F O C US collaboration to become the norm. Elaborating further, Baronnet said that cultures of secrecy and conflict in raw material supplier/ formulator relationships must give way to partnership for products to be created quickly and efficiently. This would entail common understanding of consumer needs, customized solutions, complementarity and mutual exclusivity. Targeted innovation and increased cooperation are the experts’ prescription for the future health of the household products industry. Caroline Edser
RAW MATERIALS Linear alkylbenzene Sasol idles Italian LAB plant In Jun 2003, Sasol announced its intention to mothball a linear alkylbenzene plant at Porto Torres, Sardinia, Italy, to offset the slowdown in demand. Plant capacity is 100,000 tonnes/y. Chemical Market Reporter, 9 Jun 2003 (Website: http://www.chemicalmarketreporter.com)
Reliance steps up LAB production output, hikes product prices Reliance Industries has been building up its production capacity for various petrochemicals over the last few months via debottlenecking and lowcost expansions in India. Total linear alkylbenzene (LAB) capacity has been raised from 100,000 tonnes/y to 115,000 tonnes/y. Reliance has also hiked the prices of a range of products including LAB, up to Rup 54.4/kg from Rup 53.4/kg, and monoethylene glycol, up to Rup 38.7/kg from Rup 32.75/kg. The revised prices are effective from 1 Jul 2003. In other news, the company is considering a tolling agreement with Indian Petrochemicals Corp Ltd (IPCL) whereby all the naphtha required for IPCL’s 130,000 tonne/y cracker at Baroda, Gujarat, India, would be supplied by Reliance from its refinery in Jamnagar, Gujarat. 2
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Reliance would also supply catalysts and other raw materials to Baroda. Chemicals produced at Baroda would be marketed by Reliance and a conversion fee would be paid to IPCL. Derivatives produced at Baroda by IPCL include LAB and various polymers. European Chemical News, 16 Jun 2003, 78 (2057), 31 & Business Line, 2 Jul 2003, 10 (182), 3 & Asian Chemical News, 19/26 May 2003, 9 (402), 9
Alpha-olefins Idemitsu to revive earlier alphaolefins plan Idemitsu of Japan has brought online an extra 173,000 tonnes/y ethylene capacity at Tokuyama, making possible extra capacities downstream. The group therefore is looking again at the plan for a 100,000 tonnes/y alphaolefins plant on Idemitsu’s site at Chiba, Japan. The group had shelved this plan in mid 2000. Idemitsu already operates a 58,000 tonnes/y alphaolefins plant at Chiba. The extra capacity would make Idemitsu as big a producer of alpha-olefins in Asia as Mitsubishi Chemical, which has increased its capacity at Mizushima to 60,000 tonnes/y. Alpha-olefins are in demand to make synthetic detergents and linear low density polyethylene. Chimie Hebdo, 10 Jun 2003, (216), 7 (in French)
Sasol building new plant Sasol is building a new multi-million dollar 48,000 tonne/y 1-octene manufacturing facility at Secunda, South Africa. The new capacity is aimed at meeting the increasing global demand for the product. The facility will replicate the present train, which was put on stream in 1999. The new capacity will increase the firm’s overall 1-octene capacity to 96,000 tonnes/y as the new facility goes on stream in late 2004. Sasol Olefins and Surfactants will operate the new facility, which will ship its first delivery by Jan 2005. Sasol Olefins and Surfactants is a leading producer of hydrocarbons such as octene, pentene and hexene for use as chemical intermediates in the production of plasticizer alcohols, polymers, polyethylene, fatty acids, detergent alcohols and lubrication oil additives. Hydrocarbon Processing, Jun 2003, 82 (6), 41
Oleochemicals Guthrie palm oil extraction rate up, moves towards certification The palm oil extraction rate of Kumpulan Guthrie Bhd group (Guthrie) in Malaysia increased to 20.7% during 2002 compared to 19.67% in 2001 due to teamwork throughout the value chain. For year ended Dec 2002, the operating profit of Guthrie’s plantations increased to Ringgit 110 M of which the Malaysian operations contributed an operating profit of Ringgit 72.3 M. The company is gearing up its mill in Labu, Negeri Sembilan, to qualify for the European Retail Parties Good Agricultural Practices certificate by 2004 and expects to obtain certification for the group by end 2006. The management is also working towards another certificate – the Hazard Analysis Critical Control Point for food safety, for one of its mills by Dec 2004, and for the group by Dec 2006. The Star, 21 Jun 2003 (Website: http://www.thestar.com.my)
Palm oil prices skid as India overbought in May 2003 India seems to have overbought and is unlikely to buy more palm oil for Jun 2003. India, which normally imports about 400,000 tonnes/month of palm oil from Malaysia and Indonesia, imported 600,000 tonnes in May 2003. The current shipment bookings for Jun 2003 total about 350,000 tonnes, which has resulted in decrease in palm oil prices in Malaysia. Malaysian palm oil futures have fallen to Ringgit 1400 from Ringgit 1695 in Dec 2002. Business Line, 11 Jun 2003, 10 (161), 11
IJM Plantations to upgrade refining plant capacity IJM Plantations Bhd is planning to invest up to Ringgit 80 M by 2006 in order to expand its crude palm oil refining capacities as well as extend the plantation area. The company has already started upgrading the capacity of one of its three palm oil mills, which would raise the capacity to 60 tonnes/hour by Mar 2004 from its existing 30 tonnes/hour. The total AUGUST 2003