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FOCUS
ON SURFACTANTS
Cosmetics Industry of the Philippines
(CCIP) claims that the domestic
sector is starting to compete with
multinationals, which are currently the
dominant players, led by Unilever with
its core brands Cream Silk, Sunsilk,
Pond’s and Close-Up. Other inter-
national brands are Johnson’s Baby,
Avon, Palmolive Naturals, Nivea Body
and L’Oreal. Splash Corp leads local
cosmetics production with its brands
Skin White, Maxi-Peel, Kolours and
Vitress. Other major local producers
include Suyen Corp, Unilab, Intelligent
Skin Care, Trinidad Cosmetics and
Beauty Elements. The CCIP president
also pointed out a growing diversity in
the product range in response to the
increasing demand for natural
cosmetics. Products derived from
natural ingredients have been
launched by many companies.
Effectively capitalizing on this trend is
the domestic producer Gandang
Kalikasan’s Human Nature brand. All
products by the company are claimed
to be biodegradable and at least 95%
natural, while many are 100% natural.
The products use a variety of
ingredients, including coconut oil,
citronella, lemongrass, passion fruit
and sunflower. Gandang Kalikasan
also introduced CREAMFoam
formulation for its natural shampoos,
which contain local coco nectar and
pure avocado oil designed to keep
hair soft and moisturized. There are
now 26 Human Nature stores across
the Philippines. Use of traditional
Filipino ingredients such as bayabas
and moringa by other Philippine
cosmetics companies is growing.
Euromonitor suggests that skin care
will be the fastest-growing product
sector over the next few years in the
Philippines. Sales are forecast to
reach Philippine Peso 37.2 bn by
2016, which represents a 3.8%
CAGR between 2011 and 2016. One
of the leading local product lines is
Celeteque DermoScience from Unilab.
The increasingly popular keratin
treatments in salons triggered the
launch of Unilever’s Sunsilk Straight
to Perfection and TRESemme salon
formulas. Further innovations are set
to be introduced by the domestic
industry, probably because of the
impact of the ASEAN Economic
Community (AEC), which will provide
opportunities outside of the
Philippines for the local cosmetic
Laundry products
Other
P&G revamps Tide Pods plastics
packaging to improve safety
Flotek Industries announces research
initiative and Eclipse IOR acquisition
plans
Since Jan 2013, nearly 5000 US
cases of children, five years and
younger, have been recorded to have
been exposed to laundry packets
from various brands including Procter
& Gamble’s Tide Pods, a detergent,
stain remover and brightener
combined in one small, brightly
coloured package. According to the
American Association of Poison
Control Centers (AAPCC), children
mistook these single-use laundry
packets for candy. As a result, Procter
& Gamble has changed the design of
the plastic tub and bag containers for
these products from clear to opaque
orange for safety. There are also new
icons printed on the front of the
packaging and double latches on the
tubs to reduce the likelihood of
unintended product handling and
exposure.
Flotek Industries Inc has announced
sponsorship of applied research at
Texas A&M University to investigate
the impact of nanotechnology on oil
and natural gas production in
emerging, unconventional resource
plays. Specifically, the research will
focus on the oil recovery potential of
complex nanofluids and select
surfactants under the subsurface
pressure and temperature conditions
of liquids-rich shales.
Elsewhere, Flotek has entered into
a non-binding Letter of Intent to
acquire Keller, TX-based Eclipse IOR
Services LLC, a move that will
significantly expand its enhanced oil
recovery (EOR) initiatives. Eclipse
IOR is a leading provider of enhanced
recovery technologies for oil and
natural gas producers, offering
technologies and services that
include water control polymers for
producing wells, permanent clay
stabilization and alkaline-surfactant
processes for waterfloods, among
others. It also provides a wide-range
of consulting services to its clients in
North America and internationally.
Original Source: Plastics Today News, 1 Aug 2013,
(Website: http://www.plasticstoday.com) © UBM
Canon 2013
Nefis Cosmetics to spend RUB 3.5 bn
on detergent plant reconstruction
Original Source: Flotek Industries Inc, 2013. Found on
PR Newswire, 29 Jul 2013, (Website:
http://www.prnewswire.com)
OJSC Nefis Cosmetics’ biggest
project in the household chemicals
niche is a RUB 3.5 bn (c

80 M) plan
to reconstruct its synthetic detergents
plant, increasing its output from
140,000 tonnes/y [
Focus on
Surfactants
, May 2005] to 380,000
tonnes/y. In addition, reconstruction of
the liquid detergents plant will cost
RUB 350 M. A new 22,000 tonnes/y
shampoo unit will cost a further RUB
500 M. Installation work, for an
investment of RUB 100 M, is almost
finished at the soap plant, the
Tatarstan-based company reports.
Some RUB 567 M has been
invested over the last two years; a
further RUB 4.6 bn will follow in the
next two years. The Nefis group as a
whole had revenues in 2012 of RUB
20 bn. It expects revenues to
increase to more than RUB 60 bn
by 2017.
MARKET
REVIEWS
Growth prospects: cosmetics and
toiletries market in the Philippines
Strong demand for cosmetics among
male and female consumers in the
Philippines is driven by rising dispos-
able incomes. In 2012, Euromonitor
International forecast a 1.9% growth
in the country’s beauty and personal
care market to Philippine Peso 130.1
bn ($3.2 bn). By 2016, the market is
forecast to reach Philippine Peso
139.8 bn, representing a projected
1.7% CAGR between 2011 and 2016.
The president of the Chamber of
Original Source: RCCnews, 24 Jul 2013, (Website:
http://www.rccnews.ru/eng) © RCCnews.ru 2013
4
OCTOBER 2013
FOCUS
ON SURFACTANTS
industry while increasing competition
for foreign entrants.
2012. However, excluding deferred
compensation plan income, 2Q net
income declined 10% year on year.
Net sales of $474.4 M were up 1% for
the quarter. Sales volumes across all
three businesses rose by 4% and
selling prices decreased by 3%. The
company’s surfactant sales volume
rose by 5%, with all regions
contributing. However, gross profit for
the business declined by 7% to $48.3
M in 2Q 2013. Polymer sales volume
grew 1% and gross profit 15% to
$19.9 M. For the speciality products
segment, 2Q gross profit rose 19% to
$6.6 M.
industrial chemicals, posted gains.
Compared to 2Q 2012, sales
increased by 2.3% to £279.6 M in 2Q
2013.
In other news, Croda has bought a
65% stake in China’s Sichuan Sipo
Chemical Co for £38.2 M, including a
£8 M debt. The company, with 300
employees, produces speciality
derivatives from natural raw
materials, including primary amides,
novel fatty acids and speciality esters.
Original Source: SPC, Soap, Perfumery and
Cosmetics, Jun 2013, 86 (6), 17 (Website:
© HPCi Media
Ltd 2013
Making the most of marketing: trends
affecting the cosmetics industry
During the in-cosmetics 2013
presentations on marketing trends,
various trends and issues affecting
the cosmetics business were
discussed. Kline & Company valued
the global market for personal care at
$300 bn and reported that it is
growing by 4.5%/y, while the market
for ingredients for personal care is
valued at between $14 bn and $18
bn. While a big portion of sales is
represented by Europe and the USA,
the growth in these regions is actually
behind Japan, China, southeast Asia
and India. In Europe, growth rates for
unpopular antimicrobials, ‘harsh’
surfactants, silicones and parabens
are being dominated by inorganic UV
absorbers, natural emollients and
alternatives to parabens. While the
global beauty industry is valued at
$16 bn, premium brands are
powering ahead to reach $4 bn. In
future, the beauty industry is
expected to see more foam
formulations. A presentation by Mintel
tackled the importance of fragrance in
cosmetics. The manufacturers’ need
for linking scent to functionality is
highlighted. Issues in health and
sustainability were analysed,
including ecolabel usage in cosmetics
and household detergents. Concerns
in ingredients include biocidals and
benzophenone-2. Debates on
sustainable water usage in the
cosmetics industry and the new
Standard ISO 14046 were held.
Original Source: ICIS Chemical Business, 29 Jul-11
Aug 2013, 284 (3), (Website: http://www.icis.com)
© Reed Business Information Limited 2013. Original
Source: Plastics and Rubber Weekly, 2 Aug 2013,
(Website: http://www.prw.com) © Crain
Communications Inc 2013
Original Source: Stepan Company, 2013. Found on PR
Newswire, 24 Jul 2013, (Website:
http://www.prnewswire.com). Original Source: ICIS
Chemical Business, 29 Jul-11 Aug 2013, 284 (3),
(Website: http://www.icis.com) © Reed Business
Information Limited 2013
Henkel: sales and earnings
performance in 2Q 2013
Henkel made up for the economic
crisis in southern Europe with growth
in the world’s emerging regions.
Thanks to its flourishing detergents
and cosmetics businesses, sales and
profits were up in 2Q 2013. The
adhesives division also saw a return
to growth. 2Q sales were up 1.9% at

Huntsman releases 2Q 2013 results
Huntsman Corp reported 2Q 2013
results with revenues of $2830 M,
down 3% from $2914 M in 2Q 2012.
Adjusted EBITDA of $304 M was
down $72 M from $376 M in 2Q 2012,
primarily as a result of the decrease
in its Pigments division, but up $84 M
(or 38%) compared to $220 M in 1Q
2013. Net income attributable to
Huntsman was $47 M in 2Q 2013,
compared to net income of $124 M in
2Q 2012 and a net loss of $24 M in
1Q 2013. The company expects to
see an improving second half of the
year. The Performance Products
division - home to the company’s
surfactants business - posted 2Q
2013 sales revenues of $777 M,
essentially unchanged from the
previous year. Adjusted EBITDA
increased 28% year on year to $111
M, primarily due to higher margins in
maleic anhydride and US ethylene
derivatives.
4.286 bn. Organic sales, which
exclude the impact of foreign
exchange and acquisitions/
divestments, rose by 4.0%. The share
of sales attributable to the emerging
markets increased from 43% in 2Q
2012 to 45%. Reported operating
profit (EBIT) was

607 M compared

to
583 M in 2Q 2012. Reported
return on sales amounted to 14.2%
compared to 13.9% in the prior-year
quarter. Net profit was up from

394

M to
418 M. The full-year forecast
has been confirmed, with organic
sales growth of 3-5% expected.
The Laundry & Home Care
business recorded strong sales
growth in 2Q 2013 and a very strong
increase in adjusted return on sales.
The business sector also succeeded
in further expanding its share of its
relevant markets. Organically, sales
rose by 5.8% year on year. Nominal
sales increased by 3.4% to
Original Source: SPC, Soap, Perfumery and
Cosmetics, Jun 2013, 86 (6), 57-58,61 (Website:
http://www.cosmeticsbusiness.com/) © HPCi Media
Ltd 2013
Original Source: Huntsman Corporation, 2013. Found
on PR Newswire, 31 Jul 2013, (Website:
http://www.prnewswire.com)

1186 M.
Croda’s 2Q operating profit rises by
4.4%
COMPANY
RESULTS
This strong organic sales
performance was driven primarily by
the emerging markets, in which the
division achieved a double-digit
percentage increase overall. Despite
the unrest, this applies also for the
Africa/Middle East region. Eastern
Europe also recorded very strong
sales growth, driven mainly by
The 2Q 2013 operating profit from
continuing operations of UK-based
speciality chemicals company Croda
International grew by 4.4% year on
year to £71.1 M ($109.4 M). Its three
reporting segments, consumer care,
performance technologies and
Stepan reports 2Q 2013 results
US-based Stepan reported higher 2Q
2013 net income of $22.7 M, up 6%
year on year from $21.4 M in 2Q
OCTOBER 2013
5
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