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Machinery production in China to rise at a CAGR of 7.5%

- Machinery production in China to rise at a CAGR of 7.5%▲ Total China machinery production revenues and growth rates from 2017 to 2022(exclusing PV and solar).Even with strong 8.1% year-over-year growth, China's machinery production is growing at a slightly slower rate in 2018 than that it did in 2017, according to the recent study by IHS Markit. Machinery production in China will continue to rise at a compound annual growth rate (CAGR) of 7.5% from 2018 to 2022.In the first half of 2018, the performance of machinery industry segments in China suffered mixed fortunes. While robots and other high-end equipment-manufacturing machinery maintained high growth rates, some traditional manufacturing-related machinery – such as agricultural machinery, paper and paperboard machinery – have different market growth expectations, due to their differing market and policy environments.As “Smart Manufacturing 2025” continues to advance, while demographic dividends disappear, labor costs increase, and machine generation accelerates, the demand for industrial robots in China has increased dramatically.According to the latest data from the International Federation of Robotics (IFR), the annual sales volume of industrial robots in China ranked first in the world for five consecutive years from 2013 to 2017. IHS Markit predicted that industrial robot production will continue to grow at 38% through 2018.Overall prospectAlthough China's machinery production growth performance was stable in the first half of 2018, there are still some unfavorable factors expected in the second half of the year, due to downward pressures on the machinery and equipment market, including the following:With Sino-US and other trade frictions on the rise, there is still a lot of uncertainty in the international environment.The infrastructure investment and consumption growth rate is declining, and the underlying economic driving force is insufficient to spur additional growth.The tightening of environmental protection policies, along with the uncertainties of industrial policy adjustment, will have varying negative short-term effects on the development of related industries. The strict supervision of environmental protection will also have negative short-term effects on the paper, printing, dyeing and other polluting industries.Source: CPRJ International

Aeyoung Park 2018-08-29

PS, PET bottle resin prices move in July

- PS, PET bottle resin prices move in JulyThe lazy days of summer proved lazy indeed for North American commodity resin prices in July, as only solid polystyrene and PET bottle resin showed any change from the previous month.For PS, a decline of 3 cents per pound occurred as prices for benzene feedstock — used to make styrene monomer — dipped 15 cents to $2.84 per gallon. That move represents a 5 percent decline vs. benzene prices for June.Regional PS prices had been flat in June after falling 4 cents per pound in May. Counting previous increases and decreases, PS prices now are down a net of 1 cent per pound for the year.North American PS sales slumped 5.5 percent in the first half of 2018. A domestic sales loss of just over 6 percent was lessened by a 19 percent surge in export sales. PS sales to resellers and distributors grew almost 10 percent in that six-month period.PET bottle resin prices declined by an average of 2 cents per pound in July after having increased 3 cents in June and 2 cents in May. Lower demand was cited as a reason for the July dip.Scattered production issues and tighter supplies of feedstocks could make regional PET markets tighter in August and September, sources said. This change could lead to flat pricing or even give regional PET makers a chance to raise prices, they added.Average North American market prices for all grades of polyethylene, polypropylene and PVC were flat in July. High and low density PE prices now have been flat for four straight months, with linear LDPE prices now flat for two months in a row after sliding 3 cents in May.In spite of a flat market, the impacts of large new amounts of HDPE and LLDPE capacity are being felt in regional demand. U.S./Canadian sales of HDPE jumped 8.8 percent in the first half of 2018, according to the American Chemistry Council, with LLDPE sales booming 16.3 percent. Exports played a big role in this growth, with LLDPE exports up an astonishing 60.2 percent and HDPE exports leaping 18.9 percent.Domestic market growth for those materials also exceeded that of U.S. GDP. HDPE sales into the domestic market were up 6.5 percent in the first half, with domestic LLDPE sales up 4 percent.Sales of LDPE — where less new capacity has been added — ticked up 0.9 percent for the half, as a 0.4 percent export loss weakened domestic growth of 1.4 percent. LDPE's nonpackaging film end market — including retail bags and trash and can liners — grew 7 percent.Regional PP prices took a rare break in July after surging 8 cents per pound in June after moving up 7 cents in May. That followed a two-month period in March-April when prices slipped a total of 7 cents.PP prices in the region now are up a net of 11 cents per pound for the year. Total price volatility for the material — including all increase and decreases — has reached 40 cents per pound.For PP, North American sales dipped 0.5 percent. A 23.8 percent decline in export sales countered a gain of 0.2 percent in the domestic market. Among major end markets, sales of PP into oriented film were up 17 percent and into injection molded caps and closures were up 7 percent.Regional suspension PVC prices were flat for the third straight month in July after moving down an average of 2 cents in April. First-half U.S./Canadian PVC growth of 5.5 percent was powered by export growth of 17 percent.Sales of PVC into the domestic market ticked up 0.6 percent. Among major end markets, PVC sales into extruded windows and doors surged upward by 31 percent in the first half.Recycled resin changesPlastics News also recently showed pricing changes for several recycled materials. In PET bottle resin, average selling prices for clear, post-consumer pellets and flake are both up 5 cents per pound since April. Prices for green, post-consumer PET flake and pellets are also up 5 cents in the same time period. These materials have been in higher demand as manufacturers work to meet sustainability goals."Demand for [recycled PET] pellet from bottle and packaging manufacturers continues to rise due to call to increase recycled plastics in plastic bottles, other containers and packaging," according to a recent report from the PetroChem Wire LLC consulting firm in Houston.For recycled HDPE, prices for multicolored, post-consumer flake are down 5 cents per pound since April. In recycled polypropylene, prices for industrial flake are down 4 cents per pound in that same time period. Both moves are the result of decreased domestic demand and increased supplies resulting from lower exports of recycled material to Asia.At the macro-feedstock level, U.S. prices for West Texas Intermediate crude oil slipped from $71.50 per barrel at the start of July to $67.75 by the end of the month for a decline of 5 percent. U.S. natural gas prices also slid, starting July at $2.85 per million British thermal units, but bouncing around before finishing near $2.75 by the end of the month for a decline of 3.5 percent.

Aeyoung Park 2018-08-29

HDPE, LLDPE drive first-half gains in U.S./Canadian resin sales

HDPE, LLDPE drive first-half gains in U.S./Canadian resin salesThe impact of new North American polyethylene resin capacity began to be felt in sales totals for the first half of 2018, with both high and linear low density PE posting big gains.U.S./Canadian sales of HDPE jumped 8.8 percent in that six-month period, according to the American Chemistry Council, with LLDPE sales booming 16.3 percent. Exports played a big role in this growth, with LLDPE exports up an astonishing 60.2 percent and HDPE exports leaping 18.9 percent.Domestic market growth for those materials also exceeded that of U.S. GDP. HDPE sales into the domestic market were up 6.5 percent in the first half, with domestic LLDPE sales up 4 percent.Among major HDPE markets, sales into gas pipe were up 23 percent, with water pipe up 16 percent for the half. In end markets for LLDPE, sales of the material into shipping sacks were up 10 percent.North America has added more than 6 billion pounds of annual PE production capacity since mid-2016 through major expansions from Nova Chemicals Corp., Dow Chemical Co., ExxonMobil Chemical Co. and Chevron Phillips Chemical. In total, North American PE production capacity is expected to add 26 billion pounds between 2017 and 2022.The discovery of newfound supplies of shale-based natural gas in the region in the last decade have made these expansions possible. Most of this new capacity has been in the form of HDPE and LLDPE.U.S. PE exports "can ramp up very quickly when world crude oil prices rise as they did in the first half of 2018 compared to the same months in 2017," said Phil Karig, managing director of the Mathelin Bay Associates LLC consulting firm in St. Louis."Crude oil prices were up over 30 percent year over year, while U.S. natural gas prices were mostly down during the same time period," he added. "As a result, many foreign PE buyers found U.S. PE prices attractive, while U.S. PE producers had less reason to lower domestic prices, even in the face of new production capacity."Esteban Sagel, principal of the Chemical & Polymer Market Consultants consulting firm in Houston, said that "looking at PE, the domestic growth rates would be reflective of a strong domestic market, which I believe is the case.""The economy is improving, employment is up and confidence is high," he added. "Growth in pipe in HDPE is understandable, as we work in a lot of shale-related infrastructure."Harvey hits pricingIn PE pricing, strong demand and the unexpected prolonged effects of Hurricane Harvey into the spring supported higher post-hurricane price increases, according to Mike Burns, PE market analyst with Resin Technology Inc. in Fort Worth, Texas."Resin processors who expected Q1 discounts were surprised when prices increased in February and have lasted for the most part into the summer," Burns said.Burns added that with hurricane-related supply issues resolved and new capacity running at better rates, suppliers will have to rely heavily on a strong export market in the second half of 2018."Exports may need to increase as much as 10 percent over the three-year average of 20 percent to maintain a balanced North American supply," he said. "And recent tariffs talks may disrupt the flow of exports until the direction is certain."An abundant supply of PE "is contributing to U.S. resin export growth in particular," according to Paul Bjacek, market analyst with the Accenture Research in Houston. "This will pull up [LLDPE] shipping sacks as well, as plastics are typically packed in shipping sacks for loading into overseas containers."First-half sales for other commodity resins represented a mixed bag. PVC sales posted solid gains, while sales of LDPE and polypropylene essentially were flat and sales of solid polystyrene declined.U.S./Canadian PVC growth of 5.5 percent was powered by export growth of 17 percent. Sales of the material into the domestic market ticked up 0.6 percent. Among major end markets, sales of PVC into extruded windows and doors surged upward by 31 percent in the first half.Construction growthThe PVC market "is, has been and will continue to be driven by various housing market applications such as vinyl siding, windows and drain and waste pipe," Mathelin Bay's Karig said. U.S. housing starts "were strongly up year over year through May, and though they were down in June, there was more than enough momentum to keep U.S. PVC sales strong during the first half of 2018."PVC export sales "also benefited from low-cost natural gas, making U.S. producers competitive in the world market, as well as from continued growth in the global economy, including housing," he added. "Looking forward, the big question marks are whether tariff spats and elevated oil prices will cause global growth rates to begin to cool."Construction has been performing relatively better than manufacturing in the first half, Accenture's Bjacek said, with overall construction spending rising 5 percent. This trend should help explain the strong performance of PVC in construction applications, he added.LDPE sales ticked up 0.9 percent for the half, as a 0.4 percent export loss weakened domestic growth of 1.4 percent. The nonpackaging film end market, including retail bags and trash and can liners, grew 7 percent.For PP, North American sales dipped 0.5 percent. A 23.8 percent decline in export sales countered a gain of 0.2 percent in the domestic market. Among major end markets, sales of PP into oriented film were up 17 percent and into injection molded caps and closures were up 7 percent.Karig said that the PP market "was very much a mirror image of the PE market in the first half of 2018 as it has been for most of the last few years."PP producers "found themselves suffering from elevated feedstock costs and limited feedstock supply," he explained, "while foreign producers stand ready to ship PP to the U.S. whenever U.S. producers attempt to recover their cost increases or try to increase their margins."PS slidesU.S./Canadian solid PS sales had a very difficult first half, with overall sales sliding 5.5 percent. Export growth of 19 percent allowed for a slight improvement on a domestic sales slump of 6.1 percent. Sales of solid PS to resellers and distributors provided a bright spot by growing 10 percent for the half.The resin statistics also reflect a 4.9 percent first-half increase in consumption of nondurable goods, which "tend to do relatively well throughout economic cycles," according to Bjacek.However, he added, the weaker performance of PP and PS is likely related to their greater share of demand in durable goods, which rose slightly less — 4.6 percent — during that time. U.S. auto production is a notable area of weakness, Bjacek said, declining by 13 percent in this period and likely contributing to weaker PP sales.Commenting on overall resin sales in the region, Bjacek said that strong resin sales data is linked primarily to robust economic growth, with U.S. real GDP rising over 4.1 percent in the second quarter. In addition, he added, growth is contributing to stronger world demand, as U.S. GDP accounts for more than one-fifth of world GDP.But "a key risk," according to Bjacek, is the lack of consistently strong durable goods production. "Consumers buy less durable goods when there is uncertainty," he said. "Any declines there can signal the beginnings of a downturn. Producers should watch durable figures and be actively pursuing stronger growth applications, as well as financially strong customers, to protect themselves in a downturn."

Aeyoung Park 2018-08-22

Taiwan plastics firms see gains in China-US trade war

Taiwanese equipment makers are capitalizing on the emerging U.S.-China trade spat, but may be hurt if the disagreement lingers, executives said on the first day of Taipei Plas."Taiwan is actually the beneficiary of this trade war, because if the U.S. increases the tariff on machinery imported from China, it means Taiwan machinery is going to be even cheaper [for U.S. buyers]," said Larry Wei, president of extrusion machine maker Fong Kee International Machinery Co. Ltd. and a board member of the Taiwan Association of Machinery Industry."Starting last year, we saw more and more Taiwanese machinery sold to the U.S. market," Wei said, with his firm seeing a 20-plus-percent jump in sales to the United States.Larry Wei, president Fong Kee InternationalMachinery Co. Ltd. and board member of Taiwan Association of Machinery IndustryIn the short term, the combination of 25 percent U.S. tariffs on Chinese plastics equipment, which started July 6, and the favorable business reaction to President Donald Trump's policies are fueling stateside demand for Taiwanese production equipment, said Alan Wang, chairman of TAMI's plastic and rubber machinery committee."Our machinery sales to the United States actually have increased," he said.But executives fretted over longer-term impacts if the trade war dampens demand for new equipment, particularly in China, which is Taiwan's largest export market for plastics equipment.Wang noted that the mainland purchasing managers' index, a leading reflection of corporate confidence, took an ominous dip in May and June."[In] the long term, we think that [the trade dispute] might affect the willingness to invest," he said. Last year, Taiwan supplied almost five times as much plastics equipment to China as it did to the United States, TAMI said.In the plastics world, Taiwan definitely punches above its weight. The small island with a population the size of Texas is the world's sixth-biggest exporter of plastics machinery, ranking behind only Germany, China, Japan, Italy and the United States.Exports of Taiwanese plastics and rubber machinery jumped 12.8 percent last year to $1.17 billion, said TAMI Chairman Alex Ko.Sales to mainland China grew a healthy 27 percent to $247.61 million, accounting for 21 percent of Taiwanese plastics machinery exports.Taiwan has a strong focus on Asian developing markets. Sales to its second-biggest export market, Vietnam, edged up 2.3 percent to $139.5 million, followed by India, up 44 percent to $91.69 million.Sales continued to grow in the first five months of this year, Ko said. China and Hong Kong imported $97.93 million in Taiwanese machinery, up 2.3 percent from the year-before period, followed by Indonesia and Thailand. But sales to India have dropped a sharp 24.8 percent.Still, TAMI President Cheng-Ching Wang called on the industry to make a more concentrated effort to penetrate markets in the Middle East, Africa, South America and Eastern and Central Europe. Altogether, they represent less than 10 percent of Taiwan's exports, Wang said.The candid trade-war assessments weren't the only geopolitical notes to creep into the usually apolitical trade-show talk.Michael Wang, general manager of Chen Hsong Machinery Taiwan Co. Ltd. and vice chair of TAMI's plastic and rubber machinery committee, said his firm's once-thriving sales to Iran have vanished in the wake of the Trump administration's re-imposition of sanctions on Iran.The trade show, which says it's Asia's third-largest plastics show behind Chinaplas and Japan's IPF, also will include a focus on beefing up Taiwan's Industry 4.0 next-generation manufacturing capabilities, executives said, although they acknowledged more research needs to be done locally."Take my company, Fong Kee, for example. Most of our sensors for our blow molding machines are imported," Wei said. "This is an area where we really need to catch up."But executives noted some progress in making servo motors, a key component for all-electric injection molding machines. Taiwan now has two domestic manufacturers that can compete with foreign offerings."The situation has greatly improved compared to the last Taipei Plas [in 2016]," Alan Wang said.Another highlight: stronger collaborations among the government, universities and companies to train engineers needed for the new world of smart manufacturing, said Bush Hsieh, managing director of Taichung-based blow molding machine maker Chumpower Machinery Corp. and a vice chair of TAMI's plastic and rubber machinery committee.Chumpower has already worked with students on government-sponsored Industry 4.0 projects twice. "The [key performance indicator] will be whether these students are recruited," Hsieh said.Thomas Huang, executive director exhibitiondepartment, Taiwan External Trade Develop-ment CouncilExecutives said plastics pollution is a particular concern in Taiwan, which has some of the strictest recycling laws in the world. Executives talked up savings on the production end, as electric injection molding machine use less energy than hydraulics and don't leak oil.But much more research needs to be done on the recycling end, which is still too reliant on manual labor, they said."Separating PET caps and bottles must be fully automated," said Alan Wang. "Recycling technology needs to be upgraded."Thomas Huang, executive director of the exhibition department of the Taiwan External Trade Development Council, called on resin makers to "focus on developing [formulas] so that the material can be better recycled and reused."Taipei Plas runs through Aug. 19. Show organizers anticipate 18,800 visitors from around the world.

Aeyoung Park 2018-08-20

US-China trade war: 5 suggestions from the Chinese plastics processing industry

The escalating US-China trade war is hitting the plastics industry of both countries. From the reliable sources of CPRJ, we've learned that some leading manufacturers and OEMs in China have already been suffering from the economic turmoil.“Our customers from the US have stopped ordering from us,” the director of a leading Chinese manufacturer of plastic films and garbage bags told CPRJ.“Our collaboration project with the US has been halted. As soon as the US waged a trade war against China, we suspended the project, as we don't know who will pay the extra 25% tariff,” said a Chinese auxiliary equipment supplier.In order to manage the crisis and minimize the damage of the US-China trade war, the Chinese plastics processing industry has suggested five measures.1. Tax exemption“The number of plastics processing machines exported to the US from China has increased by 84% in 2017 when compared with the previous year, and the value has increased by 47%. With the extra tariffs, Chinese machines would lose its advantage in price,” commented Su Dongping, Secretary-General of China Plastics Machinery Industry Association.However, the impact on Chinese machine builders is still manageable, she said. “For example, the US market accounts for only 4 - 10% of the total turnover of some leading Chinese manufacturers like Haitian (海天), Yizumi (伊之密) and Borche (博创).”She suggested the Chinese enterprises should request for exclusion via the Product Exclusion Process for Chinese Products Subject to Section 301 Tariffs released by the Office of the U.S. Trade Representative (USTR).2. Call for subsidiesWang Wenguang, Secretary General of Shenzhen Polymer Industry Association, told CPRJ that some member enterprises are expecting subsidies from the Chinese government to alleviate their plight.3. Tax cut to increase domestic demand in China“If the Chinese government is able to cut corporate value-added tax and personal income tax, enterprises will have more resources for research and development, and people will have more consumption power,” a plastics industry player commented. “In that case, we will have a stronger driving force for innovation and domestic demand.”4. Increase overseas investmentInvesting in new production facilities overseas is another solution. CPRJ has learned that a big Chinese plastic tableware manufacturer is planning to expand its production capacity in the US. Another plastics processing enterprise also said that it will consider producing in other countries in Southeast Asia.5. Boost innovationThe US is levying the extra tariffs against Chinese products that are relatively easy to find substitutes in the market. As long as Chinese products are of higher innovation, technology and quality, they will not be so easily replaced or subject to tariff threats.In 2017, China exported US$15 billion worth of plastic products to the US, representing 23.97% of the total export of plastic products. The US is the biggest export market for Chinese plastics processing machinery in the same year, accounting for 10.89% of the total, with a value of US$244 million.Source: CPRJ International

Aeyoung Park 2018-08-20

A new wave of growth for 3D printing

The 3D printing market is emerging from niche market and expected to grow at a swift pace. In light of the huge business opportunities, some notorious companies have started to boost their presence in the market. 3D printing market is hot and getting hotter! 3D printing, also known as additive manufacturing, promises a range of potential benefits and innovation opportunities, offering major advantages such as shorter lead time, design freedom, and lower costs. Thanks to rapid technological developments facilitating wider applications, it is creating more interest among mainstream industries.Worldwide spending on 3D printing is set to growThe global spending on 3D printing (including hardware, materials, software, and services) will be nearly US$12.0 billion in 2018, an increase of 19.9% over 2017, according to the new update to the Worldwide Semiannual 3D Printing Spending Guide from International Data Corporation (IDC). By 2021, IDC expects worldwide spending to be nearly US$20.0 billion with a five-year compound annual growth rate (CAGR) of 20.5%. Together, 3D printers and materials will account for roughly two thirds of the worldwide spending total throughout the forecast, reaching $6.9 billion and $6.7 billion respectively in 2021.Services spending will trail slightly behind, reaching US $5.5 billion in 2021 and led by on-demand parts services and systems integration services. Purchases of 3D printing software will grow more slowly than the overall market with a five-year CAGR of 18.6%. According to the report, the US will be the region with the largest spending total in 2018 (US$4.1 billion) followed by Western Europe (US$3.5 billion). Together, these two regions will provide nearly two thirds of all 3D printing spending throughout the forecast. On the other hand, China will be the third largest region with more than US$1.5 billion in spending this year, followed by Central and Eastern Europe (CEE), the Middle East and Africa (MEA), and the rest of Asia/Pacific (excluding Japan).Discrete and healthcare manufacturers to be prevailing spendersThe 3D printing industry recently has witnessed a shift to more specialized applications with printer manufacturers targeting engineering groups directly linked to specific applications. As stated in the report from IDC, discrete manufacturing will be the dominant industry for 3D printing, delivering more than half of all worldwide spending throughout the 2017-2021 forecast. Healthcare providers will be the second largest industry with a spending total of nearly US$1.3 billion in 2018.Parts for new products, aftermarket parts, dental and medical support objects will continue to see significant growth opportunities over the next five years as 3D printing goes more mainstream. The healthcare industry is also poised to double its share of spend through 2021 as the benefits of cost-effective customized printing continue to be realized, according to Marianne D'Aquila, research manager, Customer Insights and Analysis at IDC.The leading use cases for 3D printing are prototypes, aftermarket parts, and parts for new products. As the primary use cases for the discrete manufacturing industry, these three use cases will account for 44% of worldwide spending in 2018. By 2021, dental objects and medical support objects will be the fourth and fifth largest use cases, largely driven by the healthcare provider industry. The two use cases that will see the fastest spending growth are tissue/organ/bone (56.6% CAGR) and dental objects (36.9% CAGR), which will also be driven by healthcare provider spending.Latest partnerships and investments for further developmentIn April, both leading materials suppliers Royal DSM and Covestro announced their new partnerships for further development in the 3D printing market. Royal DSM will partner with Chromatic 3D Materials to introduce thermoset materials for 3D-printing of finished manufactured goods. Chromatic 3D is one of the few companies that know how to develop technologies to 3D-print with thermosets, a broad class of materials offering adaptability, durability and resilience not possible with thermoplastics used in conventional 3D printing processes. Initial products to be rolled out by DSM include industrial-grade soft and durable thermosets, which are complementary to DSM’s current portfolio of thermoplastics for fused filament fabrication (FFF). Starting immediately, the companies will build a broader portfolio based on customer needs in the strategic markets of footwear (in- and midsoles), transportation (such as in the growing area of automotive electronics), healthcare, electronics and tooling.Material development is moving in a similar direction as both printer and material manufacturers create the perfect conditions for the reliability and repeatability demanded by industrial users. This means that more specific data and process knowledge is needed to drive 3D printing into mainstream manufacturing. Covestro and its partner Polymaker launched a website, namely 3DPC (www.3dprintingpc.com), designed to aid the use of polycarbonate in 3D printing. The information platform offers know-how on 3D printing with polycarbonates - from material options to printing conditions. 3DPC demonstrates the optimal printing and processing techniques to further penetrate polycarbonate into new industries and dynamic applications.Three months earlier, Siemensannounced the plan to make a €30 million investment in a new, state-of-the-art manufacturing facility for Materials Solutions Ltd., its additive manufacturing (3D printing) specialist.The new building in Worcester, UK, set to open in September this year, will more than double the company's current footprint, enabling it to increase its fleet of 3D-printing machines to 50.This major investment is part of Siemens' plans to build and grow a global business with additivemanufacturing services for the aerospace, automotive and other industries.The new factory will be fully powered by Siemens Digital Enterprise solutions, an end-to-end portfolio comprising software-based systems and automation components which cover every conceivable requirement arising along the industrial value chain. It will therefore harness the potential of digitalization. Siemens is leading not only as a user of 3D printing but also as a supplier of software and solutions for the automation of this technology. With Materials Solutions, the company also offers comprehensive services for engineering and printing up to the complete manufacturing of parts for external customers.In order to uplift its capability in developing and testing solutions for customers, BASF has established two 3D printing labs at the BASF Innovation Campus Shanghai, China, along with its 3D Printing Application Technology Center in Heidelberg, Germany.BASF also launched a wide range of industrial 3D printing solutions in Asia Pacific to satisfy the growing demand in the region in early 2018. These new solutions can help vastly accelerate development cycles by enabling the production of complex parts and allow individual designs, while reducing costs for small scale production.Advanced products on stage in major exhibitionsThe 3D printing market is poised to expand further and this trend was also very much in evidence at some recent major exhibitions, included CHINAPLAS in Shanghai, China and NPE in Orlando, the US. Some material suppliers highlighted their advanced solutions at these shows.With the 3D-printed surf board and 3D-printed shoe soles, the LEHVOSS Group put the spotlight on its innovative and customized polymers for 3D printing at CHINAPLAS 2018.Under the trade name LUVOCOM 3F, the surf board is made from customized 3D printing materials that based on thermoplastic polymers, such as high performance polyamides and PEEK. The materials are modified to yield improved layer strength with no warping of the printed parts. The 3D-printed shoe soles are made from LUVOSINT TPU X92A-2, a special material for laser sintering. Laser sintering is a technique for the additive production of plastic components. The layered structure offers a level of design freedom, as well as engineering opportunities that cannot be achieved with injection molding and other techniques.At NPE 2018, SABICintroduced three new FDM 3D printing filaments. The materials were designed for general high-temperature and healthcare applications.The launch of additional filament products, together with plans to continue expanding its additive manufacturing product portfolio, demonstrating SABIC’s determination to further the evolution of this technology and enable application innovation. Having only entered the additive manufacturing industry in the spring of 2017, the three new products represent the third wave of 3D printing materials the chemicals specialist has brought to market.Source: CPRJ International

Aeyoung Park 2018-08-08

Global Industrial Automation Equipment Market to Grow by 3.8% in 2018

- Global Industrial Automation Equipment Market to Grow by 3.8% in 2018Major Indices ComparisonThe global industrial automation equipment market is expected to grow by 3.8%in 2018 to US$209.8 billion, according to a report by IHS Markit.The global industrial automation equipment (IAE) market was estimated at US$202.2 billion in 2017, and it is projected to grow by 3.8% in 2018 to US$209.8 billion and by 4% in 2019 to US$218.2 billion, according to a report by IHS Markit. In general, the machines are becoming more automated, and this growth is specifically driven by rising industrial production, a strong global economy, growing machinery production and capital expenditure.In 2017, the automation equipment category led with 37.1% share of the industrial automation equipment market, followed by power transmission equipment with 32.9%, and motors and motor controls with 30%.Total industrial capital expenditure is expected to continue to grow by 3%, year over year, in 2017, 6% in 2018 and 4% in 2019.IHS Markit expected that some companies will close their doors to new proof-of-concept smart manufacturing projects in 2018, until existing and ongoing projects are completed or show a return on investment.Rising machinery production points to growing demand for automation equipment going into the new machines. The global industrial automation equipment market is expected to maintain solid growth through 2019, for a few reasons, as the report stated.In 2017, many smart manufacturing initiatives began to materialize, especially in countries like the United States, Germany and China. However, more multi-national end-users are expected to only accept trials of new solutions that are fully funded by the vendor, until returns are realized.Total industrial capital expenditure is expected to continue to grow through 2019. Specifically, spending on industrial automation equipment is forecast to increase in 2017 and beyond.Rising industrial production typically follows a stronger world economy. After 3.2% growth in 2017, the IHS Markit forecast in April 2018 showed world real gross domestic product (GDP) growth is projected to increase 3.4% in 2018 and 2019 respectively.Source: CPRJ International

Aeyoung Park 2018-07-26

The Top 10 Most Valuable Chemical Brands of 2018

- BASF ranked as the No. 1 chemical brand followed by Dow and Sabic- LG Chemical newly ranked in top 10 listBASF remains most valuableBASF has maintained its status as the world’s most valuable chemicals brand, following 13% brand value growth from last year to US$7.4 billion, according to a new report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. The brand value of BASF was boosted as a result of increased revenue projections after a strong 2017, which included the announcement and subsequent purchase of parts of Bayer’s businesses, in connection with Bayer’s acquisition of Monsanto. Dow boosted by merger with DuPont In second rank, Dow’s brand value surged 38% to US$6.5 billion, offset by the result of DuPont (down 10% to US$2.7 billion). Michigan-based Dow and Delaware’s DuPont have now completed their corporate merger while continuing to restructure their businesses to operate under separate Dow, DuPont, and new Corteva brands. Although, at the moment, the combined value of Dow and DuPont at the moment, the combined value of Dow and DuPont at US$9.2 billion is greater than that of BASF, it remains to be seen how the merger and ensuing reallocation of assets impacts their respective brand values.SABIC powers aheadSaudi petrochemicals giant SABIC has grown faster over the past year than any other brand in the Brand Finance Chemicals 10 league table, jumping from 8th to 3rd rank.Contributing to SABIC’s impressive 78% increase in brand value to US$3.7 billion is the renewed effort by the brand to capitalise on the US shale boom by growing its business across America. Having recently announced plans for a new head office in Houston, Texas, SABIC is a major supplier of polyethylene and other commodity resins across the Western Hemisphere. Boosted by the rise in oil prices, SABIC is also looking into opportunities to access the African market and considering acquisitions in Europe and China.Brands mid-ranking lose valueBrands in the middle of the Brand Finance Chemicals 10 ranking did not share in the strong gains of those at the top. Air Liquide (down 9% to US$2.3 billion), Asahi Kasei (down 5% to US$2.3 billion) and Mitsubishi Chemicals (down 9% to US$2.3 billion) suffered significant losses to their brand value. Asahi and Mitsubishi were both affected by the relative weakness of the Japanese yen.In addition to overall brand value, Brand Finance also evaluates brand strength. Mitsubishi’s brand has the weakest strength in the top 10 as a result of the company’s online and social media performance lagging behind its peers who have expanded their digital marketing and promotion, particularly on LinkedIn, a crucial portal for talent recruitment. The staff are one of the main stakeholders influenced by a brand’s strength, with stronger brands attracting and retaining quality employees. To catch up, Mitsubishi is hiring specialist social media marketeers and launched a multi-million-dollar cross-platform campaign. The brand also suffered reputational damage in October last year when, in the course of an investigation into data falsification by supplier Kobe Steel, it reported that its materials division had also falsified data.Source: Brand Finance

Aeyoung Park 2018-07-26