Presented by: Eng. Adel Abd El-Latif in workshop on Workshop on Oleochemicals at the SemiRamis Intercontinental Hotel.

1. OLEO CHEMICALS
MARKET DEVELOPMENT
PLANNINGAND STRATEGIES
Adel Abd El-Latif

2. Contents
• The major source of Oleo chemicals Industries
• Increasing global demand for Palm Oil in the Oleo
chemicals and converted Products
• Plans and Strategies of Production to keep pace with
Increasing demand for palm oil tion to keep
pace with inceason to keep pace with inceaonverted
Products
• The future of The oleo chemicals industry in EGYPT
dependence on Palm Oil as a major source of Raw
Material

4. • Oleo chemicals Market by:
Type (Fatty Acid, Fatty Alcohol, Glycerin, and Others)
Application (Pharmaceutical & personal care, Food &
beverages, Soaps & detergents, Polymers, and
Others)
Region (North America, Europe, Asia-Pacific, and
Rest of the World)

5. • By Type:
o Fatty acid
o Fatty alcohol
o Glycerin
o Others
• By Applications:
o Pharmaceutical & personal care
o Food & Beverages
o Soaps & Detergents
o Polymers
o Others
• By Region:
o Asia-Pacific
o North America
o Europe
o RoW

6. Increasing global demand for Palm Oil in
the Oleo chemicals and converted
Products
• Increasing the oleo Chemicals market growth, according
to the evolution of scientific and
applied research for these products, which evolve day
after day by the growth rate of the economy of the
country and people In the late 1970s.

7. Increasing global demand for Palm Oil in
the Oleo chemicals and converted
Products
• The Group identified the vast
potential of palm oil as an
excellent alternative feedstock to
the oleo chemical industry which
was then mainly based on tallow
and coconut oil.

8. • There are some factors
affecting the increase in applications Oleo
chemicals aspects of life and the follow-up to
increase and accounted for developing markets and
policies producers to maintain the flow of raw material
to the Oleo chemicals Industry and the growth of markets.

9. • Increasing demand for biodegradable and sustainable
products, coupled with recent changes in regulations, are
increasing the importance of oleo chemicals in various
segments of the chemicals industry, notably polymers,
lubricants and bio surfactants, all of which offer significant
opportunities for companies in the long run. Companies
that explore organic and/or inorganic growth options in
this market space could be poised for major growth.

10. • Oleo chemicals have been used for applications in
surfactants, personal care, soaps, detergents and food
additives. However, various new applications are
emerging where they can replace petroleum-based
products, creating exciting growth opportunities.

14. Oleo chemicals Market Analysis By Product (Fatty
Acid, Fatty Alcohol, Glycerol) And Segment
Forecasts To 2020

15. • The global oleo chemicals market was estimated at 14
million tons in the 2013 financial year and it is expected to
grow at 6%/year over the next five years to reach 18
million tons. The Asia-Pacific accounts for 68% of the
market and this is expected to grow at 8%/year over the
next five years. Surfactants, home care and personal care
are the largest end use segments.

16. • The global oleo chemicals market is expected to reach
USD 30.03 billion by 2020, according to a new study by
Grand View Research, Inc.
• Increasing demand for bio-based products from various
end-use industries such as soaps & detergents,
pharmaceuticals and personal care is expected to remain
a key driving factor for the global oleo chemicals market.
• Industry has shifted its focus towards developing bio-
based products on account of volatility in petro chemicals
prices due to supply demand imbalances which is also
expected to have a positive influence on oleo chemicals
demand over the forecast period.

17. • Initiatives from different environmental associations
regarding toxic emissions from petrochemicals are
expected to further help oleo chemicals penetrate the
market on account of its biodegradable and renewable
raw materials.

18. • The global market for natural fatty acids reached nearly
$17.1 billion and $18.3 billion in 2013 and 2014,
respectively. This market is expected to grow at a
compound annual growth rate (CAGR) of 7.1% to $25.7
billion for the period 2014-2019
• Growing demand for sustainable & biodegradable
products
• Growing petrochemical prices
• Growth of major end-use industries
• Change in environmental regulations and blending
norms
• Consistent supply of key feedstock
• Low profit margins for refiners

19. • An overview of the global markets for oleochemicals,
including natural fatty acids, biodiesel and methyl esters,
glycerin, as well as derivatives such as soaps , branched
fatty acids, and fatty alcohols.
• Analyses of global market trends, with data from 2013
and 2014, and projections of CAGRs through 2019.
• Examination of applications by end market, such as
household, personal care, oil field, and lubricants.

20. • Discussion of current and potential legislation that will
affect the industry.
• Coverage of consumer trends that drive many of the end
markets, such as cleaning, beauty, and food.
• Increased biodiesel requirement could push prices of oils
higher thereby making them less attractive vis-à-vis
petroleum feed stocks. However, this risk is largely
mitigated by a significant shift worldwide towards shale
gas as the new energy source.

21. • The continuous availability of feed stocks is a major issue
for companies operating in oleo chemicals.
• Historically, about 12-14% of the world's vegetable oil
production has been used for oleo chemical production.
The emerging applications discussed above would require
an additional 8 million tones/year by 2020, although the
projected increase in vegetable oil production from 150
million tones in 2012 to 185 million by 2020 should meet
this need.

28. Plans and Strategies of Production to
keep pace with Increasing demand for
palm oil
• Growing demand for sustainable & biodegradable
products
• Growing petrochemical prices
• Growth of major end-use industries
• Change in environmental regulations and blending
• Consistent supply of key feedstock
• Low profit margins for refiners

29. • In addition, companies are rapidly realizing that other
world regions also offer climatic conditions suitable for
palm oil plantations.
• Sierra Leone and Liberia form a major part of what is
called the new frontier in West Africa.
• For example, Golden Veroleum plans to invest up to $1.6
billion in Sierra Leone and is eyeing over half a million
hectares of land for palm plantations.

34. BASIC
OLEOCHEMICALS COMPANY
Fatty Acids
1.Acidchem International Sdn Bhd 2.Emery Oleochemicals Sdn Bhd.
3.Natural Oleochemicals Sdn Bhd 4.Global Biodiesel Sdn Bhd
5.Inno-Wangsa Oils & Fats Sdn Bhd 6.Kwantas Oil Sdn Bhd
7.Nexsol (Malaysia) Sdn Bhd 8.Pan Century Edible Oil Sdn Bhd
9.Timuran Enterprise Sdn Bhd
Glycerine
1.Pacific Oleochemicals Sdn Bhd 2.Acidchem International Sdn Bhd
3.Emery Oleochemicals Sdn Bhd. 4.IFFCO Malaysia Sdn Bhd
5.Natural Oleochemicals Sdn Bhd 6.Palm Oleo Sdn Bhd
7.Pan Century Oleochemical Sdn Bhd 8.Southern Acids Sdn Bhd
9.Kwantas Oil Sdn Bhd 10.Nexsol (Malaysia) Sdn Bhd
11.Pan Century Edible Oil Sdn Bhd 12.Timuran Enterprise Sdn Bhd
13.Carotino Bhd 14.KL-Kepong Oleomas Sdn Bhd
15.Lereno Sdn Bhd
Fatty Alcohols 1.Emery Oleochemicals (M) Sdn Bhd 2.Fatty Chemical (M) Sdn Bhd
3.FPG Oleochemical Sdn Bhd 4.KL-Kepong Oleomas Sdn Bhd
Fatty Esters 1.Carotino Sdn Bhd 2.Emery Oleochemicals (M) Sdn Bhd
3.FPG Oleochemical Sdn Bhd 4.KL-Kepong Oleomas Sdn Bhd
LISTOFOLEOCHEMICALCOMPANIES(EXPORTERS(

35. OLEOCHEMICAL DERIVATIVES
Fatty Amides 1.Kao Oleochemical (M) Sdn Bhd
2.Palm Amide Sdn Bhd
3.Southern Edible Oil industries Sdn Bhd
Metallic Stearate/
PVC Stabilizers
1.Stabilchem Sdn Bhd
2.Sun Ace Kakoh (M) Sdn Bhd
3.Baerlocher (M) Sdn Bhd
Soap Noodles 1.Southern Edible Oil Industries Sdn Bhd
2.Derichem (M) Sdn Bhd
3.Pacific Soap Manufacturing Sdn Bhd
4.Unitata Bhd
5. KL-Kepong Oleomas Sdn Bhd
6.Natural Soaps Sdn Bhd
7.Pan Century Edible Oils Sdn Bhd
Vegetable-oil
Based Polyol
1.Maskimi Polyol Sdn Bhd
2.Intermed Sdn Bhd
Palm-mixed
Carotenoids/
Toco-trienols
1.Carotech Sdn Bhd
2.Bio Organics Sdn Bhd