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Insights into the european surfactants market
FOCUS ON SURFACTANTS A MONTHLY REPORT FROM CAROLINE EDSER JUNE 2013
INSIGHTS INTO THE EUROPEAN SURFACTANTS MARKET
In this issue
RAW MATERIALS
2
Idemitsu & Mitsui plan US alpha-olefins plant Solvay to build alkoxylation facility in Singapore
SURFACTANTS
2-3
New products from Dow, Evonik and Soliance
ASSOCIATED PRODUCTS
4
Builders Other
APPLICATIONS
4-6
Personal care products Laundry products Other
MARKET REVIEWS
6
Eastern Europe’s C&T markets
COMPANY RESULTS
6-7
Restated figures from BASF
COMPANY NEWS
7
Clariant unveils EcoTain approach to sustainable innovation
EVENTS
SURFACTANTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
The first ICIS European Surfactants Conference held in Budapest, Hungary in September 2012 covered a range of topics applicable to the surfactants industry worldwide, but also provided the opportunity to focus in depth on the status and development of markets within Europe. Nikola Matic of Kline & Co discussed speciality surfactants in personal care, with a particular focus on the European market. Europe remains the largest market for finished goods in this sector, and speciality surfactants are the largest class by volume (>40%) among the different types of speciality ingredients used in European personal care products. Some 120,000 tonnes of speciality surfactants valued at c €300 M were consumed by the sector in 2011, according to Matic. Hair care is the largest end-use application by both volume and value in the region, but its growth rate lags behind skin care. As a result of its acquisition of Cognis, BASF is dominant among the suppliers of speciality surfactants in the European market, holding the lead position in both anionics (the largest class in Europe) and nonionics, and second place in amphoterics behind Evonik. Croda is the leading supplier of cationics, which is currently the fastest-growing class of speciality surfactants in Europe. The other top 3 suppliers in the 4 surfactant classes are Huntsman, Clariant and Seppic. In terms of sales value, betaines dominate the amphoterics class and cetrimonium chloride the cationics, while the other classes are more
SURFACTANTS
fragmented. John Madden from Euromonitor also considered market developments in European consumer personal care products. Henrik Møller Jørgensen of Mintel analysed the trends in household cleaning products. He provided interesting insights into the differences between Western and Eastern European consumers in terms of average spend and product type preferences for laundry detergents, fabric conditioners, dishwashing products and hard surface cleaners. For example, powdered detergents and concentrated fabric conditioners both command a far higher market share in the East than in the West. Unilever’s Peter Smith added to the picture from the perspective of an end user. He cited a figure of 3 M tonnes for Europe’s annual surfactants’ consumption, with household and personal care accounting for 65%, before homing in on the laundry markets of Western and Eastern Europe. Looking ahead to 2020, he foresees the continued presence of multiple formats in this sector but with an increased emphasis on compaction, low-temperature washing and the use of biosurfactants. Sebastian Budniak of Poland’s PCC Exol provided a rather different viewpoint – that of an Eastern European producer of surfactants. After detailing the company’s capabilities and products, he went on to examine the Eastern European market. Regional demand for surfactants was estimated at 750,000 tonnes in 2010 and predicted to rise to about 930,000 tonnes in 2018 at an
SURFACTANTS
SURFACTANTS
FOCUS AAGR of around 3% (compared to an expected AAGR of about 0.5% for Western Europe). In terms of regional production, little difference is seen in the percentage share of the output between 2010 and 2018, with nonionics the largest segment closely followed by anionics. Citing data from Ceresana Research, Budniak reported that Eastern Europe will remain a net importer of surfactants for the foreseeable future. A closer look at demand by application area for Poland, Russia, Turkey and the rest of the region indicated some country-to country variation but revealed the region-wide dominance of the detergents & cleaners segment. In Russia and Turkey, the second largest segment is personal care but in Poland and the rest of the region industrial cleaners fill this position. Other presentations also covered the Russian, Hungarian and Turkish markets in greater depth. Away from the examination of markets [see also Focus on Surfactants, Apr 2013], the topic of sustainability was dealt with in particular by speakers from surfactants producer BASF and household products manufacturer Ecover, while feedstock issues were discussed by representatives from Dow Chemical, Farabi and Nexant. Caroline Edser
RAW MATERIALS IndianOil to expand LAB capacity in 2015-2016 Indian Oil Corp Ltd (IndianOil) plans to raise the capacity of its linear alkylbenzene (LAB) plant in Koyali near Vadodara in Gujarat, India by 42,000 tonnes in 2015-2016. After the expansion, LAB capacity will expand to 162,000 tonnes/y. The plant started operating in 2004 [Focus on Surfactants, Oct 2004]. In related LAB news, the planned month-long turnaround at Reliance Industries’ 60,000 tonne/y LAB plant in Vadodara had to be extended for two weeks due to unexpected technical issues. LAB supply in India’s
2
ON
S U R FA C TA N T S
domestic market tightened due to the extended turnaround. The company hoped to restart the plant by the end of March. Original Source: ICIS Chemical Business, 25 Mar 2013, (Website: http://icischemicalbusiness.com) © Reed Business Information Limited 2013
Idemitsu, Mitsui plan US linear alphaolefins complex and sign agreement with Dow Japanese companies Idemitsu Kosan and Mitsui & Co have signed an agreement to carry out a joint feasibility study for a possible linear alpha-olefins complex in the USA. Location options are also being explored. A decision will be taken in 2014 following detailed engineering studies. If the outcome is positive, Idemitsu and Mitsui intend to set up a 50:50 joint venture to build a worldscale 330,000 tonnes/y complex to open in 2016. The investment needed for the project has not been announced but Bloomberg estimates a total cost of around Yen 100 bn (more than €800 M). Idemitsu and Mitsui have already signed an initial agreement with Dow Chemical for the long-term supply of feedstock ethylene for the plant. The US firm will provide ethylene from future capacity planned in the region. Dow expects to open a steam cracker at Freeport, TX by 2017. Idemitsu and Mitsui will in turn reserve a large part of the linear alpha-olefin output for Dow’s performance plastics production in the Gulf of Mexico region. Alpha-olefins find application in detergents, lubricants and paper chemicals and as resin additives. Original Source: Chimie Pharma Hebdo, 25 Mar 2013, (627), (Website: http://www.industrie.com/chimie) (in French) © ETAI Information 2013. Original Source: Chemical Engineering World, Mar 2013, 48 (3), 30 (Website: http://www.cewindia.com/) © Jasubhai Group 2013. Original Source: Dow Chemical Co, 2030, Dow Centre, Midland, MI 48642, USA, tel: +1 989 636 1000, fax: +1 989 636 3518, website: http://www.dow.com (18 Mar 2013) © The Dow Chemical Company 2013
Alkoxylates Solvay announces project to build large-scale alkoxylation facility in Singapore Solvay has announced that it will build a large-scale alkoxylation facility in
Singapore. It is expected to start operations by 2015 and will serve the fast-growing Asian market in home & personal care, coatings, industrial, agrochemicals and oil and gas. The facility will be connected to Shell’s new High Purity Ethylene Oxide (HPEO) unit located in the worldclass, integrated petrochemical hub of Jurong Island [see also, Focus on Surfactants, Mar 2011]. Through the alkoxylation process, key monomers are produced that serve downstream surfactants development and manufacturing. ‘This project is part of our aggressive growth strategy in Asia and solidifies our speciality surfactant production,’ says Emmanuel Butstraen, president of Solvay Novecare. ‘In addition to greatly expanding our alkoxylation footprint in Asia, the facility demonstrates Novecare’s ambition to be the world leader in delivering innovative surfactant solutions to our customers on a global basis.’ The investment comes after Solvay announced that it would build a speciality surfactants plant near Berlin, serving the Central and Eastern European markets (p 3). Solvay Novecare is already Asia’s largest manufacturer of speciality surfactants, with 11 production sites and two R&D centres in Singapore and Shanghai. The new plant will produce speciality alkoxylate surfactants that deliver targeted cleansing, dispersing, defoaming and emulsifying performance attributes in formulations. Original Source: Solvay SA, website: http://www.solvay.com (16 Apr 2013) © Solvay 2013
SURFACTANTS Dow introduces EcoSense 3000 surfactant at in-cosmetics Europe Dow launched EcoSense 3000 Surfactant at in-cosmetics Europe, further demonstrating its ‘commitment to delivering excellent technologies and sustainably advantaged solutions to meet consumers’ preferences’, it says. Naturally-derived EcoSense 3000 Surfactant (INCI name: decyl glucoside), an addition to Dow’s alkyl polyglucosides portfolio, offers formulators another readily
JUNE 2013
INSIGHTS INTO THE EUROPEAN SURFACTANTS MARKET
In this issue
RAW MATERIALS
2
Idemitsu & Mitsui plan US alpha-olefins plant Solvay to build alkoxylation facility in Singapore
SURFACTANTS
2-3
New products from Dow, Evonik and Soliance
ASSOCIATED PRODUCTS
4
Builders Other
APPLICATIONS
4-6
Personal care products Laundry products Other
MARKET REVIEWS
6
Eastern Europe’s C&T markets
COMPANY RESULTS
6-7
Restated figures from BASF
COMPANY NEWS
7
Clariant unveils EcoTain approach to sustainable innovation
EVENTS
SURFACTANTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
The first ICIS European Surfactants Conference held in Budapest, Hungary in September 2012 covered a range of topics applicable to the surfactants industry worldwide, but also provided the opportunity to focus in depth on the status and development of markets within Europe. Nikola Matic of Kline & Co discussed speciality surfactants in personal care, with a particular focus on the European market. Europe remains the largest market for finished goods in this sector, and speciality surfactants are the largest class by volume (>40%) among the different types of speciality ingredients used in European personal care products. Some 120,000 tonnes of speciality surfactants valued at c €300 M were consumed by the sector in 2011, according to Matic. Hair care is the largest end-use application by both volume and value in the region, but its growth rate lags behind skin care. As a result of its acquisition of Cognis, BASF is dominant among the suppliers of speciality surfactants in the European market, holding the lead position in both anionics (the largest class in Europe) and nonionics, and second place in amphoterics behind Evonik. Croda is the leading supplier of cationics, which is currently the fastest-growing class of speciality surfactants in Europe. The other top 3 suppliers in the 4 surfactant classes are Huntsman, Clariant and Seppic. In terms of sales value, betaines dominate the amphoterics class and cetrimonium chloride the cationics, while the other classes are more
SURFACTANTS
fragmented. John Madden from Euromonitor also considered market developments in European consumer personal care products. Henrik Møller Jørgensen of Mintel analysed the trends in household cleaning products. He provided interesting insights into the differences between Western and Eastern European consumers in terms of average spend and product type preferences for laundry detergents, fabric conditioners, dishwashing products and hard surface cleaners. For example, powdered detergents and concentrated fabric conditioners both command a far higher market share in the East than in the West. Unilever’s Peter Smith added to the picture from the perspective of an end user. He cited a figure of 3 M tonnes for Europe’s annual surfactants’ consumption, with household and personal care accounting for 65%, before homing in on the laundry markets of Western and Eastern Europe. Looking ahead to 2020, he foresees the continued presence of multiple formats in this sector but with an increased emphasis on compaction, low-temperature washing and the use of biosurfactants. Sebastian Budniak of Poland’s PCC Exol provided a rather different viewpoint – that of an Eastern European producer of surfactants. After detailing the company’s capabilities and products, he went on to examine the Eastern European market. Regional demand for surfactants was estimated at 750,000 tonnes in 2010 and predicted to rise to about 930,000 tonnes in 2018 at an
SURFACTANTS
SURFACTANTS
FOCUS AAGR of around 3% (compared to an expected AAGR of about 0.5% for Western Europe). In terms of regional production, little difference is seen in the percentage share of the output between 2010 and 2018, with nonionics the largest segment closely followed by anionics. Citing data from Ceresana Research, Budniak reported that Eastern Europe will remain a net importer of surfactants for the foreseeable future. A closer look at demand by application area for Poland, Russia, Turkey and the rest of the region indicated some country-to country variation but revealed the region-wide dominance of the detergents & cleaners segment. In Russia and Turkey, the second largest segment is personal care but in Poland and the rest of the region industrial cleaners fill this position. Other presentations also covered the Russian, Hungarian and Turkish markets in greater depth. Away from the examination of markets [see also Focus on Surfactants, Apr 2013], the topic of sustainability was dealt with in particular by speakers from surfactants producer BASF and household products manufacturer Ecover, while feedstock issues were discussed by representatives from Dow Chemical, Farabi and Nexant. Caroline Edser
RAW MATERIALS IndianOil to expand LAB capacity in 2015-2016 Indian Oil Corp Ltd (IndianOil) plans to raise the capacity of its linear alkylbenzene (LAB) plant in Koyali near Vadodara in Gujarat, India by 42,000 tonnes in 2015-2016. After the expansion, LAB capacity will expand to 162,000 tonnes/y. The plant started operating in 2004 [Focus on Surfactants, Oct 2004]. In related LAB news, the planned month-long turnaround at Reliance Industries’ 60,000 tonne/y LAB plant in Vadodara had to be extended for two weeks due to unexpected technical issues. LAB supply in India’s
2
ON
S U R FA C TA N T S
domestic market tightened due to the extended turnaround. The company hoped to restart the plant by the end of March. Original Source: ICIS Chemical Business, 25 Mar 2013, (Website: http://icischemicalbusiness.com) © Reed Business Information Limited 2013
Idemitsu, Mitsui plan US linear alphaolefins complex and sign agreement with Dow Japanese companies Idemitsu Kosan and Mitsui & Co have signed an agreement to carry out a joint feasibility study for a possible linear alpha-olefins complex in the USA. Location options are also being explored. A decision will be taken in 2014 following detailed engineering studies. If the outcome is positive, Idemitsu and Mitsui intend to set up a 50:50 joint venture to build a worldscale 330,000 tonnes/y complex to open in 2016. The investment needed for the project has not been announced but Bloomberg estimates a total cost of around Yen 100 bn (more than €800 M). Idemitsu and Mitsui have already signed an initial agreement with Dow Chemical for the long-term supply of feedstock ethylene for the plant. The US firm will provide ethylene from future capacity planned in the region. Dow expects to open a steam cracker at Freeport, TX by 2017. Idemitsu and Mitsui will in turn reserve a large part of the linear alpha-olefin output for Dow’s performance plastics production in the Gulf of Mexico region. Alpha-olefins find application in detergents, lubricants and paper chemicals and as resin additives. Original Source: Chimie Pharma Hebdo, 25 Mar 2013, (627), (Website: http://www.industrie.com/chimie) (in French) © ETAI Information 2013. Original Source: Chemical Engineering World, Mar 2013, 48 (3), 30 (Website: http://www.cewindia.com/) © Jasubhai Group 2013. Original Source: Dow Chemical Co, 2030, Dow Centre, Midland, MI 48642, USA, tel: +1 989 636 1000, fax: +1 989 636 3518, website: http://www.dow.com (18 Mar 2013) © The Dow Chemical Company 2013
Alkoxylates Solvay announces project to build large-scale alkoxylation facility in Singapore Solvay has announced that it will build a large-scale alkoxylation facility in
Singapore. It is expected to start operations by 2015 and will serve the fast-growing Asian market in home & personal care, coatings, industrial, agrochemicals and oil and gas. The facility will be connected to Shell’s new High Purity Ethylene Oxide (HPEO) unit located in the worldclass, integrated petrochemical hub of Jurong Island [see also, Focus on Surfactants, Mar 2011]. Through the alkoxylation process, key monomers are produced that serve downstream surfactants development and manufacturing. ‘This project is part of our aggressive growth strategy in Asia and solidifies our speciality surfactant production,’ says Emmanuel Butstraen, president of Solvay Novecare. ‘In addition to greatly expanding our alkoxylation footprint in Asia, the facility demonstrates Novecare’s ambition to be the world leader in delivering innovative surfactant solutions to our customers on a global basis.’ The investment comes after Solvay announced that it would build a speciality surfactants plant near Berlin, serving the Central and Eastern European markets (p 3). Solvay Novecare is already Asia’s largest manufacturer of speciality surfactants, with 11 production sites and two R&D centres in Singapore and Shanghai. The new plant will produce speciality alkoxylate surfactants that deliver targeted cleansing, dispersing, defoaming and emulsifying performance attributes in formulations. Original Source: Solvay SA, website: http://www.solvay.com (16 Apr 2013) © Solvay 2013
SURFACTANTS Dow introduces EcoSense 3000 surfactant at in-cosmetics Europe Dow launched EcoSense 3000 Surfactant at in-cosmetics Europe, further demonstrating its ‘commitment to delivering excellent technologies and sustainably advantaged solutions to meet consumers’ preferences’, it says. Naturally-derived EcoSense 3000 Surfactant (INCI name: decyl glucoside), an addition to Dow’s alkyl polyglucosides portfolio, offers formulators another readily
JUNE 2013