Nigel JonesTechnical Manager

Australian Vinyls

Wesfarmers Chemicals,Energy & FertilisersAustralian Vinyls

Global vs Local PVC Markets

Current Market Situation

Market DevelopmentsGrowth Products

Emerging Trends

Summary

Australian Vinyls was formed in 1997 and has been owned by Wesfarmers since 2007

Australia’s only PVC manufacturer until production ceased early in 2016

Australian Vinyls is the largest supplier of PVC to the Australian market, offering a full service to customers, including technical support

Strategic relationship with FPC since 2002

Other businesses of Australian Vinyls are Specialty Products, Caustic Soda and ModWoodTM

43%

17%

17%

8%15%

Pipes & Fittings

Profiles & Tubes

Film & Sheet

Wire & Cable

All Others

Consumption = 41.8Mt

Source: IHS

77%

8%4% 5% 6%

Pipes & Fittings

Profiles & Tubes

Film & Sheet

Wire & Cable

All Others

Consumption = 186kt

Source: Australian Vinyls

Success of PVC Pipes in Australia

Australia’s missing markets

Film & Sheet

ProfilesSiding

Roofline

Windows

150,000

160,000

170,000

180,000

190,000

200,000

210,000

220,000

230,000

240,000

250,000

Australian PVC Market SizeTonnes per year - Rolling 12 months basis

Permanent formworkSignificant growth over past decade

Expect strong growth to continue, more options available

Photos courtesy of Dincel Construction Systems

Photos courtesy of AFS Walling Systems

Permanent formworkSignificant growth over past decade

Windows and doorsDevelopment of ICPLocal production of profile

FencingMarket acceptance and growth potential in domestic market

Decking??

PVC has some advantages in composite/synthetic decking compared to traditional PE based WPC

Fire resistanceFeel (less plasticky)Harder surface

However…Solid Wood/PVC is stronger and stiffer than WPC but ~30% heavierWeight reduced by either foaming or profiling the board

Decking Physical Properties

Product PVC Foam PVC Profile ModWood

Modulus of Elasticity (MOE)(MPa)

1520 1550 5995

Modulus of Rupture (MOR)(MPa)

27 19 42

Deflection at 1.8kN Load (mm)

11.5 8.1 4.5

Based on 450mm spanBoard widths 137 – 140mmData courtesy of ModWood Technologies

0

10

20

30

40

50

60

70

80

90

2010 2011 2012 2013 2014 2015

WPC

PVC

Source: Principia

Significant changes have occurred with key raw materials

StabilisersPlasticisersImpact Modifiers

PVC has a great advantage over other polymers –versatility in properties due to additives

These have all helped PVC’s competitive position from both performance and environmental perspectives

Building for sustainability and resilience

PVC products for architectural profiles

Building facades and screeningLightweightNo specific structural requirements (cf. decking)Low flammability

Wood/PVC compositesFoamed wood/PVC profilesResysta (PVC/Rice Husk Composite)

Photo courtesy of Resysta

Seawall Bulkheads

Vineyard Posts

Photo courtesy of Westech

PVC’s AdvantagesVersatility cf other building materials

There are growth prospectsBuilding productsWater infrastructure

Environmental recognitionGBCA Recognition – BEP PVCOngoing challenge

Wesfarmers Chemicals,Energy & FertilisersAustralian Vinyls