china's additives market to reach us$3.5 billion by 2007

EQUIPMENT

Gough separator boosts masterbatch pellet productionGough & Co (Engineering) has developed aspecialized separator system specifically toincrease the quality and output of masterbatchpellet production. The Gough Vibrocon PelletScreener is claimed to tackle the problem offines, miss-shapes and dust from pellet produc-tion, which if not removed effectively lead topoor quality. The company says that the separa-tor has been developed using a vibrating screenmechanism powered by a remote motor, whichis configured to provide greater versatility in thescreening movement. According to Gough, thismeans that the pellets are gently driven acrossthe screen rather than ‘bounced’, which allowscomplete 100% screening.

Contact: Gough & Co (Engineering) Ltd,Newstead Industrial Estate, Stoke-on-Trent, ST48GE UK; tel: +44-1782-654770; fax: +44-1782-654771; URL: www.goughengineering.com

MARKETS

China’s additives market toreach US$3.5 billion by 2007The plastics additives market in China was esti-mated to be worth more than US$2.4 billion(�1.9 billion) in 2003 and is expected to growby some 45% to about $3.5 billion by 2007,which is equivalent to an average annual growthrate (AAGR) of about 10%. These figures aretaken from a new report, Plastics Additives inChina 2003, from US management consultancyBRG Townsend. The report provides an in-depth analysis of the consumption, production,trends, key industry suppliers and forecasts forthis high growth market until 2007.

The country’s entry into the World TradeOrganization in 2001 is having a significantimpact on global plastics and plastics additivesmarkets. With GDP increasing by more than 7%annually, Chinese consumption of polyolefins andPVC is growing at some 10% per year. Thegrowth in the PVC industry is cited as the primaryreason for the increased demand for plastics

additives, though the report finds that polyolefins,styrenics, polyamides, polycarbonate and ther-moset resins are also contributing to the burgeon-ing additives market in China. Current domesticadditive production is estimated at $1.8 billion,with 87% of that output consumed locally;exports were valued at $200 million. Imports in2003 were worth $900 million, according toBRG, indicating significant business opportuni-ties for major additives manufacturers worldwide.

Looking at one area in more detail, China nowaccounts for more than half of the Asia/Pacificregion’s usage of heat stabilizers. The country’sconsumption exceeded 120 000 tons in 2002, up10% from the previous year, led by strong PVCgrowth in the construction and packaging mar-kets, BRG reports. Lead, mixed metal, organotinand rare earth materials, in that order, are the pri-mary heat stabilizers used. With its unique rawmaterial position, China is the world’s leader inrare earth stabilizer technology. Despite expan-sion in domestic production, imports still accountfor over 35% of heat stabilizer consumption, pri-marily mixed metals and, especially, organotins.

Other additive families within the scope of thestudy are antioxidants, flame retardants, impactmodifiers/PVC processing aids, light stabilizers,lubricants, organic peroxides, and plasticizers.The market for antioxidants, currently placed at15 400 tons/year, is said to be growing at a par-ticularly fast rate of 15% annually.

The producers of plastic additives in China arenumerous, ranging in size from $5 million to$250 million. The study profiles the leading nineadditive producers: Beijing Hushan AuxiliaryFactory, Lanzhou Auxiliary Agent Plant, NingboJinhai Albermarle Chemical Co, Shandong QiluPlasticizers, Shanghai Huayi Plastics AuxiliaryAdditive Co, Shanghai Ciba Gaoqiao ChemicalCo, Dalian Chemson Chemical Co, ChongqingChangjiang Yangfan Chemical Co and WeifangYaxing Chemical Group. A directory of an addi-tional 40 organizations is also included. Thelarge multinationals all have a presence in China.Some of these companies have formed joint ventures/alliances including Akzo Nobel,Albemarle, Atofina, Ciba, Rohm & Haas.

Contact: BRG Townsend, Inc, Mt Olive, NJ07828, USA; tel: +1-973-347-5300; fax: +1-973-347-6466; e-mail: rconstable@brggroup.com

Additives for Polymers February 2004

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