News
Lead-acid batteries losing their spark
With sales of $11.73 billion across Europe in 2002, lead-acid batteries are
the most common type of energy storage and are universally acknowledged as
the most reliable and economical of traditional storage solutions. However,
a study by Frost & Sullivan reveals lacklustre performance amid advancing
maturity of lead-acid technology and its associated application areas. Exacerbating
the situation is the growing need for more specific and cost-effective energy
storage, particularly as cars become ever more power-hungry, and hybrid-electric
or electric vehicles loom larger on the horizon.
The development and deepening market penetration of alternative technologies
will further contribute to a cooling of demand in the lead-acid battery industry.
Already generating European sales worth $104 million in 2002, flywheels, supercapacitors
and Superconducting Magnetic Energy Storage (SMES) systems have started to
mount a challenge to traditional batteries.
Emerging energy storage technology gives investors
the jitters
The prevailing confusion over which technology will eventually fill the ever-more
prevalent capacity gap has sparked a degree of investor hesitancy. Against
a backdrop of limited energy storage capabilities of current battery technologies,
the conversion from conventional 14-volt power generation and distribution
system to a new 42-volt architecture, will help drive widespread use of embryonic
energy storage solutions.
A further stimulus for development will be the eco-car which minimises the
impact on the environment through reduction of emissions. Governmental encouragement
for greater investment in renewables and subsidies for power generated from
clean sources, will heighten the appeal of these innovative and energy-friendly
storage technologies.
Not no, but not now
Despite the new technologies’ capabilities of outperforming existing
alternatives, the current economic climate contributes to investor caution
over premium-priced nascent storage solutions, providing another major stumbling
block to growth. Should considerable price reductions materialise, emerging
energy storage solutions will become economically viable and help unleash
the market’s true potential. The industry is expected to expand at a
compound annual growth rate (CAGR) of 11 per cent, reaching $215 million in
2009.
www.frost.com.
Joint ventures in north-east Asia
The German automotive supplier Mann+Hummel, based in Ludwigsburg,
has entered into a joint venture with the Chinese company Fawer automotive
Parts Co. Ltd. The German company will have a 60% holding in the new joint
undertaking, which is to start operating under the name Changchun Mann+Hummel
Fawer Filter Co. Ltd. from mid-2003. This is the Ludwigsburg-based group’s
second production venture in China in the field of air and oil filters, having
last year entered into a joint venture with Shanghai Automotive Industry Corp.
to supply customers in China’s automotive industry with original equipment
under the name Shanghai Mann+Hummel Filter. This new collaborative venture
is intended to expand the automotive supplier’s operations in the booming
Chinese market.
www.mann-hummel.com
AUTO INDUSTRY DRIVES EUROPEAN
FLUOROPOLYMERS MARKET GROWTH
The growth rate of the European fluoropolymers market was less
than 3% in 2001 owing to reduced demand from end users. A study from international
market consultants Frost & Sullivan forecasts that the market will grow
in the region of 5% over the next three years. The automotive industry is
the largest end-user of fluoropolymers and is the main driver behind the increasing
numbers of applications for and technological innovation of fluoropolymers.
The main opportunities for fluoropolymers in the automotive industry lie in
the industry’s drive for lower emissions and improved fuel efficiency.
Emissions reduction targets highlight the need for improved permeation resistance
in both gasoline and diesel systems whilst the replacement of metals with
plastics to reduce the weight of the vehicle aids in achieving fuel efficiency.
However, whilst most module manufacturers confirm their satisfaction with
the performance of fluoropolymers the high cost of the material is seen as
a deterrent to its increased application.
The single most important long-term growth potential for fluoropolymers in
the automotive industry comes from the future expansion of passenger car markets
in Asia, Latin America and Africa. The transition of the passenger car from
a luxury to a necessity is expected to boost demand in these regions and hence
increase volumes of fluoropolymer consumed.
This is the first comprehensive analysis of the European fluoropolymer market
since the 100% acquisition of Ausimont by Solvay Fluoropolymers, which firmly
positioned it as the number two supplier in Europe behind DuPont. The study
dedicates a chapter to competitive structure analysis, which looks at the
impact of recent M&A activity in the market.
www.frost.com
BASF Venture Capital invests in new fuel cell technology
By providing funding of €2.5 million, BASF Venture Capital
GmbH, Ludwigshafen/Germany, is lead investor in Zoxy Energy Systems AG, Oberderdingen/Germany,
a manufacturer of rechargeable fuel cells. The young company produces, markets
and sells electrically rechargeable zinc-air fuel cells, which have a far
superior capacity compared to standard lead batteries and are also lighter
and boast a higher specific energy density.
Zoxy Energy Systems was established in 2000 and employs 29 people. According
to the company they are the world’s only supplier of electrically rechargeable
zinc-air fuel cells. BASF Venture Capital GmbH is a wholly owned subsidiary
of BASF Future Business GmbH - a company that belongs to BASF AG - and was
founded in 2001.
www.basf.com
www.zoxy.de
TPOs in Automotive 2003
This year’s conference “TPOs in Automotive”
2003 will take place in Maastricht/The Netherlands from June 2 to 3, 2003.
Now in its 9th year, the conference is a key forum on the use of thermoplastic
olefins and engineering plastics in the automotive market. Leading industry
experts from around the world will be gathering to discuss important new developments
in the science, technology, and automotive applications of TPOs and related
materials.
Topics to be addressed include Global Business Trends, Advances in Automotive
Applications of TPOs, Surface Treatment, Paintability & Adhesion, and
Innovations in Processing and Manufacturing TPO Components. The principal
players will be well represented with keynote speakers from Sabic Automotive
Polymers, Mavel (France), Dow Automotive, BP Composites, Battenfeld, Solvay
Engineered Polymers, JSR Corporation, Coperion Werner & Pfleiderer GmbH,
amongst many others.
www.executive-conference.com
BASF to raise prices for ABS specialties in Europe
BASF is to raise the European prices for the specialties in
its ABS product lines Ronfalin and Terluran from 1st March this year. A return
to reasonable margins, which have been continually eroded by higher raw material
costs, will require raising the price of Ronfalin, Terluran HH and coloured
Terluran by€200 Euros per metric ton. Terluran HH is typically used in
automotive interiors for door trim and instrument panels etc.
www.basf.com
Sale of TRW Automotive to Blackstone Group
Northrop Grumman Corp., the defence conglomerate currently in
the process of taking over TRW Inc., announced on Tuesday that it has reached
agreement on the sale of TRW’s automotive parts business (TRW Automotive)
to the investment company Blackstone Group for approximately 4.725 billion
US dollars. New York-based Blackstone Group recently set up a 6.45 billion
US dollar investment fund financed by private equity capital, the largest
of its kind world-wide. The purchase of the TRW automotive parts division,
with annual turnover of around 10 billion US dollars, is the first investment
from this fund.
As a result of the sale, Northrop will receive 3.757 billion US dollars in
cash, 600 million US dollars in secured debts and initially 368 million US
dollars’ worth of shares in TRW Automotive (868 million in total). It
is anticipated that Northrop will retain a holding of approximately 20% in
TRW Automotive after the sale is concluded. According to John Plant, Chief
Executive Officer and President of TRW Automotive, the sale to Blackstone
will secure the company’s independence and guarantee its customers management
continuity, enabling TRW Automotive to concentrate exclusively on the automotive
business in future and to continue strengthening its market position as a
world leader in vehicle safety systems.
It is expected that the sale of TRW Automotive to Blackstone will take place
in the first quarter of 2003, but the merger between TRW Inc. and Northrop
Grumman must be completed first. The shareholders of both companies are to
approve the merger on 11 December.
TRW Automotive is one of the leading suppliers to the automobile industry
of active and passive safety systems, including integrated vehicle control
and driver assistance systems, braking systems, steering systems, chassis
systems, passenger protection systems, electronics, engine valves, fixing
systems and parts and products for the global spare parts market. The company
is the eighth largest automotive supplier, employing over 67,000 people world-wide.
www.trw.com
Ticona to cease manufacturing operations in UK
Ticona, the technical polymers business of Celanese AG, Frankfurt
has announced that its Telford UK facility will cease manufacturing with a
loss of 70 jobs. The move is expected to be completed by mid-2003, with only
the sales and marketing departments escaping the axe. This ends 15 years of
manufacturing in the UK. The company’s European manufacturing operations
will now be concentrated in Germany.
Cost savings and improvements to the supply chain are cited as principal reasons
for the company’s decision.
www.ticona.de
www.celanese.com
A “Catalyst” for the Future in Automotive Design
Automotive interior and exterior design are merging into a new
kind of driving experience – matching lifestyle with personality and
functionality. Intended to serve as a vehicle for future thinking, “Catalyst”
is a new presentation of innovative interior and exterior design, materials
and finishes ideas.
“Catalyst” integrates 96 custom interior and exterior design elements
and the latest materials and finishes into six proposals for concept vehicles.
The design elements are intended to show how outside influences impact on
automotive design inside and out and how sensory perceptions can combine with
aesthetics to meet consumers’ individual desires.
Interestingly, the design elements themselves stem from diverse sources, from
nature to the urban landscape, seasonal textures to different geographical
regions. A pointer perhaps to a more colourful automobile future?
www.dupont.com
Vehicle production world-wide up by 4 per cent last year
According to a report from the VDA, Germany‘s Frankfurt-based
association for the automotive industry, the global situation for vehicle
manufacturing in 2002 was generally stable despite the trend towards recession
in the USA and western Europe. Although the crises in South America put a
distinct damper on global sales, dynamic developments in the emerging markets
in Asia kept the demand for vehicles at a high level – 56.1m automobiles
were sold world-wide last year, equalling the volume of sales in 2001. The
global figure for production in 2002 was 58 million vehicles, a good 4 per
cent above the previous year‘s level. This rise is mainly attributable
to stockpiling, in particular in North America and Japan. Global production
of passenger vehicles (including light trucks in America) rose by just under
4 per cent, while commercial vehicle production experienced 8 per cent growth.
In the NAFTA countries – the USA, Canada and Mexico – the number
of vehicles produced rose by 6 per cent to 16.7 million units, the third highest
figure ever in this region. North America‘s share of global production
rose accordingly to 28.8 per cent (up 0.3 percentage points). Asian countries
– including Japan – also increased their production last year by
over 11 per cent to 19.5 million vehicles, bringing their global market share
up to 33.7 per cent (a rise of 2.1 percentage points). In the European Union,
by contrast, manufacturing was cut back by 2 per cent to 16.9 million units,
with a corresponding decline in the EU countries‘ contribution to global
vehicle production to 29.1 per cent in total (a drop of 1.8 percentage points).
www.vda.de
WASTE NOT, WANT NOT
VTP, Vita’s UK manufacturer of thermoplastic elastomers
(TPEs), has succeeded in producing compounds for the automotive industry that
contain 55% post-consumer waste. This is a significant step towards meeting
increasingly tough recycling targets for the automotive industry, which is
facing obligations to use post-consumer waste from its own industry.
One VTP compound containing post-consumer waste is manufactured for the MINI
and is used for external components including mudflaps and wheel arch linings.
The post consumer waste element is derived from car battery casings, which
are moulded in polypropylene and after cleaning and regrinding are incorporated
with new TPE compound in quantities of 5%, 25% and 33%.
Following success with this material, VTP embarked on research using tyre
crumb, which once incorporated with PP can give 55% post-consumer waste. The
compound has been moulded into under-body stone chip protectors, mudflaps
and anti-drag lips.
www.vtc.britishvita.com
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One VTP compound containing post-consumer waste is manufactured
for the MINI and is used for external components (photo: BMW) |