Frost & Sullivan: Eastern Europe and Niche Applications Stimulate the European Polymer Blends Market

LONDON, June 29, 2010 - Hard hit by the global economic slowdown in 2009, the European polymer
blends and alloys market is on the upswing again, thanks mainly to high
growth potential in Eastern Europe, particularly for electronics
applications. Electronic housing and computer-related applications will be
the main development areas for polymer blends, especially polycarbonate
blends, but bio-based polymer blends are just as promising, as environmental
concerns escalate worldwide.

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New analysis from Frost & Sullivan (www.chemicals.frost.com),
European Polymer Blends and Alloys Markets, finds that the market earned
revenues of euro 346.0 million in 2009 and estimates this to reach euro
453.00 million in 2016. The application areas covered in this research
service are: transportation, electronics, consumer goods, construction and
industrial applications.

"The electronic housing industry, including housing of IT-related
products such as personal computers and laptops, will be the major growth
driver for the polymer blends and alloys market in Europe as global
manufacturers of electronic and IT-related products move their manufacturing
bases to Eastern Europe, which offers better quality control standards than
Asia," states Frost & Sullivan Research Analyst Aniruddh Menon.

Bio-based polymer blends offer equally good growth potential. Companies
in that market are rapidly diversifying from bags and packaging-related
applications to high performance applications, the major drivers behind the
replacement of engineering and commodity plastics with bio-based or
biodegradable plastics.

However, blend manufacturers must identify new application areas for
polymer blends. Polymer blends are more expensive than commodity polymers,
due to higher processing costs. As companies tighten their budgets, they are
opting to move towards modified commodity polymers like long glass fibre
re-enforced Polypropylene or ABS, especially in high-volume applications like
automotive. These polymers offer nearly the same performance as polymer
blends. Thus, it is necessary to identify niche applications in which
commodity polymers cannot replace polymer blends. Additionally, the growing
presence of Asian polymer blend suppliers in Eastern Europe is stepping-up
competition, making it more challenging for the European blend manufacturers
to boost their market share.

"Although polymer blend manufacturers are unlikely to show growth in the
current market scenario, demand should increase after 2012 once automotive
and electronic manufacturers begin to free up their budgets compared to the
2008-2010 period. This will result in some manufacturers opting for polymer
blends, which, though comparatively costlier, provide higher performance
levels than commodity polymers," explains Menon.

Until then, polymer blend manufacturers should work closely with
customers to identify the niche opportunities in polymer blend applications.
Bio-based polymer blends, for example, is a very promising investment for
companies, as growing environmental awareness and government regulations fuel
demand for sustainable products that can be used for engineering
applications.

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

European Polymer Blends and Alloys Markets is part of the Chemicals &
Materials Growth Partnership Services programme, which also includes research
in the following markets: Global Bio-based Plastics Market, Global Markets
for Plastics in Passenger Vehicles, and European Market for Materials for
Energy-efficient Buildings. All research services included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.

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    European Polymer Blends and Alloys Markets
    M44E

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com