- Email: [email protected]
New Swedish offices opened by Akzo Nobel Chemicals
F O C U S division. The UN Environment Programme’s Strategic Approach to International Chemical Management (SAICM) aims to regulate lifecycle management of chemicals and hazardous wastes to minimize adverse effects on human health and the environment. SAICM includes the phasing out of certain chemicals. A vote on the measure is due in Feb 2006. Chemical suppliers are also watching for possible changes to the Toxic Substances Control Act (TSCA). Changes to the TSCA may force the US to adopt the same hazard-based system for chemicals. The US is also evaluating several categories of chemicals including microbials, preservatives, and volatiles used in the household and personal care industries. Chemical Week, 30 Nov/7 Dec 2005, 167 (41), (Website: http://www.chemweek.com)
MARKET REVIEWS Spain’s industrial and domestic cleaning products sector ADELMA, Spain’s national association representing companies producing cleaning products for domestic, industrial and institutional use, has provided information regarding the development of the industry during 2004 and 2005. In 2004, 1,660,560 tonnes of domestic cleaning products were produced, 2.05% more than for 2003. These products were worth €2341 M. The industrial and institutional cleaning products sector was valued at €447,500 M for 2004, 3.59% more than for 2003. A lack of interest in housework has reduced the perception of differences between brands and the relevance of new innovations. A need to focus on connecting more with consumers has been identified. The impact of the EU’s Reach legislation on the industry is also of concern. Other items of legislation that affect the sector also include Spain’s Royal Decree on biocides and a recent revision of the Directive on Packaging and Packaging Waste. Ingenieria Quimica, Oct 2005, (428), 135-138 (in Spanish)
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Toiletries and detergents market in Germany: results better than expected in 2005 The German Toiletries and Detergents Association (IKW) predicts positive impulses for toiletries and washing detergents for 2006. Sales are predicted to rise between 0.5-1% by volume and value. In 2005, German sales of toiletries improved by 0.2% after a downturn of 1.4% in 2004. Sales of haircare products decreased by 0.1% whereas sales of skincare products increased by 3% in 2005. Sales of decorative cosmetics fell by 5.8%, sales of feminine fragrances decreased 1.9% and sales of male cosmetics dropped by 1.1%. German per capita consumption of toiletries is €134.60 (Switzerland €209; Norway €189; and France €174). Sales of detergents and cleaning products decreased by 2.6% to €3.7 bn in 2005 (-3% in 2004). IKW’s recipe for higher margins includes efficiency improvements, cost-savings and the development of popular products. The workforce in the German detergents and cosmetics industry decreased by 5% to 43,000 in 2005. The breakdown of the German toiletries market in 2005 according to products is as follows: body care products 25.3%, skincare products 22.4%, dental hygiene products 10.9%, decorative cosmetics 10.6%, feminine perfume/fragrances 6.7%, male cosmetics 5.7%, bath and shower products 6.5%, deodorants 6% and soaps 1.9%. Chemische Rundschau, 20 Dec 2005, 58 (12), 10 (in German)
Surfactants and detergents: cleaning the green way The worldwide surfactants industry produces around 12.5 M tonnes/y worth about US$28 bn. It is growing by around 500,000 tonnes/y. Around 60% of surfactant production is used in household detergents, 30% in industrial and technical applications, 7% in industrial and institutional cleaning and 6% in personal care. The implication of raw material availability, commercial influences, consumer demand, environmental factors, technology, regulatory influences and the wealth effect on the surfactant market are discussed.
The global supply chain is investigated with the focus on consolidation, formulators and retailers. Also discussed are the influence of crude oil and the major surfactant feedstocks (linear alkylbenzene, ethylene, ethylene oxide and fatty alcohols). Tables detail the global surfactants producers by geographical area and process; global homecare formulators by company, location and sales; surfactants raw materials; and regional surfactant consumption between 2000 and 2010. Surfactant consumption is expected to grow at an average annual growth rate of 2% in North America, to 3.7 M tonnes in 2010, and by 1.5% in Western Europe, to about 2.5 M tonnes over the same period. Growth rates are expected to be higher in developing markets with 3.3%/y predicted for Latin America and 4.2%/y for Asia over the 2000-2010 period. Oils and Fats International, Jan 2006, 22 (1), 36-37,3940
COMPANY NEWS Chemtura in $200 M sale In 2006, assets worth $200 M are to be offered for sale by Chemtura. No final decision has been made but areas understood to be under consideration include industrial water treatment, household cleaning chemicals, fluorine, optical monomers and urethane additives. Chemtura’s joint venture with Croda is also being considered. European Chemical News, 28 Nov 2005, 83 (2173), 10
New Swedish offices opened by Akzo Nobel Chemicals Akzo Nobel Chemicals has opened its new state-of-the-art office premises in Stenungsund, Sweden [see Focus on Surfactants, Dec 2004]. Strategically located, the offices provide space for 180 employees from the Surfactants Europe, Cellulosic Specialties and Ethylene Amines businesses. The office space is designed to be very flexible and energy-efficient, with FEBRUARY 2006
F O C U S removable partitions forming the internal walls and sensors in each office to detect when people enter or leave a room so that no lights are left on in empty offices. The ventilation, meanwhile, is controlled by sensors in each room that monitor the temperature and oxygen content and open or close windows to control the interior climate accordingly. Built to replace the old offices and R&D complex, which has been earmarked for renovation, it is estimated that the new facility will lead to savings of around SKR 2 M/y in rental rates. Akzo Nobel News and Views, 30 Nov 2005, (Akzo Nobel nv, PO Box 9300 6800 SB Arnhem, the Netherlands. Tel: +31 26 3665760. Fax: +31 26 3665850. Website: http://newsandviews.akzonobel.com)
ZTCL establishes fine chemical company Hangzhou Traditional Fine Chemical Co Ltd has been established by Zhejiang Traditional Chemical Co Ltd (90%) and Zhejiang Traditional Group Co Ltd (10%) at a total cost of RMB Yuan 156 M. The venture will produce organo-silicon and organo-fluorine fine chemicals, surfactants, textile dye and print additives, and related materials. China Chemical Reporter, 26 Oct 2005, 16 (30), 17
Going against the tide Issues of importance to Huntsman Corp are reported from an interview with the company’s chief executive, Peter Huntsman. In 2004, the company opted for an initial public offering (IPO), although operational control remains with the Huntsman family. Current priorities involve debt reduction, and in 2005 Huntsman repaid $1.5 bn of debts, lowering debt levels to $4.7 bn. By the end of 2007, a further $2 bn of debt will be repaid. To remain profitable, the company is moving away from commodity petrochemicals to higher value products, investing in polyurethane, epoxy resins, amines, speciality surfactants, titanium dioxide and maleic anhydride. Commodity chemicals, which accounted for 60% of business in 2000, now account for just 35%. This will be reduced to 25% in the next few years. Huntsman is FEBRUARY 2006
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building a 15,000 tonne/y, $30 M polyetheramines plant on Jurong Island in Singapore, with output destined for Asian customers. Startup is expected in Jun 2007. In the US, Huntsman will construct a 45,000 – 50,000 tonne/y maleic anhydride plant, with start-up by 1H 2008. In China, Huntsman is participating in a joint venture with five Chinese companies and BASF, to build a 240,000 tonne/y MDI plant. Asian Chemical News, 12 Dec 2005, 12 (518), (Website: http://www.asianchemicalnews.com)
Uniqema cuts jobs Uniqema is to lay off around 60 workers in around 18 months. Compulsory redundancies will be few or none at all. There will also be an end to operations at the Gouda facility of ICI, of which Uniqema is part. The production of soap bars will be transferred to Malaysia. ChemieZine VNCI, 20 Oct 2005, (Vereniging van de Nederlandse Chemische Industrie (VNCI), the Netherlands. Email: [email protected]) (in Dutch)
Dabur India achieves turnaround in Balsara products business Consumer goods company Dabur India has increased its turnover after hiving off its pharma business into a separate entity in 2003. The company has managed to increase its profit-after-tax from Rup 720 bn to Rup 1.48 bn and revenues from Rup 10.48 bn to Rup 12.69 bn between 2002-2003 and 2004-2005. Dabur India has integrated and achieved turnaround in the operations of Balsara Home Products, which it acquired in 2004. The company has a wide range of products imparting a high degree of stability besides making it less vulnerable to competitive pressures in specific segments. Analysts opine that household care, beauty and baby care product segments are underpenetrated and Dabur India is likely to exploit these segments. Ayurvedic and healthcare products segments are other areas where the company could focus, as it has strong association with herbals. On a consolidated basis (ie, including results of Balsara and foods business), Dabur India posted a 53%
increase in profit-after-tax on 23% higher turnover for 1H 2005-2006. The acquisition of Balsara products has increased the revenues of the company besides providing savings in excise duty through shifting of manufacturing activities to tax-free zones. Business Line, 6 Nov 2005, 12 (306), 8
Nicca Chemical to develop Chinese market for surfactants Nicca Chemical has begun developing the Chinese market for industrial surfactants for metal, automotive and pulp and paper applications. It is aiming for a 10% share of the Chinese market for industrial surfactants. Its monthly sales in China reached RMB 20 M in Sep 2005, a 25% increase from RMB 16 M in Sep 2004. Japan Chemical Week, 1 Dec 2005, 46 (2345), 2
Bombril: Pronto cleaning products Brazilian Pronto, a subsidiary of the Bombril group, started up its cleaning products unit in Jun 2005, using Bombril’s unoccupied production space in Abreu Lima, Recife, in Pernambuco. It plans to have 20% of the market of cleaning products by 2010, and may also supply other regions. The good performance of the brand encouraged the company to launch its Pronto bleach and other cleaning products, including disinfectants and softeners, earlier than originally planned. Gazeta Mercantil, 26 Dec 2005 (Website: http://www.investnews.com)
Profile of Shanthi Chemical Works Shanthi Chemical Works is one of India’s leading manufacturers of sodium silicate and potassium silicate with installed capacity of 12,000 tonnes of sodium silicate and 2500 tonnes of potassium silicate. The company also exports sodium silicate to countries in the Middle East and South Asia, mainly to chemicals, detergents and foundry industries. Purchase, Oct 2005, 28 (10), 162
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MARKET REVIEWS Spain’s industrial and domestic cleaning products sector ADELMA, Spain’s national association representing companies producing cleaning products for domestic, industrial and institutional use, has provided information regarding the development of the industry during 2004 and 2005. In 2004, 1,660,560 tonnes of domestic cleaning products were produced, 2.05% more than for 2003. These products were worth €2341 M. The industrial and institutional cleaning products sector was valued at €447,500 M for 2004, 3.59% more than for 2003. A lack of interest in housework has reduced the perception of differences between brands and the relevance of new innovations. A need to focus on connecting more with consumers has been identified. The impact of the EU’s Reach legislation on the industry is also of concern. Other items of legislation that affect the sector also include Spain’s Royal Decree on biocides and a recent revision of the Directive on Packaging and Packaging Waste. Ingenieria Quimica, Oct 2005, (428), 135-138 (in Spanish)
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Toiletries and detergents market in Germany: results better than expected in 2005 The German Toiletries and Detergents Association (IKW) predicts positive impulses for toiletries and washing detergents for 2006. Sales are predicted to rise between 0.5-1% by volume and value. In 2005, German sales of toiletries improved by 0.2% after a downturn of 1.4% in 2004. Sales of haircare products decreased by 0.1% whereas sales of skincare products increased by 3% in 2005. Sales of decorative cosmetics fell by 5.8%, sales of feminine fragrances decreased 1.9% and sales of male cosmetics dropped by 1.1%. German per capita consumption of toiletries is €134.60 (Switzerland €209; Norway €189; and France €174). Sales of detergents and cleaning products decreased by 2.6% to €3.7 bn in 2005 (-3% in 2004). IKW’s recipe for higher margins includes efficiency improvements, cost-savings and the development of popular products. The workforce in the German detergents and cosmetics industry decreased by 5% to 43,000 in 2005. The breakdown of the German toiletries market in 2005 according to products is as follows: body care products 25.3%, skincare products 22.4%, dental hygiene products 10.9%, decorative cosmetics 10.6%, feminine perfume/fragrances 6.7%, male cosmetics 5.7%, bath and shower products 6.5%, deodorants 6% and soaps 1.9%. Chemische Rundschau, 20 Dec 2005, 58 (12), 10 (in German)
Surfactants and detergents: cleaning the green way The worldwide surfactants industry produces around 12.5 M tonnes/y worth about US$28 bn. It is growing by around 500,000 tonnes/y. Around 60% of surfactant production is used in household detergents, 30% in industrial and technical applications, 7% in industrial and institutional cleaning and 6% in personal care. The implication of raw material availability, commercial influences, consumer demand, environmental factors, technology, regulatory influences and the wealth effect on the surfactant market are discussed.
The global supply chain is investigated with the focus on consolidation, formulators and retailers. Also discussed are the influence of crude oil and the major surfactant feedstocks (linear alkylbenzene, ethylene, ethylene oxide and fatty alcohols). Tables detail the global surfactants producers by geographical area and process; global homecare formulators by company, location and sales; surfactants raw materials; and regional surfactant consumption between 2000 and 2010. Surfactant consumption is expected to grow at an average annual growth rate of 2% in North America, to 3.7 M tonnes in 2010, and by 1.5% in Western Europe, to about 2.5 M tonnes over the same period. Growth rates are expected to be higher in developing markets with 3.3%/y predicted for Latin America and 4.2%/y for Asia over the 2000-2010 period. Oils and Fats International, Jan 2006, 22 (1), 36-37,3940
COMPANY NEWS Chemtura in $200 M sale In 2006, assets worth $200 M are to be offered for sale by Chemtura. No final decision has been made but areas understood to be under consideration include industrial water treatment, household cleaning chemicals, fluorine, optical monomers and urethane additives. Chemtura’s joint venture with Croda is also being considered. European Chemical News, 28 Nov 2005, 83 (2173), 10
New Swedish offices opened by Akzo Nobel Chemicals Akzo Nobel Chemicals has opened its new state-of-the-art office premises in Stenungsund, Sweden [see Focus on Surfactants, Dec 2004]. Strategically located, the offices provide space for 180 employees from the Surfactants Europe, Cellulosic Specialties and Ethylene Amines businesses. The office space is designed to be very flexible and energy-efficient, with FEBRUARY 2006
F O C U S removable partitions forming the internal walls and sensors in each office to detect when people enter or leave a room so that no lights are left on in empty offices. The ventilation, meanwhile, is controlled by sensors in each room that monitor the temperature and oxygen content and open or close windows to control the interior climate accordingly. Built to replace the old offices and R&D complex, which has been earmarked for renovation, it is estimated that the new facility will lead to savings of around SKR 2 M/y in rental rates. Akzo Nobel News and Views, 30 Nov 2005, (Akzo Nobel nv, PO Box 9300 6800 SB Arnhem, the Netherlands. Tel: +31 26 3665760. Fax: +31 26 3665850. Website: http://newsandviews.akzonobel.com)
ZTCL establishes fine chemical company Hangzhou Traditional Fine Chemical Co Ltd has been established by Zhejiang Traditional Chemical Co Ltd (90%) and Zhejiang Traditional Group Co Ltd (10%) at a total cost of RMB Yuan 156 M. The venture will produce organo-silicon and organo-fluorine fine chemicals, surfactants, textile dye and print additives, and related materials. China Chemical Reporter, 26 Oct 2005, 16 (30), 17
Going against the tide Issues of importance to Huntsman Corp are reported from an interview with the company’s chief executive, Peter Huntsman. In 2004, the company opted for an initial public offering (IPO), although operational control remains with the Huntsman family. Current priorities involve debt reduction, and in 2005 Huntsman repaid $1.5 bn of debts, lowering debt levels to $4.7 bn. By the end of 2007, a further $2 bn of debt will be repaid. To remain profitable, the company is moving away from commodity petrochemicals to higher value products, investing in polyurethane, epoxy resins, amines, speciality surfactants, titanium dioxide and maleic anhydride. Commodity chemicals, which accounted for 60% of business in 2000, now account for just 35%. This will be reduced to 25% in the next few years. Huntsman is FEBRUARY 2006
ON
S U R FA C TA N T S
building a 15,000 tonne/y, $30 M polyetheramines plant on Jurong Island in Singapore, with output destined for Asian customers. Startup is expected in Jun 2007. In the US, Huntsman will construct a 45,000 – 50,000 tonne/y maleic anhydride plant, with start-up by 1H 2008. In China, Huntsman is participating in a joint venture with five Chinese companies and BASF, to build a 240,000 tonne/y MDI plant. Asian Chemical News, 12 Dec 2005, 12 (518), (Website: http://www.asianchemicalnews.com)
Uniqema cuts jobs Uniqema is to lay off around 60 workers in around 18 months. Compulsory redundancies will be few or none at all. There will also be an end to operations at the Gouda facility of ICI, of which Uniqema is part. The production of soap bars will be transferred to Malaysia. ChemieZine VNCI, 20 Oct 2005, (Vereniging van de Nederlandse Chemische Industrie (VNCI), the Netherlands. Email: [email protected]) (in Dutch)
Dabur India achieves turnaround in Balsara products business Consumer goods company Dabur India has increased its turnover after hiving off its pharma business into a separate entity in 2003. The company has managed to increase its profit-after-tax from Rup 720 bn to Rup 1.48 bn and revenues from Rup 10.48 bn to Rup 12.69 bn between 2002-2003 and 2004-2005. Dabur India has integrated and achieved turnaround in the operations of Balsara Home Products, which it acquired in 2004. The company has a wide range of products imparting a high degree of stability besides making it less vulnerable to competitive pressures in specific segments. Analysts opine that household care, beauty and baby care product segments are underpenetrated and Dabur India is likely to exploit these segments. Ayurvedic and healthcare products segments are other areas where the company could focus, as it has strong association with herbals. On a consolidated basis (ie, including results of Balsara and foods business), Dabur India posted a 53%
increase in profit-after-tax on 23% higher turnover for 1H 2005-2006. The acquisition of Balsara products has increased the revenues of the company besides providing savings in excise duty through shifting of manufacturing activities to tax-free zones. Business Line, 6 Nov 2005, 12 (306), 8
Nicca Chemical to develop Chinese market for surfactants Nicca Chemical has begun developing the Chinese market for industrial surfactants for metal, automotive and pulp and paper applications. It is aiming for a 10% share of the Chinese market for industrial surfactants. Its monthly sales in China reached RMB 20 M in Sep 2005, a 25% increase from RMB 16 M in Sep 2004. Japan Chemical Week, 1 Dec 2005, 46 (2345), 2
Bombril: Pronto cleaning products Brazilian Pronto, a subsidiary of the Bombril group, started up its cleaning products unit in Jun 2005, using Bombril’s unoccupied production space in Abreu Lima, Recife, in Pernambuco. It plans to have 20% of the market of cleaning products by 2010, and may also supply other regions. The good performance of the brand encouraged the company to launch its Pronto bleach and other cleaning products, including disinfectants and softeners, earlier than originally planned. Gazeta Mercantil, 26 Dec 2005 (Website: http://www.investnews.com)
Profile of Shanthi Chemical Works Shanthi Chemical Works is one of India’s leading manufacturers of sodium silicate and potassium silicate with installed capacity of 12,000 tonnes of sodium silicate and 2500 tonnes of potassium silicate. The company also exports sodium silicate to countries in the Middle East and South Asia, mainly to chemicals, detergents and foundry industries. Purchase, Oct 2005, 28 (10), 162
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