Two Grand Events Pull Brazilian Construction Engineering Plastics Consumption

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According to a report issued by the US growth consulting firm Frost & Sullivan in September, with the approaching of the 2014 FIFA World Cup and the 2016 Olympic Games, infrastructure construction projects promoted by two major international events will be launched. The vitality of the development of the industry has become increasingly apparent. At the same time, the increase in housing demand and the substitution of traditional materials will jointly contribute to the prosperity of the construction plastics market in Brazil. In the next few years, Brazil’s construction engineering plastics market will continue to show growth and investment potential will be greater.

Frost & Sullivan stated that engineering plastics have a series of advantages over competing materials such as metals, glass and wood used in the construction industry. If they are widely used, they are lighter than other materials and can help save costs. Engineering plastics also bring greater freedom to the design and are easier to process. Engineering plastics are more resistant to beat, compression and corrosion than other traditional materials. However, engineering plastics also face some unfavorable factors in the application process. First, they have high technical requirements and must comply with the specific technical indicators of the project to meet the needs of end users. Therefore, new application of research and development requires technical strength and capital investment. Very high. Second, in Brazil, plastic products processing is highly fragmented. Most of them are small and medium-sized enterprises. These enterprises often lack sufficient R&D resources and technical capabilities. Therefore, plastics manufacturers and plastic product processing companies need to work together to strengthen the construction industry. The new application of R&D further opens up the potential market for engineering plastics.

Engineering plastics have many applications in infrastructure construction, such as airports, stadiums, transportation hubs, and so on. At present, there has been an upsurge in the construction of such projects in Brazil. For example, the construction of the new airport in Sao Paulo has recently been approved by Brazil's National Civil Aviation Bureau and is awaiting the final approval of the federal government. It is estimated that it will cost US$3.3 billion; another major project in the São Paulo Metropolitan Area It is a Corinthian gymnasium built in June 2011 and scheduled for completion in 2013. It is estimated to cost 625 million U.S. dollars. There are also many large-scale urban transport projects under construction in Rio de Janeiro, the most notable of which is the Bus Rapid Transit (BRT) project. The project involves more than 130 sites and approximately US$2.6 billion in investment. The related work has already begun and it is expected that the entire project will be completed in 2015.

Driven by these infrastructure investment and construction projects, Brazil's construction engineering plastics market will accelerate its growth in the coming years. In 2011, this market reached 70 million US dollars. Frost & Sullivan expects that by 2018, the market size is expected to reach 99.2 million US dollars, with an average annual growth rate of 5.1%.

At present, manufacturers of engineering plastics are continuously strengthening their local advantages by increasing investment in new factories and distribution channels. Among them, DuPont enhanced its skills training for processors to ensure that end-users receive high-quality products. At the same time, DuPont also shares more industry knowledge with processors and discover more applications with higher commercialization potential. Unigel also announced that it has invested US$43.8 million in a facility in São Paulo to produce ABS resin, and will also invest US$24 million in establishing a technology research and development center in Bahia. In 2011, Rhodia also invested 3.1 million U.S. dollars to add a new production line in the region, which will increase the annual production capacity of engineering plastics to 6,000 tons.

Frost & Sullivan finally pointed out that Brazilian engineering plastics manufacturers have a huge potential market and future development opportunities. However, they also need to actively help processors to develop new applications to expand the product portfolio to meet the various needs of end customers.

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