AN OVERVIEW OF THE GRP MARKET IN SOUTH AFRICA

A MITCHELL

AFI REINFORCEMENTS DIVISION

- AN OVERVIEW OF THE CRP MARKET IN SOUTH AFRICA -

By: A Mi tchell DIVISIONAL EXECUTIVE OFFICER OF AFI REINFORCEMENTS DIVISION

- AN OVERVIEW OF THE GRP MARKET IN SOUTH AFRICA -

The title of this paper is an overview of the Glass Reinforced Plastics in

the South African market. Comparisons with other cow1try markets on

points of interest pertinent to the South African market will be

highlighted. In addition to this overview certain opportunities e~ist in

the South African market which will also be addressed.

The South African market for glass reinforced plastics has seen some

significant changes in the last few years. These changes will be

mentioned together with other changes which have occurred and in

particular the type of products which are used.

- GROWTH OF THE CRP !'1ARKET IN SOllTH AFRICA ..

Figure I: Illustrates the growth of the Glass Reinforced Plastics market

in South Africa since 1972 and projects the growth through to 1994. As

can be seen the industry has shown a positive growth in real terms of

8.3% until 1989 •

. INDEX 1973 .. 100 350~-------------------------------------------'

300+------------------------1~~----

200 -l-----------I~lIIIIII_lIiI!IIIf-lIiI!IIIf-lIiI!IIIf-lIiI!IIH!IIIt-IIJ-{\\1--l\\l- ... W-"'\'i---------;

1 00 __ _IIII_IIII ...... _IIIII-IIII-IIIIHllHlllf-IIIIIHII-lIIIII--IIIIt--tIIII-

O~~~~~~~~~~~~~~~~~~~~._r_r_IIII~

7374757677787980818283848586878889909192

YEAR

TOTAL SA GRP MARKET

••• /2

- 2 -

This growth is not expected to be maintained over the next four years

unless interest rates come down and the economy improves. However, the

growth rate is expected to be better than the growth rate for the country.

The market

appliances

is broken

(equipment) ,

consumer/recreation.

- MARKET SEGMENTS -

up into construction,

electrical/electronics,

corrosion, transport,

marine, mining and

Figure 2: Illustrates the market segments

TRANS. 29.3%

CONSTR. 32.7%

APP. EQ 6.2%

MINING 2.6%

CON/REC 7.0%

3.0%

In South Africa, glass reinforced plastics are used extensively in the

construcion and transport markets. The construction market accounts for

32% which involves such products as fibreglass sheeting for greenhouses,

industrial lighting in factory roofs and in the domestic area for awnings

and car ports etc. Other products in this market include the

reinforcement of acrylic baths and showers etc. The transport market

includes the PX 123 Fast Freight containers.

SLIDE

• .. /3

- 3 -

C&nopi,,,,ci: fo: bakkies, muffler fibre used in car silencers and then the

more conventional automotive components like bumpers for cars, cab fronts

for trucks and busses. This market has tremendous potential which will be

focused on later.

The corrosion market accounts for 13%. This includes tanks, pipes

extruded sections used mainly in the chemical and agricultural industry.

The appliance industry accounts for 6% of the market. Products which

are commonly found in this market are a variety of parts on stoves,

fridges, washing machines, hair dryers made either from thermoset or

thermoplastic resins (eg handles, switches, trays, etc). This market

offers exceptional opportunities replacing traditional materials like

stainless steel for reinforced plastics.

The electrical

switch boxes,

assemblies.

industry accounts for 5.7% which includes such products as

battery cases, eletric lamp posts and other electronic

The marine industry accounts for 3% of the market. This market includes

all types of boats from canoes, ski boats, pleasure launches, speed boats

to ocean going yachts.

The consumer and recreatian industry accounts for 7% of the market.

Products include various sporting equipment, garden furniture etc.

The mining industry accounts for a very small part of the market, ie 2.6%.

However, the products included in this segment could be included under

construction and corrosion. The reason for separating the mining industry

from the rest is that it has tremendous potential for the future because

of the recent developments made in phenolic resins.

good flame spread properties and minimal release

burning, compared to other resin systems.

Phenolic resins have

of toxic fumes when

A comparison of the South African market sectors with those in the USA and

Brazil show some significant differences.

• •• /4

- 4 -

Figure 3: Illustrates a comparison in market sectors between South Africa,

Brazil and the United States.

TRANSP 29.3

MINING 2.6

CONS/REC 7

MARINE 3.02 ELEO 6.7

APPL 6.2

SOUTH AFRICA CORA 18.2

TRANBP 26.4

ELEC 8.8

USA

oonR UI.'

APPL G.a WAftIHI: 7."

MARINE 19.2

e LlO ....

BRAZIL

aR.WHEELS 6.1 AEROBP 1.'5

QIl,WHfUI7.8

The glass reinforced plastics market in South Africa shows a large

dependency on the construction sector. This sector therefore impacts on

the market significantly when.a slump in the building and construction

industries takes place. The Brazilian market is heavily dependent on the

transport industry.

United States.

The marine market plays a very big roll in the

• •• /5

- 5 -

- PRODUCTS -

Figur~~: ~llustrates the major product groups as % of total sales

CS M 60.2

ROVINGS 25.7

NOTE: All figures are shown 86 percentages (,,)

MFFL 2.7

CS 4.5

The products most commonly used in the South African market are chopped

strand mat, rovings chopped strands, woven ravings, various cloths and to

a very small degree, milled fibre and flake glass.

Chopped strand mat (SLIDE) is used extensively in the South African

market and accounts for 60% of the product mix~

Ravings (SLIDE) account for 26%

chopped strands (SLIDE) for 4.5%

woven ravings (SLIDE) for 6.9% and

Muffler (SLIDE) for 2.7%.

The product mix has changed considerably when compared to 1985 •

••• /6

- 6 -

Figure 5: Comparison of major products groups 1985 vs 1989

CSM 50

ROVINGS 35

1985

NOTE: All figures a.re shown in percentage (%)

CSM eO.2

ROVI N GS 25.7

1989

CS 2.7 MFFL 4.5

There has been a very marked shift from ravings to chopped strand mat •

•.• !7

- 7 -

- MAJOR PRODUCT GROUPS IN RSA COMPARED WITH BRAZIL -

- AS % OF TOTAL SALES -

Figure 6: Compares the product mix with the Brazilian market

CSM 60,2

ROVING 66,2

\({:;~~ MFFL 2,7

CS 4,6

ROVINGS 26,7

SOUTH AFRICA 1989

NOTE: All fIgures shown 88 percentages ('ill)

W/ROV 2,6

BRAZIL 1988

MFFL (5,9

The difference lies in chopped strand mat, rovings and chopped strands.

Rovings are used for spray up operations for panel manufactuse, pultrusion

and filament winding. These processes require capital investment and in

some instances fairly significant capital investment. The processes also

require skill to operate. Chopped strands are converted into bulk

molding compound. This involves special mixing equipment. When the

mixing is complete the BMC produced is used in injection molding machines

or presses. Again capital is required along with skill.

Chopped strand mat is used mainly for hand lay up purposes. The cost of

moulds varies but generally is fairly inexpensive.

In conclusion, the product mix is indicative of a market in South Africa

which is still in the growth stage when compared to Brazil and other

countries.

• •• /8

- 8 -

- PLASTICS -

Figure 7: Compares thermosets with thermoplastics

Thermosets 94.0%

Thermoplastics 6.0%

Thermosets and thermoplastics resins are used in the Glass Reinforced

Plastics market. The thermoset resins constitute by far the largest user

of the two, being approximately 94%. Thermoplastics growth is expected

to increase steadily in the future. The reasons for this are

1) The local content programme for the automotive industry has

changed from mass to volume and this must increase the

plastic content in the vehicles.

2) South Africa's polypropylene plant must also encourage the

use of thermoplastics since polypropylene can be used for

various parts on cars.

• •• /9

- 9 -

COMPARISONS OF PER CAPITA/CONSUMPTION OF LAMINATES,

THERMOSETS AND THERMOPLASTICS

KIGOGRAMS

000 /10

- 10 -

Sweden shows a st~ong position in aero defence due to exports to NATO

countries.

Finland and Sweden show a high consumption in the marine indust~y due to

tradition and due to exports.

USA, Japan and Weste~n Europe lead all other count~ies in construction

sectors.

Japan dominates in the co~rosion resistance sector due to septic tanks.

USA and Canada,in the transport sector, have double the per capita

consumption of Europe and that of Japan even though

automotive production is roughly equivalent.

Japan is high in the appliance business equipment which is to be

expected, but these figures are estimates. This market

offers potential in South Africa.

Finland, Australia and Canada lead in the consumer and recreational

suggest good potential in other countries like Australia

and South Africa.

The wide variations from 4.2 kg per ca~ita in the USA to 0.24 kg in

Mexico reflect numerous factors including level of affluence and

development, mix of industries, effectiveness of missionary market

development role and local fibre glass industry. South African

consumption of laminates per capita rates one of the lowest in the world.

The composite industry world wide amounts to 3 182 100 tons of laminate.

See overhead

••• /11

- 11 -

- WORLD WIDE COMPOSITE INDUSTRY - 1988 -

- (THERMOSET AND THERMOPLASTIC. THOUSANDS OF METRIC TnNS) -

Africa

Australsia

Canada

Europe (excluding UK)

Far East (excluding Japan)

USSR (excluding Eastern Block

countries)

Middle East

Mediterranean countries

Japan

Scandinavia

South America

United Kingdom

USA

25.0

73.2

86.6

831.0

127.1

72.5

19.8

379.2

89.0

60.0

129.0

1189.7

3182.1

Last but not least before moving on to the opportunities in the

automotive industry, an overhead of the materials market maturity curve •

•••• /12

- MATERIALS MARKET MATURITY CURVE-

Commodity plastics

Stainless steel -----,,#"

Superalloys

Speciality metals ~-----,f

Traditional eng plastics ______ 7

High performance eng plastics

Eng. plastics alloys and blends

Fibre optics ______________ 7

Advanced polymer matrix composites _______

J

Advanced metal matrix composites

---::fl Structural

ceramics ----7'

Heavy R & D

Rapid Growth

Growth Maturina

Aluminium --~,...---~

Growth

Copper

Growth Declining

Carbon steel

- 12 -

FUTURE

Future potential in the South African market lies in these industries. They are:

1) Mining

2 ) Appliance

3) Electrical

and 4 ) the Automotive industry

Unfortunately time does not permit covering all opportunities and therefore the

automotive industry has been selected.

- COMPARISON OF LAMINATE/CONSUMPTION PER UNIT

AUTOMOTIVE PRODUCTION

\-----------------------------------------------------------------------------------1 1 AUST-I BRAZILI CANADA 1 JAPAN 1 MEXICO 1 SWEDEN 1 USA

IRALIA I

W.EUROPEI

~----------------:------:-------:-------:------:-------:-------1----- l---------l 1 TRANSPORTATION

IRAW LAMINATE

1 TONS

5952 18840 25500 43900: 4001 2800 12553751 165000

:----------------:------1-------1-------1------:-------1-------:------:---------\ 1 AUTOMOTIVE

I PRODUCTION

1 IN 1000 UNITS

394 967 1934 122711 398 462 116541- 13274

l----------------l------l-------l-------:------J-------l-------l------I---------: ILAMINATE PER

IUNIT KG 15.1 19.5 13.2 3.61 10.1 6.1 21.911 12.4

:----------------l------l-------l-------:------:-------l-------l------:---------I ILAMINATE DEMAND

:IF 2.9 KG PER

:UNIT (SAME AS

1 IN USA)

8634 21190 42380 :2688951 8721 10124 1255375: 290874

:----------------:------:-------:-------1------:-------:-------:------1---------1 1 ADDITIONAL OR

: UNREAL I SED

:LAMINATE DEMAND

2682 2350 16880 :224995: 4721 7324 o 125874

:--------------------------------------------------------------------------------

••• /13

- 13 -

The current levels of glass reinforced plastics components usage represeryts less

than five per cent of the potential if this proven and commercialised applications

are simply extended to all vehicles produced in that market.

The average glass reinforced plastic laminate consumption per unit of the total

automotive production (cars, trucks and buses) by country indicates a range from

21.9 kg per unit in the USA down to an estimated 3.6 kg in Japan. If all countries

were to use only 21.9 kg per unit the potential additional volume in Japan would be

an extra 225 000 tons an increase of 60% of its present total market size. In

South Africa this potential is also great.· Time is also needed to convince

component and assembly manufactures of the advantages of reinforced plastics and to

use them. The suppliers of resins and glass and the converters themselves must

ensure that this happens. To illustrate the success story in Western Europe a list

of components currently being used appears below - followed by a slide show •

••• /14

- 14 -

COMPOSITE COMPONENTS USED IN EUROPEAN MOTOR CARS AND TRUCKS IN 1989

SUSPENSIONS, CHASSIS FRAME COMPONENTS

\ COMPONENT :NO VARIATIONS\% CHANGE PROCESS MOST \ POLYMER MOST \ GLASS ISINCE 1987 COMMONLY USED:COMMONLY USED \ REINFORCING 1

------------:-------------:---------- -------------:--------------:-----------BUMPERS 73 28.8 COMPRESSION/ : UP/PU SMC/MF

RTM ____________ I _____________ I __________ • _____________ I~-------______ 1 ______ -----

BODY PANEL 110 19.3 : COMPRESSION/ UP/PU VARIOUS PARTS RTM

.------------ ------------- ----------:------------- --_ .... _--------- -----------: \ COMPLETE & SMC/ : PARTIAL BODY 9 VARIOUS UP MAT CONT :------------.-------------1----------:------------- --------------1-----------: \DOOR HANDLES: 18 20.0 INJECTION PA CS \------------:-------------:----______ 1 ______ -------.-_____________ : ___________ :

: GRILLS 4 INJECTION : VARIOUS : CS : THERMOPLASTICS:

:------------ -------______ 1 ______ ---- -------------1--------------1-----------\ \ HEADLAMP 'SURROUNDS 34 9.6 INJECTION UP/PA CS & PANELS

-------------1-------------- -----------1 ROOF 18 COMPRESSION 1 UP SMC COMPONENTS /SMC ------------\------------- ----------,-------______ 1 ______ -------- -----------\ SPOILERS 31 3.3 1

1 VARIOUS UP/PU VARIOUS ------______ 1 ______ -------:----------\------------- _________________________ \

TAIL LAMP iHOUSINGS :------------:MISC \EXT. PARTS

6 : INJECTION \ COMPRESSION

-------------i----------i-------------51 (3.7) INJECTION

VARIOUS CS/SCM

--------.--- : PA CS 1

1 -

\------------ -------------i----------I-------------:-------------- -----------\

••• /15

- 15 -

ELECTRICAL SYSTEM COMPONENTS

1----------------------------------------------------------------------------------1 I COMPONENT lNO.VARIATIONS1% CHANGE lPROCESS MOST i POLYMER MOST i GLASS

iSINCE 1987 lCOMMONLY USED iCOMMONLY USED lREINFORCING I l-----------l-------------l-----~-----:--------------l--------------i------------: lorSTRIBUTOR: 5 INJECTION UP/PBT: CS I CAP 1-----------:-------------:-----------:--------------1--------------:------------1 lELEC. CONN i 9 INJECTION PA/PC : CS I PLUGS :-----------:-------------:-----------:--------------1--------------:------------1 lHOOTER ASS : 2 : ' I INJECTION PA I CS I AND PARTS :-----------:-------------1-----------:--------------1--------------:------------1 :MISC. ELEC.: 15 38 INJECTION PA CS 1 PARTS 1 ______ -----:-------------:-----------:-------------- --------------1------------TRANS. : 6 : (100) : INJECTION PA CS PARTS -----------:-------------:-----~-----:-------------- --------------:------------TRUCK AND 1 388 14.7 COMPRESSION UP VARIOUS VAN PARTS -----------:-------------:-----------:-------------- --------------1------------

KEY PA UP CS MF

POLYAMIDE UNSATURATED POLYESTERS CHOPPED STRANDS MILLED FIBRE

ABS - ACRYLONITRILE BUTADIENE-STYRENE SMC - SHEET MOLDING COMPOUND PP - POLYPROPYLENE PU - POLYURETHANE

••• /16

- 16 -

UNDER THE HOOD COMPONENTS

: COMPONENT :NO VARIATIONS % CHANGE :PROCESS MOST : POLYMER MOST SINCE 1987 :COMMONLY USED : COMMONLY USED

: GLASS : : REINFORCING: ____________ : ________________________ 1 ______________ : ________________ : ___________ 1

AIR SYSTEMS : 23 INJECTION PA CS ------------:------------- ----------- --------______ 1 ______ ----------:-----------

BELT COVERS : 8 33.3 INJECTION PA/PP CS ------------\-------------\----------- -------------- ----------______ 1 ______ -----

1 ENGINE COOL.: 10 INJECTION PA/PP CS :FANS & PARTS: :------------:-------------:----------- -------------- ---------------- -----------:FAN SHROUDS: 17 : 41.0 INJECTION PA/PP CS :AND PARTS :------------:-------------:-----------:--------------:----------------\ HEATER : HOUSING : PARTS

& 16

, , 1 I

116.0 INJECTION PA/PP CS

:------------:-------------\-----------:--------------\----------------\-----------1 RADIATOR : 34 : 17.3 INJECTION l PA CS PARTS ------------:-------------:-----------:--------------l----------------l-----------: MOTOR PARTS : 8 : INJECTION/RIM l PA/PU CS ------------:-------------:-----------:--------------:----------------:-----------: MISC. UNDER-: 43 (6.5): VARIOUS PA/PU VARIOUS: HOOD PARTS \ . ------------:-------------:-----------l--------------l----------------\-----------:

PASSENGER COMPARTMENT COMPONENTS

DOOR HANDLES: 18 28.5 INJECTION PA CS ------------\-------------\-----------l--------------:----------------'-----------: INSTRUMENT: 27 INJECTION ABS/PA CS: PANEL PARTS l ------------:------------- -----------:--------------:---------------- -----------: SEATING 22 15.7 INJECTION l PA VARIOUS COMPONENTS ------------:------------- -----------:--------------:---------------- -----------:

\TRIM 15 : COMPRESSION/ : UP VARIOUS : COMPONENTS INJECTION :------------:-------------:-----------:--------------:---------------- -----------: :MISC : : PASSENGER: 41 17.1 INJECTION PA CS :COMP. PARTS: :------------:-------------:-----------:--------------:-----~---------- -----------:

Bibliography:

Thanks to:

SPI Conference and papers

Owens Corning Fiber Glass

AFI Marketing Department

Leonie le Roux Elaine Vels