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The globalization of markets has
necessitated significant changes. The markets have shifted more
radically towards Asia and other developing regions, while the manufacturing
of raw materials (compounds) is slower in shifting to these newer
regions.
The continuous pressures of cost contentments have compelled compounders
to look for cost effective solutions. At the same time, more stringent
and complex regulations require newer additives, polymer blending
etc., which are often more expensive and yet not very effective.
For instance, elimination of lead based heat stabilizers from PVC
cables compounds has yet not been very effective and cost efficient
inspite of developmental efforts continuing for almost the past
ten years. Infact, it would not be very surprising that complete
elimination of lead heat stabilizers from PVC cables will not take
place even by 2010.
Similarly, Antimony oxide used for flame retardant cables is the
most cost effective. All other alternate additives make cables more
expensive. With the phenomenal economic growth from late eighties,
the Chinese market for cables has increased significantly. However,
the local compounding industry is not in a position to meet these
requirements. Some major international compounders like Ampact,
Teknor, etc have therefore set up manufacturing facilities either
in China or nearby Asian countries like Malaysia, Thailand to meet
the increasing demand of Chinese markets at competitive prices.
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