Executive summary: 1.
Demand of Fatty Alcohol 2. Exporter and market 3. Where is the opportunity 4. Process Description ( Briefly touch) 5.
Economical Feasibility Study 6. Environment, People, Surrounding, ReputationOleochemicals is the trend! (replacement of petrochemicals) Recently, due to the relentlessly climbing price of crude oil prices, the major oleochemical producers from natural resources had been enjoying the recent onward surge in global natural fatty alcohol demand. Foresee the crude oil prices will keep increasing, with the largely availability of natural resources would let us seized this opportunity and bring them into action by adding value to new natural fatty aclcohol capacity. Due to the abundance availaibilty of feedstock, Malaysia is recognized as a global hub for manufacture biodegradable detergent. We can foresee a bright outlook for palm-oil based detergent following the global trend towards more sustainable lifestyle.
Industry Drivers High demand from consumer market Wide availability of raw material New uses and demand Growing market for green chemical Industry Challenges Global downturn of Economy Cash rich plantation companies eyeing the market and increases the threat to the existing participants. Growth of biodiesel industry Indonesian export taxIndonesian government raised export taxes drastically to boost refining capacity and downstream activities. As a result, crude palm oil and crude palm kernel oil are cheaper for downstream producers there and refined products shipped out from Indonesian shores are tax-free.Although Indonesia restructure the tax incentives system would cause a minor lose out but reviewing its future it still lacking of processing technology such as downstream refineries and skilful labor could add benefits for Malaysia ‘s producers. The hiking tax would actually drive the crude palm oil and palm kernel oil for downstream production. Malaysia, KLK Oleochemicals Group’s unit, KL-Kepong Oleomas, operates a 50,000-tonne per year MES plant.
“We’re carrying out some upgrading works and doubling the capacity to 100,000 tonnes,” said KLK Oleochemicals managing director A.K. Yeow. As the world’s top oleochemicals producer, Malaysia exports around 2.
2 million tonnes every year. Malaysia’s lead is partly driven by its community of engineers and chemists having the ability to process palm oil and palm kernel oil into more than 100 types of downstream products. With such technical prowess and advantage, Malaysians have become pioneers and key investors in China’s oleochemical industry.(Sustainabilty-biolubricants -biodegradable) Urge of 1.3 billion consumers pursuing a better living standard had driven the demand of oleochemicals industry in China to a soaring level. The emerging market for green chemicals is significant as people are gaining interest on bio-degradable yet eco-friendly detergent and soap produced from oleochemicals instead of petrochemical variant.
Oleochemicals are gaining popularity for the sustainability alternative to petrochemicals. Oleochemicals derivative will gradually replace petroleum derivatives in applications such as paints, coatings and adhesives. This is a golden opportunity for oleochemical producer to excel the profit and improving the environment profile at the same time.Export Market –China Investing in new plant and upgrading would be feasible to add new fatty alcohol capacities to meet rising demand from fast-developed countries such as China and India which population continue increasing this adding demand for house-hold cleaning products, lubricant and personal care products. Take a deep look into the South East Asia oleochemicals market, producers are eye-ing on China’s growing market as China’s Gross Domestic Product (GDP) estimated growing 7% annually starting from 2007, this provide a robust opportunity for producers to cater the demand enhancement.
Malaysia is one the largest contribution for palm oil importers for China. According to Malaysian Palm Oil Council (MPOC) recent Palm Oil Trade Fair and Seminar (POTS) which analyze the Outlook of China’s Oils and Fats Industry in 2013 shows a projects China’s palm oil import would reach about 6million tons next year, a healthy growing of oleochemicals industry would be expect next year despite of the uncertainty of the global economy. The construction period will starting from Q1 of 2013 and estimated to be commissioning at Q3 2015, it will take 2.5 years for groundbreaking.
As mentioned before, Malaysia will require addition production of 350 tonnes/year fatty alcohol to meet the emerging global market; this will be golden opportunity to secure the China market during the year of 2015 where China’s import of oleochemicals soaring high to 6 million tons/year
