Downstream Terminal Products Demand for TPE China's Top Multinational Companies to Follow-up on China's TPE Investment Project

Demand for thermoplastic elastomers (TPE) will soar in the world in the coming years and is expected to increase from 2.3 million tons in 2004 to 3.1 million tons in 2009. Experts from Roger Eller Consulting Company pointed out last week that China's TPE consumption growth is faster, with an average annual growth rate of up to 12%. The surge in demand will continue to attract foreign companies to build factories in China.
The rapid growth of demand will inevitably lead to the growth of production. Experts from Roger Eller pointed out that currently only 6 of the world’s top 23 multinational TPE manufacturers currently have production facilities in China. The remaining manufacturers rely on imports or through their partners to sell specialty plastic products in China.
In terms of downstream product consumption for TPE, China has the largest share in the world. Currently, more than 50% of the world's cameras, fans, DVD recorders and telephones are produced in China. Although China's production of televisions, mobile phones, notebook computers and automotive parts accounted for slightly less, but the number is also considerable. However, in comparison, the number of TPE multinational manufacturing companies in China is very small. Since the production of many end products has shifted from the West to the East, there are reasons to believe that TPE producers will also keep up.
With the increase in energy costs and prices of TPE production, the annual growth rate of TPE's market value is faster, which will reach 7.4%. The well-known consulting company Freedonia pointed out that the demand for TPE in China will increase most rapidly and consumption will increase from 690,000 tons in 2004 to 1.1 million tons in 2009.
Currently, the three major TPE producers have planned to invest and build factories in China in the next 18 months. RTP, Minnesota, USA, will open a TPE plant in Suzhou this month; GLS’s Suzhou plant headquartered in McHenry, Ill., plans to start operations next year; Kraiburg
Bobby Liu, general manager of TPE (China) Co., Ltd., also recently announced that it will build a TPE plant in South China in early 2007. Kraiburg TPE (China) Co., Ltd. is a joint venture between Kraiburg GmbH of Germany and Vancom Plastic Materials Co., Ltd.

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