Carbon black market is steady.Carbon black manufacturers in Europe are gearing up to meet one of their biggest challenges, as key end-user industries of this material increasingly shift their production facilities from western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). to the comparatively low-cost central and eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. (CEE cee n. The letter c. ) region. The task of transporting carbon black from existing manufacturing plants in western Europe to end users' facilities in eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. is both expensive and uneconomical, creating enormous difficulties for manufacturers, according Frost & Sullivan, a global growth consulting company Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee consulting firm business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a . "Carbon black manufacturers are feeling increasing pressure to maintain a presence in these regions, and this is driving some of them to invest in the CEE regions to continue supplying to existing key clients while attracting new business," commented Frost and Sullivan Senior Research Analyst Mahesh Kumar. "While this may be feasible for larger and well-established participants, smaller companies will find it difficult to compete under such conditions," Kumar added. New analysis from Frost & Sullivan titled, "European Markets for Carbon Black," reveals that these markets earned revenues of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1,178.8 million in 2006 and estimates this to reach EUR 1,938.0 million in 2013. Shifting to low-cost regions or investing in new facilities could give manufacturers a strong advantage in terms of proximity to key markets, helping them target existing and emerging markets, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Frost & Sullivan. Such a move could also provide logistical benefits. While shifting to low-cost regions may bring short term benefits, carbon black manufacturers are likely to continue to depend on western European countries for the majority of their business. However, stable demand from end-user industries, especially tire manufacturers, will continue to sustain market growth. This segment is the largest consumer of carbon black, accounting for almost 65% of the total European market. Rising prices of crude oil derivatives are said to present a major challenge, since carbon black production is highly dependent on these raw materials. |
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