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K 2013: Bio-based additives drive growth at Emery Oleochemicals

Düsseldorf — For a company with plastic additive sales currently in the order of 15% if its $1 billion in annual revenue, Malaysian-based Emery Oleochemicals (8b/A62) has lofty options to transform itself into a major global supplier of lubricants, specialty plasticizers and antistatic agents based on renewable resources. A 50:50 joint venture of Thai petrochemicals giant PTT Global Chemical and the world's largest palm oil plantation concern, Sime Darby, Emery Oleochemicals plans to boost oleochemical derivative sales from the current 30% to 50% by as early as 2015.

October 16, 2013

2 Min Read
K 2013: Bio-based additives drive growth at Emery Oleochemicals

Düsseldorf — For a company with plastic additive sales currently in the order of 15% if its $1 billion in annual revenue, Malaysian-based Emery Oleochemicals (8b/A62) has lofty options to transform itself into a major global supplier of lubricants, specialty plasticizers and antistatic agents based on renewable resources. A 50:50 joint venture of Thai petrochemicals giant PTT Global Chemical and the world's largest palm oil plantation concern, Sime Darby, Emery Oleochemicals plans to boost oleochemical derivative sales from the current 30% to 50% by as early as 2015. The company originated from the former Cognis oleochemicals business.

Emery Oleochemicals' Intarajang (left) with Juergen Waldmann, Regional Business Director, Green Polymer Additives, Europe.

To achieve this aim, the company is boosting capacity at its site in Lockstedt, Germany by 10,000 tonnes/yr to reach 40,000 tonnes/yr. It also started up a second plastic additives plant, in Malaysia, at the beginning of this year. Both plants also manufacture derivatives for home, personal and wellness products, and agricultural chemicals

The Malaysian plant has capacity of 10,000-20,000 tonnes/yr depending on the product mix. Emery Oleochemicals' main products include ester-based and polymeric plasticizers, naturals-based lubricants including palm oil-based waxes, and anionic antistat.

Speaking to PlasticsToday at the K Show in Düsseldorf, Group CEO Kongkrapan Intarajang said that with the current trend of elevated price for petrochemical-based feedstocks, additives based on sustainable raw materials were now cost competitive, while performance was on a par with conventional additives. "These additives are also drop-in replacements," he added.

Ready access to palm oil-based raw materials is also proving to be a competitive advantage for Emery Oleochemicals. "We do pay market prices but we definitely benefit on the logistics front given our Malaysian plant is adjacent to a Sime Darby palm oil plant," he notes.

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