Emery expands bioadditive production in Germany, making palm oil push

Malaysian biochemical company Emery Oleochemicals is investing €20 million (US$25million) in its Loxstedt, Germany site, expanding manufacturing and adding Technical Development Centre (TDC) for its biobased additives, Loxiol and Edenol.

"Through our Loxstedt expansion projects, Emery Oleochemicals looks to extend its existing technical know-how in developing high-performance plastic additives and growing its portfolio in additives, including those for the coatings and lubricant industries," an Emery spokesperson told PlasticsToday. The company's current annual global production capacity is 1 million tonnes.

Emergy Oleochemicals broked ground on an expansion of its Germany site on August 17.

Loxiol and Edenol are predominantly made from natural-based feedstocks such as tallow and vegetable-based oils. Loxiol can be used as a release agent, or in anti-blocking and anti-fogging functions, among others. The spokesperson noted that within the industry it is widely used as both an internal and external lubricant. Edenol is primarily a plasticizer used to soften rubber and PVC.

The expansion is scheduled for completion by the end of 2013 and is partially in response to annual growth in plastic additives consumption of 4%-5% worldwide, according to Kongkrapan Intarajang, group CEO, Emery Oleochemicals.

The company noted in a release that the Loxstedt manufacturing facility expansion represents a technological enhancement of its current infrastructure and comes on the heels of the recent commissioning of Loxstedt's new sister manufacturing site in Telok Panglima Garang, Selangor in Malaysia.

Emery said these projects reflect the Malaysian Government's efforts to further develop the potential of the country's palm oil industry in moving up the value-chain towards high-end oleo derivatives.

In 2011, Emery Oleochemicals committed to investing approximately RM416 million (US$46 million) for the implementation of its various Malaysian-based projects developed under the auspice of the Palm Oil National Key Economic Area (NKEA) of the country's Economic Transformation Program.

Emery Oleochemicals is a joint venture between Sime Darby Plantation and PTT Chemical International Pte Ltd. with 2011 revenue of $1.2 billion. It has manufacturing in Asia, North America (Cincinnati, OH), and Europe, employing more than 1000.