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Injection Moulding Asia
Chinaplas 2016 review: Positive impact of China's automotive/packaging sectors
Also, download this story from the electronic issue here
China may have forecast a lower growth rate this year, but companies interviewed at the recent Chinaplas show in Shanghai are still expanding, against the back of the burgeoning packaging and automotive sectors and the country’s 13th five-year plan that will stimulate a new round of consumption and industrial upgrade. The show closed with a total of 3,323 exhibitors and 148,575 visitors from 160 countries and regions.
Automotive sector drives growth for polymer firms
With the global automotive market demand mainly driven by China, which has accounted for nearly 35% of global light vehicle sales in 15 years, it is little wonder that German. The HPM business unit makes Durethan polyamide (PA), Pocan polybutylene terephthalate (PBT) and Tepex thermoplastic fibre composites. such as air intake manifolds with integrated intercoolers or charged air ducts. Thus, Lanxess offers Durethan XTS (Extreme Temperature Stabilisation), which elevates the continuous service temperature of PA6 and PA66 up to 200°C and is an alternative to high-temperature polymers such as PPA or PPS.
Yet, another technology is Tepex fibre-reinforced thermoplastic composite sheets, with the company “flooded with enquiries” in Asia, according to Milan..
Lanxess has compounding capacity of 60,000 tonnes of PA and PBT in China and 20,000 tonnes in Jhagadia, India. It also has an Application Development Centre (APDC) in Hong Kong, dedicated to automotive parts testing. “We were the first ones to have this type of centre in Asia and are committed to upgrading equipment and software. It is very busy,” Milan explained. With China accounting for just 10 kg use of engineering plastics in a car, compared to 25 kg in Europe, Milan says Lanxess is on the right path for further growth in the region.
Meanwhile with Asia, accounting for 44% of its business, and China, 25%, polyamides-based performance materials supplier Solvay Engineering Plastics has taken the cue from Lanxess and is setting up an Application Performance Testing (APT) centre for parts testing in Shanghai. To start up end of this year, it is its first one outside Europe (it has a centre in France) and is aimed at accelerating the development and validation of Technyl PA applications said Marilyn Lye, Asia Region Director.
“The market is growing for automotive testing needs, not only in China but also in Asia. Most of parts testing is done in Europe so that is why we have decided to set up in China.” Solvay says its bench tests are developed and customised in collaboration with OEMs and major Tier 1 suppliers. It also includes CAE simulation capabilities with MMI Technyl Design and 3D printing with Sinterline Technyl prototyping.
The China facility will initially be equipped with installations for metal replacement applications, like under-the-hood parts on covers, followed by air intake and cooling systems, said Lye, adding that Solvay has invested in Shakers and impact resistance equipment.
Another company that is banking on the Chinese automotive sector is Germany-based Domo Chemicals, which recently opened a nylon compounding plant in Jiaxing, Zhejiang Province, with a capacity of 10,000 tonnes. Another 5,000 tonnes will be added in 2017, and another 5,000 tonnes in 2019. It will manufacture Domamid nylon 6 and 6.6 or high temperature nylon (HTN) functionalised compounds to serve the automotive, electrical and consumer goods industries; with Econamid and Oro engineering polymers range based on pre-consumer waste feedstock. The company says it has doubled sales in the past year, with automotive applications, especially under-the-hood applications, driving the increase.
Meanwhile, Italian firm Radici Plastics, which has a facility in Suzhou, recorded a growth of 40% last year. “During the last two years we have significantly strengthened our presence in the Chinese market,” said CEO Edi Degasperi. It is also installing its fourth extrusion line, to increase production capacity by about 5,000 tonnes/year and shoring up its sales network in eastern China.
“The outlook for 2016 is decidedly positive for us,” Degasperi said. “We are expecting a 20% increase in sales volume compared to the past year, and the automotive sector is going to be the driving force of our growth and new developments.” It was promoting speciality PAs, resistant to high temperatures, and longchain polymers featuring enhanced chemical resistance, at Chinaplas.
Growing from strength to strength
While some materials companies are consolidating, TPE maker Kraiburg TPE is expanding its business on accord of growth of sales from China... Though there are no plans for a facility in China, Ritter said the company will be expanding its warehouses to increase “logistical efficiency while providing better services.” He also added that more warehouses will be added on across China in the near future.
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DuPont Performance Materials is building a new plant in Guangming, Shenzhen, known as Apollo. It will produce the company’s Zytel nylon, Zytel HTN nylon, Crastin PBT thermoplastic resin, Delrin acetal resin, Bynel adhesive resin, Fusabond functional polymers and more. The former Shenzhen plant, which was set up some 18 years ago, will be shut down and production will be shifted to Apollo, which will be inaugurated at the end of June, said Philippe Hanck, Business Director, Asia Pacific.
“It will be the largest compounding plant for the company globally. The constructed area is quite significant and there is quite a lot of space available for future expansion,” said Hanck, adding that the company does not reveal capacity figures. “Furthermore the new facility will feature new types of extruders and equipment for compounding and will allow for flexibility, stability, quality of materials and faster turnaround time,” he rounded up. Hanck also said that the new plant is essential to service customers in a majority of locally produced products. “China represents at least half of the volumes we sell in this region and we sell in China to serve local customers. Germany, Japan and the US have many end users that specify our materials for products that are sold in China, so we also serve the global market,” he added. DuPont has a compounding plant in Singapore that also caters to the Asian market.
Another company upping capacity at its China plant is German additives maker Baerlocher. The US$5 million investment in the Changzhou facility, which has been producing calcium stabilisers for PVC since 2012, will be completed by year end. Baerlocher’s plant producing calcium stabilisers in Malaysia also supplies to China.
In China, the replacement of lead-based stabilisers by calcium-based alternatives is expected to gain momentum in 2016/2017, particularly for rigid PVC applications. China’s own plastics pipes association (CPPA) had targeted the transition for production of pipes and fittings without lead stabilisers as soon as the end of 2017.
In addition to the move away from lead, fittings stabilised with methyl tin face scrutiny due to water quality concerns, consequently, replacement by calcium-based stabilisers is expected here as well.
Thus, Baerlocher says its sales in China are already in excess of 20,000 tonnes/year. “Baerlocher is by far the largest company from outside China to significantly invest in supporting the Chinese plastics industry during its transition to calcium-based stabilisation,” said Wilson Wang, General Manager of Baerlocher Plastic Additives (Jiangsu). It is also focusing on raw material integration, with