Accounting for 10% of overall plastics consumption in Europe, sheet extrusion may not represent a high-volume market, but over the past few years it has become established as a segment with steady growth. In 2004, over 700 European suppliers consumed nearly 4m t of polymer for production of flexible, rigid, foamed or thin-wall sheet. In the industry´s production processes of extrusion, calendering, casting or compression moulding, nearly all thermoplastic materials are used.

The latest edition of “The Sheet Extrusion Industry” published by market research institute Applied Market Information Ltd. (AMI, GB-Bristol BS1 3QP; www.amiplastics.com) provides detailed information on how these flat plastic components are used in many different areas of application and in almost all consumer markets. The highest demand for these products has been identified in packaging, construction and transport.

Over the past few years, the market´s key driver has been demand for packaging sheet used for the production of thermoformed food containers as well as the energy-saving plastic insulation materials being increasingly used by the construction industry. Positive growth in this segment has also been generated by the applications advertisement panels and car components. For the current year, the market research experts predict a steady growth rate of about 2.6%.

Polystyrene (including XPS, EPS and HIPS) is the main material used in sheet extrusion, representing roughly one- third of the market, or 1.4m t in 2004. Despite this dominant position, polystyrene has lost market share to polypropylene in a number of applications such as barrier trays for food packaging. Despite the fact that the XPS market is rather small, particularly compared with EPS, it has been enjoying major growth over the past years, which is a direct result of tougher standards in insulation.

PVC and PP are the second largest group of materials used in sheet and rigid film production, both accounting for 20%. Still mainly used in food packaging, PP is increasingly superseding PVC in the area of car interior components. The most important area of application for PET sheet is salad, fruit and sandwich packaging. Foamed PET sheet is on the increase and frequently competes with materials such as rigid PS or PVC foams traditionally used by the construction and automotive industry.

Similarly impressive growth rates have been seen for polycarbonate. Multi-layer sheets often contain different PC types, which are used to replace glass. PC is competing with acrylics in rigid sheet applications such as sign posts, bus stops or roofing.

Sheet industry faces consolidation
There is still a wide variety of plastic sheet and film manufacturers operating throughout Europe, but according to AMI, this industry is participating in the ongoing consolida- tion process that has been affecting industries all over the world. At present, the highest number of production locations can be found in Germany, followed by Italy, France and the UK. In total, these four countries represent 60% of the European market. The fact that the top 50 players supply an estimated 70% of the market volume is another indicator of the high degree of concentration in this market. In view of increasing competition and pressure on prices, economics of scale have become a prerequisite for long-term success.

Pressure from end-users, who drive down costs and reeude the number of suppliers they will deal with, is another factor contributing to the already adverse market situation, says AMI. Due to the industry´s high dependence on leading grocery chains, the focus of sheet extrusion is also shifting towards eastern and central Europe. Western European producers are often required to follow their customers to new potential growth markets in eastern European, Asian or Latin American countries

Some companies in the sheet segment have a plastics consumption substantially in excess of 150,000 t/y. According to AMI, Klöckner Pentaplast (www.kpfilms.com), a leading supplier of rigid PVC film, is currently the largest European player in terms of plastics throughput. Rated in terms of value, however, the Finnish producer of thermoformed polystyrene packaging Huhtamaki (www.huhtamaki.com) is at the top of the list.

Book Service: “AMI´s Guide to the Sheet Extrusion Industry in Europe”, 3rd edition, 2005, 270 pages, A4 soft cover, paperback, EUR 310.00 + VAT: PIE-No. B 46920.