Examine European Markets for Carbon Black

Business Wire, July 7, 2008

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/research/6e1388/european_markets_f) has announced the addition of Frost & Sullivan's new report "European Markets for Carbon Black" to their offering.

This Frost & Sullivan research service titled European Market for Carbon Black provides an overview of the market, revenue and shipment forecasts, as well as a strategic analysis of active participants and end applications. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following applications: tyre manufacturing, plastics, paints and coatings, inks and toners and other miscellaneous applications.

Market Overview

End-user Industries' Shift to Low-cost Countries Presents a Challenge to Carbon Black Manufacturers

Several key end-user industries of carbon black are increasingly shifting from western Europe to the relatively low-cost and potentially high-growth regions of central and eastern Europe (CEE). Carbon black manufacturers are pressurised to invest in these regions to supply their key clients and attract new business profitably. The difficulty arises due to expensive and uneconomical cost of transporting carbon black to these locations with existing facilities and this is why some chemical manufacturers are following suit and moving their production facilities to maintain a regional presence. This may be a viable option for well-established participants, but smaller companies will find it difficult to compete under such conditions.

"Though the shift to low-cost regions provides benefits in the short term, carbon black manufacturers are still dependent on western European countries for the majority of business," notes the analyst of this research service. "In addition, specialty application markets for carbon black continue to remain in these countries." However, demand from the CEE region is also set to increase as tyre manufacturers increase investment in new manufacturing plants here. Increase in automobile manufacturing rates will sustain demand for tyres, and hence, for carbon black.

Stable End-user Industry Demand Sustains Business Potential

Stable demand from various end-user industries continues to generate growth opportunities for carbon black manufacturers. The tyre manufacturing segment is the leading consumer of carbon black, accounting for almost 65.0 per cent of the overall European market. This situation is likely to continue as tyre manufacturers increasingly set up new production plants in the CEE region. Carbon black manufacturers that shift or invest in new facilities in low-cost regions will be able to ensure proximity to key markets and take advantage of opportunities in both existing and growing markets. "Such a move also provides logistical benefits to identify opportunities beyond these markets in the future," adds the analyst. "Investing in new technology, minimising distribution costs and identifying key specialty application markets could also help manufacturers attain competitive advantage."

Apart from the tyre manufacturing industry, carbon black manufacturers are also exploring opportunities in the mechanical rubber goods market and other speciality application areas such as construction, adhesives and sealants, pharmaceuticals, paints and coatings, inks and printers toners. In fact, some participants are focusing on such applications as they offer better profit margins.

For more information visit http://www.researchandmarkets.com/research/6e1388/european_markets_f