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European GRP industry records ‘slight improvement’
rp4710pgs10_15.qxd
29/10/2003
NORTH AMERICAN-based resin supplier AOC has announced that it is discontinuing operations at its facility in Garbagnate, Italy, after only a few months. It blames significant over-capacity in the European unsaturated polyester resin market, combined with volatile raw material costs, for this move. Commenting on the decision to close down the Italian plant, AOC president and CEO Randy A. Weghorst said: "Unusual and unexpected costs contributed to profit margins well below expected returns. Higher expenses than anticipated prevented any opportunity for a successful venture. It is best we discontinue operations to avoid further losses." Weghorst also stated that, although disappointed with its initial experience in Europe, the company still plans to build on the foundation and relationships established in the last few years and its long-term commitment to be a global supplier has not been diminished, only delayed. AOC, with headquarters in Collierville, Tennessee, has production facilities in the USA and Canada, with supply in Mexico, UK and Thailand. • AOC acquired the Garbagnate resin plant from Bayer last November as part of a strategy to grow its business globally (see Reinforced Plastics, May 2003, pages 16-20). Its entry into the European market earlier this year was greeted with disapproval by European resin firms which thought that the market could not support another supplier. AOC; tel: +1-901-854-2800; website: www.aoc-resins.com. REINFORCEDplastics
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European GRP industry records ‘slight improvement’
AOC shuts down Italian plant
10
14:53
THE FEARED return of a slump in European glass reinforced plastic (GRP) production in 2002 failed to materialise, reported Dr. Uwe Bültjer, managing director of German association AVK-TV at the 6th International AVK-TV Conference on 7-8 October in BadenBaden. In fact, an increase of 0.8% was seen overall – mainly a result of high demand for GRP pipes and a slight increase in sheet moulding compound (SMC) production. Stagnation in European car production weakened the GRP market. In 2002 a 6.8% drop in output of heavy trucks and 1% for cars was reported. But, because of the increasing number of automotive components made of reinforced plastic, SMC production rose 1.6%. Reinforced thermoplastics saw strong growth, particularly long fibre reinforced thermoplastics, which have seen an average annual growth of 40% for seven years and in 2002 reached approximately the same level as glass mat thermoplastics (GMT). In the near future, the automotive industry expects to see an annual growth of 10% in fibre reinforced thermoplastics. The transport sector accounted for 32.5% of entire European GRP production in 2002, up from 30% in 2001. The majority of GRP products in Europe are still produced by hand lay-up and spray-up processes. Ship construction is the largest sector in terms of volume and also the fastest-growing. Manufacturers of wind power plants have reported impressive growth rates in the past, but 2002 was the first year in which they managed to
November 2003
Other 4.2% Transportation 32.5% Sports/Leisure 11.7%
E+E 11.6%
Construction 33.9%
Transport: cars, commercial vehicles (buses, agricultural machines etc), motorbikes, aviation (excluding leisure), boats and trains (excluding leisure) E+E: electrical and electronic applications (household appliances, battery boxes, switch elements, aerials etc) Construction: building industry, wind turbine blades, pipes, tanks, transport containers Sports/leisure: vehicles (boats, surfboards, caravans, yachts etc), sports equipment (skis, golf clubs, fishing rods etc) Other: military parts (excluding cars/ships/planes), furniture, safety helmets etc.
GRP production in Europe by market segment in 2002. (Source: AVK-TV.)
achieve a level comparable to that of the ship-building market. But despite ship construction and wind power plants, the total volume of GRP processed by open moulding fell by 1.5%. A 11.6% increase seen in GRP parts produced in closed moulding processes is a result of the transition from open to closed moulding. The tank and pipe sector experienced growth as municipalities are once again investing in sewers and GRP tanks and pipelines are seeing increasing use because of their high corrosion resistance. The pultrusion market was hit by the lack of any follow-up contracts with the rail and telecomunications industries. The production figures for the first six months of 2003 reveal that a drop in production of less than 1% is to be expected this year. The upturn originally predicted for 2003 is now not expected until the first
quarter of 2004. The lack of any recovery in the automotive and construction markets has taken its toll on GRP production and as a result the AVK-TV predicts that the production volume will remain unchanged. Mass production of a series of new SMC and LFT automotive parts commenced in the third quarter of 2003 and this provided some good news, but only the pipe sector has come out with positive production figures – a ‘boom’ triggered by years of pent-up demand. The production of wind turbine blades, which last year propped up GRP production in the field of hand lay-up and RTM, is showing much less growth in 2003, particularly as there are no large orders for offshore structures yet. More epoxy resins and less unsaturated polyester resins are being used in this sector. AVK-TV; website: www.avktv.de.
29/10/2003
NORTH AMERICAN-based resin supplier AOC has announced that it is discontinuing operations at its facility in Garbagnate, Italy, after only a few months. It blames significant over-capacity in the European unsaturated polyester resin market, combined with volatile raw material costs, for this move. Commenting on the decision to close down the Italian plant, AOC president and CEO Randy A. Weghorst said: "Unusual and unexpected costs contributed to profit margins well below expected returns. Higher expenses than anticipated prevented any opportunity for a successful venture. It is best we discontinue operations to avoid further losses." Weghorst also stated that, although disappointed with its initial experience in Europe, the company still plans to build on the foundation and relationships established in the last few years and its long-term commitment to be a global supplier has not been diminished, only delayed. AOC, with headquarters in Collierville, Tennessee, has production facilities in the USA and Canada, with supply in Mexico, UK and Thailand. • AOC acquired the Garbagnate resin plant from Bayer last November as part of a strategy to grow its business globally (see Reinforced Plastics, May 2003, pages 16-20). Its entry into the European market earlier this year was greeted with disapproval by European resin firms which thought that the market could not support another supplier. AOC; tel: +1-901-854-2800; website: www.aoc-resins.com. REINFORCEDplastics
Page 10
European GRP industry records ‘slight improvement’
AOC shuts down Italian plant
10
14:53
THE FEARED return of a slump in European glass reinforced plastic (GRP) production in 2002 failed to materialise, reported Dr. Uwe Bültjer, managing director of German association AVK-TV at the 6th International AVK-TV Conference on 7-8 October in BadenBaden. In fact, an increase of 0.8% was seen overall – mainly a result of high demand for GRP pipes and a slight increase in sheet moulding compound (SMC) production. Stagnation in European car production weakened the GRP market. In 2002 a 6.8% drop in output of heavy trucks and 1% for cars was reported. But, because of the increasing number of automotive components made of reinforced plastic, SMC production rose 1.6%. Reinforced thermoplastics saw strong growth, particularly long fibre reinforced thermoplastics, which have seen an average annual growth of 40% for seven years and in 2002 reached approximately the same level as glass mat thermoplastics (GMT). In the near future, the automotive industry expects to see an annual growth of 10% in fibre reinforced thermoplastics. The transport sector accounted for 32.5% of entire European GRP production in 2002, up from 30% in 2001. The majority of GRP products in Europe are still produced by hand lay-up and spray-up processes. Ship construction is the largest sector in terms of volume and also the fastest-growing. Manufacturers of wind power plants have reported impressive growth rates in the past, but 2002 was the first year in which they managed to
November 2003
Other 4.2% Transportation 32.5% Sports/Leisure 11.7%
E+E 11.6%
Construction 33.9%
Transport: cars, commercial vehicles (buses, agricultural machines etc), motorbikes, aviation (excluding leisure), boats and trains (excluding leisure) E+E: electrical and electronic applications (household appliances, battery boxes, switch elements, aerials etc) Construction: building industry, wind turbine blades, pipes, tanks, transport containers Sports/leisure: vehicles (boats, surfboards, caravans, yachts etc), sports equipment (skis, golf clubs, fishing rods etc) Other: military parts (excluding cars/ships/planes), furniture, safety helmets etc.
GRP production in Europe by market segment in 2002. (Source: AVK-TV.)
achieve a level comparable to that of the ship-building market. But despite ship construction and wind power plants, the total volume of GRP processed by open moulding fell by 1.5%. A 11.6% increase seen in GRP parts produced in closed moulding processes is a result of the transition from open to closed moulding. The tank and pipe sector experienced growth as municipalities are once again investing in sewers and GRP tanks and pipelines are seeing increasing use because of their high corrosion resistance. The pultrusion market was hit by the lack of any follow-up contracts with the rail and telecomunications industries. The production figures for the first six months of 2003 reveal that a drop in production of less than 1% is to be expected this year. The upturn originally predicted for 2003 is now not expected until the first
quarter of 2004. The lack of any recovery in the automotive and construction markets has taken its toll on GRP production and as a result the AVK-TV predicts that the production volume will remain unchanged. Mass production of a series of new SMC and LFT automotive parts commenced in the third quarter of 2003 and this provided some good news, but only the pipe sector has come out with positive production figures – a ‘boom’ triggered by years of pent-up demand. The production of wind turbine blades, which last year propped up GRP production in the field of hand lay-up and RTM, is showing much less growth in 2003, particularly as there are no large orders for offshore structures yet. More epoxy resins and less unsaturated polyester resins are being used in this sector. AVK-TV; website: www.avktv.de.