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Industry News



Published June 9, 2009
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Innovative Solutions from P&G Chemicals



For more than 150 years, P&G Chemicals has been a reliable partner to the household and personal products industry.




A first glance, the global oleochemical market may seem vast, but P&G Chemicals has been navigating this terrain for more than 150 years, gaining the experience necessary to become a supplier of choice in the household and personal care markets, according to company officials.

It all started in 1837, when P&G began producing candles, utilizing stearic acid, and re-selling red oil (olein) as a co-product in Cincinnati, OH. In 1858, the first branded product, Star Glycerin, was produced in Cincinnati. By 1942, P&G Chemicals built its first natural alcohol plant in Cincinnati and over the years the company has expanded its product offerings, R&D capabilities and global network.

Tom Nelson
“Our customers are looking for innovation, sustainability and value,” explained Tom Nelson, global sales director, P&G Chemicals. “All of these things must be balanced to meet the customer’s needs.”

For example, when customers requested greater use of materials from natural resources, P&G Chemicals expanded its presence in tertiary amines, ingredients that have a wide range of applications in biocidal quats and amine oxides for light duty liquids, detergents and anti-bacterial formulas.

“It’s a four-year trend that gives customers additional sources, flexible choices and alternative feedstock availability to produce the material they need,” said Mr. Nelson.

Of course, P&G Chemicals offers more than tertiary amines. Its product portfolio includes fatty alcohols, methyl esters, fatty acids, alcohol ethoxylates, glycerine and sodium alkyl C10-16 glyceryl sulfonate. One of the newest is Sefose, a line of sucrose esters that is said to be a cost competitive sustainable alternative to petrochemicals. Although it was originally developed for the food industry, most recently P&G Chemicals found Sefose has applications as a solvent in the paints and coatings industry.

“We have a broad, global product range that is unique in the industry,” maintained Mr. Nelson.

At the same time, the company has an extensive R&D staff to work with customers to innovate and formulate to meet their needs.

The original Procter & Gamble Star glycerine packaging.
“We don’t just give customers a basic material and expect them to formulate a specific solution,” explained Ross Holthouse, external relations, P&G Chemicals. “That’s where our unique R&D capability helps set us apart from the competition.”


Sustainable Solutions



But while P&G Chemicals brings solutions to its customers around the world, it does so with a sustainable profile. On the corporate level, P&G has set many external sustainability goals that must be met by 2012 or earlier. And P&G Chemicals plays an important part in the company’s plan to meet these goals.

“One measure of innovation is how we run our plants and processes more sustainably,” explained Mr. Nelson.

Via a joint venture with Felda, P&G Chemicals operates the FPG oleochemicals facility in Kuantan, Malaysia. The facility opened in 2004.All photos: P&G Chemicals
And the company’s supply network certainly has the global reach with more than 20 facilities in 10 countries throughout Asia, the Americas and Europe. In addition, P&G Chemicals has established strategic partnerships throughout the world, including a fatty acid alcohol production plant in Malaysia via a joint venture with Felda, an ester-to-alcohol sourcing manufacturing agreement in Germany with Sasol, an amines production partnership in China with Feixiang Chemicals, and in the U.S., an agreement with Twin Rivers Technologies (TRT) to produce whole cut and fractionated fatty acids and oleic and stearic fatty acids fatty acids and sucrose polyesters.

A Safe Harbor



The past 18 months have been a rollercoaster ride for household and personal care formulators. Raw material prices began to surge to record levels more than a year ago, and just as quickly bottomed out as the recession began to impact even normally stable categories such as laundry detergent and shampoo. But highs and lows in the market are nothing new to P&G Chemicals which, throughout its history, has survived and thrived through more than a few recessions and boom times.

“The rise in the cost of raw materials was unprecedented, and the fall in demand and feedstock was of a similar nature,” recalled Mr. Nelson.

But as supply and prices rose and fell, P&G Chemicals had the infrastructure and partnerships in place to weather the storm. That kind of experience is comforting to P&G Chemicals’ customers. As Mr. Nelson noted, when the chips are down and customers must turn to suppliers that have long track records of consistent supply, inevitably they come to P&G Chemicals.

“Many players in this industry have increased risk management and as they look to manage the level of risk, they want to do business with reliable, economically-viable suppliers,” concluded Mr. Nelson. “That gives us a good opportunity to increase market share in the current uncertainty.”



Harry Slatkin Honored as an ASP Legend



On May 7, Harry Slatkin—president and founder of Slatkin & Co. Home Fragrance and president of Limited Brands, Home Design—received the coveted Legends Award from The American Society of Perfumers (ASP).

The award honors a person “who has distinguished him or herself over the years with their body of creative work, their contribution to the fragrance industry and also their contribution to society,” according to ASP. Past honorees include Oscar de la Renta, Gianni Versace, Karyn Khoury and Estée Lauder.

Mr. Slatkin has been called the “king of home fragrance” by The New York Times. A former Bear Stearns director, he created Slaktin & Co. in 1992. Launched at Saks Fifth Avenue, the brand was quickly picked up by other luxury retailers including Neiman Marcus and BergdorfGoodman, In 2005, Limited Brands purchased Slatkin & Co. and Mr. Slatkin was named president of Home Design.

“It’s a great honor, although I always thought a legend award comes at the end of one’s career, but don’t count me out just yet, I still have a lot of sniffing left to do,” he quipped.

He also thankedthe perfumers in the room for educating him and being a part of the great success that Slatkin & Co. candles have achieved, and paid tribute to his wife of 18 years, Laura Slatkin, who co-founded Slatkin & Co.

Mr. Slatkin and his wife serve on the boards of several non-profit organizations, including Autism Speaks, Henry Street Settlement House, The New England Center for Children and New York Center for Autism (NYCA), which the couple founded.

Shinder Retires and Sell Stake in Fusion Brands to Melnyk



Randi Shinder, who has served chief executive officer for eight years, has retired from Fusion Brands and has sold her remaining equity in the New York-based company to majority shareholder Eugene Melnyk for an undisclosed sum.

The deal makes Mr. Melnyk the sole owner of Fusion Brands Inc. and Fusion Brands International, which touts LipFusion Micro-Injected Collagen Lip Plump, FusionBeauty products and Clean perfume.

“Randi is an exceptional entrepreneur who took Fusion Brands from a concept and in less than a decade transformed it into an industry leader,” said Mr. Melnyk, who acquired a 55% interest in Fusion Brands Inc. and Fusion Brands International in August 2006.

More info: www.fusionbeauty.com

Sabinsa Signs German Distributor



Sabinsa Europe GmbH has signed an agreement with Kraemer & Martin GmbH in which Kraemer & Martin will represent a number of Sabinsa’s cosmeceutical ingredients in Germany.

Located in Sankt Augustin, Kraemer & Martin has been a successful distributor for more than 70 years.

More info: www.sabinsa.com

Cognis Partners with Pacific Coast Chemicals



Cognis Corporation Care Chemicals Division has formed a strategic partnership with Pacific Coast Chemicals Corp. Pacific Coast Chemicals will serve local home care, personal care, and I&I customers in the western region of the U.S., covering Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah and Washington.

BASF To Build Methylamines Plant in Louisiana



BASF will build a new plant for the production of methylamines at its integrated site in Geismar, LA. The company expects to start operations in 2011. The methylamines will serve as raw materials for 20 different specialty amines produced at existing facilities in Geismar.

“This is extremely important for us since our customers use these derivatives as key starting materials to manufacture water treatment, gas treatment and cleaning agents, detergents as well as pharmaceuticals and crop protectants—products that provide answers to global needs and future megatrends,” said Dr. Beate Ehle, president of BASF’s Intermediates division.

BASF currently operates three methylamine facilities worldwide.


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