Plastics Materials and Resins

Contenidos

• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• Products. Plastics manufacturing involves a three-step process: (1) synthesizing the polymer, usually from petrochemicals or coal-related processes (i.e., coal gasification); (2) compounding, which integrated additives; and (3) shaping, an activity not included in this industry classification. The physical properties of plastic can be altered at different stages of the production process, but the most versatile stage is during compounding. For example, additives, such as colorants, flame retardants, heat or light stabilizers, or lubricants may be added to the resin to achieve desired characteristics. The end result of the compounding process is resin, usually in the form of pellets, flakes, granules, powder, or liquid
• Competition and Markets. Partly because of technological requirements, the global plastics industry is dominated by major industrial powers. As a whole, North America, Japan, and Western Europe accounted for more than 80 percent of the industry output and around 60 percent of plastics use in the 1990s, though by 2005 growth in developing Asian markets's plastics industries outpaced that in North America and Europe. The output of plastics was roughly equal to domestic consumption in most nations, although industrialized countries tended to be net exporters. The United States, Japan, and Germany together consumed and produced slightly more than 50 percent of this output in the 1990s; the remainder of the market was widely distributed. Aside from technical expertise related to the production process, manufacturers in those countries benefited from immediate access to most of the companies that purchased and processed plastics and resins
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• WORKFORCE.
• RESEARCH AND TECHNOLOGY.
• INDUSTRY LEADERS.
• BASF Aktiengesellschaft. German-based BASF AG is the world's largest chemical company, edging out other top companies such as DuPont and Bayer AG. Although BASF was incorporated in 1952, its history dates back to the early 1860s. The company was formerly part of the mammoth German cartel IG Farben, which dominated the world chemical industry during the 1930s (see also Industrial Organic Chemicals.) The company rebounded after the war to become one of the world's major plastics and chemical producers
• Bayer AG. Top-ranked competitor to BASF, Bayer AG is best known for its aspirin, but the company's production includes a wide variety of chemical-based goods. Bayer, like BASF, was spun off from IG Farben after World War II. Bayer competed closely with BASF throughout the 1990s and posted revenues of US$40.3 billion in 2004. The company's diverse portfolio includes basic and fine chemicals, plastic colorants and inorganic pigments, and specialty chemicals for the paper and textile industries. Among the other industries served by Bayer Chemicals are wood, metal, leather, paints, plastics, energy, and electronics. It maintains operations in 50 countries worldwide. In 2005, Bayer spun off its separate chemicals subgroup, completely converting the subgroup into a publicly traded company operating under the new name of Lanxess. In June 2004, Asia Intelligence Wire issued several reports about Bayer Chemicals' takeover of production for all the biocidal formulations based on thiabendazole and dibromodicyanobutane that it acquired from Ondeo Nalco at the end of 2002. Bayer invested some US$500,000 in the expansion of production facilities in Wellford, South Carolina, to service the global market
• The Dow Chemical Company. The largest chemical company in the United States and the second-largest in the world, Dow Chemical is a leading manufacturer of engineering plastics, polyurethanes, and polyethylene resins for packaging, fibers, and films. The company includes six operating segments: Performance Plastics, Performance Chemicals, Agricultural Sciences, Plastics, Chemicals, and its smallest division, Hydrocarbons and Energy. In 2005, Dow had 165 manufacturing facilities in 37 countries, and employed about 43,000 people. Total sales in 2004 reached a record US$40.2 billion, with the plastics segment accounting for US$10 billion. Much of this growth was due to price increases, which grew by an average 24 percent in this segment between 2003 and 2004, while volume grew by an average of only 5 percent. Sales grew 32 percent for polyethylene, 34 percent for polypropylene, and 44 percent for polystyrene. Dow expected continued high demand for plastics in 2005, leading to higher prices and substantial sales increases that year. As of December 2004, the company owned 560 U.S. patents for plastics
• Eastman Chemical Company. Eastman Chemical Company was separated in the 1980s from the Eastman Kodak Company, which traced its roots back to the late 1800s. Eastman Kodak was a pioneer in the global plastics industry and was credited with a number of innovations and improvements. In 2004, Eastman Chemical generated sales of about US$6.5 billion and employed a workforce of 12,000. The company manufactures a broad line of plastics materials for industrial customers specializing in high-performance plastics and related chemical products. The company's Voridian division produces polymers used to manufacture products. Voridian is the world's largest manufacturer of polyethlene terephthalate (PET). PET is used in packaging for food and pharmaceutical products. In May 2004 the U.S. International Trade Commission ruled that there is a reasonable indication that the US domestic PET industry is being damaged by subsidized imports from Indonesia, India, Thailand, and Taiwan. The investigation was launched after complaints by DAK Americas, Nan Ya Plastics, Wellman, and Voridian
• MAJOR COUNTRIES IN THE IDUSTRY.
• United States. The United States was the leading producer of plastics materials and resins in the mid-1990s, and production and sales continued to grow into the 2000s. The economic slump after 2001 contributed to relatively flat volumes and sales through 2003, but according to data posted by the American Plastics Council, output of resins increased by 8.1 percent in 2004, reaching 115.1 billion pounds, while sales and captive use grew by 6.9 percent, the highest rate of growth since 1996. The United States accounted for more than 50 percent of global production and consumption following World War II, but its dominance waned as Western European and Japanese competitors gained a foothold during the mid- to late 1990s. The United States continues to trade as a net exporter. Among other advantages, producers in the United States benefit from extensive experience in the field, a strong technology base, and immediate access to the largest plastics market in the world
• Japan. At the beginning of the 2000s Japan ranked second in the industry with about 15 percent of global production. Most plastics in Japan, as in other industrialized nations, are produced as side businesses by large, diversified chemical and petroleum concerns. Japan enjoyed steady output gains during the 1980s as domestic demand for plastics surged. Japan's broader recession in the 1990s was intensified for the plastics industry by proliferating competition from low-cost producers in South Korea, Taiwan, and China. Although production fell in the early 1990s, it rebounded in the mid-1990s. Increased domestic consumption and exports fueled the recovery. In the long term, Japanese producers sought to take advantage of increased regional demand for high-margin, high-performance resins and materials; some have also opted to transfer production of low-margin products to lower-wage economies
• GermanyWith approximately 10 percent of the global plastics market at the beginning of the 2000s, Germany was the industry's third-largest producer, with sales totaling US$58 billion in 2000. An industry pioneer, Germany continued to play a prominent technological role in the 1990s and early 2000s, investing heavily in research and development. Nevertheless, Germany's plastic materials and resins market shrank by 4.7 percent between 2002 and 2003, reaching an output of 13.9 million tons. Other technical plastics remained the largest market for plastics materials and resins, and industry analysts expected this sector to grow by about 1.9 percent through 2008. Other European countries were the primary market by far for Germany's plastic materials and resins sales, with Europe accounting for about 70 percent of exports and 80 percent of imports by volume. Euromonitor expected the German plastic materials and resins market to grow in volume by 6.3 percent by 2008
• FURTHER READING.

SIC 2821

NAICS 325211

Global plastics makers manufacture various synthetic resins and plastics that other industries process into sheets, rods, film, and other products. Related industries include plastic products, synthetic rubber, and man-made fibers.

INDUSTRY SNAPSHOT

Synthetic plastics were pioneered in Europe and the United States during the late nineteenth century and were produced commercially by the early 1900s. The industry expanded rapidly with the development of improved plastic materials. The United States assumed global industry dominance following World War II and continued to lead the production of plastics in the early 2000s. However, its share of the global market fell after the 1950s as manufacturers in both industrialized and developing nations boosted output. Plastics output is traditionally about equal to domestic consumption. Plastics and resins constituted a significant portion of the patents issued in the overall chemical industry.

World plastic production ballooned from 63.5 million metric tons in 1982 to more than 150 million in 1998...