Emery Oleochemicals charges ahead with growth plans
10 Mac 2011 - Kuala Lumpur, 9 March 2011 – Emery Oleochemicals Group (“Emery Oleochemicals” or “The Group”) today revealed details of its strategic growth plans to further expand and increase its global presence, particularly in the two key areas of Home and Personal Wellness and Green Polymer Additives.
Dr Kongkrapan Intarajang, Group CEO of Emery Oleochemicals said, “We are extremely excited to share with you the latest progress on the growth story of Emery Oleochemicals. These key developments will bring the Group’s strategic growth plans closer to fruition, as we edge closer towards realizing our vision of becoming the world leader in value-added naturalbased chemicals.”
Addressing members of the media at a press conference held during the 2011 Palm Oil Conference in Kuala Lumpur, Dr Kongkrapan provided the latest updates from Emery Oleochemicals. Key developments focused on the critical growth area of Home and Personal Wellness (“HPW”), where there is a strong case for the high-value oleo derivatives segment. Here, the Group plans to aggressively expand its product portfolio offered to customers to take advantage of the increasing prospects of this industry segment on the back of a gradually recovering market, coupled with an uptake in global demand. The HPW market’s growth potential is evident in recent macro trends around evolving consumer behaviors, population affluence and the demographics of developed and developing geographies.
To solidify Emery Oleochemicals’ plans to expand its specialties product portfolio and broaden its global HPW footprint, the Group recently inked two strategic joint-ventures with key industry players such as AK ChemTech and ERCA Group, based in Korea and Europe respectively. These partnerships result in combined strengths across the board in all major aspects of the industry, such as in the technology for product and solutions development, applications knowhow along with a widened global distribution network. As such, Emery Oleochemicals and these JVs are poised to deliver significant competitive advantages by serving innovative solutions to the existing and future customer base of all partners.
Apart from the HPW segment, the Group CEO also identified Green Polymer Additives as another key area of growth for Emery Oleochemicals, where it is already a global leader with its world-renowned LOXIOL and EDENOL brands. Current plans within this space include the construction of a new Green Polymer Additives production plant in Telok Panglima Garang (“TPG”) that is expected to be commercialized by Q3 2011, as well as the collaboration with Platinum Energy, the graphene nanofibers technology provider, in developing next generation plastic additives. Emery Oleochemicals will have access to Platinum Energy’s cutting-edge technology producing low-cost and high-purity graphene nanofibers (“GNF”) and graphene nanotubes (“GNT”). Platinum Energy on the hand will leverage Emery Oleochemicals’ global leadership position in plastic additives while benefiting from access to its well-established distribution network.
Moving on to the subject of funding, Dr Kongkrapan then announced the Group’s plans to tap into the capital markets through an Islamic bond issuance of RM480 million that is tentatively scheduled to take place within the next four months from today.
Commenting on the expected take-up on the issuance, Dr. Kongkrapan said, “To date, we have had a significant amount of interest from the capital markets in relation to our proposed capital raising plans, and we will make further announcements in due course once details are finalized.”
Emery Oleochemicals Group also announced that it has received full support from the Malaysian Government under the Palm Oil National Key Economic Area (“NKEA”) of the country’s Economic Transformation Program (“ETP”). The company is committed to invest RM416.2 million over the next few years, which in turn is expected to contribute RM155 million of Gross National Income (“GNI”) to the Malaysian economy. Emery Oleochemicals’ growth plans represent a direction that is aligned with the Malaysian Government’s efforts to further develop the potential of the country’s palm oil industry, and relates directly to the Palm Oil NKEA objective of moving up the value-chain towards high-end oleo derivatives.
Dr Kongkrapan Intarajang added, “We are thankful for the support from the Malaysian Government and we see this as a significant endorsement of the Group’s vision. This acknowledgement has given us a clear indication that we are growing our business in a positive direction; not only are we aiming to become a key player in the HPW segment, we will also be playing a significant role in fulfilling an important economic development agenda for Malaysia.”