the oleochemical industry in malaysia

11
The oleochemical industry in Malaysia started in the early 1980's. As the industry attracted more producers, the Malaysian Oleochemical Manufacturers Group (MOMG) was established in January 1984. The Group works closely with the Government, the academia and other relevant organisations. It also represents the industry in various government dialogues and forums. It is also affiliated to the ASEAN Oleochemical Manufacturers Group (AOMG), which represents the oleochemical industry players in ASEAN. MOMG is also a product group of the Chemical Industries Council of Malaysia (CICM) and its members are committed to conduct its business in a socially responsible manner, i.e. through Responsible Care, a global initiative representing the chemical industry's commitment to continuous improvement of all aspects of safety, health and environment protection of their operations. MOMG consists of 9 members, all located in Peninsular Malaysia, with major products being basic oleochemicals namely, fatty acids, methyl esters, glycerine and fatty alcohols. The industry comprises both local and several joint-venture companies with multinationals. Since the early eighties, the industry expanded rapidly and today the Malaysian oleochemical industry is one of the largest oleochemical industry, accounting for 20% of the global capacity. The oleochemical industry in Malaysia is nearly totally dependent on indigenous raw materials, i.e. palm oil and its derivatives and palm kernel oil as the feedstocks for the various basic oleochemical products. In this respect, the Malaysian oleochemical industry is contributing significant additional revenue over the basic value of the commodity oils. The oleochemical industry in Malaysia started in the early 1980s. It comprise the basic oleochemicals and oleochemical derivatives sub- sectors. Malaysia is one of the world's leading basic oleochemicals producers and net exporters. The basic oleochemicals produced are fatty acids, fatty alcohols, methyl esters and glycerine.

Upload: ira-munirah

Post on 27-Oct-2015

422 views

Category:

Documents


1 download

DESCRIPTION

chemical industry

TRANSCRIPT

Page 1: The Oleochemical Industry in Malaysia

The oleochemical industry in Malaysia started in the early 1980's. As the industry attracted more producers, the Malaysian Oleochemical Manufacturers Group (MOMG) was established in January 1984.

The Group works closely with the Government, the academia and other relevant organisations. It also represents the industry in various government dialogues and forums. It is also affiliated to the ASEAN Oleochemical Manufacturers Group (AOMG), which represents the oleochemical industry players in ASEAN.

MOMG is also a product group of the Chemical Industries Council of Malaysia (CICM) and its members are committed to conduct its business in a socially responsible manner, i.e. through Responsible Care, a global initiative representing the chemical industry's commitment to continuous improvement of all aspects of safety, health and environment protection of their operations.

MOMG consists of 9 members, all located in Peninsular Malaysia, with major products being basic oleochemicals namely, fatty acids, methyl esters, glycerine and fatty alcohols. The industry comprises both local and several joint-venture companies with multinationals.

Since the early eighties, the industry expanded rapidly and today the Malaysian oleochemical industry is one of the largest oleochemical industry, accounting for 20% of the global capacity.

The oleochemical industry in Malaysia is nearly totally dependent on indigenous raw materials, i.e. palm oil and its derivatives and palm kernel oil as the feedstocks for the various basic oleochemical products. In this respect, the Malaysian oleochemical industry is contributing significant additional revenue over the basic value of the commodity oils.

The oleochemical industry in Malaysia started in the early 1980s. It comprise the basic oleochemicals and oleochemical derivatives sub-sectors. Malaysia is one of the world's leading basic oleochemicals producers and net exporters. The basic oleochemicals produced are fatty acids, fatty alcohols, methyl esters and glycerine.

The oleochemical industry is almost totally dependent on indigenous raw materials, i.e. palm oil and its derivatives and palm kernel oil as feedstocks in the various basic oleochemical products.The industry comprises manufacturers of both local and several joint-venture companies with multinationals. The major end-user / applications for oleochemicals are the manufacturers of soap / detergents / surfactants, rubber and plastics, paper, lubricants, personal care products (toiletries and cosmetics), textile auxiliaries, paints and pharmaceuticals.Currently, there are 16 companies producing basic oleochemicals supplying mainly to the export market and 30 companies producing oleochemical derivatives.Malaysia's export market for these products are to the European Union (EU), USA, China, Japan, South Korea and India.

Page 2: The Oleochemical Industry in Malaysia

IOI GroupIOI Oleochemical's Division is a subsidiary of IOI Corporation Berhad ("IOI Group") which is one of the largest plantation companies listed on Bursa Malaysia (Kuala Lumpur Stock Excnhange). IOI Group is a leading integrated palm oil player and one of the largest property development investment groups in Malaysia. The core business of IOI Group is integrated oil palm plantation business with activities comprising of upstream cultivation of oil palm and downstream resource based manufacturing, which includes refinery, manufacturing of oleochemicals and specialty oils and fats.

Today, in addition to its original plantations core business activities, IOI is also a major player in the property and leisure industries. While the core businesses are located in Malaysia, the Group also has the manufacturing facilities in the Netherlands, USA, Malaysia and Egypt and sales offices in eight other countries including China.

IOI Group has established its leadership position in the various businesses it involved in and is reputed as the one of the most efficient and profitable plantation and properties companies in Malaysia. It has been consistently ranked amongst the leading companies in Malaysia as well as Asia in various management award categories in surveys conducted by Asia Finance, Asiamoney, Euromoney and Far Eastern Economic Review, just to name a few.

Vision & mission statementVision IOI“To be a leading corporation in our core businesses by providing products and services of superior values and by sustaining consistent long-term growth in volume and profitability.”Mission statement“To be a leading producer and supplier of quality oleochemical and related products by consistently satisfying our customers’ needs through continual improvement and sustaining long-term growth in line with VISION IOI.”OI OleochemicalsStarting from zero-base in 1980, our humble but bold initiative pioneered the palm-based oleochemical industry in the world. With the inception of our inaugural manufacturing facility, we were then the first and only oleochemical plant that produces exclusively palm-based oleochemicals. Today, the Oleochemical Division of IOI Group is the leading producer of vegetable oil-based fatty acids. Its production capacity per annum is approximately 710, 000MT, which is equivalent to 10% global market share. The manufacturing facilities are suitably located in Prai and Pasir Gudang.

Prai : This production facility is located in Prai, Penang, and the main products manufactured are fatty acids, glycerin, fatty esters and soap noodles. Its annual production capacity is 360, 000MT for fatty acids and 75, 000MT for soap noodles.

Pasir Gudang :

This facility is one of the world’s largest single-location vertically integrated palm oil refinery and oleochemical complexes located in Pasir Gudang, Johor. It has annual production capacities of approximately 350, 000MT and 110, 000MT for fatty acids and soap noodles respectively.

With the combined strength in research and development, logistics, marketing and technical know-how, we offer a comprehensive range of premium quality fatty acids, soap noodles and other oleochemical derivatives. Our products are exported to more than 60 countries worldwide including to some of the world’s largest multi-national corporations. To better serve its wide geographical distribution of customers, we have a network of distributors and agents in various countries, as well as storage facilities in Europe, Japan and the United States.

The Oleochemical Division of IOI Group is YOUR IDEAL GLOBAL PARTNER.

FPG Oleochemicals Sdn. Bhd. manufactures fatty alcohols, methyl esters, and refined glycerines. Its

Company Overview

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapid=5569677FPG Oleochemicals Sdn. Bhd. manufactures fatty alcohols, methyl esters, and refined glycerines. Its glycerine is marketed by P&G, as well as exported to the United States, Europe, and Asia. The company was founded in 1993 and is based in Kuantan, Malaysia. FPG Oleochemicals Sdn. Bhd. operates as a joint venture between Felda Palm Industries Sdn Bhd and The Procter & Gamble Company.Lot 3831 Kuantan Port Industrial AreaTanjung Gelang FPG Oleochemical

Page 3: The Oleochemical Industry in Malaysia

Pejabat Pos BalokKuantan,  26080

Malaysia

Founded in 1993

HISTORY HTTP://WWW.PGCHEMICALS.COM/ABOUT-PG-CHEMICALS/HISTORY/P&G Chemicals improves the environmental profile of products through the use of renewable materials and

innovative processes and methodologies, which are at the core of the Company’s history and brand heritage.The

majority of the materials used by P&G Chemicals are biorenewable.

P&G is one of the world’s largest users and producers of surfactants. P&G’s innovative work with surfactant

technology allows for increased use of plant-based content in products with no tradeoffs in stability, viscosity, or

value.

P&G is committed to the sustainable sourcing of palm oil and is strongly opposed to deforestation practices. Read the

palm oil case study for more information.

P&G first produced glycerin in 1858, almost as early as it began producing consumer goods. Since our early days in

the 1800s, P&G Chemicals has taken a comprehensive approach to the oleochemicals business that has ensured

supply dependability, reliable feedstock sourcing and global capabilities. The timeline below highlights our chemicals

expertise, demonstrating how we have continued to innovate and adapt to meet the evolving needs of our customers.

1837P&G begins producing candles, utilizing stearic acid, and re-selling red oil (olein) as a co-product in

Cincinnati, Ohio, USA

1858P&G begins producing glycerin in Cincinnati, Ohio, USA

1886The Ivorydale Facility is built, Cincinnati, Ohio, USA

1890Star® and Moon®glycerin refinery moves to the Ivorydale Facility

1930sFatty acid and glycerin refining facilities are built in Europe and the 

Page 4: The Oleochemical Industry in Malaysia

1890Star® and Moon®glycerin refinery moves to the Ivorydale Facility

1930sFatty acid and glycerin refining facilities are built in Europe and the United States

1942P&G Chemicals builds its first natural alcohol plant in Cincinnati, Ohio, USA

1950sQuincy, Massachusetts, USA plant begins production of fatty acids

 global, innovative and integrated producer of high-performance natural-based chemicalshttp://www.emeryoleo.com/history.php

Tracing our industry experience to The Emery Candle Company, a store-front that manufactured and produced tallow for oil lamps in Cincinnati in 1840. Today some 170 years later, Emery Oleochemicals is a name synonymous with the production of high quality, natural-based chemicals.

Our business activities consists of the production of chemicals predominantly made from natural oils and fats such as palm kernel oil and tallow. Principal to our business strategy is our back-end integration and access to renewable feedstocks, innovative solutions, reliably consistent high quality products and in-depth technical know-how. Emery Oleochemicals philosophy of Creating Value for our customer is further evident through our wide ranging product portfolio, catering to the diverse and unique needs of an evolving marketplace.

Serving customers that include many leading multinationals, our natural-based chemicals are much sought after for use in the home and personal care market and by industrial users of high-performance chemicals such as plastic additives, ozone acids, oilfield chemicals, fatty acids, fatty alcohols, glycerine, and triacetine.

Headquartered in Malaysia, we support our customers worldwide through our production facilities and sales and marketing offices located in the three regions that we operate in Asia Pacific, Europe and North America. We are backed by a diverse workforce of more than 1,000 people and an extensive distribution network covering over 50 countries worldwide.

OverviewHEADQUARTERSEmery Oleochemicals Group,Level 5, Building E, Peremba Square,Saujana Resort, Section U2 40150 Shah Alam,Selangor, Malaysia

GLOBAL LOCATIONS

Production and Sales and Service :Germany, Dusseldorf and LoxstedtMalaysia, Telok Panglima GarangUSA, CincinnatiLocations WorldwideSales & Service:

Page 5: The Oleochemical Industry in Malaysia

Canada, MississaugaHong Kong, Tuen MunJapan, TokyoSouth Korea, Seoul

MANAGEMENT

Kongkrapan Intarajang, Ph.DGroup Chief Executive OfficerRamesh KanaSenior Vice President, Chief Financial Officer and Chief Transformation OfficerAzuddin RahmanSenior Vice President and Chief Business OfficerManagement ProfilesShamsol AnuarVice President and ChiefHuman Resource OfficerDerek Ng See CheetVice President and Chief Performance OfficerHans Peter EckardtVice President,Chief Sustainability Officer and Regional General Manager, EuropeJay TaylorSenior Vice President, Chief Manufacturing Officer and Regional General Manager, North America

OTHERSEmployees : over 1,000 worldwide from over 20 nationalitiesRevenue : USD1.2bil (2011)Annual Global Production Capacity : 1Mil tonnes

Producers of high-performance natural-based solutions for over 170 years

Emery Oleochemicals, is today recognized for with the successful development of high quality, natural-based chemicals. From a humble store-front that manufactured and produced tallow for oil lamps in Cincinnati in 1840; today, some 170 years later, we continue to supply high-performance natural –based chemicals to our customers worldwide.

                                                                                                                                                                                                              

1840-18861900-19421970-19982000-2009Present

1840Thomas Emery Sr. opened a store in Cincinnati to manufacture and sell tallow for use in lamps.

1860

Jan 03

Page 6: The Oleochemical Industry in Malaysia

The Emery Candle Company became the leader of the wool lubricant market in Eastern US.

1872Emery started research in fatty acid,marking the beginning of its commitment to research and Innovation.

1886

Emery hired Dr. Ernst Twitchell as its first full-time scientist to enhance its reputation for quality products.

1900

Emery’s stearic acid (Lily®) and oleic acid (Elaine®) as the benchmark of the industry.

1917

Dr.Ernst Twitchell was awarded the Perkin Medal , the highest honour given in America for outstanding work in industrial chemistry that leads to the improvement in quality of life.

1942Emery extended its Competitive Advantage with entry into the fields of plasticizer and synthetic lubricant.

Page 7: The Oleochemical Industry in Malaysia

1970

Major expansion in Cincinnati plant to cater for future demands. The new facility produced the highest grade (99.8%) natural-based glycerine at that time.

1978Acquired by NDCC which was later known as Quantum Chemical Corp.

1980Emery synthetic lubricants TRUST of the heavy-duty trucking industry and were being used in up to % of new trucks built.

1989Henkel KGaA acquired Emery from Quantum Chemical Corp.

1998The Cincinnati plant celebrated the achievement of 1 million work hours without time lost to accident.

2000Emery division merged with Cognis, another subsidiary of Henkel KGaA

2006Cognis transferred its oleochemicals business to 50:50 joint venture with Golden Hope Plantations Berhad (now Sime Darby Berhad) and Malaysia became the new global HQ.

2008

PTT Chemical International bought over Cognis' stake in Cognis Oleochemicals. The Partnership between PTT Chemical International and Sime Darby Plantations strives to deliver unmatched synergy through combined expertise in oleochemicals, petrochemicals and plantations.

2009

Cognis Oleochemicals rebranded as Emery Oleochemicals and was subsequently named Oleochemicals Company of the Year in the Frost

Page 8: The Oleochemical Industry in Malaysia

& Sullivan 2009 Asia Pacific Industrial Technologies Award.

2011

Frost & Sullivan Asia Pacific recognizes Emery Oleochemicals’ industry achievements for the second time and bestowed the company with the ‘Product Innovation in Renewable Chemicals’ award.

2012

Cincinnati facility wins big at the sixth annual Manny Awards and the Ohio Chemistry Technology Council (OCTC) Eagle Award. The former win recognizes companies who have exhibited the ability to overcome challenges, and the latter is awarded to the one company whose performance is judged to be exemplary in reducing environmental impacts of its day-to-day operations.

http://www.aomg.org.my/

http://www.cicm.org.my/index.php?option=com_content&task=category&sectionid=11&id=83&Itemid=51

3. Greenwell Esters Sdn. Bhd.

Incorporated in August 2002, Greenwell Esters Sdn. Bhd. was formed solely for the purpose of general trading of other products not related to the field of oleochemicals or has no close relations to it. Currently, GE is representing Suzuki Yoshi from Japan in selling its products in Malaysia. GE also trades in other products such as cotton yarns, activated carbons as well as non woven filter bags for the oleochemical and soap noodle filtration process.

http://www.cicm.org.my/index.php?option=com_content&task=category&sectionid=11&id=83&Itemid=51

http://timurnetwork.com/aboutus.htm

http://www.aomg.org.my/index.php?option=com_sobi2&catid=6&Itemid=43

Page 9: The Oleochemical Industry in Malaysia