Resin producers are the leading PVC compunders

November 1999

than 20 product segments) has 16 strategic business fields which are run as separate entities in four reporting groups: Health and Nutrition, Specialty Products, Polymers and Intermediates and Performance Materials. Contact: Degussa-Hiils AG, Weissfrauenstrasse 9, D-60287 Frankjiirt-am-Main, Germany: tel: +49-69 218 2055;,fax: +49-69 218 3743

Environmental regulations will drive faster growth for Ca/Zn Anticipating strong growth arising from environmental regulations, Chemson has “considerably increased” its calcium/zinc stabilizer capacity in Europe with the purchase of BASF’s Ca/Zn business. This includes a plant at Arnoldstein, Austria and granulates production at Besigheim, Germany, which will be relocated to the group’s UK site near Newcastle, where a new facility was commissioned in April. Albrecht Seyfi-ied, Chairman of Chemson GmbH (which is a subsidiary of Dynamit Nobel and Metalgesellschafi) said that “increasingly stringent environmental regulations” would produce considerably faster growth for CaIZn stabilizers than the overall market for PVC additives. Contact: Chemson GmbH, Trakehner Strasse 3, D-60487 Frank$urt/Main, Germany; tel: +4969 7165-O;fax: +49-69 7165 2236

British Vita adds more colour to its compounding interests UK compounder British Vita (which has risen rapidly to be included in the ‘Top Ten’ PVC compounders in Europe (see ‘Marketing’) has made another acquisition which gives a new perspective on its strategy. The company is buying, for &16.9 million cash, the French independent colouring specialist, Elian SA. Based in Lyons, Elian recorded sales of El 3 million with profits of L1.1 million in 1998. It will be integrated into Vita’s industrial division, and the purchase brings the group’s spending on acquisitions over the past two

years up to 5200 million.

01999 Elsevier Science

Additives for Polymers

British Vita, for long a traditional part of the latex and polyurethane foam industry, entered thermoplastics compounding as a natural extension of its internal rubber compounding activities, first producing thermoplastic elastomers and then moving into PVC compounding. Acquisition of Doeflex last year gave it a good foothold in polyolefin compounding also. Following the purchase of Silvergate Plastics in the UK, Elian provides a complementary base for technology in colour concentrates in Continental Europe, where Vita has been turning much of its attention recently. Chief Executive Jim Mercer commented that the Elian acquisition (which he described as “the premier French-based colour concentrates producer, in our view”) marks the latest move in a strategy of expanding Vita’s portfolio of high performance polymer-related technologies. Contact: British Vita plc, Oldham Road, Middleton, Manchester M24 2DB, UK; tel: +44161 643 1133;fax: +44-161 653 5411

MARKETING Resin producers are the leading PVC compounders Of the five leading PVC compounders in Europe, four are producers of PVC resin. The largest is Elf Atochem, with an estimated throughput of 262 500 tonnes/year. The other three resin producers are EVC, Solvay and Norsk Hydro, and the single non-integrated compounder is the German firm Begra, which has grown rapidly in the past few years, both by internal development and by acquisition (purchasing the interests of Hiils in 1993 and Vinex in the following year). The latest survey of the PVC compounding business in Europe by Applied Market Information estimates that the industry now involves about 170 companies with product valued at DM 3 billion. It is five years since AMI last studied this sector and there have been some significant changes since then. The latest study also includes the major PVC compounders in Central Europe, reflecting the

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Additivesfor Polymers

growing importance of this region, which currently accounts for about 10% of European compound production. Two Central European compounders now rank in the ‘Top Ten’ compounders. One such change has been the rapid climb of British Vita into the Top Ten companies, with its acquisition of Doeflex Vinyl in 1998 and Hot Blends in 1999, giving the group three thermoplastic compounding operations with a combined capacity of some 100 000 tonnes/year, of which PVC represents about 60%. AMI estimates total European production of PVC compound was more than 1.6 million tonnes in 1998 (excluding the in-house manufacture by the larger PVC processors) - about the same as was produced in 1990. But there have been many changes within this volume. Production in Germany has declined, possibly as a result of the strong environmental opposition to PVC, while the UK has seen a significant increase. Technically, there has been a shift in demand for type of PVC compound. Rigids have been in demand, particularly for window and other profiles, which has helped to compensate for a drop in demand for PVC bottle compounds. This was traditionally the key market for rigid PVC, bolstered by the huge market in France, but with opposition to PVC packaging and competition from PET, the PVC manufacturers accepted that this was a sector which they could not hold. For flexible compounds, the main markets are cables and tubing. Again, PVC has been under pressure in the cable industry too, because of fears of toxic products in the event of fire, but the PVC side has defended its position well, with continuing technical improvements and, apart from some incursion by polyolefins, there has still been little substitution by other materials. Similarly, attempts to replace PVC in medical tubing applications (blood plasma and IVF systems) have not yet borne fruit, largely due to the cost-conscious climate among health authorities. Footwear was once an important market for PVC flexible compounds but this has also declined, due to loss of export markets.

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International trade remains significant, with exports of about 200 000 tonnes of compound, mainly to North Africa and the Middle East. But, with the entry of local producers, this business is likely to decline also in the future, as European PVC comes to terms with the conditions of the next millennium. The ‘Top Ten’ European PVC compounders Company

Head office location

Elf Atochem

France

EVC International

Belgium

Solvay (Benvic)

Belgium

Norsk Hydro

Norway

Begra Kunststoffe

Germany

Saplast

France

British Vita

UK

Polymer-Chemie

Germany

Anwil Zakjlady Azatowe Wloclawak

Poland

Borsodchem

Hungary

Corporate performance and ownership among PVC compounders - a review of Europe’s 50 largest players: (115pp, &35Olc525) Contact: Applied Market Information Ltd, AMI House, 45-47 Stokes Crop, Bristol B31 3Qe UK; tel: +44-117 924 9442; fax: i-44-11 7 989 2128

LEGISLATION UK Government plans for chemicals risk assessment The UK Government has unveiled plans for integrating scientific knowledge into the assessment of risks to human health from chemicals in the environment, workplace and in the home. Outlining the programme, leading Government scientists suggested that practical results might include reduction in animal testing, and lower research costs for companies. The framework, which is designed to exploit breakthroughs expected to flow from develop-

0 1999 Elsevier Science