PIPE EXTRUSION
West European market 2.2m t in 1996 / PVC dominates / Polyolefin materials increasing / Main market in sewerage / Market controlled by multinational groups / Over 550 companies operating
Extruders of plastic pipes represent some of the largest processors in Western Europe, and the building industry is the second largest market for polymer materials after packaging. A new guide published by Applied Market Information Ltd (AMI House, 45-47 Stokes Croft, GB-Bristol BS1 3QP), looks in detail at the activities of these important processors.
During 1996, approximately 2.2m t of plastic pipes were produced in Western Europe. The majority of these products were manufactured in PVC and this material remains the dominant one used by pipe extruders, despite the growing environmental opposition to its use. The faster growing area of demand though has been for polyolefins. In 1996 641,000 t of polyethylene materials were used for pipe products of which some 80% were made up of HDPE/MDPE grades. These materials have been growing strongly in recent years as improving grades are finding increasing use in pressure pipe applications such as gas and drinking water pipes. Low density polyethylene tends to be used for agricultural drainage pipes. With considerable potential remaining to replace both PVC and ductile iron in small diameter pressure pipe applications, this sector of the market is expected to continue growing for the foreseeable future at around 2-3%/y. In contrast the market demand for PVC is not expected to advance at more than 1%/y.
Polypropylene has been a small but fast growing sector of the pipe market. It accounts for less than 5% of all material usage but it has been growing at rates of in excess of 10 %/y. The market in 1996 was 102,000 tonnes. Polypropylene pipe is mainly used as a replacement for copper piping in domestic hot and cold water plumbing.
Overall though the markets for pipe products have been relatively depressed in recent years, partly because of the weak building economy and also because of government cutbacks or privatisation programmes among the utilities. There have been some bright spots notably in the demand for telecommunications conduit used in the laying of cable and fibre optic networks.
The largest application for plastic pipe is in sewerage, drainage and guttering, which accounts for over half of the pipe market. PVC tends to be the main resin used. Thereafter the principle market is for high pressure water pipe. Here the market is more evenly split between PVC and polyethylene resins, although PE is expected to become the dominant material in this market in the near future. The gas market is largely a polyethylene one, while polypropylene tends to be used for heating and plumbing applications.
The pipe extrusion sector is dominated by large groups. This is partly because the customers themselves tend to be large public (or increasingly private) utilities or civil engineering firms which require large volumes of product made to strict criteria and standard. It is also a highly competitive industry with relatively low margins. Extrusion of pipe is a relatively simple process and producers are increasingly reliant on maintaining high volume throughput in order to cover fixed costs. Nearly half of all the companies listed in the AMI guide are operating as part of a group and four of the largest, Alphacan, Pipelife, Uponor and Wavin account for nearly 12% of the factories listed.
BOOK SERVICE: "AMI's guide to the thermoplastics pipe extrusion industry in Western Europe" 1st edition 1997, 245 pages, A4 format, paperback, price DEM 395.00 (+VAT/postage): PIE-No. B 41040.
During 1996, approximately 2.2m t of plastic pipes were produced in Western Europe. The majority of these products were manufactured in PVC and this material remains the dominant one used by pipe extruders, despite the growing environmental opposition to its use. The faster growing area of demand though has been for polyolefins. In 1996 641,000 t of polyethylene materials were used for pipe products of which some 80% were made up of HDPE/MDPE grades. These materials have been growing strongly in recent years as improving grades are finding increasing use in pressure pipe applications such as gas and drinking water pipes. Low density polyethylene tends to be used for agricultural drainage pipes. With considerable potential remaining to replace both PVC and ductile iron in small diameter pressure pipe applications, this sector of the market is expected to continue growing for the foreseeable future at around 2-3%/y. In contrast the market demand for PVC is not expected to advance at more than 1%/y.
Polypropylene has been a small but fast growing sector of the pipe market. It accounts for less than 5% of all material usage but it has been growing at rates of in excess of 10 %/y. The market in 1996 was 102,000 tonnes. Polypropylene pipe is mainly used as a replacement for copper piping in domestic hot and cold water plumbing.
Overall though the markets for pipe products have been relatively depressed in recent years, partly because of the weak building economy and also because of government cutbacks or privatisation programmes among the utilities. There have been some bright spots notably in the demand for telecommunications conduit used in the laying of cable and fibre optic networks.
The largest application for plastic pipe is in sewerage, drainage and guttering, which accounts for over half of the pipe market. PVC tends to be the main resin used. Thereafter the principle market is for high pressure water pipe. Here the market is more evenly split between PVC and polyethylene resins, although PE is expected to become the dominant material in this market in the near future. The gas market is largely a polyethylene one, while polypropylene tends to be used for heating and plumbing applications.
The pipe extrusion sector is dominated by large groups. This is partly because the customers themselves tend to be large public (or increasingly private) utilities or civil engineering firms which require large volumes of product made to strict criteria and standard. It is also a highly competitive industry with relatively low margins. Extrusion of pipe is a relatively simple process and producers are increasingly reliant on maintaining high volume throughput in order to cover fixed costs. Nearly half of all the companies listed in the AMI guide are operating as part of a group and four of the largest, Alphacan, Pipelife, Uponor and Wavin account for nearly 12% of the factories listed.
BOOK SERVICE: "AMI's guide to the thermoplastics pipe extrusion industry in Western Europe" 1st edition 1997, 245 pages, A4 format, paperback, price DEM 395.00 (+VAT/postage): PIE-No. B 41040.
15.10.1997 Plasteurope.com [19106]
Published on 15.10.1997