THE SUSTAINABLE SOLUTIONS OUR FUTURE
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1 THE SUSTAINABLE SOLUTIONS OUR FUTURE
2 European Pipe Industry Slowly changing market from PVC to PO Margin problems. Consolidation New markets to be developed. Dedicated formulation per line. OEE driven basis for investment. Carbon Footprint important issue. Recycling is getting strong. 2
3 Margin Problems In Western Europe: Construction market is in bad shape Mainly with the PE converters Also with the PVC one-pack converters => compounding + converting = profit Market share battle => lower prices protecting market share => New standards (by distributers) Non standard off-spec pipe! Wavin, Uralita, Alphacan.. 3
4 New markets to be developed OPVC (last 6 yrs.) PEX and PPSU fittings (last 4 yrs.) Larger diameter PE pipe (last 3 yrs.) PP structured wall pipe (last 3 yrs.) but with in-line compounding => PP = also mixing + converting Lesson: High investments, high entry barrier High quality products all according standards Less competition Better Margins 4
5 Dedicated formulation per line Good solution for Pressure pipe with low CaCO3 (12 phr.) Bad solution for changing formulations and higher filler levels Problems: Segregation, limitation in CaCO3, high energy consumption 5
6 Dedicated formulation per line Testing: Possible on every individual line 6
7 Dedicated formulation per line Fixed: High filler level, constant density (better quality), less energy, no caking 7
8 Dedicated formulation per line Adding per line: Colour, processing aid, foaming agent, regrind 8
9 CaCO3 RDA setup In-line 9
10 The OEE of Extrusion lines Standard Rollepaal Solutions: QTC Easy assembly Good line development Short land length on dies Low overweight on pipe Good and easy cleaning Easy centring 10
11 OEE Solutions QTC Scanners Gravimetrics Smart centering cone Wall thickness change Short land length on dies Low inventory (CSS) 11
12 Cost Saving Solutions Carbon Footprint important issue CSS Recycling is getting strong 1. Cost Savings through Weight saving 2. Cost Savings through Energy saving 3. Maximize CaCO3 content 4. Process factory scrap 5. Process Post Consumer scrap 12
13 Cost reduction Material 81 % 4 3 Material 2 Labour Depriciation Energy Maintanance Other Material costs: Amount of PVC Amount of substitution materials (CaCO3/Talc) Amount of processing aid Amount of stabilizer Amount of regrind Also scrap/overweight MAIN TARGET The answer is not in the investment, it is in how the investment is helping you to save on raw material. 13
14 Non Pressure: CSS ML Foam Core Ultrarib Hollow Core DWC 14
15 Sewer: Cost Saving Solutions Multi Layer FOAM Struc Wpipe Full Foam DWC Ultra rib Wavi hol Spiral Wpipe Weight Saving Use of Scrap o o - / o o - Recycling Mechanical / + ++ o / + - Properties Fittings + / / o - -- Investment / o Flexibility in Production Market Penetration Preferred Diameter o o Cost Saving o ++ 15
16 OPVC: Pressure CSS Example: Pipe for water applications OPVC in relation to DI, UPVC and PE Reason why OPVC: 1. Better mechanical properties 2. Less use of material 3. Best flow properties 4. Lowest Carbon Footprint 5. Lowest use of energy to produce OPVC is most sustainable
17 Weight savings OPVC UPVC Weight: 100% Volume: 100% OPVC OPVC Weight: 47% Volume: 47% Pipe 200 mm PN 16 UPVC VOPVC = 44,5% VPE PE 100 WOPVC = 31,5% WPE material SDR dimension weight/m PE x18, UPVC x11, OPVC x5, Mrs 450, C=1,6 PE Weight: 105% Volume: 149%
18 Flow Properties OPVC UPVC 116,2% OPVC OPVC 133,5% Pipe 200 mm PN 16 UPVC PE 100 material SDR dimension weight/m PE x18, UPVC x11, OPVC x5, Mrs 450, C=1,6 PE 100%
19 Lowest Carbon Footprint / LCA PE :100% non-renewable fossil fuel U/O-PVC : 43% non-renewable fossil fuel
20 Situation in India Yearly production PVC tons C-PVC tons PO tons Converters: 1400 Meaning average 1200 ton / producer / yr. 20
21 Short term INDIAN situation Low entry barrier 81 Cost of investment is main driver in market Cost price of pipe NOT main driver in market Production of off-spec / LOW Quality Pipe In India 30% of the pipe is according to specifications which are printed on the pipe. In Europe that is different in off-spec pipe In maturing market the result is : Margin pressure and eventually market share battle => So short term result : High Margin Pressure Material Labour Depriciation Energy Maintanance Other 21
22 Off Spec Europe India Europe: Pipe with different specifications but written on the pipe. Transparent but misleading India: Filler levels and content not according to.. Minimum wall thickness not guaranteed What is printed is not true (CPVC/IS) Non transparent and misleading => Quality issues, damage to the pipe-industry 22
23 Margin factors Consider: CPVC, UPVC and PE Margin = Compounding and Converting Margin is higher OEE Margin is thinking about the cost price of pipe Margin is investing in CSS Margin is a quality market, no off spec Margin is consolidation Margin is: Do Things Different Margin is investing in higher entry barrier markets 23
24 Solutions for India Invest in new products Invest in new markets to be developed Invest in OEE solutions Invest in CSS solutions Set a standard for the pipe producers Maintain and Force that standard Sell and produce solutions in stead of Pipe 24
25 THE SUSTAINABLE SOLUTIONS OUR FUTURE
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