The European compounding industry posted only moderate production growth in 2005, when volumes moved up 1% to 7.87m t. As British market research group Applied Market Information (AMI, Bristol / UK; www.amiplastics.com) says in the ninth edition of its comprehensive "AMI´s Guide to the Thermoplastics Compounding Industry in Europe", business development varies widely among individual players. Companies ranging from small enterprises to major conglomerates are found in east and west, and portfolios encompass a vast number of different blends, often for very specialised applications.

While some larger plastics converters, particularly those in the PVC sector, often modify the colour and function of the polymers themselves, the majority of European plastics processors purchase ready-to-use compounds. The 680 suppliers of compounds listed by AMI can be divided into two main groups. The first includes integrated companies focused mainly on polymer production, and the second group comprises independent compounders.

Consolidation among European compounders
While there have been no changes to the total number of European compounders since the last AMI report published in 2003 (see Plasteurope.com Web of 28.10.2004), the industry itself has undergone considerable structural changes. Over the past three years, the number of integrated players has dropped from 135 to only 95, while the number of European independent companies has increased by 41 to 585. Only 15% of compounding companies produce polymers, mostly with a focus on film and pipe extrusion, yet they account for almost 75% of the market in terms of production volume. AMI expects that the consolidation process across all sectors will continue, and that this will be at the expense of independent companies.

In spite of the widespread fragmentation in the independent sector there is a clear trend for the establishment of larger pan-European corporations. The report lists Ravago (www.ravago.com), A. Schulman Europe (www.aschulman.de) and PolyOne (www.polyone.com) as the top three European players. The major players in the masterbatch segment are Clariant (www.clariant.com), Ampacet (www.ampacet.com) and Cabot (www.cabot-corp.com), while Polymer Chemie (www.polymer-chemie.de) is the largest independent PVC compounder in Europe.

PVC compounds dominate in central Europe
Comparing the western and central-east European markets AMI notes that there are considerable differences in regional structure. In the east, for example, PVC compounds are much more prevalent than in the west. Almost 50% of compounds are supplied by PVC producers such as Anwil (www.anwil.com.pl), BorsodChem (www.borsodchem.hu) and Spolana (www.spolana.cz). Their capacities for coloured compounds are limited, as most converters use masterbatches. Driven by new production facilities for cars and household appliances, demand for standard engineering compounds is still on the rise. Companies such as Silon, Inno-Comp, Rhodia and Zachern are among the leading compounders.

On the whole, the European compounding market has rather weak growth potential, according to AMI. However, the researchers are optimistic about PP compounds because of their heightened importance for automotive applications.

Asia´s compound market still going strong
China is still the largest market for thermoplastic compounds in Asia, accounting for almost 5m t of the regional total of about 8.4m t consumed in 2005. Most Asian markets are seeing continued strong growth, says the report. In 2005 alone, the number of Asian compounders rose from 641 to 831, according to the second edition of AMI´s "The Thermoplastics Compounding Industry in Asia" – see Plasteurope.com Web of 09.12.2004. It adds that both independent and integrated suppliers are expanding – a logical reaction to annual growth rates of 8% to 10%.

Book Service:
"AMI´s Guide to the Thermoplastics Compounding Industry in Europe" (Englisch/German), 9th edition, 2005, paperback: EUR 280.00 + VAT, PIE-No. B 47051.

AMI´s Guide to the Thermoplastics Compounding Industry in Asia", 2nd edition, 2005, paperback: EUR 570.00 + VAT, PIE-No. B 47066.