Acrylic Resins with Forecasts to 2005 and 2010

US Outlook for Acrylic Resins with forecasts to 2005 and 2010

• Demand for acrylic resins will increase 3.9 percent per year to 3.7 billion pounds in 2005, valued at $2.6 billion.

• The largest market for acrylic resins (accounting for nearly one-third of total demand in 2000) is the manufacture of paints and coatings.

• The US acrylic monomers industry is extremely concentrated, with just six companies -- Rohm and Haas, INEOS Acrylics (formerly ICI Acrylics), Celanese, Dow Chemical, CYRO Industries (a joint venture of Rohm GmbH and Cytec), and BASF -- supplying nearly 90 percent of total demand. Freedonia Industry Study #1492 Study Publication Date: December 2001 Price: $3,600 Acrylic Resins Pages: 237

Acrylic Resins, a new study from The Freedonia Group, provides you with an in-depth analysis of major trends in the industry and the outlook for product segments and major markets -- critical information to help you with strategic planning.

This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Acrylic Resins. Order- ing information is included on the back page of the brochure.

Brochure Table of Contents

Study Highlights ...... 2 Table of Contents and List of Tables and Charts ...... 4 Sample Pages and Sample Tables from: Market Environment ...... 6 Acrylates and Methacrylates...... 7 Markets...... 8 Industry Structure ...... 9 Company Profiles ...... 10 List of Companies Profiled ...... 11 Forecasting Methodology ...... 12 About the Company ...... 13 Advantages of Freedonia Reports ...... 13 About Our Customers ...... 14 Other Titles From Freedonia ...... 15 Ordering Information...... 16 Study Highlights

• Demand for acrylic resins will increase 3.9 percent per year to 3.7 billion pounds in 2005, valued at $2.6 billion.

• While methacrylates will continue to account for the majority of acrylic resins demand, acrylates will record more rapid growth through 2005, the result of the latter's lower level of dependence upon highly cyclical markets, such as transportation equipment and construction.

• The largest market for acrylic resins (accounting for nearly one-third of total demand in 2000) is the manufacture of paints and coatings.

• The plastics industry will record above-average growth in demand, as the number of applications grows for polymer property modifiers.

• The US acrylic monomers industry is extremely concentrated, with just six companies -- Rohm and Haas, INEOS Acrylics (formerly ICI Acrylics), Celanese, Dow Chemical, CYRO Industries (a joint venture of Rohm GmbH and Cytec), and BASF -- supplying nearly 90 percent of total demand.

Acrylic Resins #1492 Freedonia Industry Study 2 Study Highlights Acrylic Resins Demand by Monomer, 1995 Versus 2000 (million pounds)

2000

1500

1995 1000 2000

500

0 Acrylates Methacrylates

Acrylic Resins Demand (million pounds) % Annual Growth Item 1995 2000 2005 2010 00/95 05/00

Gross Domestic Product (bil 1996$) 7544 9224 10550 12100 4.1 2.7 lbs acrylic/mil $ GDP 323 330 349 370 -- --

Acrylic Resins Demand 2437 3042 3685 4475 4.5 3.9 By Monomer: SUMMARY TABLE Methacrylates 1259 1626 1945 2330 5.2 3.6 Acrylates 1178 1416 1740 2145 3.7 4.2

By Market: Paints & Coatings 804 986 1200 1465 4.2 4.0 Construction 352 443 515 605 4.7 3.1 Plastics 237 311 395 490 5.6 4.9 Textiles & Fibers 249 269 305 350 1.6 2.5 Industrial & Commercial 179 258 310 370 7.6 3.7 Adhesives 177 227 280 345 5.1 4.3 Paper & Paperboard 123 156 200 260 4.9 5.1 Other Markets 316 392 480 590 4.4 4.1

$/lb 0.62 0.64 0.70 0.76 0.6 1.8 Acrylic Resins Demand (mil $) 1509 1946 2580 3380 5.2 5.8

Acrylic Resins #1492 Order form on last page 3 Paints & Coatings ...... 39 List of Contents, Paints & Coatings Outlook...... 39 Table - Paints & Coatings Shipments ...... 41 Tables and Charts Acrylic Resins Demand ...... 42 Table - Paints & Coatings Markets for Acrylic Resins ....44 Construction ...... 44 Construction Overview...... 45 Table - Construction Activity ...... 46 I. EXECUTIVE SUMMARY Acrylic Resins Demand ...... 46 Summary Table ...... 3 Table - Construction Markets for Acrylic Resins...... 48 Plastics ...... 48 II. MARKET ENVIRONMENT Plastics Industry Overview ...... 48 General ...... 4 Table - Plastics Supply & Demand ...... 50 Macroeconomic Environment ...... 5 Acrylic Resins Demand ...... 50 Table - Macroeconomic Indicators ...... 7 Table - Plastics Markets for Acrylic Resins ...... 52 Consumer Spending Trends ...... 7 Textiles & Fibers ...... 53 Table - Consumer Spending Activity...... 9 Textile & Fiber Products Overview ...... 53 Demographic Trends ...... 9 Table - Textile & Fiber Industry Indicators ...... 54 Table - Demographic Indicators ...... 11 Acrylic Resins Demand ...... 54 Manufacturing Outlook ...... 11 Table - Textiles & Fibers Markets for Acrylic Resins ...55 Table - Manufacturers’ Shipments ...... 14 Industrial & Commercial ...... 56 Historical Trends ...... 14 Retail Sales Outlook ...... 56 Table - Acrylic Resins Historical Trends ...... 16 Table - Retail Sales ...... 58 Chart - Acrylic Resins Historical Trends ...... 16 Acrylic Resins Demand ...... 58 Technology ...... 17 Table - Industrial & Commercial Production Processes ...... 18 Markets for Acrylic Resins ...... 59 Polymerization Processes ...... 21 Adhesives & Sealants ...... 60 Feedstocks...... 23 Adhesives & Sealants Overview ...... 60 Table - Feedstocks Consumption ...... 26 Table - Adhesives & Sealants Production ...... 61 Environmental & Regulatory Considerations ...... 26 Acrylic Resins Demand ...... 61 Environmental Factors ...... 27 Table - Adhesives & Sealants Markets for Acrylic Resins ....63 Health Factors...... 27 Transportation Equipment ...... 63 Recycling ...... 29 Transportation Markets Overview ...... 64 Pricing Considerations ...... 30 Table - Transportation Equipment Shipments ...... 65 Table - Acrylic Resins Pricing ...... 31 Acrylic Resins Demand ...... 65 Acrylates ...... 31 Table - Transportation Equipment Methacrylates...... 32 Markets for Acrylic Resins ...... 66 Foreign Trade ...... 33 Paper & Paperboard ...... 67 Table - Foreign Trade in Acrylic Resins ...... 34 Paper & Paperboard Overview ...... 67 International Activity ...... 35 Table - Paper & Paperboard Production ...... 68 Acrylates ...... 35 Acrylic Resins Demand ...... 68 Methacrylates...... 36 Table - Paper & Paperboard Markets for Acrylic Resins ...69 Consumer Products ...... 70 III. ACRYLIC RESIN MARKETS Table - Consumer Products Markets for Acrylic Resins ...71 General ...... 37 Other Markets ...... 71 Table - Acrylic Resins Markets ...... 38 Table - Other Markets for Acrylic Resins...... 73 Chart - Acrylic Resins Markets, 2000...... 39

Acrylic Resins #1492 Freedonia Industry Study 4 IV. ACRYLATES General ...... 74 Butyl Methacrylate ...... 115 Acrylates Producers & Capacity ...... 75 Lauryl Methacrylate ...... 117 Table - Acrylates Capacity by Producer, 2000 ...... 77 Stearyl Methacrylate ...... 117 Chart - Acrylates Esters Capacity by Producer, 2000 ...... 78 Isobutyl Methacrylate ...... 118 Acrylates Supply & Demand ...... 78 Glycidyl Methacrylate...... 118 Table - Acrylates Supply & Demand ...... 80 Ethyl Methacrylate ...... 119 Acrylates Demand by Type ...... 80 Miscellaneous Methacrylates ...... 120 Table - Acrylates Demand by Type ...... 81 Methacrylates Markets ...... 122 Chart - Acrylates Demand by Type, 2000 ...... 81 Table - Methacrylates Demand by Market ...... 123 Butyl Acrylate ...... 82 Chart - Methacrylates Markets, 2000 ...... 123 Table - Butyl Acrylate Demand ...... 83 Construction ...... 124 Ethyl Acrylate ...... 83 Table - Construction Markets for Methacrylates ...... 125 Table - Ethyl Acrylate Demand ...... 84 Paints & Coatings ...... 126 Ethylhexyl Acrylate...... 85 Table - Paints & Coatings Markets for Methacrylates 127 Table - Ethylhexyl Acrylate Demand ...... 86 Industrial & Commercial ...... 127 Other Acrylates ...... 86 Table - Industrial & Commercial Table - Other Acrylates Demand ...... 88 Markets for Methacrylates ...... 129 Acrylates Markets ...... 88 Plastics ...... 129 Table - Acrylates Demand by Market ...... 89 Table - Plastics Markets for Methacrylates ...... 130 Chart - Acrylates Demand by Market, 2000...... 89 Transportation Equipment ...... 130 Paints & Coatings ...... 90 Table - Transportation Equipment Table - Paints & Coatings Markets for Acrylates ...... 93 Markets for Methacrylates ...... 132 Textiles & Fibers ...... 93 Adhesives & Sealants ...... 132 Table - Textiles & Fibers Markets for Acrylates ...... 95 Table - Adhesives & Sealants Adhesives ...... 95 Markets for Methacrylates ...... 133 Table - Adhesives & Sealants Markets for Acrylates .....97 Consumer Products ...... 133 Paper & Paperboard ...... 97 Table - Consumer Product Markets for Methacrylates .. 135 Table - Paper & Paperboard Markets for Acrylates ...... 98 Other Markets ...... 136 Plastics ...... 99 Table - Other Markets for Methacrylates...... 139 Table - Plastics Markets for Acrylates ...... 101 Other Markets ...... 101 VI. INDUSTRY STRUCTURE Table - Other Markets for Acrylates ...... 103 General ...... 140 Industry Concentration & Market Share ...... 140 V. METHACRYLATES Chart - Acrylic Resins Market Share, 2000 ...... 142 General ...... 104 Acrylates ...... 143 Methacrylates Producers & Capacity ...... 104 Chart - Acrylates Market Share, 2000 ...... 144 Table - Methacrylates Capacity by Producer, 1998 ..... 107 Methacrylates...... 145 Chart - Methacrylates Capacity by Producer, 2000 ..... 107 Chart - Methacrylates Market Share, 2000 ...... 146 Methacrylates Supply & Demand ...... 108 Industry Restructuring ...... 146 Table - Methacrylates Supply & Demand ...... 109 Table - Selected Acquisitions & Divestitures ...... 148 Methacrylates Demand by Type ...... 109 Cooperative Agreements ...... 151 Table - Methacrylates Demand by Type ...... 110 Table - Selected Cooperative Agreements ...... 152 Methyl Methacrylate ...... 110 Marketing & Distribution ...... 154 Table - Methyl Methacrylate Supply & Demand .... 113 Research & Development ...... 156 Other Methacrylates ...... 113 Competitive Strategies ...... 158 Table - Other Methacrylates Supply & Demand ..... 114 Company Profiles ...... 160-237 Chart - Other Methacrylates Demand by Type, 2000 ... 115

Acrylic Resins #1492 Order form on last page 5 Market Environment

The Market Environment Section discusses factors influencing acrylic resin demand, including technology

and environmental considerations. MARKET ENVIRONMENT

This information provides you with an Feedstocks understanding and an analysis of the Demand for raw materials used in the manufacture of acrylic monomers will climate in which the acrylic resins expand 3.8 percent per year to 4.4 billion pounds in the year 2005. Raw material SAMPLE PAGE industry operates. feedstocks utilized in the production of acrylic resins consist primarily of acetone and hydrogen cyanide (to produce methacrylates), acrylic acid (to produce acrylates) and a range of monohydric alcohols with which the feedstocks are reacted to produce the various acrylic monomers. Other chemicals, while not feedstocks, are also utilized, including catalysts and sulfuric acid. In general, the feedstocks and other necessary chemicals required for acrylic resins production are widely available and in adequate supply.

Back-integration into raw materials is commonplace in the acrylates sector of the industry, with all four producers operating acrylic acid production facilities. In addition, three of the four manufacture at least some of the alcohols required for acrylics production. In methacrylates, however, the situation is markedly different. Apart from Rohm and Haas, which produces its own hydrogen cyanide, methacrylate producers must purchase their raw material requirements on the merchant market. Overall, Dow Chemical is the most back-integrated, with in- house production of acrylic acid, ethanol, butanol, ethylhexanol and isopropanol.

The supply of monohydric alcohols for use in acrylic resin manufacture is more than adequate, and there are a number of different sources for these products. The principal alcohols used in the manufacture of acrylic resins are methanol, butanol, ethanol and ethylhexanol. The supply of methanol and ethanol is not expected to be a problem, since acrylics production represents a comparatively small end use. With respect to butanol and ethylhexanol, however, the situation is different since acrylics manufacture represents a significant outlet for both alcohols.

Acetone is the largest volume feedstock used in the manufacture of methacrylates, specifically methyl methacrylate. Unlike acrylates, which all begin with acrylic

Acrylic Resins #1492 Freedonia Industry Study 6 Acrylates & Methacrylates

These Sections provide demand for historical years and forecast growth to 2005 and 2010.

ACRYLATES This information helps you: Acrylates Demand by Type - Ethyl Acrylate

• Analyze your company's Demand for ethyl acrylate will advance 3.8 percent per year to 315 million pounds SAMPLE PAGE growth potential in in the year 2005, valued at $200 million. Gains will result from increasing use in the industry. paints and coatings, as well as its growing use as an intermediate in specialty polymers, such as ethylene ethyl acrylate (EAA). Ethyl acrylate, which is slightly less expensive than butyl acrylate, imparts a moderately higher level of abrasion • Outline your strategic resistance to the end product and is thus frequently used in conjunction with butyl plans for five and ten acrylate. years out. Producers of ethyl acrylate include BASF, Celanese, Dow Chemical and Rohm and Haas, all of whom are back-integrated into acrylic acid. Celanese is primarily a • Establish sales goals. merchant marketer, while the others all use some of their production captively. Allchem and Ashland Chemical also market ethyl acrylate in the US.

Methyl MethacrylateEthylhexyl Supply Acrylate & Demand (million pounds) Demand for ethylhexyl acrylate will increase 3.2 percent annually to 145 million pounds in the year 2005, valued at $100 million. Gains will result primarily from Item the increased production of1990 paints and 1995 coatings. 2000 In particular, 2005 ethylhexyl 2010 acrylate is used in automotive clearcoats. In addition to being the acrylic base resin in Methyl Methacrylate Productionautomotive clearcoats, ethylhexyl1050 acrylate 1241 also 1510 helps to 1780protect the 2100 finish from damage and fading caused by ultraviolet (UV) rays. + imports 3 38 45 55 60 - exports 125 155 90 80 60 Ethylhexyl acrylate is somewhat more specializedSAMPLE than either TABLE butyl or ethyl Methyl Methacrylate Demandacrylate. The relatively low 928 level of1124 production 1465 eliminates 1755 economies 2100 of scale, so PMMA Sheetthat selling prices for ethylhexyl 331 acrylate 418 are higher 573 than 675other commodity 800 PMMA Molding & Powderacrylates. Resins 162 197 255 305 365 Other Polymer Forms 435 509 637 775 935

Manufacturers of ethylhexyl acrylate include BASF, Celanese and Dow Chemical. $/lb 0.48 0.68 0.65 0.72 0.77 Methyl Methacrylate Demand (mil $) 445 764 952 1265 1620

% methyl methacrylate 88.7 89.3 90.1 90.2 90.1 Methacrylates Demand (mil lbs) 1046 1259 1626 1945 2330

Acrylic Resins #1492 Order form on last page 7 Markets

The Markets Section analyzes trends and considers the threats and opportunities in each of the major ACRYLIC RESIN MARKETS markets for acrylic resins.

Industrial & Commercial - Acrylic Resins Demand The information presented will help you: Demand for acrylic resins in industrial and commercial markets will increase 3.7 percent annually to 310 million pounds in the year 2005. Demand in these applications is accountedSAMPLE for entirely PAGE by methacrylates, which are consumed in the • Focus your sales and marketing form of polymethyl methacrylate (PMMA) sheet and molding resins. Commercial efforts on high growth areas. applications (retail signage) will record more rapid growth, as the clarity, toughness and competitive cost of acrylic signage boosts market penetration. Industrial • Propose new areas for development. applications will record more modest growth, reflective of slowing growth in industrial production.

In commercial markets, PMMA sheet products manufactured from methyl methacrylate are expected to continue to take market share from wood and neon signs due to their superior protection against the elements, vandalism and other damage. In addition, back-lit acrylic signage is becoming the dominant choice for free-standing signs which are designed primarily to increase the visibility of a range of retail and commercial establishments. Apart from exterior signage, commercial applications also include point-of-sale (POS) advertising, poster boxes (eye level advertising fixtures mounted in transit stations and shopping malls) and other advertising displays. Plastic Markets for Acrylic Resins by Monomer & Application (million pounds) In industrial segments of the market, products include goggles, face plates, Item equipment housings and screens.1990 These 1995 products 2000 shield workers 2005 from 2010 the moving parts of industrial machinery or from other workplace hazards, such as flying Plastics Production (bil shredslbs) of debris or extreme62.0 heat. Competing 78.7 materials 98.8 include 118.5 polycarbonate 139.8 and lbs acrylics/000 lbs plasticpolyethylene terephthalate 2.8(PET), although 3.0 acrylics 3.1 generally 3.3 maintain 3.5 a competitive advantage over polycarbonate in price, while PET products are more Acrylic Resins in Plasticsor less limited to light duty 172 applications. 237SAMPLE 311 TABLE 395 490 By Monomer: Acrylates 64 92 122 155 190 Methacrylates 108 145 189 240 300

By Application: Property Modifiers 114 159 211 270 340 Co-Monomers 58 78 100 125 150

% plastics 8.7 9.7 10.2 10.7 10.9 Acrylic Resins Demand 1971 2437 3042 3685 4475

Acrylic Resins #1492 Freedonia Industry Study 8 Industry Structure Sample page from Freedonia Industry Study

Gain#1117 a better Fractional understanding Horsepower of your Motors competition and analyze your company's position in the industry with information about:

• industry composition & market share INDUSTRY STRUCTURE

• competitive strategies Research & Development

As in most chemicals and plastics businesses, research and development efforts are • industry restructuring an important part of any competitor’s acrylics business. By and large, research efforts have focused on the development of new products, with improved • marketing & distribution performance characteristics or wider application. In addition, a number of companies have expanded their research and development efforts in order to widen • research & development their product lines. SAMPLE PAGE The primary area of research has been the development of new products. For • cooperative agreements example, a number of producers have developed methyl methacrylates which are resistant to gamma radiation (for medical devices), ultraviolet stable grades (for construction products) and specialized emulsions and suspensions (for coatings and adhesives manufacture).

Additionally, companies have moved to expand their technological reach through the licensing of production methods which lower manufacturing costs and/or reduce environmental problems. For example, several Japanese producers (particularly Asahi and Nippon Shokubai) license their methyl methacrylate processes worldwide, although these processes are not yet in use in the US.

Asahi Chemical has developed a process through which methyl methacrylate is manufactured via direct esterification. Asahi Chemical is currently the only producer in the world using this process, at a 135-million- pound-per-year plant in Kawasaki, Japan. The plant, which has been in operation since early 1999, will soon be expanded to 220 million pounds. The process is expected to decrease costs related to building MMA plants. A 65- million-pound-per-year facility, which uses the acetone cyanohydrin process, has been closed.

Shell has developed a process for manufacturing methyl methacrylates (and other methacrylates) which uses methylacetylene and propadiene as feedstocks. The

Acrylic Resins #1492 Order form on last page 9 Company Profiles

The Profiles Section analyzes 40 companies active in the U.S. acrylic resins market. These profiles represent a sampling or cross-section of the types

of companies involved in the industry. COMPANY PROFILES

Divisions, subsidiaries, joint Cytec Industries Incorporated Five Garret Mountain Plaza ventures, etc., are discussed under West Paterson, NJ 07424 appropriate parent companies. 973-357-3100 http://www.cytec.com

Sources for profiles included:

Cytec is a vertically integrated industrial chemicals company which operates in • Information provided by four segments: Water and Industrial Process Chemicals, Specialty Materials, Performance Products and Building Block Chemicals. Cytec’s 2000 sales totaled key staff members in the $1.5 SAMPLEbillion, of which PAGE sales to the million. The Company employed 4,800 in respective companies 2000.

The Company is involved in the US acrylic resins industry through the Building • Annual reports Block Chemicals, Water and Industrial Process Chemicals, and Performance Products segments, as well as through the CYRO Industries joint venture. Through the Building Block Chemicals segment, Cytec manufactures such chemical • 10-K reports intermediates as acrylonitrile, acrylamide, hydrocyanic acid, melamine and sulfuric acid for internal consumption as well as sale to the merchant market. These raw • Security analysts reports materials are produced primarily at a facility in Fortier, Louisiana.

As of 2000, the Building Block Chemicals segment had a capacity for 475 million • Corporate product literature pounds of acrylonitrile annually. Approximately 25 percent of the segment’s acrylonitrile is designated for captive use by Cytec for the production of acrylamide. An estimated 40 percent of the segment’s capacity for 200 million pounds of acrylamide is used by the Company’s Performance Products segment for the manufacture of flocculants. Virtually all of the segment’s hydrocyanic acid, a by-product of the acrylonitrile process, is sold to CYRO Industries (Rockaway, New Jersey), a joint venture between Cytec and Röhm GmbH and Company KG (Germany), a subsidiary of E.ON AG (Germany). Hydrocyanic acid is a raw

Acrylic Resins #1492 Freedonia Industry Study 10 Companies Profiled Air Products and Chemicals Inc. International Specialty Products Inc. Wacker Polymer Systems GmbH Johnson (SC) & Son Inc. Akzo Nobel NV Kelly-Moore Paint Co. Inc. Ashland Inc. Ponderosa Paint Manufacturing Inc. Drew Industrial Landec Corp. Avecia Dock Resins Corp. NeoResins Mitsubishi Corp. Avery Dennison Corp. Aristech Acrylics LLC BASF AG Mitsui Chemicals Inc. Chemdal International Anderson Development Co. Bayer AG Nippon Shokubai Co. Ltd. PolymerLatex GmbH & Co. KG American Acryl Sybron Chemicals Inc. NA Industries Inc. Ciba Specialty Chemicals Inc. Noveon Inc. Cytec Industries Inc. OMNOVA Solutions Inc. CYRO Industries Plaskolite Inc. Dainippon Ink and Chemicals Inc. Continental Acrylics Inc. Reichhold PPG Industries Inc. Dow Chemical Co. Rhodia SA Union Carbide Corp. Albright & Wilson Ltd. DuPont (EI) de Nemours Rohm and Haas Co. E.ON AG StoHaas Monomer GmbH and Co. KG Creanova SNF Floerger SA CYRO Industries Axchem Solutions Inc. Degussa Corp. Bio-Flocryl Inc. PolymerLatex GmbH & Co. KG Chemtall Inc. Röhm GmbH and Co. KG Flocryl SKW Trostberg AG NCF Manufacturing Co. StoHaas Monomer GmbH and Co. KG Polychemie Inc. VEBA AG Polydyne Inc. Eastman Chemical Co. Solutia Inc. ABCO Industries Inc. Vianova Resins GmbH Lawter International Inc. Sunoco Inc. McWhorter Technologies Inc. Aristech Chemical Corp. Exxon Mobil Corp. Total Fina Elf SA Fuller (HB) Co. American Acryl Goodrich Corp. Atoglas Henkel KGaA Cook Composites and Polymers Cognis Corp. Sartomer Co. Loctite Corp. UCB SA Imperial Chemical Industries plc Radcure Emerson & Cuming Valspar Corp. National Starch and Chemical Co. Engineered Polymer Solutions Inc. Permabond International Lilly Industries Inc. TRA-CON Inc. INEOS plc ICI Acrylics Phenolchemie

Acrylic Resins #1492 Order form on last page 11 Forecasting Methodology

Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, government and trade literature. Once this The Freedonia research is complete, Freedonia establishes Economics Group Freedonia one set of forecasts. All writing, editing In-house Research Consistent framework and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting quality and consistency. In cases where • Plastics Production • Industry structure & market • Nondurable Goods Shipments share analyses data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts data based on input/output ratios, bills of . . . and many others materials and flow charts. The following chart summarizes Freedonia's methodology:

Methodology for Acrylic Resins

Proprietary Extensive Interviews Electronic Database • Key participants • Trade publications • Industry experts • Government reports • End-users • Corporate literature • Online databases . . . and many others

Acrylic Resins #1492 Freedonia Industry Study 12 The Freedonia Group, Inc. is a leading international industry study/ About database company. The Freedonia Group Since 1985, Freedonia has published over 1,600 titles covering areas such as chemicals, coatings and adhesives, building materials, plastics, industrial components and equipment, health care, packaging, household goods, security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Acrylic Acid & Derivatives • Powder Coatings • Paint & Coating Materials • World Pulp & Paper

Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, Chemical Market Reporter and Chemical Week.

Advantages In-house operations of Freedonia Reports Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.

Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, plastics production, nondurable goods shipments, etc.)

Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.

One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.

Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.

Acrylic Resins #1492 Order form on last page 13 About Our Customers

Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives • Corporate Planners • Market Researchers • Financial Analysts • Information Centers • New Product Developers • Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

Some of Freedonia's customers in the acrylic resins market include: BASF, Dow Chemical, Imperial Chemical Industries (ICI), and Rohm and Haas.

Acrylic Resins #1492 Freedonia Industry Study 14 Acrylic Acid & Derivatives US demand for acrylic acid and derivatives will Other Titles advance 4.2% per year through 2005. Good prospects for acrylic acid polymers include adult incontinence superabsorbent polymers and water From Freedonia treatment detergent polymers. Opportunities for acrylate esters include radiation cured acrylic coatings and pressure sensitive acrylic adhesives. Radiation-Cured Products This study analyzes the $1.2 billion US acrylic Demand for radiation-cured (radcure) products acid and derivatives industry to 2005 and 2010 in the US will grow 9.4% annually. Gains will be For more information about by type and market. It also presents market share driven by intense product development and in- data and profiles leading producers. creased awareness of radcure’s benefits among these or other Freedonia titles, #1488...... 11/01...... $3,500 end users. Coatings and inks will remain the largest products, with packaging the leading outlet. please contact us at: Flooring will replace printing and publishing as the second largest market. This study analyzes World Paints & Coatings The Freedonia Group, Inc. the $1 billion US radcure products industry to Global demand for paints and coatings will ex- 2005 and 2010 by type and market. It also pre- Phone: (440) 684-9600 pand to 28.3 million metric tons in 2005, valued sents market share data and profiles key firms. at US$83.5 billion. Gains will be driven by a #1399...... 3/01...... $3,700 (800) 927-5900 sustained expansion in new construction and steady gains in income. Applications such as ap- Fax: (440) 646-0484 pliances, furniture, marine coatings, industrial maintenance coatings and traffic paints will also post solid gains. This study analyzes the world Adhesives paint and coating industry to 2005 and 2010 by Demand for adhesives in the US will reach 15.2 type, region and for 25 countries. It also evalu- billion pounds in 2004. Gains in value demand ates market share and profiles key companies. will benefit from rising raw material costs and a shift to higher priced hot melts and emulsions. #1437...... 7/01...... $4,700 Specialty and engineering adhesives will grow the fastest as they find greater use in construction and durables manufacturing, often at the expense Powder Coatings of conventional fasteners. This study analyzes the Demand for powder coatings in the US will rise $8.4 billion US adhesives industry to 2004 and 7.9% per year to 505 million pounds in 2005. 2009 by market and type. It also details market Gains will be driven by environmental benefits share and profiles key firms. over non-compliant solvent-based coatings, ex- #1382...... 1/01...... $3,700 cellent adhesion and favorable performance. Sup- pliers are also rapidly expanding the functional range of powders into non-metal substrates such as wood and plastics. This study analyzes the $1 Paint & Coating Materials: billion US powder coatings industry to 2005 and 2010 by product and end use. It also evaluates Resins, Pigments & Solvents market share and profiles key firms. US demand for paint and coating materials will #1426...... 5/01...... $3,700 approach 11 billion pounds in 2004. Gains will be driven by more environmentally compliant coatings (e.g., water-based, high-solids, powder, radiation-cured) which require higher raw mate- Adhesives & Sealants - rial loadings. Solvent-based paints will remain a Private Companies Report major raw material in key heavy duty coating Six private companies had adhesives and sealants segments. This study analyzes the $6.8 billion sales of at least $100 million in 2000. Another US paint and coating materials industry to 2004 four private firms had related sales of at least and 2009 by type and market. It also evaluates $50 million, and 31 others had total sales of market share and profiles key firms. $50+ million, including other products. This re- #1334...... 10/00...... $3,500 port profiles 150+ private US firms (e.g., ADCO Global, Binney & Smith, Borden, Franklin Intl., Gardner Asphalt, Henry, Lord, Neste Resins, Sovereign Specialty Chemicals, Vantico). It also includes market share, acquisition reviews, geo- graphic analysis and industry forecasts. #1401...... 3/01...... $3,200

Acrylic Resins #1492 Order form on last page

15 How to Order

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Email: Credit Card # Expiration Date SHIPPING and HANDLING charges are FREE via UPS (USA only) or airmail. Express delivery available at cost. Signature: F-SM.1492 Please inquire.