better prospects in terms of bothmargins and growth than standardhousehold cleaning products; forexample, US sales of personal careproducts are growing by around 5%/ywhile US laundry detergent sales fell4% in 2005 despite sales of liquidproducts rising 6%. And in China (p 6),demand for speciality surfactants forpersonal care is expected to grow atan average annual growth rate of28% till 2012. Demand for specialitysurfactants is also strong from sectorssuch as I&I cleaning, cleaning wipes,coatings and automotive lubricants.

Investments reflect these trends –P&G is in the process of adding160,000 tonnes/y of capacity for fattyalcohols in Indonesia; Cognis jv ThaiEthoxylates has recentlycommissioned its 50,000 tonnes/yplant for fatty alcohol ethoxylatesurfactants; Taiko Palm-Oleo hasstarted up its 150,000 tonnes/y fattyacid, glycerine and soap base plant inChina; and Brazil’s Oxiteno isexpanding capacity for fatty alcoholsas well as ethoxylation (p 3). Uniqemaexpanded capacity for specialitysurfactants in the US and Rhodia isfollowing suit in India, while AirProducts bought Tomah3 to extend itsspeciality surfactants offerings to I&Iand mining/oilfield applications. Onthe downside, these same factors areresponsible for the closure in 2006 ofHuntsman’s Whitehaven HDL unit, itslast surfactants plant in the UK [ibid,Oct 2006], the sale of Colgate-Palmolive’s SE Asian laundrydetergents to P&G, and Chemtura’splans to address the poor profitabilityof its household detergents andsurfactants businesses [ibid, Jan2007].

Surfactant product launches during2006 demonstrate similar trends. Inaddition, the formulators’ need toreduce production and developmentcosts is increasing demand forsurfactant blends and concentrates;for example, Steposol DG fromStepan, and Dehypound Advancedand Arlypon VPC from Cognis arenew surfactant blends targeting I&Icleaning applications (p 3-4).DuPont’s Zonyl fluorosurfactants andEasy-Wet 20 from InternationalSpecialty Products also target I&Iapplications, while Air Productsrecently introduced Carbowet 106and 109 for waterborne architecturaland industrial coatings. The personal

care sector was also well provided forlast year, with new introductionsincluding multifunctional natural-based Oxypon surfactants fromZschimmer & Schwarz; Rhodia’sMiracare SLB range for bodycleansers; ‘exceptionally mild’Plantapon SF from Cognis, which isdescribed as particularly suited for‘green’, gentle hair and bodycleansing products; and amino acid-derived products Amisoft ECS-22SBfrom Ajinomoto and AMINOsurfact –A from Asahi Kasei.

Caroline Edser

RAWMATERIALS

Linear alkylbenzene

Petron bags Nirma order

Indian detergent and soapmanufacturer Nirma has awardedPetron Engineering Construction theRup 12.5 M contract to set up a linearalkylbenzene (LAB) plant at Alindra inthe Baroda district. Nirma previouslycommissioned a LAB plant of 75,000tonnes/y capacity in 1998-1999 and isone of five LAB producers in India.

Business Line, 16 Dec 2006, 13 (346), 2

Oleochemicals

Birla group sells palm oil relatedbusinesses in Malaysia for Rup 5,400 M

Indian conglomerate Aditya Birlagroup is selling its two downstreampalm oil companies, Pan CenturyEdible Oils Sdn Bhd and Pan CenturyOleochemicals Sdn Bhd, to Malaysianpalm oil and property firm IOI CorpBhd for Rup 5,400 M (Ringgit 423 M;$122 M). After the acquisition IOICorp’s fatty acid splitting capacity willincrease to 700,000 tonnes/y makingit the world’s largest vegetable oil-based fatty acid producer. IOI willfund the transaction, which subject tothe required approvals is expected tobe completed by Mar 2007, by cashand borrowings. In 2005, Pan CenturyOleochemicals netted profits ofRinggit 15.52 M on Ringgit 285.55 Mrevenue. The Pan Century Group firstset up operations in Malaysia in 1978

and commanded a quarter of thecountry’s market share in the 1990s.Currently, its single-location andvertically integrated palm oil refineryand oleochemicals complex in PasirGudang has an installed capacity of 1 M tonnes/y.

IOI reported better performance forits fiscal year ending Jun 2006 owingto increased crude palm oil (CPO)prices and a better performance bythe oleochemical unit. The averageCPO price increased to Ringgit 1500-1600/tonne in 2006 from Ringgit1400/tonne in 2005. IOI expectsprices to reach as high as Ringgit1900/tonne in 2007.

Chemical Weekly, 19 Dec 2006, 52 (18), 124 & TheStar, 31 Oct 2006, (Website:http://www.thestar.com.my)

PTT to ramp up business foroleochemical materials

PTT Chemical is consideringexpanding its oleochemicals productionin Thailand to meet a growing demandin consumer products, particularlytoiletry goods and detergents. Thecompany’s 50:50 jv with CognisThailand, Thai Ethoxylate, hasrecently started up a 50,000 tonne/y($27 M/y) manufacturing unit for fattyalcohol ethoxylates in RayongProvince [Focus on Surfactants, Jan2007]. The PTT group, the principalshareholder of PTT Chemical, willsupply ethylene oxide for the facility,with fatty alcohols to be procuredfrom Thai Fatty Alcohol. Thai FattyAlcohol, another 50:50 jv betweenPTT Chemical affiliate Thai Olefinsand Cognis Thailand, will beginproduction of 100,000 tonnes/y offatty alcohols in 4Q 2007, also inRayong [ibid, Jul 2006]. Japan’s fattyalcohols market is projected to reach300,000 tonnes/y by Jan 2007, interms of fatty alcohol use by makersof dishwashing detergents.

In related news, Thai Olefins andThai Fatty Alcohol have awardedUhde GmbH a contract to build whatis touted as the world’s first integratedcomplex for biodiesel and fattyalcohol production at Map Ta Phut,Thailand [ibid, Jul 2006]. The $170 Mfacility will produce 200,000 tonnes/yof methyl ester, 100,000 tonnes/y offatty alcohols and 30,000 tonnes/y ofglycerine using palm oil. The methylester unit is scheduled to come

2 FEBRUARY 2007

F O C U S O N S U R F A C T A N T S

SURF207 3/6/07 9:58 AM Page 2