European Masterbatch Industry 22-03-2012
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Moderate growth expected in coming years / Manufacturers focus on Moderate growth expected in coming years / Manufacturers focus on Moderate growth expected in coming years / Manufacturers focus on Moderate growth expected in coming years / Manufacturers focus on realignment and geographic expansion / Colorants and specialty products play realignment and geographic expansion / Colorants and specialty products play realignment and geographic expansion / Colorants and specialty products play realignment and geographic expansion / Colorants and specialty products play a large role / AMI report on top 50 players a large role / AMI report on top 50 players a large role / AMI report on top 50 players a large role / AMI report on top 50 players Although the medium-term prospects for Europe’s masterbatch industry are not exactly exciting, the market is nevertheless expected to grow at a modest 2% per year in the near future. Europe’s masterbatch consumption rose by an average 2% each year in the period from 2005-2010, reaching an overall market value of EUR 2.9 bn in 2010. In volume terms, eastern Europe and Russia are expected to see above average consumption growth of about 2.5% a year, shoring up demand development for the entire continent. Given these prospects, European masterbatch consumption is set to rise from its present 900,000 t to about 1m t by 2015, the latest report by British market researcher Applied Market Information Applied Market Information Applied Market Information Applied Market Information (AMI, Bristol; www.amiplastics.com) has found. Aside from overall market data and forecasts, “Corporate performance and ownership among masterbatch producers – A review of Europe's 50 largest players” also profiles Europe’s 50 leading masterbatch producers, indicating key financial data, output figures as well as individual production portfolio. Contrary to Asia, where masterbatch demand is set to see the world’s highest growth rates amid China’s rapid economic development (see also Plasteurope.com of 07.04.2010), Europe’s masterbatch industry is more mature. Following a dramatic alignment as a result of the 2008/2009 financial crisis, at a time when European producers were already grappling with lower growth rates, the situation has meanwhile calmed down, AMI says. With no more room for consolidations, few players have entered the European masterbatch scene in recent years and the M&A activities of existing producers have also abated. The market researcher says this development is also reflected in its investigation of the continent’s top 50 players. There has been little change in the company landscape compared to its previous European masterbatch report, published in 2007, AMI says. One of the new trends, however, is the rise in investments by US companies, particularly in eastern Europe.
Transcript of European Masterbatch Industry 22-03-2012
Moderate growth expected in coming years / Manufacturers focus on Moderate growth expected in coming years / Manufacturers focus on Moderate growth expected in coming years / Manufacturers focus on Moderate growth expected in coming years / Manufacturers focus on realignment and geographic expansion / Colorants and specialty products play realignment and geographic expansion / Colorants and specialty products play realignment and geographic expansion / Colorants and specialty products play realignment and geographic expansion / Colorants and specialty products play a large role / AMI report on top 50 playersa large role / AMI report on top 50 playersa large role / AMI report on top 50 playersa large role / AMI report on top 50 players
Although the medium-term prospects for Europe’s masterbatch industry are not exactly exciting, the market is nevertheless expected to grow at a modest 2% per year in the near future. Europe’s masterbatch consumption rose by an average 2% each year in the period from 2005-2010, reaching an overall market value of EUR 2.9 bn in 2010. In volume terms, eastern Europe and Russia are expected to see above average consumption growth of about 2.5% a year, shoring up demand development for the entire continent. Given these prospects, European masterbatch consumption is set to rise from its present 900,000 t to about 1m t by 2015, the latest report by British market researcher Applied Market InformationApplied Market InformationApplied Market InformationApplied Market Information (AMI, Bristol; www.amiplastics.com) has found. Aside from overall market data and forecasts, “Corporate performance and ownership among masterbatch producers – A review of Europe's 50 largest players” also profiles Europe’s 50 leading masterbatch producers, indicating key financial data, output figures as well as individual production portfolio.
Contrary to Asia, where masterbatch demand is set to see the world’s highest growth rates amid China’s rapid economic development (see also Plasteurope.com of 07.04.2010), Europe’s masterbatch industry is more mature. Following a dramatic alignment as a result of the 2008/2009 financial crisis, at a time when European producers were already grappling with lower growth rates, the situation has meanwhile calmed down, AMI says. With no more room for consolidations, few players have entered the European masterbatch scene in recent years and the M&A activities of existing producers have also abated. The market researcher says this development is also reflected in its investigation of the continent’s top 50 players. There has been little change in the company landscape compared to its previous European masterbatch report, published in 2007, AMI says. One of the new trends, however, is the rise in investments by US companies, particularly in eastern Europe.
That is not to say, however, that the global masterbatch market has not experienced its fair share of turbulence over the past few years, as a result of which many of the companies listed in AMI’s report have significantly altered both their market and product focus. Several leading players have significantly curtailed their European activities, for example, a development often accompanied by site closures. Others have tried to encourage long-term growth by enlarging their product portfolio and/or entering the new and larger markets in eastern Europe or further afield. The economic uncertainty of the past few years has also resulted in significant financial realignments, as some European masterbatch producers have seen their margins contract to the point of threatening their very existence, while others seized the opportunities presented by just-in-time smaller deliveries to improve both margins and profitability.
Colour masterbatches deliver most valueColour masterbatches deliver most valueColour masterbatches deliver most valueColour masterbatches deliver most value
In its study of Europe’s thermoplastic masterbatch market, AMI differentiates among black, white, colour and additive masterbatches. The latter two are available either as resin, paste or powder. With an overall output of about 1m t, Europe’s masterbatch market is equally divided among these four categories in volume terms, AMI says, although in terms of value, colour masterbatches alone account for 40% of the total market value, while the black alternatives account for the smallest market share.
AMI’s latest report shows that market leaders A. SchulmanA. SchulmanA. SchulmanA. Schulman (Europe: Kerpen-Sindorf / Germany; www.aschulman.com) and AmpaceAmpaceAmpaceAmpacet (Europe: Windhof / Luxembourg; www.ampacet.com), for instance, have significantly enhanced their portfolio in the past few years, especially with regard to specialty colour masterbatches. Further solidifying its European colour masterbatch business, A. Schulman in early February announced its acquisition of Vita GroupVita GroupVita GroupVita Group’s French colour masterbatch producer ElianElianElianElian (Oyonnax; www.elian-britishvita.com) – see Plasteurope.com of 02.02.2012. According to company estimates, the purchase would make it France’s third-largest colour masterbatch producer. Other companies, including Israel’s TosafTosafTosafTosaf (Afula; www.tosaf.com) or Plastika KritisPlastika KritisPlastika KritisPlastika Kritis (Iraklion / Greece; www.plastikakritis.com) have focused on expanding their sales activities in new markets. Tosaf’s portfolio, for example, includes the entire masterbatch spectrum, from colorants to additives, flame retardants and UV-/light stabilisers. In addition to the production site at company headquarters in Israel, Tosaf also operates plants in Germany, the UK, The Netherlands, Ukraine and Turkey. Greece’s Plastika Kritis, by contrast, has specialised in colour masterbatches and additives for film applications. The Iraklion-based group has production plants in Greece, Poland, Romania and Russia and also operates a Turkish subsidiary, SenkromaSenkromaSenkromaSenkroma (Istanbul; www.senkroma.com.tr). The black masterbatch market, which AMI calls truly European, underwent a number of changes in the wake of the global financial crisis. Leading US producer CabotCabotCabotCabot (Boston, Massachussets; www.cabot-corp.com), for instance, significantly restructured its European activities, including the closure of production sites in the UK and Italy (see Plasteurope.com of 03.02.2009 and of 28.10.2010), choosing to focus its activities on the growth markets in the Middle East and Asia instead. As several larger players withdrew from Europe, AMI says, new opportunities arose for the independent sector, including British market researchers HubronHubronHubronHubron (Manchester; www.hubron.com) and Polyplast MüllerPolyplast MüllerPolyplast MüllerPolyplast Müller (PPM, Straelen / Germany; www.polyplast.com). Hubron’s goal is to extend its global distribution network from its HQ in Manchester, thereby significantly raising its export activities. Germany’s PPM is also active internationally, working together with North American masterbatch supplier ColortechColortechColortechColortech in both Canada and the US. Faced with an ongoing tight titanium dioxide market, white masterbatch producers continue to feel the pressure of rising raw material prices. It is against this backdrop that AMI predicts significant structural changes in this sector. Leading European white masterbatch producers are A. Schulman and Ampacet. Europe’s additive sector is particularly heterogeneous, not least because of the huge product variety in this field. According to AMI’s data, leading producers like A. Schulman and Ampacet were not the only players able to expand their activities in the past few years. Several smaller companies turning out specialty grades were also relatively successful. They include UltrabatchUltrabatchUltrabatchUltrabatch (Milan / Italy; www.ultrabatch.com), ArgusArgusArgusArgus (Büren / Germany; www.argus-additive.com) and Wells PlasticsWells PlasticsWells PlasticsWells Plastics (Stone / UK; www.wellsplastics.com) – all companies
that were able to expand their market presence by specializing on flame retardants or antibacterial and
photodegradable additives. Amid the difficult economic climate and the euro crisis, AMI predicts that most masterbatch producers will continue to focus on realignment in the near future. Another ongoing trend is the investment in eastern Europe. Attesting to the region’s importance, for the first time in the series’ history, AMI’s latest report also includes Russian and Ukrainian masterbatch producers among the European top 50. For more information, see “Corporate performance and ownership among masterbatch producers – A review of Europe's 50 largest players", 3rd edition, AMI 2012, Details: www.amiplastics.com Contact: Regine Futter, Tel: +44 117 9249-442, email: [email protected]
23.03.2012
