Asta Eder Composites Consulting asta.eder@wpc-consulting.eu

www.wpc-consulting.eu

Responding to Asian Imports

Wood-Plastic Composites 2011, 8. – 10.11. 2011, Austria Trend Savoyen Hotel, Vienna, Austria

Overview Overview of bio-based composites

Structure of the WPC imports

Structure of the trade involved in imports

Quality and price level of the imports

Marketing strategy

Marketing strategies of the European producers

Product differentiation

Cost leadership

Market segmentation

Wood certification systems

Voluntary certification European quality and eco labels

Ecological assessment

Market size and outlook for bio-based composites

Conclusions

Overview of fiber-reinforced polymers Wood Polymer Composites (WPC)

Synthetic polymer + wood + additives

Non expensive material, usually wood flour acts as a filler

Application: Decking and Siding

Natural Fibre Composites (NFC)

Synthetic polymer + natural fibres(or wood) + additives

Natural fibres are true reinforcements for polymer

Application: Transport

Bio-based Composites

Syntetic polymer + > 20% bio-based reinforcement or filler+ additives

Application: Construction, transport, household goods

Biocomposites

Biopolymer/ Bioplastic + natural fibre/ wood + additives

Application: Packaging

Naturally Reinforced Polymer Composites (NRPC)

Synthetic polymer + wood or natural fibres + additives

Includes both WPC and NFC

Fibre Reinforced Composites (FRC)

Synthetic polymer + rice hull/husk as reinforcement + additives

Application: House construction

Natural Fi l led Polymer (NFP)

Synthetic polymer + natural fillers

Asian WPC imports

Amongst Asian countries China has the largest import volume to Europe. Imports from Japan are stable but on a much lower level.

Chinese WPC industry has grown through exports in the decking application field

Today China’s WPC industry is the second largest in the world after the United States. This development begun after the U.S. companies started the WPC production in China

The decking amounts 80% of the Chinese production volume of 300 000 tpa (in 2010); prospects for the growth of the WPC production are tremendous

Import Structure in Europe

Import houses

Direct imports from DYI-Chains

Outlet stores

Small European companies import WPC decking also along with their own product

DYI-Chains Direct Imports

Outlet Stores

China Import Houses

Quality of the Imports

Quality of the imports has a broad range

Imports Price Range

Prices of the imports have a broad range

Marketing Strategy

What is our targeted customer group?

What type is our competition?

What features are the same as the Asian WPC? Points of parity (PoP)

What is the difference between the Asian WPC? Points of difference (PoD): Also called USP

SWOT Analysis Marketing strategy

Marketing Strategies of the European Producers

Product differentiation

Cost leadership

Market segmentation: Target group environmental concerned customers:

Wood Certification Systems

Voluntary Certification: European Quality and Eco labels

Ecological Assessment

Product differentiation

Used by businesses to achieve and maintain competitive advantage

Can be used if the target customer segment is not price-sensitive

Very wide decking boards, Natur-Form, Novo-tech, 2011

Decking tiles with natural stone Mc Farrland Cascade, 2011

Excepted wood- and wood-aluminum window with improved insulation capabilities with extruwood cap based on WPC

Reduced material and assembly costs for the window

Low-energy window certified by independent Austrian testing institute (MA 39, Vienna) according to relevant national and international standards

Product Differentiation WPC Window Profile

Cost Leadership- From Label Waste to Engineered Composite

+ virgin PP

Decking and siding by UPM ProFi

The 10-UNIT SYSTEM furniture concept is the wood plastic-composite products to emerge from cooperation between furniture manufacturer Artek, architect Shigeru Ban, and UPM-Kymmene.

Market Segmentation: Wood Certification Systems

Forest Stewardship Council (FSC)

The Programme for the Endorsement of Forest Certification (PEFC)

Quality and test regulations for wood polymer materials

Several governments support the certification of sustainably managed forests and will continue to use wood only from certified stands in its procurement measures.

Wood fiber producers have obtained the PEFC

Compounders like Beologic have FSC and PEFC

Market Segmentation: Voluntary Certification

European Quality and Eco labels In addition to WPC standard PrEN 15534-1-4

that will be available as full EN standards in 2012

German quality label (VHI) is in tune with the PrEN standard

CTB WPC Decking standard in France

VTT expert services of developed technical approval ETA 11/0037

Different eco labels are used for example Nordic Ecolabel. The Nordic Ecolabel is eco labelling scheme that evaluates a product's impact on the environment throughout the whole lifecycle (co²).

Market Segmentation: Ecological Assessment

Comparison between WPC and glass fiber reinforced polymer. The impacts will be considered in the following three stages: assembly (raw material extraction, raw material processing, and panel fabrication), use, and end of life. (LCA according to ISO/EN 14040)

Prospects for Bio-based Composites

The global market for bio based composites reached $ 2.1 Billion in 2010 (Brief, 2011), with an annual growth rate of 15% in the past five years. By 2016, the bio-based (natural fiber and wood) composite market is expected to reach $ 3.8 Billion.

Conclusions

The markets of WPC in Europe are growing

The imports as well as the domestic European production will grow

The quality of European marketing strategies and the development of the Chinese economy will influence the European market share of the imports in the future

The European decking buyers’ awareness of ecological facts and quality issues will be crucial for the development of the WPC imports in Europe

Thank you for your attention!