Farabi plans petrochemicals complex in Saudi Arabia

F O C U S of years (the earliest mention I can find in Focus on Surfactants is in 2008, though the term was first coined by economists in 2001). Investment activity in the surfactants industry certainly shows a definite BRIC slant – for example, Evonik is building new surfactants plants in both Brazil [ibid, Jun 2013] and China (p 3), and Solvay acquired Indian surfactants producer Sunshield Chemicals and is pursuing its collaboration with Sibur to produce surfactants in Russia [ibid, Dec 2012]. Now, however, I gather we need to extend our attention to the ‘MINT’ countries – Mexico, Indonesia, Nigeria and Turkey. Looking through recent issues, we have Oxiteno’s above-mentioned expansion and Clariant’s new Industrial & Consumer Specialties plant in Mexico [ibid, Mar 2013]. Kao recently completed a new plant in Indonesia [ibid, Sep 2013] while Evonik expanded its plant there. Only a couple of items in the past year mention Nigeria but 9 discuss Turkish markets or developments, including the news that Turkey’s Evyap Sabun is due to start up an oleochemicals and personal care products plant in Malaysia in the coming months [ibid, Nov 2013]. So, while I only came across the term MINT about a month back (courtesy of an item on the BBC), it seems the surfactants industry already has its finger on that particular pulse! Given the amount of investment in new and expanded facilities, perhaps it is not surprising that the level of mergers & acquisitions (M&A) activity in the surfactants and related industries has been rather muted in the past 12 or so months – certainly there have been no ‘scene-stealing’ deals such as Solvay’s purchase of Rhodia [ibid, Jun 2011]. However, some smaller-scale M&A transactions have taken place. Clariant and Croda have both made acquisitions to boost their personal care lines. Clariant of course has also just divested its detergents unit to ICIG (p 7). Oxiteno’s bid to buy Uruguay’s American Chemical, which was reported as complete in Feb 2013, was then scrutinized by Brazil’s antitrust regulator CADE [ibid, Jul 2013] but given the go-ahead in Nov 2013. In Dubai, Anichem acquired a LAS plant as part of its purchase of Sasol subsidiary Sasol Gulf, while 2

O N

S U R FA C TA N T S

Henkel acquired PZ Cussons homecare brands in Poland. There is so much more I could discuss – I haven’t even mentioned the past year’s healthy crop of new products – but space is limited. I wish you all good fortune in the year ahead and look forward to reporting the upcoming developments in the surfactants industry. Caroline Edser

RAW MATERIALS Linear alkylbenzene/ alpha-olefins Farabi plans petrochemicals complex in Saudi Arabia Farabi Petrochemicals is planning a complex in Saudi Arabia called Jazan Petrochemicals. This will include a world-scale linear alkylbenzene (LAB) factory with downstream units making speciality chemicals derived from diesel feedstock. Farabi recently signed a contract to this end with engineering group Foster Wheeler covering concept development, technology recommendations for aromatic solvents production and the treatment of heavy hydrocarbons, investment cost estimates and proposals for front-end engineering design. The value of the contract was not disclosed. Foster Wheeler expects to submit its findings during 1Q 2014. Farabi Petrochemicals currently operates in Jubail, Saudi Arabia. Its existing chemicals complex includes paraffin units and two production units for LAB [Focus on Surfactants, Mar & Aug 2012]. Original Source: Chimie Pharma Hebdo, 28 Oct 2013, (652), (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2013

Chevron Phillips Chemical completes NAO expansion study at Cedar Bayou plant and advances expansion plans Chevron Phillips Chemical Co LP announced the completion of its study to expand normal alpha-olefin (NAO) capacity at its Cedar Bayou plant in Baytown, TX, USA, and receipt of approval to proceed with detailed

engineering, design and procurement of long-lead equipment. The capacity expansion is targeting a 20% minimum increase in a phased approach. Final project approval will be sought in 1Q 2014. Construction would be targeted to commence in 1Q 2014, and the project would be completed in 2Q 2015. Normal alphaolefins and their derivatives are used extensively as polyethylene comonomers, plasticizers, synthetic motor oils, lubricants, automotive additives, surfactants, paper sizing, and in a wide range of speciality applications. Original Source: Chevron Philips Chemical Co, website: http://cpchem.com, (5 Nov 2013) © Chevron Phillips Chemical Company 2013

Oleochemicals/other Palm oil production While global production of palm oil is forecast to increase 5% from 55.3 M tonnes in 2012/2013 to 58.1 M tonnes in 2013/2014, palm oil stocks are forecast to grow by 21% year on year to 9.55 M tonnes due to increased production in Indonesia. Production in the country is forecast to be 9% higher year on year at 31 M tonnes. Original Source: Oils and Fats International, Aug-Sep 2013, 29 (7), 40 (Website: http://www.oilsandfatsinternational.com) © Quartz Business Media Ltd 2013

From fat to fuel The European Parliament’s environment, public health, and food safety committee approved the European Commission’s amendments to EU directives 98/70/EC and 2009/28/EC on 10 Jul 2013. One provision involved doubling the amount of animal fats towards the EU’s renewable energy directive (RED) target, which requires 10% of transport energy be sourced from renewable energy. Allied Products Group (APAG) displayed opposition to this provision, claiming it would trigger diversion of rendered animal fats into biofuels, which would lead the oleochemical industry to shift further to palm oil and thus worsen environmental problems. The entire parliament was to reconsider the matter on 9 Sep 2013. Germany’s biofuels policy has already been amended, putting a limit on cropJANUARY 2014