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Restructuring continues to characterize the surfactants market
FOCUS ON SURFACTANTS A MONTHLY REPORT FROM CAROLINE EDSER
RESTRUCTURING CONTINUES TO CHARACTERIZE THE SURFACTANTS MARKET
OCTOBER 2003 In this issue
RAW MATERIALS
2-3
Linear alkylbenzene Oleochemicals Other
SURFACTANTS
3
Sanyo to increase surfactants capacity in Thailand
ASSOCIATED PRODUCTS
3
New product launches from Ciba APPLICATIONS 3-4 Noveon’s new soap from the Amazon
PATENTS
4-5
Reckitt Benckiser patents hard surface cleaner
LEGISLATION
5
MARKETS
5
A century of shampoo
COMPANY RESULTS
5-7
Lean times for Unilever
COMPANY NEWS
7
Chimiotechnic acquired by private investors
EVENTS
SURFA C TA N TS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
As pressure on margins continues in the surfactants industry, particularly in the household and cosmetics sectors, another wave of restructuring and consolidation is underway. Every month there seems to be news of yet more job cuts, plant closures or divestments. September saw the closure of three of Huntsman’s surfactants units at Whitehaven in the UK, with the loss of 85 jobs (Focus on Surfactants Sep 2003, p 7). The units produced tertiary amines, ethoxylates and alcohol intermediates but the company says it is now more cost-effective to buy in these intermediates. There was also news of the sale of BASF’s Gurnee, IL, surfactants manufacturing site to Petroferm and the closure of an unprofitable linear alpha-olefins plant in the Czech Republic (ibid p 2-3). BP has also idled a linear alpha-olefins plant in Texas until market conditions improve (ibid May 2003, p 2), while Sasol is consolidating its assets by closing a 100,000 tonnes/y linear alkylbenzene unit at Porto Torres in Sardinia, citing price falls, lower margins and increased storage costs (ibid Aug 2003, p 2). In addition to escalating manufacturing costs, overcapacity is another problem currently besetting the surfactants sector, as highlighted by Akzo Nobel’s decision to restructure its Surface Chemistry operations in North America and in Europe. About 200 jobs will be lost in production, R&D and other areas by the end of 2004 (ibid Jul 2003, p 7),
SU R F A C TAN T S
though no facilities will be closed. In July this year, Shell Chemical halted production at its 100,000 tonnes/year Neodol detergent alcohols plant at the company’s Geismar, LA site, consolidating production at its Stanlow site in the UK. Finally, July also saw the announcement that Uniqema is to close its production unit at Paterson, NJ, by the end of 2005. The site employs 96 people and manufactures anionic, cationic and amphoteric surfactants. Manufacturing of these products is to be transferred to Uniqema’s more modern Atlas Point facility in New Castle, DE. Long term, prospects for surfactants will improve, according to forecasts from consulting firm Colin A Houston & Associates. They predict that the household surfactant sector will expand by 3% annually until 2010. However, the personal care surfactant sector is likely to contract by 0.6%/y over the next few years due to a decline in bar soap consumption. On a brighter note, while global companies have been banking on the vast potential of China’s developing economy for some time, Thailand is now being targeted as the next growth area. In a bid to offset flat demand from domestic markets, Japanese companies Kao and Sanyo Chemical Industries are both planning to invest in significant surfactant capacity expansions in Thailand (see pp 2 and 3, this issue). So, amid this general air of caution and belt-tightening, there are some rays of optimism.
S U RF ACT AN T S
Caroline Edser
S U RF ACT A NTS
RESTRUCTURING CONTINUES TO CHARACTERIZE THE SURFACTANTS MARKET
OCTOBER 2003 In this issue
RAW MATERIALS
2-3
Linear alkylbenzene Oleochemicals Other
SURFACTANTS
3
Sanyo to increase surfactants capacity in Thailand
ASSOCIATED PRODUCTS
3
New product launches from Ciba APPLICATIONS 3-4 Noveon’s new soap from the Amazon
PATENTS
4-5
Reckitt Benckiser patents hard surface cleaner
LEGISLATION
5
MARKETS
5
A century of shampoo
COMPANY RESULTS
5-7
Lean times for Unilever
COMPANY NEWS
7
Chimiotechnic acquired by private investors
EVENTS
SURFA C TA N TS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS FOR ALL SURFACE ACTIVE AGENTS ISSN 1351–4210
8
As pressure on margins continues in the surfactants industry, particularly in the household and cosmetics sectors, another wave of restructuring and consolidation is underway. Every month there seems to be news of yet more job cuts, plant closures or divestments. September saw the closure of three of Huntsman’s surfactants units at Whitehaven in the UK, with the loss of 85 jobs (Focus on Surfactants Sep 2003, p 7). The units produced tertiary amines, ethoxylates and alcohol intermediates but the company says it is now more cost-effective to buy in these intermediates. There was also news of the sale of BASF’s Gurnee, IL, surfactants manufacturing site to Petroferm and the closure of an unprofitable linear alpha-olefins plant in the Czech Republic (ibid p 2-3). BP has also idled a linear alpha-olefins plant in Texas until market conditions improve (ibid May 2003, p 2), while Sasol is consolidating its assets by closing a 100,000 tonnes/y linear alkylbenzene unit at Porto Torres in Sardinia, citing price falls, lower margins and increased storage costs (ibid Aug 2003, p 2). In addition to escalating manufacturing costs, overcapacity is another problem currently besetting the surfactants sector, as highlighted by Akzo Nobel’s decision to restructure its Surface Chemistry operations in North America and in Europe. About 200 jobs will be lost in production, R&D and other areas by the end of 2004 (ibid Jul 2003, p 7),
SU R F A C TAN T S
though no facilities will be closed. In July this year, Shell Chemical halted production at its 100,000 tonnes/year Neodol detergent alcohols plant at the company’s Geismar, LA site, consolidating production at its Stanlow site in the UK. Finally, July also saw the announcement that Uniqema is to close its production unit at Paterson, NJ, by the end of 2005. The site employs 96 people and manufactures anionic, cationic and amphoteric surfactants. Manufacturing of these products is to be transferred to Uniqema’s more modern Atlas Point facility in New Castle, DE. Long term, prospects for surfactants will improve, according to forecasts from consulting firm Colin A Houston & Associates. They predict that the household surfactant sector will expand by 3% annually until 2010. However, the personal care surfactant sector is likely to contract by 0.6%/y over the next few years due to a decline in bar soap consumption. On a brighter note, while global companies have been banking on the vast potential of China’s developing economy for some time, Thailand is now being targeted as the next growth area. In a bid to offset flat demand from domestic markets, Japanese companies Kao and Sanyo Chemical Industries are both planning to invest in significant surfactant capacity expansions in Thailand (see pp 2 and 3, this issue). So, amid this general air of caution and belt-tightening, there are some rays of optimism.
S U RF ACT AN T S
Caroline Edser
S U RF ACT A NTS