The pipe industry is one of the major plastic users in Europe with an annual volume in 2007 of 3.3m t, representing some 8% of total European consumption of polymeric materials. After a prolonged recession in the German construction industry and poor demand in many other countries, growth in the last few years has recovered slightly on the whole, reports market research company Applied Market Information (AMI, Bristol / UK; www.amiplastics.com) in its fourth edition of "AMI's guide to the thermoplastics pipe extrusion industry in Europe." The number of plastic pipe extrusion companies has risen very slightly – AMI identified 559 companies, compared with 545 in the third edition published in 2005.

Plastic pipe extrusion shows a higher level of consolidation than many other segments of the plastics industry. The result is an industrial structure of over 750 thermoplastic pipe extrusion plants in Europe, many of which are operated by companies owned by large groups, says AMI. Two key factors are responsible for this structure: First, because of transportation costs, pipes generally need to be produced locally and, second, in the volume business, the purchasing power and technological strengths of large groups can be leveraged to major competitive advantage.

The largest European producer of plastic pipes is still Wavin (Zwolle / The Netherlands; www.wavin.com). In 2007, the company posted sales of EUR 1.6 bn – see Plasteurope.com of 11.03.2008. Other members of the leading group are Pipelife International (Wiener Neudorf / Austria; www.pipelife.com), Uponor (Vantaa / Finland; www.uponor.com) and the Aliaxis Group (Brussels / Belgium; www.aliaxis.com).

With 51% of the market, PVC accounts for the majority of consumption, followed by polyethylene with 37%. Of the remaining 12%, polypropylene has the biggest share, reports AMI. PVC has actually lost some ground, having accounted for 56% of plastic pipes in 2004. The main beneficiaries have been polyolefins (HDPE, MDPE and PP). Usage of polyethylene grades has gone up by one percentage point in the last three years. In addition, the total volume across all polymeric materials is increasing, because other materials such as metal and clay are being pushed out by plastics.

The pipe market is divided into three main categories: gravity pipes, pressure pipes and industrial pipes. According to AMI's estimates, gravity pipes accounted for around 70% of total demand in 2007. This group includes sewerage, drainage, internal soil and waste, rainwater goods (guttering and down-pipes) and cable protection systems. Pressure pipes, which probably account for 20% of consumption, include gas and water transmission as well as hot and cold plumbing. With a share of around 5%, industrial pipes, primarily for the chemical industry, is the smallest segment.

For the current year, the AMI market research team anticipates further growth in Europe of around 100,000 t to reach a total plastic consumption figure of 3.4m t. Germany will have the highest plastic consumption for pipe extrusion, accounting for 16% of total demand or 550,000 t. This means that Italy will be pushed down into second place with 512,000 t (15%), although it still has the largest number of active companies, at 107.

Third place is shared by France and Spain, each with 11% of total European consumption. Poland (6%) is the largest market in central Europe. All leading western pipe producers have companies in Poland, says AMI. At the same time, the country is also experiencing the development of major local players such as Przedsiebiorstwo BarbaraKaczmarek (Gostyn / Poland; www.kaczmarek2.pl).

In its forecast for the coming years, AMI is looking cautiously at potential negative influences. Future growth in plastic pipes will depend on construction expenditure and the penetration of plastics in building applications. Demand in this segment is expected to grow at 2.3% a year between 2007 and 2012, which would mean that the market would expand to just under 3.7m t. In regional terms, there will be significant differences in the way the industry develops. For central and eastern Europe, market growth is expected to be around 5% a year, whereas the forecast for western Europe is very modest at less than 2%.

The forecast for the largest segment, gravity pipes, is relatively cautious – AMI expects growth segments such as rainwater management systems to be offset by weaker demand in building-related projects and cable protection. It sees better prospects in areas in which larger diameter waste water pipes have to be replaced. The outlook for gas and water pressure pipes is also generally positive.

Book Service:
„AMI´s Guide to the Thermoplastics Pipe Extrusion Industry in Europe" (English, Spanish, French, German), 4. edition, 2008, 187 pages, softcover: EUR 275.00 + VAT, PIE-No: 47314.