Oh, Those Oleos: Sliding Up the Value Chain
from The Breakfast Grille Hosted by BFM Media
In this Dec 2012 interview, Emery Oleochemicals CEO Dr. Kongkrapan Intarajang, Ph.D, discusses: - Oleos generally; - Benefits - located - No.2 global producer of palm oil; - Indonesian government’s cut - export tax rates of crude and refined palm oils - competition concerns; - Indonesia cutting the gap with Malaysia - oleochemicals production - address imbalance with Malaysia; - Expected volatility for Asian oleochemical prices - fluctuations in feedstock - debt crisis in Europe; - Concerns: decline in demand from Europe - biggest market; - Soybean and CPO prices (tallow, soybean oil, palm and palm kernel oil, coconut oil, and rapeseed oil) - feedstock price volatility - issues; - Cost passthroughs - adding value - issues; - Benefits - backward integration - Sime Darby Big Brother; - Production capacity - utilisation - outlook; - Moving up the value chain; - Global overcapacity - Emery still investing - North America - data points; - Boom-bust cycles - issues; - Recent burst of new capacity in China - impact - South-East Asian players; - Whether scope for further capacity development - where - located; - Where is most of the demand coming from; - Shale gas and oil revolution in the US - impact - prices - margins; - Sustainability concerns - RSPO and certification - issues; - JV with PTT - Sime - long term return on investment; - Funding needs - Sukuk cancellation; - Whether exit - IPO.
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