3rd ICIS Asian Surfactants Conference
As we do periodically, I am happy to bring you a summary of what I think were the key points from the 3rd ICIS Asian Surfactants Conference in Singapore, November 14th and 15th. As you know, for the full benefit of these events, you just have to be there and I encourage you to join us at future surfactant conferences in Asia, Europe and the USA.
In my opening remarks, we discussed the global surfactant supply chain and how different companies pursue strategies which depend on the specific part of the value chain that they occupy. We studied the latest update of the surfactant vertical integration grid and located a number of company groupings focused on very different sections of the business. We also discussed some recent company investments that highlighted their approach to vertical integration.
Next up, Sarah Yarger Kienzle, managing partner of Linden Tree Partners gave a global updated of the surfactant market. One fascinating piece of data (for me) centered on the per capita consumption of surfactants for different regions of the world. The mature market consumption is dropping on a per capita basis, while emerging market are growing. The North American per capita consumption still leads the world, 60% of the number two Western European market.
A highly interesting talk from VVF came next. S. Harihasumbramanian gave an in-dept study the different technologies and markets for soap bars and surfactant based cleaners and ended up delivering a robust defense of the value and environmentally friendliness of soaps. Quite a unique and thought provoking perspective.
First-time speaker and long-time attendees, Exxon Mobil Chemical came up next with an in-depth look at their line of Exxal detergent range, petrochemical surfactants. An often overlooked class of compounds; it was interesting to see the focus being put by Exxon on the surfactant value chain.
The “sleeper” paper of the whole series came up next. After reading in the Wall Street Journal, about the mapping of the oil palm genome, I was determined to talk to one of the researchers to get an idea of what this work meant for the surfactant industry. Dr. Rajindra Singh of the MPOB gave an outstanding explanation of this 10 year program and its likely impact on our industry. If you missed this one, we are considering having a review of this work also at the World surfactant conference.
A perennially popular subject at our conference is EO (ethylene oxide). EO is the basis of most nonionics and a large portion of anionic surfactants. Michelle Yang of Tecnon Orbichem took us deep into the World and Chinese markets for EO and EOD’s (EO derivatives). In one of the most in-depth market surveys we have seen at one of these conferences. More than one reference was made to an oncoming tidal wave of EO – both in China and North America.
After lunch, Galder Cristobal of Solvay Novecare, really opened up the eyes of many of the attendees by providing an in-depth look into the world of enhanced oil recovery. Some interesting data on the high-throughput screening of four thousand formulations at a time really engaged the audience.
A surprising highlight of our entire series of conferences (at least for me) came during Reckitt Benckiser’s presentation, delivered by Samrat Sehgal, head of supply chain in India. As part of the Q&A, we were treated to a live case-study relating to surfactant importation strategy as one of Reckitt’s suppliers posed a real-time problem and Samrat addressed it as he would in a meeting with a supplier. As we like to say these conferences are “bigger on the inside” and you just have to be there in order to get the full benefit.
Once again, Icilio Adami of Desmet Ballestra delivered an outstanding paper with an incredible amount of information relating to the markets and technology relating to sulfonation. One day, Icilio may write a book. Until then, you have to come to our conferences.
Starting up the second day, I was very pleased to partner with our friends from ICIS Pricing to deliver a paper covering pricing of key surfactants and feedstocks in the Asia Pacific Region overlaid with a deep dive into the current economics of sulfonation and fatty alcohol manufacture in the region. I hope the audience enjoyed it as much as I did delivering it.
Novozymes returned to our speaker’s roster and as a sponsor again with the paper, entitled “Surfactants and Enzymes, Friends or Foes”. It was an informative and provactive look at the growing role of enzymes alongside surfactants in many application areas.
Martha Tilaar Group, a first time speaker and new name for our attendees, outlined their strategy for growth in the region. In fact, the presence of a Martha Tilaar shop in the mall next to the hotel provided an interesting back-drop to the proceedings.
Rounding out the entire proceedings was an outstanding paper from Dean Lao of Chemrez Technologies. Dean covered the Philippines as an oleochemicals investment opportunity and offered a robust analysis of the advantages of coconut as a crop. He also analysed the recent effects of the Typhoon on the Philipines coconut industry.
Overall; an enjoyable and informative conference which cements its place on the calendar as a can’t miss surfactant gathering for Asia. Thanks again for reading and I look forward to seeing you at the 4th ICIS World Surfactants Conference in New York, May 15th and 16th, 2014.