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Cognis Announces Plans to Expand Esterification at Its Cincinnati Plant

Published on 2006-05-24. Author : SpecialChem

CINCINNATI -- Cognis, a leader in naturally derived oleochemicals, is pleased to announce plans to upgrade and debottleneck the esterification plant at its Cincinnati facility. The multi-million dollar investment will provide additional capacity and efficiency for serving its customers around the world.

"We intend to secure our place in the supply chain of the synthetic lubricants and agricultural markets," said Jeff Kubiak, Ester Plant Manager. "By optimizing the esterification process we decrease cycle time and increase efficiency, which increases our competitiveness. In addition, the project will include the retirement and removal of older equipment to allow for future expansion."

The decision to expand the site's esterification capacity further indicates Cognis' commitment to its customers, its employees and the community. Just last month, Cognis announced an investment of more than $20 million for a new fleet of boilers to power the Cincinnati plant.

Cognis' esters are the basestock for Cognis' transmission and axle lubricants, primarily targeted at the heavy-duty truck industry. These synthetic lubricants dramatically reduce maintenance, extend drain time, and promote fuel economy compared to conventional mineral oil-based lubricants. Other esters made in Cincinnati are used in the manufacture of formulation components for the agricultural industry.

Construction on the esterification project is expected to begin in early summer and will be completed sometime in the first quarter of 2007.

Cognis' Cincinnati plant manufactures products made from renewable fats and oils that are used in a variety of industries, such as soaps and detergents, personal care, lubricants, agriculture and adhesives.

About Cognis

Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries. Cognis has dedicated its activities to a high level of sustainability and delivers natural source raw materials and ingredients for food, nutrition and healthcare markets, and the cosmetics, detergents and cleaners industries. Another main focus is on products for a number of other industries, such as coatings and inks, lubricants, textiles, as well as agriculture and mining. The company holds a 50-percent stake in Cognis Oleochemicals, one of the world's leading manufacturers of natural-source oleochemical basestocks.

Cognis is owned by private equity funds advised by Permira, GS Capital Partners, and SV Life Sciences. In 2005, Cognis recorded sales of 3.18 billion euros and an Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization and exceptional items) of 356 million euros.

Source: Cognis

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