new added value auto interior materials and process ... 0706.pdf · -against a market basket(u.s....
TRANSCRIPT
![Page 1: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/1.jpg)
1
NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS TECHNOLOGIES…IMPLICATIONS FOR ASIA
SUPPLIERSBY: ROGER K. YOUNG AND ROBERT ELLER
PREPARED FOR: PLASTICS IN AUTOMOTIVE APPLICATIONS 2006JULY 5 – 6, 2006Rea/mydox/papers/bangkok 0706
PRESENTED BY:Roger YoungVice President-AsiaRobert Eller Associates,IncPh: 64 21 725 [email protected]
![Page 2: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/2.jpg)
2
HIGHLIGHTS• INTRA-TPE AND INTERMATERIALS COMPETITION
• NEW SUPER-TPV TECHNOLOGIES
• IMPLICATIONS OF DEMAND SHIFT FROM WEST TOEAST
• INDUSTRY STRUCTURE CHANGES
• CURRENT AND POTENTIAL ROLE OF CHINA IN THEGLOBAL TPE MARKETPLACE
• DRIVERS FOR TPE DEMAND GROWTH IN ASIA
![Page 3: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/3.jpg)
3
PRESENTATION BASIS
REA MULTICLIENT STUDIES:
• TPE II IN EUROPE/N.AMERICA
• TPEs IN CHINA
• AUTO INTERIOR SOFT TRIM
• AUTOMOTIVE NONWOVENS
![Page 4: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/4.jpg)
4
OPERATING HYPOTHESES• GLOBAL TPE DEMAND IS GROWING.
• TPE PROPERTIES RANGE INCREASING.
• PROCESS TECHNOLOGIES OPEN NEW APPLICATIONS.
• TPE PENETRATION INTO RUBBER APPLICATIONS POISED TO PROVIDE SUBSTANTIAL TPE DEMANDINCREASES.
• GLOBAL ECONOMIC PRESSURES RESHAPINGMARKET AND PATHS TO MARKET.
• SEBS AND TPV CHALLENGED BY: - PLASTOMERS & PVC IN LOW END MARKETS- TPU IN HIGH END MARKETS
![Page 5: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/5.jpg)
5
Specialty Thermoplastic Elastomers . . . Markets, Economics,
Intermaterials Competition, and Industry Structure in China
ENGINEERINGTPEs AND
SUPER-TPVs
METALLOCENEPLASTOMERS/ELASTOMERS
THERMOSETRUBBERS
PVCCOMPOUNDS
TPO SEBS
TPUs
Prospectus for a Multiclient AnalysisJanuary 2005
TPVs
![Page 6: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/6.jpg)
6
RENEWEDINTEREST FOR
DAMPINGPROPERTIES
NEW DISPERSEDELASTOMER
PHASES,BROADENED
MATRIX RESINCANDIDATES
NEWALLOYS (TPU,ACRYLIC, POs)
FOR LOWTEMP. PERF.
THE TPEs -- NEW FAMILY MEMBERS/BROADENED PERFORMANCE ENVELOPE
TPE FAMILIES
OLEFINIC STYRENIC SUPER-TPVs PVC ENGINEERING TPEs
TPO TPV
NANO-COMPOSITES,
COATED FABRICS,SHIFTING GLOBAL
AUTO SPECS
FOAMS,2-SHOTCROSS-LINKED
HYDRO-GENATED
(SEBS, SEPS)
ISOPRENE-BASED
MIDBLOCKS
NEWSBCTPVs
SILICONE
ACRYLATES
OTHER ALLPVCTPEs
PVCALLOYS
TPU COPA
COPE OTHER
p-TPV (PARTIALCROSSLINKED)
f-TPV (FULLYCROSSLINKED)
BROADENEDAPPLICATIONRANGE FOR
p-TPVs
-BROADER USE OFMETALLO ELASTOMERS
-NEW FOAM TECHNOLOGIES-IMPROVED ADHESION TO
METAL/TEXTILES-INCREASED SOFTNESS W/
REDUCED OIL CONTENTSOURCE: ROBERT ELLER ASSOCIATES, INC., 2005
![Page 7: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/7.jpg)
7
NEW TPE COMPETITORS, TECHNOLOGIES, AND TARGETS
TPEs
OLEFINIC(o-TPEs)
STYRENIC(SBCs) SUPER-TPVs PVC
TPEs E-TPEs
TPO TPV HYDROGENATED(SEBS, SEPS)
ISOPRENE-BASEDMIDBLOCKS
NEWSBCTPVs
SILICONE
ACRYLATES
OTHER
TPU
COPE
COPA
OTHERS
p-TPV (PARTIALCROSSLINKED)
f-TPV (FULLYCROSSLINKED)
SOURCE: ROBERT ELLER ASSOCIATES, INC., 2005
NANO-TPOs
LGF-PPs
NFCs
DAMPINGPROPERTIES
FOAMS,2-SHOT,SEALS
-BROADER USE OFMETALLO ELASTOMERS-IMPROVED ADHESION
-INCREASED SOFTNESS-IMPROVED FOAM
TECHNOLOGY
BROADENEDAPPLICATION
RANGE -- SKINS,AIRBAG DOORS
![Page 8: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/8.jpg)
8
NEW TPE FAMILIES• ACRYLIC, SILICONE, FLUOROPOLYMER BASED
SUPER TPV DRIVING FORCES-UNDER HOOD TEMP INCREASE-NEW FUEL EMISSIONS REG’S-DYNAMIC SEAL PERFORMANCE-COST SAVINGS
• SBC-BASED TPVs IN WHICH SBC IS CROSSLINKED TO IMPROVE HEAT AND CHEMICAL RESISTANCE AND COMPRESSION SET PROPERTIES
• SOFT TPUs AND SEBS/TPU ALLOYS
• NANO-TPOs AND TPVs
![Page 9: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/9.jpg)
9
SUPER-TPVs COMPETING IN THE AUTOMOTIVE SECTOR
DUPONTCOPEETHYLENE ACRYLATE (AEM)
E-TPV
TEKNOR APEXPPHYDROGENATED SBC (H-SBC)
UNIPRENE XL
OPTATECH (NJOP)PP, OTHERSACRYLIC RUBBERPACREL
FREUDENBERG-NOK
FLUOROPOLYMERFLUOROELASTOMERFLUOROPRENE
ZEONPP, PA, POLYESTERPOLYACRYLATE (ACM)
ZEOTHERM
WACKERSEVERALSILICONEGENIOMER
DOW CORNINGPA, TPU, PPSILICONETPSiV
SUPPLIERMATRIX RESIN(S)ELASTOMER TYPEGRADE NAME
![Page 10: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/10.jpg)
10
H 250 (482)
OIL RESISTANCE/HEAT RESISTANCE OF TPEs AND THERMOSET RUBBERS
TYPE C (1)
G 225 (437)
F 200 (382)
E 175 (347)
D 150 (332)
C 125 (257)
B 100 (212)
A 70 (158)
HEA
T R
ESIS
TAN
CE
CLA
SS
CLASS NO. REQ.A
140B
120C
100D
80E
60F
40G
20H
10K
% SWELL IN #3 OILOIL RESISTANCE
EPDM(P)
METALLOPLASTOMERS
IIR(S)
SEBS
NR
CR
CSM
VQM
ACSIUM
FVQM
ACM
EAM
KALREZ (R)
FKM
COPE
ECO
ALCRYN
M-ACN NBRTPVs
L-ACN NBR
H-ACN NBR
GEOLAST
NOTESFKM = VITON (R)
FVQM - FLUOROSILICONESCR = CHLOROPRENEACM = POLYACRYLATEVQM = SILICONEEAM = VAMAC (R)
IIR = BUTYLNR = NATURAL RUBBERECO = EPICHLORHYDRINCSM = CHLOROSULFONATED PEH-ACN = HIGH NITRILEFA = THIOKOL(S) = SULFUR CURE(P) = PEROXIDE CURE(R) = RESIN CURE
SBC TARGET ZONE
FA
IIR(R)
EPDM(S)
SBS
O-TPV TARGET ZONE
LOW VALUE OIL RESIST.TARGET ZONE
EPDM TARGET ZONE
s-TPV TARGET ZONE
SOURCE: ROBERT ELLER ASSOCIATES, INC.; TPE MULTICLIENT, 2005
![Page 11: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/11.jpg)
11
PATH-TO-MARKET SHIFT FOR TPE COMPOUNDS(A)
ESTABLISHED PATH:
RAW MATERIALS
INDEPENDENTCOMPOUNDER
FABRICATORCUSTOMER
CUSTOMER
NEW PATH:
RAW MATERIALS
TPE CONCENTRATEPRODUCER
TPE CONCENTRATE
SPECIALTYCOMPOUNDER
CAPTIVEFABRICATOR
COMPOUNDER
SPECIALTY TPECOMPOUND
FABRICATORCUSTOMERS
FABRICATED PARTS
PROPRIETARYTPE COMPOUND
CAPTIVEFABRICATION
FABRICATED PARTS(D)
BODYSEALS
AUTOINTERIOR
SKINS
BELT-ING
CUSTOMER
NOTES:(A) STARTING WITH TPVs, EXTENDING TO TPO, POSSIBLY SEBS-TYPE TPEs(B) E.G., FIRE RETARDANT, CONDUCTIVE FILLERS(C) E.G., POLYPROPYLENE, EXTENDING TO ENGINEERING PLASTICS(D) EXAMPLE FABRICATED PARTS SECTORS
MATRIX RESIN(C)
SPECIALTY ADDITIVE(B)
PROPRIETARY ADDITIVE
![Page 12: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/12.jpg)
12
POLYMER TECHNOLOGY, INFORMATION TECHNOLOGY MACROECONOMIC INFLUENCES ON TARGET TPEs
TPE TECHNOLOGIES:
-RESIN-COMP'DG.-FABRICATION-TECHNOLOGY PROLIFERATION
-BROADENED PRODUCT ENVELOPE-LOWER SYSTEMS COSTS-INDUSTRY STRUCTURE SHIFT
END USER MARKET, MACROECONOMIC TRENDS:
-MFG. SHIFT TO LOWER COST COUNTRIES (ASIA, E.E., ETC.)-ENTRY OF NEW COUNTRIES INTO GLOBAL MKT. ECONOMY-ENLARGEMENT OF GLOBAL CONSUMER CLASS (3-->6BN)-EMERGENCE OF NEW WORKER CLASS (+1.5BN)-SLOWED POPULATION GROWTH IN WEST-RELATIVELY STAGNANT/SLOWED GROWTH IN WESTERN ECONOMY-SEVERE DOWNWARD OEM PRICE PRESSURES-DEMAND SHIFT TO NEWLY INDUSTRIALIZED COUNTRIES-DEMAND DRIVEN RAW MAT'L. PRICE INCREASES
RUBBER SECTOR:
-SLOW INNOVATION IN POLYMER TECHNOLOGY FABRICATION TECHNOLOGY-VERY LIMITED INVESTMENT-LOW R/D LEVELS
GLOBALCOMPUTER AND
INFO. MGT.TECHNOLOGY
CONVERGENCE
ENTRY OFNEWLY
INDUSTRIALIZEDCOUNTRIES
INTO GLOBALMKT. ECONOMY
-UPWARD SECU- LARIZATION-SHIFT OF POLI- TICAL POWER
GLOBAL MARKET STRUCTURE/MACROECONOMIC CHANGES:
-GLOBAL HORIZONTAL COLLABORATION REPLACING VERTICAL CHAIN OF COMMAND & MKT. STRUCTURE
-SUPPLY CHAIN RESTRUCTURE
-GLOBAL PERF. STANDARDS
-MFG. BASE SHIFT (EASTWARD)
-EMERGENCE OF NEW, LOCALLY CONTROLLED OEM MFG.
-SHIFT IN ROLE OF SALES/MKTG.
-CONT'D. OEM GLOBAL MKT. CONSOLIDATION?(b)
-OUTWARD FLOW OF PROFITS FROM NEWLY INDUSTRIALIZED COUNTRIES TOWARD WESTERN INVESMENT
-INCREASED TERRORISM
-SUPPLY CHAIN MANIPULATION BY MAJOR GLOBAL OEMs
-SHARP INCREASE IN RUBBER MKT. PENETRATION BY TPEs
-TPE DEMAND SHIFT EASTWARD
-SLOW GROWTH OF WESTERN TPE MARKETS
-TREND TOWARD HIGHER VALUE TPEs IN WESTERN MARKETS
-TPE SUPPLY CHAIN CONSOL- IDATION
-TPE INDUSTRY STRUCTURE SHIFT
-EMERGENCE OF NEW, LOCALLY CONTROLLED RESIN AND TPE COMPOUND PRODUCERS(a)
-NET GLOBAL TPE DEMAND INCREASE
-SHIFT TOWARD NEW TPE TECHNOLOGIES
TPE EFFECTS:
NOTES: (a)A NEW PARALLEL SUPPLY CHAIN CHALLENGING THE POSITION OF ESTABLISHED WESTERN TPE SUPPLIERS(b)PARTIALLY OFFSET BY EMERGENCE OF NEW, LOCAL COMPETITION IN NEWLY INDUSTRIALIZED REGIONS
![Page 13: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/13.jpg)
13
THE ECONOMIC WAR IS OVER?• MANUFACTURING FOR MANY TPE END PRODUCT SECTORS HAVE
ALREADY SHIFTED FROM WEST TO EAST• YUAN REVALUATION:
-TOKEN GESTURE?-AGAINST A MARKET BASKET(U.S. DOLLAR EQUALLY WEIGHTED WITH OTHER CHINESE TRADING PARTNER CURRENCIES)-U.S. DOLLAR POWER WEAKENED-SUBSTANTIAL ASIAN COST ADVANTAGE WILL CONTINUE
• CHINESE U.S. BOND INVESTMENT SLOWS U.S. RETALIATION POT’L• ASIAN TPE MARKET SIZES DWARF U.S. AND EUROPE MARKETS
-MARKET POWER OF 3 BN NEW CONSUMERS-1.5 BN NEW WORKERS
• ASIA PULLING AHEAD IN TECH. EDUCATION LEVEL AND NUMBERS
![Page 14: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/14.jpg)
14
POPULATION LIVING IN EXTREME POVERTY
0
50
100
150
200
250
300
350
400
450
500
1990 2001 2015
NU
MB
ER O
F PE
OPL
E, M
M
CHINA
S. ASIA(b)
SUB SAHARANAFRICA
![Page 15: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/15.jpg)
15
CHINA'S SHARE OF GLOBAL RAW MATERIALS CONSUMPTION
0% 10% 20% 30% 40% 50%
CEMENT
COTTON
RICE
COAL
CRUDE STEEL
ALUMINUM
COPPER
WHEAT
OIL
![Page 16: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/16.jpg)
16
SHARE OF WORLDWIDE MANUFACTURER VALUE-ADDED
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1982 1994 2004
% O
F W
OR
LD V
ALU
E-A
DD
ED
OTHERKOREAFRANCEGERMANYCHINAJAPANUS
![Page 17: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/17.jpg)
17
CHINA SHARES OF GLOBAL PRODUCTION
MARKET SECTOR GLOBAL NOTE/TPE IMPORTANCEMARKET SHARE%
CAMERAS 50 GRIPS/SOFT TOUCH/BUTTONSFANS 50 MINORDVD READERS 54 GRIPS/SOFT TOUCH/BUTTONSTELEPHONES 50TV SETS 30MOBILE PHONES 28 GRIPS/SOFT TOUCH/BUTTONSLAPTOP COMPUTERS 12 PADS/BUTTONS/SOFT TOUCHAUTOMOBILE 5
![Page 18: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/18.jpg)
18
INDIA, CHINA, AND USA CELL PHONE USE (MILLIONS OF PEOPLE)
CELLULAR PHONE USERS
0
100
200
300
400
500
600
2003 2004 2005 2006 2007 2008 2009
MM
SU
BSC
RIB
ERS
INDIA CHINA USA
![Page 19: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/19.jpg)
19
WET RAZOR PRODUCTION
213144.9
1,307
278
580
980
21
380
2,460
890
1,440
0
500
1,000
1,500
2,000
2,500
3,000
2000 2005 2010
MM
UN
ITS
PRO
DU
CED
N. AMERICAN PRODUCTONEUROPEAN PRODUCTIONINDIAN PRODUCTIONCHINESE PRODUCTION
![Page 20: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/20.jpg)
20
POWER TOOL PRODUCTION
290
2.0
4.1
2.9
1.9
2.1
4.4
2
11
26
250310
1
10
100
1,000
2000 2005 2010
MM
UN
ITS
PRO
DU
CED
N. AMERICAN PRODUCTONEUROPEAN PRODUCTIONINDIAN PRODUCTIONCHINESE PRODUCTION
![Page 21: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/21.jpg)
21
PARALLEL SUPPLY CHAIN• WESTERN TPE COMPOUNDERS:
-ONLY NOW RESPONDING TO CHINA/INDIA TPE POT’L-WOFEs VS. JV’S (IP PROTECTION)-TARGETING TRANSPLANTS-LIMITED ACCESS TO DOMESTIC MARKETS-CULTURAL BARRIERS-FORCED TO USE LOCAL CHANNEL PARTNERS-BONDED WAREHOUSES WILL MAKE IMPORTING EASIER
• ASIAN DOMESTIC COMPOUNDERS:-TECHNOLOGY TRANSFER BARRIERS NOT SIGNIFICANT-GOVERNMENT SUPPORT-BETTER(FAMILY/CULTURAL) CONNECTIONS-LIMITED ACCESS TO TRANSPLANT CUSTOMERS THUS FAR-PRICES LOWER BUT GAP CLOSING
![Page 22: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/22.jpg)
22
ENTRANCE OF WESTERN TPE SUPPLIERS TPE TYPE
Company SEBS TPO TPV TPU Metallo Eng-TPE
Super TPV
Mfr/ Import Notes
Compounders:Alpha Gary x Import No local AG office/only sales agents (Paeco)Arkema x Import Nylon based thermoplastic elastomerBasell x x ImportBASF x ImportDow x x ImportDow Corning x x x ImportDSM x x x ImportDupont x Import ETP-TPVExxon/Mobil x x Import Includes AESGE x Import Flexible NorylGLS x Import Suzhou Plant opening 2006Merquinsa x ImportMilton Plastics (Kraiburg)
x x x Import
Mitsui x ImportOptatech x x Mfr JV with NJOPNoveon x Mfr Opened plant in 2005Poly One x x x Mfr Mixed capacity multi product plantRTP x x x x Mfr Shared capacity multi product plantSchulman x x x x MfrSK x x x Mfr/ Import Chinese plant only SEBS compounds/shared
capacity plant with PP compoundsSolvay Eng Polymers
x x Import Recently introduced to the Chinese market
SPC (Teknor Apex) x x Import Plant in SingaporeZylog x Import Indian plant location SO
UR
CE
: RO
BE
RT
EL
LE
R A
SSO
CIA
TE
S,IN
C.,
2005
![Page 23: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/23.jpg)
23
EXAMPLE APPLICATIONS FOR RECENTLY DEVELOPED TPEs
VALVE COVER SEALS(a)
DEFLECTORS, SHIELDS(r-TPV OPPORTUNITY)
COATED FABRICS
BODY SIDEMOLDING*
ROCKERPANELS*
NON-CARPETFLOORING
FUEL SYS-TEMS(a)
SEALS(a)
FASCIA*
SKINS*
NOTES:-DOES NOT SHOW BODY/GLAZING SEALS, A CONTINUING GROWTH OPPORTUNITY* INDICATES NANO-TPE OPPORTUNITY(a) s-TPV TARGET(b) NOTE COMPETITION WITH LGF-PP
HIGH PERFORMANCEBODY PLUGS
EXTERIOR PANELS*
MISC. INTERIORSOFT TOUCH
HIGH PERFORMANCE BOOTS/BELLOWS(a)
STEP PADS ANDRUNNING BOARDS*(b)
HOSE*
SOURCE: ROBERT ELLER ASSOCIATES, INC., 2005
![Page 24: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/24.jpg)
24
DRIVING FORCES FOR AUTOMOTIVE TPE GROWTH
• AUTOMOTIVE ACCOUNTS FOR 40-50% OF DEMAND FOR TPEs
• MATERIALS TECHNOLOGY DRIVER
• MAJOR CONCENTRATION OF HIGH VOLUME RUBBER APPLICATIONS
• PRICE REDUCTION PRESSURES HAVE INTENSIFIED AS RESULT
OF GLOBAL SOURCING
• VALUE ADDED OPPORTUNITIES
![Page 25: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/25.jpg)
25
TPE GROWTH/VALUE OPPORTUNITIES FROM SHIFTING AUTOMOTIVE REQUIREMENTS
- NANO-TPOsIMPROVED SCRATCH/MAR RESIST.
- TWO-SHOT MOLDING (LARGE PARTS)SOFT TOUCH
- FAVORS NANO-TPOsZERO-GAP (EXTERIOR/INTERIOR)
- LOW CLTE NANO TPEs- PROCESS CRAFTSMANSHIP SOLUTIONS
IMPROVED FIT/FINISH
- RIGID/FLEXIBLE COMBINATIONS- TPV AND SEBS BODY SEALS- TWO-SHOT MOLDING OF LARGE PARTS
SYSTEMS COST SAVINGS
- FOAMING OF SEBS- RAPID GROWTH OF NANO-TPOs
WEIGHT SAVINGS
TPE GROWTH/VALUE OPPORTUNITYAUTOMOTIVE REQUIREMENT
![Page 26: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/26.jpg)
26
TPE GROWTH/VALUE OPPORTUNITIES FROM SHIFTING AUTOMOTIVE REQUIREMENTS (CONT’D)
- A TPE BENEFIT FOR SEBS- NEGATIVE FOR NANO-TPOs
LOW GLOSS INTERIORS FOR “EUROPEAN LOOK”
-IMPROVED SCRATCH/MAR TPO AND TPV GRADES-IN-MOLD DECORATION-INCREASED CO-EXTRUSION
COATINGS ELIMINATION
-PLASTICIZER REDUCTION-SUBSTITUTE OLEFINS FOR OTHER FAMILIES
ODOR-FREE INTERIORS
- MAJOR DRIVER FOR p-TPV SKINSINVISIBLE AIRBAG DOORS
- STRONG GROWTH FOR SOME s-TPVsOIL RESISTANCE
- GROWTH OF NANO-TPES?- s-TPVs
REDUCED FUEL VAPOR LOSS
TPE GROWTH/VALUE OPPORTUNITYAUTOMOTIVE REQUIREMENT
![Page 27: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/27.jpg)
27
TPE GROWTH/VALUE OPPORTUNITIES FROM SHIFTING AUTOMOTIVE REQUIREMENTS (CONT’D)
-TPEs WITH IMPROVED COLOR CONTROL-LOWER FILLER LEVELS
MOLDED-IN COLOR
-o-TPE ROLE IN ALL-POLYOLEFIN CONSTRUCTIONS-RE-INTRODUCTION OF TPO SLUSH SKINS
RECYCLABILITY
-ON-BOARD FOAM CONSTRUCTIONSENERGY ABSORPTION (OCCUPANT SAFETY)
-ISOPRENE-BASED GRADES-CONTROLLED DENSITY FOAMS-ELIMINATION OF HEAVY LAYER CONSTRUCTIONS
ACOUSTIC PERFORMANCE
-TPEs WITH INTEGRAL FOAM LAYERS-ISOPRENE-BASED GRADES
IMPROVED NOISE, VIBRATION, HARSHNESS CONTROL
TPE GROWTH/VALUE OPPORTUNITYAUTOMOTIVE REQUIREMENT
![Page 28: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/28.jpg)
28
CONCLUSIONSMANUFACTURING/SUPPLY• WESTERN TPE COMPOUNDERS START TO RESPOND
WITH LOCAL MANUFACTURING• PARALLEL TO SUPPLY CHAINS COMPETING• ASIAN DOMESTIC COMPOUNDER ADVANTAGES
GROWTH• STRONG CHINA TPU GROWTH-DRIVEN BY FOOTWEAR,
AUTOMOTIVE AND CONSUMER PRODUCTS• INTRA TPE COMPETITION WILL SHIFT TOWARD SBCs• RUBBER MARKET PENETRATION ACCELERATING:
- BODY/GLAZING SEALS- HOSE AND BELT
• GROWTH WILL BE 12%
![Page 29: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/29.jpg)
29
Manufacturer: Black and DeckerTPE Type: SEBSBond Type: ChemicalManufacturer Location: China
![Page 30: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/30.jpg)
30
Manufacturer: Gillette Product Name: Mach 3, GripTPE Type: SEBS Bond Type: PhysicalManufacturer Location: ChinaNote: Grip and head with different TPEs
Manufacturer: GilletteProduct Name: Venus 3TPE Type: SEBSBond Type: ChemicalManufacturer Location: Poland
![Page 31: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/31.jpg)
31
Manufacturer: P&GProduct Name: PanteneNote: TPEs expensive vs. incumbents. Plastomers entering competition with EVA cap liners
![Page 32: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/32.jpg)
32
Manufacturer: MoenProduct: Faucet Mounting PlateTPE Type: TPVBond Type: PhysicalManufacturer Location: USANote: 2-Shot Nylon-Bonding TPV.
![Page 33: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/33.jpg)
33
Manufacturer: StanleyTPE Type: SEBSBond Type: ChemicalManufacturer Location: ChinaNote: Two color
![Page 34: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/34.jpg)
34
Manufacturer: ValeoTPV Type: TPVManufacturer Location: EuropeNote: Example of boots/bellows and EPDM replacement.
![Page 35: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/35.jpg)
35
EXAMPLE TPV USAGE IN FLEXIBLE PIPE
LAYER LEGEND
-A FLEXBODY – INTERLOCKING METAL CARCASS-B FLEXBARRIER – POLYMER FLUID BARRIER (PVDF)-C FLEXLINER – POLYMER FLUID BARRIER (PVDF)-D FLEXLOK – STEEL HOOP STRENGTH LAYER -G FLEXTENSILE – HELICAL STEEL ARMORS-H FLEXTAPE – POLYMER TAPE LAYER (PP TAPE)-I FLEXSHIELD – EXTRUDED POLYMER LAYER (TPV, DYMANIC ONLY; PE, STATIC ONLY)
SOURCE: WELLSTREAM, ROBERT ELLER ASSOCIATES, INC.
![Page 36: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/36.jpg)
36
Product type:Rear tailgate seal
Note: Sponge/dense EPDM
![Page 37: NEW ADDED VALUE AUTO INTERIOR MATERIALS AND PROCESS ... 0706.pdf · -against a market basket(u.s. dollar equally weighted with other chinese trading partner currencies)-u.s. dollar](https://reader034.vdocument.in/reader034/viewer/2022042319/5f084f867e708231d4216110/html5/thumbnails/37.jpg)
37