August 20, 2009: Trafigura Beheer B.V., the international commodities trading company and SK chemicals, Co. Ltd, the global chemical company based on Seoul, Korea today announced the signing of a contract for the sale and purchase of palm methyl ester (PME).

The contract specifies that Trafigura will take 60,000 metric tonnes of PME from SK chemicals, FOB Ulsan, Korea, where SK is headquartered, in calendar 2010.   This will be taken in shipments of 5,000 mt per month from January to December 2010. 

Recognising the potential for biofuel in Asia, Trafigura established a biodiesel desk in Singapore in the third quarter of 2008.   Asia is Trafigura’s biggest market for biodiesel after Europe ? it sells approximately 300,000 to 400,000 mt of biodiesel into Europe each year and around 240,000 mt into Asia.

Since its launch last year, SK chemicals has been the leader in the Korean biodiesel market. Not content with the current position, SK chemicals has just completed the scale-up of its Ulsan biodiesel plant’s capacity to 120,000 ton from 40,000 ton in order to extend its leadership in the local market.

SK chemicals’ expressed the company’s global ambitions.  “Further, with our cost and quality competitiveness we have been planning to expand our biodiesel business geographically and this milestone agreement will help us successfully enter into the global market,” he said.   ”Even in this time of economic downturn, SK chemicals is increasing its effort to grow its bio-energy related businesses globally, looking into business possibilities in EU and Southeast Asia.”

Trafigura director Tom O’Brien said the biofuel industry in the region was significant and growing quickly.  “Asia’s installed biodiesel capacity is 4 million mt and growing while total annual exports from the region are in the vicinity of 500,000 mt, of which Trafigura accounts for 44%,” he said.

“At the same time we have also imported a significant quantity of SME for blending purposes and destined for North East Asia.  We now have fully operational blending terminals in Singapore, Pyong Taek and Taiching.”

SK chemicals

SK is the 3rd largest Korean business group with an annual turnover of US$ 83.5 billion and having market leading positions in the field of Oil and Petrochemicals and Mobile telecommunications in the Korean market. .

Established in 1969, SK chemicals, as one of the core affiliates of the SK group, is working toward a future of happy harmony between humans and the environment by developing eco-friendly processes and products to make our lives safe and healthy based on its accumulated technical capability.

SK chemicals is focusing on two business domains, green chemicals and life science. Green chemicals include new materials, composite materials, high performance resins and bio-energy while Life science division is manufacturing synthetic drugs, natural products, vaccine/blood preparations and drug delivery system.

In order to accelerate its globalization strategy, SK chemicals is already securing overseas production bases in Indonesia, China and Poland with four sales offices in New York, Tokyo, Shanghai and Frankfurt.

SK chemicals recorded total sales of US$863 Million and operating profit of US$59 Million in 2008.

Trafigura

Trafigura is one of the world’s leading international commodity traders, specialising in the oil, minerals and metals market, with 54 offices in 37 countries in Europe, Africa, Asia, Australia, and North, Central and South America. Its principle corporate offices are in Amsterdam, London and Lucerne.

Trafigura’s primary trading businesses are the supply and transport of crude oil, petroleum products, natural gas, liquefied natural gas, metals (including copper, lead, zinc and aluminium) and metal ores and concentrates.

It is the world’s second largest independent non-ferrous trading company and the third largest independent oil trader.

Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in the last five years, growing turnover from US$12 billion in 2003 to US$73 billion in 2008.

For further information go to: www.trafigura.com