COMMODITY PLASTICS TREND REPORT - …...specialty field of PVC pastes. In 2006, PKN Orlen, a mem-ber...

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51 V Kunststoffe international 10/2008 Evergreen. Worldwide demand for PVC is rising, thanks to its wide variety of potential applications and excellent engineering characteristics. Vinyl 2010 – the European PVC industry’s commit- ment to sustainability – is also on the road to success. JÜRGEN BOTHUR ROBERT HOHENADEL OLIVER MIEDEN W orldwide demand for PVC reached 35.3 million t in 2007 – 5.1 % higher than the year be- fore. Since 2004, it has been climbing at an average annu- al rate of 5.2%. This world- wide growth was driven main- ly by continuing strong de- mand in Asia, especially in China. However, strong Chi- nese demand has been ac- companied by the rapidly ex- panding construction of local PVC production sites. In 2007, China already accounted for over 30% of the world’s PVC production capacity of ap- prox. 41 million t. At a total demand of 7.8 million t of PVC in 2007 – and an average annual growth rate of 4.9% from 2004 through 2007 – Europe (incl. the CIS nations) consumes approx. 22 % of the worldwide quanti- ty of PVC and is thus the third largest regional market after America and Northeast Asia. The decisive force behind this has been strong demand in Central and Eastern Europe. Russia’s consumption alone grew by double-digits. But even in the mature Western European market, an average annual growth of 2.8% could be chalked up from 2004 through 2007. Rigid profiles remain the largest market seg- ment at 2.4 million t. Here, too, Central and Easter Europe are behind the increased demand. Meanwhile, almost all signifi- cant profile extruders are pres- ent in this region with their own production sites. But the market continues to be sup- plied by the parent companies in Western Europe. The pipe and fittings segment is devel- oping steadily with over 1.7 million t annually. The European market (incl. CIS nations) for paste PVC de- veloped well with an average annual growth rate of 5.5 % in the given period from 2004 through 2007. Here, too, Cen- tral and Eastern Europe pro- vided the growing power, sup- plemented by strong demand in Western Europe. Especially flooring and wallpaper appli- cations experienced positive growth. For these uses as well, the Central and Eastern Euro- pean processing capacities are being expanded by interna- through 2007. Following a very strong 2006, demand rose by 3.6% in 2007. Western Europe, however, will continue to lose in relative importance – as will North America – due to high- er growth rates in Northeast Asia. Worldwide PVC con- sumption is represented by re- gions in Fig. 1. The European market (incl. CIS nations) for thermoplastic PVC applications has grown at an annual average rate of 4.8 % in the given period from 2004 Polyvinyl Chloride (PVC) PE104381 PVC windows: The two systems modified for impact toughness are S-PVC plus modifiers or graft copolymers (photo: AgPU) Western Europe Other Asia Africa/ Middle East Northeast Asia Central Europe and CIS South America North America 17 % 5% 19 % 5% 38 % 9% 7% PVC Consumption Fig. 1. Worldwide PVC consumption divided according to regions (status 2007: 35.3 million t) (source: CMAI) © Kunststoffe Translated from Kunststoffe 10/2008, pp. 92–97 COMMODITY PLASTICS TREND REPORT --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- © 2008 Carl Hanser Verlag, Munich, Germany www.kunststoffe-international.com/archive Not for use in internet or intranet sites. Not for electronic distribution.

Transcript of COMMODITY PLASTICS TREND REPORT - …...specialty field of PVC pastes. In 2006, PKN Orlen, a mem-ber...

Page 1: COMMODITY PLASTICS TREND REPORT - …...specialty field of PVC pastes. In 2006, PKN Orlen, a mem-ber of the Anwil Group, as-sumed majority ownership of the Czech PVC manufacturer Spolana.The

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V

Kunststoffe international 10/2008

Evergreen. Worldwide demand for PVC

is rising, thanks to its wide variety of

potential applications and excellent

engineering characteristics. Vinyl 2010 –

the European PVC industry’s commit-

ment to sustainability – is also on the

road to success.

JÜRGEN BOTHUR

ROBERT HOHENADEL

OLIVER MIEDEN

Worldwide demand forPVC reached 35.3million t in 2007 –

5.1% higher than the year be-fore. Since 2004, it has beenclimbing at an average annu-al rate of 5.2%. This world-wide growth was driven main-ly by continuing strong de-mand in Asia, especially inChina. However, strong Chi-nese demand has been ac-companied by the rapidly ex-panding construction of localPVC production sites. In 2007,China already accounted forover 30% of the world’s PVCproduction capacity of ap-prox. 41 million t.

At a total demand of 7.8million t of PVC in 2007 – andan average annual growth rateof 4.9% from 2004 through

2007 – Europe (incl. the CISnations) consumes approx.22% of the worldwide quanti-ty of PVC and is thus the thirdlargest regional market afterAmerica and Northeast Asia.The decisive force behind thishas been strong demand inCentral and Eastern Europe.Russia’s consumption alonegrew by double-digits. Buteven in the mature WesternEuropean market, an averageannual growth of 2.8% couldbe chalked up from 2004

through 2007. Rigid profilesremain the largest market seg-ment at 2.4 million t. Here, too,Central and Easter Europe arebehind the increased demand.Meanwhile, almost all signifi-cant profile extruders are pres-ent in this region with theirown production sites. But themarket continues to be sup-plied by the parent companiesin Western Europe. The pipeand fittings segment is devel-oping steadily with over 1.7million t annually.

The European market (incl.CIS nations) for paste PVC de-veloped well with an averageannual growth rate of 5.5% inthe given period from 2004through 2007. Here, too, Cen-tral and Eastern Europe pro-vided the growing power, sup-plemented by strong demandin Western Europe. Especiallyflooring and wallpaper appli-cations experienced positivegrowth. For these uses as well,the Central and Eastern Euro-pean processing capacities arebeing expanded by interna-

through 2007.Following a verystrong 2006, demand rose by3.6% in 2007.Western Europe,however, will continue to losein relative importance – as willNorth America – due to high-er growth rates in NortheastAsia. Worldwide PVC con-sumption is represented by re-gions in Fig. 1.

The European market (incl.CIS nations) for thermoplasticPVC applications has grown atan annual average rate of 4.8%in the given period from 2004

Polyvinyl Chloride (PVC)

� PE104381

PVC windows: Thetwo systems modifiedfor impact toughness

are S-PVC plusmodifiers or graft

copolymers (photo: AgPU)

Western EuropeOther Asia

Africa/Middle East

NortheastAsia

Central Europeand CIS

South America

North America

17%

5%

19 %

5%38 %

9 %7 %

PVC Consumption

Fig. 1. Worldwide PVC consumption divided according to regions (status 2007: 35.3 million t) (source: CMAI)

© Kunststoffe

Translated from Kunststoffe 10/2008,pp. 92–97

COMMOD I T Y PL A S T I C S TREND REPORT ■

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© Carl Hanser Verlag, Munich Kunststoffe international 10/2008

tionally active companies andnew local producers. Fig. 2shows the PVC sites in Europe(incl. CIS nations) as of 2007.

PVC producers in the Euro-pean market continue to con-solidate. In the last three years,we again saw mergers, take-overs and plant closings. Thelargest acquisition was Ker-ling’s (formerly Hydro Poly-mers) buyout by the BritishIneos Group, announced asearly as mid-2007 and com-pleted in early 2008 followingtedious scrutiny by the Euro-pean antitrust authorities. In-eos was thus able to expandsits position as a global playerand Europe’s largest manufac-turer (Fig. 3) while further so-lidifying its European marketleadership in the area of stan-dard PVC products. In mid-2007, Vinnolit bought Ineos’sexisting E-PVC business, thusstrengthening its role as theworld market leader in thespecialty field of PVC pastes.In 2006, PKN Orlen, a mem-ber of the Anwil Group, as-sumed majority ownership ofthe Czech PVC manufacturerSpolana. The PVC productionin Porvoo, Finland, with a ca-pacity of 100 kt that was soldby Dynea Chemicals toFinnplast in 2005, was closeddown in 2007.

Further measures alreadyannounced include:

■ The closing of Aiscondel’s(Ercros) PVC production inMonzón, Spain, and re-placement of its S-PVC ca-pacity by a new line in Tar-ragona,

■ Expansion of capacity atSolvin’s Jemeppe site to75 kt of S-PVC by 2009,

■ Construction of plants toproduce 300 kt of S-PVCand 30 kt of E-PVC by 2010in Kstovo, Russia, byRusvinyl, a joint venture es-tablished by Solvin andSibur,

■ Construction of a 300 kilo-ton S-PVC plant by Karpat-naftochim (Lukoil) in Ka-lush, Ukraine, by 2010.

Process Developments

Around 90% of the world’sPVC production capacity isbased on the suspension meth-

od. In this discontinuous op-eration process, vinyl chloride,water, surfactants and organicperoxides as initiators arecharge in the reactor and sub-sequently polymerized by stir-ring under pressure. The heatresulting from polymerizationis dissipated via the cooled re-actor wall and drawn off via re-flux condensers. Technologicaland receptive further develop-ments are motivated by theneed to increase reactor effi-ciency while maintaining theproduct quality demanded byPVC processors. Modern poly-merization equipment cannow provide reactor volumeswith an annual output of up to750 t of PVC/m3. This is duein part to large volume reactorperipheries that minimizenon-reaction times as well asto improved surfactants andinitiator dispersions, enablingshorter charging and heatingtimes, e.g. by hot-water charg-ing. By using the inside-cooledreactor developed by Vinnolit,heat transfer to the coolingjacket can be nearly doubledover that of conventional reac-tors. A method for dosing ini-tiators, newly developed byAkzo and Vinnolit, makes itpossible for the first time tocontrol reaction speed duringsuspension polymerization,thus enabling optimum uti-lization of maximum coolingpower from the very start of re-action. Last, but not least: theuse of effective media to sup-press power-reducing residueson interior reactor walls.

Paste PVC is manufacturedaccording to either the emul-

sion process (discontinuous orcontinuous) or the micro-sus-pension process (discontinu-ous). These processes are prac-ticed in variously modifiedforms; combinations of bothmethods are quite common. Inmost cases, the attempt isthereby made to influence spe-cific processing characteristicssuch as paste viscosity and rhe-ology. Further new develop-ments in the paste sector fallprecisely into this area of rhe-ological effects. For example, ithas been reported that PVChas been additivized withnanoparticles to adjust it forstrongly pseudoplastic flow be-havior. A patent has also beenapplied for an improved ho-mogenizing system for the mi-cro-suspension method bygenerating bimodal particledistributions, resulting in low-er paste viscosity.Ever since thetensides used in all polymer-ization methods – besides sta-bilizing aqueous polymer dis-persions – have also played amajor role in plastisol process-ing and final product proper-ties, PVC R&D departmentsare focusing their know-howon the “intelligent”use of theseraw materials.

Products and Applications

Profiles, Pipes, Cables: Theprofiles branch has developedinto the largest Europeanmarket segment in recentyears. Here we see compactand foamed products mainlyin the construction industry,but also in the furniture, au-

Others 5.0 %

Cables 10.6 %

Coatings 3.5 %

Soft films 6.3 %

Pipes/fittings 22.2 %

Hard films/Plates9.8 %

Floor 5.8 %

Bottles 1.7 %

Hoses/softprofiles 4.3 %

Profiles, hard 30.7 %

PVC Applications

Fig. 2. PVC areasof use in Europe,including CIS na-tions in 2007(source: CMAI)

© Kunststoffe

Quantities

Ineos Vinyls/UK (incl. Kerling/NO)

Solvin/BE

Arkema/FR

Vinnolit/DE

LVM/BE

Shin-Etsu/JP

Anwil/PO (incl. Spolana/CZ)

Vestolit/DE

Borsodchem/HU

Oltchim

0 500 1,000 kt 2,000

Production Capacities

Fig. 3. Production capacities of the largest European PVC manufacturers in 2007 (source: Vinnolit)

© Kunststoffe

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tomotive as well as electro in-dustry.

In hard extrusion, suspen-sion PVC is utilized in a widerange of K-values from 57 to68. To improve processing be-havior, thermoplastic emulsionPVC with a K value of 70 is usedspecifically for compact pro-files. Its advantageous meltingbehavior improves output per-formance here as well as surfacequality and antistatic proper-ties in the final product.

Window profiles are by farand away the largest area of ap-plication in the profiles branch(Title photo). The PVC gradesused here lie in a K value rangeof 65 to 68. To modify them forimpact toughness, blends areused consisting of PVC andimpact-tough modifiers madefrom acrylate PMMA, acrylatePVC and CPE. The advantagesof such blends for the proces-sor lie in their flexibility for thechoice of products and thequantity required. A specialPVC graft polymer is availableas an alternative. Here vinylchloride is grafted onto a fine-grain acrylate dispersion rightduring PVC polymerization.

The properties of PVC thatmake it such an excellent ex-trusion material are beingmore and more appreciated inthe production of wood-poly-mer composites. Typical for-mulae based on PVC exhibit 40to 60% wood content. Highfilling levels of wood placestrong demands on processing

technology and materials. LowK values, around 57 to 60, areadvantageous for obtaining therapid plastication desired, aswell as good distribution andlinking by the wood to the PVCmatrix.

In soft extrusion of profiles,hoses and cables, blends areused that combine highlyporous PVC grades in the Kvalue range of 65 to 70 withsofteners. To improve me-chanical strength and heat re-sistance, higher molecularPVC can be used with K values> 70. Especially when specialelastic memory requirementsare involved, very high molec-ular products are used with Kvalues > 90 and above all alsoPVC graft polymers with ap-prox. 50% acrylate content.Window seals for use in the in-terior and exterior are an im-portant application area forthese special products. In ad-dition to their advantages interms of thermoplastic pro-cessability, seals produced withthese raw materials are weath-ering resistant, can be dyed anycolor and can also be welded tothe frame profile in a co-ex-trusion or PCE (post-coextru-sion) process.

Pipes: The second largestapplication segment is Pipesfor waste water and drainage,as well as for supplying drink-ing water. For non-pressurepipes, foam extrusion is gain-ing in importance mainly forreasons of cost. This manufac-

values from 65 to 70 areprocessed in the main. Tech-nological advances now makeblown plastic wraps possiblethat are less than 10 µm thick.Roofing membranes, leak-proof films and container lin-ings place high requirementson weathering stability, lowmigration tendency and chem-icals resistance. That is why useis often made of inwardly soft-ened graft polymers madefrom vinyl chloride on ethyl-ene vinyl acetate and acrylate.These special polymers en-hance melting viscosity duringprocessing so that soft filmscan be calendered to thick-nesses over 1mm in a singleworking step.

PVC for paste processing:Approximately 6% of theworldwide market for PVC isaccounted for by pastes and ex-tender types for paste process-ing that can be consideredspecial products. In WesternEurope alone, approx. 130 dif-ferent products are offered.Impetus for continuing prod-uct development comes fromsuccessively changing marketrequirements, e.g. the trend to-ward higher coating speeds orminimization of VOC emis-sions.

The largest application areaby far is PVC floor coverings.The flexibility of the pasteprocess enables fast adaptationof design and styling to fash-ion trends and further devel-opment of technical function-

turing process uses low molec-ular PVC grades with K valuesbetween 57 and 60. In pipes ex-posed to extreme mechanicalloads, pipes are used that haveK values of 65 to 68. Materialconsumption can be reducedwithout hurting performanceby extruding double walledcorrugated pipe and with mo-lecular orientation in the pipe.

Films: In the market seg-ment for PVC hard films wefind widely varied portfolios ofdifferent PVC grades: BulkPVC is also used in addition tosuspension PVC with K valuesbetween 57 and 60. To increasethe output from calenders –modern high-capacity calen-ders achieve outputs as high as5 t/h even for hard films – aswell as for film finishing,main-ly copolymers are additivizedwith vinyl acetate as well asemulsion PVC with K valuesaround 60. Vinyl chloride-vinyl acetate copolymers areconducive for thermoformingpackaging and pharmaceuticalfilms and render multi-layerand credit card films easier andbetter to laminate (Fig. 4).Emulsions PVC is conducive toplastication as well as to goodmelt homogeneity and sup-ports antistatic properties.Special finely pulverized andhigh molecular PVC productsserve as anti-blocking agents orto mat-finish and pattern filmsurfaces.

In the field of PVC softfilms, porous products with K

Fig. 4. Credit card: vinyl chloride-vinyl acetate copolymers improvelaminate performance in laminated and credit card films (photo: ECVM)

Fig. 5. Floor: For the cover layer of PVC floor coverings, highly transparentgrades are preferred with low water absorption (photo: ECVM)

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alities. Perfected printing tech-nology can imitate any surface;modern processing methodsmake it possible to create re-markable optical effects. In ad-dition to fashion qualities,technical characteristics suchas impact sound insulation,elasticity and skid resistanceare important. The selection ofsuitable paste products de-pends on the function layer ofmulti-layered floor coverings.Whereas highly transparenttypes with low water absorp-tion in the 70 to 80 range of Kvalues are required for the cov-er layer, products with K val-ues between 65 and 70 arefound in the foam layers(Fig. 5). Bright foam colorsand uniform fine cell struc-tures are important character-istics as well as sharply con-toured inhibitor embossing oncushioned vinyl floor cover-ings. Products for base layershave K values around 70 andare selected for very low vis-cosity with high filler toler-ance.

Super-fine paste types en-sure that very fine patterns canbe screen-printed with PVCplastisols, thus enabling theproduction of extremely so-phisticated wallpapers. Re-cently, hot embossing hasgained in importance for rep-resenting very sharply definedsurface textures. In every in-stance, paste products are indemand that have fine anduniform foam expansion, aswell as a high degree of white-ness and low paste viscosity.The K values of high polymergrades lie in a narrow range be-tween 67 and 70.

European artificial leatherproduction has been shrinkingdue to increased imports of ar-tificial leather membrane.Consequently, European pro-ducers are attempting to sup-ply the market with superiorquality materials. One exam-ple is the inclusion of micros-pheres to achieve suede-likesurfaces. The number of PVCgrades applied in the artificialleather segment is very high,since products are required

that range from very hard tovery soft settings and fromcompact to foamed (Fig. 6).

One specialty is the use ofartificial leather in vehicle inte-riors. Prerequisites for usingPVC successfully in foam filmsfor vehicles include low foggingand excellent thermoformabil-ity. The few grades for thisavailable on the market have Kvalues > 72. In recent years, thisapplication has undergone arenaissance, since PVC foamfilms have cost vs.performanceadvantages compared with al-ternative materials.

In the field of technical coat-ings, e.g. for tarp materials,paste products with low waterabsorption and good light sta-bility are the preferred materi-als to use. Further develop-ments in thermal and UV sta-bilizers is increasing the serv-ice life of soft PVC for outdoorapplications. This runs paral-lel with a trend toward textileconstruction using PVC coat-ed polyester membranes.

Newly developed pasteproducts used as underbodyprotection and joint sealant inthe automotive field show im-proved performance both inadhesion to cataphoretic dippainted sheet metal and in me-chanical properties at low glaz-ing temperatures.

Paste PVC is also represent-ed in the field of light-weightconstruction. Special foamingprocesses enable the produc-tion of very light-weight, yet

recycling to almost 150,000 tin 2007,

■ Publication of Environ-mental Product Declara-tions, EPD, for S-PVC andpaste PVC (2007),

■ Discontinued use of cadmi-um stabilizers in the EU-15(2001), EU-25 (2006) andEU-27 (2007),

■ On-schedule achievementof interim goals for reduc-ing lead stabilizers (com-plete phaseout planned by2015),

■ Conclusion and publicationof risk evaluations for(various) phthalates (2006/2007) and for lead stabiliz-ers (2005),

■ Independent monitoring ofthe ECVM Charta for lowemission manufacturing ofS-PVC (2002) and pastePVC (2005) as well as

■ Phasing out the use ofbisphenol A in the manu-facture of PVC raw materi-al by ECVM member com-panies (2001).

Since 2004, Vinyl 2010 hasbeen recognized by the Secre-tariat of the United NationsCommission for SustainableDevelopment as a “Partnershipfor Sustainable Development”.Today, this voluntary commit-ment has gained modelcharacter: Vinyl 2010’s greatsuccess – in terms of trans-parency, goal achievement andenvironmental performance –as well as the political accept-ance for the material PVClinked to it – has inspired nu-merous other initiatives in thePVC branch, in Australia,Canada, Japan, Brazil, SouthAfrica and Korea. ■

THE AUTHORS

JÜRGEN BOTHUR is Business Ana-lyst in the Commercial Department ofVinnolit GmbH & Co. KG in Ismaning,Germany.

DR. ROBERT HOHENADEl is theChief of Innovation Management in thesame company.

DR. OLIVER MIEDEN is Managerfor Environmental Affairs & CorporateCommunications at Vinnolit GmbH &Co. KG; [email protected].

very rigid components for in-stallation in airplanes, boats orwind power plants.

Softeners: The substitutionof the softener DEHP, thedominant one for decades, bylonger chained phthalates(DINP and DIDP) continuesits advance.Thus DEHP’s mar-ket segment was only 20% in2006, and that of DINP andDIDP was 61%. Phthalate-freealternatives, such as citrates orDINCH have made inroads. Inthe market for special soften-ers, trimellitates as well aspolyadipates merit mentionfor low migration applications.

PVC and theEnvironment

The European PVC industry –raw materials manufacturers,additive suppliers and PVCprocessors – have meanwhilepresented the 8th progress re-port on their voluntary com-mitment to sustainable devel-opment. Gradually they aregetting on target. In 2000, thebranch committed itself to a 10year program – Vinyl 2010 –with quantitative goals, a time-card and independent annualmonitoring to minimize theenvironmental effects from themanufacturing, processing,consumption and disposal ofPVC. The most important suc-cesses is the last eight yearshave been:■ A considerable increase in

post-consumer PVC waste

Fig. 6. Artificial leather: Further developed thermal and UV stabilizers have increased the service life of PVC artificial leather in hard outdooruse (photo: Vinnolit)

© Carl Hanser Verlag, Munich Kunststoffe international 10/200854

■ TREND REPORT COMMOD I T Y PL A S T I C S

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