Innovative Technology and Environment-Friendly Trends Drive the Market for Chemicals Used in Transportation, Finds Frost & Sullivan

LONDON, March 31, 2010 - Even as the market for chemicals used in transportation recovers from the
economic downturn, technologies that reduce costs, enhance performance and
differentiate vehicles continue to be in high demand. Additionally, materials
and components for electric vehicles are a priority as this new market sector
gains momentum.

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New analysis from Frost & Sullivan (www.chemicals.frost.com), A
CEO 360 Degree View of Chemicals used in Transportation, finds that electric
vehicles, bio lubricants, advanced composites and automotive plastics will
penetrate the market in the next 5 years.

"Light weighting of vehicles is a key market driver," says Robert Outram,
Frost & Sullivan's Global Programme Manager - Transportation Chemicals. "The
development of more fuel efficient vehicles with reduced emissions spurs the
demand for innovative materials and technologies."

Automotive plastics and composites help lower the weight of the vehicle,
while increasing the ability to recycle materials at the vehicle's end of
life.

Legislative requirements also drive demand for more fuel-efficient
vehicles, lower emissions and for the use of sustainable and recyclable
materials during construction. For example, the need to limit carbon dioxide
emissions will drive the market for precipitated silica systems in tyres and
weight reducing fillers in vehicles. Similarly, the 2010 European Pedestrian
Impact Phase 2 standard will encourage the use of malleable steel,
polyurethane foams and other energy absorbing materials in automotive bumper
systems to meet pedestrian lower-leg impact requirements. Furthermore, the EU
End of Life vehicle legislation, which will increase recyclability
requirements from 80 per cent to 85 per cent in 2015, will increase demand
for more plastics and new adhesives.

Although progressive legislation, together with customer demand for more
fuel-efficient vehicles, add impetus to the market, the economic recession
has had an adverse effect on the automotive sector - much more than on any
other manufacturing industry. Several plants have closed down, and big
automotive companies are taking financial assistance from the government.

"Plummeting car sales and lack of cash flow have impelled automotive
companies to implement new technologies, which have affected chemical
companies that are now struggling to sell their recently developed products
and technologies to such a troubled market," explains Outram.

Innovative strategies must be devised to overcome such challenges. For
example, in the high-performance fillers market, customer focus is vital. A
close relationship between high-performance filler manufacturers and
customers is mutually beneficial, as the customer can obtain advice on the
products, while the manufacturer receives feedback on potential improvements
or an insight into new applications.

"Developing technologies which help auto original equipment manufacturers
(OEMs) reduce production costs while increasing the performance and enhancing
differentiation will be the key to penetrating a tough market," concludes
Outram. "Focusing on helping auto OEM's meet mandatory legislation
requirements will also be desired."

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.

A CEO 360 Degree View of Chemicals used in Transportation is part of the
Chemicals & Materials Growth Partnership Services programme, which also
includes research in the following markets: Global Markets for Plastics in
Passenger Vehicles, 2009, Impact of Global Automotive Trends on the Chemical
Industry, 2009, European Bio lubricants Market, 2007, and North American Bio
lubricant Markets, 2009. 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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          A CEO 360 Degree View of Chemicals used in Transportation
                                   M45D

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