Growth in global automotive plastic market to be propelled by demand from Asia Pasific

MOSCOW (MRC) -- Asia Pacific is the largest market for automotive plastic followed by Europe and North America. Higher concentrations of passenger vehicle manufacturing industries and growing demand of passenger cars, three-wheeler and two wheelers in China and some of the other countries of Asia Pacific such as India and Japan are contributing to the industry growth, reported Plastemart.

Automotive Plastic holds the key to a host of safety and performance advancement in modern cars, minivan, SUVs and even HMVs. Automotive plastics are generally durable, strong, recyclable, scratch resistance, resistance to abrasion, improve vibration and noise control and allows design, molding and integration of components in automobiles. In modern cars plastic constitute almost 50% of the total volume of the car but contribute only 10% of the total weight of cars which makes cars lighter and increase the overall fuel efficiency. Modern automotive plastic however have much broader application including passenger safety, passenger convenience and overall manufacturing cost reduction. Automotive plastic are used in bumpers seats, dashboard, fuel systems, body panels, under-bonnet components, interior trim, electrical components, exterior trim, lighting, upholstery and liquid reservoirs.

Further, the developments in the field of tough and durable automotive plastic are expected to increase use of plastic in modern cars. As for interiors, plastics have proven to be a great material for making comfortable, durable and aesthetically gratifying interior components.

Asia Pacific is the largest market for automotive plastic followed by Europe and North America. Germany and Italy are the leading manufacturers of passenger vehicle in Europe whereas USA accounts for single largest market in North America.

The key drivers of automotive plastics markets are potential of automotive plastic in mass reduction of fuel consumption by reducing the overall weight of the vehicle, increasing prices of iron and steels and improved strength and durability of modern automotive plastic.

The major factors restraining the growth of market are high material cost and increasing investment in plastics-alternative material research (such as carbon fibers) especially by automobile companies. The opportunities for automotive plastic is cited in the development of new materials such as polymethyl methacrylate (PMMA), Lighted PP, blended thermoplastic materials, biodegradable plastics and reinforced composites such as "GB 266 WG", a hard, light material with perfect heat resistance and mechanical properties, suitable for automotive parts used in high stress areas.

As MRC wrote before, as per Transparency Market Research, growing demand from automotive and electronics is expected to boost growth in the global plastics market. Thus, demand is expected to rise exponentially in Latin America, due to this region’s flourishing automobile industry. Moreover, the demand for molded plastics is currently high in Asia Pacific, which is one of leading regions for automotive manufacturing at present, with a 35% share in 2012.
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Global wood-plastic composites market anticipated to reach USD5.39 bln in 2019

MOSCOW (MRC) -- The global wood-plastic composites market was valued at USD2.64 bln in 2012 and is anticipated to reach USD5.39 bln in 2019, expanding at a CAGR of 10.8% between 2013 and 2019, as per Plastemart with reference to Transparency Market Research.

Increasing demand for wood-plastic composites in the manufacture of building & construction products is estimated to boost the overall wood-plastic composites market over the next few years. Additionally, rising demand for wood-plastic composites to manufacture several interior components of automobiles is projected to fuel market growth. Wood-plastic composites help in reduction of the overall weight of the vehicle and in turn enhance its fuel efficiency. Furthermore, implementation of stringent environmental regulations restricting the use of 100% plastic or wood is expected to boost the demand for global wood-plastic composites. However, the development of other natural fiber composites such as straw fiber, fruit fiber, leaf fiber and seed fiber is likely to hamper the overall growth of wood-plastic composites market in the near future.

Polyethylene wood-plastic composites dominated the global wood-plastic composites market in 2012. The major application of polyethylene wood-plastic composites is in building & construction industry. Polyvinyl chloride wood-plastic composite is expected to be the fastest growing product segment of the market during the forecast period owing to its growing application in window and decking applications.

Building & construction was the largest application segment of the wood-plastic composites and accounted for over 70% of the total volume demand in 2012. Exterior building & construction products manufactured using wood-plastic composites offer high resistance to staining, fading and scratching. Additionally, automotives is expected to be the fastest growing application of the market owing to the increasing substitution of conventional materials such as metals by wood-plastic composites.

North America was the largest market for wood-plastic composites in 2012 and the trend is expected to continue into the forecast period. However, Asia Pacific is anticipated to witness the fastest growth in the market over the forecast period. The Asia Pacific wood-plastic composites market is expected to grow at a CAGR of over 10% between 2013 and 2019. China plays a key role in driving Asia Pacific market due to huge production capacities for wood-plastic composites products.
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Jurong Aromatics hopes to restart operations by negotiating debt deals

MOSCOW (MRC) -- Jurong Aromatics Corp., operator of one of the world’s largest petrochemical plants, can't service its interest payments and is negotiating a debt restructuring with bankers amid a plunge in oil prices, people familiar with the matter said, according to Hydrocarbonprocessing.

Operations at the USD2.4 billion plant have been stalled since December as the Singapore-based group remains locked in talks with lenders including BNP Paribas and Standard Chartered, as well as suppliers Glencore, BP and SK Energy, the people said, asking not to be identified because the details are private.

Production began in September last year, according to Jurong Aromatics’s website, and the plant was targeting to produce 1.5 million tpy of aromatics and 2.5 million tpy of transportation fuels.

Singapore’s national plan to leverage upon its geographical position and become a regional refining hub has been dented by the recent falls in commodity prices. From the establishment in 2001 of tax breaks for trading companies to the hollowing of part of the island to store oil, the country has worked to become one of the world’s biggest energy hubs.

Jurong Aromatics had USD1.53 billion in liabilities and USD68.7 million of accumulated losses as at the end of 2013, according to the company’s latest available financial records. BP, Glencore, SK Energy have secured claims against the firm, while BNP Paribas led a USD1.73 billion loan facility in 2011 that has yet to be repaid, the records show.

As MRC wrote previously, in mid-December 2014, Jurong Aromatics Corp shut its aromatics plant in Singapore for around 30-45 days. Located in Jurong Island, Singapore, the plant has a PX production capacity of 800,000 mt/year, benzene production capacity of 400,000 mt/year and OX production capacity of 200,000 mt/year.
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Chemours to cut titanium dioxide capacity, close Delaware plant

MOSCOW (MRC) -- Chemours Co., the performance-chemicals company spun off from DuPont Co. in July, said Thursday that it will close its titanium dioxide plant in Delaware as it struggles with weak titanium dioxide pricing, as per the company's press release.

The Edge Moor plant, which makes titanium dioxide for the paper industry, has 200 employees and 130 contractors. Chemours said it would redeploy employees where possible.

Chemours said it would also shut down a titanium dioxide line at its plant in New Johnsonville, Tenn. Together, the moves will cut its titanium dioxide capacity by 150,000 metric tonnes.

Chemours expects the closures to reduce annual costs by USD45 million. The company will book USD110 million in charges in the third quarter related to the closures, with another USD75 million to USD85 million in restructuring and severance charges over the next few years.

The announcement comes two weeks after Chemours announced plans to cut USD350 million in costs by 2017 and review options for its chemical solutions business.

Chemours's products are used in things like plastics, coatings and air conditioning. Its brands include Teflon, Ti- Pure and Krytox. The company has struggled lately with weak titanium dioxide pricing and currency headwinds.

As MRC informed before, DuPont has announced that the US Securities and Exchange Commission has declared effective the Registration Statement on Form 10 of The Chemours Company. The Registration Statement on Form 10 includes information regarding the business and spin-off of Chemours, which is expected to be completed on July 1, 2015. In addition, on June 12, 2015, the New York Stock Exchange authorized Chemours for listing on the exchange, with "regular way" trading to commence on July 1, 2015.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
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Duty on SAN to be reduced from 1 September

MOSCOW (MRC) -- The duty on styrene acrylonitrile copolymers (SAN) will be reduced by 1.2% from 1 September 2015, according to ICIS-MRC Price report with reference to the decision of the Board of the Eurasian Economic Commission.

According to the decision of the Eurasian Economic Commission No. 44 dated 15 July, 2015, the import duty on SAN will be 6.5% from 1 September. The effective rate will remain at 7.7% until 1 September. VAT for this group of products will remain unchanged and will be 18%.

It should be noted that import duties on other polystyrene (PS) and styrene plastics remained unchanged.

To date, SAN is not produced in Russia. SAN imports to Russia totalled a little over 800 tonnes from January to July 2015. SAN imports fell by 2.4 times year on year (1,920 tonnes in January - July 2014). German division of Styrolution made small shipments this year, whereas South Korea's Kumho was the largest supplier in 2014.
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