Oleon Acquires Brazilian Company

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The climate makes cultivating castor plants in Brazil a challenge but the country is still the world's number three producer.

Belgian oleo-chemicals company Oleon acquired a majority stake in A.Azevedo Oleos, a Brazilian oleo-chemical company based in Sao Paulo. The addition of A.Azevedo Oleos extends Oleon’s reach in the Americas, adding to operations in North America.

Headquartered in Belgium, Oleon has production sites in Germany, France, the United Kingdom, the United States and Malaysia. The company produces more than 500,000 tons per year of oleo chemicals from animal and vegetable fats. Its product range includes fatty acids, glycerin, dimers and esters.

Esters are versatile molecules that can be made to specifications and can be used as a both a base stock and an additive in lubricants. Their drawback is that they are considerably more expensive compared with mineral base oils.

Brazil produces 43,300 metric tons per year of castor, from which oil is extracted. The country is the third-largest castor producer in the world, just behind Mozambique. The biggest producer is India, with 1.6 million t/y.

Castor is particularly sensitive to grey mold, especially in Brazil’s humid climate. So cultivation is restricted to certain regions and seasons.