Chemrez eyes export market

MANILA, Philippines - Chemrez Technologies Inc., the country’s top biodiesel, resins and oleochemicals producer, is planning to source 50 percent from 15 percent of its revenues from the overseas market within the next three years.

ChemrezTech chief operating officer Jun Lao told reporters at the company’s recent stockholders’ meeting that they intend to expand their exposure in the export market as they already dominate most of the domestic market.

Lao said in 2008, their exports amounted to P700 million, and is targeted to more than triple to P2.33 billion in three years or by 2011.

The company official said they are currently developing new product application for coco methyl ester (CME) or coconut oil-based chemicals to cater to the export market.

Using new processing technology, the company is developing CME fractions that have high potential as export products.

Through these continuing efforts, he said ChemrezTech’s export volume of fractionated CMEs grew 55 percent in 2008.

Other oleochemical products of ChemrezTech include glycerine and other CME derivatives, which are used mainly as surfactants or foaming agents for soaps and detergents, and are sold principally in the export market.

Lao said they looking at a growing business in the export of additives and colorants including other green chemicals which mainly use organic substitutes for petroleum-based products.

On the local front, the company has been selling more biodiesel due to the increase in the mandated blend to two percent despite strong competition from more players and an oversupply in the market.

ChemrezTech chief finance officer Alvin Lao said aside from biodiesel, they expect other products such as resins, colorants and specialty chemicals to maintain their current market share.

Lao said the firm is also testing environment-friendly pesticides with the aim of breaking into the multi-billion pesticides industry currently being controlled by foreign companies.

“There is still no Filipino company producing pesticides locally and we see great potential in that business, specially in Mindanao where most agri companies are based,” he said.