Post on 14-Feb-2019
Francisco de Assis Esmeraldo, president
Instituto do PVC - São Paulo, Brazil
Vinyl Players
BraskemBraskem
Carbocloro
Solvay Indupa
Petco
Pequiven
Solvay Indupa
Braskem
Source: CMAI, Braskem
BRAZIL
ARGENTINACHILE
PERU
EQUADOR
COLOMBIA
BOLIVIA
VENEZUELA
URUGUAI
PVC Capacities
PVC Capacity (kt/year)
479
231140 128
140
240210
355
120 150280
281
MVC Capacity (kt/year)
EDC Capacity (kt/year)Source: CMAI, Braskem
BRAZIL
ARGENTINA
COLOMBIA
Solvay Indupa
Solvay Indupa
Carbocloro
Braskem
442
600
PequivenPetco
PVC Demand
South America PVC Demand:1,14 million t (4.1 % of world demand)
Source: CMAI, Braskem
700
6362
11
7
853
40
12842
20
PVC Demand (2002)
BRAZIL
ARGENTINACHILE
PERU
EQUADOR
COLOMBIA
BOLIVIA
VENEZUELA
URUGUAI
PARAGUAI
GUIANAS
• End uses - %
PVC Demand
Source: Local Companies, compiled by Instituto do PVC
Piping & Fittings 51 35 52 68
Films 5 12 6 4
Compounds 37 50 38 22
Other 7 3 4 6
Total 100 100 100 100
Country
End Use Brazil Argentina Colombia Venezuela
PVC Demand - Housing
0,000
1,000
2,000
3,000
4,000
5,000
6,000
7,000
6,000
Brazil
3,700 (E )
Argentina
1,700
Colombia
1,500
Venezuela
HOUSING DEFICIT (2002) - 1,000 UNITS -
52
2431
0
50%
100 %
11
Argentina
2
Colombia
25
Venezuela
15
Brazil
URBAN60 RURAL
BASIC SANITATION DEFICIT- Sewage -
Source: IBGE, Brazilian Construction Industry Conference, DANE(E) Estimated
The Region deficit in housing will fuel PVC growth
PVC Demand - Sanitation
0,000
1,000
2,000
3,000
4,000
5,000
6,000
7,000
6,000
Brazil
3,700 (E )
Argentina
1,700
Colombia
1,500
Venezuela
HOUSING DEFICIT (2002) - 1,000 UNITS -
52
2431
0
50%
100 %
11
Argentina
2
Colombia
25
Venezuela
15
Brazil
URBAN60 RURAL
BASIC SANITATION DEFICIT- Sewage -
Source: World Bank
The region deficit in sanitation will fuel PVC growth
PVC Consumption per Capita - 2002/2003
PVC CONSUMPTION POPULATION(1000 t) (millions) KG/INHABITANT
Country 2002 2003 2002 2003 2002 2003
Brazil 690 605 175 178.5 3.9 3.4Argentina 70 85 37 37.5 1.9 2.3Colombia 130 110 44 44.8 3.0 2.5Venezuela 40 30 23 23.5 1.7 1.3
Sources: IBGE (Brazilian Institute of Geography and Statistics), Braskem.
Prospective Analysis
Growth Rate Forecast/Year - 2004/2008
Country %
Brazil 5.0 - 6.0Argentina 4.0 - 5.0Colombia 2.0 - 3.0Venezuela 6.0 - 7.0
Sources: Braskem, Solvay Indupa, Harrimann Consulting
Future Expansions (1000 t)
Company Country Additional YearCapacity-t/yr
Braskem Brazil 50 2005/2006
Solvay Indupa Brazil 40 2005/2006
Environment: a key issue
On a long term basis, PVC demand may be affected by environmental restrictions that discourage product innovation and stimulate competing products.
Environmental Issues• South America faces the same challenges as other regions
a Brazilian Government totally focused on the establishment of a Solid Waste National Policy, with the participation of the plastic industries;
a The use of phthalates in toys is still a great concern (Mercosul Policy);
a Greenpeace focused on new campaign: “Domestic Poisons”;
a PVC flooring: rubber flooring manufacturers’ campaign states that PVC is not an environmental friendly product;
a Pan-American Games - Rio de Janeiro/2007: specific actions are being taken in order to avoid restrictions on PVC.
a Greenpeace focused on transgenics and devastation of the Amazon forest.
BRAZIL
Environmental IssuesSouth America faces the same challenges as other regions
ARGENTINA
b Several law projects against disposable plastic packaging (PET and PVC) and also against the use of phthalates in PVC toys. AAPVC acting strongly towards PVC defense and promotion
b Strong criticism against environmentally inadequate domestic residues disposal (Government, NGO’s and consumer entities)
b Insignificant plastic recycling throughout the country
b AAPVC created a group formed by resin, additives and pipes producers, called COTyC, to defend PVC pipes against attacks from PP and PE pipes
b Greenpeace focused on transgenic and nuclear energy
Environmental IssuesSouth America faces the same challenges as other regions
COLOMBIA
b Law Project being voted at the Senate obliges companies to get acquainted with product lifecycle before selling it
b Acoplasticos (Plastic Manufacturers Association), together with the Ministry of Environment proposed the preparation of a document regarding the sustainable management of plastic residues (as a result of the Basel Convention)
b Use of post-consumer plastics, like packaging, is strongly criticized
b Greenpeace: no local representative. Nevertheless, Greenpeace’smaterials and news are always forwarded to Colombian Government.
Instituto do PVCMain Achievements - 2003
a South American Vinyl Network (SAVN) foundation, in São Paulo - Brazil, including Brazil, Argentina, Colombia and Venezuela (March)
a Speech of the Minister of Economic and Social Development to Instituto do PVC members and guests. Invitation by the Minister to join the Ministry’s Council (April)
a Launching of the document “PVC Contribution to Sustainable Development” (June)
a Pipe & Fittings producers - voluntary commitment for replacing Pb stabilizers by Ca/Zn stabilizers. Deadline: December/2004;
a Meeting with the new Minister of Environment in order to introduce Instituto do PVC (July);
a SAVN first international presentation: GVC Meeting - Athens/2003.
Instituto do PVC
First Brazilian PVC Congress
Date: October 5-6, 2004
City: São Paulo, Brazil
Place: to be defined
Instituto do PVC
First Brazilian PVC Congress
Preliminary Program
aTue, Oct 5th
Morning: Opening & Worldwide PVC Market PanelAfternoon: Sustainable Development & Communication
aWed, Oct 6th
Morning: TechnologyAfternoon: Innovation