1 20 PLASTICS REPORT: FOLIE 30 INNOWACJE:CAPS & CLOSURES, IML 38 INNOWACJE NA RYNKU MASZYN Central European Plastics Industry 3 THE CONTINENT S POLYMER BASTION No. 9 (144) September 2013 Price 10,00 EUR ISSN
3 Central Europe Plastics Central European Plastics Industry The Continent s Polymer Bastion Central and Eastern Europe, and especially the northern section of this region including Poland, the Czech Republic, Slovakia, and Hungary, have grown into a powerful plastics processing centre. Poland is currently the sixth largest plastics market in Europe, and the per capita usage of thermoplastics here is greater than in the powerful economies of France of the United Kingdom. T wo decades of intense growth of the plastics business have brought impressive effects to our region. The per capita consumption of thermoplastics in many countries of Central and Eastern Europe is greater than in the pillars of the old Union. This forces us to verify the rather widespread conviction concerning the massive potential for the increase in the usage of polymers in Poland that results from our catching up to the EU average. This average value is being inflated by such plastics processing powers as Germany or Italy, but on the other hand the per capita consumption of thermoplastics in the leading European and global economies, such as France or the United Kingdom, is much lower than in Poland. The EU average is also increased by our neighbours. The Czech Republic, with its consumption at the level of 91,8 kg per person in 2011 placed fifth in Europe: after Benelux (116,1 kg), Germany (104 kg), Italy (100,1 kg), and Austria (92,2 kg), and as we can see from the numbers quoted, it is catching up to the leaders. Slovenia (76,8 kg) is right behind the Czech Republic and still in the leading group. Hungary (73,3 kg per person) Our region s countries have exceeded the consumption threshold resulting from the level of the general civilisation development and it is they that inflate the EU average. and Slovakia (69 kg), on the other hand, have overtaken Switzerland and Spain in their per capita plastics usage. Poland is quickly catching up to the latter, leaving many Western countries, both big and small, behind. These data clearly show that our region s countries have exceeded the consumption threshold resulting from the level of the general civilisation development and it is they that inflate the EU average. If the increase in plastics consumption was justified by the standard of life resulting from the society s affluence, then greater potential would have been currently offered by the markets of the United Kingdom, France, Greece, Portugal, and Ireland. However, this is not the case. One might risk theorising that the increase in polymer usage resulting from the catching-up with the European civilisation standards is offered only by the markets of Bulgaria (34,4 kg per person) and Romania (23 kg). Increasing the plastics consumption in the other countries of this region will be possible only as a result of further growth in industrial activity, largely at the expense of advancing deindustrialisation of Western countries. It is worth noting that the plastics processing industry, and especially the injection moulding segment, can migrate easily and a large part thereof appeared in our region along with the large manufacturing corporations. It is the largest brands of the white goods, consumer electronics and automotive sectors that have converted the northern part of our region into a massive, low-cost factory, frequently ceasing production in their western facilities. This migration is an ongoing process, although nowadays it is more and more frequently directed to the less expensive Balkan countries. However, many companies seeking to cut costs still locate their investments in Poland due to the vicinity of the German market and the automotive centres in the Czech Republic and Slovakia. Further growth of the Polish processing industry in the automotive segment in connection with the Czech and Slovakian automotive sector seems quite probable. Our southern neighbours are displaying clear signs of potential exhaustion resulting from the countries size and the limited access to professionals. One proof of this can be seen in all the inquiries received by PLASTICS REVIEW from Czech consulting companies regarding the possibility of establishing collaboration between Polish manufacturers of plastic components and Czech car manufacturers. Poland as the largest market in the region With the thermoplastics consumption on the level of 2,4 million metric tons in 2011 our country was the sixth largest market in Europe (seventh if we treat the WRZESIEŃ 2013 Plastics Review l 3
4 Central Europe Plastics The potential for the production of individual countries in the region (capacity in thous. tonnes) Russia 220 PET Lithuania 438 PET 350 PET 80 NEO Group (Retal) Alko-Nafta Azoty Tarnów Slovakia 300 Romania Hungary HDPE LDPE PP Borsodchem 80 Rompetrol Petrochemicals 57 Oltchim with Petrochemical Arges (Arpechim) HDPE LDPE HIP-Petrochemija 35 PP DIOKI PA PP LDPE PP HDPE LDPE PP LDPE PS EPS Croatia 100 LUKOR-Karpatneftekhim (LUKOIL CHEMICAL) CJSC LINIK (BP-TNK) TVK (MOL Group) 140 Concern Stirol Slovnaft Petrochemicals (MOL Group) PVC Synthos SA Spolana (PKN Orlen Group) PS EPS PVC HDPE PP Unipetrol RPA (PKN Orlen Group) 180 Synthos SA Czech 125 Republic PS 65 PS EPS Ukraine PA POM PA Anwil Basell Orlen Polyoleﬁns (PKN Orlen Group) (PKN Orlen Group) Rhodia Polyamide Poland 135 Polymir (Naftan OJSC) HDPE LDPE PVC 35 Grodno Khimvolokno HDPE LDPE PP PVC PET 110 Indorama Poland 298 LDPE Poland Mogilevkhimvolokno HDPE PVC 340 Belarus Orion Global (Indorama) PET (Kaliningrad) Hipol Odzaci Serbia 4 l Plastics Review WRZESIEŃ 2013
5 PAKUJ SIE NA K 2013 Elastyczne, transparentne, lekkie, bezpieczne i przyjazne dla s rodowiska: tworzywa sztuczne oferuja branz y opakowaniowej duz e moz liwos ci rozwoju. Odnawialne surowce, jak i biodegradowalne polimery dla zamknie tych cykli sa waz nym tematem przyszłos ci. Na K 2013 znajdziecie kreatywne rozwia zania dla sektorów food i non-food, farmacji, produkcji napojów i towarów przemysłowych. Blisko wystawców z ponad 50 krajów zaprezentuje swoje innowacje na wioda cych na s wiecie targach dla branz y tworzyw sztucznych i kauczuku K w Düsseldorﬁe. Zaplanuj juz teraz swoja wizyte. Witamy na K Mie dzynarodowe Targi Nr 1 na s wiecie dla branz y tworzyw sztucznych i kauczuku k-online.de Przedstawicielstwo w Polsce: A.S. Messe Consulting Sp. z o.o. ul. Kazachska 1/57 _ Warszawa Tel. +48 (22) , Fax +48 (22) _
6 Central Europe Plastics Benelux countries as a single market, as most analytical companies do). Catching up to Spain or the United Kingdom who consume approximately 3,1 million metric tons each will not be easy, however, even though the crisis harassing the Iberian Peninsula countries may speed this moment up. Even though Poland can be considered a European power right now, both with regards to the total quantity of plastics consumed and its per capita consumption, the assessment of our plastics industry s growth potential is not clear-cut. Actually, we can speak of two parallel industries: the Polish plastics processing industry and the plastics processing industry in Poland. The technological, organisational and capital gap dividing the foreign enterprises operating in Poland and our domestic companies is all too clear. Even though many of them have made the technological leap thanks to EU subsidies, they are still too small or too weak capital-wise to use all the available development paths, such as moving their production facilities to special economic zones. The Plastics Europe Foundation estimates that the plastics industry in our country consists of more than production facilities employing more than people. Both the number of employees and the industry s turnover in Poland have been growing systematically and dynamically for a dozen or so years. Our country is made distinct by a slightly different plastics consumption structure than usually seen in Europe. We have a slightly lower share in the polyolefines market 46% (48% in Europe) but a greater share in PVC consumption 16% (12% in Europe). Our manufacturing structure is also somewhat different, the packaging sector s (31,5% in comparison to 39% in Europe) and the automotive sector s (5,7% in comparison to 7,5% in the EU) share in the plastics consumption is lower, but it is much greater than average in the construction industry 28,5% in comparison to 20,6% in Europe. The domestic production of plastics satisfies the market s needs only partially so Poland is a large net importer of plastics. Statistics show that the surplus of import over export is nearly 1,4 million metric tons, which negatively affects 6 l Plastics Review WRZESIEŃ 2013 Consumption of thermoplastics in Europe 2011 (in thous. tonnes) KRAJ Germany Italy France Benelux Spain Great Britain Poland Scandinavia Czech Republic Austria Hungary Portugal Greece Switzerland Romania Slovakia Bulgaria Baltic Ireland Slovenia Zużycie termoplastów (tys. ton) Poland s commercial balance for more than 2,2 billion EUR and nothing suggests that this situation might improve. Production of plastics After a good and optimistic 2011, when three significant petrochemical installations were started up in the Central and Eastern Europe, which provided both a quantitative and a qualitative breakthrough in the manufacturing of plastics in the region, the current year turned out to be much worse for the industry. In the wake of the economic crisis during 2010 and 2011 Western Europe saw the shutdown of thermoplastics factories with the total capacity of metric tons per year. Many signs indicate that such installations are being shut down also in our part of the continent. Looming liquidations At the end of 2011 the Croatian DIOKI ceased its operations. Currently the fate of the Romanian PVC manufacturer Oltchim and the polyolefine assets grouped under Petrochemical Arges (formerly Arpechim) acquired thereby also hangs in the balance. Oltchim itself manufactures only sporadically these days, if ever, due to its permanent lack of current assets that are insufficient to even pay the workers wages (arrears with salary payments already reach two months). The situation of the small polyolefine installations acquired from the Arpechim refinerty that was closed last year by its owner, the Austrian OMV fuel corporation, is also unclear. If they haven t been vandalised, then they are most likely inoperational due to the lack of raw materials. The Romanian government has already announced filing for Oltchim s bankruptcy. The situation of the Serbian HIP Petrohemija is also rather tragic. Its small polyolefine installations noted numerous stoppages this year, but Consumption of thermoplastics in Europe 2011 (kg per capita). Romania Bulgaria Baltic Great Britain Greece Ireland France Portugal Poland Spain Switzerland Slovakia Hungary Scandinavia Slovenia Czech Republic Austria Italy Germany Benelux
8 Central Europe Plastics the Serbian government that controls the company is determined to maintain it and help it to grow. After stabilising its financial situation, in August this year the company started the expansion of its HDPE system production capacities from to metric tons per year. At the same time HIP Petrohemija is being taken over by Russian capital. On the other hand, the situation of the petrochemical industry in Ukraine has deteriorated. BP-TNK has shut down its PP installation in LINIK (Lisichansk refinery tons per year PP) and decided to sell it. So far, despite information about the plans to reinstate production, this installation has not resumed operation. Poland wasn t spared such blows either. The Ciech corporation has released information that it would stop the production of TDI in Zachem in Bydgoszcz and to sell the client base and the rights to the manufacturing technologies to the German BASF. There are also some concerns about the fate of the two largest manufacturing groups clustered around PKN Orlen and the Hungarial MOL. For months now, global petrochemical companies, such as Ineos or LyondellBasell, have been signalling profitability problems of their European installations based refinery raw materials. This situation is juxtaposed to the beneficial conditions in North America where the availability of the cheap shale gas makes polyolefine production much more profitable. The Ineos Group s decision about initiating ethane deliveries from the US to the company s European olefine installations in order to improve their competitiveness should be treated as a serious warning. The PKN and MOL petrochemical groups do not have manufacturing assets in regions with preferential cost treatments (Middle East, North America) and so they cannot average their costs, unlike most of their competitors with more geographical diversity. In the future this situation may give rise to extremely serious consequences for our petrochemical industry. The best is already behind us? Last year the largest PET process line in Europe with the capacity of metric tons per year was started up in our region. This installation, owned by JSC Alco-Naphtha, is located in 8 l Plastics Review WRZESIEŃ 2013 The per capita consumption of thermoplastics in many countries of Central and Eastern Europe is greater than in the old Union countries. Kaliningrad. Another important event was also the opening of a new PVC factory in Ukraine ( tons per year) by Karpatneftekhim, a subsidiary of the Russian Lukoil. However, the real breakthrough was PKN Orlen s launch of the terephthalic acid (PTA) facility with the capacity of tons. Thus, the Polish company has become the sole manufacturer of this raw material used in the production of PET in the Central and Eastern Europe. This event was followed by the company s declarations about the possibility of extending the manufacturing chain with investments in PET production, but the announcement of the new strategy for the years is being postponed. Recent reports say that the company s supervisory board will approve the strategy in November, but it would only be made public in December. The future of the expansion of the PET factory in Włocławek announced in the middle of last year is also unclear. Indorama announced then that it would increase the facility s capacities from the current tons per year to tons per year in It seems that the investment of MOL s Petrochemical Division (construction of a new LDPE installation in Slovakia with the tons per year) that was announced in July last year has greater chances of success. This facility is supposed to be operational by Even though this installation may temporarily increase the group s production capacities (MOL owns two old LDPE installations: tons per year in TVK and tons per year in Solvnaft, with the total capacity of tons per year) its purpose is actually to replace the worn down factories. The polyolefine stalemate and problems with profitability The polyolefine production in our region is dominated by two large groups concentrated around oil companies: the Polish PKN Orlen and the Hungarian MOL. These companies divided between them the petrochemical assets of the former Czechoslovakia. PKN Orlen acquired the Czech Unipetrol and currently has manufacturing bases in Poland (in j.v. BOP) and in the Czech Republic. MOL, on the other hand, took over the Slovakian Slovnaft with its installations in Bratislava. As far as the manufacturing potential in the polyolefine segment is concerned, Orlen is clearly superior to MOL. The total manufacturing capacity of the Polish group amounts to more than 1,5 million metric tons, while the Hungarian company s 1,2 million tons. The Hungarian company is clearly inferior to PKN Orlen as far as the production of PP ( tons per year vs tons per year) and HDPE ( tons per yaer vs tons per year) is concerned. They are superior only in the LDPE segment ( tons per year vs tons per year). Since none of the global polyolefine players (apart from the 50:50 joint venture of LyondellBasell and PKN Orlen) have a manufacturing base in our region, their share in the HDPE and PP market is not big. The situation in the LDPE and LLDPE trade looks different. In the case of the former, the local manufacturing capaci-
9 PRZEWAGA ENERGIZED BY Wykorzystuj c nowe wersje naszego tworzywa Durethan do elementów formowanych z rozdmuchem do zastosowa pod mask silnika zostawi Pa stwo wszystkich w tyle. Posiadaj ce specjalne rozga zienia wersje PA6 i PA66 cechuje bowiem niezwyk a odporno przy jednoczesnej atwo ci obróbki. Nasz silny zespó ekspercki oferuje Pa stwu ponadto wszechstronn obs ug i doradztwo techniczne dotycz ce zastosowa produktu w ka dej fazie opracowywania i wdra ania podzespo u. Z rado ci oczekujemy nowych wyzwa! LXS-HPM-054PL Odwied nas i dowiedz si wi cej pa dziernika 2013 r. K 2013, hala 6, stoisko C76/C78
10 Central Europe Plastics ties are insufficient to satisfy the demand, which only in Poland is assessed to be tons of LDPE per year. The LLDPE market, on the other hand, is completely owned by importers, because there are no manufacturers of this material in our region. Here, Sabic is the leader with its 40% share in the Polish market of linear polyethylenes. Borealis and Dow, operating here through their own trade offices and international distributors, also have faithful clients from the global players group here. Russian companies have a minimum presence in Central Europe, which is the result of a long distance from the manufacturing base located near the Urals and in Siberia, as well as the dynamic growth of the processing industry in Russia itself, which limits the export penetration of Russian companies primarily to the area of the Commonwealth of Independent States. The Balkans the polyolefine suburbs The petrochemical industry or largest and the most populated country in this region Romania is in terrible condition. Privatisation of the refinery and petrochemical company Petrom, assisted by the Austrian OMV, turned out to be a disaster for the petrochemical segment. The investor was only slightly interested in the development of this area of production in Romania, and last year it also decided to close one of the two Romanian Arpechim refineries in Pitesti which was equipped with a LDPE installation ( tons per year) and a HDPE installation ( tons per year). The Romanian government negotiated with OMV Petrom that the Austrian company will sell these assets to the state-controlled Oltchim, for which the refiner was the primary supplied of petrochemical raw materials. Everything suggests that the polyolefine installations located in the Arpechim facilities currently remain unused. Rompetrol Petrochemicals, the second Romanian polyolefin manufacturer and daughter company of the Romanian fuel company Rompetrol Group, currently controlled by a stateowned KazMunaiGaz from Kazakhstan, is in a better situation. During the years , the company paid 44,5 million US dollars to modernise and restart 10 l Plastics Review WRZESIEŃ 2013 POTENTIALS Petrochemicals 2013 Central European PET capacity Company Indorama Poland NEO Group (Retal) Orion Global (Indorama) Alko-Nafta Mogilevkhimvolokno All (in thous. tonnes) Country Poland Litwa Lithuania Russia/Kaliningrad Belarus Central European PVC capacity (in thous. tonnes) Company Anwil (PKN Orlen Group) Spolana (PKN Orlen Group) Borsodchem Oltchim LUKOR-Karpatneftekhim (LUKOIL CHEMICAL) All Central European PS capacity Company Synthos SA Concern Stirol DIOKI All Country Poland Czech Hungary Romania Ukraine Company Grupa Azoty Tarnów Grupa Azoty Tarnów Rhodia Polyamide Poland Grodno Khimvolokno All PVC (in thous. tonnes) Country Poland/Czech Ukraine Croatia Central European PA capacity PET PS EPS (in thous. tonnes) Country Poland Germany Poland Belarus PA its LDPE ( tons per year) and HDPE ( tons per year) installations. Last year this company continued the expansion of its HDPE manufacturing capacities in Constanta by more than 70% up to tons per year. Completion of this delayed investment was announced for the end of this year. This does not change the fact that a country with such great refinery and petrochemical traditions has the polyolefine manufacturing potential that is half its neighbouring Hungary s, which is half as big. In the age of concentrated production dictated by the economies of scale it is difficult to say something optimistic about the perspectives for the production of PP and PE in Romania. Miniature workshops seem to be doomed to lose in the clash with global potentates. The fate of the Croatian DIOKI seems to confirm this theory. This company with potential enabling the manufacturing of tons of ethylene per year, tons of LDPE per years, tons of PS per year, tons of EPS per years, and approximately tons of vinyl chloride per year on the Krk island, where a PVC installation with the manufacturing capacity of tons per year was planned to be opened in 2012, closed its production in October last year and dismissed its employees. The primary problem of the petrochemical industry in Croatia were the prices of electricity and gas, which were much higher than in its neighbouring countries, and even in Germany. The high costs of energy in combination with low production scale were the reason for DIOKI s permanent problems. After recording a loss of HKR 159 million (approximately EUR 22 million) in 2009, the Croatian polymer manufacturer continued to tumble down into the financial abyss and closed the year 2010 with a loss of HKR 239 million (EUR 33 million). Gordana Baric, an editor from the Croatian Polimeri magazine, told us that currently, one year after ceasing production, companies willing to buy the installation are being sought. The Turkish ÇALIŞKAN GROUP is supposedly interested in purchasing the assets located on the Krk island, where it would be able to erect its LNG terminal. On the other hand, an as yet unnamed Italian company is looking at the DIOKI facilities in Zagreb, but nobody in Croatia believes anymore that the manufacturing of polymers in this country can be revived. HIP Petrohemija, the largest petrochemical group in Serbia, is doing better. After the production stoppages caused by debt, the company managed to restructure its finances at the end of However, in 2009 and 2010 it generated negative financial results both on the operational level and net. HIP Petrohemija currently owns two small and old polyolefine installations: HDPE ( tons per year) and LDPE ( tons per year). It is the ambition of the Serbian government, which is the majority shareholder in the company, to modernise the facilities, and it was enough for the HDPE installation to be expanded this year to tons per year. Current information about the progress of the works show that the modernisation process will be complet-
11 Zapraszamy do odwiedzenia naszego stoiska na Targach K w Düsseldorfie w dn Hala 11 Stoisko 11H25
12 Central Europe Plastics ed. Despite all this the company still seems to be balancing on the edge, as proven by numerous production stoppages this year. Ukraine and Belarus between Russia and the West The polyolefine industry in Ukraine and Belarus is already a party of the Russian area of influence in the petrochemical sector. In Ukrain LUKOR-Karpatneftekhim ( tons of HDPE per year) is owned by Lukoil Chemical, while CJSC LINIK (a refinery in Lisichansk tons of PP per year) is a part of the BP-TNK group. In April this year the installation was shut down and TNK-BP made the Linik refinery available for purchase, claiming that it does not intend to renew the production of fuels in the Ukrainian refinery. TNK-BP halted the processing of oil in Ukraine in March this year, because the production was not profitable and it prefers to import ready fuels to Ukraine from Belarus or Lithuania. This is how TNK-BP petrol stations in Ukraine are supplied with fuels. Information has arisen about the negotiations held by the Ukrainian businessman Dmytro Firtash regarding the repurchase of the refinery from TNK-BP, and in the Russian press there are announcements that both the refinery and the PP installation will recommence production in October this year. In Belarus the only polyolefine manufacturer is Polymir ( tons of LDPE per year), which is a part of the state-owned refinery and petrochemical company Belneftekhim. The polyolefine production in the region was dominated by two large groups concentrated around oil companies: the Polish PKN Orlen and the Hungarian MOL. tons per year and Orion Global PET (Indorama) tons per year. If we add to this the Kaliningrad Ałko-Nafta factory ( tons per year), it will turn out that the total PET manufacturing capacities on the shore of the Baltic Sea amounts to tons per year. Add to this the tons of PET per year in Włocławek and from the Belorussian Mogilevkhimvolokno and we get the awe-inspiring potential of tons per year concentrated on a relatively small area, of which approx tons per year is controlled by the Thai Indorama. It is also worth remembering that to the south of the Włocławek (Poland) Mohylew (Belarus) line there is not a single PET production line until the Adriatic and the Black Sea. The next facility of this type cannot be found until you reach Turkey. The Baltic PET empire PVC a million tons waiting for a new owner PKN Orlen s start-up of a PX/PTA complex and a PET installation ( tons per year) in the Kaliningrad Oblast owned by Ałko-Nafta from the Maryjski NPZ group, as well as increasting the manufacturing capacities of the Orion Global PET (Indorama) in Lithuania to tons per year changed the layout of the PET market in the Central and Eastern Europe lat year. The Lithuanian PET centre currently comprises a giant with the total manufacturing capacities of tons per year, including the NEO Group (Russian Retal) Last year s launch of Karpatnaftochim s (Lukoil) PVC installation ( tons per year) in Ukraine, which until then had imported all its PVC ( tons per year) has changed this country into a net exporter. Meanwhile, all the polyvinyl chloride factories operating in the new EU countries in the belt between the Baltic Sea and the Black Sea were made available for purchase, but so far there have been no interested buyers. This state of uncertainty has been there for three years now. Beginning with the Anwil Group, which until recently 12 l Plastics Review WRZESIEŃ 2013 did not match PKN Orlen s strategy (a total of tons of PVC per year: Anwil and Spolana), through the Hungarian Borsodchem ( tons per year) that does not match the isocyanate profile of its new owner, the Chinese Yantai Wanhua, to the Romanian Oltchim ( tons per year). The latter has been subject to unsuccessful privatisation attempts by the Romanian government in increasingly comic or actually embarrassing circumstances this year nearly ceased production due to the lack of current assets. The authorities wish to sell the company as a whole, but investors are willing to take everything apart from the PVC complex, arguing that its existence is only justified if ethylene supplies can be ensured for competitive prices. Polystyrene only Synthos and Concern Stirol After the shut-down of the Croatian DIOKI s installation ( tons of PS per year and tons of EPS per year) the group of regional manufacturers consists solely of: the Ukrainian Concern Stirol ( tons of PS per year) and the Polish-Czech Synthos Group which is the third biggest EPS manufacturer in Europe. The regional polyamide power Except for a small polyoxymethylene (POM) installation with the capacity of tons per year in the Tarnów factory the only construction plastic produced in our region is polyamide, but it is produced only in Poland and Belarus. Thanks to the acquisition of PA factory in the German town of Guben on the border with Poland, the Azoty Group has become the regional leader, noticeable also on the European scale. The company can currently manufacture approx tons of caprolactam and tons of PA per year ( tons in Tarnów and tons in Guben). The French Rhodia Group also has a manufacturing facility in Poland ( tons per year). The Belorussian company Grodno Khimvolokno also manufactures polyamids and its production capacities amount to tons per year.
13 Program produkcji oraz dostaw: Instalacje dostarczania produktu do mieszalników Silosy oraz zbiorniki Instalacje transportu pneumatycznego i mechanicznego Wagi wielokomponentowe Wagi dla składników płynnych Wagi typu netto oraz brutto Automatyczne maszyny pakujące o wydajności do 1600 worków / godzinę Urządzenia do napełniania worków Big - Bag, oktabin, kontenerów oraz beczek Budowa maszyn i urządzeń specjalnych Zapraszamy na nasze stoisko 9A27 na Targach K'2013 w Düsseldorfie w dniach r. HUZAP GmbH Marie Curie Str. 1, HENNEF Telefon Telefax Internet:
14 Plastics R eview Masterbatch: An Effective Alternative to Coloring Plastic Parts in the Automotive Industry 14 l Plastics Review WRZESIEŃ 2013
15 Plastics R eview Color consistency and color harmony are the hallmark of automotive color quality. The first exposure to quality that a potential car buyer has is the vehicle s appearance in the show room. Mismatched interior components will give the perception of poor quality. If an automaker is unable to quality control the interior color of the vehicle, what other vehicle components might be of substandard quality? At least this might be the thought process of a person prepared to purchase a new car. BY LARRY DEPAOLI asterbatch technology removes the color pigment from the base polymer and is introduced to the injection molding process as a separate component. In this case, the injection molder will be applying two plastic materials: a) the base polymer pellets and b) the masterbatch pellets. The significant difference between precolored polymer and masterbatch is that in the case of masterbatch, the base polymer is introduced as a natural resin (uncolored) and the masterbatch is introduced to the natural base polymer at a prescribed let down ratio (LDR). The LDR is the amount of natural base polymer and the amount of masterbatch required to produce an injection molded part that is the correct color. Prior to the 1970s, paint was the common method of coloring automotive interior injection molded parts. This technology was predominate because it was the only way auto makers knew how to create harmonized interiors that were also compliant to OEM specifications for impact and ultra violet (UV) resistance. During this time, injection molded parts did not have to be compliant to critical color standards. They simply had to be a substrate color that would assure that a defect (such as a scratch) would not be noticeable to the consumer. Polymer technology evolved and in the 1970s, it became possible for auto makers to produce injection molded interior parts that were compliant to critical color match requirements and able to withstand the requirements of the OEM specification for impact and UV resistance. As a result, precolored compounds were born. Paint was no longer required, which proved to be significant cost avoidance for the auto makers and the injection molders. M In the early 1980s, color feeder technology improved to a point of accuracy where the injection molder had the capability of introducing colored pellets, as a separate component, to the natural resin at a prescribed let down ratio (LDR). This was the introduction of masterbatch to the automotive industry. Color feeders meter the amount of color pellets to the injection molding machine. The common LDR was 25:1 (25 parts natural resin to 1 part colored pellets) or 4%. In North America, the U.V. protection was provided by the masterbatch. By separating the pigment and additives from the natural polymer, this provided the injection molder with the ability to purchase the natural base polymer as a Masterbatch technology removes the color pigment from the base polymer and is introduced to the injection molding process as a separate component. commodity raw material, which reduced the cost of the resin and provided a further cost avoidance for the injection molder and the OEM. In the mid 1980 s polymer and masterbatch technology improved to a point where a reduction in the use of masterbatch provided yet another cost avoidance. 50:1 (50 parts resin to 1 part colored pellets) or 2% LDR was introduced. This technology applied technical pressure to the masterbatch supplier. Even though half as many colored pellets would be used in a 2% LDR application, the same amount of pigment and additives was required in order for the injection molded parts to meet the quality requirements for color and the property WRZESIEŃ 2013 Plastics Review l 15
16 Plastics R eview requirements of the OEM specification. Basically, more pigment and additives had to be introduced to the masterbatch formula. The cost saving advantages of masterbatch (vs. precolored resin) makes masterbatch a responsible consideration where cost is at issue. Typically, a savings can be realized by the molder in various ways: 1. Commoditization of the base polymer By keeping the base resin natural, the purchaser of the resin can avoid the cost of customization where pigment and additives are compounded into the base polymer. By purchasing larger quantities of natural resin (vs. smaller batches of precolored compounds), the resin price is often lower than the custom batches of precolored compound. 2. Packaging savings Precolored compound is typically delivered in 1 ton boxes whereas natural resin can be delivered by rail car (or other commodity means) revealing a packaging savings of approximately EU.02 - EU.05/kg 3. Color adjustment In a case where an off color quality issue persists, precolored compound will ultimately have to be scrapped as it cannot be reworked, whereas masterbatch can be reworked to the correct color requirements. Further, masterbatch can be adjusted at the injection molding machine through LDR adjustments. The color harmony and control advantage of masterbatch is significant in automotive interior applications. If a molder is using precolored compounds to color its injection molded parts, there are possibly 3 5 different companies involved in the color management of the interior. For example, if we have a vehicle that contains polyamide parts, ABS parts, polypropylene parts and acetal parts, we would have 4 different suppliers of precolored compound responsible for color harmony on the interior of the vehicle. If a natural resin plus masterbatch strategy is used, the masterbatch supplier will color all natural resin on the interior 16 l Plastics Review WRZESIEŃ 2013 Today, masterbatch is the predominate technology used for coloring interior automotive injection molded part. of the vehicle, reducing the suppliers responsible for color management, color harmony and color control down to one; the masterbatch supplier. The potential for production and process advantages prevail in a natural plus masterbatch system. By utilizing natural resin, the hopper used to contain the natural resin will not have to be emptied when there is a need for a color change. Typically in automotive applications, interior parts will be required to be molded in three basic colors: grey, beige and black. The use of natural resin allows the injection molder to only focus on changing the container of masterbatch when a color change is imminent. The hopper of natural resin will not require a change as the natural resin will be used for all three mentioned color varieties. By not putting a precolored compound in the hopper, there is not risk of contamination when a color change occurs. Commonly, there is also a scheduling advantage in production. A typical lead time for production of precolored compound is 6 16 weeks. This is because the precolored compound must be produced in large quantities, often, in excess of 25,000 kgs. The amount of masterbatch required to color 25,000 kgs. of base resin is 500 kgs. (at a 2% LDR). It takes much less time to produce 500 kgs. of masterbatch than it does to produce 25,000 kgs. of precolored compound. The typical lead time for production of masterbatch is days. This shorter lead time can also reduce the amount of inventory required to have available to meet a production schedule. In some cases, a polymer will retain moisture, thus requiring a drying step in the process. If using a precolored compound, drying units are required for each specific color. In some cases, the injection molder will not want to invest in extra dryers and will choose to empty the resin dryer when they would perform a color change. Not only does this pose an opportunity for color contamination, it is simply time consuming. In a natural resin plus masterbatch system, one central drying location can accommodate resin drying requirements because the masterbatch pellets do not require drying. The process of drying a commodity resin is reduced to filling the dryer with the natural polymer. This system can reveal a labor coast savings and virtually eliminates the possibility of color contamination.
17 Plastics R eview One of the most significant cost avoidance opportunities is in the area or inventory management. By purchasing precolored compounds (typically delivered in 1 ton boxes), the molder has the requirement to provide adequate warehouse space to maintain appropriate levels of inventory. For example, if an injection molder purchases 20,000 kgs. of precolored compound, the molder will require 20 typical warehouse bays to store the material prior to use. The amount of masterbatch required to color 20,000 kgs. of natural polymer is 400 kgs. (at 2% LDR). This amount of masterbatch can be contained in one warehouse bay (four drums on a pallet). The natural resin can be stored in a silo outside of the facility. By warehousing natural resin in a silo and masterbatch in a single warehouse bay, the molder can convert warehouse space into a production environment by replacing warehouse racking with injection molding machines. Today, masterbatch is the predominate technology used for coloring interior automotive injection molded part. Resins common to the technology are PP, TPO, PE, ABS, ABC/PC, PA and POM. Over 15,000,000 vehicles per year produced in Mexico, the United States and Canada contain masterbatch. Due to the globalization of automotive programs other regions (such as Europe and Asia) that typically utilize precolored compounds have begun a conversion to masterbatch. While natural polymer plus masterbatch can provide a cost avoidance to the injection molder and the OEM, there is often a capital investment required to implement the technology. For containment purposes, silos are used for storage and distribution of the natural resin. To help assure a stable production process, color feeder systems are typically considered. The two common feeder technologies, gravimetric (weigh-loss) feeder systems and volumetric feeder systems offer specific benefits at varying costs. While gravimetric feeders provide improved metering accuracy of colorant to the injection molding machine, the cost to purchase is normally higher than the less accurate volumetric feeders. Both technologies can provide benefit to the appropriate application. In order to assure that use of natural polymer plus masterbatch technology can provide a cost advantage, the injection molder will have to consider the cost of the precolored compound, the cost of the natural resin and the cost of the master batch. A common and simple method for calculating the cost variance of the two technologies is noted below. Precolor price/kg. natural resin price/kg. = price to color precolored resin/kg. Price to color precolored resin/kg. masterbatch coloring cost/kg. = savings/kg. (by using masterbatch) In today s competitive global automotive environment, successful injection molders are constantly striving to improve its cost basis through improvements in production and process efficiency and by identifying technologies that can provide a cost savings advantage. Utilizing a natural resin plus masterbatch strategy has proven to be a significant means to maintaining strong marginal income while remaining competitive. It is worth running the numbers to see if a potential opportunity exists. About Larry DePaoli: Larry DePaoli, Global Automotive Market Development, Uniform Color Company Larry DePaoli has been an automotive colorist for over 30 years. He formerly was the Technical Director at Uniform Color Company and is currently involved in managing automotive program launches in Europe, Asia and North America and developing UCC s global automotive market. Larry is a two time past president of the Detroit Colour Council. He has presented over 15 technical papers and moderated 6 technical conferences. He conducts over 30 color training seminars per year. Larry has a B.S. in Communications. About Uniform Color: Uniform Color Company (UCC) manufactures high quality custom color and additive masterbatches for the thermoplastics industry. In markets where color control and consistency are critical UCC is a preferred supplier, known for precision color, technical expertise and outstanding product performance. UCC operates manufacturing sites in 3 countries (USA, Mexico, and Slovak Republic) and has a manufacturing partner in China. Corporate headquarters are located in Holland, Michigan. Their newest manufacturing facility is in Voderady, Slovakia. For more information, visit Or WRZESIEŃ 2013 Plastics Review l 17
18 S pi s Tr e ś c i Central Europe Plastics The Continent s Polymer Bastion... 3 Central and Eastern Europe, and especially the northern section of this region including Poland, the Czech Republic, Slovakia, and Hungary, have grown into a powerful plastics processing centre. Poland is currently the sixth largest plastics market in Europe, and the per capita usage of thermoplastics here is greater than in the powerful economies of France of the United Kingdom. Plastics Report Folie sztywne: liderzy zwiększają udziały W 2012 r. europejski rynek sztywnych folii termoplastycznych osiągnął wydajność rzędu 4 mln ton, powracając do poziomu sprzed recesji. Na naszym kontynencie działa ponad 800 zakładów produkcyjnych, a 50 największych producentów dzieli między sobą 60 proc. rynku. Robert Gontarek Folie barierowe Koncern DSM zamierza zwiększać okres trwałości produktów spożywczych i rolnych poprzez utrzymywanie w opakowaniu określonego poziomu mieszaniny tlenu, CO2 i pary wodnej. Tymczasem rynek coraz bardziej docenia znaczenie nowoczesnego sprzętu do pomiaru barierowości folii. Robert Gontarek Folie stretch Do mocowania rozmieszczanych na paletach worków z produktami koncern ExxonMobil Chemical zaczął ostatnio stosować ulepszoną folię rozciągliwą typu stretch-hood, opracowaną m.in. na bazie własnego elastomeru poliolefinowego Vistamaxx. Prezentacje Larry DePaoli Masterbatch:An Effective Alternative to Coloring Plastic Parts in the Automotive Industry Color consistency and color harmony are the hallmark of automotive color quality. The first exposure to quality that a potential car buyer has is the vehicle s appearance in the show room. Nowe trendy w gatunkach HDPE do produkcji zakrętek, zamknięć i tub Obserwujemy stały i szybki wzrost produkcji jednoczęściowych zakrętek z polietylenu dużej gęstości, produkowanych w technologii wtrysku lub prasowania tłocznego i stosowanych do produkcji zamknięć do butelek z wodą mineralną niegazowaną lub wodą gazowaną oraz do napojów. Centrum Technologii ARBURG Dnia 17 września br. odbyła się ceremonia symbolicznego wbicia łopaty pod budowę nowej siedziby firmy ARBURG w Polsce. 18 l Plastics Review WRZESIEŃ 2013 Rynki Tworzyw Robert GONTAREK Innowacje dla branży Caps & Closures Nakrętka lub zamknięcie to produkt w znaczny sposób podnoszący ogólny koszt opakowania - dlatego rynek chętnie chłonie innowacje, które mogą dostarczyć interesujących rozwiązań w tym zakresie. Innowacje na rynku IML Produkcja etykiet w technologii IML błyskawicznie zyskuje na popularności. Jednym z przykładów masowego wdrażania tego rodzaju rozwiązań jest działalność Beck Automation ze Szwajcarii. W ubiegłym roku firma zrealizowała 40 nowych zamówień i obecnie ma na koncie ogółem już około 550 tego rodzaju projektów. Waldemar SOBAŃSKI Kosztowna zielona rewolucja w energii Zmiana polityki energetycznej Niemiec, zdaniem niemieckich przedsiębiorców, jest przekleństwem. Obawiano się, że rezygnacja z energii jądrowej, o czym zdecydowano w 2011 r., przyczyni się do pojawienia się niedoborów, a problem jest dokładnie odwrotny. Maszyny, Narzędzia, Urządzenia Robert GONTAREK Podmuch innowacji Produkcja butelek dla początkujących, kontrola ustawień z poziomu smartfona, kombinacje wtryskarek z wytłaczarkami, systemy odzysku energii i powietrza oraz w pełni elektryczne napędy - producenci maszyn do wytłaczania z rozdmuchem nie ustają w doskonaleniu swoich ofert. Technologie Polimerów Recykling tworzyw: przegląd innowacji Rosnące znaczenie polimerowych recyklatów prowadzi do rozwoju nowych, wydajniejszych technologii odzysku tworzyw sztucznych. UNIKAĆ RECYKLINGU Na pytania redakcji odpowiada Dr. Thorsten Thümen, Dyrektor ds. Badań i Rozwoju w Ferromatik Milacron, produkującej wtryskarki firmie z Malterdingen w Niemczech. FOLIOWE INNOWACJE Na pytania naszej redakcji odpowiada Dr. Christof Herschbach, dyrektor ds rozwoju biznesu i marketingu Windmöller & Hölscher dostawcy maszyn i systemów dla produkcji opakowań elastycznych. WSZYSTKIE WTRYSKARKI BĘDĄ ELEKTRYCZNE Na pytania redakcji odpowiada Thomas Brettnich, Dyrektor ds. Rozwoju Technologii w Sumitomo SHI Demag z siedzibą w Niemczech. Plastics News Editorial office Warsaw; Opaczewska Str. 43/130 tel.: fax: Publisher: Business Image Publishing House Editor In Chief Waldemar SOBAŃSKI Managing Editor Robert GONTAREK Plastics Engineer of Translations Karol PEPLIŃSKI Art Director Remigiusz GAŁĄZKA Marketing Manager Joanna BIEGALSKA Webmaster Paweł Pasternak EPLA Fair, Subscription Conferences, Clubs Kamila KOS Other Business Image magazines: Chemical Review Rubber Review Composites Review Printing: Zakład poligraficzny Akcydens Subscription: Redakcja, Kolporter SA, Ruch SA, GarmondPress SA Plastics Review jest dostępny wyłącznie w prenumeracie. Redakcja nie zwraca materiałów nie zamówionych. Zastrzega sobie prawo do opracowywania redakcyjnego i skrótów materiałów przyjętych do druku. Za treść reklam redakcja nie ponosi odpowiedzialności. Nakład: egz.
19 Nowy standard doskonałości w globalnej dystrybucji Tworzymy globalne możliwości. Na dzisiejszym niezwykle konkurencyjnym i zglobalizowanym rynku, stale dążymy do znalezienia nowych sposobów tworzenia i dostarczania wartości dla naszych klientów. Jest powód, tysiące klientów mogą na nas polegać każdego dnia. UL. RUCHLIWA WARSZAWA TEL.: FAX:
20 Plastics R eport Folie sztywne: liderzy zwiększają udziały W 2012 r. europejski rynek sztywnych folii termoplastycznych osiągnął wydajność rzędu 4 mln ton, powracając do poziomu sprzed recesji. Na naszym kontynencie działa ponad 800 zakładów produkcyjnych, a 50 największych producentów dzieli między sobą 60 proc. rynku - głosi najnowszy raport brytyjskiej firmy badawczej AMI. B lisko 2/3 całej produkcji sztywnych folii trafia na rynek opakowaniowy, gdzie największym odbiorcą jest segment produktów mlecznych, wykorzystujący głównie polistyren, ale także PVC, PET i polipropylen. Większość folii przeznaczona jest do termoformowania, które w niektórych przypadkach realizuje bezpośrednio producent żywności, wykorzystujący technologię FFS (Form, Fill, Seal - formowanie, napełnianie, zgrzewanie). Najczęściej stosuje się wówczas polistyren lub PVC, rzadziej polipropylen, który nie jest w stanie osiągać wystarczająco krótkich czasów cyklu. Poza tym segment opakowań termoformowanych zwiększa popyt na tworzywo PET, głównie ze względu na jego wysoką przejrzystość oraz rosnący na niektórych rynkach opór wobec stosowania PVC. Coraz większe zastosowanie znajduje też polipropylen i wykonywane z niego tacki. Aplikacje pozaspożywcze obejmują m.in. blistry (gdzie PVC utrzymuje swój udział ze względu na swoją obojętność fizjologiczną, łatwość formowania i względnie niski koszt) i opakowania typu clamshell. Szybko rozwija się segment polipropylenu falistego, stanowiącego alternatywę dla standardowych opakowań kartonowych. Zużycie pozostałej produkcji (1/3) przypada na sektory: budowlano-kon- 20 l Plastics Review WRZESIEŃ 2013