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The growth and challenges of the oleochemicals industry in South East Asia(SEA)
The growth and challenges of The growth and challenges of the the oleochemicalsoleochemicals industry in industry in South East AsiaSouth East Asia(SEA)(SEA)
By S.C. CheahIOI Oleochemical Industries
Presented at the ICIS 6thWorld Oleochemicals Conference 2007,Sheraton Hotel, Brussels, Belgium.
October 24, 2007
PRESENTATION OVERVIEW
1.Development of Oleochemicals Industry 2. Current Oleochemicals producers in SEA
¤ Malaysia¤ Indonesia¤ Philippines¤ Thailand
3. Expansion in India & China4.Challenges' faced by SEA’s OleochemicalsIndustry
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Development of OleochemicalsIndustry
¤ 18th century:
� Initial used for consumer and candle products
¤ 70s:
� 1st petroleum crisis
� oleochemicals started to replace petrochemical
¤ 80s:
� Global population expand
� 1st company in the world to produce Oleochemicalsusing PO/PKO- ACIDCHEM INTERNATIONAL, Malaysia.
� Increasing demand on vegetable based material
� ‘Green Drive’
Development of OleochemicalsIndustry-Cont’
¤ 90s:� supply of tallow and coconut oil unable to keep up the increasing demand
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¤ 90s:� supply of tallow and coconut oil unable to keep up the increasing demand
� Palm oil (PO) & Palm Kernal Oil (PKO) has been identified as a sustainable supply of feedstock to the oleochemicals.
Development of OleochemicalsIndustry-Cont’
World Production of PKO & CNO (1980-2006)
05001000150020002500300035004000
1980
1983
1986
1989
1992
1995
1998
2001
2004
Year
MT ('000)
Palm Kernal Oil Coconut OilReference: Statistics from IOI Corp. (2007)
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World Production of PO & Tallow (1980-2006)
0500010000150002000025000300003500040000
1980
1983
1986
1989
1992
1995
1998
2001
2004
Year
MT('000)
Palm Oil TallowReference: Statistics from IOI Corp. (2007)
Development of OleochemicalsIndustry-Cont’
¤ 90s:� supply of tallow and coconut oil unable to keep up the increasing demand
� Palm oil (PO) & Palm Kernal Oil (PKO) has been identified as a sustainable supply of feedstock to the oleochemicals.
� PO & PKO annual growth up to 9% annually.
¤ 21st Century:� SEA - the largest OC producing region
� >80% PO & PKO produced from Malaysia, Indonesia & Philippines
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Fatty Acid & Alcohol Producers in SEA
MalaysiaMalaysia
IndonesiaIndonesia
PhilippinesPhilippinesThailandThailand
SingaporeSingapore
FATTY ACID=800,751 MT
FATTY ALCOHOL=414,249 MT
Cisadane
70,000 MT/yr
PT Sinar
Oleochemicals Int
80,000 MT/yr
PT Ecogreen
Oleochemicals
80,000 MT/yr
Permata Hijau
120,000 MT/yr
PT Musim Mas
280,000 MT/yr
PT Sumi Asih
40,000MT/yr
PT Flora Sawita Chemindo
50,751 MT/yr
PT Flora Sawita Chemindo
39,249 MT/yr
PT Musim Mas
100,000 MT/yr
PT Ecogreen Oleochemicals
115,000 MT/yr
Sinar Oleo
80,000 MT/yr
Dumba Mas
160,000 MT/yr
FATTY ACID=2,160,000 MT
FATTY ALCOHOL=471,000 MT
Palm Oleo/Uniqema
390,000 MT/yr
Acidchem/Pan Century
720,000 MT/yr
Natural Oleochmicals
400,000 MT/yr
Inai Bumi Sdn Bhd
10,000 MT/yr
Cognis & Cognis
Rika
80,000 MT/yr
FPG Oleochemicals
92,000 MT/yr
Oleo Mas
110,000 MT/yr
Fatty Chemical
179,000 MT/yr
Pacific Oleo Ind
140,000 MT/yr
Cognis & Cognis Rika
110,000 MT/yr
Iffco
140,000 MT/yr
Southern Acids & Pofachem
80,000 MT/yr
Thai OleoChemicals
100,000 MT/yr
Imperial Ind Chemicals
4,500 MT/yr
Thai Fatty Alcohol
100,000 MT/yr
FATTY ACID=104,500 MT
FATTY ALCOHOL=100,000 MT
United Coconut
Chemical Inc.
36,487 MT/yr
Philippines Kao Inc.
100,000 MT/yr
United Coconut
Chemical Inc
73,302 MT/ yr
Pan Century
Surfactant
30,000 MT/yr
FATTY ACID=73,302 MT
FATTY ALCOHOL=166,487 MT
Reference: Statistics from Acidchem Int. (2007)
Development of OleochemicalsIndustry-Cont’
¤ 90s:� supply of tallow and coconut oil unable to keep up the Oleochemicals demand
� Palm oil (PO) & Palm Kernal Oil (PKO) has been identified as a sustainable supply of feedstock to the oleochemicals.
� PO & PKO annual growth up to 9% annually.
¤ 21st Century:� SEA - the largest OC producing region� >80% PO & PKO produced from Malaysia, Indonesia & Philippines
¤ 21st Century:� Economic growth in Asia eg. China & India will push for further development of Oleochemicals industry
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Fatty Acid & Alcohol Producers (China & India)
MalaysiaMalaysia
IndonesiaIndonesia
PhilippinesPhilippinesThailandThailand
ChinaChina
IndiaIndia
SingaporeSingapore
FATTY ACID=2,333,520 MT
FATTY ALCOHOL=777,000 MTKerry
150,000 MT/yr
Taiko
157,000 MT/yr
RugaoShuangmaChem
200,000 MT/yr
Boxing Huarun oleo
50,000MT/yr
Feixiang Chem (Zhangjiagangi)
60,000 MT/yr
Yihai Sasol Oleochemicals Co. Lts.
60,000 MT/yr
Shanghai Soap
Grp. Rugao
80,000 MT/yr
Kwantas
100,000 MT/yr
China Resource
110,000 MT/yr
Boxing Huarun oleo
120,000 MT/yr
Dong Ma
Palm(Zhangjiagang)
135,000 MT/yr
Luzhou Natural Gas
15,000MT/yr
Zhejiang Fenghuang Chemical
20,000 MT/yr
Wuxi Tongtai Chemicals
20,000 MT/yr
Dalian Sifang United Chemicals Co.
20,000 MT/yr
Sangqiu Longning Chemicals
40,000 MT/yr
Guangdong Jiangmen Jianghai
15,000 MT/yr
Dong Ma Oleochem
(Guangzhou)
75,000 MT/yr
Others
484,520 MT/yr
Others
39,000 MT/yr
NJC
18,000 MT/yr
Teck Guan
80,000 MT/yr
Tengta Northern Chemicals Co. Ltd
80,000 MT/yr
Liaoyang Huaxin Chemicals Corp
140,000 MT/yr
Liaoyang Huaxin Chemicals Corp
140,000 MT/yr
Wilmar
264,000 MT/yr
Yihai Oleoche
(Lianyungang)
360,000 MT/yr
Reference: Statistics from Acidchem Int. (2007)
FATTY ALCOHOL=160,000 MT
VVF
180,000 MT/yr
Godrej
160,000 MT/yr
Others
450,000 MT/yr
VVF
120,000 MT/yr
Godrej
40,000 MT/yr
FATTY ACID=790,000 MT
Outlook on SEA’sOleochemicals Industry
¤ Strong expansion of Palm Oil production
¤ Plantation Companies to Invest Profits in Oleochemicals
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Challenges faced by SEA’sOleochemical Industry
¤Development of biodiesel industry
Biodiesel Producers in SEA
MalaysiaMalaysia
IndonesiaIndonesia
PhilippinesPhilippinesThailandThailand
SingaporeSingapore
BIODIESEL=279,520 MT
Others
82,720MT/yr
Romtron
8,800 MT/yr
Senbel Fine Chemical
22,000 MT/yr
Chemrez Incorporated
66,000 MT/yr
PNOC
100,000 MT/yr
BIODIESEL=866,000 MT
CMS Resource
16,000 MT/yr
Peter Cremer
100,000 MT/yr
MAE Engineering
150,000 MT/yr
Natural Fuel
600,000 MT/yr
BIODIESEL=35 MT
Bangchak Petroleum
35 MT/yr
BIODIESEL=1,478,000 MT
PT Sumi Asih
36,000 MT/yr
Bakrie Sumatera
100,000 MT/yr
PT Astra Agro Lestari
150,000 MT/yr
Domba Mass
12,000 MT/yr
CMS Resources
16,000 MT/yr
PT Asian Agri
200,000 MT/yr
Wilmar Holding
1,000,000 MT/yr
BIODIESEL=4,670,000 MT
Zurex Corp
200,000 MT/yr
Biodiesel LD SdnBhd
300,000 MT/yr
Global Bio-Diesel
350,000 MT/yr
BiodieselSP Sdn Bhd
350,000 MT/yr
DXN Oleochemicals
900,000 MT/yr
Empee Industries
60,000MT/yr
Carotina Sdn Bhd
60,000 MT/yr
Ganz Biofuels
30,000 MT/yr
Global Bioenergy
30,000 MT/yr
Lereno Sdn Bhd
30,000 MT/yr
Success Nexus
175,000 MT/yr
QL Bioenergy Sdn. Bhd
175,000 MT/yr
DXN Biofuels Sdn Bhd
200,000 MT/yr
ECO Solutions Co. Ltd
200,000 MT/yr
Himpunan Sari
200,000 MT/yr
Kumpulan Fima
60,000MT/yr
Kemasul Forest
60,000 MT/yr
JC Chang
60,000 MT/yr
Golden Hope M'sia
60,000 MT/yr
Fima Bulkers
60,000 MT/yr
MAE Engineering
60,000 MT/yr
YPJ Palm Int.
120,000 MT/yr
Carotech
150,000 MT/yr
Weschen Tech
60,000 MT/yr
PGEO Edible Oils
100,000 MT/yr
Golden Hope
30,000 MT/yr Inai Bumi Sdn Bhd
100,000 MT/yr
IJM/CTI Biofiels
90,000 MT/yr
GS Palm Sdn Bhd
100,000 MT/yrKulim (M) Bhd
100,000 MT/yr
Zelmac Resources
100,000 MT/yr
Global Bonanza
100,000 MT/yr
Reference: Statistics from Acidchem Int. (2007)
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Biodiesel Producers (India & China)
ChinaChina
IndiaIndia
BIODIESEL=3,070,000 MT
Bioflux Biofuel
300,000 MT/yr
Huacheng Biofuel
400,000 MT/yr
Sunshine Tech Group (Britain)
500,000 MT/yr
Zhonghe Energy
500,000 MT/yr
Qingjiang Bioenergy Tech
750,000 MT/yr
Gushen Biodiesel
100,000 MT/yr
Huawu Group
100,000 MT/yr
CNOOC
100,000 MT/yr
Guofeng Group, Zhonglian Co.
200,000 MT/yr
Biolux International (Austria)
250,000 MT/yr
Zhuoyue New Energy
50,000 MT/yr
Fujing Oils Group HK Fuel
(Asia) Grp
100,000 MT/yr
Yuanhua Energy Tech
30,000 MT/yr
Tianguan Group
30,000 MT/yr
Zhenghe (Hainan)
Bioenergy
10,000 MT/yr
Groundnut Research
10,000 MT/yr
Jintongfu Biodiesel
10,000 MT/yr
Tianyuan Bio Clean
Energy
20,000 MT/yr
China East River
50,000 MT/yr
Gushan Oleochem
10,000 MT/yr
MalaysiaMalaysia
IndonesiaIndonesia
PhilippinesPhilippinesThailandThailand
SingaporeSingapore
BIODIESEL=12,000 MT
Southern Online
Biotech
12,000 MT/yr
Reference: Statistics from Acidchem Int. (2007)
Challenges faced by SEA’sOleochemical Industry
¤Development of biodiesel industry
¤Over expansion resulting in over capacity
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¤Development of biodiesel industry
¤Over expansion resulting in over capacity
¤Oversupplied of glycerine/glycerol in the market
Challenges faced by SEA’sOleochemical Industry
World Supply & Demand of Fatty Acid (2005-2009 est.)
Year
Million (MT)
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World Supply & Demand of Fatty Alcohol (2005-2009 est.)
Million (MT)
Year
Oleochemicals Production in SEA
Reference: Statistics from Acidchem Int. (2007)
MT
SEABiodiesel Fatty Acid Glycerine Alcohol
Malaysia 4,145,000 2,160,000 264,280 471,000
Indonesia 1,478,000 800,751 99,140 414,249
Philippines 279,520 73,302 31,018 166,487
Thailand 35 104,500 650 100,000
Singapore 866,000 - - -
Total 6,768,555 3,138,553 395,088 1,151,736
India 12,000 790,000 - 160,000
China 3,070,000 2,333,520 240,000 777,000
Total 9,850,555 6,262,073 635,088 2,088,736
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Challenges faced by SEA’sOleochemical Industry-Cont’
¤Higher production cost
¤Shortage of cargo space
¤ Increasing freight rate
Challenges faced by SEA’sOleochemical Industry-Cont’
¤ Scarce of Land Resource for future plantation development
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¤ Scarce of Land Resource for future plantation development
¤ REACH Legislation
Challenges faced by SEA’sOleochemical Industry-Cont’
THANK YOU.