High-temperature plastics IV, 1997; Global market for high temperature plastics approaches $3 billion.

FAIRFIELD, N.J.--(BUSINESS WIRE)--June 20, 1997--High-temperature plastics is the most specialized and rapidly growing segment of the plastics market.

These polymers, with heat deflection-temperatures exceeding 200 degrees Celsius, have experienced dramatic growth in demand from $800 million globally in 1984 to $2.9 billion in 1996, according to consultants at Kline & Company Inc., a Fairfield, New Jersey-based consulting firm that regularly tracks specialty chemicals and materials.

Kline is currently initiating its fourth major analysis of the global high-temperature plastics market, which is comprised of over 10 polymers as follows: -0-

-- Fluoropolymers -- Liquid crystal polymers (LCPs) -- Polyamideimides -- Polybenzimidazole (PBI) -- Polyetherimides -- Polyimides (PIs) -- Engineered thermosets -- Polyketones -- Polyphenylene sulfide (PPS) -- Polysulfone derivatives -- High-temperature polyamides (HPPA) -- Polycychlohexane dimethylterephthalate (PCT)

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"Despite their high average price at over $10 a pound, these are truly performance polymers used in applications where their unique properties justify their price," says Carl Eckert, senior vice president at Kline. For some of these polymers, growth in demand has been extraordinary over the past several years, with consumption increasing at rates greater than 20 percent per year. However, it is not only the excellent temperature capabilities of these polymers that has caused their high growth. In many applications their chemical, wear-resistance, and other properties are more important. According to Eckert, "there are several issues driving the excellent growth for these polymers including:

-- Conversion to surface mount assembly technologies and miniaturization by the electronics industry, thus requiring higher-temperature polymers

-- Increasing use of temperature and chemical resistant polymers in automotive under-the-hood parts

-- The growing use of high-performance polymers to replace metals in corrosive and hostile environments 

-- New applications in consumer, medical/dental and industrial products, which require unique high-temperature and lightweight properties"

Electrical/electronics currently account for 40% of the market for high-temperature plastics, primarily for PPS, HPPA, polyimides, fluoropolymers, and LCPs. In electronics, applications include circuit boards, connectors, wire and cable, relays and switches. These materials are preferred for their dimensional and thermal stability, as well as low dielectric constants and low moisture absorption.

Automotive uses continue to develop in under-the-hood applications. Fuel lines, fuel rails, impeller shafts, intake manifolds, valve covers, gaskets, and camshafts are all undergoing development with these polymer systems. Materials currently in use or under examination include fluoropolymers, PPS, HPPA and PEI.

Industrial markets continue to develop as experience with high-temperature increases. However, applications are quite fragmented, and include mechanical parts, bearings, bushings, gaskets, seals, valve/pump parts and piping. Almost all of the high-temperature polymers exhibit some promise in this market.

The aerospace market demands extreme performance materials. Temperature requirements range from over 200 degrees Celsius for military aircraft, to over 300 degrees Celsius in jet engines and spacecraft applications, and even 600 degrees Celsius in missiles. Aerospace polymers include composite matrix resins, structural components, engine components, housings, coatings, and adhesives. The high-temperature polymers which appear to offer opportunities include bismaleimides, polyimides, polyamideimides, polyetherimide, polyketones (including PEEK), polysulfone derivatives, and PPS.

In addition to its rapid growth, the market for high-temperature plastics has been transforming in terms of product competition. The most noteworthy recent product development was the introduction of Questra(TM), a syndiotactic polystyrene by Dow Chemical in 1995. This polymer was the first new introduction of a new high-temperature thermoplastic in over 10 years, and could significantly impact interpolymer competition.

"Dow's new polymer could dramatically affect the demand mix of high-temperature polymers, as well as push these polymers into more metal replacement applications," according to Eckert. But other producers are not standing still. At the same time, Eastman Chemical announced that it will be entering the liquid crystal polymers market. In addition, within the past year, Toray announced it would be constructing a liquid crystal polymer plant and expanding its PPS production by 50%. GE announced a 20% capacity expansion for Ultem, its polyetherimide polymer, and DuPont is expanding its Vespel polyimide capacity. Hoechst, Phillips and Tosoh also announced expansions of their PPS production capabilities.

As a result of these numerous product and supplier developments, Kline & Company has decided to conduct its fourth analysis of the high-temperature plastics market. The report, HIGH-TEMPERATURE PLASTICS IV, 1997, will include an analysis of the major end-use applications, leading suppliers, product forms, and the outlook to 2007 for over ten separate polymers. The global study is available by subscription from Kline & Company, 165 Passaic Avenue, Fairfield, NJ 07004. For subscription terms or more information, contact Carl Eckert - senior vice president, by telephone [phone] or by facsimile [phone].

CONTACT: Kline & Company

Carl Eckert, [phone]

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