Rauma sees strength on CTO business in Europe by

Chemical Market Reporter, NY, Doris de Guzman

Selected extracts from the article:

“In the midst of a declining global crude tall oil (CTO) fractionating capacity and the ongoing major restructuring in the tall oil industry, a new player decided to make a significant investment and enter the tall oil derivatives business in Europe without the participation and acknowledgement of big industrial enterprises. The new company, Rauma Forest Chemical Oy, founded on September last year, was started by a group of Finnish investors and some former management from Arizona Chemical Europe (CMR 5 p.3). Finnish capital investors Bio-Fund Management, Merita Capital and OKO-Venture Capital, representing their funds, and Suomen Teollisuussijoitus are the owners of Rauma with additional ownership from some of the company management.”

“North Europe is one of the major CTO-producing regions in the world. The largest tall oil fractionator in Europe, Arizona Chemical, consumes most of the Scandinavian CTO with fractionating plants in Moss, Norway; Oulu, Finland; Valke, Finland; and Sandarne, Sweden. Arizona’s total fractionating capacity in Europe is currently at 365 thousand tons, according to Mendenhall, Pa.-based International Development Associates consulting firm, accounting for 83 percent of the European market share in tall oil fractionation capacity. Rauma plans to target 30 to 33 percent of this market share. Rauma will market its products mainly to Europe concentrating in Sweden, Great Britain, Germany, and in the Benelux countries. Export will account for about 90 percent of the company’s manufacture. The overall value of the total investment is around FIM 400 million ($59.4 million) with production expected to begin by the end of 2002.”