OPERATIONS
OXITENO
Oxiteno is the only producer of ethylene oxide and
its principal derivatives in Mercosur – and the
largest in Latin America, as well as being a large
producer of specialty chemicals, developed to meet
the specific needs of its clients. Its products are
used in various industrial sectors, examples being
PET packaging, polyester, textiles, paints, cosmetics
and detergents. Oxiteno’s strategic focus is
to provide a broad coverage of the ethylene oxide and
derivates market, maintaining a leading position in
these markets that strengthens barriers to entry. Oxiteno’s
strategy is to increase its specialty chemical production
capacity and its geographic reach.
Besides being the only producer of ethylene oxide
and its principal derivatives in Mercosur, Oxiteno’s
principal competitive advantages include (i) its
large production capacity in excess of Brazilian
demand; (ii) its operational flexibility which enables
it to optimize its sales mix in line with market
conditions; (iii) its plants which employ technologically
advanced production processes; (iv) its advanced
research and development centers for improving production
processes and product uses; and (v) its competitive
production scale, as Oxiteno owns the largest ethylene
oxide unit in the Southern Cone.
In August 2003, Oxiteno took the first step towards
the internationalization of its operations, with
the acquisition the Berci Group’s chemical
business (CANAMEX), a specialty chemical Mexican
producer. CANAMEX has three plants in Mexico, in the
city of Guadalajara, Coatzacoalcos and San Juan del
Rio, with the same
technology base that exists in Oxiteno’s
Brazilian plants
for the manufacture of tensoactive agents. The product
lines of the two companies are similar and for certain
markets, complementary.
This acquisition signifies growth potential, allowing
the company to establish a growing presence in the
Mexican specialty chemicals market and create a production
platform for distribution to the United States.
PRODUCTS AND MARKETS
Oxiteno’s products can be divided into
two principal groups: (i) commodity chemicals, which
are generally higher-volume products, with standard
features, and (ii) specialty chemicals, which tend
to be lower-volume products sold on the basis of
chemical composition and suitability to meet a particular
end-use requirement. Oxiteno’s principal commodity
chemicals are ethylene oxide, ethylene glycol and
methyl-ethyl-ketone, or MEK. Oxiteno’s principal
specialty chemicals include a wide variety of products
that are used as surfactants, softeners, dispersants,
emulsifiers and hydraulic fluids.
See
Oxiteno’s products
and applications
Oxiteno’s principal raw material is ethylene
and its main suppliers are Braskem and Petroquímica
União. Supply of ethylene constitutes an entry
barrier to new ethylene oxide producers in the country
since the current production capacity of ethylene
by Brazilian crackers is committed to existing second
generation companies, and significant investments
are needed for the construction of a new cracker.
In addition, the characteristics of ethylene oxide
(highly inflammable at room temperature and atmospheric
pressure), make importing of this product generally
uneconomical. Oxiteno competes largely with imported
products.
The Brazilian petrochemicals industry seeks to prioritize
demand from the domestic market, where there is greater
value added, although sales are also made to the
overseas market. While Oxiteno sells the larger part
of its commodities and specialty chemicals in Brazil,
production capacity exceeds domestic market demand,
the company exporting surplus production to more
than 48 countries in Asia, Latin America, Europe
and North America.
See diagram
of products and principal
uses of Oxiteno
QUALITY, RESEARCH AND DEVELOPMENT
Two percent of annual revenues are invested in
Research and Development, thus continually enhancing
customer assistance as well as development of new
products and applications.
Oxiteno has developed a structured Quality Management
system, based on the requirements of various industry
standards and international quality programs, such
as ISO 9001, QS-9000 (automotive second), Responsible
Operations and Good Manufacturing Practices (BPF).
Concern with regard to the quality of environmental
management is demonstrated through ISO 14001 certification,
present in all the company's units. Oxiteno was the
first industrial chemical company in Brazil to obtain
SA 8000 certification, which establishes requirements
for a system of quality management, with a strong
focus on social responsibility.
For more information on Oxiteno, access
our 20F
