South East Asian Chemical News

Focus: Asian Surfactant Manufacturers

Activities
The company manufactures and markets specialty chemicals in India. Its main office and major manufacturing facilities are located around Mumbai, while additional facilities are in the state of Gujarat. Marketing agents can also be found in 17 major cities around the country.

Product range
The company's products include surfactants, industrial biocides, antioxidants, corrosion inhibitors, flame-retardants, and specialty solvents. The products cater to the following markets: adhesives, construction, dyestuff & pigments, glass & ceramics, leather, oilfield & gas, paper & pulp, plastic & polymers, water treatment, agriculture, cosmetics & toiletries, food processing, insect repellents, metal working fluids, paints & printing inks, pharmaceuticals, textiles and wood.

Shareholder structure
The company is a privately held part of the Pax Group of companies; a group of companies which manufacture and market specialty chemicals.

Other comments
The company considers international partnerships with business and leading research organizations as crucial to their development of more and better product offerings to their customers.

2. GALAXY SURFACTANTS LTD., INDIA

Activities
Galaxy is the leading manufacturer of surfactants for the personal care, soaps and detergent industries in India. Markets for its products include countries in Asia and the Middle East.

Product range
The company manufactures fatty alcohol sulfates, fatty alcohol ethoxy sulfates, sulfosuccinates, foam and viscosity boosters, and pearlising agents. These products go into the production of toothpaste, toothpowder, emulsifier, pharmaceuticals, shampoo, liquid detergents, bubble bath, pigments, face wash, fire fighting foam, concrete and carpet cleaners.

Shareholder structure
Galaxy is a part of the U Shekkar Group.

Other comments
The Indian market for shampoos has grown rapidly over the last four years, while consumption of body care products and toothpaste have increased 22% and 12% respectively. Galaxy plans to allocate 2% of its turnover to research and development by 2000, and 4% by 2005.

3. HANNONG CHEMICALS INC., SOUTH KOREA

Activities:
Hannong Chemicals is a medium-sized enterprise which specializes in the manufacture of surfactants.

Product range:
The company produces emulsifiers for the agrochemical and veterinary industries, fat-removing agents for the leather industry, and ink removal agents for the paper and pulp industry.

Shareholder structure
Established in 1976 as Hankuk Emulsifier Co. Ltd., the company was renamed Hannong Chemicals Inc. in 1985 and went public on the Korea Semi Stock Exchange two years later.

Other comments
The Korean Government has recently allowed 100% foreign investment in local firms.

4. LG CHEM, SOUTH KOREA

Activities
LG is a diversified chemical manufacturer producing specialty chemicals, agrochemicals, industrial chemicals, pharmaceuticals, organic chemicals and carbon black.

Product Range
Specialty chemicals products and capacities: 40,000 metric tpa of surfactants, 5,000 metric tpa of synthetic disperse dyes, 17,000 metric tpa of sorbitols, 600 metric tpa of whitening agents and 3,000 metric tpa of lithium bromide brine.

Shareholder Structure
LG Chem is the parent company of the Luck-Goldstar Group. Group companies are established in 120 countries in sectors such as machinery and metal, trade and finance, construction, service and sports.

Other comments
LG Chem has established a strong approach to R&D, especially targeting the specialty chemicals, biotech and electronic materials sectors as areas in which it will concentrate its R&D resources.

5. ACTACORP HOLDINGS BERHAD, MALAYSIA

Activities Actacorp, through its subsidiary P Hand Chemicals Sdn Bhd, produces agrochemicals, industrial and household chemical products that include surfactants, among its other manufacturing businesses in high precision engineering moulds, tools and plastic parts for the construction industry.

Product range
The company's range of chemical related products include paraquate dichloride, organic fertilizers and other agrochemicals. It also holds the ASEAN rights to the "miltox" process for the treatment and disposal of toxic, hazardous and intractable waste.

Shareholder structure
Actacorp was incorporated in Malaysia in September 1988, and was established as a public company in December 1989. The company's stock has been listed on the Kuala Lumpur Stock Exchange Second Board since December 1990. The company currently has a market capitalization of RM33.57m (US$8.8m). The six biggest shareholders, each with stakes of more than 6% of the shares outstanding, control about 92% of the company.

Financials
Consolidated results (unaudited) for the year ended 30 June 1998 reveal the following: Sales for the company's products reached RM183.5m (US$48.3m), a 35% decrease on the previous year. An after tax net loss of RM17.5m (US$4.6m) was posted, as compared with a profit of RM10m (US$2.6m) for 1997.

Current trading
Actacorp (ACTA) is currently trading at RM0.89 (as of October 2, 1998) on the Kuala Lumpur Stock Exchange, reflecting a price-to-earnings multiple of just 3.1 times.