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INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION-MAKERS
Forecasts for 6 regions & 14 countries
World
Thermoplastic
Elastomers
Study # 2013
Global demand to
increase 6.2% per
year through 2009
Global demand for thermo-
plastic elastomers (TPEs) is
forecast to increase 6.2 per-
cent per year through 2009 to
3.1 million metric tons. Value
gains will expand an even
stronger 7.4 percent per year
to $11.4 billion over the same
period, based on an increasing
number of applications which
require costlier types of TPEs
and high energy prices that
will raise TPE production
costs. In fact, worldwide TPE
production capacity for most
products will need to increase
from current levels in order to
meet market requirements in
2009.
TPEs will continue to find the
majority of their usage as
replacements for natural and
synthetic rubber, as well as
for rigid thermoplastics and
metals. In addition to direct
displacement of competitive
materials, TPEs will continue
to gain new applications in
which they are over-molded
onto rigid plastic or metal
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components to enhance ergo-
nomic or “soft-touch” features
on a wide range of products,
particularly consumer goods.
China to expand
position as global
TPE market leader
Through 2009, China’s TPE
market (the world’s largest
market in metric tons) will
expand and diversify rapidly
based on the country’s
significant positions in the
production of many of the key
products manufactured with
TPE parts and components
(e.g., motor vehicles, house-
wares, appliances, sporting
goods, hand and power tools,
and industrial machinery).
Currently, a large portion of
TPE demand in China is
devoted to the country’s
massive footwear industry.
Nevertheless, with the notable
exception of China, global
TPE sales will remain
concentrated in the developed
markets of the US, Western
Europe and Japan, particu-
larly for higher performance
materials such as copolyester
Freedonia
Industry Studies ■ Custom Research ■ Focus Reports
World TPEs
Demand by
Region, 2009
(3.1 million metric tons)
Asia/Pacific 51%
North America 25%
Western Europe 20%
Other Regions 4%
elastomers (COPEs) and
thermoplastic vulcanizates
(TPVs). Growth prospects
through 2009, however, will
be strongest in developing
countries.
Consumer, sporting
goods markets to
see fastest growth
Motor vehicles will remain
the largest market for TPEs at
the global level. The sustained
solid gains forecast for TPEs
in this market are attributable
to the development of new
products for exterior and in-
terior applications. Though
all major generic types of
TPEs are gaining new appli-
cations in motor vehicles,
TPOs will remain the largest
volume segment as these
materials bolster an already
formidable position in
exterior applications with
rising use in interior applica-
tions, particularly instrument
panels and door skins.
The smaller consumer and
sporting goods sector will
remain the fastest growing
market for TPEs through
2009. Gains will be primarily
attributable to expanding uses
in sporting goods and
personal care goods, where
TPEs will benefit from the
continued displacement of
traditional materials such as
thermoset rubber and thermo-
plastics (particularly PVC).
Study coverage
These and other key findings
are contained in a 332-page
Freedonia study, World
Thermoplastic Elastomers,
available for $5200. Histori-
cal data plus forecasts to 2009
and 2014 are provided for
supply and demand in current
US dollars and metric tons for
6 regions and 14 countries
worldwide. This study also
evaluates company market
shares and profiles 42 global
industry participants.
WORLD INDUSTRY STUDY WITH FORECASTS TO 2009 & 2014
World Thermoplastic Elastomers
TABLE OF CONTENTS/LIST OF TABLES & CHARTS
historical data through 2004 plus forecasts to 2009 and 2014
EXECUTIVE SUMMARY
Summary Table ............................... 3
MARKET ENVIRONMENT
General ....................................................... 4
Global Macroeconomic Environment ........... 6
Table - World GDP Product by Region ... 10
Global Fixed Investment Trends .................10
Table - World Fixed Capital Investment
by Region ........................................... 13
World Population Overview ........................ 13
Table - World Population by Region ....... 14
World Motor Vehicle Overview ................... 15
World Vehicle Production & Assembly ... 15
Table - World Motor Vehicle Production/
Assembly by Region .......................19
World Motor Vehicles in Use .................. 19
Table - World Motor Vehicles
in Use by Region ............................21
Per Capita TPE Demand Versus
Per Capita Gross Domestic Product ......... 21
Chart TPE Demand Per Capita/GDP
Per Capita Relationship, 2004 ............ 23
DEMAND BY MARKET
General ...................................................... 24
Table - World TPE Demand by Market ... 26
Motor Vehicles ............................................ 26
Table - Motor Vehicle Markets ................31
Industrial Products ...................................... 31
Table - Industrial Product Markets ..........33
Footwear ....................................................34
Table - Footwear Markets ......................35
Adhesives, Sealants & Coatings ................36
Table - Adhesive/Sealant/Coating Mkts .. 38
Asphalt & Bitumen Modification .................. 38
Table - Asphalt & Bitumen
Modification Markets ........................... 39
Consumer & Sporting Goods ......................40
Table - Consumer/Sporting Goods Mkts 43
Wire & Cable ..............................................43
Table - Wire & Cable Markets ................45
Medical Products & Equipment .................. 45
Table - Medical Product/Equipment Mkts47
Other Markets ............................................ 48
Table - Other Markets for TPEs .............. 49
* Analysis for each TPE type includes
supply & demand data tables for:
Global demand for type of TPE
Production by Region
Suppliers & Capacity
Demand by Region
Demand by Market
SUPPLY & DEMAND BY TYPE
General ...................................................... 50
Styrenic Block Copolymers ......................... 53
Thermoplastic Polyolefins .......................... 68
Thermoplastic Polyurethanes ..................... 81
Thermoplastic Vulcanizates........................ 91
Copolyester Elastomers ........................... 101
Other Thermoplastic Elastomers .............. 113
* Tables for each region/country give
supply & demand data through 2004
plus forecasts to 2009 & 2014 for:
Thermoplastic Elastomer Demand
Thermoplastic Elastomer Production
... plus key macroeconomic indicators
SUPPLY & DEMAND
BY REGION & COUNTRY
General .................................................... 121
Table - World TPE Supply & Demand
by Region ......................................... 123
North America .......................................... 123
TPE Market Share by Company ........... 127
United States ........................................ 127
Canada ................................................. 132
Mexico .................................................. 134
Western Europe ....................................... 137
TPE Market Share by Company ........... 142
Belgium ................................................ 142
France .................................................. 144
Germany .............................................. 148
Italy ....................................................... 152
Spain .................................................... 155
United Kingdom .................................... 158
Other Western Europe .......................... 162
Asia/Pacific ............................................... 165
TPE: Supply & Demand ........................ 167
TPE Market Share by Company ........... 171
China .................................................... 171
India ..................................................... 176
Japan ................................................... 179
South Korea ......................................... 184
Taiwan .................................................. 187
Other Asia/Pacific ................................. 192
Other Regions .......................................... 195
Latin America ....................................... 198
Eastern Europe .................................... 202
Africa/Mideast ....................................... 205
INDUSTRY STRUCTURE
General .................................................... 210
Market Share ............................................ 212
Chart - World Market Share for TPEs
by Company, 2004 ........................... 213
Table - World TPE Sales
by Company, 2004 ........................... 214
TPE Compounders ................................... 215
Technology & Manufacturing .................... 219
Competitive Strategies ............................. 223
Acquisitions, Divestitures &
Industry Restructuring ............................ 224
Table - Select Acquisitions/Divestitures 226
Joint Ventures & Cooperative Agreements227
Table - Select Cooperative Agreements229
Marketing & Distribution ........................... 236
Company Profiles
Asahi Kasei .............................................. 241
Basell NV ................................................. 244
BASF AG .................................................. 247
Bayer AG .................................................. 250
Bridgestone Corporation .......................... 254
Celanese Corporation .............................. 255
Chi Mei Corporation ................................. 257
China Petroleum & Chemical ................... 258
Dexco Polymers ....................................... 259
Dow Chemical .......................................... 261
Dow Corning ............................................ 265
DSM NV ................................................... 267
DuPont (EI) de Nemours .......................... 269
EMS-Chemie ............................................ 272
Eni SpA .................................................... 274
Exxon Mobil .............................................. 276
GLS Corporation ...................................... 280
Huntsman Corporation ............................. 282
Korea Kumho Petrochemical .................... 284
Kraiburg Gummiwerk ................................ 285
Kraton Polymers US ................................. 286
Kuraray Company .................................... 289
Lee Chang Yung Chemical ....................... 291
LG Chem Limited ..................................... 292
Lubrizol Corporation ................................. 294
Merquinsa ................................................ 296
Mitsubishi Chemical ................................. 297
Mitsui Chemicals ...................................... 300
PolyOne Corporation ................................ 301
Repsol YPF SA ........................................ 304
Rockwood Specialties Group ................... 306
Saint-Gobain ............................................ 308
Schulman (A.) Incorporated ..................... 309
Solvay SA ................................................. 313
Spartech Corporation ............................... 315
Sumitomo Chemical ................................. 317
Teknor Apex Company ............................. 318
Total SA ................................................... 320
Toyobo Company ..................................... 324
TSRC Corporation .................................... 325
Washington Penn Plastic .......................... 326
ZEON Corporation .................................... 327
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INDUSTRY MARKET RESEARCH: BUSINESS INTELLIGENCE FOR BUSINESS LEADERS, STRATEGISTS, DECISION-MAKERS

ASIA/PACIFIC COMPANY PROFILES

Taiwan
Profiles for 42 global industry
Taiwan possesses one of the most dynamic economies in the Asia/ players including Advanced
Pacific region, as per-annum GDP growth regularly exceeded six percent
during much of the 1990s. Previously dependent on light manufacturing
Elastomer Systems, BASF, Dow
and agriculture, Taiwan in recent years has been concentrating on Chemical, Kraton Polymers, Lee
building high-technology and other capital-intensive industries to serve
worldwide markets on both an original equipment and primary vendor
Chang Yung, Repsol and Total
basis. Electronics (including microcomputers and computerized machine
tools), chemicals, plastics, processed foods and textiles are among the
ASIA/PACIFIC
principal products anchoring the Taiwanese industrial infrastructure.
Agriculture and minerals also contribute to GDP, but not to the extent of
manufacturing, and a services sector of significance Taiwan is the home
has developed as base of operation for several major TPE
producers.
well. Taiwan has also been doing a greater amount The largest
of business with of these, Lee Chang Yung (better known as LCY),
owns asociopolitical
mainland China in recent years, despite heightened plant in Kaohsiung
tensionsCity that had an annual production capacity of
between the two nations. 140,000 metric tons of SBCs as of year-end 2004. Chi Mei (Taiwan)
manufactures KIBITON SBCs at a facility in Tainan, Taiwan. As of year-
Although not completely spared, Taiwanend was2004, the Tainan
not among the plant had the capacity to produce 130,000 metric
tons Asian
countries most seriously affected by the Southeast of KIBITON SBCs
financial crisisannually.
of 1997-1998, and posted strong GDP growth over much of the year
2000, shrugging off the effects of a major earthquake Locally-based
in SeptemberTSRC1999. (formerly Taiwan Synthetic Rubber Corp.)
But the subsequent global slowdown has had aproduces
much moreTAIPOL
adverseTPE styrenic block copolymers at a facility in Taiwan
affect,
that had an
with the economy spending much of 2001 in recession annual
before capacity of 54,000 metric tons at the end of 2004.
some
improvement occurred in 2002. The recovery TAIPOLremainedTPE products
on track include styrene-isoprene-styrene, styrene-
in 2003
and accelerated in 2004 as the Taiwanese economybutadiene-styrene and styrene-ethylene/butylene-styrene block
shook off concerns
copolymers.
over the severe acute respiratory syndrome (SARS) epidemic,TSRC
and also produces T-BLEND TPE compounds, which are
global
based on
demand for information technology products picked up.SBSTheand SEBS TPEs.
economy is These products feature recyclability, heat
andand
chemical resistance,
gains electrical properties and elasticity. TSRC has an
SAMPLE TEXT
expected to build upon this recent improvement post further
going forward, although per-annum growth is annual T-BLEND
not expected capacity of over 8,000 metric tons at its Kaohsiung,
to approach ASIA/PACIFIC
Explanations to support Taiwan
rates typical of the pre-2000 era for the foreseeable site, and 10,000 metric tons at a site in Shanghai, China.
future.
each table’s numbers Finally, Enchuan
ducers shifting production to China. For example, in August 2005, LCY
Demand for thermoplastic elastomers in Taiwan is forecast to Chemical Industries (Taiwan) manufactures SBCs
announced plans to construct an SBC production facility in Huizhou,
and projections at a facility in Taichung
increase 6.4 percent per year through 2009 to 44,500 metric tons, with with an undisclosed capacity. Taiwan Lee
China. According to the company, this plant will have an annual SBC
Rubber
market value expanding 8.1 percent per year over (Taiwan)
the same andtoAdvanced Elastomer Systems (Exxon Mobil — US)
period production capacity of 100,000 metric tons and is scheduled to begin
maintain an agreement through which the companies develop,
© Copyright by The Freedonia Group, Inc. production in 2006. The majority of LCYs Taiwan-based production is
manufacture and market 164
custom TPEs. These TPEs are mainly used by
exported to China, so it makes sense for the company to save on trans-
thermoset compounders and fabricators in Taiwan. Among the products
portation costs and set up production in the world’s fastest growing TPE
that have been developed from this alliance is a TPV that Taiwan Lee
as well as SBC market.
Rubber markets under the LEPRENE brand name.

Production of thermoplastic elastomers in Taiwan is projected to

TABLE V-8
expand 3.3 percent per year through 2009 to 400,000 metric tons, with the
TAIWAN
country continuing to run a huge trade surplus--inTHERMOPLASTIC ELASTOMER SUPPLY & DEMAND
these products (largest
(000 metric tons)
“China and Taiwan are the
among all nations of the world). Growth will be slowed down by pro-
largest TPE producers in Item 1994 1999 2004 2009 2014
© 164
the region -- second and Copyright by The Freedonia Group, Inc.

third largest in the world Population (million persons) 21.1 22.0 22.8 23.3 23.8
$ GDP/capita 14880 18860 21360 25840 31510
respectively behind the Gross Domestic Prdt (bil 2000US$) 314 415 487 602 750
SAMPLE TABLE
US. The vast majority of $ per mil $ GDP 143.3 180.7
236.1 282.4 320.0
Taiwanese production is kg per capita Historical
0.70 1.43 data
1.04 1.91 2.48
kg per mil $ GDP 46.8
dedicated to SBCs that through 2004 as 78.7
54.9
66.9 73.9

TPE Demand (mil US$) 45 75 115 170 240

are primarily exported to $/kg 3.06well
3.29as 3.53
forecasts
3.82 4.07
China and other regional Thermoplastic Elastomer Demand
to 2009
14.7 22.8
and 2014;
32.6 44.5 59.0
Styrenic Block Copolymers (SBCs) 9.0 data13.0 illustrated
17.0 21.0 26.0
and non-regional nations.” Thermoplastic Polyolefins (TPOs) 2.8 4.5 6.7 9.5 13.0
--Section V, pg. 169 Thermoplastic Polyurethanes (TPUs) 1.5with2.8the 4.9
aid of8.0
75 11.5
TPVs, COPEs & Other TPEs 1.4 2.5 4.0 6.0 8.5
tables and charts
net exports 30.3 217.2 307.4 355.5 411.0

Thermoplastic Elastomer Production 45.0 240.0 340.0 400.0 470.0

© Copyright by The Freedonia Group, Inc. 191

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