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“The report reviews, analyzes and projects the global market for Aramid Fibers (including bothPara-aramid and Meta-aramid fibers) for the period 2010-2020”

A Global Market Overview

Aramid FibersPara-aramid and Meta-aramid

Report Code: CP026Pages: 418Charts: 311Price: Sample

Published: July 2014

Redefines Business Acumen

Aramid Fibers (Para and Meta) – A Global Market Overview © Industry Experts, All Rights Reserved

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Types of Aramid Fibers

Two major types of aramids commercially produced now are meta-aramid and para-aramid and another copolymer type is developed by Tiejin. Para- and Meta- refer to the positions of the carboxylic and amine groups on the monomer ring. Both types of aramid fibers are lightweight and provide extremely high strength. They also have excellent temperature, abrasion and stretch resistance. In addition, meta-aramids are soft and electrically conductive. Para-aramids are stiff, and have greater tenacity and strength than the meta-aramids. However, para-aramids are sensitive to chemicals and will degrade in the presence of acids, alkalis and bleaches. Para-aramids seem to be in highest demand because of their tensile strength and tenacity. Other type of aramid fiber is developed by Teijin. Technora is a para-aramid fiber made from co-polymers. It was independently developed by Teijin and has been commercially available since 1987.

Para- aramid fiber is used for a variety of reinforcements reflecting its high-tenacity and high-elasticity. Above all, reinforcements for plastic or concrete materials are important uses because of light and durable materials. A meta-aramid fiber is used for clothing of fire-fighters, car racing suits, and uniforms for high-temperature workings, reflecting its excellent fire retardancy.

Aramid fibers are available commercially in the form of fiber, yarn, pulp, staple, chopped fiber, paper, felt and fabric.

Figure 1: Chemical Formula of Para-Aramid and Meta-Aramid Fibers

Para-Aramid fibers

Due to their highly oriented rigid molecular structure, para-aramid fibers have high tenacity, high tensile modulus and high heat resistance. Para-aramid fibers have similar operating temperatures to meta-aramid fibers, but have 3 to 7 times higher strength and modulus, making them ideal for reinforcement and protective type applications.

There are two types of para-oriented aramid fibers:

· Homo-polymer – example Kevlar and Twaron

· Co-polymer – example Technora

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Although para-aramids are high in strength, there is some problem with chemical resistance. Homopolymer para-aramids have relatively weak resistance to strong acids and bases. Kevlar and Twaron, for instance, cannot be bleached with chlorine and are often not approved for food handling in protective gloves. The fine surface structure of Technora copolymer allows it to have much higher chemical resistance. Kevlar has new forms with increased strength and improved properties. Co-polymer para-aramids have advantages with increased abrasion resistance and steam resistance – useful properties in many protective applications. There is also a different type of para-aramid type available from Russian company Kamenskvolokno JSC under the names SVM, Armos and Rusar. The process of fiber forming for these fibers is principally different from those used while forming of Kevlar and Twaron aramid fibers. Alchemie and Kamenskvolokno JSC recently developed next generation aramid fibers called AuTx. According to the company, AuTx is an improved heterocyclic co-polymer (terpolyaramide) fiber made using a very specific fiber spinning process. Like Kevlar and Twaron para aramids, terpolyaramides have a similar chemical structure incorporating the same two monomers that make up para-aramids, but also include an additional monomer which adds unique physical properties.

Table 1: Typical properties of para-aramids

Properties Value Tenacity g/de 22 - 26 Modulus g/de 460-1100 Elongation 2.4 – 4.4 Continuous operating temperature 3750F Limiting Oxygen Index (LOI) 25 - 28 Chemical resistance Mild - Good

Meta-Aramid fibers Meta-aramids are best known for their combination of heat resistance and strength. In addition, meta-aramid fibers do not ignite, melt or drip; a major reason for their success in the fire resistant apparel market. In comparison to commodity fibers, meta-aramids offer better long-term retention of mechanical properties at elevated temperatures. Meta-aramids have a relatively soft hand and tend to process very similarly to conventional fibers, giving them a wide range of converted products. Meta-aramids are available in a variety of forms, anti-stat, conductive, in blends (with other high performance fibers), etc. Well known meta-aramid fibers currently available include Nomex, TeijinConex and Kermel.

Table 2: Typical properties of meta-aramids

Properties Value

Tenacity g/de 3.8-7.2 Elongation (%) 25-40 Limiting Oxygen Index 30 Chemical resistance Mild-Good Operating temperature 4000F

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2013 2020

North America

Europe

Asia-Pacific

Rest of World

Frictional Materials

Demand for enhanced performance of frictional materials has increased as the size of the brakes became small. Functioning of brake pads, brake linings and clutch facings has been enhanced with the addition of aramid pulp and short-cut fibers, leading to maximum driver comfort and longevity of the product. Aramid pulp plays a vital role in offering comfort by lowering noise, harshness and vibration. Aramid fiber is used as an asbestos alternative in brakes and this usage remains to utilize more aramid in the prospective. Aramid pulp is used as a material of choice by friction materials producers worldwide because of the pulp's specific properties, including:

• Excellent braking power and strength

• Enhanced stability of edges and no crack formation in pads

• Reduced wear-rate and low corrosion

• Lower judder, vibration, noise and fading

• Enhanced per-form stability for cold pre-pressing

• Fit for copper or asbestos replacements in many friction formulations

• Adheres dust, aids in assuring a homogenous mixture, and avoids segregation in production

Frictional materials with aramid fiber are employed for use in brake pads, brake linings and clutch facings in private cars, commercial vehicles, buses and heavy goods vehicles; as well as in motorbikes, bicycles, three-wheelers, trams, subways, and trains. Aramid is also used in a range of industrial applications, such as in elevators, cranes, and other systems.

Market for Aramid fibers in Frictional Materials Global market for aramid fibers in frictional materials was around xx.x thousand metric tons in 2013. Owing to an increasing usage of aramid fibers in brake pads, gaskets and sealing materials across all regions, expected to drive the demand and the market will grow at a CAGR close to x% from 2013 through 2020 by reaching close to xx thousand metric tons by 2020. Being the largest market for frictional materials application of aramid fibers, North America is expected to sustain the leading position through to the analysis period while Asia-Pacific region is projected to record the fastest growth of x.x% CAGR during the same period.

Chart 1: Global Market for Aramid Fibers in Frictional Materials (2013 & 2020) by Geographic Region – North America, Europe, Asia-Pacific and Rest of World in Metric Tons

Region 2013 2020 CAGR% 2013-20

North America xxxxx xxxxx xxxx Europe xxxxx xxxxx xxxx Asia-Pacific xxxxx xxxxx xxxx Rest of World xxxxx xxxxx xxxx Total xxxxx xxxxx xxxx

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Aramid Fiber Capacity Share by Company

Global aramid fiber capacity (both para and meta) is estimated at xxx thousand metric tons in 2013. DuPont dominates the global installed capacity of aramid fibers, estimated at xx.x thousand metric tons in 2013 with a market share of xx%, followed by Teijin with xx.x thousand metric tons (xx%), Yantai Tayho with x thousand metric tons (x.x%) and Kolon with x thousand metric tons (x%) in the same year. Though losing its market share to new entrants, DuPont is further expected to sustain the leading position in installed capacities for aramid fibers and projected to reach xx thousand metric tons (xx%) by 2015 and to xx thousand metric tons (xx%) by 2020. Teijin is expected to remain at the second position over the analysis period with a market share of xx% translating into xx thousand metric tons in 2020, while installed capacity of aramid fibers for Bluestar Chengdu is forecast surpass Yantai Tayho and Kolon by 2020 to stand at xx thousand metric tons with a share of x%.

Chart 10: Glance at 2013, 2015 and 2020 Global Aramid Fiber Production Capacity Market Share by Company

Company 2013 Share 2015 Share 2020 Share

DuPont xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx Teijin xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx Kolon xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx Yantai Tayho xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx Huvis xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx Bluestar Chengdu xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx Others xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx Total xxxxxx xxxxxx xxxxxx xxxxx xxxxxx xxxxxx

2013 2020

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Key Global Players

CHINA NATIONAL BLUESTAR (GROUP) CO, LTD. (CHINA) No.9, West Road, Beituchengxi, ChaoYang District, Beijing 100029, China Tel: +86-10-6195-8710, Fax: +86-10-6195-8888 E-mail: [email protected], [email protected] Website: www.china-bluestar.com

Business Overview

Established in 1984, Beijing, China-based China National Bluestar (Group) Co, Ltd. is a leading new chemical materials provider in China. Bluestar is an operating subsidiary of China National Chemical Corporation (ChemChina) and is engaged in providing new chemical materials, animal nutritional additives, and basic chemicals.

The para-aramid fibers offered by the company through its subsidiary, China Bluestar Chengrand Chemical Co., Ltd., are used in various industries, including chemical, medical, construction, automotive, textile, electronic communications, aerospace, and other industries such as friction sealing insulating materials, cables, ropes and sporting goods. The company also offers environmental science & services, including technology consulting, water treatment equipment, cleaning engineering, and ion-exchange membrane electrolyzer solutions.

Moreover, the company owns China's largest and the world's third-ranked organic silicon monomer manufacturing facility, Asia's largest PVC paste resin, China only PPE plastic production unit, China's largest Bisphenol A manufacturing unit, China's largest and most varied epoxy resin production devices. The company has its R&D and technical service institutes in China, France, Australia, the United Kingdom, the United States, and Brazil.

Business Segments

Product Particulars

New Chemical Materials Includes silicone such as silicone monomer, silicone rubber, silica fume, and industrial silicon; engineering plastics such as epoxy resin, bisphenol A, POM, PPE, and PBT resin series; general plastics and rubber including neoprene, PVC paste resin, polypropylene, polyethylene, and chloroprene rubber; Polyurethane such as polyether polyol, propylene oxide, THF, BDO, and TDI; high-performance fibers such as carbon, and special fibers including aramid; specialty chemicals including antifreeze, color developer series, and fumed silica; and inorganic materials such as chromic anhydride, and titanium dioxide

Animal Nutritional Additives Includes Site Min®, Rovabio®, Michael Victoria®, Roddy America® branded animal feed

Basic Chemicals Encompasses primary products from petroleum processing such as phenol, gasoline diesel oil, acrylic acid, propylene, MTBE, and methyl acrylate; organic chemicals including acetone, phthalic anhydride, ams, methanol, maleic anhydride, and fumaric acid; and inorganic products including hydrochloric acid, and caustic soda

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Major Subsidiary

CHINA BLUESTAR CHENGRAND CHEMICAL CO., LTD. (CHINA) China BlueStar Chengrand Research Institute of Chemical Industry No.30, Fourth Section of South Renmin Road, (No.2 Nijiaqiao Road), Wuhou District, Chengdu City, Sichuan Province, 610041, PRC Tel: 86-28-85512532, Fax: 86-28-85562957 E-mail: [email protected] Website: www.chengrand.net, www.lxcgy.chemchina.com

Business Overview Chengdu, Sichuan-based China Bluestar Chengrand Research Institute of Chemical Industry (China Bluestar Chengrand Chemical Co., Ltd.) is a subsidiary of the China National Bluestar (Group) Co, Ltd. and is engaged in the research and development of new chemical materials, including organic silicon, fine chemicals, aramid fiber, engineering plastics, along with alloys, special fluorine materials and biochemical engineering with the help of engineering design, analytic test, scientific and technical information and chemical equipment. The products offered by the company are supplied to various nations and regions, including Germany, Spain, Italy, and Malaysia.

At present, annual production capacity of para-aramid fiber by the company is 1,000 tons. This fiber has been used in a broad spectrum of aerospace applications, in making ballistic-rated body armor for use in military, bicycle tires; in disaster rescue equipment, in ship/automobile/high-speed train components, and also used as asbestos substitutes. Recently in 2014, the company has planned to make an investment of around 3 billion yuan ($ 486 million) to build a manufacturing unit for para-aramid production in Chengdu. This unit has been planned to begin its production operations in 2015, which would increase the para-aramid fiber production capacity of the company by 10,000 metric tons and would position the company to be the world's third largest para-aramid producer, next to DuPont (US) and Teijin (Japan).

Product Portfolio Products Particulars

Aramid Fiber & Composite Materials

· Aramid II fiber, PBO fiber, silicon carbide fiber and composites · Para aramid fiber Staramid F-218; Engineering Plastics - plastic additives such as Melamine Cyanurate

(MCA) Salt, CMRP4015 nylon toughening agent, CMPC5015 polycarbonate (PC) compatible agent, High-performance masterbatch for modified polypropylene, CG-1000 polypropylene transparent nucleating master batch, CG-300 PET special nucleating master batch, CG-400 PBT special toughening agent, GM series of silicone plastic additives

Organic Fluorine · Special fluorine-containing monomers, perfluoroelastomers, carboxy nitroso fluororubber and low temperature resistant fluoroether rubber

· Perfluorinated methyl vinyl ether (PMVE)

Engineering Plastics · Plastics additives: efficient red phosphorus flame retardant master batch, such as RPM, silicon plastic additives

· Modified plastics: modified polyamide and polymer alloy, flame retardant PC for film, modified ABS and AS · High performance aramid Staramid F-3 (heterocyclic copolymer aramid), such as modified para-aramid

fibers Staramid F-318 and Staramid F-358 · High heat-resistant special engineering plastics: polybenzoate (PPBA), thermotropic liquid crystalline

polymer (TLCP)

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GLOBAL MARKET OVERVIEW

Global volume demand for Aramid Fibers is estimated at xx.xx thousand metric tons in 2014 and forecast to be xx.xx thousand metric tons in 2015 (up by x.x% year-on-year), is further projected to reach xxx.x thousand metric tons by 2020, registering a 2014-2020 CAGR of x.x%. In terms of value, consumption of aramid fibers globally is estimated to stand at US$x.xx billion in 2014, forecast to be US$x.xx billion in 2015 (up by x.x% year-on-year) and is projected to maintain a 2014-2020 CAGR of x.x% in reaching US$x.xx billion by 2020.

On a historical note, volume and value growth of aramid fibers were moderate between 2006 and 2008, but declined in volume (down by xx.x% year-on-year), as well as value (down by xx.x% year-on-year) in 2009 over 2009. It can be observed that 2006-2009 CAGRs of volume and value were declined by x.x% and x.x% respectively. The worldwide demand for aramid fibers recorded a sharp volume growth of xx.x% and value growth of xx.x% in 2010; again declined in volume by xx.x% and value by xx.x% between 2011 and 2012, but recovered in 2013 to record a volume growth of x.x% or xx.xx thousand metric tons and value growth of x.x% or US$x.xx billion. The coming years after 2014 are expected to witness a gradual growth in volume, as well as value demand for aramid fibers globally, forecasting volume and value compounded annual growth rates between 2014 and 2020, to be x.x% and x.x% respectively. The 2014-2020 CAGR of value is slower than volume due to continuous decline in the price of aramid fibers.

Chart 13: Global Historical Aramid Fiber Market Analysis (2006-2009) by Volume in Metric Tons and Value in USD Million

Year Volume (MTs) Value (USD Mil)

2006 xxxxxxx xxxxxxx 2007 xxxxxxx xxxxxxx 2008 xxxxxxx xxxxxxx 2009 xxxxxxx xxxxxxx CAGR % 2006-09 xxxxxxx xxxxxxx

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Global Aramid Fiber Market Overview by End-Use Application Volume Analysis Global volume demand for aramid fibers is estimated at xxxx thousand metric tons in 2014, Safety & Protection constitutes the largest end-use application, with a demand of xxxx thousand metric tons in that year, accounting for a share of over xx.x%, and is forecast to consume xx.xx thousand metric tons of aramid fiber in 2015, which is a year-on-year growth of x.x%. Maintaining a 2014-2020 CAGR of x.x%, global consumption of aramid fibers by the safety & protection applications is further projected to reach xx.xx thousand metric tons by 2020, thereby retaining the number one position with a share of xx.x% in that year. In terms of growth between 2014 and 2020, however Optical Fiber Cables applications of aramid fibers are slated to outpace all other application areas, with a volume CAGR of x.x% during that period, reaching a projected demand of xx.xx thousand metric tons by 2020, compared to an estimated x.xx thousand metric tons in 2014. Filtration is the second fastest market projected to reach a volume CAGR of x.x% for the similar period. Electrical Insulation is forecast to constitute the slowest growing end-use application for aramid fibers, with a 2014-2020 compounded annual rate of x.x%, enabling the segment in reaching a consumption of xx.xx thousand metric tons by 2020 from an estimated x.xx thousand metric tons in 2014.

Between 2011 and 2012, with the dismal performance of global economy, except filtration (up by x.xx% year-on-year), consumption of aramid fibers has witnessed sharp decreases in all end-use areas, the highest being in Tire Reinforcement (declined by xx.xx%), Frictional Materials (down by xx.xx%), Rubber Reinforcement declining by xx.xx%, and safety & protection down by xx.xx%.

Chart 29: Global Aramid Fiber Market Analysis (2009-2020) by End-Use Application - Safety & Protection, Frictional Materials, Electrical Insulation, Filtration, Optical Fiber Cables, Tire Reinforcements, Rubber Reinforcements and Others in Metric Tons

Year Safety & Protection

Frictional Materials

Electrical Insulation Filtration Optical Fiber

Cables Tire

Reinforcements Rubber

Reinforcements Others Total

2009 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2010 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2011 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2012 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2013 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2014 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2015 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2016 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2017 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2018 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2019 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx 2020 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx CAGR% 2009-13 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx CAGR% 2014-20 xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx xxxxxxx

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Safety & Protection Frictional Materials Electrical Insulation Filtration

Optical Fiber Cables Tire Reinforcements Rubber Reinforcements Others

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Market Overview by Product Type

Volume Analysis

European market for Aramid fibers is dominated by Para-Aramid fibers, estimated to account for xx.x thousand metric tons. This segment is also expected to record the fastest CAGR of x.x% over 2014-2020 and reach a projected consumption of xx.x thousand metric tons by 2020. Meta-Aramid, a bit slow in growth rate during the same analysis period is touching the consumption of xx thousand metric tons by 2020 from an estimated x.x thousand metric tons in 2014.

Overall Aramid fibers market in Europe witnessed a negative growth with a CAGR of x.x% during the period 2006-2009.

Chart 153: European Historical Aramid Fiber Market Analysis (2006-2009) by Product Type – Para-Aramid and Meta-Aramid in Metric Tons

Year Para-Aramid Meta-Aramid Total

2006 xxxxxxx xxxxxx xxxxxxx 2007 xxxxxxx xxxxxx xxxxxxx 2008 xxxxxxx xxxxxx xxxxxxx 2009 xxxxxxx xxxxxx xxxxxxx CAGR % 2006-09 xxxxxxx xxxxxx xxxxxxx

2006 2007 2008 2009 Para-Aramid Meta-Aramid SAMPLE

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MarketResearch.com: Market Research Reports and Industry … · metric tons in 2020, while installed capacity of aramid fibers for Bluestar Chengdu is forecast surpass Yantai Tayho