Philippine oleochemical industry urged to expand along the value chain

Coconut-based oleochemicals are gaining popularity because they can be processed into a variety of products including biodiesel, additives, lubricants, greases and solvents.
In a recent conference of the Department of Science and Technology, Dean Lao, Jr., president of the Philippine Oleochemical Manufacturing Association, encouraged producers to venture into the other components of the oleochemicals value chain, as there are profits available all along the chain.
The Philippines, as of now, is confined to only one component – ingredient manufacturing, or simply oleochemicals production, Lao said.
Meanwhile, the entire value chain is quite long, comprising feedstock production, ingredient manufacturing, compounding and formulation, branding and packaging, logistics and distribution, and retail or direct marketing, he said.
Lao also assured the public that there are skilled Filipino engineers and chemists who are experts in this field. Some are getting hired in Malaysian and Indonesian cocochemical companies and plants.
Carlos B. Carpio, deputy administrator of the Philippine Coconut Authority, said the Philippines was one of the first oleochemical producing countries in Asia. According to Carpio, Malaysia and Indonesia are now the biggest producers of oleochemicals.
Evalina L. Patiño, executive vice-president of United Coconut Chemicals, Inc., stressed that Malaysia and Indonesia are now supplying 42% of the market for oleochemicals.
(June 11, 2013)