OLEO CHEMICALS

MARKET DEVELOPMENT PLANNING AND STRATEGIES

Adel Abd El-Latif

Contents • The major source of Oleo chemicals Industries • Increasing global demand for Palm Oil in the Oleo

chemicals and converted Products • Plans and Strategies of Production to keep pace with

Increasing demand for palm oil tion to keep pace with inceason to keep pace with inceaonverted Products

• The future of The oleo chemicals industry in EGYPT dependence on Palm Oil as a major source of Raw Material

• Oleo chemicals Market by: Type (Fatty Acid, Fatty Alcohol, Glycerin, and Others) Application (Pharmaceutical & personal care, Food &

beverages, Soaps & detergents, Polymers, and Others) Region (North America, Europe, Asia-Pacific, and

Rest of the World)

• By Type: o Fatty acid o Fatty alcohol o Glycerin o Others • By Applications: o Pharmaceutical & personal care o Food & Beverages o Soaps & Detergents o Polymers o Others • By Region: o Asia-Pacific o North America o Europe o RoW

Increasing global demand for Palm Oil in the Oleo chemicals and converted

Products • Increasing the oleo Chemicals market growth, according

to the evolution of scientific and applied research for these products, which evolve day after day by the growth rate of the economy of the country and people In the late 1970s.

Increasing global demand for Palm Oil in the Oleo chemicals and converted

Products • The Group identified the vast

potential of palm oil as an excellent alternative feedstock to the oleo chemical industry which was then mainly based on tallow and coconut oil.

• There are some factors affecting the increase in applications Oleo chemicals aspects of life and the follow-up to increase and accounted for developing markets and policies producers to maintain the flow of raw material to the Oleo chemicals Industry and the growth of markets.

• Increasing demand for biodegradable and sustainable products, coupled with recent changes in regulations, are increasing the importance of oleo chemicals in various segments of the chemicals industry, notably polymers, lubricants and bio surfactants, all of which offer significant opportunities for companies in the long run. Companies that explore organic and/or inorganic growth options in this market space could be poised for major growth.

• Oleo chemicals have been used for applications in surfactants, personal care, soaps, detergents and food additives. However, various new applications are emerging where they can replace petroleum-based products, creating exciting growth opportunities.

Oleo chemicals Market Analysis By Product (Fatty Acid, Fatty Alcohol, Glycerol) And Segment

Forecasts To 2020

• The global oleo chemicals market was estimated at 14 million tons in the 2013 financial year and it is expected to grow at 6%/year over the next five years to reach 18 million tons. The Asia-Pacific accounts for 68% of the market and this is expected to grow at 8%/year over the next five years. Surfactants, home care and personal care are the largest end use segments.

• The global oleo chemicals market is expected to reach USD 30.03 billion by 2020, according to a new study by Grand View Research, Inc.

• Increasing demand for bio-based products from various end-use industries such as soaps & detergents, pharmaceuticals and personal care is expected to remain a key driving factor for the global oleo chemicals market.

• Industry has shifted its focus towards developing bio-based products on account of volatility in petro chemicals prices due to supply demand imbalances which is also expected to have a positive influence on oleo chemicals demand over the forecast period.

• Initiatives from different environmental associations regarding toxic emissions from petrochemicals are expected to further help oleo chemicals penetrate the market on account of its biodegradable and renewable raw materials.

• The global market for natural fatty acids reached nearly $17.1 billion and $18.3 billion in 2013 and 2014, respectively. This market is expected to grow at a compound annual growth rate (CAGR) of 7.1% to $25.7 billion for the period 2014-2019

• Growing demand for sustainable & biodegradable products

• Growing petrochemical prices • Growth of major end-use industries • Change in environmental regulations and blending

norms • Consistent supply of key feedstock • Low profit margins for refiners

• An overview of the global markets for oleochemicals, including natural fatty acids, biodiesel and methyl esters, glycerin, as well as derivatives such as soaps , branched fatty acids, and fatty alcohols.

• Analyses of global market trends, with data from 2013 and 2014, and projections of CAGRs through 2019.

• Examination of applications by end market, such as household, personal care, oil field, and lubricants.

• Discussion of current and potential legislation that will affect the industry.

• Coverage of consumer trends that drive many of the end markets, such as cleaning, beauty, and food.

• Increased biodiesel requirement could push prices of oils higher thereby making them less attractive vis-à-vis petroleum feed stocks. However, this risk is largely mitigated by a significant shift worldwide towards shale gas as the new energy source.

• The continuous availability of feed stocks is a major issue for companies operating in oleo chemicals.

• Historically, about 12-14% of the world's vegetable oil production has been used for oleo chemical production. The emerging applications discussed above would require an additional 8 million tones/year by 2020, although the projected increase in vegetable oil production from 150 million tones in 2012 to 185 million by 2020 should meet this need.

Plans and Strategies of Production to keep pace with Increasing demand for

palm oil • Growing demand for sustainable & biodegradable

products • Growing petrochemical prices • Growth of major end-use industries • Change in environmental regulations and blending • Consistent supply of key feedstock • Low profit margins for refiners

• In addition, companies are rapidly realizing that other world regions also offer climatic conditions suitable for palm oil plantations.

• Sierra Leone and Liberia form a major part of what is called the new frontier in West Africa.

• For example, Golden Veroleum plans to invest up to $1.6 billion in Sierra Leone and is eyeing over half a million hectares of land for palm plantations.

BASIC OLEOCHEMICALS COMPANY

Fatty Acids 1.Acidchem International Sdn Bhd 2.Emery Oleochemicals Sdn Bhd. 3.Natural Oleochemicals Sdn Bhd 4.Global Biodiesel Sdn Bhd 5.Inno-Wangsa Oils & Fats Sdn Bhd 6.Kwantas Oil Sdn Bhd 7.Nexsol (Malaysia) Sdn Bhd 8.Pan Century Edible Oil Sdn Bhd 9.Timuran Enterprise Sdn Bhd

Glycerine 1.Pacific Oleochemicals Sdn Bhd 2.Acidchem International Sdn Bhd 3.Emery Oleochemicals Sdn Bhd. 4.IFFCO Malaysia Sdn Bhd 5.Natural Oleochemicals Sdn Bhd 6.Palm Oleo Sdn Bhd 7.Pan Century Oleochemical Sdn Bhd 8.Southern Acids Sdn Bhd 9.Kwantas Oil Sdn Bhd 10.Nexsol (Malaysia) Sdn Bhd 11.Pan Century Edible Oil Sdn Bhd 12.Timuran Enterprise Sdn Bhd 13.Carotino Bhd 14.KL-Kepong Oleomas Sdn Bhd 15.Lereno Sdn Bhd

Fatty Alcohols 1.Emery Oleochemicals (M) Sdn Bhd 2.Fatty Chemical (M) Sdn Bhd 3.FPG Oleochemical Sdn Bhd 4.KL-Kepong Oleomas Sdn Bhd

Fatty Esters 1.Carotino Sdn Bhd 2.Emery Oleochemicals (M) Sdn Bhd 3.FPG Oleochemical Sdn Bhd 4.KL-Kepong Oleomas Sdn Bhd

LIST O

F OLE

OC

HE

MIC

AL C

OM

PAN

IES

(EXP

OR

TER

S(

OLEOCHEMICAL DERIVATIVES Fatty Amides 1.Kao Oleochemical (M) Sdn Bhd

2.Palm Amide Sdn Bhd 3.Southern Edible Oil industries Sdn Bhd

Metallic Stearate/ PVC Stabilizers

1.Stabilchem Sdn Bhd 2.Sun Ace Kakoh (M) Sdn Bhd 3.Baerlocher (M) Sdn Bhd

Soap Noodles 1.Southern Edible Oil Industries Sdn Bhd 2.Derichem (M) Sdn Bhd 3.Pacific Soap Manufacturing Sdn Bhd 4.Unitata Bhd 5. KL-Kepong Oleomas Sdn Bhd 6.Natural Soaps Sdn Bhd 7.Pan Century Edible Oils Sdn Bhd

Vegetable-oil Based Polyol

1.Maskimi Polyol Sdn Bhd 2.Intermed Sdn Bhd

Palm-mixed Carotenoids/ Toco-trienols

1.Carotech Sdn Bhd 2.Bio Organics Sdn Bhd