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FOCUS ON S U R FAC TA N T S

tonnes/y fatty alcohols and 150,000 estates and 6.5 tonnes each from
tonnes/y methyl esters facilities in
Kuantan. Glycerin is currently
another 13 estates. The company,
which has 45 estates in total, was
ASSOCIATED
provided by P&G from the US and the
UK. Most of the glycerin from the
trying to achieve the targeted yield
from the remaining estates. In future,
PRODUCTS
refinery will be exported to other parts IOI intends to increase the
of Asia for use in personal care and contribution from its downstream Astaris trims phosphates, increases
food products. activities of manufacturing, refining prices
and specialty fats and oleochemicals Astaris, the phosphate chemicals joint
Chemical Week, 24 Sep 2003, 165 (33), 39
to 20%–25% of earnings. venture of Solutia and FMC, is
The Star, 22 & 30 Oct 2003 (Website: restructuring and will close plants in
Southern Acids looks for more Conda, IA; Green River, WY; and
http://www.thestar.com.my)
Indonesian estates Trenton, MI; in the next 9 months.
Malaysia’s Southern Acids Bhd plans Other Production will be consolidated at St
to purchase more oil palm plantations Louis; Carteret, NJ; and Lawrence,
in Indonesia due to the low operating Price rise for BASF’s ethanolamines KS. FMC will take a pre-tax
costs there. Also oil palm plantations restructuring charge of $40-45 M,
With immediate effect, BASF is Solutia will take a charge of 55
in Indonesia are generally cultivated increasing its price for all types of
on virgin lands resulting in higher cts/share. The step will improve the
ethanolamines (mono-, di-, and company’s competitive position, partly
yield. Oil palm plantations contribute triethanolamines) by €70/tonne as
about 10% of the revenues of by trimming its role in the STP
existing contracts allow. market.
Southern Acids while the Unsatisfactory margins from this
oleochemicals division contributes In related news, Astaris LLC has
product group due to higher raw hiked phosphates prices, by between
about 80%. The US, Europe, Taiwan, material and distribution costs are the
and Japan are the bulk importers of $2.50 and $4/cwt, in an effort to
reason for this increase. Recently improve margins. Sodium phosphate
oleochemicals from Southern Acids. BASF significantly improved the quality
The company recorded a pre-tax profit is commanding lower prices than
of monoethanolamine. Ethanolamines aluminium phosphate and potassium
of Ringgit 3 M from a turnover of are used as intermediates for the
Ringgit 83.9 M for 1Q ended Jul 2003 phosphate. The price increases have
production of surfactants, wood been mostly accepted by the markets.
as against pre-tax profit of Ringgit 8.1 preservatives, herbicides, process
M on revenue of Ringgit 70.6 M for 1Q The phosphates market is over-
chemicals for gas treatment, lubricants supplied, capacity utilization rates are
ended Jul 2002. and additives for cement and concrete. about 50% and end-use volumes are
The Star, 29 Oct 2003 (Website: BASF operates two production sites falling. In addition domestic markets
http://www.thestar.com.my) with a total capacity of 175,000 are being eroded by low cost imports.
tonnes/y. With independent sites in
Ludwigshafen (Germany) and Antwerp Chemical and Engineering News, 13 Oct 2003, 81
CPO players looking at windfall (41), 19-20 (Website: http://www.cen-online.org) &
(Belgium), BASF can assure maximum
Chemical Market Reporter, 13 Oct 2003 (Website:
The crude palm oil (CPO) producers supply reliability. http://www.chemicalmarketreporter.com)
have said that the expected rise in
Press release from: BASF AG, Germany. Website:
CPO prices to Ringgit 2000/tonne in http://www.basf.de (15 Sep 2003)
the first week of Nov 2003 is a Minerals boost Anglo-American profits
positive sign for plantation players. Anglo-American plc of the UK
However, the long-term industrialists PMD increases EO capacity
achieved a 26% growth to 407,400
have said they would prefer stabilized In Saudi Arabia, Project Management tonnes in overall production of
prices of around Ringgit 1400- and Development (PMD) has phosphates in 1H 2003. Headline
1600/tonne, claiming that the present increased ethylene oxide (EO) income grew by 2% at $856 M, partly
price of about Ringgit 1900/tonne is capacity from 150,000 tonnes/y to driven by the positive financial result
not a good sign in the long run as it 530,000 tonnes/y while cutting of the company’s industrial minerals
could lead to oversupply and a propylene and PP capacities at its segment. Industrial Minerals
subsequent reduction in CPO prices integrated cracker project at Al-Jubail. subsidiary Copebrás, a leading
in 2005 or 2006. The average CPO EO will be used in downstream Brazilian producer of phosphate
price for 2003 is likely to be between plants, including: 475,000 ethylene fertilizers, phosphoric acid and STPP,
Ringgit 1550-1600/tonne, higher than glycol, 100,000 tonnes/y grew by almost 50%. Anglo-American
2002’s Ringgit 1352/tonne. ethanolamines, 50,000 tonnes/y holds a 73% stake in Copebrás.
In related news, IOI’s executive methylamine, 50,000 tonnes/y
chairman Tan Sri Lee Shin Cheng has dimethylformamide, 15,000 tonnes/y
Industrial Minerals, Oct 2003, (433), 12
stated that the CPO yield should be choline chloride, 20,000 tonnes/y
increased to 8 tonnes/hectare/y from methyl diethanolamine and dimethyl A novel route to zeolites
the current Malaysian national ethanolamine, and 85,000 tonnes/y
average of 3.8 tonnes/hectare/y. IOI A new approach to the synthesis of
ethoxylates.
had achieved yield of 7 zeolites using a structure-directing
tonnes/hectare/y from two of its Asian Chemical News, 20 Oct 2003, 9 (421), 2 agent (SDA) that can be removed

DECEMBER 2003 3

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