TPi January 2015

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January 2015 Tube Products International 9
business & market news
Pressure pipes for
water and gas –
the European market
By the end of 2014, almost 300,000km
of drinking water and natural gas pipe
was installed in Europe, according to
the new edition of the study ‘Pressure
Pipes for Water and Gas – the European
Market’ by Applied Market Information.
Pipes for water supply and distribution
represented more than 70 per cent of
that volume, with the balance being gas
transmission and distribution pipes.
Between 2007 and 2013 the European
demand for pressure pipes lost roughly a
fifth of the volume. Demand is expected
to grow between 2014 and 2018, as
the European construction industry
recovers. However, 2018 volumes will
remain below those registered in 2007,
when demand peaked. In addition,
Europe will see a lot of variability, with
some markets performing very poorly,
while others exhibit a relatively robust
recovery.
The study covers 31 European countries
(the 28 European Union members, plus
Iceland, Norway and Switzerland). In
terms of pipe systems, it recognises
polyethylene pipes (PE80, PE100 and
PE100RC), PVC (including modified and
oriented PVC) and ductile iron pipes. In
addition to demand in
each country, it looks at
the supply side, as well
as at the market for raw
materials.
Plastic pipes continue
to gain market share
from ductile iron pipes,
but there are market sectors in which
the latter maintain strong positions.
Inter-polymer competition is driving
fast changes in demand for the various
plastic pipes systems.
A certain degree of consolidation has
occurred on the supply side: the market
share of the top ten pressure pipes
manufacturing groups has increased
from around 50 per cent in 2010, to
57 per cent in 2014. Nevertheless,
the supply continues to be relatively
fragmented, with a large number of
small players serving local markets.
Competition among European resin
manufacturers is growing in intensity.
Strong regulation and standardisation
prevent such competition from
negatively affecting the quality and
performance of products.
However, this drives a level
of commoditisation – product
differentiation becomes considerably
more difficult to achieve.
This does not mean that differentiation
cannot be generated. The key factor
remains new product development.
Progress in technology continues, in
terms of manufacturing processes,
component and system design,
installation techniques, etc. New,
improved raw material grades have also
been developed, providing solutions
to evolving market needs. Although
reputed to be conservative, this market
has a good track record of embracing
and rewarding valuable innovation.
Applied Market Information Ltd – UK
IIL expansion plans
International Industries Limited (IIL), a
producer of GI pipes, API pipes, cold
rolled tubes, polyethylene and PPR C
pipes, is planning to commission a
stainless steel tube factory in Karachi,
Pakistan, from January 2015, and a
large diameter tube mill by mid-2015.
The company has also incorporated a
wholly owned subsidiary in Australia: IIL
Australia Pty Ltd.
IIL Stainless Steel Tubes will initially
cater to the needs of ornamental and
auto sectors for various applications
by manufacturing austenitic and
ferritic series in conformance with the
ASTM A-554 international standard. In
addition, the company is setting up a
12" diameter API and structural pipe mill
to cater to the growing demand of gas
companies and the construction sector
in the region.
IIL, which has 50 years of pipe
manufacturing experience, will also
participate in BORU 2015, in Istanbul,
Turkey.
International Industries Ltd – Pakistan
Trend in installed volume of pressure pipes
IIL’s manufacturing unit