AAK Annual Report 2020

AAK Annual Report 2020 27 Tefac Our Tefac business started off 2020 with good demand for our fatty acids products and continued growth for our solutions to the candle industry. In the second and third quarters, however, pandemic-related lockdowns in many European countries had a significant negative impact on demand from several industries and con- sequently on our business. We saw a gradual improve- ment in all industries from the third quarter, and in the fourth, demand was back to normal. Solutions AAK offers refined fatty acids and glycerine to a wide range of technical industries as well as solutions based on sustainably produced plant-based fats to the candle industry. The fatty acids and glycerine are produced by oleochemical splitting of the fat molecule and subsequent refining of the fractions. Trends The trend towards an increased use of natural, sus- tainable waxes in the candle industry, at the expense of fossil paraffin, remains strong and we expect to benefit from this in the next years. In the longer perspective, we believe that the transformation from a fossil-based to a bio-based economy in Europe will be positive for our natural oleochemicals business. New products We have during the year continued to add solutions to our portfolio for candle makers to match our custom- ers’ demand for sustainable and functional candle waxes. Future growth We strongly believe in the development of renewable, sustainable candle waxes to replace non-renewable alternatives, and we will continue to focus on devel- oping more opportunities in this segment to build the best possible pipeline for future growth.