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Locational Patterns o f the European PVC Industry. Tian Yu 10,11,2008. Thesis Topic. Objectives. For Large-volume plastic materials, study the volumes, traits, advantages and disadvantages, and applications. Select one plastic raw material to study and mention reasons for choosing it.
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Locational Patterns of the European PVC Industry Tian Yu 10,11,2008
Objectives • For Large-volume plastic materials, study the volumes, traits, advantages and disadvantages, and applications. • Select one plastic raw material to study and mention reasons for choosing it. • To understand structure and manufacturing of PVC, and methods for extrusion of PVC pipes and profiles. • To know different regions’ PVC consumption and estimate the future consumption trend. • Use market research methods, to obtain information on PVC producing plants and PVC extrusion plants in the European Union. • Find location of PVC producing and PVC extrusion plants (geographical distribution)by logistics methods. • To understand the current location of PVC plants in Europe, in comparison with locational theory.
Introduciton • Plastic with 100 years history and plays an important role in people’s life. • Plastic is commonly applied for different areas. • For instance, Medicine, Agriculture, Construct, Manufacture, Aviation, etc. • Product: Package, pipe, profile, toys, clothing, film, cable, etc. • Due to it is substitution for many other raw material (metal, woods), and its lower price in addition, plastic becomes a kinds of popular and favorite material.
Literature Survey -Plastic material The figure shows top two large volumes plastic materials consumption were PP (polypropylene) 24% and PVC (polymer of vinyl) 19% in 2007 2007-2009 will be the peak of Net PVC Capacity
Literature Survey -PVC Selection • To maintain eubiosis, reducing the input of original raw materials (forest, mineral resources), PVC as one kind of substitution raw material to wood, aluminum and iron. • Lower cost becomes its main advantage. PVC is easy to manufacture and strong formability, in additional. • The infrastructure construction industry has a large requirement of PVC indeed. • PVC is widely used, in Pipes & Fittings and Profiles like window, door, sheeting, floor and ceiling.
Literature Survey -PVC traits (Adv vs. Dis) • Advantage • Anti-fire, acid and alkali corrosion, light quality, heat insulation and preservation, • Good stability and dielectric property, durable, aging-resistance, • High bending strength and ductility • Easy to shape, construct • Disadvantage • Not good at stand fire resistance and unstable under high temperature • Low chemical resistance • HCL (Hydrogen chloride) discharged from the reaction
Literature Survey -PVC application Pipes & Fittings, and Profile represent the two larger PVC application.
Literature Survey -Pipe and Profile extrusion system Pipe: Hard PVC pipe is mixed with stabilizers, lubricants, and processing aids of prilling to extrusion molding. The processes steps are: supply materials powder - weighing- mixed extrusion prilling- extrusion molding- cooling- cut- test- delivery Profile: PVC compound- vented silos three days to two months-warmed 380 0C- extruder- the following step is similar to pipe extrusion- cooling by air or water- cut
Research Results - World PVC consumption The world PVC consumption has 3% increasing rate per year.
Research Results - World PVC consumptionPVC World consumption in 2005 Western Europe 18% + Eastern Europe 4%= 22% European Total= 30,3 Million Tons *22%= 6,7 Million Tons.
Research Results -Application SectorConsumption of PVC by the Western European construction industry Total consumption of PVC in the Eastern & Central European industry is 474.000 tons when including the PVC used in cables installed in buildings.
Research Results -European PVC resin producerThe top 10 European resin producers account for over 98% of total capacity.
Research Results -European PVC pipe extrusion plants • Pipelife • Dyka and Sotra-Seperef • Uralita • Alphacan • Dietzel-Univolt
Research Results -European PVC Profile extrusion plants • Profine-group • Veka • Tessenderlo • Deceuninck • Rehau • Gealan
RESULTS AND ANALYSIS Results 1) All the PVC resins’ Plant locations are almost along the coastline. 2) The total number of PVC resin plants are 18 which is smaller than the other two type of plants. 3) All the PVC Plants are in Western Europe in the more developed countries. On the other hand, there are a lot of PVC production extrusion plants distributed in Central-Eastern Europe and Scandinavia. 4) There is no Pipe producer plant in Italy while there are 3 Pipe producer in Finland and 2 in Sweden. On the other hand, there is one Profile producer in Italy and none in the other two compared countries.
RESULTS AND ANALYSIS Analysis 1) • oil transport by ship • Easy to get raw material • Saving transportation cost Analysis 2) • PVC plants provide the raw material to various industries (Pipe, Profile, Cable…) • The small number of PVC resin plants not means small capacity
RESULTS AND ANALYSIS Analysis 3) PVC is a raw material is quite easy to transport. Weight, size, and form it is easier to transport than the end products, pipe and profile. So to organize many pipe and profile plants in one country, transportation cost is the only factor to be considered. This is in keeping with the location theory.
RESULTS AND ANALYSIS Analysis 3) • Import PVC is cheap than build Plants in Eastern- Central Europe • Set PVC Production plant there to grab local market • Transportation fee is large for the PVC production • They need more PVC production for the infrastructure construction
RESULTS AND ANALYSIS Analysis 4) • Nordic dislike plastic profile and they prefer to use aluminum rather than plastic. • They like to use wood because there are many forests and nice wooden products. • Italy prefers PP pipe compare to PVC pipe
DISCUSSION Discussion • Not exact location map-eyeball technology • The estimated position is enough and reliable. • Results is accurate for all cases. • Small capacity plants were dropped to simplify thesis and easier achieve results. • Other options of doing this thesis • Use different location techniques (eyeball, grid and network) to calculate the optimal transport route for the PVC industry. • keep the same topic by changing the research object to Asia particularly China. • Further research could be about other raw material for plastic like PP, PE using the same topic.