POLYMERIC FOAMS MCP-1174 A GLOBAL STRATEGIC BUSINESS REPORT CONTENTS I. INTRODUCTION, METHODOLOGY & Table 1: Global Polyurethane Consumption by End-Use in PRODUCT DEFINITIONS 2004: Percentage Breakdown for Furniture, Automotive, Construction, Electrical Appliances, Recreational Equipment, Case Applications and Miscellaneous II. EXECUTIVE SUMMARY Applications (includes corresponding Graph/Chart).....II-12 Production Process............................................................II-12 1. Outlook ..................................................................................II-1 Isocyanates....................................................................II-12 2. Product and Market Analyses .........................................II-2 Polyols...........................................................................II-12 Polyethers ..................................................................II-13 Polymers ................................................................................II-2 Polyesters...................................................................II-13 Classification......................................................................II-2 MDI: A Key Raw Material............................................II-13 Thermoplastics................................................................II-2 Product Profile ..............................................................II-13 Thermosets......................................................................II-2 Chemical Composition...............................................II-13 Hybrid Plastics................................................................II-2 Properties...................................................................II-14 Polymeric Foams....................................................................II-2 Polymeric MDI ..........................................................II-14 Predominant Foam Materials and their Applications..........II-3 Applications of MDI..................................................II-14 Specialty Foam.......................................................................II-3 Market Profile ...............................................................II-15 Polyolefins .............................................................................II-4 Table 2: MDI Capacity Addition in Asia in 2001 by BASF, Overview ............................................................................II-4 BASF/Huntsman, Bayer and Mitsui Takeda (In ‘000 Polyolefin Foams................................................................II-4 Tons/Year) (includes corresponding Graph/Chart) ...II-15 Cross Linked Poly Olefin Foams (XLPO) ..........................II-5 End-Use Applications.........................................................II-5 Dominance by a Few Players.....................................II-15 Sports ..............................................................................II-5 Table 3: Global MDI Producers and their Capacity Appliances.......................................................................II-5 in 2001 (In ‘000 Tons/Year) ...................................II-15 Construction....................................................................II-5 TDI................................................................................II-16 Marine.............................................................................II-6 Medical ...........................................................................II-6 Table 4: Major TDI Producers & Production Capacities in 2001 for BASF, Bayer, Dow, Lyondell, Footwear .........................................................................II-6 and Rubicon (In Million Lbs.) (includes Packaging........................................................................II-6 corresponding Graph/Chart) .....................................II-16 Transportation.................................................................II-6 Types of Polyolefins...........................................................II-6 MDI and TDI - A Comparison ......................................II-16 Polyethylene....................................................................II-6 Environmental Regulations...............................................II-16 Polypropylene .................................................................II-6 The Polypropylene Switch................................................II-17 Olefins.............................................................................II-7 Market Perspective and Trends.........................................II-17 Polyurethanes in Automobiles.......................................II-17 Copolyesters....................................................................II-7 Continued Growth in Demand from Construction Polyethlylene Foams ..............................................................II-7 Sector.........................................................................II-17 End-Use Applications.........................................................II-8 Foam Industry Confronted by Issue of Choice of Non Cross-Linked Polyethylene Foams Blowing Agents .........................................................II-18 (Non XLPE)....................................................................II-8 Microcellular Foams.............................................................II-18 Cross-Linked Polyethylene (XLPE) ...................................II-8 Market Perspective and Trends...........................................II-8 3. Blowing Agents: A Review..............................................II-19 Demand to Grow Faster in Developing Nations..............II-8 Product Overview.................................................................II-19 Technological Developments Impact Market..................II-9 Exothermic Blowing Agents.............................................II-19 Single-Site Metallocene Catalyst Technology.................II-9 Endothermic Blowing Agents...........................................II-20 Polypropylene ........................................................................II-9 Adding Blowing Agents to Plastics ..................................II-20 Overview ............................................................................II-9 Carbon Dioxide Blowing Technology...........................II-20 Polypropylene Foams .........................................................II-9 Winds of Change Sweep the Blowing Agents Market...II-20 Polystyrene.............................................................................II-9 Search for Substitutes: Of Prime Importance.................II-21 Description .........................................................................II-9 A Detailed Insight into Blowing Agents...............................II-21 Expanded Polystyrene Foam.............................................II-10 Overview ..........................................................................II-21 Status of Transition...........................................................II-22 Polyurethane ........................................................................II-10 Zero ODP Alternatives .....................................................II-22 Description .......................................................................II-10 Polyurethane Foams..........................................................II-10 Table 5: ODP and GWP Rates for CFCs, HCFCs Developments...................................................................II-11 and HFCs.....................................................................II-23 Applications......................................................................II-11 ODP: Ozone Depleting Potential...................................II-24 POLYMERIC FOAMS - A GLOBAL STRATEGIC BUSINESS REPORT 02/06 Page 1 This Report Is Protected With Digital Watermarks. 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This Document May Not Be Printed, Copied or Distributed Outside Your Organization in Any Form Without Our Express Written Permission POLYMERIC FOAMS MCP-1174 A GLOBAL STRATEGIC BUSINESS REPORT CONTENTS GWP: Global Warming Potential..................................II-24 Status and Future Trends for Technologies Polyurethane Foams...................................................II-24 in the Flexible PU Foam Sector .................................II-42 Prospects for Zero ODP Blowing Agents Extruded Polystyrene........................................................II-43 in Rigid PU Foams: Europe, US, Japan..................II-25 Extruded Polystyrene Sheet...........................................II-43 Polystyrene, Phenolic and Polyolefin Foams .............II-25 Technical Options......................................................II-43 Environmental and Physical Properties of Widely Extruded Polystyrene Board..........................................II-43 Used Blowing Agents .........................................II-26 Performance Requirements........................................II-43 HCFC-22.......................................................................II-27 Polyolefin Foams..............................................................II-43 HCFC-141b...................................................................II-27 Performance Requirements............................................II-43 HCFC-142b...................................................................II-28 Technical Options .........................................................II-44 Methylene Chloride.......................................................II-29