Taking on the world

01 January 2000 00:00  [Source: APC]

When Jade Fine Chemicals opens its $20m diphenols intermediates plant early in 2000, it will a major step in Rhodia's global strategy for its diphenols aromas business

Jade Fine Chemicals, a $20m diphenols intermediates plantat Wuxi, China, is on target to come onstream early in 2000. The 3500 tonne/year plant is a 60:40 joint venture between Rhodia of France and Ube Industries of Japan. Jade is downstream of Rhodia's existing diphenol plant at Wuxi. The major product will be guaiacol, used in intermediates for perfumes and aromas, active food additives and active pharmaceutical ingredients.

'The joint venture aims to meet increasing quality demands of Asian clients,' says Shugo Sumiyoshi, Rhodia's worldwide business director of industrial intermediates, diphenols and aromas enterprise. 'The division plans to consolidate its position in the diphenols and aromas arena through the development of new process technology and geographical expansion through Jade Fine Chemicals.'

Sumiyoshi says the joint venture will strengthen Rhodia's presence in the Chinese market while helping it it to sharpen its focus on higher added value intermediates for the agrochemical and pharmaceutical sectors. 'China is the fastest growing market for diphenols in Asia,' he adds.

Rhodia's diphenols and aromas business is part of the company's fine organics division, one of Rhodia's most successful business groupings. The diphenols and aromas business turned over $220m in 1998, 22% of the company's fine organics business. This compares with the life-science section which contributed 28% of total revenue, pharma ingredients 17% and intermediates 33%.

The end markets for diphenols include ingredients for dyestuffs, food, flavours and fragrances and, increasingly, pharmaceuticals.

Based in Lyon, France, the diphenols and aromas business supports manufacturing plants worldwide. In addition to Wuxi, there is Baton-Rouge, US, producing diphenols, Rhovanil and Rhodiarome, Saint Fons, France, producing diphenols, Rhovanil, Rhodiarome and coumarin, as well as Melle, France, producing cyclopentanone, Santo-Andre, Brazil, producing salicylates and aromas, and New Brunswick, US, producing coumarin.

The diphenols and aromas section is globally managed, incorporating worldwide manufacturing and corporate networks and, Rhodia says, state-of-the-art R&D resources. The sales of diphenols and aromas products are mostly in Europe (47%) and North America (40%) with a further 10% in Asia (a proportion of which is expected to increase with the opening of the new Wuxi facility) and 3% in Latin America.

This is a more geographically widespread distribution than for the fine organics business as a whole, where Europe is the biggest market, accounting for 57% of total sales, followed by North America with 20% and Latin America with 14%. Currently some 9% of turnover is generated in the Asia-Pacific.

The diphenols and aromas section offers a range of aromas and fragrances that serve as the basis for more creative formulations in perfumery and flavouring.

'The business' worldwide presence enables it to serve local markets more efficiently through the development of close relationships with its customers,' says Maurice Donovan, worldwide business director - photo inhibitors, Rhodia diphenols and aromas. Rhodia also manufactures polymerisation inhibitors that allow chemical products to be shipped and stored safely. The section claims to be the world's largest producer of acetyl salicylic acid, diphenols and vanillin. Rhodia has been developing and manufacturing raw materials for the perfume industry for around a century.

The base materials for diphenols and aromas are the diphenols hydroquinone (HQ) and pyrocatechol (PC). Rhodia claims it is the only diphenols business which has a strong presence using both the HQ and PC processes.

These are used directly in the agrochemicals, photochemicals and inhibitor industries. Rhodia claims world leadership in HQ, paramethoxyphenol and tertiary butyl phenol for use as polymerisation inhibitors, required to prevent possible unwanted polymerisation occurring in monomers during storage and transport.

Chemical modification of HQ and PC allows entry to a large range of products, and intermediates that require modification, for use in dyestuffs, antioxidants, food, fragrances and flavours or pharma industries. Key products in this area are Coumarin, salicylates, acetates, phenyl ethyl alcohol, isobornylcyclohexanol (IBCH), Candalum, Rhovanil extra pure vanillin and Rhodiarome ethylvanillin.

'In terms of research and new investment we are looking at the entire diphenol chain,' says Donovan. 'We are already the lowest cost producer worldwide and further investments should reinforce our position.'

The opening of the Baton Rouge plant in the US a few years ago was a $150m investment and in the past year a further $2m has been invested in St Fons to boost capacity.

Another key product of the enterprise is Coumarin, a key ingredient in many cosmetics which has the soft, characteristic odour of newly mown hay, with sustained strength and high tenacity, according to the company.

In the salicylates sector, benzyl salicylate has a sweet, flowery note, while methyl salicylate has a potent note of wintergreen with weak tenacity. It is used in perfumery for its strength in exotic floral compositions and has applications as an aroma and masking agent for unpleasant tastes and odours. IBCH with its sandalwood note is used as a substitute for sandalwood oils in perfume compositions for cosmetics, toiletries, detergents and incense sticks. Candallum offers a woody note, with a sandalwood and precious wood tendency and high strength.

Vanillin, not surprisingly, has the characteristic sweet scent of vanilla, finding a wide variety of uses as perfume and as a flavour in foods such as ice creams, chocolate and soft drinks. Ethylvanillin has similar characteristics to vanillin, but is three or four times more powerful, offering economic advantages for similar uses.

ICIS Copyright © Reed Business Information 2009

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.