TPI April 2009

The diverse usage of plastic tubes in industry An interview with Dr Elmar Löckenhoff, managing director of KRV

Dr Elmar Löckenhoff, ▲ ▲

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. n 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. n 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). n 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.

n 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. n 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. n 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. n 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. 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 n Are plastic tubes used mainly in industrial applications or also in the domestic area?

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Tube Products International April 2009

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