Sasol’s German sale not expected to hit Europe fatty acids supply

12 January 2012 17:17  [Source: ICIS news]

LONDON (ICIS)--The sale of Sasol Germany’s oleochemical production site in Witten, Germany, to Hamburg-based Cremer Oleo is not expected to have an impact on the supply of fatty acids in Europe, market participants said on Thursday.

According to South Africa-based petrochemical firm Sasol, the Witten facility manufactures predominantly fatty acids and derivatives, largely from coconut or palm kernel oil feedstock.

Following news of the deal between Sasol and Hamburg-headquartered oleochemical business Cremer Oleo on Wednesday, sources do not anticipate the sale to influence dynamics in the fatty acids market.

“Cremer will most likely continue to produce fatty acids from this site,” one producer said.

“I’m sure we will see them [Cremer Oleo] becoming a lot more active in the production and sale of oleochemical products as a result of this acquisition,” a buyer stated.

However, both sources do not anticipate this influencing the current balanced supply-and-demand dynamics in the European fatty acids market.

Although financial details of the sale remain undisclosed, Cremer Oleo announced in a statement on Wednesday that it will take on the approximate 100-strong workforce at the Witten facility.

A spokesperson for Sasol said today that the organisation had decided to sell the Witten site and associated oleochemical business because it had become “less of a strategic fit within Sasol’s Olefins & Surfactants division over the last few years”.

“We continue to produce other products, primarily linear alcohols, based on oleochemical feedstocks at our sites in Marl and Brunsbuettel [Germany], and also at our joint venture in Lianyungang [China],” the spokesperson added.

Follow me on Twitter for regular tweets on the oleochemical markets


By: Neha Popat
+44 208 652 3214



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