The polypropylene industry has just turned 40 years old. Demand growth has continued to be strong owing to the performance versatility of the polymer. Demand drivers include:
- Inter-material substitution (e.g., paper, wood, glass, aluminum, metal)
- Economic growth (e.g., consumer spending)
- Intra-polymer substitution (e.g., PE, PS, PVC, ABS, PNPET, etc.)
- New applications
The initial demand growth, which was largely dependent on the inter-material substitution of classic non-polymeric materials, came as a result of polypropylene's inherent properties and low cost structure. In order to drive demand, producers aggressively improved the process and catalyst technology in order to make the polymer more cost competitive and at the same time significantly expand the product performance envelope.In the 1990s, the current state-of-the-art processes have generally advanced along the lines of efficiency. Basic process designs have not changed substantially, but through evolutionary catalyst improvements, and the availability of larger equipment, manufacturers have been able to achieve higher capacity in a single line, thereby improving economics. With regard to product enhancement, the effort has been largely in the area of improving the high value product/properties of high melt flow homopolymers, improved clarity, low heat-seal random copolymers, and high impact copolymers. All the homopolymer processes are capable of producing commodity grade types that the market needs, with some distinction of the range of property specification (such as higher MFR). There is more of a distinction in the gas-phase copolymerization processes with respect to rubber content and balance of stiffness and import properties. Thus, if a potential licensee wants to produce a particularly demanding range of copolymers, the choice of process is more limited. A process technology shift has taken place in the 1990s, as shown below. Bulk process plants comprised over half the polypropylene plants operating in both 1990 and 1999. However, as a percentage, gas-phase plants increased from 15 percent in 1990 to 28 percent of total capacity in 1999, nearly quadrupling the total gas-phase capacity. The licensing field has become highly competitive, since producers worldwide have chosen to enter or expand their businesses via outside technology. Over the past year or so, leading licensors have become more aggressive and others (e.g., Borealis) have entered the licensing business. Technology differentiation is often related to commercial issues rather than strictly technical ones. Commercial issues include product offtake, synergy with a licensee's business, infrastructural issues, and project support.
|
