harsh chemicals. Volume increases,while healthy overall, will be partiallyrestrained by the use of higher-valueingredients that are more effective atlower loadings. The increases inaverage age and ethnicity of the USpopulation are seen as key drivingforces, as well as the trend towardsusing more ‘natural’ products [seealso page 5 and Focus onSurfactants, Jun 2005]. As a result,active and plant-derived ingredientswill benefit the most; the naturalproduct segment of the US cosmeticssector is projected to expand at 8%/yto $1.1 bn in 2009.

According to Freedonia, supplyingmaterials that can improve on existingformulations, or provide productdifferentiation or opportunities inunder-served market niches are thekeys to gaining or retaining marketshare in the cosmetic and toiletrychemicals industry.

Caroline Edser

RAWMATERIALS

Oleochemicals

Cognis invests in Thai Olefins

Cognis Thai Ltd and PTT groupaffiliate Thai Olefins have agreed a50:50 joint venture deal to make andmarket fatty alcohols. The dealcreates a new company, Thai FattyAlcohols Company Ltd, which willerect a 100,000 tons/y fatty alcoholsplant at Rayong, to come on streamin early 2008. The new company willbe the first of its type in Thailand.Palm and palm kernel oils will serveas feedstocks. The fatty alcohols willbe used for downstream activities andalso sold mainly to the home andpersonal care industries. Thecompanies already operate a fattyalcohol ethoxylates joint venturecalled Thai Ethoxylate Company Ltd.Thai Olefins is also building its own330,000 tons/y oleochemical plant inMap Ta Phut, comprising methylester, fatty alcohol and glycerin.Cognis recently transferred all itsoleochemicals operations to a jointventure formed with Malaysian

company Golden Hope [Focus onSurfactants, Jan 2006].

Chimie Pharma Hebdo, 15 May 2006, (340), 9 (inFrench) & Chemical Market Reporter, 15 May 2006,(Website: http://www.chemicalmarketreporter.com)

CPO prices expected to rise

With rising demand for vegetable oilas a bio-fuel, and edible oil in Chinaand India, the prices of crude palm oil(CPO) in Malaysia are expected tofirm up to Ringgit 1550/tonne by 2006year-end. And they could rise as highas Ringgit 1600/tonne due to theexpected shortage in existingdomestic stocks because of thecommencement of biodieselproduction by Jul 2006 or Aug 2006.As a result, demand for palm oil ispoised to increase during the latterpart of 2006.

The Star, 5 & 16 May 2006 (Website:http://www.thestar.com.my)

Ethoxylates/Other

Sabic invests in Saudi firm

Saudi Basic Industries Corp (Sabic) isto invest in Saudi KayanPetrochemical Corp, a $3.2 bn (Riyal12 bn) chemical company beingformed in Al Jubail, Saudi Arabia. The4 M tons/y production capacitypetrochemicals and specialitychemicals company is due to startoperations in 2009. Output willinclude upstream chemicals such asethylene, propylene and ethyleneglycol as well as a number of otherproducts not made in Saudi Arabia atpresent, including aminoethanols,dimethylformamide, choline chloride,dimethylethanolamine, ethoxylates,phenol and cumene. Sabic will have a35% stake in the company and apublic offering is to be launched for45% of the project. The initial publiclisting could be made within threemonths. Other current shareholderswill hold 20%.

Elsewhere, Sabic is believed to benegotiating the construction of apetrochemicals complex with 1 Mtonnes/y ethylene capacity withSinopec in China. Sabic has refusedto comment on the rumours, but thegroup’s president did confirm that thegroup was looking to invest in majorindustrial projects in China. Sabicalso confirmed that the Chinese

president had discussed with itsmanagers another of the Saudigroup’s projects (a $5.2 bn complexbased around a 1.3 M tonnes/yethylene cracker that may be locatedin Dalian in association with the ShideGroup).

Chemical and Engineering News, 8 May 2006, 84(19), 22-23 (Website: http://www.cen-online.org),Chemical Market Reporter, 8 May 2006, (Website:http://www.chemicalmarketreporter.com) & ChimiePharma Hebdo, 9 May 2006, (339), 12 (in French)

Kawasaki Kasei studies capacityexpansion for polyester polyol

Kawasaki Kasei Chemicals will makeplans for the next-phase expansion ofits polyester polyol Maximol in fiscal2H 2006 as it monitors trends indemand. Dioctyl fumarate, a type ofMaximol used as an intermediatefeedstock for surfactants, is becomingmore widely used in a foaming agentfor hard polyurethane. The company’snew line in Kawasaki factory wascompleted in Feb 2006. Demand forsuccinic acid-based Maximol for useas a foaming-agent feedstock for softpolyurethane is also increasing.Maximol is also seeing extensiveapplication in resin modifiers andadditives. It has antistatic properties,a high dispersion effect and enhancessliding and defogging. It is increasinglyadded to polystyrene, acrylonitrilebutadiene styrene (ABS) resin andpolyethylene terephthalate (PET)sheets.

Japan Chemical Week, 27 Apr/4 May 2006, 47(2365), 4

European Oxo expands isononanoicacid output

European Oxo’s isononanoic acidcapacity at Marl, Germany, will beincreased, adding 12,000 tonnes/yinitially and eventually reaching15,000 tonnes/y, depending onmarket conditions. The project is duefor completion at the end of 2006.The site has a carboxylic acidcapacity of 20,000 tonnes/y, including2-ethylhexanoic acid, n-butyric acidand isobutyric acid. Isononanoic acidor trimethyl hexanoic acid is used insynthetic flavours, surfactants,pharmaceuticals, cosmetics andcorrosion inhibitors.

Chemical Week, 10 May 2006, (Website:http://www.chemweek.com)

2 JULY 2006

F O C U S O N S U R F A C T A N T S