BRIC automotive plastics market to register CAGR of over 15% till end of decade

MOSCOW (MRC) -- The BRIC automotive plastics market was valued at USD 11244.4 mln in 2014, and is projected to register a CAGR of 15.4% during forecast period 2015 - 2020, as per Plastemart with reference to Future Market Insights.

Automotive plastics are used to manufacture various components such as lighting systems, seating systems, automotive carpets and upholstery, bumpers, etc. Manufacturers use plastics for various components under these three applications including as a substitute for steel in vehicle doors, bumpers, fenders and other automotive components.

Interior application segment accounted for higher revenue as compared to exterior and under-bonnet component segments in the BRIC automotive plastics market in 2014. Among all plastic material types, polypropylene (PP) leads in terms of consumption with 31%, followed by polyurethanes (PU), acrylonitrile butadiene styrene (ABS) and polycarbonates (PC). This is attributed to the various properties exhibited such as easy forming and lightweight as compared to metals.

The PP segment is projected to dominate the BRIC automotive plastics market throughout the forecast period due to increasing penetration of premium cars in the region, whilst ABS is expected to register highest CAGR among all other plastic materials due to increasing usage in vehicle interiors. The passenger vehicle segment is expected to register a CAGR of 17%, making it the fastest growing segment when compared to the commercial vehicle segment. Growth of the aftermarket segment in the BRIC automotive plastics market is fuelled by replacement of old or damaged parts and increasing number of vehicle in operation due to increasing cab/rental car services across the globe.

Growth of BRIC automotive plastics market is driven by various factors such as growing demand for passenger vehicles, rising export of automotive plastics components and stringent government regulations to control vehicular emissions.

As MRC reported earlier, the global automotive plastic consumption is anticipated to grow from 7.1 mln tons in 2012 to 11.3 mln tons by 2018 at an expected CAGR of 8% from 2013 to 2018, as per RnRMarketResearch. The high growth rate of the industry is attributable to increasing passenger car production and initiatives by automobile manufacturers towards light-weighting of cars. The global market is mainly driven by passenger car production and increasing utilization of automotive plastics in vehicle designs. The report covers global consumption of seven major types of automotive plastics used in passenger cars such as polypropylene (PP), polyurethanes (PU), polycarbonates (PC), high density polyethylene (HDPE), polymethyl methacrylate (PMMA), acrylonitrile butadiene styrene (ABS), and composites.
MRC

CGPC restarted PVC plant in Taiwan after maintenance

MOSCOW (MRC) -- China General Plastics Corp (CGPC) has restarted its polyvinyl chloride (PVC) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Taiwan informed that the plant resumed production on July 31, 2015. It was taken off-stream for maintenance turnaround on July 20, 2015.

Located in Kaohsiung, Taiwan, the plant has a production capacity of 170,000 mt/year.

As MRC reported before, in late July 2015, CGPC Polymer Corporation shut its PVC plant in Toufen, Taiwan, for maintenance turnaround. It is expected to remain off-stream for around 10-12 days. The plant has a production capacity of 180,000 mt/year.

We also remind that, in H2 April, 2015, Formosa Plastics shut its PVC plant for maintenance turnaround. It remained off-stream till May 1, 2015. Located at Kaohsiung in Taiwan, the plant has a production capacity of 450,000 mt/year.
MRC

GPPC to shut SM plant in Taiwan for turnaround

MOSCOW (MRC) -- Grand Pacific Petrochemical Corp (GPPC) is likely to shut a styrene monomer (SM) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Taiwan informed that the plant is planned to be shut in September 2015. It is likely to remain off-stream for around one month.

Located in Tashe, Taiwan, the plant has a capacity of 240,000 mt/year.

As MRC wrote before, GPPC is likely to shut its SM plant in Taiwan with a production capacity of 130,000 mt/year for maintenance turnaround in November 2015. It is planned to remain off-stream for around one month.

Earlier, GPPC shut down its SM plant for maintenance on February 15, 2014. It remained off-stream till March 11, 2014. Located at Tashe in Taiwan, the plant has a production capacity of 130,000 mt/year.
MRC

Teknor Apex sells UK engineering thermoplastics assets to Petlon

MOSCOW (MRC) -- Teknor Apex Company has sold its Beetle brand, certain manufacturing assets, and related customer lists to UK-based Petlon Polymers Ltd, as per GV.

The deal with Petlon, expected to be finalised by the end of September, involves a small portion of Teknor Apex’s nylon business. The company said that it will continue to supply nylon compounds throughout the world under the Chemlon brand.

The sale follows a fire on 29 April 2015 that devastated a compounding facility of the company at Oldbury, UK, which produced engineering thermoplastics and thermoplastic elastomers. Teknor Apex will continue to produce nylon compounds in the United States and Singapore under the Chemlon brand and supply them worldwide.

"While Teknor Apex is well positioned to supply nylon and TPEs in Europe and throughout the world, we determined that we could not serve some ETP accounts at a level of service that their business required," said William J. Murray, president of Teknor Apex. "The accounts that we are relinquishing represent a small portion of our worldwide nylon business and include some engineering-grade PET business as well as nylon."

As MRC informed previously, in July 2015, Teknor Apex Company introduced a new series of styrenic block copolymer elastomers, which exhibits performance comparable to that of thermoplastic vulcanizates (TPVs) widely used in window gaskets while offering new options for building product manufacturers.

Teknor Apex is one of the world's leading custom compounders headquartered in Pawtucket, Rhode Island, USA. The company produces PA compounds in the UK, the U.S.A., and Singapore. Teknor Apex is one of the world's leaders of specialty PVC compounds which are used in a wide range of applications from wire and cable to automotive, medical, consumer and industrial products. The company also produces thermoplastic elastomers, nylon, bioplastics, chemicals, specialty compounds.
MRC

Reliance Industries to invest USD5 bln for refining and petrochemicals business

MOSCOW (MRC) -- The leading private conglomerate Reliance Industries Limited (RIL) has announced that it will be investing USD5 bln for its refining and petrochemicals business by March, 2016, reported Plastemart.

The decision came after the strong refining margins led to higher profits for the company in Q1. The Mukesh Ambani-led company operates the largest refinery complex of the world. The company witnessed a 12% increase in its net profit of April-June 2015 quarter. It recorded profits of Rs. 63.18 bln.

Analysts had predicted the profit to be Rs. 63.08 bln but the company exceeded expectations. Refining margins are the highest in six years. The company is making heavy investments to increase the capacity.

We remind that, as MRC informed earlier, in April 2015, RIL successfully put into operation two plants in Dahej, Gujarat, India. The first was a polyethylene terephthalate (PET) resin plant, which consists of two lines with a combined manufacturing capacity of 650 KTA. The plant has been built with Invista technology for continuous polymerization and Buhler AG technology for solid state polymerization. This is one of the largest bottle-grade PET resin capacity at a single location globally, and consolidates Reliance’s position as a leading PET resin producer with a global capacity of 1.15 MMTPA, the company said. PET resin from the new capacity would find application in packaging for water, carbonated soft drinks, pharmaceuticals and other food and beverages.

The second facility is a new purified terephthalic acid (PTA) plant that provides a capacity of 1,150 KTA. With the commissioning of this plant, also built with Invista technology, Reliance’s total PTA capacity will increase to 3.2 MMTPA, and its global capacity share will rise to 4%.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC