Indian oleochemicals manufacturer VVF Ltd. has entered the U.S. market by establishing a sales office in Freehold, N.J. The company, which sells vegetable oil derivatives into the lube additives and other industries, appointed former Pilot Chemical executive Neil Burns to be its vice president of U.S. operations.
Headquartered in Mumbai, VVF operates six oleochemical plants in India. Its sales have been primarily in India and Southeast Asia, but the privately owned company has set a goal to become a global player. Burns, who left Pilot during a management restructuring and corporate relocation earlier this year, said this is an opportune time to enter the American market.
There is an overall trend that is pushing the use of oleochemicals, he said. Weve seen moves by a number of companies that want to use plant oil derivatives as an alternative to petrochemicals. Of course, its driven by the steep increases during the past year in costs for oil and natural gas, but [use of oleochemicals] is something these companies are doing not just a short-term step but rather as a strategic move going forward.
VVF manufactures fatty acids, alcohols and glycerines from palm, mustard and other plant oils. Among the markets it serves, Burns said it sells a significant portion of its products to companies that use them to make esters and additives used in lubricants.
While working to expand sales in the United States, Burns said VVF is also investigating the possibility of building a plant in North America. The companys other main activity is production of soaps and other personal care products, and that division operates a plant in Mississauga, Ontario, along with four in India and one in Dubai, United Arab Emirates.