JEC COMPOSITES MAGAZINE - Issue #53 - November/December 2009 - 16

BUSINESS Market survey LFRTs: dynamic, fast-growing materials A recent study shows that long fibre-reinforced thermoplastic composites (LFRTs) are one of the most dynamic and fastest growing materials in the plastics industry today. lthough the materials have been around for several decades, advances in technology and increased acceptance in the automotive market have been the major driving forces for their rapid growth. LFRT competes with a wide range of materials, including short fibre-reinforced engineering plastics, glass mat thermoplastics (GMT), sheet moulding compounds/bulk moulding compounds (SMC/BMC), D-LFT and metals. This broad competitive arena will result in new applications and markets fuelling continued growth. New plants in high-growth markets Low-cost producers will win most of the volume growth. This is inevitable with production overcapacity, high growth rates, automotive volume influence and savy negotiations by buyers with knowledge of the benefits of LFT. Niche suppliers will seek margins in product differentiation. Not surprisingly, this current environment has attracted considerable attention from the investment community as well as potential customers interested in alternative materials. The LFT market is shifting from a seller “push” to a buyer “pull” situation. LFT is no longer an emerging technology, but neither is it mature. It is however showing some elements of commoditization. Automotive end users, as well as Tier 1 suppliers are well aware of the benefits of LFT. Material suppliers are repositioning their companies by developing innovative product marketing strategies. LFT suppliers are opening up manufacturing plants in high-growth markets such as China and Korea. For example, Ticona and RTP recently started to domestically produce LFT materials in China and SABIC has just opened up a plant in Korea. Innovative, creative LFRT producers The world's leading LFRT producers are also closely monitoring competitive activities in an attempt to navigate the landscape more adeptly and to capture as much share as possible. In virtually every respect, these producers are seeking to establish a tangible competitive advantage in the marketplace through the implementation of innovative strategies and creative product development capabilities. The dynamics of the LFRT industry extends beyond routine macro-economic elements of supply and demand. It is the relationship between buyer's needs and seller's capabilities as well as the macroeconomic forces at work that affect the market. It is how well and how efficiently the sellers meet the needs of the buyers that determine long-term success. In this newest competitive research study on the world's leading LFRT producers, “Worldwide LFRT Competitive Analysis and Leadership Study 2008”, the authors thoroughly profile the following seven companies with detailed competitive assessments of the following organizations: SABIC Europe BV, SABIC IP Ticona, RTP TechnoCompound, FACT , , and Chisso. More information: www.researchandmarkets.com This study, from Research and Markets is available for 6313€. A market survey, “Composite materials in automotive” published by JEC in 2009, complete this Automotive is one of the main application sectors for LFRTs, together with industrial and consumer goods. study. Contact: germain@jeccomposites.com jec composites magazine / No53 November - December 2009

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JEC COMPOSITES MAGAZINE - Issue #53 - November/December 2009

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #53 - November/December 2009