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Growing Emphasis on Energy Conservation and Environmental Protection Drive Increased Demand for Emulsion Polymers in China

Posted on: Monday, 23 October 2006, 06:00 CDT

LONDON, October 23 /PRNewswire/ -- Due to increasing government emphasis on energy conservation and environmental issues, China's emulsion polymers markets are witnessing growth, as emulsion polymers are environment-friendly and result in lower emissions than many alternatives.

Frost & Sullivan (http://www.chemicalsandmaterials.frost.com/) finds that the Chinese Emulsion Polymers Markets earned revenues of US$2.29 billion in 2005 and estimates this to reach US$4.77 billion in 2012.

"The Chinese government has recently released its strategic guidelines to build up a sustainable and harmonious society", notes Frost & Sullivan Research Analyst Ms. Louise Zhao. "Countrywide, the importance of energy-saving and environmental protection is being stressed upon and the government is imposing stringent criteria for the same."

The strategic policy of the government guides the country's industries in developing principles of energy saving and recycling of resources and is likely to promote significant market expansion. As a result, the potential application of emulsion polymers in adhesives and sealants, paints/coatings and inks, and in building and construction, especially in exterior insulation and finish systems (EIFS), appears promising.

Apart from this, rising awareness of volatile organic compound (VOC) issues among citizens is contributing to growing health concerns and the need for environmental protection. This is clearly reflected in their consumption activities in several applications. Thus, in the future, customer preferences are likely to result in increased use of emulsion polymers.

Meanwhile, emulsion polymer suppliers are eagerly exploring potential business opportunities that offer the possibility of substituting traditional solvent-based products in order to achieve market success.

Despite positive trends, market participants are encountering the critical challenge of spiralling raw material costs due to the global crude oil issues. As a result, shrinking industrial profits pose a significant restraint to commodity suppliers in the general-purpose product sector. However, certain niche markets with specialty products continue to offer profit potential.

"All participants are witnessing increasing raw material costs and intensifying competition," states Ms. Zhao. "Domestic participants are no longer satisfied with price advantages of mass products. Technological breakthroughs and significant capital investments are key challenges that need to be overcome."

On the other hand, disordered competition, price war and intellectual property rights (IPR) violation are major challenges threatening the presence of multinational companies (MNCs) in the specialty products sector. Ultimately, core competence in technology will determine profit margins.

In the context of domestic participants, technological innovation, which requires constant research and development (R&D) and significant capital investments, will become crucial. In addition, customised product innovation, reinforcement in market exploration and development, as well as optimised cost control will be essential. Logistics infrastructure and after-sales service are other critical factors imperative to promote market expansion.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Chinese Emulsion Polymers Markets, then send an e-mail to Janina Hillgrub, Corporate Communications, at janina.hillgrub@frost.com with your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

Chinese Emulsion Polymers Markets is part of the Chemicals and Materials Subscription, which also includes research in the following markets: coatings and adhesives, engineering plastics, specialty chemicals, fuels and lubricants. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Title: Chinese Emulsion Polymers Markets Code: B874-39 Background

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com/.

Frost & Sullivan Chemicals and Food Group is the strategic market consultant delivering insight and understanding to support business growth internationally. We identify and analyse the critical market challenges companies must address to become successful competitors in their industry. Our work is focused on these challenges in order to provide our clients with market strategies that enable them to increase revenues, market share and profitability.

The Group continuously monitors a comprehensive spectrum of chemical and food markets for trends, market measurements and strategies, and delivers powerful data via research publications, bespoke market intelligence projects and customised consulting.

Our team of expert analysts is structured around four key areas: Food Speciality Chemicals Fine Chemicals Performance Materials

List of key industry participants: Air Products, AtoZ, BASF, Ba T F, Bay e r AG, Beijing Organic Chemical Plant, Ciba Specialty Chemicals, Clariant, DSM Neoresins, Dow Chemical, Eternal, Johnson, National Starch, Sunrise, Rhodia

Rohmand Haas Company, Stahl, Sichuan wei Nilu Company, Wacker- Chemie GmbH

List of keywords in this press release: China, emulsion polymer, energy conservation, environmental protection, adhesives, sealants, paints, coatings and inks, buildings and constructions, exterior insulation and finish systems, EIFS, VOC, volatile organic compound, solvent based products, crude oil crisis, industrial profits, general purpose product, speciality product, intellectual property rights, IPR, logistics infrastructure, research and development, R&D, research, information, market, trends, technology, service, forecast, market share

Media Contacts: Europe: Janina Hillgrub Corporate Communications P: +49-(0)-69-770-33-11 E: janina.hillgrub@frost.com Americas: Trisha Bradley Corporate Communications P: +1-210-247-3870 E: trisha.bradley@frost.com Asia Pacific: Donna Jeremiah Corporate Communications P: +603-6204-5832 E: djeremiah@frost.com India: Surbhi Dedhia Corporate Communications P: +91-22-2832-4705 Ext: 131 E: sdedhia@frost.com Australia: Sharmin Jassal Corporate Communications P: +61-2-8247-8900 E: sjassal@frost.com

Frost & Sullivan

CONTACT: Media Contacts: Europe: Janina Hillgrub, CorporateCommunications, P: +49-(0)-69-770-33-11, E: janina.hillgrub@frost.com.Americas: Trisha Bradley, Corporate Communications, P: +1-210-247-3870, E:trisha.bradley@frost.com. Asia Pacific: Donna Jeremiah, CorporateCommunications, P: +603-6204-5832 E: djeremiah@frost.com. India: SurbhiDedhia, Corporate Communications, P: +91-22-2832-4705 Ext: 131, E:sdedhia@frost.com. Australia: Sharmin Jassal, Corporate Communications, P:+61-2-8247-8900, E: sjassal@frost.com

Source: PRNewswire

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