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1. the quarter. Markets in Western
European remained ‘very
challenging’. As with Henkel and
Cognis, the company’s laundry &
household cleaning and personal
care segments continued to perform
well throughout. Unilever is in the
process of boosting its personal care
portfolio through the acquisition of
Sara Lee’s business in this area (see
p 4). At the same time it is
rationalizing its European
manufacturing operations with the
closure of its Czech plant (p 7).
Elsewhere in the issue, the
opening and construction of new
plants in China and India is further
evidence of the growing importance
of these markets. Clariant has
recently inaugurated its surfactants
factory in Zhenjiang while Kawaken
Sterling Surfactants has started
production at its new plant near
Mumbai (p 3). Furthermore, Clariant
has announced plans to build an
ethoxylation unit in China to meet
growing Asian demand for nonionic
surfactants (p 2). Finally, Lonza has a
new antimicrobials factory in Nanjing
and SVP Industries is constructing a
detergent powder facility in India.
Caroline Edser
RAW
MATERIALS
Oleochemicals
Chemical profile: fatty acids
Worldwide fatty acids demand has
risen in the past few years on the
back of end-use consumption growth
and a healthy increase in
oleochemicals demand. The
emergence of the US biodiesel
industry has led to some tightening in
the supply of fats and greases, with
buyers of yellow grease and
bleachable fancy tallow (BFT)
scrambling to secure enough
supplies. Fatty acid pricing could be
affected by the rise of biofuels and
bioplastics, although the viability of
the switch to oil and fat feedstocks
remains dependent on crude oil
prices. There are several fatty acid
producers in the USA. Trends in the
US Gulf spot pricing of C18 stearic
acid, C18 oleic acid and C16 palmitic
acid during Jan 2007-Apr 2009 are
illustrated.
ICIS Chemical Business, 31 Aug 2009, (Website:
http://icischemicalbusiness.com)
What future for palm oil?
There are now more than a million
tonnes of certified sustainable palm
oil (CSPO) certificates available for
sale, but slow demand from palm oil
users might undermine the success of
the Roundtable on Sustainable Palm
Oil (RSPO). A number of major
plantation firms, including New Britain
Palm Oil Ltd and United Plantations
Bhd, are now permitted to sell
certificates on GreenPalm after
passing the RSPO audits. Retail-
wise, roughly ten companies such as
Danisco have already purchased
sustainable palm oil certificates.
Danisco has started providing palm-
based emulsifiers, supported by
GreenPalm certificates. So far,
Europe is the only region to purchase
or promise to purchase CSPO.
Unilever pledged to use 100% CSPO
in the EU by 2012, and globally by
2015. Sainsbury also announced
plans to use 100% CSPO by 2014.
Body Shop has also purchased
significant quantities. Despite these
commitments, adoption of CSPO
remains low, and lack of customers
has been a cause of concern. The
total output capability of all RSPO-
certified palm oil manufacturers in
Indonesia, Malaysia and Papua New
Guinea now surpasses 1.75 M
tonnes/y of palm kernel and palm oil.
According to WWF International, total
production by RSPO member
plantation firms is roughly 1.3 M
tonnes of CSPO, but less than 15,000
tonnes have been sold so far. By
2015, the amount of CSPO is
anticipated to rise to 9.3 M tonnes
from only 0.5 M tonnes in May 2009.
However, there is not enough
demand to consume that amount of
CSPO. Overall global palm oil
consumption is about 44.5 M
tonnes/y. Currently, the EU imports
around 5.3 M tonnes/y of palm oil or
12% of global palm oil demand in
2009/2010. If present trends prevail,
CSPO supply will exceed combined
EU and USA demand in 2015, even if
both regions use 100% CSPO.
Oils and Fats International, Sep 2009, 25 (7), 2,22-23
Indonesia remains bullish about
output of palm oil
Indonesia remains committed to
growing its production of crude palm
oil (CPO) in the near future even in
the face of a steep decline in palm oil
exports in 1Q 2009. The country
expects an output of 21.9 M tonnes
for 2009 and 23.7 M tonnes in 2010.
CPO production is projected to reach
40 M tonnes by 2020, when domestic
CPO demand is forecast to be strong
not only for oleochemical and food
uses but also for biofuels. Demand for
CPO derivatives is forecast to
approach 10 M tonnes by 2020.
Oils and Fats International, Sep 2009, 25 (7), 2
Ethoxylates
Clariant to open ethoxylation facility
in China
Clariant has announced plans to build
an ethoxylation plant in Dayabay,
situated south of Guangzhou in
China. The plant will be operational in
early 2011 and will enable Clariant to
meet increasing demand from the
Chinese and wider Asian markets.
The new plant will primarily serve
domestic customers for a broad range
of applications, including crop
protection, construction, industrial &
home care, metal working, textile and
paper. The plant will also supply
important export markets across Asia.
The 80,000 square meter plant will
have a capacity close to 50,000
tonnes/y of surfactants. It will be
staffed by locally hired teams, which
will include skilled senior technical
roles. The state-of-the-art plant will
use the very latest automation and
environmental management
technology, the company says.
Clariant is among the largest
producers of ethoxylates globally and
has a leadership position in speciality
applications. Ethoxylation is a key
technology for Clariant, which the
company has developed over the
past 50 years. The company already
has ethoxylation units in Europe,
North America and Latin America, but
Dayabay will be Clariant’s first
ethoxylation plant in Asia. Ethylene
oxide will be supplied under a long-
term contract with CSPC, a Shell joint
venture with CNOOC. Clariant has
not revealed the size of the
2 NOVEMBER 2009
F O C U S O N S U R F A C T A N T S