The 3rd ICIS Asian Surfactants Conference returned ... ICIS(2)_E.pdf · The 3rd ICIS Asian...
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International Conference Report///t
The 3rd ICIS Asian Surfactants Conference
returned Singapore!(2) 14th - 15th November 2013, Pan Pacific, Singapore
The 3rd ICIS Asian Surfactants Conference had returned to Singapore! Its third year, the meeting
was once again built on the core elements of an ICIS Conference – an up-to-date, informative and
business critical agenda, high-level speakers addressed the key topics facing the industry and
extensive opportunities for networking with influential players from across the surfactants value
chain. 2013 conference was attended by over 80 participants drawn from 14 countries around the
world. The followings are a short summary of 1st day pm and 2nd day each session:
Day 1 Day 1 Day 1 Day 1 ---- Thursday 14 November 2013 Thursday 14 November 2013 Thursday 14 November 2013 Thursday 14 November 2013
14:0014:0014:0014:00 ExampExampExampExamples of sustainable solutions les of sustainable solutions les of sustainable solutions les of sustainable solutions for for for for the the the the
home and personal care marketshome and personal care marketshome and personal care marketshome and personal care markets
Dr Galder Cristobal, Asia Dr Galder Cristobal, Asia Dr Galder Cristobal, Asia Dr Galder Cristobal, Asia
Pacific R&DPacific R&DPacific R&DPacific R&D Manager, Manager, Manager, Manager,
NOVECARENOVECARENOVECARENOVECARE
Permission has not been given
to share his presentation.
14:3014:3014:3014:30 Ingredients sourcing strategies andIngredients sourcing strategies andIngredients sourcing strategies andIngredients sourcing strategies and
challengeschallengeschallengeschallenges
Samrat Sehgal, Samrat Sehgal, Samrat Sehgal, Samrat Sehgal, Head of Head of Head of Head of
Supply Chain,Supply Chain,Supply Chain,Supply Chain, RECKITT RECKITT RECKITT RECKITT
BENCKISERBENCKISERBENCKISERBENCKISER
Topics were raw material cost
management, Considerations
when selecting raw materials,
Volume forecast required in raw materials.
But, permission has not been given to share his
presentation
15:4515:4515:4515:45 The role of sulphoThe role of sulphoThe role of sulphoThe role of sulphonation in today'snation in today'snation in today'snation in today's detergent detergent detergent detergent
industry industry industry industry ---- worldwide and in worldwide and in worldwide and in worldwide and in AsiaAsiaAsiaAsia
Icilio Adami, R&D Technology Director,Icilio Adami, R&D Technology Director,Icilio Adami, R&D Technology Director,Icilio Adami, R&D Technology Director, DESMET DESMET DESMET DESMET
BALLESTRABALLESTRABALLESTRABALLESTRA
Icilio Adami was born in Monza
(Italy) in 1951 and graduated in
Chemistry at the University of
Milan in 1976. Icilio joined Desmet
Ballestra in 1977 and was
responsible for the laboratory and
pilot plant. Since then, he has been regularly
involved in the development of processes and
technologies for the production of formulated
detergents and surfactants. He is the author and
co-author of several publications and patents
concerning the production technology of detergents
and anionic surfactants. Presently he covers the
position of Director of Research & Technology
Development of Desmet Ballestra in Italy.
●●●●Content:Content:Content:Content:
•••• SulphonationSulphonationSulphonationSulphonation basisbasisbasisbasis and and and and eeeevolutionvolutionvolutionvolution
•••• SulphonatesSulphonatesSulphonatesSulphonates worldworldworldworld marketmarketmarketmarket overwiewoverwiewoverwiewoverwiew
Anionic surfactants can be produced by SO3.
•••• SulphonationSulphonationSulphonationSulphonation processprocessprocessprocess economicseconomicseconomicseconomics
The worldwide installed Sulphonation capacity has
been continuously changing from sulphonators for
captive use to surfactant producers serving the
market.
•••• PerspectivePerspectivePerspectivePerspective developmentsdevelopmentsdevelopmentsdevelopments
●Ongoing sulphonation are developed as under:
• Reduction of overall process energy demand
• Reduction of losses, by-products and effluents
• Improvement in operation flexibility
• Improvement of obtainable product range and
quality
• Diversification of commercial product physical
form
●Sulphonates in Asia will continue to be the
backbone of the detergent industry due to :
• Increasing detergent demand by the consumers
• Increasing availabilityof the main «detergent
feedstocks» thanks to local increased production
capacity
• Outstanding evolution of detergent recipes based
on the «combination» of various surfactants
16:1516:1516:1516:15 The feedstock story (minus palm oil) inThe feedstock story (minus palm oil) inThe feedstock story (minus palm oil) inThe feedstock story (minus palm oil) in the the the the
emerging SE Asian economiesemerging SE Asian economiesemerging SE Asian economiesemerging SE Asian economies
AndreaAndreaAndreaAndrea Fitzgerald, Senior Consultant, Fitzgerald, Senior Consultant, Fitzgerald, Senior Consultant, Fitzgerald, Senior Consultant, Energy & Energy & Energy & Energy &
Chemicals Consulting, Asia,Chemicals Consulting, Asia,Chemicals Consulting, Asia,Chemicals Consulting, Asia, NEXANTNEXANTNEXANTNEXANT
This presentation was cancelled.
Day 2 Day 2 Day 2 Day 2 ---- Friday 15 November 2013 Friday 15 November 2013 Friday 15 November 2013 Friday 15 November 2013
9:159:159:159:15 LAB, LAS, Fatty Alcohols & Acids LAB, LAS, Fatty Alcohols & Acids LAB, LAS, Fatty Alcohols & Acids LAB, LAS, Fatty Alcohols & Acids –––– Outlook, Outlook, Outlook, Outlook,
trends and market drivers intrends and market drivers intrends and market drivers intrends and market drivers in AsiaAsiaAsiaAsia
Neil A Burns, Managing PartnNeil A Burns, Managing PartnNeil A Burns, Managing PartnNeil A Burns, Managing Partner, er, er, er,
NEILNEILNEILNEIL A BURNS LLCA BURNS LLCA BURNS LLCA BURNS LLC
●LAB and LASLAB and LASLAB and LASLAB and LAS
Linear Alkyl Benzene Sulfonate
(LAS) is World�s largest
Surfactant - ~ 4 Million MT, 27%
of Global Surfactant Market. LAB
is only used to make LAS. And LAB Production
Capacity is 3 Million MT/yr
LAB in Asia, Middle EastLAB in Asia, Middle EastLAB in Asia, Middle EastLAB in Asia, Middle East .. Out of a 3 Million MT/yr .. Out of a 3 Million MT/yr .. Out of a 3 Million MT/yr .. Out of a 3 Million MT/yr
GLOBAL MarketGLOBAL MarketGLOBAL MarketGLOBAL Market
Half the market’s in Asia and Capacity is LONG
(~20%). Demand for LAB in Asia 1.40m t/y vs
capacity of 1.68m t/y. MENA has small market and
450 KMT/yr LONG capacity. MENA region has a
capacity of 700 KMT vs demand of 250 KMT.
Projected demand growth in both regions: 3-5%/y in
2013. Main producing countries in Asia: India,
China, South Korea, Taiwan,Indonesia. Main
producing countries in MENA region: Saudi Arabia,
Qatar, Iran,Egypt.
Where does all the LAB go…?Where does all the LAB go…?Where does all the LAB go…?Where does all the LAB go…?
Middle East cargoes are exported to Africa, Asia,
Europe and South America, small volumes also to
Turkey. Cargoes from Egypt head towards Turkey,
South Africa. Egypt is a favoured exporter to Turkey,
as it is exempted from import duty by Turkey.
Turkey has a demand of 100 KMT/yr and no local
production. After Turkey-South Korea Free Trade
Agreement in May 2013, South Korean cargoes are
also seen in Turkey. Chinese cargoes are also being
exported increasingly to South Korea, Southeast
Asia and India.
New LAB ProNew LAB ProNew LAB ProNew LAB Projects in the Regionjects in the Regionjects in the Regionjects in the Region
Thai Oil expected to start up 100KMT LAB plant at
its refinery at Sri Racha in Chonburi province by
2015.
Farabi Petrochemicals evaluating a world-scale
LAB plant in Jazan, KSA. Study to be completed in
Q1 2014. Farabi already operates a 150KMT LAB
and n-paraffin facility at Al Jubail. Base oils
producer Riyadh Oil Factory looking to set up a new
120KMT LAB and 90 KMT n-paraffin facility in
Riyadh in 2017 and 40 KMT LAS the year after.
Iraq’s Arab Co for Detergent Chemicals (Aradet) is
evaluating doubling capacity of its 50,000 t/year
plant in 2015-2016. Indian Oil to increase capacity
of its LAB plant at Vadodara in Gujarat by 42 KMT
in 2016-2017, to 162 KMT.
Fatty Acids and AlcoholsFatty Acids and AlcoholsFatty Acids and AlcoholsFatty Acids and Alcohols
• Palm Oil is Key to Asia and also provides PKO
• PKO (Palm Kernel Oil) is the Key -> Fatty
Alcohols
• 2.5 Million MT Fatty Alcohol Market
• w over 3 Million MT Capacity
• Asia has 40% of Demand and 55% of Capacity
With a lot more to come – tilting the balance further
toward Asia
ConclusionConclusionConclusionConclusion
• Asia is the Centre of Gravity for Production and
Consumption of Workhorse Surfactants
• Converting LAB to LAS is Hard work for little $
• The Alcohol Boom is underway – watch out if you
are not integrated
• Shale boom is here .. and coming to Asia
• It�s all about the Supply Chain
9:459:459:459:45 Surfactants and enzymes Surfactants and enzymes Surfactants and enzymes Surfactants and enzymes –––– friends or friends or friends or friends or foes?foes?foes?foes?
Julie Malbaek, Regional Marketing Julie Malbaek, Regional Marketing Julie Malbaek, Regional Marketing Julie Malbaek, Regional Marketing
Manager, NOVOZYMESManager, NOVOZYMESManager, NOVOZYMESManager, NOVOZYMES
Enzymes mode of action in general
• Enzymes are biological catalysts
in the form of proteins
• Enzymes are present in all living cells, where
they play a vital role for the metabolism
• Enzymes are fully biodegradable
• Enzymes have high substrate specificity
• Enzymes speed up reactions by lowering the
energy barrier
Detergent enzymes functionality
Stain-removing enzymes help surfactants lift of the
stains.
Enzymes and surfactants
- Together for a cleaner, greener future.
Sustainable, healthy and efficient approach to
household care products.
• Contribute towards creating greener and more
biodegradable detergent products.
• Improve social sustainability by promoting better
hygiene & health via deep cleaning.
• Formulate products that are optimized for
efficient resource usage.
Let’s strengthen the friendship between enzymes
and surfactants.
• Find the most compatible fit between enzymes
and surfactants.
• Seek synergies and formulation routes that will
increase the performance level.
• Provide consumers and manufacturers with
superior formulas and give them value for money!
11:0011:0011:0011:00 Skin care market and trends inSkin care market and trends inSkin care market and trends inSkin care market and trends in IndonesiaIndonesiaIndonesiaIndonesia
Hefriyan Handra, Head Hefriyan Handra, Head Hefriyan Handra, Head Hefriyan Handra, Head of of of of
Research &Research &Research &Research & Development, Development, Development, Development,
MARTHA TILAARMARTHA TILAARMARTHA TILAARMARTHA TILAAR GROUPGROUPGROUPGROUP
●●●●MARKETMARKETMARKETMARKET TREND TREND TREND TREND
Brand landscape is becoming more dynamic;
cautiously optimistic outlook on Indonesia cosmetic
market.
Leading brands focusing more and more on
improving customer experience.
Social media is becoming an important marketing
tool for cosmetics companies.
Green cosmetics products are becoming more
popular compare to the past.
Cosmetics brands are keen to explore e-commerce
opportunities.
Increase in products in smaller packaging formats.
●SKIN CARE MARKET IN INDONESIASKIN CARE MARKET IN INDONESIASKIN CARE MARKET IN INDONESIASKIN CARE MARKET IN INDONESIA
Skin care current value sales increase by 24% in
2012 to reach Rp11.3 trillion.
Demand for whitening skin care products continues
to increase. Anti-agers leads growth in 2012, with
current value sales increasing by 29%. Skin care
records a higher price increase in 2012 than in 2011
due to rising production costs. Skin care has a
projected forecast period constant value CAGR of
15%.Acne treatments recorded double-digit growth
of 15% in 2012, with demand being fuelled by
increasing concern amongst women about the
smoothness of their facial skin.Rising demand for
skin whitening facial care products fuelled facial
skin care sales in 2012, with sales being driven by
the desire of most Indonesian women to have fairer
skin. Some 53% and 33% of facial moisturizers and
facial cleansers respectively contain whitening
agents.
Concentrated serum and eye cream still accounted
for only a niche percentage of value sales within
anti-agers. The majority of anti-agers sales are still
accounted for by facial day and night moisturisers
SPASPASPASPA
SPA Industries grow significantly from year to year.
Every year, the growth of SPA Industries is
7%.Lead to increase the SPA Products. SPA Product
characteristics : Exploring the biodiversity of
culture and nature. Indonesia is an archipelago
more than 17.000 islands, with about 400 volcanoes,
30.000 plants, 300 ethnicities
●KEY TREND & DEVELOPMENTKEY TREND & DEVELOPMENTKEY TREND & DEVELOPMENTKEY TREND & DEVELOPMENT
MACRO ECONOMYMACRO ECONOMYMACRO ECONOMYMACRO ECONOMY
•Economic growth in Indonesia improve in 2012,
with GDP increasing at the fastest rate since 1996.
GDP increased by 6.46% in 2011 and by 6.54% in
2012.
•The unemployment rate declined to 6.32% in the
first quarter of 2012 compared to the same period in
2011.
•The Rupiah depreciated strongly against the US
dollar, falling from an average of Rp8,776.90 per US
dollar in 2011 to Rp9,174.15 per US dollar in 2012,
and now Rp 11,500 in mid 2013
CONSUMERSCONSUMERSCONSUMERSCONSUMERS
•Rising demand for halal cosmetics
•Celebrity endorsers play major role in marketing
campaigns of leading companies.
•Consumer confidence remains high.
• Rising level of sophistication, new needs &
expectations to be satisfied.
•Female dominant market; men’s products catching
up.
•Leading players increase social media marketing
activities.
REGULATORY ENVIRONMENTREGULATORY ENVIRONMENTREGULATORY ENVIRONMENTREGULATORY ENVIRONMENT
•Notification mechanism
•More stringent quality standard and process for
imported products
•Several new regulations are being developed that
can create problems for cosmetic business in the
future
•Until August 2013, imported products has growth
faster than local products (60 % imported sku
compared to 40% local)
11:3011:3011:3011:30 The Philippines: The oleoThe Philippines: The oleoThe Philippines: The oleoThe Philippines: The oleo----economy,economy,economy,economy, companies companies companies companies
and downstream potentialand downstream potentialand downstream potentialand downstream potential for investment in for investment in for investment in for investment in
chemical derivachemical derivachemical derivachemical derivativestivestivestives
Dean Lao Jr, Managing Director,Dean Lao Jr, Managing Director,Dean Lao Jr, Managing Director,Dean Lao Jr, Managing Director, CHEMREZ CHEMREZ CHEMREZ CHEMREZ
TECHNOLOGIESTECHNOLOGIESTECHNOLOGIESTECHNOLOGIES
Dean (Jun Lao to his friends) oversees Chemrez
Technologies as its Managing Director. As a listed
family business, he is actively
involved in marketing, R&D and
manufacturing of resins,
oleochemicals and colorants to
serve a wide range of industries.
In his capacity as Chairman of the
United Coconut Associations of the Philippines
(UCAP) and as President of the Philippine
Oleochemical Manufacturing Association (POMA),
he seeks to unify the various sub-sectors of the
coconut industry into a progressive and sustainable
industry - a role that involves many business
sectors and government departments. As President
of the Philippine Biodiesel Association (TPBA), his
advocacy for the use of biofuels has been
instrumental in the successful mandate of biofuel
blends in the Philippines’ energy mix.
Jun is a father of four and one who enjoys the
occasional round of golf and outdoor activities
involving nature and water.
• Coconut oil supply chain and current production
figures
• The Philippine coc-biodiesel mandate and the
market dynamics involved
• The Philippine oleochemical
industry overview
• Market positioning for cocooleochemicals
• Investments in the oleo-economy
Philippine Oleochemicals (2013)
・No active fatty acid production
・Shift from maker to taker of fatty acid & alcohol
・Capitalizing on sustainability of CNO
・B2 to B5 mandate – CNO is only feedstock
・Favors forward integration
What’s in favor of the PhilippinesWhat’s in favor of the PhilippinesWhat’s in favor of the PhilippinesWhat’s in favor of the Philippines????
FEEDSTOCK
・Sustainable: coconut at your doorstep
・Food vs fuel debate is misplaced
MARKET
・Captured market: 100m consumers
・Fastest growing: GDP +7.6% in 1H-2013
・MNCs regionalized elsewhere – opportunity to
integrate forward
LOGISTICS
・Heart of SE Asia
・Cheap outbound freight
・Quality workforce & low labor costs
Quick Facts for Investors
・Investment grade: Fitch, Moody’s, S&P
・Incentives for EcoZone locators
・Minimum wage: $12/day
・Skilled & supervisory wages: $900-1200/mo
・Niche for Coco Fatty Acid producer
Where others see risks, those who see the
opportunity can be very successful
・Increasing CNO production to meet demand
・Competitiveness from value integration
・Oleochem co’s – should play to its strength as fatty
acid/alcohol taker, & integrate forward
・Coco Methylester is oleochem backbone
・The right environment for investment
・Typhoon damage can be overcome