PINE CHEMICAL INDUSTRY

Introduction

➤ Pine cellulose: Paper Pulping

➤ Tree saps, stumps, logs: Pine chemicals

MANUFACTURING PROCESS

Pine Chemicals

MANUFACTURING PROCESS

➤ Sources of pine chemicals: living pine trees, dead stumps or logs, co-products of sulfate pulping (paper-making)

➤ Pine chemicals such as wood rosin and gum turpentine are obtained either by oleoresin distillation or wood carbonisation.

Gum is obtained via scoring living pine trees for oleoresins and further separated via distillation to gum rosin and gum turpentine. Wood rosin is extracted from stumps and pine logs. Tall oil is obtained via treatment of black liquor skimming, a by-product of sulfate pulping, with acid.

PINE CHEMICALS

CATEGORIES1. Tall Oil Distillation (eg. Tall Oil Rosin, Tall Oil Pitch)

2. Other crude pine chemicals (eg. Sterols, Pine Tar)

3. Rosin/resin derivatives (eg. Maleic Resin, Longifolene)

4. Turpentine derivatives (eg. Alpha Pinene, Camphor Powder)

MARKET OUTLOOK

Pine Chemicals

A study by MarketsandMarkets projected the pine chemical industry to reach $4.8 Billion by 2020.

DRIVERS AND CHALLENGES

Patented Pine Chemicals Patent serve as a barrier of entry for pine industry.

Environmentally friendly

Movement towards renewable raw materials and reduced carbon emissions

Biomass EnergyIn the US, there are certain governments promoting burning of co-products from paper making as energy

instead of harvesting them for pine chemicals.

Diversion for Crude Tall Oil

(CTO) as Biofuels

Subsidies and incentives from European Commission for the development of CTO-based biofuels

IMPORTERS AND EXPORTERS

Palm trees, the direct source of pine chemicals, are mostly concentrated in North America and East Asia

With key industrial players concentrated among these countries, it is likely that they are either the top importers or exporters.

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