Categories of pipe used are gravity pipe for building and civil engineering, pressure
pipe for utilities and plumbing and for industrial use. The gravity sector is by far the
largest.
In industrialised countries 89% of all sewage pipes are still made from concrete and
stoneware, only 11% are plastic. Despite this, more than 50% of all plastic pipes are
sewer and non pressure pipes. Of this PVC has a market share of 80%. Despite the
moves away from PVC, pipes made from this material grow at average GDP rates.
By 2025 an additional 3bill. people will live on our planet, demographics have the 2nd
biggest impact on the growth rates for waterpipes. The biggest impact is coming from
the replacement of concrete, copper and steel pipes however.
For pressure pipes only the PVC standard DIN EN 1452 is published. PrEN drafts cover
PVC-sewer, PE-drinking water and sewer. EN for gas pipes is in the formla vote. Key
standards in Europe are DIN 16982 and 16983 apply for hot water pipes, up to
diameters of 160 mm. ISO 13479 is the international standard for stress crack
resistance and ISO 13477 covers rapid crack propagation.
HDPE pipes display good functional properties, toughness, resistance to corrosion,
chemicals and micro-organisms. They can be tailored to different requirements and
installed at low costs. Today mainly unimodal HDPE grades (PE 63 and 80) are being
used allowing wall thicknesses of up to 70mm. Most important area of application
for HDPE pipes is drinking water, followed by sewage, gas supply lines and district
heating. HDPE has also never been as cost efficient as today.
The industry is facing a number of issues which explain the drive towards plastics;
? Leakage rates which require overdesigned treatment plants, and water shortages;
? Backflow: due to poor fittings connections, a vacuum is pulled on the line which
draws in dirt/contaminants;
? Costs: higher consumer bills and repair expense) with the existing technology.
Since HDPE pipes are joined by heat fusion this creates a leak free system. The joint
created is as strong or stronger than the pipe itself. In addition, no bolts, gaskets are
required.
It is estimated that 25% of the water that is cleaned and transported through pipes is
lost at local water plants, due to poor fittings. Iron pipes also are susceptible to fungi
and bacteria, causing decay and negative impact on hydraulic effiency over time.
PE requires no special coatings nor cathodic protection, is more resistant to acids, bases
and salts and is unaffected by bacteria/fungi; thereby providing better long term
hydraulic / hydrostatic stability over time. PE is smoother than steel which provides
excellent flow characteristics thereby offering equivalent flow profiles / velocity with
smaller pipe inner diameter.
New bimodular materials (PE 100) manufactured by a cascade process, which equips
them with highly cristalline zones of short molecule chains, allowing wall thicknesses
well below the more standard PE’s. They are the reference materials for gas distribution
pipes in Europe today. The term PE 100 indicates the strength this PE (long term
strength of at least 10 Mpa at 20°C over 50 years).
PE 100 set new standards in terms of creep rupture strength, stress crack resistance
and resistance to rapid crack propagation. Sagging and dimensional stability are
however issues for PE100 based pipes at dimensions that exceed 65mm (Silane xlinking
does resolve the sagging issue). Their higher stiffness is limiting their use in smallerdiameter waterpipes for floor-heating.
Multilayer pipes (MP) based on an alu-midlayer are making inroads. This layer works as
a barrier layer providing 100% diffusion tightness, it also reduces the length expansion
of the pipe when exposed to heat and provides larger distances between fixings due to
the higher stability. As a consequence, 30% less fixing material less time is used during
installation. MP pipes also tend to be 40% lighter then metal pipes and are easy to shape
and form.
Market Overview – PE-X Pipes
Pex pipes account for 180kT and grow by 12 % pa (02-06). Pex b amounts to 69kT
(Europe 30kT, NA 12KT, ME 5kT, Asia 18kT, SA 4kT). Pex pipes make big inroads into
pressure pipe markets, displacing traditional steel and copper through lower installation
and in-service costs (easier installation techniques, lower weight, less crack
propagation). Figures published by KWD suggest that PE-X pipes will increase in Europe
from 400 Mill.meters in 1998 to around 680 Mill. meters in 2004 (Copper 750Mill.
meters 1998 to 650 Mill. in 2004).
Focus for PE-X remains on hot- and cold water Pipes, Gas pipes. PE-X provides endusers with benefits such as superior temperature-, chemical- and abrasion- resistance.
The Pex-MP (Multilayerpipe) market is expected to grow the fastest, due to several
handling and performance benefits vs. monolayer pipes (especially in sanitary and
floor-heating installations).
Due to their superior performance on permeability, MP pipes also open up huge
opportunities as complete fuel, brake and vapour fluid carrying systems.
EVOH is the most widely used agent for Oxygen diffusion barriers on Pex pipes for
under-floor and radiator heating .
While the markets for MP using alu midlayers have been in Europe and China, the
standards have really been written by the ASTM, describing min./max. wall thicknesses
and desired internal pressures.
Medical Tubes present another interesting growth area for polyolefins in the coming
years. However the kinking of pipes when bent too forcibly has been an issue when
trying to switch from PVC to polyolefins such as HDPE’s. Increasing the wall thickness
will reduce kinking but you also reduce bending.
In Europe PE-X materials are subject to a number of standards: BS EN 1055: Plastics
piping systems. Thermoplastics piping systems for soil and waste discharge inside
buildings. Test method for resistance to elevated temperature cycling (sorry should be
EN 1055 and not EN 155). DIN 16892: Pipes made from crosslinked PE (PEX); Defines
the degree of min, gel content needed for PEX A= 75%, PEX B= 65%, and PEX C= 60%. It
covers HDPE based PEX pipes and refers for the dimensional requirements to DIN
16893. DIN 16893: Dimensional requirements of PEX pipes.
ISO 13479: Polyolefin pipes for the conveyance of fluids - Determination of resistance
to crack propagation - Test method for slow crack growth on notched pipes (notch test)
CEN publication date 1997-05-01
ISO/TR 9080: Thermoplastics pipes for the transport of fluids -- Methods of
extrapolation of hydrostatic stress rupture data to determine the long-term hydrostatic
strength of thermoplastics pipe materials.
A tap water installation is often described as being like a long food package and thus
the pipe material taste and odor neutrality is critical. For this reason formulations must
be in accordance with national and European positive lists for drinking water and food
contact. In addition, many authorities require formalized organoleptic taste and odor
testing: EN 1420 influence of organic materials on water intended for human
consumption – determination of odour and flavour assessment of water in piping
systems, test method.
In the US the PE-X industry has been very proactive in ensuring that its’ products
are suitable for the various plumbing applications. Based on the past experience
with polybutylene (PB) and acetal fittings, the industry has paid particular attention
to ensuring performance in chlorinated potable water applications. ASTM F2023 is a
consensus test method developed by the industry to determine the oxidative
stability of PEX in hot, chlorinated water.
Currently, specific minimum performance requirements based on this test method
are being balloted into the ASTM PEX tubing product standard, ASTM F876, which
will make it mandatory. NSF International has developed a voluntary protocol (P171)
to which they list PEX materials and/or pipes based on chlorine resistance testing.
Both of these documents use aggressive conditions to accelerate the testing of PEX
pipe in potable water applications and ensure a minimum level of product
performance.
Chlorine is a very powerful oxidizing agent not just with PEX but for any material,
including copper, which is susceptible to oxidation. The effect of chlorine is simply an
acceleration of oxidative processes relative to less oxidatively aggressive nonchlorinated water. What is known with great certainty is that overall water quality, and
not just chlorine concentration, determines how strong an oxidizer the water is.
Regional Market Review - North America
North American shipments of polyethylene pipe, tube and conduit totaled 1.4 billion
pounds in 1999, an 18.8% increase from the 1998 rate of 1.2 billion pounds, according
to the 1999 Statistical Review (Plastics Pipe Institute, Inc. (PPI)). Copper still has an 80%
share in hot & cold water plumbing systems (Pex now 15%).
The pipe and profile market in the US accounts for 10% of the total plastics industry,
estimated at $ 137bn (US Census Bureau). Fittings account for another 2% of the total.
Pipe markets in North America still dominated by copper and PVC.
Indoor plumbing and radiant floor heating are making xlinked PE a highly sought
material in the US market. In 2002 approx. 650million lbs of xlinked polyethylene were
consumed in the US, of which 26% went into pipe applications (46% in wire and cable).
PEX does not exhibit the issues of corrosion as present with copper, reducing waterflow. It has better stress crack performance than PB and better impact resistance than
PVC and PP. For radiant heating it also has better flexibility. As from 2000 national
plumbing codes accepted PEX and it is finding growth because more and more
households are switching from hot-air heating to radiant-floor heating.
In Europe, pipes in heating mainly go into radiator connections and ufh, while in
the States they also go into sundry baseboards, and in Canada up to 40% are used
outdoors, mainly to keep ramps and drive-ways clear. The copper Industry has
started feeling the brunt from this massive attack triggered by PE-X and the likes,
and is fighting back with all means fair and foul (watch the struggle for approval of
plastic systems in Florida, for instance).
Main players in the US are Wirsbo-Uponor (Pex-A), Vanguard, Plasco Canada and
Zurn (Pex-b). Wirsbo uses for all their Pex production the Engel - CV process
(peroxide crosslinking), only facility within their group that uses some Sioplas
compounds is the Plasco site in Canada.Sioplas materials are predominantly used in
the US Pex-B markets. Only Zurn / US Brass have pursued the Monosil route and
have converted three extrusion lines to that process in the meantime.
Regional Market Review - Europe
From the early Seventies underfloor heating (ufh) with hot water pipes started
spreading from Switzerland, Austria and Germany whereas electrical systems (foils
in Spain, cables elsewhere) never got far beyond a dismal 5% market share.
Only after the breakthrough made by plastic pipes (PP, followed by PB and PE-X) ufh
has become one of the most widely used systems. In Germany copper pipes can
occasionally be found in ufh but their share is negligible and so is hot air’s and
electric radiators’. In Germany hydronic ufh with plastic pipe has reached 70% in
houses and around 30% in apartments.
In South Europe ufh’s breath-taking rise is fed by those countries’ habit of tiled
floors. Plastic pipes started off with diameters of 20 mm and more (still 25 mm for
outdoor use in ramps etc). A combination of energy-saving legislation and improved
insulation has brought a steady reduction in diameters to the present average of 14
mm with 12 and even 10 mm already showing on the horizon. The original PP
(polypropylene) has been mostly displaced by PE-X (cross-linked polyethylene) as
the material of choice while PB (polybutylene) remains marginal
Plastic pipes in hydronic heating are plagued by a common and recurring scourge :
they are not oxygen-proof. This has led pipes to be coated with an odb (=oxygen
diffusion barrier). Oxygen can be absorbed into the water stream through the pipe
wall and cause havoc in the boiler if a tiny metal particle has been left in the system
by a careless plumber. Pinhole perforation is the undesirable consequence.
The recently improved welding of ever thinner aluminium foils for multilayer pipe
which is oxygen-proof by
In 2000 2.6 Mill. tons of plastic were used in pipes (valued at Euro 10bn), that’s 7% of
total production compared to the automotive industry’s consumption of 8% of all
plastics.
The European hot water – sanitary pipe market accounted for 720Mill m. of copper pipe
and 480Mill. m. of Pex & MP pipe in the year 2000. With the continuing growth of
eating German underfloor heating market amounts to 93Mill meters, of which Pex pipes
have captured 74Mill. and copper are down to 10.5Mill meters in 2000. The French
market for underfloor-heating amounts 30,6 Mill. meters of which Pex accounts for
27,6 Mill. meters. Key players are Alphacan (Pex-b) and Acome (Pex-c).
There are about 655 thermoplastic pipe production plants in Europe (40% of them
account for 80% output and are owned by 50 pipe producing groups). Largest number
of plants (151) are to be found in Italy, which has the highest fragmentation. Germany
accounts for 82 pipe extrusion plants (average throughput of 5’700MT/annum)
followed by Scandinavia (66), Poland (66 – 2’530 MT of throughput) and France (53).
Market Value in 1999 was estimated around € 7 billion. In Europe PE pipes account for
70 – 82% of all drinking water pressure pipes.
The ten biggest pipe producers are listed below:
Wavin has long been the leading group, however Pipelife and Uponor are the strongest
contenders. Recent corporate changes include the acquisition of Deka (D) by Georg
Fischer, Geberit acquired Caradon Terrain (UK), Glynwed acquired Friatec (D) and Ipex
(CD), Etex took over Marley (UK) and Pipelife took over Jet Stream (US).
In the rest of the Middle East (excl. Israel) there are now around 93 plastic pipe
processors producing a total of 450'000 tons of pipes. PVC still accounts for the lion
share with 320'000 tons, however capacity utilisation of the remaining 130'000 tons of
PE is only around 50%. Sales of PVC pipe outnumber that of PE by 21:1, mainly due to
the lack of natural gas.
Regional Market Reviews - Asia
China will encourage the use of plastic pipes, according to an outlined development
programme for chemical building materials industry in the Tenth Five-Year Plan period
(2001-05) and up to 2010. Plastic pipes will also benefit from China’s low and falling
local supply of copper.
By 2005, the use of plastic pipes, is expected to account for 70% of construction
drainage pipelines in new and expansion projects, 50% of hot water and heating
pipelines, 10% of city drainage pipeline, 60% of construction water, hot water and
heating supply pipelines, 50% of city water supply pipelines (of less than DN400mm),
70% of rural water supply, 20% in city gas pipelines (medium and low pressure pipes),
and 80% in electric wire jacket pipes.
According to statistics, China has about 2,000 pipe production lines, of which 15% are
imported equipment. The production capacity of various pipe products was 1.5 million
tons in 1998 and the total output was 900,000 tons. Of them, 450,000 tons were UPVC
pipes and 320,000 tons were PE pipes. Chinese pipe manufacturers produce around
100Mill meters of MP (Multilayer Pipe) annually.
Whereas profile producers adhere to Austrian / German standards, pipe producers have
so far adopted ASTM standards. PlyPipe is by far the biggest single extruder of MP
pipes, with a total of 47 extrusion lines.
The japanese market is switching rapidly to plastic pipes (incl.PVC lined pipes, Pex and
Polybutene). This followed major earthquakes in recent years and the comparative
advantages that plastic pipes have over copper and other metal pipes. Japanese
producers still have a preference for PB pipes in potable water applications, also related
to the easier weldability of that material.
Key issues for silane Pex pipes today continue to be tin catalysts.
Philmac, Australia has become the first company to supply Japan with specialist
plastic water fittings for use in connecting households to the mains water supply.
Philmac signed a contract with major Japanese trading company Kurimoto Ltd,
which in turn will supply the fittings to Japan's 5000 domestic water supply
companies. It is the first time Japan has approved the use of plastic fittings for its
domestic water supply system.
The Japanese water market traditionally used metal fittings and had extremely
tough standards which had to be overcome before any other material would be
considered. In the past, plastic fittings have been unable to meet these standards.
The Kobe earthquake in 1995 had been the catalyst for the development and use of
plastics in the domestic supply of water in Japan.
Current situation of plastic pipe market in China :
Now there are only three kinds of plastic pipe used in in-house application : ALXLPE composite pipe, PEX pipe and PP-R pipe. PP-R pipe was promoted and
recommended by China Construction Material Bureau and the people of PP-R
industry last year, and quickly PP-R pipe take over the market of AL-XLPE
composite pipe and occupy about 60% of total plastic pipe market in China because
of the advantages :
1. PP-R pipe’s installation is same as steel pipe, local construction designers get
used to it.
2. PP-R pipe don’t need fitting. Many accidents of AL-XLPE composite pipe (also PEX
pipe) is caused by the broken between copper fitting and pipe before, leave bad
impression on China Construction industry.
PP-R compound is made by 90-95% PP, 5% Ethylene and other additives, is
compounded by the twin-screw extruder, the compounding temperature is close to Sioplas compounding. According to the specification released by China
Construction Material Bureau, PP-R pipe with 3.5mm diameter can pass the testing
under 1000 hours, 95°C and 3.5Mpa. For the same requirement, PEX pipe only need
2.7mm diameter. Now flooring-heating pipe become popular in northeast China
and will expand to northwest China soon.
Competitive Offerings
PP-R plumbing and heating pipes have reached 60Ktons in Germany and replaced
mainly FE (galvanised steel) pipes, due to big corrosion issues. Also copper pipes have
been displaced in areas where the acidic water quality can quickly cause pitting erosion.
German BgVV issues a health warning in 1998 over the use of copper pipes for water
with PH values below 7.3. PP-R is used in hot and cold water as well as radiator
connection systems (however life expectancy at 95Deg C is only 10 years – 50 years
5Mpa hoop stress for 50 years).
PP-R pipes are growing fast in China nd Turkey, due to this system approach.
Tab-water installation is usually described as a long food package and thus pipe
material taste and odour are critical.
Dow Chemical continue to attack Pex-B pipes with their range of their Dowlex
polymers, on grounds of their organoleptic performance in potable water systems
Dowlex polyethylenes are ethylene-octene copolymers produced via their proprietary
solution process. Dowlex 2344E for pipes is targeted at the hot-tab water market (< 60
DegC) and the lower temperature floor heating market (< 70 Deg C).
Dow introduced at the K 2001DOWLEX* 2388 resin for pipe applications. The resin,
which is the newest member of Dow's versatile DOWLEX polyethylene (PE) family of
resins, offers improved hydrostatic strength and processability over existing materials
in a variety of heating/cooling systems and hot and cold drinking water supply
networks. The resin is well suited for applications such as floor heating, radiator
connections, snow melt systems, heat exchangers, solar panels, heat recovery systems
and hot/cold domestic drinking water networks. And, due to its high strength at high
temperatures, it can be used in technical applications where conventional PE usually
fails.
DOWLEX 2388 resin is an ethylene-octene copolymer, produced by a proprietary
solution process from Dow. DOWLEX 2388 resin features a unique molecular
structure with a controlled side chain distribution.
KIWA feel there is a strong pressure from PERT against PEX and would advise us to
position PEX directly against it. PERT has had some field problems related to creep
(fitting release) and taste (BFP is highest compared to all other plastic pipes). PEX has
on the other hand never had any field problems reported to them. The only problems
heard of were related to installation errors where the coefficient of expansion had not been taken into account (failure at main connection due to local stresses resulting from not having left enough expansion length). As mentioned, PERT has a very high BFP, as
have all uncrosslinked PE materials (incl PE100) in general. Of the PEX systems, PEX-a
has by far the highest BFP, and PEX-a is also under scrutiny due to the alleged
mutagenic byproducts generated by peroxides (producers have to prove otherwise).
Strategic Alliances in Pipes
ETEX
Etex Group is an industrial holding company specializing in building materials. The
Group, with its head office in Brussels, has 180 subsidiaries across 45 countries and
employs 30,000 people. There are four major product groups within the Group:
roofing materials, plastic pipes and fittings, boards, floor and wall covering. Glynwed
divested their complete plastic pipe business to ETEX, after years of aggressive
acquisitions, incl. Companies such as FIP, Masa, Durapipe, Friatec, Ipex (USA)
and Philmac (Australia). Etex (family owned producer of building products incl.
Roofing ) of Belgium acquired the whole business for € 1.24bn. Etex was already
owner of Marley and other pipe producers.
DRISCOPIPE & PLEXCO
Phillips Petroleum Company (NYSE: P) and Chevron Corp. (NYSE: CHV)
announced June 30, 2000 that they have received the final necessary regulatory
clearance to proceed with the combination of their worldwide chemicals
businesses. The transaction creating Chevron Phillips Chemical Company, LP
closed July 1, 2000.
This means that the polyethylene pipe units of PLEXCO (formerly of Chevron
Chemical Company LLC) and Phillips Driscopipe (formerly a division of Phillips
Petroleum Company) have been combined. The combined pipe operation is
named Performance Pipe, a Division of Chevron Phillips Chemical Company, LP.
The combined plants of PLEXCO and Driscopipe will have unprecedented
flexibility and capability to produce and provide polyethylene pipe systems. With
14 plants throughout the country, Performance Pipe will be able to quickly
respond to orders no matter the size or quantity.
WATTS INDUSTRIES acquire Dumser Metallbau, Germany
Main products of Dumser are brass and steel manifolds used as prime
distribution devices in heating systems. Acquisition will strengthen Watts
leadership in the European hydronic heating market. Dumser holds 51% in Stern
Rubinetti. Watts Industries with worldwide sales exceeding € 532 Mill, includes companies in nearly every European country (Watts Londa, I; Watts Intermes, CH; Watts Ocean, B; Watts MTR, D etc). http://www.wattsind.com .
UPONOR licenses DPI Plastics of South Africa
Uponor also became the 1st
pipe company in the US for selling composite pipes
in water supply installations. Their Wirsbo unit also received approval in 2000
for a new sprinkler tube / system in homes.
GEORG FISCHER AG
Georg Fischer AG (HQ: CH-8201 Schaffhausen) acquired Schwab Sanitär-Plastic GmbH.
For Georg Fischer, the acquisition is a move to expand its business in the growth
market of home plumbing and to substantially strengthen its European position. Georg
Fischer is a group that focuses exclusively on pipe distribution systems (fittings,
connecters etc.) employs 2,700 and has group sales of EUR 500m.
PIPELIFE International
50:50 joint venture between Solvay and Wienerberger to produce pipes. Pipelife
signed partnership deal with Changzhou Reinforced Plastics Factory (CRPF) for
the creation of a joint company for making pipes. CRPF is a medium sized
company that makes plastic pipes 200km north of Shanghai, with profits around
$ 5 Mill. They focus on water and gas pressure pipes (PVC and PE). Total annual
capacity is around 8’000 tons. Reason for this joint venture is the 20% annual
growth that pipes have seen in the Shanghai region during the last three years.
Acquisition Agreement signed by WAVIN for EKOPLASTIK in the CZECH
REPUBLIC
Wavin and Ekoplastik are announcing that an Acquisition Agreement has
been concluded. In order to complete the project successfully, which is
expected by the end of the year, all the necessary administrative steps and
formalities have been commenced as well as a due diligence process.
With its wide range of plastic pipes and fittings, Ekoplastik is one of the
leading companies in hot & cold tap water pipe systems in Central and
Eastern Europe. At its production location near Prague Ekoplastik has about
250 employees and realises a sales turnover of EUR 27 million per year.
Wavin is the European market leader in plastic pipe systems with a turnover
of EUR 922 million in 2002 and 4,700 employees.
Wavin is already well represented in Central and Eastern Europe with factories
in Poland, Hungary and Lithuania and sales companies in nearly all countries
of the region. Wavin has currently no production facilities in the Czech
Republic but sells sewer and utility pipes and fittings for underground
applications via a number of own depots. The market position of Ekoplastik
with its extensive range of above-ground tap water and soil & waste systems
is fully complementary to Wavin's market coverage in the region.
Wavin's CEO Mr Houben commented on the acquisition: "This takeover fits
very well in our drive to establish a leading position in Central Europe and to
expand our sanitary product range. We see Ekoplastik as a very reputable
company in its field and are impressed by its strong performance over the
years. I will be pleased to welcome Ekoplastik and its employees to the Wavin
group of companies in the nearest future and hope that it will establish its
position in Wavin as the centre of excellence for PPr tap water pipe and
fittings".
Profile of Wavin
Founded in 1955, Wavin operates in 24 European countries and is a leading
manufacturer of plastic pipe systems in Europe. It also has a global network
of more than 90 agents, licensees and distributors. Its stated aim is “to be
the unrivalled European supplier of plastic pipe systems in terms of product
range, innovation, logistical services and geographical presence.” In order to
supply its customers with value-added products, Wavin has its own research
and development centre, in which it invests considerable sums towards the
development of new products and processes.
