Released on: June 19, 2008, 5:55 am

Press Release Author: Ceresana Research

Industry: Chemicals

Press Release Summary: A new market study by Ceresana Research shows: The most
versatile of plastics thriving

Press Release Body: The body of the new Smart "Fortwo" is, for the first time, being
manufactured entirely from Polypropylene (PP), and similarly, the bumpers and
dashboard of the new Fiat 500. This most versatile of plastics is constantly being
used in an increasing amount of applications. Whether used in ice-trays, drinking
straws, washing machines, furniture, sporting goods, luggage, diapers, or syringes;
polypropylene is everywhere. As a light, easily recyclable material, it saves weight
and is often environmentally friendly. PP is increasingly being used as a substitute
for other, relatively expensive plastics.

Asian Pacific is Growing Rapidly

Especially in China and India, new factories are constantly being developed: Within
the next five years, manufacturing capacities in both countries will be expanded by
more than 7.5 million tons. Despite rising prices, the strong demand from the
packing and automotive industries, as well as from other growing sectors, such as
the construction industry, has led to a continuous increase in the consumption of
PP.

The Middle East is Becoming a Major Supplier

Saudi Arabia and the other Gulf States want to become suppliers of more than just
raw materials. Large PP production facilities are being constructed in order to
provide high-priced end products. PP manufacturing capacities will more than double
within the next five years. Although domestic demand within the Arab nations
continues to remain low, export values will be superior. The Middle East is
progressing to become one of the most important suppliers of PP.

Challenges for North America and Western Europe

Throughout Canada, the United States, and Western Europe, small PP factories with
capacities of less than 200,000 tons will continue to be closed. As a result of
this, over the next few years the importance of these countries as PP exporting
nations will continue to diminish. Since market prices are higher as compared to
China or Saudi Arabia, for example, traditional PP manufacturers are faced with
significant challenges. In order to develop innovative products, they need to
improve the efficiency of production through better manufacturing methods, expanded
distribution networks, a greater range of services for customers, and closer
cooperation with the manufacturing industry.

Worldwide Growth

As the newest study from Ceresana Research shows; in recent years, the worldwide PP
market carried a volume of 45 million tons and a value of approximately 65 billion
US-Dollars (47.4 billion Euros). During the next few years, there will be a
considerable increase in PP capacities and an improved supply of the preliminary
product, propylene. However, cost pressures are rising as a result of higher prices
for raw materials, energy, and transportation. The market research company is
expecting that PP revenues will more than double by 2016, on account of higher
prices and greater sales volumes.


The polypropylene market study provides 900 pages of essential data on this rapidly
growing market. It offers 100 company profiles for current and future manufacturers
around the world, and development within 64 nations is clearly detailed in specific
country profiles. Additionally, it provides information about technical
characteristics and application areas with regard to the different varieties of PP,
and also gives an overview of relevant laws and environmental regulations. The
market report is now available in English or German, exclusively from Ceresana
Research.

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About Ceresana Research
As an independent market research company, we are among the worldwide leading
specialists for commodities as well as the chemical and manufacturing industries.
Our multi-user market studies and individually commissioned reports provide the
foundation for strategic decisions for our clients.

Through the combination of competence, experience, innovation and quality, our
customers receive high-value knowledge on which to base their decisions. Our clients
from more than 40 countries include well-known retail and industrial companies in
the most diverse markets as well as renowned institutes and organisations.




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Press contact: Martin Ebner, M.A., m.ebner@ceresana.com
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