“We saw some slowing down in the fourth quarter of last year and first quarter this year. But we are already seeing signs of a pick-up and some stability, especially in the healthcare segment. The growth in this segment is resilient.
“We expect to see a better performance in the second quarter,” he said after unveiling Emery’s new branding and company name yesterday.
Oleochemical consumer products range from soaps and detergents to cosmetic products.
Last year saw a turbulent ride for the oleochemical players as high prices of raw materials like crude oil and crude palm oil (CPO) and unbalanced market fundamentals led to narrower margins.
The industry also saw some consolidation in the market. Emery Oleochemicals, formerly known as Cognis Oleochemicals, saw changes in its shareholding structure when German specialty chemical company Cognis exited the company via the disposal of its 50% stake to PTT Chemical International Private Ltd, a wholly owned subsidiary of PTT Chemical Public Company.
The acquisition of the stake was completed in November 2008. Sime Darby Plantation Sdn Bhd, wholly owned by Sime Darby Bhd, holds the remaining 50% stake in Emery.
Emery, the world’s largest producer of natural-based oelochemicals, recorded about 7% increase in sales last year to €776 million (RM3.8 billion), Kongkrapan said.
“We are already a big producer in the industry. This year, we are looking at maintaining stability and sustaining growth. We also want to diversify our products to maintain a stable income to sustain through the tougher times,” he said.
He said its new plant in China, with a production capacity of 36,000 tonnes a year, was scheduled to be operational early next year. “This is mainly for the detergent market for China. Our other plants are running on a better average than the industry’s,” he said.
He added Emery was open to options in growing the business through merger and acquisition. “We are looking for good, economical and market-sound business,” he said.
This article appeared in The Edge Financial Daily, May 21, 2009.