Wilmar invests in Malaysia, forms jv in Indonesia

FOCUS improved volumes in both North America and Europe, with growth not only in consumer laundry and cleaning but also in sales of functional surfactants used in housing, oilfield and agricultural products, indicating a recovery in these market sectors. However, net income for the quarter fell 13%, which Stepan attributes to lower margins in Europe and higher production, admin and research expenses. The last two items are directly related to its investment in growth opportunities. Admin expenses were higher due to the recent acquisitions. Research expenses rose as the company has increased headcount to support product innovation, and because of the higher regulatory workload entailed by the European REACH product registration initiative, an issue of current relevance to all in the chemicals industry. Caroline Edser

RAW MATERIALS Wilmar invests in Malaysia, forms jv in Indonesia Singaporean agriculture group Wilmar International’s subsidiary PGEO recently signed an agreement to acquire one of the world’s largest producers of oleochemicals. Wilmar will thus obtain a 91.38% stake in Malaysian company Natural Oleochemicals from Kulim for Ringgit 450 M (c €113 M). The remaining 8.62% stake is owned by National Land Finance Co-operative Society. Natural Oleochemicals produces palm oil-derived glycerine, fatty acids, esters and soap noodles for use by the detergents, cosmetics, paper, adhesives, paints, lubricants and plastics industries. For the 2009 financial year, the company posted a net loss of Ringgit 23 M on revenues of Ringgit 1.1 bn. In 2009 Malaysia alone was responsible for 25% of worldwide fatty acids production; 20% of this came from Natural Oleochemicals. The acquisition gives Wilmar a foothold in Malaysia and makes it the largest oleochemicals producer in Asia with a 35% share of the local fatty acids market. Natural 2

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Oleochemicals also has a significant commercial network in Europe, the US and China. In an earlier development, Wilmar recently signed an agreement with US vegetable oil derivatives specialist Elevance Renewable Sciences to form a joint venture to build a biorefinery in Surabay, Indonesia. This will be at a complex currently being built by Wilmar. The new biorefinery is scheduled to open in 2011 with a capacity of 180,000 tonnes/y, which could be expanded to 360,000 tonnes/y. It will be supplied with palm, mustard, soya and jatropha oils as well as used oil. Utilizing Elevance’s proprietary biorefinery technology, which converts the fatty acids and triglycerides found in natural oils into fuels and chemicals, the unit will produce a high-quality mix of oleochemicals and biofuels as well as novel multifunctional C18 esters and dicarboxylic acids. These will be used in the surfactant, antimicrobial, lubricant, biodiesel and environmental fuel sectors. Chimie Pharma Hebdo, 26 Jul 2010, (517), 8 & 5 Jul 2010, (514), 5 (in French); & Chemical Week, 12 Jul 2010, (Website: http://www.chemweek.com)

Palm & lauric oil price outlook for 2010 with special reference to India India was the largest importer of palm products in 2008-2009. With the unpleasant effect of monsoons in the South Western part of the country, the production of groundnuts, soybeans and rice bran was badly affected in 2009. India is now in a position to carry forward a large stock of oilseeds in 2009-2010. Olein is priced at Rup 50,000 presently and further growth in demand and consumption is forecast. In 2009 Indian demand for crude palm oil rose to 4.5 M tonnes. Chemical Weekly, 27 Apr 2010, 55 (37), 201-204

SURFACTANTS Stepan buys methyl esters asset in Singapore, expands Philippine interest Stepan has purchased Peter Cremer GmbH’s 100,000 tonne/y methyl ester plant on Jurong Island, Singapore, for an undisclosed sum. Stepan plans to build a methyl ester fractionation unit

at the plant to treat methyl esters made from local tropical oils. The extensions should be complete by the end of 2011 when production will resume. Stepan says the new capacities will consolidate its position on the surfactants market. Methyl esters are a core building block for Stepan’s surfactants operation which, in turn, is the company’s largest business and in 2009 accounted for 77% ($972.6 M) of its $1.27 bn turnover. Elsewhere, Stepan has increased its stake in its Philippine joint venture, Stepan Philippines Inc (SPI), from 50% to 88.8%. SPI operates a surfactant manufacturing plant, south of Manila, producing laundry and cleaning products, fabric softeners and functional surfactants for the Philippines and other Asian markets. United Coconut Chemicals Inc (UCCI) will remain as the owner of the other 11.2%. UCCI operates an alcohol plant adjacent to SPI, capable of supplying feedstock raw materials for surfactant production. In the US, Stepan has been involved in a dispute with employees belonging to the Teamster union at its Joliet-area facility in Illinois. The dispute, which concerns the payment of health care premiums, has resulted in a lockout at the plant. Chemical Week, 12 Jul 2010, (Website: http://www.chemweek.com) & Chimie Pharma Hebdo, 12 Jul 2010, (515), 6 (in French) & press release from: Stepan Co, 22, West Frontage Road, Northfield, IL 60093, USA, tel: +1 847 446 7500, fax: +1 847 501 2100, website: http://www.stepan.com (21 Jul 2010)

Rhodia invests in speciality surfactant production As part of its profitable growth strategy in speciality surfactants, Rhodia SA has announced investments at its Halifax (UK) and University Park (US) industrial sites. The investments at the two sites, formerly part of the McIntyre Group acquired by Rhodia in 2009 [Focus on Surfactants, Apr 2009], will optimize and increase production capacity and enhance competitiveness, the company says. In the UK, Rhodia plans to consolidate surfactants production lines currently at Leeds and Halifax on a single platform to reinforce its long-term competitive position in Europe. The phased transfer of assets from Leeds SEPTEMBER 2010