TPI April 2009

Tube Products International April 2009

www.read-tpi.com

Dr Elmar Löckenhoff,

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managing director of KRV

Plastic tubes can be found in nearly all conceivable areas

of applications for tube systems. In this interview, Dr Elmar

Löckenhoff, managing director of the Kunststoffrohrverband

eV (Plastic Tube Association) in Bonn, Germany, answers

questions about areas of use, quality assurance and the

growth perspectives with regards to plastic tube systems.

The year 2006 is considered a ‘super year’ for the

plastic tube industry. Which developments did the industry

experience in 2007?

Overall, the year 2007 yielded presentable results for the

plastic tube industry. German manufacturers’ production

volume, with 710,000 tons for tubes made of the traditional

materials, PE, PVC-U and PP, was about 6.7% above the

volume of the previous year.

What was the sales volume of the plastic tube industry in

2007?

Sales volume is not very suitable as an indicator of success in

the plastic tube industry. We therefore focus on the changes in

the volume development, either sales by tonnage or in million

metres (premises and building technology).

Because of the global financial crisis and the resulting

economic downturn, the forecast for 2008 is rather

guarded. What are your expectations for the plastic tube

industry?

In comparison to the successful years 2006 and 2007, the

growth rates up to the end of 2008 will be significantly lower.

All in all, we expect a sales plus of about 3.5% in Germany

by the end of 2008. The risks – especially for the construction

industry – are plentiful: insufficient financial means for the

economy, probably rising interest rates, price hikes affecting

the macro-economic situation, loss of real income across the

board and the high level of debts of the state. The number

of building permits is expected to decrease further. At the

same time, production and sales of plastic tube systems are

increasing steadily. This means that our industry is gaining

market shares at the expense of other tube materials. In

addition, many German plastic tube producers are also well

represented in Eastern Europe. To date, the construction

business is still going strong there. The backlog demand for

investments into infrastructure is enormous. However, it can

be expected that the international financial crisis will soon

also affect Eastern Europe. If it comes to liquidity shortages in

money supply, the economy is likely to take a steep downturn,

which would also have consequences for the plastic tube

industry in Germany.

What percentage of the plastic tube consumption in

Germany is allotted to plastic tube applications?

This is the rule of thumb: One third of the plastic production is

destined for the construction sector. Of this, close to one third

goes towards production of plastic tube systems.

How many plastic tube producers are there in Germany?

There are several larger and smaller manufacturers. We know

of 65 plastic tube producers in Germany. The largest and most

prominent producers are represented in the Association of the

Plastic Tube Industry, ie the KRV.

What is the market share of the plastic tube industry in the

construction industry?

This question cannot be answered the way it was posed. We

need to differentiate according to sub-segments. The market

shares of plastic tube systems in comparison to tube systems

made of other materials also vary. A sub-segment review for

2007 is included in the 2008 business report.

What kinds of applications are there for plastic tubes?

Plastic tubes can be used as means of transport in all

conceivable areas of application. Generally, we differentiate

four areas of application: supply, waste disposal, premises

or building technology and industrial applications. In this

regard, plastic tubes are used mostly for the transport of

potable water, gas and sewage as well as other fluids (eg

chemicals, ultrapure water and salt water). In addition, there

is a plethora of other uses, for example in agriculture or

telecommunication.

Are plastic tubes used mainly in industrial applications or

also in the domestic area?

In the industrial area, eg in the chemical industry or in

special applications in shipbuilding, plastic tube systems

are being used more and more. Compared to the overall

processing volume, industrial use will remain an important,

but comparatively small market. Large tonnage can be found

in the production of potable water, gas and sewage systems

(private land drainage and public sewage networks), in

underground pipe installations. Plastic tubes have become

integral components in industrial as well as private construction

The diverse usage of

plastic tubes in industry

An interview with Dr Elmar Löckenhoff, managing director of KRV