Composites: a profile of the worldwide reinforced plastics industry, markets and suppliers

284 Pages·1999·6.912 MB·English

Executive summary
The composites industry started life at the end of the Second World War, primarily
as a craft-based business with numerous small moulders using open mould
techniques to make vehicles, caravans, boat hulls and tanks and vessels.
In the past 50 years, the sector has developed into an US$8 billion raw materials
business shipping some 5.5 million tonnes of composite parts worth
US$141 billion. This has been achieved by growth and proliferation, followed,
in the 1990s, by consolidation and globalisation.
Steady growth ni mature markets
sA we reach the end of the twentieth century, the composites markets of the ,ASU
Western Europe and Japan are maturing and stabilising. The ASU has seen 7 years
of consecutive growth in excess of the rate of increase in gross domestic product
(GDP). Europe's markets have traditionally been more cyclical, but in the past 5
years have begun to follow the American pattern of more stable and consistent
development. In the medium term - the period covered by this report - both
markets look set to shown steady but unspectacular growth of 2--4% a year. Japan
appeared to hit maturity much earlier, with growth stagnating during the mid-
1990s, a factor emphasised by the strength of the Yen and the move to cheaper,
offshore production seen from many Japanese companies. However, the latest
figures indicate that recession in the remainder of Asia may in fact be benefiting
the Japanese, with a slow recovery forecast for the period to 2005.
Unrealized potential ni developing economies
The past five years have also seen significant moves in developing global markets.
Regions such as India, China, Latin America and Africa have per captia composites
consumptions of less than 1 kg per head, compared with consumption ranging
from 3-7 kg per head in the developed regions. As these markets develop less
restricted economies and higher standards of living, the composites community
has moved in to transfer established applications to new markets; for instance
wind turbine blades in India, car components in Taiwan, and pipe in Africa.
Notable investments in developing regions include Owens Corning's 30 000-
tonne glass plant in India, which opened in 1999, Neste's gelcoat plants in China
and Poland, and the Malaysian government's efforts to develop the country's
composites industry.
But the fall in the fortunes of the tiger economies in late 1997 and the civil unrest
which followed in many regions in 1998, coupled with economic instability in
much of Latin America has seen the composites industry stagnate in the past few
years. This looks likely to be a temporary blip in the development, much like that
seen in Europe throughout the 1970s and 1980s, and the continued investment
by major players leads to the conclusion that the major development of the
Composites- A Profile of the Worldwide Reinforced Plastics Industry, Markets and Suppliers v
evitucexE summary
composites market in existing applications is likely to come from these regions in
the early years of the next century.
Taking composites into new end use markets
The other major channel pursued by the composites industry has been the
development of applications for composites in markets dominated by a range of
other materials ranging from wood and concrete through to unreinforced
thermoplastics. The development efforts in the infrastructure sector were
highlighted in the second edition of this report (published July 1995, ISBN 1
85617 224 4) and have continued strongly in the intervening 4 years. Notable
projects include a range of demonstration pedestrian and road bridges built in the
ASU using a variety of technologies, a footbridge over a railway line in Kolding,
Denmark, made from off-the-shelf pultruded profiles, and the commercialisation
of composite dock fenders. The pipe market had also been targeted by a number
of companies, notably Owens Corning's Engineered Pipe Systems (EPS)
subsidiary which now has wholly owned and joint venture pipe production
facilities in 19 countries worldwide.
More recent moves to develop other applications from composites include a
series of joint ventures by glass maker Owens Coming, which include an alliance
with DSM Automotive to produce long fibre compounded polypropylene for
automotive applications with Geon to make compounded PVC, and ventures in
the automotive noise management systems and electromagnetic shielding sectors.
The company estimates that such ventures will bring in some US$120 million
additional revenue by 2002 and could expand the potential end use market for its
glass fibres from the current US$4-~ billion to some US$20 billion in the long
term.
Environmental concerns pose a threat
ff global expansion and penetration of new markets are opportunities for the
composites industry, what are the threats? The major threat still has to Ee the
environmental concerns about the materials used in composites fabrication- in
particular the emission of styrene during the moulding process. Scientific studies
have shown that styrene has a degree of toxicity but to date have fallen far short of
proving it to be a carcinogen. However, concern still remains within the industry
that ever tighter legislation will be imposed on emissions, making it prohibitively
expensive for many moulders to remain in business. The ASU and most West
European countries now abide by a serf-imposed 50 ppm time weighted average
(TWA) emission, although the actual legislative level is as high as 100 ppm in
some countries. However, in others, notably Scandinavia, the levels are just
20 ppm, with the expectation that new installations meet 10 ppm and it appears
likely that this may be become the norm in the future. The industry has taken
steps both in the development of low styrene containing and low styrene-emitting
resins and gel coats, and in the development of, and conversion to, cleaner closed
mould processes. However, no economic and thoroughly assessed alternative to
styrene exists for the mass market and further restrictions on its use in composites
processes could significantly hinder the industry's ability to grow. For the
timescale covered by this report it is believed that a gradual tightening in
legislation will be seen but no moves are likely to have a catastrophic effect on
development.
vi Composites- A Profile of eht ediwdlroW Reinforced scitsalP ,yrtsudnI Markets and sreilppuS
evitucexE yrammus
Good growth in next five years
Taking into account all these factors and assessing economic development
forecasts for the next five years we believe that the global composites industry will
grow some 43% in value between 1998 and 2005, reaching a value of
US$205 billion. Growth in tonnages will be lower at 27% reaching 7 million-
tonnes. The discrepancy in growth rates is explained by the industry success in
finally selling composites as a value-added engineering solution, rather than a
cheap alternative to metal or wood.
Over the period covered by this report, we also expect to see the development of
more global suppliers and customers, and continued evolution- rather than
revolution- of markets in developing countries.
Composites- A Profile of the ediwdlroW decrofnieR scitsalP ,yrtsudnI Markets and sreilppuS vii
Introduction
Composites are a combination of several forms of material which exhibit the
features of each constituent whilst also providing special characteristics not
achieved by a single material alone. Although a composite may be a homogeneous
mix, the individual elements remain unchanged and confer their distinct
properties on each other without loss of identity or characteristic.
Composite materials have been made throughout history, from the straw-
strengthened bricks mentioned in Exodus through wattle and daub, wrought iron
and reinforced concrete. This report is concerned with those materials employing
a fibrous reinforcement to strengthen the polymer matrix in which the
reinforcement is contained.
The modern composites used today have shown steady and continuous
development since they were initially discovered in 1942 and are commonly
known as 'fibre#ass' or by the acronyms GRP (glass reinforced plastic) and PRF
(fibre reinforced plastic). Most commercially used composites have a glass, carbon
or aramid fibre reinforcement, which adds strength and durability to the
surrounding thermoset or thermoplastic polymer matrix.
The report is aimed at those within the composites industry, those contemplating
entry into such areas as raw materials or equipment supply, or as manufacturers
and at users or potential users of the wide range of products and components
supplied by the global composites industry. There is a perceived need within the
industry to improve composites awareness by the consulting and structural
engineer, architect, designer, purchasing manager and other professionals. This
more aggressive marketing policy is being supported by nearly 50 trade and
authoritative bodies within the industry.
The purpose of the report is to assist this process with a discussion on the current
status of the industry and a forecast of its growth and direction over the next five
years. The discussion is supported by statistical evidence, related comment and
analysis. Throughout, the aim has been to present as complete and comprehen-
sive a review as possible in terms of country, geographical region, material,
market and application.
Finished product tonnage figures for 1998 with conservative forecasts through to
2005 have been broken down in respect of both thermoset and thermoplastic
based composites. Data on market sectors, fabrication techniques and distribu-
tion is also included.
ygolodohteM
The report has been compiled by interviews and correspondence with
companies, private individuals and members of the World Composites Institute.
The assistance of these sources is acknowledged with gratitude and they are listed
alphabetically under Section 3.5, Acknowledgements.
Composites- A Profile of the ediwdlroW decrofnieR scitsalP ,yrtsudnI Markets and sreilppuS ix
Introduction
The lack of comprehensive composite industry statistics has led to the
development of a method based on a 'per capita (kg) composites consumption'
value for each country, or geographical region. Such a figure may also be quoted
even where published figures exist, but was seen as an effective solution to the
problem in estimating a realistic value where no other statistics exist.
The estimated per capita values vary between .O 16 kg and 6.4 kg and have been
derived by comparing one country's level of industrialisation with another whose
per capita value is known. The basis for comparison is established trade,
industrial, financial and population data. In this way it is possible to estimate or
rank the composite per capita figure for those countries that have inadequate
statistics.
The world average for per capita consumption of composites is just under 3 kg.
Japan, however, has a consumption of 5.3 kg per person and the ASU has 6.3 kg
per person.
This procedure is seen as much more accurate than the use of glass and/or resin
consumption figures, which may not specifically relate to composites production.
For example, polyester resins are employed by many industries other than the
composites industry.
The annual growth rates employed are conservative. They are based on a number
of sources, with particular attention paid to the composite industry growth
patterns over recent years.
Mergers, acquisitions and other company movements in a global industry can
cause confusion in listing the names of companies. To avoid such confusion
company names appear as they applied on the date of that reference.
lacihpargoeG snoiger
The global composites industry is further broken down by the following
geographical regions: Africa; Asia-Pacific; Europe; Latin America; the Middle
East; North American Free Trade Association .)ATFAN(
Africa has been defined as South Africa and 'other African nations', where the
latter is the remainder of Continental Africa, including Tunisia, Morocco and
other 'coastal' nations but excluding Egypt, which is included in the section
coveting the Middle East.
Asia-Pacific has been taken as including Australia, Bangladesh, Brunei, Cambodia,
China, Hong Kong, India, Indonesia, Japan, (North and South) Korea, Laos,
Malaysia, Mongolia, Myanmar (formerly Burma), Nepal, New Zealand, Pacific
Islands, Pakistan, Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand,
Taiwan, Tasmania and Vietnam.
Europe has been defined as: European Union (EU) Europe, as at January 1999,
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, Netherlands, Portugal, Spain, Sweden and the United Kingdom.
Western Europe includes UE Europe and Norway, Switzerland, the Faroe Islands,
Greenland and Iceland.
x Composites- A Profile of the Worldwide Reinforced Plastics Industry, Markets and Suppliers
Introduction
Eastern Europe is defined as all former Soviet Union or Bloc and other
neighbouring countries, often previously considered as Iron Curtain countries,
comprising Albania, An~enia, Azerbaijan, Belo-Russia, Bosnia, Bulgaria, Croatia,
Czech Republic, Estonia, Georgia, Hungary, Kosovo, Latvia, Lithuania, Macedonia,
Moldavia, Montenegro, Poland, Romania, Serbia, Slovak Republic, Slovenia,
Turkey, Ukraine and the Yugoslavia Republic.
Russia has been taken as Afghanistan, Kazakhstan, Russian Federation,
Turkmenistan and Uzbekistan.
Latin America has been taken as Cuba, the islands of the Caribbean and West
Indies, and all South American countries lying on or below the Tropic of Cancer.
The Middle East has been taken as Bahrain, Egypt, Kuwait, Iran, Iraq, Israel,
Jordan, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and The
Yemen.
North American Free Trade Association region (NAFTA) has been taken as
Canada, Mexico and the .ASU
Dependencies and offshore islands are included with the respective country of
sovereignty.
Other attributes
In addition, the following attributes apply throughout the study (unless otherwise
noted):
(cid:12)9 all tonnage output or consumption values employ the same metric
tonnes x 1000 unit;
(cid:12)9 reinforced thermoplastic injection moulded components have been classified
as composites as long as the fibre length is greater than 0.250/6.25 mm;
(cid:12)9 monetary values, other than as stated, are based on the US dollar value at the
time of publication and where necessary also take into account inflation
running at an average of 2.5% per annum;
(cid:12)9 printed circuit boards have not been included under any electrical/electronic
classification sub-total;
(cid:12)9 polymer concretes, simulated marble and allied products are not considered
by this ;yduts
(cid:12)9 other than briefly reviewing carbon and aramid fibre as a raw material,
advanced composites, using this reinforcement receive little consideration in
this study. Their total finished product tonnage has only minimal effect on the
statistics presented;
(cid:12)9 shipment/output totals consider both thermoset- and thermoplastic-based
components, inclusive of reinforcement, fillers etc, unless otherwise noted;
(cid:12)9 all final summary totals by country or geographical region, are rounded to the
nearest 5000 tonnes;
(cid:12)9 telephone numbers employ a full international code; the digit (0) is therefore
omitted.
Composites- A Profile of the Worldwide Reinforced Plastics Industry, Markets and Suppliers xi
Assessment
1.1.1 Current status
It is estimated that the global composites industry will produce 4.8 million tonnes
of finished product, with a commercial value of $131 billion (where 1
billion = 1 x 109) in 1999, compared with some 4.5 million tonnes of finished
product, valued at around US$108 billion in 1995.
During 1998 glass fibre reinforcement manufacturers, Owens Coming, published
figures indicating that the current finished product output of composites totalled
4.7 million tonnes (Table 1).
Table 1 Worldwide market, 1998
, ,, ,,, , ,
Output (million Value
tonnes) (US$ billion) Percentage
.. ,. ,, . ....
Asia-Pacific 1.082 1.84 23%
Eastern Europe 0.470 0.80 10%
Latin America 0.235 0.40 5%
Middle East and Africa 0.094 0.16 2%
North America 1.457 2.48 31%
Western Europe 1.363 2.32 29%
Totals 4.701 8.00
Vetrotex- one of the other major glass fibre reinforcement manufacturers -
suggest a somewhat different picture. Although not indicating either a total or a
value, their breakdown is: Asia 25%, Europe 27%, North America 46% and South
America 2%.This shows substantial agreement with figures they published in
1996, which indicated a world market of some 6 million tonnes. Based on
research and widespread discussion with the industry, we consider that the
higher tonnage is a more realistic figure for world production. Differences in
Composites- A Profile of the Worldwide Reinforced Plastics Industry, Markets and Suppliers 1
1 Assessment
tonnage may result from different definitions of geographic regions and of
composites themselves.
Owens Coming further divided their 4.7 million tonnes for 1998 into five basic
market classifications by country (Table 2). Both companies amalgamate output
figures for thermoset and thermoplastic composites.
Table 2 Market breakdown worldwide, 1998
(x 1000 Asia- Eastern Latin Middle North Western
tonnes) Pacific Europe America East/Africa America Europe
, ,,,,, ,,, ,
Aerospace No 47 0 No 14 13
breakdown breakdown
supplied supplied
Construction - 206 75 - 306 409
Consumer 85 38 - 423 218
Electrical 61 31 - 277 314
Transportation - 71 91 - 437 409
Totals 1082 470 235 94 1457 1363
DNARG TOTAL 4700
1.1.2 Summary: global market ni 1998
Table 3 provides comprehensive output tonnage statistics for the worldwide
composites industry.
In the second edition of this study, an average price for composites was
determined by considering composite prices at various points on the technology
scale, ranging from open-mould components through sheet moulding compound
(SMC), piping, pultrusion products, corrosion-resistant components to aerospace
products. Values varied from US$16 000 per tonne for commercial products up to
US$240 000 for advanced components in the aerospace industry. The figures
were based on prices in the USA, UK and Japan to allow for variation between
countries. The final average made allowances for differences in tonnage, i.e. the
aerospace industry has high value but low tonnage. US$24 000 per tonne (US$24
per kg) was a realistic estimate.
For this edition, the low level of inflation over the period 1995-98 resulted in a
price of US$26 000 per tonne of finished composites product. With world
production in Table 3 given as 5 415 000 tonnes, this would produce a global
composites output value for 1998 of US$141 billion.
1.1.3 Summary: forecasted global market ni 2005
Table 4 was compiled from the tonnages by country, forecast for 2005.
Respected world financial institutions such as the World Bank, are predicting low
inflation in the period to 2005. Consequently, the 1998 figure for finished product
value of US$26 000 per tonne has been increased for 2005 to US$29 000. Based
on Table 4 this indicates that the global output value for the composites industry
by 2005 can be estimated at US$203 x 109.
2 Composites - A Profile of the Worldwide Reinforced Plastics Industry, Markets and Suppliers
1 Assessment
Table 3 World composites finished product tonnage, 1998
=
Thermoset-based Thermoplastic-based
lacihpargoeG egannot egannot latoT egannot reP atipac
yrtnuoc/noiger (x 1000 )sennot ((cid:141) 1000 )sennot (x 1000 )sennot )gk(
i i
Afdca
South acirfA 30.0 4.0 34.0 1.06
Other nacirfA nations 55.0 5.0 60.0 0.16
latoT 85.0 9.0 94.0
Asia.Pacific
ailartsuA 40.8 4.7 45.5 2.40
anihC 272.0 24.0 296.0 0.22
aidnI 33.0 7.0 40.0 0.05
aisenodnI 24.2 3.6 27.8 0.16
napaJ 402.2 253.8 656.0 5.29
aeroK ).S( 60.0 7.0 67.0 1.52
aisyalaM 18.8 3.2 22.0 1.10
weN dnalaeZ 7.1 0.9 8.0 2.00
nawiaT 41.0 50.0 91.0 4.30
gniniameR seirtnuoc 74.0 6.0 80.0 0.15
latoT 973.1 360.2 1333.3 3.29
eporuE
airtsuA 28.7 4.6 33.3 4.10
muigleB 38.4 7.3 45.7 4.60
hcezC cilbupeR 13.0 2.0 15.0 1.75
kramneD 23.1 3.1 26.2 4.90
eoreaF ,sdnalsI ,dnalneerG dnalecI 0.4 0.0 0.4 1.10
dnalniF 23.4 2.2 25.6 5.10
ecnarF 209.0 52.3 261.3 4.70
ynamreG 187.2 60.6 247.8 3.20
eceerG 18.0 2.0 20.0 2.00
dnalerI 8.3 2.2 10.5 3.00
ylatI 200.8 50.2 251.0 4.40
gruobmexuL 2.4 0.0 2.4 6.40
ehT sdnalrehteN 55.9 12.3 68.2 4.50
yawroN 14.0 2.7 16.7 3.70
lagutroP 23.4 3.7 27.1 2.90
niapS 143.4 35.9 179.3 4.60
nedewS 32.9 5.5 38.4 4.50
dnalreztiwS 16.0 10.5 26.5 3.80
yekruT 25.2 2.8 28.0 0.50
KU 155.3 38.8 194.1 3.50
gniniameR seirtnuoc 255.0 45.0 300.0 1.25
latoT 1473.8 343.7 1817.5
aissuR
,natsinahgfA ,natshkazaK naissuR 106.0 17.0 . 123.0 0.82
,noitaredeF natsinemkruT dna
natsikebzU
ATFAN
adanaC 70.0 8.4 78.4 2.90
ocixeM 49.5 10.5 60.0 0.71
ASU 1370.0 260.0 1630.0 6.50
latoT 1489.5 278.9 1768.4
Latin America
anitnegrA 31.0 3.7 34.7 0.97
lizarB 83.0 10.0 93.0 0.64
elihC 5.9 0.6 6.5 0.48
aibmoloC 6.1 0.6 6.7 0.22
aleuzeneV 12.0 0.9 12.9 0.65
gniniameR seirtnuoc 11.5 1.3 12.8 0.18
latoT 149.5 17.1 166.6
Middle East
,niarhaB Kuwait, ,rataQ Saudi aibarA 46.0 0.0 46.0 2.40
dna EAU
tpygE dna learsI 29.7 4.3 34.0 0.60
,narI Iraq, ,nadroJ ,nonabeL ,namO 30.0 0.0 30.0 0.30
,airyS nemeY
latoT 105.7 4.3 110.0
LLAREVO LATOT 4382.6 1030.2 5412.8 2.40 avg
IIIll II I Ill I i
Composites- A Profile of the Worldwide Reinforced Plastics Industry, Markets and sreilppuS 3
1 Assessment
Table 4 Projected world composites finished product tonnage, 2005
Thermoset-based Thermoplastic-based reP
lacihpargoeG egannot egannot latoT tonnage capita
yrtnuoc/noiger (x 1000 )sennot (x 1000 )sennot (x 1000 tonnes)
H,, i i i i
Africa
South acirfA 35.0 5.2 40.2 1.25
rehtO African nations 60.5 6.5 67.0 0.18
latoT 95.5 11.7 107.2
Asia-Pacific
ailartsuA 50.0 7.5 57.5 2.72
anihC 503.0 55.0 558.0 0.40
aidnI 87.0 19.0 106.0 0.13
aisenodnI 30.9 6.2 37.1 0.21
napaJ 485.0 320.0 805.0 6.49
aeroK ).S( 69.2 8.3 77.5 1.76
aisyalaM 23.8 4.8 28.6 1.43
weN dnalaeZ 8.1 1.5 9.6 2.40
nawiaT 49.6 78.5 128.1 6.65
gniniameR countries 83.0 7.7 90.7 0.17
latoT 1389.6 508.5 1898.1
eporuE
airtsuA 35.4 5.8 41.2 5.10
muigleB 49.2 9.4 58.6 5.90
hcezC cilbupeR 15.6 2.7 18.3 2.14
kramneD 29.0 4.5 33.5 6.30
eoreaF ,sdnalsI ,dnalneerG dnalecI 0.5 0.0 0.5 0.90
dnalniF 29.2 3.4 32.6 6.40
ecnarF 270.0 74.0 344.0 6.20
ynamreG 231.0 78.0 309.0 4.10
eceerG 20.9 2.7 23.6 2.40
dnalerI 9.7 2.8 12.5 3.60
ylatI 261.4 71.6 333.0 5.80
gruobmexuL 3.0 0.0 3.0 8.00
ehT sdnalrehteN 72.4 17.6 90.0 6.90
yawroN 17.5 4.0 21.5 4.80
lagutroP 27.6 5.1 32.7 3.50
niapS 188.6 51.6 240.2 6.00
nedewS 41.8 7.7 49.5 5.80
dnalreztiwS 20.0 13.5 33.5 5.40
yekruT 44.0 7.0 51.0 0.91
KU 196.4 53.8 250.2 4.50
gniniameR countries 290.0 60.0 350.0 1.46
latoT 1853.2 475.2 2328.4
aissuR
,natsinahgfA ,natshkazaK 116.7 18.8 135.5 1.35
naissuR ,noitaredeF
natsinemkruT dna natsikebzU
ArIFAN
adanaC 89.0 10.7 99.7 3.70
ocixeM 64.0 15.5 79.5 0.94
ASU 1620.0 355.0 1975.0 7.90
latoT 1773.0 381.2 2154.2
I~tin America
anitnegrA 38.1 4.6 42.7 1.19
lizarB 105.6 12.7 118.3 0.81
elihC 6.7 0.7 7.4 0,55
aibmoloC 7.0 0.7 7.7 0.25
aleuzeneV 12.9 1.1 14.0 0.71
gniniameR countries 12.8 1.3 14.1 0.19
latoT 183.1 21.1 204.2
Middle East
,niarhaB Kuwait, Qatar, Saudi aibarA dna EAU 62.0 0.0 62.0 3.20
tpygE dna learsI 36.0 5.0 41.0 0.70
,narI Iraq, Jordan, ,nonabeL 37.0 0.0 37.0 0.40
,namO ,airyS nemeY
latoT 135.0 5.0 140.0
LLAREVO LATOT 5546.1 1421.5 6967.6 2.71 avg
,, ~, i i
4 Composites - A Profile of the Worldwide Reinforced Plastics Industry, Markets and Suppliers