PLASTIC PIPE INDUSTRY
Some 2.8 t/y of polymer consumed / Structural change through mergers and joint ventures / Trend to larger units / Fluctuation in starting materials prices hits margins / The 50 largest players
Even experts are often surprised to learn that the pipe sector is one of the largest consumers of polymers. According to a market survey published by the British market research organisation Applied Market Information Ltd. (AMI, GB- Bristol), the European plastic pipe sector consumed 2.8 tonnes of polymer worth around EUR 11m in 1999. Since 1993 the market has seen annual growth of around 4%. PVC is the dominant polymer used, with a share of 65%. However, polyolefins have been making increasing inroads since 1993, posting annual growth rates of around 6%. In the six-year time frame, polyolefins have increased their market share from 31% to 35%.
Over the past ten years, the industry´s structure has undergone unprecedented change. For many years, most companies were deeply in the red, due to ruinous competition and insufficient productivity. Through acquisitions and joint ventures, the trend has shifted to larger corporate units with more resources in all market segments, one of the prerequisites for higher profitability. Yet even today margins of pipe producers are at the bottom range of the plastics processing sector. One of the biggest problems remains the fluctuation of starting materials prices, which represent an overproportionately high share of production costs.
As AMI notes in its new publication “Plastic Pipe Extruders – A review of Europe´s 50 largest players”, there are currently some 655 manufacturers of plastic pipe (excluding GRP). Some 40% of the plants belong to the 50 largest companies, which account for some 80% of market volume. Most of the pipe producers (151) are in Italy, where small and medium-sized companies dominate. Next in line are Germany (82), Scandinavia and Poland (66 each), Spain (44) and the UK (42).
AMI´s latest publication contains detailed reports on the European market´s 50 largest players, including sales and plastic consumption (specified as PVC or polyolefins) for individual plants. There is additional information on non-European pipe production as well as on company activities outside the pipe sector.
Europe´s leading pipe manufacturers by far are Wavin (total annual plastics consumption 296,000t) and Pipelife (243,000t). Ranking third and fourth are Alphacan (195,000t) and Uponor (188,000t). Plastics consumption of the next six players ranges from under 100,000t down to 50,000t.
• Book Service: “Plastic Pipe Extruders – A review of Europe´s 50 largest players” (English), 2000 edition, 130 pages, A4, softcover, original price EUR 498,51 + VAT + postage: PIE-No. B 44495.
Over the past ten years, the industry´s structure has undergone unprecedented change. For many years, most companies were deeply in the red, due to ruinous competition and insufficient productivity. Through acquisitions and joint ventures, the trend has shifted to larger corporate units with more resources in all market segments, one of the prerequisites for higher profitability. Yet even today margins of pipe producers are at the bottom range of the plastics processing sector. One of the biggest problems remains the fluctuation of starting materials prices, which represent an overproportionately high share of production costs.
As AMI notes in its new publication “Plastic Pipe Extruders – A review of Europe´s 50 largest players”, there are currently some 655 manufacturers of plastic pipe (excluding GRP). Some 40% of the plants belong to the 50 largest companies, which account for some 80% of market volume. Most of the pipe producers (151) are in Italy, where small and medium-sized companies dominate. Next in line are Germany (82), Scandinavia and Poland (66 each), Spain (44) and the UK (42).
AMI´s latest publication contains detailed reports on the European market´s 50 largest players, including sales and plastic consumption (specified as PVC or polyolefins) for individual plants. There is additional information on non-European pipe production as well as on company activities outside the pipe sector.
Europe´s leading pipe manufacturers by far are Wavin (total annual plastics consumption 296,000t) and Pipelife (243,000t). Ranking third and fourth are Alphacan (195,000t) and Uponor (188,000t). Plastics consumption of the next six players ranges from under 100,000t down to 50,000t.
• Book Service: “Plastic Pipe Extruders – A review of Europe´s 50 largest players” (English), 2000 edition, 130 pages, A4, softcover, original price EUR 498,51 + VAT + postage: PIE-No. B 44495.
07.09.2000 Plasteurope.com [17196]
Published on 07.09.2000