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 market. Comparisons with other cow1try markets on
points of interest pertinent to the South African market will be
highlighted. In addition to this overview certain opportunities in
the South African market which will also be addressed.
The South African market for glass reinforced plastics has seen some
significant changes in the last few years. These changes will be
mentioned together with other changes which have occurred and in
particular the type of products which are used.
- GROWTH OF THE CRP !'1ARKET IN SOllTH AFRICA ..
Figure I: Illustrates the growth of the Glass Reinforced Plastics market
in South Africa since 1972 and projects the growth through to 1994. As
can be seen the industry has shown a positive growth in real terms of
8.3% until 1989
. INDEX 1973 .. 100


200 ... W-"'\'i---------;
1 00 __ _IIII_IIII ...... _IIIII-IIII-IIIIHllHlllf-IIIIIHII-lIIIII--IIIIt--tIIII-

7374757677787980818283848586878889909192
YEAR
TOTAL SA GRP MARKET
/2
- 2 -
This growth is not expected to be maintained over the next four years
unless interest rates come down and the economy improves. However, the
growth rate is expected to be better than the growth rate for the country.
The market
appliances
is broken
(equipment) ,
consumer/recreation.
- MARKET SEGMENTS -
up into construction,
electrical/electronics,
corrosion, transport,
marine, mining and
Figure 2: Illustrates the market segments
TRANS. 29.3%
CONSTR. 32.7%
APP. EQ 6.2%
MINING 2.6%
CON/REC 7.0%
3.0%
In South Africa, glass reinforced plastics are used extensively in the
construcion and transport markets. The construction market accounts for
32% which involves such products as fibreglass sheeting for greenhouses,
industrial lighting in factory roofs and in the domestic area for awnings
and car ports etc. Other products in this market include the
reinforcement of acrylic baths and showers etc. The transport market
includes the PX 123 Fast Freight containers.
SLIDE
.. /3
- 3 -
C&nopi,,,,ci: fo: bakkies, muffler fibre used in car silencers and then the
more conventional automotive components like bumpers for cars, cab fronts
for 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 industry accounts for 6% of the market. Products which
are commonly found in this market are a variety of parts on stoves,
fridges, washing machines, hair dryers made either from thermoset or
thermoplastic resins (eg handles, switches, trays, etc). This market
offers exceptional opportunities replacing traditional materials like
stainless steel for reinforced plastics.
The electrical
switch boxes,
assemblies.
industry accounts for 5.7% which includes such products as
battery cases, eletric lamp posts and other electronic
The marine industry accounts for 3% of the market. This market includes
all types 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 products included in this segment could be included under
construction and corrosion. The reason for separating the mining industry
from the rest is that it has tremendous potential for the future because
of the recent developments made in phenolic resins.
good flame spread properties and minimal release
burning, compared to other resin systems.
Phenolic resins have
of toxic fumes when
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.
TRANSP 29.3
MINING 2.6
CONS/REC 7
MARINE 3.02
ELEO 6.7
APPL 6.2
SOUTH AFRICA
CORA 18.2
TRANBP 26.4
ELEC 8.8
USA
oonR UI.'
APPL G.a WAftIHI: 7."
MARINE 19.2
e LlO ....
BRAZIL
aR.WHEELS 6.1
AEROBP 1.'5
QIl,WHfUI7.8
The glass reinforced plastics market in South Africa shows a large
dependency on the construction sector. This sector therefore impacts on
the market significantly when.a slump in the building and construction
industries takes place. The Brazilian market is heavily dependent on the
transport industry.
United States.
The marine market plays a very big roll in the
/5
- 5 -
- PRODUCTS -
the major product groups as % of total sales
CS M 60.2
ROVINGS 25.7
NOTE: All figures are shown 86
percentages (,,)
MFFL 2.7
CS 4.5
The products most commonly used in the South African market are chopped
strand mat, rovings 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) account for 26%
chopped strands (SLIDE) for 4.5%
woven ravings (SLIDE) for 6.9% and
Muffler (SLIDE) 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
ROVINGS 35
1985
NOTE: All figures a.re shown in
percentage (%)
CSM eO.2
ROVI N GS 25.7
1989
CS 2.7
MFFL 4.5
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
CS 4,6
ROVINGS 26,7
SOUTH AFRICA 1989
NOTE: All fIgures shown 88
percentages ('ill)
W/ROV 2,6
BRAZIL 1988
MFFL (5,9
The difference lies in chopped strand mat, rovings and chopped strands.
Rovings are used for spray up operations for panel manufactuse, pultrusion
and filament winding. These processes require capital investment and in
some instances fairly significant capital investment. The processes also
require skill to operate. Chopped strands are converted into bulk
molding compound. This involves special mixing equipment. When the
mixing is complete the BMC produced is used in injection molding machines
or presses. Again capital is required along with skill.
Chopped strand mat is used mainly for hand lay up purposes. The cost of
moulds varies but generally is fairly inexpensive.
In conclusion, the product mix is indicative of a market in South Africa
which is still in the growth stage when compared to Brazil and other
countries.
/8
- 8 -
- PLASTICS -
Figure 7: Compares thermosets with thermoplastics
Thermosets
94.0%
Thermoplastics
6.0%
Thermosets and thermoplastics resins are used in the Glass Reinforced
Plastics market. The thermoset resins constitute by far the largest user
of the two, being approximately 94%. Thermoplastics growth is expected
to increase steadily in the future. The reasons for this are
1) The local content programme for the automotive industry has
changed from mass to volume and this must increase the
plastic content in the vehicles.
2) South Africa's polypropylene plant must also encourage the
use of thermoplastics since polypropylene can be used for
various parts on cars.
/9
- 9 -
COMPARISONS OF PER CAPITA/CONSUMPTION OF LAMINATES,
THERMOSETS AND THERMOPLASTICS
KIGOGRAMS
000 /10
- 10 -
Sweden shows a position in aero defence due to exports to NATO
countries.
Finland and Sweden show a high consumption in the marine due to
tradition and due to exports.
USA, Japan and Europe lead all other in construction
sectors.
Japan dominates in the resistance sector due to septic tanks.
USA and Canada,in the transport sector, have double the per capita
consumption of Europe and that of 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 variations from 4.2 kg per in the USA to 0.24 kg in
Mexico reflect numerous factors including level of affluence and
development, mix of industries, effectiveness of missionary market
development role and local fibre glass industry. South 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
Australsia
Canada
Europe (excluding UK)
Far East (excluding Japan)
USSR (excluding Eastern Block
countries)
Middle East
Mediterranean countries
Japan
Scandinavia
South America
United Kingdom
USA
25.0
73.2
86.6
831.0
127.1
72.5
19.8
379.2
89.0
60.0
129.0
1189.7
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 CURVE-
Commodity plastics
Stainless steel
-----,,#"
Superalloys
Speciality metals
~ - - - - - , 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
Aluminium
- - ~ , . . . - - - ~
Growth
Copper
Growth
Declining
Carbon steel
- 12 -
FUTURE
Future potential in the South African market lies in these industries. They are:
1) Mining
2 ) Appliance
3) Electrical
and 4 ) the Automotive industry
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
IRALIA I
W.EUROPEI
~ - - - - - - - - - - - - - - - - : - - - - - - : - - - - - - - : - - - - - - - : - - - - - - : - - - - - - - : - - - - - - - 1 - - - - - l---------l
1 TRANSPORTATION
IRAW LAMINATE
1 TONS
5952 18840 25500 43900: 4001 2800 12553751 165000
:----------------:------1-------1-------1------:-------1-------:------:---------\
1 AUTOMOTIVE
I PRODUCTION
1 IN 1000 UNITS
394 967 1934 122711 398 462 116541- 13274
l----------------l------l-------l-------:------J-------l-------l------I---------:
ILAMINATE PER
IUNIT KG 15.1 19.5 13.2 3.61 10.1 6.1 21.911 12.4
:----------------l------l-------l-------:------:-------l-------l------:---------I
ILAMINATE DEMAND
:IF 2.9 KG PER
:UNIT (SAME AS
1 IN USA)
8634 21190 42380 :2688951 8721 10124 1255375: 290874
:----------------:------:-------:-------1------:-------:-------:------1---------1
1 ADDITIONAL OR
: UNREAL I SED
:LAMINATE DEMAND
2682 2350 16880 :224995: 4721 7324 o 125874
:--------------------------------------------------------------------------------
/13
- 13 -
The current levels of glass reinforced plastics components usage represeryts less
than five per cent of the potential if this proven and commercialised applications
are simply extended to all vehicles produced in that market.
The average glass reinforced plastic laminate consumption per unit of the total
automotive production (cars, trucks and buses) by country indicates a range from
21.9 kg per unit in the USA down to an estimated 3.6 kg in Japan. If all countries
were to use only 21.9 kg per unit the potential additional volume in Japan would be
an extra 225 000 tons an increase of 60% of its present total market size. In
South Africa this potential is also great. Time is also needed to convince
component and assembly manufactures of the advantages of reinforced plastics and to
use them. The suppliers of resins and glass and the converters themselves must
ensure that 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
------------:-------------:---------- -------------:--------------:-----------
BUMPERS 73 28.8 COMPRESSION/ : UP/PU SMC/MF
RTM
____________ I _____________ I __________ _____________ I ~ - - - - - - - ______ 1 ______ -----
BODY PANEL 110 19.3 : COMPRESSION/ UP/PU VARIOUS
PARTS RTM
.------------
-------------
----------:-------------
--_ .... _---------
-----------:
\ COMPLETE & SMC/
: PARTIAL BODY 9 VARIOUS UP MAT CONT
:------------.-------------1----------:------------- --------------1-----------:
\DOOR HANDLES: 18 20.0 INJECTION PA CS
\------------:-------------:----______ 1 ______ -------.-_____________ : ___________ :
: GRILLS 4 INJECTION : VARIOUS : CS
: THERMOPLASTICS:
:------------
-------______ 1 ______ ----
-------------1--------------1-----------\
\ HEADLAMP
'SURROUNDS 34 9.6 INJECTION UP/PA CS
& PANELS
-------------1-------------- -----------1
ROOF 18 COMPRESSION 1 UP SMC
COMPONENTS /SMC
------------\-------------
----------,-------______ 1 ______ --------
-----------\
SPOILERS 31 3.3
1
1
VARIOUS UP/PU VARIOUS
------______ 1 ______ -------:----------\------------- _________________________ \
TAIL LAMP
iHOUSINGS
:------------
:MISC
\EXT. PARTS
6 : INJECTION
\ COMPRESSION
-------------i----------i-------------
51 (3.7) INJECTION
VARIOUS CS/SCM
--------.--- :
PA CS
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
:MISC. ELEC.: 15 38 INJECTION PA CS
1 PARTS
1 ______ -----:-------------:-----------:--------------
--------------1------------
TRANS. : 6 : (100) : INJECTION PA CS
PARTS
- - - - - - - - - - - : - - - - - - - - - - - - - : - - - - - ~ - - - - - : - - - - - - - - - - - - - - --------------:------------
TRUCK AND 1 388 14.7 COMPRESSION UP VARIOUS
VAN PARTS
-----------:-------------:-----------:--------------
--------------1------------
KEY PA
UP
CS
MF
POLYAMIDE
UNSATURATED POLYESTERS
CHOPPED STRANDS
MILLED FIBRE
ABS - ACRYLONITRILE BUTADIENE-STYRENE
SMC - SHEET MOLDING COMPOUND
PP - POLYPROPYLENE
PU - 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 PA CS
------------:------------- -----------
--------______ 1 ______ ----------:-----------
BELT COVERS : 8 33.3 INJECTION PA/PP CS
------------\-------------\----------- --------------
----------______ 1 ______ -----
1 ENGINE COOL.: 10 INJECTION PA/PP CS
:FANS & PARTS:
:------------:-------------:----------- -------------- ---------------- -----------
:FAN SHROUDS: 17 : 41.0 INJECTION PA/PP CS
:AND PARTS
:------------:-------------:-----------:--------------:----------------
\ HEATER
: HOUSING
: PARTS
& 16
, ,
1 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--------------:----------------'-----------:
INSTRUMENT: 27 INJECTION ABS/PA CS:
PANEL PARTS l
------------:------------- -----------:--------------:---------------- -----------:
SEATING 22 15.7 INJECTION l PA VARIOUS
COMPONENTS
------------:------------- -----------:--------------:---------------- -----------:
\TRIM 15 : COMPRESSION/ : UP VARIOUS
: COMPONENTS INJECTION
:------------:-------------:-----------:--------------:---------------- -----------:
:MISC :
: PASSENGER: 41 17.1 INJECTION PA CS
:COMP. PARTS:
: - - - - - - - - - - - - : - - - - - - - - - - - - - : - - - - - - - - - - - : - - - - - - - - - - - - - - : - - - - - ~ - - - - - - - - - - -----------:
Bibliography:
Thanks to:
SPI Conference and papers
Owens Corning Fiber Glass
AFI Marketing Department
Leonie le Roux
Elaine Vels