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

Household & Personal Products Industry, June, 2009 by Tom Branna

* 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.

"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."

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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.

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'Wee 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.

"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.

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

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."

Tom Branna

Editorial Director