Plastics industry consolidation

Table 10.4 shows the main trends affecting the overall polymer business. However, differentiation according to polymer type is necessary (Table 10.5). The plastics industry still has a highly fragmented structure, and consolidation will continue in order to meet the demands of global competition, until there are no further incremental efficiencies to be gained. At the present time, the plastics industry is plagued by low profit margins and surplus capacity.

Since the mid-1990s, when even the biggest flame retardant suppliers were specialist companies, at least within the plastics industry, there have been many consolidations and the biggest companies now have a wider range of FR types within their portfolios. 

Composite kam- pa-z3t, kom-, esp British kam-po-zit [L compositus, pp of compo-nere] (1563) adj. (1) An article or substance made up of two or more distinct phases of different substances. In the plastics industry the term applies broadly to structures of reinforcing members dispersed phase) incorporated in compatible resinous binders continuous phase). Such composites are subdivided into classes on the basis of the reinforcing constituents laminate, particulate (the dispersed phase consists of unlayered fibers) flake (flat flakes forming the dispersed phase) and skeletal (composed of a continuous skeletal matrix filled by a resin). (2) Hard or soft constructions in which the fibers themselves are consolidated to form structures rather than being formed into yarns. Rigidity of these constructions is controlled by the density, the modulus of the load-bearing fibers, and the fraction of fusible... 

Acquisitions have played a prominent role in the evolution of the plastics industry. Many of these have been the result of the industry s small business pioneers being consolidated as the founding entrepreneurs died or wished to retire, but without having a successor. Also, some medium-sized firms found that they needed certain economies of scale in order to survive the competition from larger firms attracted to the growth and earnings potential of the industry. 

The American plastics industry is in the Ability Age created by outsourcing, industry consolidation, the power of Wall Street, the Information Age, and dynamically changing rules and environments. 

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