Global polymer and thermoplastic micro molding market to register CAGR of over 14% by 2019

MOSCOW (MRC) -- In 2012, the global polymer and thermoplastic micro molding market held a valuation of USD308 mln and is forecast to be valued at USD763.6 mln by 2019. The polymer and thermoplastic micro molding market is expected to grow at a positive CAGR of 14.2% during the period between 2013 and 2019, reported Plastermart with reference to Transparency Market Research.

The cost-effectiveness of these products has led to a rise in demand from the polymer and thermoplastic micro molding market. The increase in the number of minimally invasive surgeries (MIS) and advanced technologies in the fields of micro optics and micro fluids has further boosted the growth of the polymer and thermoplastic micro molding market. However, regions such as the Middle East, Southeast Asia, and Latin America may not contribute significantly to the growth of the polymer and thermoplastic micro molding market, due to the lack of awareness.

The polymer and thermoplastic micro molding market is segmented depending upon the usage of micro molding products across various industries such as automotive, medical, telecom fiber optics, micro drive systems and control, and others. In 2012, the medical and healthcare industry led the demand from the polymer and thermoplastic micro molding market. 35% of the demand for polymer and thermoplastic micro molded products came from this industry. Due to the rapid growth of micro fluidics technology, this segment of the polymer and thermoplastic micro molding market is expected to grow rapidly from 2013 to 2019. The extensive use of micro molded products in the automotive industry is expected to cross the USD150 mln mark by 2019. The rising demand for micro molding products in automotive applications can be attributed to the increase in the manufacture of automobiles throughout the world.

In the forecast period, the growth of the polymer and thermoplastic micro molding market in the telecom fiber optics segment will occur at a rapid CAGR of 13.8%, and the micro drive systems and control segment would grow at an even higher CAGR of 14%. Due to the high demand for micro molding products across various industries and thanks to its supportive environment for technological advancement, North America dominates the global polymer and thermoplastic micro molding market.

In 2012, approximately 44% of the total revenue was contributed by North America. In Europe, Germany alone accounts for almost half of the total polymer and thermoplastic micro molding market owing to its leading position in automobile manufacturing and increasing healthcare expenditure.

The polymer and thermoplastic micro molding market in Europe is forecast to grow at a CAGR of 13.5% from 2013 to 2019. By 2019, the European polymer and thermoplastic micro molding market is expected to be valued at USD219 mln. Japan dominates the global polymer and thermoplastic micro molding market in the Asia Pacific region. The polymer and thermoplastic micro molding market in Asia Pacific is expected to grow at a CAGR of 14.8% during the forecast period.

We remind that, as MRC informed before, global thermoplastic composites end product market is expected to reach at USD9.9 bln in 2020 at a CAGR of 6.5% over the period of 2015 to 2020, as per Markets and Markets.
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MOSCOW (MRC) -- The polymer fillers market size is estimated to reach USD53.10 bln by 2020 at a CAGR of 3.3% between 2015 and 2020, as per Plastemart.

High-quality optical properties, improved impact strength, and ability to replace expensive plastic resins make it the preferred material for various applications. Polymer fillers provide industries with immense development opportunities of newer materials, which have enhanced properties and improved molding properties, thus driving the market growth.

The growing popularity of polymer fillers in various types plays a significant role in driving the market. Salts, silicates, oxides, and hydro-oxides are its most important types. The rising demand for low-cost fillers in countries, such as China, and India, is projected to increase their demand in the coming years. The Indian government has started investment promotion programs to assist companies that are developing and manufacturing salts, oxides, and silicates pushing the growth of this market upward. The Chinese government is focusing on the growing manufacturing sector that is driving the consumption of plastics-related products, domestically and hence increase the demand for polymer fillers in the Asia-Pacific region.

Asia-Pacific was the largest and North America was the second-largest market for polymer fillers in 2014. Asia-Pacific also registered the highest growth rate between 2015 and 2020. Innovations, developments, and demand in the consumer industries for better products are directly affecting the rise in the use of polymer fillers. The excessive growth and innovation, along with industry consolidations, are projected to ascertain a bright future for the industry in the region.

The high demand in Asia-Pacificis due to growth in the building & construction as well as packaging industries in the last few years. There is an increase in the use of polymer fillers for building & construction, packaging, and automotive industries in Asia-Pacific due to the continued industrialization and rise in the manufacturing sector of the region.

We remind that, as MRC wrote previously, growing demand from automotive and electronics is expected to boost growth in the global plastics market, as per Transparency Market Research.
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MOSCOW (MRC) -- Royal DSM N.V., a Life Sciences and Materials Sciences company, said its first-quarter EBITDA from continuing operations increased 19 percent to 296 million euros from 248 million euros in the prior year, as per Nasdaq.

Sales from continuing operations for the quarter were 1.913 billion euros, up 1 percent from last year's 1.886 billion euros in the year-ago period, due to 5 percent higher volumes, offset by 3 percent lower prices and 2 percent negative foreign exchange effects. Organic growth was 2 percent.

Looking ahead, DSM maintained its full-year outlook. The company aims to deliver increased full-year EBITDA and ROCE in line with the targets set out in its "Strategy 2018: Driving Profitable Growth".

We remind that, as MRC informed before, in May 2015, Royal DSM partnered with U.S. chemical maker Ascend Performance Materials Inc. to supply compounds based on polyamide 66 (PA66). Under the agreement, Houston, Tex.-based Ascend becomes the strategic supplier to DSM for PA66 base-polymer used as raw material for Akulon PA66 compounds for engineering plastics applications. In addition, DSM will distribute Ascend’s portfolio of PA66 compounds sold under the brand name Vydyne.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.

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MOSCOW (MRC) -- Moody's Investors Service has today confirmed the Ba1 corporate family ratings (CFRs) and Ba1-PD probability of default ratings (PDRs) of major Russia-based fertilizer producer, OJSC PhosAgro, and Russian gas processing and petrochemical business, Sibur Holding, PJSC.

The outlook is negative on these ratings. At the same time, Moody's confirmed the Ba2 CFR and Ba2-PD PDR of leading potash producer, Uralkali PJSC. The ratings outlook is stable.

Confirmation of the ratings of PhosAgro, Sibur and Uralkali reflects Moody's view that the companies' businesses remain sufficiently resilient to Russia's weakening economy and finances on the back of their strong export potential, sustainably low-cost position and high margins, which are helped by the rouble depreciation and solid liquidity.

At the same time, Moody's notes that the companies' resilience does have its limits given that their assets are concentrated in Russia and the alignment of the Russian country ceiling for foreign currency debt with the sovereign rating.

Even for these companies, which have effectively dealt with their medium-term foreign currency refinancing needs, a severe deterioration of the operating environment in Russia and increasing pressures at the sovereign level might lead to a substantial weakening in their credit profiles.

Country risk combined with the companies' exposure to the weak global commodity markets and some company specific issues, like Sibur's large-scale investment projects resulting in limited credit headroom and Uralkali's higher corporate government risk, will pressure the companies' ratings in the next 12-18 months.

The negative outlook on the companies' ratings is in line with the negative outlook on the sovereign rating. A potential downgrade of Russia's sovereign rating may result in the lowering of the country's foreign and/or local currency bond ceiling and, as a result downgrades of the companies' ratings.

The negative outlook on Sibur's ratings also takes into account a delay in the company's deleveraging as it makes significant investments as part of its ZapSibNeftekhim project.

ZapSibNeftekhim's project is designed to operate a steam cracker (by Linde AG, Germany) with a capacity of 1.5 mtpa of ethylene, around 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF), along with units with a total capacity to produce 1.5 mtpa of various grades of polyethylene (by INEOS, UK) and a polypropylene unit of 500 ktpa (by LyondellBasell, Netherlands).

SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.
MRC

MOSCOW (MRC) -- The global automotive composites market will be worth USD12.1bn in 2016, as opportunities for light-weighting, requirements for fuel efficiency and global regulations for emission reduction drive the incremental penetration of composites into passenger cars, as per Plastemart with reference to Asdreports.

The author of the report commented that: "In 2016 the market for automotive composites is progressing strongly, boosted by increasingly advanced production techniques which are facilitating higher volume production of composite materials. The success of composite-rich models such as the BMW i3 provides further positive stimuli to the market, and indicates the beginning of a trend towards mid-price models featuring higher quantities of composite materials.

The automotive composites market is currently characterized by a higher level of concentration in the premium vehicle segment, due to the current high costs of manufacturing composite materials. Over the forecast period, we will see emerging more cost-efficient methods of production, observing a change in this trend as light-weighting and fuel efficiency are targeted more directly by OEMs.

The automotive composites market represents high potential and it is expected to record considerable growth in the forecast period. Significant partnerships between OEMs and composite manufacturers will help to boost investment and research, facilitating cost-efficient mass production. This is the biggest restraint the market faces. Additionally, the issues and difficulties associated with the recycling of composite materials are being targeted, and healthy progress is already being made in this regard, which will continue throughout 2016-2026."

As MRC reported earlier, the global automotive composites market was valued at USD3062.7 mln in 2014, which is expected to increase to USD7,019.7 mln by 2022 at a CAGR of 8.8%, as per Persistence Market Research. Asia-Pacific is the largest market for automotive composites. The Asia-Pacific market is expected to account for 52.4% by 2022.

The global automotive composites market is highly consolidated, with the top four players - Toray Industries, Toho Co. Ltd., Mitsubishi, and SGL - accounting for between 70 and 75% market share. Other players operating in the global automotive composites market include Cytec Industries Inc., SAERTEX GmbH & Co. KG, Koninklijke Ten Cate N.V., Johns Manville, Johnson Controls, Inc., Scott Bader Company Ltd., Teijin Limited, E.I. du Pont de Nemours and Company, and UFP Technologies, Inc.
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