AN OVERVIEW OF THE GRP MARKET IN SOUTH AFRICA

A MITCHELL

AFI REINFORCEMENTS DIVISION

- AN OVERVIEW OF THE CRP MARKET IN SOUTH AFRICA -

By: A Mi tchell

DIVISIONAL EXECUTIVE OFFICER OF AFI REINFORCEMENTS DIVISION

- AN OVERVIEW OF THE GRP MARKET IN SOUTH AFRICA -

The

title of this paper is an overview of the Glass Reinforced Plastics in

the

South

African

of

points

interest

pertinent

In addition

highlighted.

Comparisons with other cow1try markets on

market.

to

the

South

African

market

to this overview certain opportunities

will

be

e~ist

in

the South African market which will also be addressed.

The

South

African

significant mentioned

market

changes

in

together

the

with

for

glass

last other

few

reinforced years.

changes

which

plastics has seen some These changes will be have

occurred

and

in

particular the type of products which are used.

- GROWTH OF THE CRP !'1ARKET IN SOllTH AFRICA ..

Figure in can 8.3%

I:

South be

Illustrates Africa

seen

the

the growth of the Glass Reinforced Plastics market

since 1972 and projects the growth through to 1994. industry

has

shown a positive growth in real terms of

until 1989 •

.INDEX 1973 .. 100

350~-------------------------------------------'

300+------------------------1~~----

200

As

-l-----------I~lIIIIII_lIiI!IIIf-lIiI!IIIf-lIiI!IIIf-lIiI!IIH!IIIt-IIJ-{\\1--l\\l- ...W-"'\'i---------;

100 ___IIII_IIII......_IIIII-IIII-IIIIHllHlllf-IIIIIHII-lIIIII--IIIIt--tIIII-

O~~~~~~~~~~~~~~~~~~~~._r_r_IIII~

7374757677787980818283848586878889909192

YEAR

TOTAL SA GRP MARKET ••• /2

- 2 -

This

growth

unless

is

interest

not

expected

rates

come

to

be maintained over the next four years

down and the economy improves.

However, the

growth rate is expected to be better than the growth rate for the country.

- MARKET SEGMENTS The

market

appliances

is

broken

(equipment) ,

up

into

construction,

electrical/electronics,

corrosion, marine,

transport, mining

and

consumer/recreation. Figure 2: Illustrates the market segments

CONSTR.

TRANS. 29.3%

32.7%

MINING

2.6%

CON/REC

7.0%

3.0%

APP. EQ 6.2%

In

South

Africa,

glass

and

transport

construcion 32%

reinforced

plastics are used extensively in the

markets.

The construction market accounts for

which

involves

such products as fibreglass sheeting for greenhouses,

industrial

lighting

in factory roofs and in the domestic area for awnings

and

ports

car

reinforcement

of

etc.

Other

products

in

this

market

acrylic

baths

and

include

showers

etc.

The transport market

includes the PX 123 Fast Freight containers.

SLIDE

• .. /3

the

- 3 -

C&nopi,,,,ci:

more for

bakkies,

fo:

conventional

muffler

fibre

used in car silencers and then the

automotive components like bumpers for cars, cab fronts

trucks and busses.

This market has tremendous potential which will be

focused on later. The

corrosion

market

accounts

for

13%.

This

includes

tanks, pipes

extruded sections used mainly in the chemical and agricultural industry. The

appliance

are

commonly

fridges,

industry accounts for 6% of the market. found

washing

thermoplastic offers

in

this

machines,

resins

exceptional

(eg

market hair

are

dryers

handles,

opportunities

a

variety of parts on stoves,

made

switches, replacing

Products which

either trays,

from thermoset or etc).

traditional

This market

materials

like

stainless steel for reinforced plastics. The

electrical

switch

boxes,

industry accounts for 5.7% which includes such products as battery

cases,

eletric

lamp

posts

and other electronic

accounts for 3% of the market.

This market includes

assemblies. The

marine

all

types

industry

of boats from canoes, ski boats, pleasure launches, speed boats

to ocean going yachts. The

consumer

and

recreatian

industry

accounts

for

7%

of the market.

Products include various sporting equipment, garden furniture etc. The

mining industry accounts for a very small part of the market, ie 2.6%.

However,

the

construction from of good

the the

products

included

and corrosion.

rest

in

this segment could be included under

The reason for separating the mining industry

is that it has tremendous potential for the future because

recent developments made in phenolic resins.

flame

spread

properties

and

minimal

release

Phenolic resins have of toxic fumes when

burning, compared to other resin systems. A comparison of the South African market sectors with those in the USA and Brazil show some significant differences.

• •• /4

- 4 -

Figure

3: Illustrates a comparison in market sectors between South Africa,

Brazil and the United States.

oonR UI.'

MINING 2.6

QIl,WHfUI7.8

CONS/REC 7 TRANSP 29.3

MARINE 3.02

ELEO 6.7

APPL G.a

e LlO

APPL 6.2

SOUTH AFRICA

WAftIHI: 7."

....

BRAZIL

CORA 18.2

TRANBP 26.4

aR.WHEELS 6.1 AEROBP 1.'5

ELEC 8.8

MARINE 19.2

USA

The

glass

dependency the

market

industries transport

reinforced on

the

plastics

construction sector.

significantly takes

market

place.

industry.

when.a

in

South

Africa

shows

a large

This sector therefore impacts on

slump in the building and construction

The Brazilian market is heavily dependent on the The

marine

market

plays a very big roll in the

United States.

• •• /5

- 5 -

- PRODUCTS Figur~~:

~llustrates

the major product groups as % of total sales

CS M 60.2

MFFL 2.7

CS 4.5

ROVINGS 25.7

NOTE: All figures are shown 86 percentages (,,)

The

products

strand

most

commonly

mat, rovings

used in the South African market are chopped

chopped strands, woven ravings, various cloths and to

a very small degree, milled fibre and flake glass. Chopped

strand

mat

(SLIDE)

is used extensively in the South African

market and accounts for 60% of the product Ravings

(SLIDE)

chopped strands woven ravings Muffler

account for 26% (SLIDE)

(SLIDE)

(SLIDE)

mix~

for 4.5% for 6.9% and

for 2.7%.

The product mix has changed considerably when compared to 1985 •

••• /6

- 6 -

Figure 5: Comparison of major products groups 1985 vs 1989

CSM 50

CSM eO.2

CS 2.7 MFFL 4.5 ROVINGS 35

ROVI N GS 25.7

1985

1989

NOTE: All figures a.re shown in percentage (%) There has been a very marked shift from ravings to chopped strand mat •

•.• !7

- 7 -

- MAJOR PRODUCT GROUPS IN RSA COMPARED WITH BRAZIL - AS % OF TOTAL SALES Figure 6: Compares the product mix with the Brazilian market

CSM

60,2

ROVING 66,2

\({:;~~ MFFL 2,7

MFFL (5,9

CS 4,6

W/ROV 2,6

ROVINGS 26,7

BRAZIL 1988

SOUTH AFRICA 1989

NOTE: All fIgures shown percentages ('ill)

88

The difference lies in chopped strand mat, rovings and chopped strands. Rovings and

are used for spray up operations for panel manufactuse, pultrusion

filament

some

winding.

These processes require capital investment and in

instances fairly significant capital investment.

require

skill

to

operate.

molding

compound.

This

mixing

is

or presses. Chopped

Chopped involves

strands

The processes also

are converted into bulk

special mixing equipment.

When the

complete the BMC produced is used in injection molding machines Again capital is required along with skill.

strand

mat

is used mainly for hand lay up purposes.

The cost of

moulds varies but generally is fairly inexpensive. In

conclusion,

which

is

still

the in

product mix is indicative of a market in South Africa the

growth

stage

when compared to Brazil and other

countries. • •• /8

- 8 -

- PLASTICS Figure 7: Compares thermosets with thermoplastics

Thermoplastics 6.0%

Thermosets 94.0%

Thermosets Plastics of

the

and

thermoplastics

market. two,

resins

being approximately 94%. The

used

in the Glass Reinforced

The thermoset resins constitute by far the largest user

to increase steadily in the future. 1)

are

local

changed

Thermoplastics growth is expected

The reasons for this are

content programme for the automotive industry has

from

mass

to

volume

and

this

must increase the

plastic content in the vehicles.

2)

South use

Africa's of

polypropylene

plant must also encourage the

since

polypropylene can be used for

thermoplastics

various parts on cars.

• •• /9

- 9 -

COMPARISONS OF PER CAPITA/CONSUMPTION OF LAMINATES, THERMOSETS

AND THERMOPLASTICS KIGOGRAMS

000

/10

- 10 Sweden shows a

st~ong

position in aero defence due to exports to NATO

countries. Finland and Sweden show a high consumption in the marine

indust~y

due to

tradition and due to exports. USA, Japan and

Europe lead all other

Weste~n

in construction

count~ies

sectors. Japan dominates in the USA

and

Canada,in

co~rosion

the

resistance sector due to septic tanks.

transport

consumption

of

sector,

Europe

and

have that

double of

the per capita

Japan

even

though

automotive production is roughly equivalent. Japan is high in the appliance business equipment which is to be expected,

but

these

figures

are

estimates.

This market

offers potential in South Africa. Finland, Australia and Canada lead in the consumer and recreational suggest

good

potential in other countries like Australia

and South Africa. The

wide

Mexico

variations reflect

development,

mix

development

role

from

numerous of and

4.2

kg

per

factors

industries, local

in the USA to 0.24 kg in

ca~ita

including

level

effectiveness

fibre

glass

of

industry.

of

affluence

missionary South

and

market African

consumption of laminates per capita rates one of the lowest in the world. The composite industry world wide amounts to 3 182 100 tons of laminate. See overhead

••• /11

- 11 -

- WORLD WIDE COMPOSITE INDUSTRY - 1988 - (THERMOSET

AND THERMOPLASTIC. THOUSANDS OF METRIC TnNS) -

Africa

25.0

Australsia

73.2

Canada

86.6

Europe (excluding UK)

831.0

Far East (excluding Japan)

127.1

USSR (excluding Eastern Block countries)

72.5

19.8

Middle East Mediterranean countries

379.2

Japan Scandinavia

89.0

South America

60.0

United Kingdom

129.0 1189.7

USA

3182.1 Last

but

not

least

before

moving

on

to

the

opportunities

in

the

automotive industry, an overhead of the materials market maturity curve •

•••• /12

- MATERIALS

MARKET

MATURITY

Commodity plastics Stainless steel -----,,#" Superalloys Speciality metals

CURVE-

Aluminium

--~,...---~

Copper Carbon steel

~-----,f

Traditional eng plastics ______7 High performance eng plastics Eng. plastics alloys and blends Fibre optics ______________

7

Advanced polymer matrix composites _______J Advanced metal matrix composites

---::fl

Structural ceramics- - - - 7 ' Heavy R &D

Rapid Growth

Growth Maturina

Growth

Growth Declining

- 12 FUTURE They are:

Future potential in the South African market lies in these industries. 1)

Mining

2)

Appliance

3)

Electrical

4)

the Automotive industry

and Unfortunately

time

does

not

permit

covering

all opportunities and therefore the

automotive industry has been selected.

- COMPARISON OF LAMINATE/CONSUMPTION PER UNIT AUTOMOTIVE PRODUCTION

\-----------------------------------------------------------------------------------1 1 AUST-I BRAZILI CANADA 1 JAPAN 1 MEXICO 1 SWEDEN 1 USA

W.EUROPEI

IRALIA I ~----------------:------:-------:-------:------:------ -:-------1-----

l---------l

TRANSPORTATION

1

IRAW LAMINATE 1

5952

18840

25500

43900:

4001

2800 12553751

165000

TONS

:----------------:------1-------1-------1------:-------1-------:------:---------\ 1

AUTOMOTIVE

IPRODUCTION 1

394

967

1934

122711

398

462

116541-

13274

IN 1000 UNITS

l----------------l------l-------l-------:------J-------l-------l------I---------: ILAMINATE PER IUNIT KG

15.1

19.5

13.2

3.61

10.1

6.1

12.4

21.911

:----------------l------l-------l-------:------:-------l-------l------:---------I ILAMINATE DEMAND :IF 2.9 KG PER :UNIT (SAME AS 1

8634

21190

42380 :2688951

8721

10124 1255375:

290874

IN USA)

:----------------:------:-------:-------1------:-------:-------:------1---------1 1

ADDITIONAL OR

: UNREAL I SED

2682

2350

16880 :224995:

4721

7324

o

125874

:LAMINATE DEMAND

:-------------------------------------------------------------------------------••• /13

- 13 -

The

current

than

five

levels per

of

glass reinforced plastics components usage

represeryts less

cent of the potential if this proven and commercialised applications

are simply extended to all vehicles produced in that market. The

average

automotive

glass

reinforced

production

(cars,

plastic trucks

laminate and

consumption per unit of the total

buses) by country indicates a range from

21.9

kg

per unit in the USA down to an estimated 3.6 kg in Japan.

were

to

use only 21.9 kg per unit the potential additional volume in Japan would be

an

extra

South

Africa

component use

225

ensure

this

and

them. that

000

If all countries

an increase of 60% of its present total market size. In

tons potential

is

also

great.·

Time is also needed to convince

assembly manufactures of the advantages of reinforced plastics and to The

suppliers of resins and glass and the converters themselves must

this happens.

To illustrate the success story in Western Europe a list

of components currently being used appears below - followed by a slide show •

••• /14

- 14 -

COMPOSITE COMPONENTS USED IN EUROPEAN MOTOR CARS AND TRUCKS IN 1989

SUSPENSIONS, CHASSIS FRAME COMPONENTS \ COMPONENT

:NO VARIATIONS\% CHANGE PROCESS MOST \ POLYMER MOST \ GLASS ISINCE 1987 COMMONLY USED:COMMONLY USED \REINFORCING 1

------------:-------------:----------------------:--------------:----------28.8 COMPRESSION/ :

BUMPERS

UP/PU

73

RTM ____________ I _____________ I __________ • _____________ BODY PANEL PARTS

110

19.3

: COMPRESSION/ RTM

------------- ----------:------------.-----------\ COMPLETE & : PARTIAL BODY

VARIOUS

9

I~-------

SMC/MF

______ 1 ______ - - - - -

UP/PU

VARIOUS

--_ .... _---------

-----------: SMC/

UP

MAT CONT

:------------.-------------1----------:--------------------------1-----------: \DOOR HANDLES: 18 20.0 INJECTION PA CS \ - - - - - - - - - - - - : - - - - - - - - - - - - - : - - - - ______ 1 ______ - - - - - - - . - _____________ : ___________ :

: GRILLS

:-----------\HEADLAMP 'SURROUNDS & PANELS ROOF COMPONENTS

INJECTION

4

INJECTION

9.6

UP/PA

CS

-------------1------------------------1 COMPRESSION 1 UP SMC

18

/SMC

------------\------------31

SPOILERS

- - - - - - - - - - , - - - - - - - ______ 1 ______ - - - - - - - -

3.3

1

1

VARIOUS

- - - - - - ______ 1 ______ - - - - - - - : - - - - - - - - - - \ - - - - - - - - - - - - -

TAIL LAMP iHOUSINGS

CS

-------------1--------------1-----------\

- - - - - - - ______ 1 _ _ _ _ _ _ - - - -

34

: VARIOUS : : THERMOPLASTICS:

: INJECTION \ COMPRESSION

6

:------------------------i----------i------------:MISC 51

(3.7)

INJECTION

UP/PU

-----------\ VARIOUS

_________________________ \

VARIOUS PA

CS/SCM

--------.--- : CS

\EXT. PARTS

1

1

\------------ -------------i----------I-------------:-------------- -----------\

••• /15

-

- 15 -

ELECTRICAL SYSTEM COMPONENTS 1----------------------------------------------------------------------------------1 I COMPONENT lNO.VARIATIONS1% CHANGE lPROCESS MOST i POLYMER MOST i GLASS iSINCE 1987 lCOMMONLY USED iCOMMONLY USED lREINFORCING I l-----------l-------------l-----~-----:--------------l--------------i------------:

lorSTRIBUTOR: 5 INJECTION UP/PBT: CS I CAP 1-----------:-------------:-----------:--------------1--------------:------------1 lELEC. CONN i 9 INJECTION PA/PC : CS I PLUGS :-----------:-------------:-----------:--------------1--------------:------------1 lHOOTER ASS : 2 : ' I INJECTION PA I CS I AND PARTS

:-----------:-------------1-----------:--------------1--------------:------------1 15 38 INJECTION PA CS

:MISC. ELEC.: 1 PARTS

1 ______ - - - - - : - - - - - - - - - - - - - : - - - - - - - - - - - : - - - - - - - - - - - - - -

TRANS. PARTS

:

6

:

(100)

:

INJECTION

-----------:-------------:-----~-----:-------------1 388 14.7 COMPRESSION

TRUCK AND VAN PARTS

--------------1-----------PA CS --------------:-----------UP VARIOUS

-----------:-------------:-----------:-------------- --------------1------------

KEY

PA UP CS MF

POLYAMIDE UNSATURATED POLYESTERS CHOPPED STRANDS MILLED FIBRE

ABS SMC PP PU

-

ACRYLONITRILE BUTADIENE-STYRENE SHEET MOLDING COMPOUND POLYPROPYLENE POLYURETHANE

••• /16

- 16 -

UNDER THE HOOD COMPONENTS : COMPONENT

:NO VARIATIONS % CHANGE :PROCESS MOST : POLYMER MOST SINCE 1987 :COMMONLY USED : COMMONLY USED

: GLASS : : REINFORCING:

____________ : ________________________ 1 ______________ : ________________ : ___________ 1

AIR SYSTEMS :

23

INJECTION

------------:----------------------8 33.3 INJECTION ------------\-------------\-----------------------ENGINE COOL.: 10 INJECTION

PA

CS

- - - - - - - - ______ 1 ______ - - - - - - - - - - : - - - - - - - - - - -

BELT COVERS :

1

PA/PP

CS

- - - - - - - - - - ______ 1 ______ - - - - -

PA/PP

CS

:FANS & PARTS:

:------------:-------------:------------------------------------------------:FAN SHROUDS: 17 : 41.0 INJECTION PA/PP CS :AND PARTS :------------:-------------:-----------:--------------:---------------, , \ HEATER 1

: HOUSING : PARTS

16

&

I

116.0

INJECTION

PA/PP

CS

:------------:-------------\-----------:--------------\----------------\-----------1 RADIATOR : 34 : 17.3 INJECTION l PA CS PARTS ------------:-------------:-----------:--------------l----------------l-----------: MOTOR PARTS : 8 : INJECTION/RIM l PA/PU CS ------------:-------------:-----------:--------------:----------------:-----------: MISC. UNDER-: 43 (6.5): VARIOUS PA/PU VARIOUS: HOOD PARTS

\ .

------------:-------------:-----------l--------------l----------------\-----------: PASSENGER COMPARTMENT COMPONENTS DOOR HANDLES:

18

28.5

INJECTION

PA

CS

------------\-------------\-----------l--------------:----------------'-----------: 27 INJECTION ABS/PA CS:

INSTRUMENT: PANEL PARTS l

------------:-----------------------:--------------:--------------------------: SEATING 22 15.7 INJECTION l PA VARIOUS COMPONENTS

------------:-----------------------:--------------:--------------------------: 15 : COMPRESSION/ : UP VARIOUS

\TRIM : COMPONENTS

INJECTION

:------------:-------------:-----------:--------------:--------------------------: :MISC : : PASSENGER: :COMP. PARTS:

41

17.1

INJECTION

PA

:------------:-------------:-----------:--------------:-----~----------

CS

-----------:

Bibliography:

SPI Conference and papers Owens Corning Fiber Glass AFI Marketing Department

Thanks to:

Leonie le Roux Elaine Vels