the world’s fifth most populous country with a growing middle class; as the country’s usage of laundry products transitions from soap bars to powders to liquids, surfactant use expands, Stepan explains. Surfactants used in functional applications, including the large Brazilian agricultural industry,
are also increasing, it says. ‘Brazil is a strategic priority for Stepan; this acquisition is synergistic with our existing Vespasiano, Brazil plant and provides an opportunity to serve the growing northeast of Brazil,’ says the company’s CEO F Quinn Stepan Jr. The Vespasiano factory, located near Belo Horizonte, produces sulfates and sulfonates. Stepan has 1 M tonnes/y surfactants capacity worldwide. In 2013, S America accounted for 8.5% of Stepan’s total turnover, with N America accounting for 62.5%, Europe 24% and Asia 5%. Original Source: Stepan Company, 2014. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 18 Jul 2014, (Website: http://www.specialchem4cosmetics.com). Original Source: Chimie Pharma Hebdo, 21 Jul 2014, (684), (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2014
LC-MS analysis on carbon number distribution of alkylbenzene sulfonic acid detergent for lubricating oil Researchers from Petro China Lanzhou Lubricating Oil have investigated the structure of detergents for lubricating oil. The study focused on the carbon number distribution of alkylbenzene sulfonic acid present in detergents. The structure was analysed through HPLC and LC-MS. Results showed that, under optimal conditions, isomers of alkylbenzene sulfonic acid with a carbon number distribution of around C17-20 can be completely isolated. Original Source: Xiandai Huagong/Modern Chemical Industry, 20 May 2014, 34 (5), 165-167 (Website: http://www.xdhg.com.cn) (in Chinese) © China National Chemical Information Center 2014
Superwetting surfactants from Air Products Superwetting surfactants Dynol 977E and 979E are the latest additions to Air Products’ range for waterborne formulations. These siloxane-based surfactants are designed for siding board coatings. They offer better coverage and levelling performance on rugged surfaces with equal or less dosage used in the formulations. They can also give good system compatibility, and exceptional balance of properties, including very low equilibrium, dynamic surface tension reduction and high atomization. They are easy to handle, practically SEPTEMBER 2014
BRAZIL’S MARKETS SCORE SURFACTANT INVESTMENTS
In this issue
RAW MATERIALS 1-2 Elevance Renewable plans Malaysian biorefinery with Genting Plantations
SURFACTANTS
2-3
Air Products extends superwettering surfactants range
ASSOCIATED PRODUCTS
3-4
Clariant launches viscosity modifiers for challenging formulations
APPLICATIONS
4-5
Personal & home care products Health Other
MARKET REVIEWS
5-6
Market trends for household and personal care products in Turkey, Israel and India
COMPANY NEWS
6-7
Evonik undertakes structural reorganization EVENTS
SURFACTANTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
Brazil has been in the global spotlight recently as a result of the Football World Cup, but it has been attracting attention in the surfactants industry as well! This issue includes news of investments by both Stepan and Lubrizol that will expand their surfactant manufacturing footprints in the country. Stepan is acquiring a 30,000 tonnes/y sulfonation unit in Bahia from Procter & Gamble’s Brazilian subsidiary for an unspecified sum. The additional facility will complement Stepan’s existing sulfates and sulfonates factory in Vespasiano (p 2). Berkshire Hathaway company Lubrizol, on the other hand, is investing $20 M to construct a new surfactants manufacturing unit at its existing site in Rio de Janeiro (p 2). According to the company, this will allow it to produce both a greater volume and a greater variety of surfactants to serve local demand. Both Stepan and Lubrizol are of course attracted by the dynamism of the Brazilian market, where the expanding middle class translates to rapidly increasing demand for surfactant-containing household cleaners, detergents and personal care products, such that Brazil is now one of the largest and fastest-growing markets globally for personal and household care products. In fact, elsewhere in the issue we learn, courtesy of data from Euromonitor, that the country now ranks as the second-largest market globally in the hair care, bath and shower, men’s grooming, and baby and child sectors (p 5).
SURFACTANTS
Emerging markets are the target for much of the current investment and acquisitions activity reported in these pages, such as Clariant’s recent spate of innovation-orientated investments in Southeast Asia (p 7). Elevance is similarly planning to site its third biorefinery in Malaysia via a 25:75 venture with resident concern Genting (p 2). This will allow the use of locally sourced palm oil as the feedstock in Elevance’s metathesisbased process for the production of olefins and speciality intermediates. However, the location changes to Europe for the news of food giant Nestle’s planned buyout of L’Oreal’s 50% stake in their Galderma joint venture (p 4). Galderma specializes in the production of soaps, shampoos, shower and bath products, and skin care products. With this acquisition, Nestle will extend its reach in the personal care sector. To handle the expanded range, the company intends to establish a new business, Nestle Skin Health. Caroline Edser
RAW MATERIALS El Nino could squeeze oleochemical feedstocks globally The expected El Nino weather phenomenon in late 2014 may have different effects on biofuels and the oleochemicals feedstock fats and grease markets. It may lead to
SURFACTANTS
SURFACTANTS
F O C US extremely dry conditions over parts of Malaysia and Indonesia, which could consequently result in less oil palm yield than expected in these regions. In Australia, the dry weather may lead ranchers to sell more cows into slaughter, which would have an effect on the supply of bleachable fancy tallow. These effects would consequently result in price hikes for biofuels and oleochemicals feedstock fats. However, the El Nino phenomenon may bring heavy rain to Argentina and Brazil, creating an ideal climate for soybean growers and boosting biodiesel production there. Original Source: ICIS Chemical Business, 2-8 Jun 2014, 285 (21), 28-29 (Website: http://www.icis.com) © Reed Business Information Limited 2014
Elevance teams up with Malaysia’s Genting to build third biorefinery US company Elevance Renewable Sciences has entered into a collaboration with Malaysian group Genting Plantations Berhad through the creation of a new subsidiary called Genting Integrated Biorefinery (GIB). The partners are to build a 240,000 tonnes/y biorefinery in which Elevance will hold a 25% and Genting Plantations Berhad a 75% stake. The proposed biorefinery will be located on the Lahad Datu Palm Oil Industrial Cluster in Sabah, Malaysia. Elevance has granted GIB an exclusive licence to use its proprietary metathesisbased technology [see Focus on Surfactants, Jul 2011], which means palm oil can be used to make highperformance renewable olefins and other speciality chemicals for a wide range of applications, including surfactants, detergents and lubricants. Elevance will be exclusively responsible for the sale of all speciality chemicals that are produced at the biorefinery. Elevance already has a 180,000 tonnes/y biorefinery in Gresik, India, and will open a second making 320,000 tonnes/y biodiesel in Natchez, MS, USA, in 2016. Elevance has a number of existing partners, including Stepan, Versalis [ibid, May & Jul 2014], Wilmar and Arkema. Original Source: Elevance Renewable Sciences, 2014. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 15 Jul 2014, (Website: http://www.specialchem4cosmetics.com). Original Source: Chimie Pharma Hebdo, 21 Jul 2014, (684), (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2014
2
O N
S U R FA C TA N T S
SURFACTANTS Lubrizol to expand surfactant production plant in Brazil Lubrizol Corp has broken ground on a major surfactant plant expansion in Rio de Janeiro, Brazil. Strategically located in Belford Roxo, the new unit is designed to meet the growing demand for household cleaning and personal care products in the Brazilian market. The company says that expansion will allow it to produce a larger portfolio of surfactant products at the facility, including ‘a significant number of naturally derived ingredients’ to ensure that it is aligned with the growth strategy of its targeted customers in Brazil. The estimated investment in the new plant totals more than $20 M and will feature some of the latest equipment in the industry. Brazil is one of the largest and fastest-growing markets for personal care and home care products in the world. Original Source: Lubrizol, website: http://www.lubrizol.com/ (13 Jun 2014) © The Lubrizol Corporation 2014
Stepan to acquire P&G do Brasil’s sulfonation production facility Surfactants firm Stepan Co, through its subsidiary in Brazil, reported that it has reached an agreement with Procter & Gamble (P&G) do Brasil SA to acquire the latter’s sulfonation production facility in Bahia, Brazil, subject to approval by the Brazilian antitrust authorities and by the Industrial Development Superintendence of Bahia State, as well as other customary closing conditions. The facility is located in the northeast region of Brazil and has 30,000 tonnes/y of capacity. The transaction is projected to close in 3Q or 4Q 2014 and the acquisition is expected to have a minimal impact on Stepan’s 2014 financial results. Financial terms of the transaction were not disclosed. Brazil is the world’s fifth most populous country with a growing middle class; as the country’s usage of laundry products transitions from soap bars to powders to liquids, surfactant use expands, Stepan explains. Surfactants used in functional applications, including the large Brazilian agricultural industry,
are also increasing, it says. ‘Brazil is a strategic priority for Stepan; this acquisition is synergistic with our existing Vespasiano, Brazil plant and provides an opportunity to serve the growing northeast of Brazil,’ says the company’s CEO F Quinn Stepan Jr. The Vespasiano factory, located near Belo Horizonte, produces sulfates and sulfonates. Stepan has 1 M tonnes/y surfactants capacity worldwide. In 2013, S America accounted for 8.5% of Stepan’s total turnover, with N America accounting for 62.5%, Europe 24% and Asia 5%. Original Source: Stepan Company, 2014. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 18 Jul 2014, (Website: http://www.specialchem4cosmetics.com). Original Source: Chimie Pharma Hebdo, 21 Jul 2014, (684), (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2014
LC-MS analysis on carbon number distribution of alkylbenzene sulfonic acid detergent for lubricating oil Researchers from Petro China Lanzhou Lubricating Oil have investigated the structure of detergents for lubricating oil. The study focused on the carbon number distribution of alkylbenzene sulfonic acid present in detergents. The structure was analysed through HPLC and LC-MS. Results showed that, under optimal conditions, isomers of alkylbenzene sulfonic acid with a carbon number distribution of around C17-20 can be completely isolated. Original Source: Xiandai Huagong/Modern Chemical Industry, 20 May 2014, 34 (5), 165-167 (Website: http://www.xdhg.com.cn) (in Chinese) © China National Chemical Information Center 2014
Superwetting surfactants from Air Products Superwetting surfactants Dynol 977E and 979E are the latest additions to Air Products’ range for waterborne formulations. These siloxane-based surfactants are designed for siding board coatings. They offer better coverage and levelling performance on rugged surfaces with equal or less dosage used in the formulations. They can also give good system compatibility, and exceptional balance of properties, including very low equilibrium, dynamic surface tension reduction and high atomization. They are easy to handle, practically SEPTEMBER 2014