CHAPTER 6: BRIEF HISTORY AND DATA REGARDING THE JAPANESE PVC INDUSTRY

Transcription

1 CHAPTER 6: BRIEF HISTORY AND DATA REGARDING THE JAPANESE PVC INDUSTRY This chapter introduces a brief history of PVC, which has the longest history among general purpose plastics, dating back to the postwar period (initial phase) and its growth thereafter to mark 2.5 million tons of production per year. Related information such as the transition of production and shipment, the growth of the PVC industry in the world, the position of the Japanese PVC market, and the unique features of the PVC industries and markets in Japan, the U.S. and EU will also be explained though comparison of data per application. The excellent physical properties of PVC are highly regarded globally. PVC will sustain its broad applications and would further expand in construction materials such as window profiles and sidings.

2 CHAPTER 6 : BRIEF HISTORY AND REGARDING THE JAPANESE PVC INDUSTRY 1. Brief History of the Japanese PVC Industry through Fig. 6-1 Transition of PVC production in Japan (calendar year) Thousand tons 3, PVC Association of Japan Initial phase (domestic technology) Development phase (technology introduction) Boom phase (upsizing Structural 2,5 (Active exports of PVC production technologies) 2, 1,5 1, 5 Commercialization Switch from emulsion to suspension polymerization 2nd largest production in the world Introduction of the EDC process Introduction of oxychlorination process First VCM center by oxychlorination process Production broke 1 million ton mark The Nixon Shock Countermeasures for plastic wastes The 1st oil crisis Measures for carcinogenicity by VCM '46 '47 '48 '49 '5 '51 '52 '53 '54 '55 '56 '57 '58 '59 '6 '61 '62 '63 '64 '65 66 '67 '68 '69 '7 '71 '72 '73 '74 '75 (1) Initial phase (1937~1951) In 1941, Nippon Chisso Hiryo K.K. produced the first PVC in Japan via emulsion polymerization using VCM made of acetylene synthesis method, and marketed with the trade name "Nipolit". However, the production was terminated in the post World War II period. In 1946, the Yokohama Rubber Co., Ltd and Tokyo Shibaura Electric Co., Ltd (today s Toshiba) restarted the test production of PVC for electric cable covering, and 18 companies subsequently started commercial production of PVC by Industrial production of PVC applications was achieved in succession, such as general purpose films in 1947, synthetic leather in 1949, agro-films and rigid PVC pipes in (2) Development phase (1952~1965) In 1952, Zeon Corporation (former Geon) imported the suspension polymerization process from B.F. Goodrich Chemicals Co. of the U.S. and started commercial production. In 1953, the PVC Association of Japan was established. Suspension polymerization process replaced the emulsion polymerization process as the mainstream production method, which initiated the full-fledged industrial production of PVC in Japan. In those days, VCM, which is the raw material of PVC, was produced from acetylene produced by carbide, and chlorine produced as by-product from electrolysis upon caustic soda production, or as by-product from potassium chloride production. PVC products were highlighted as epoch making 8

3 Production Volume the PVC Industry Association the PVC Industry Association VEC reform phase (intensive production, new application development) Restructuring and counter-environmental issues phase The 2nd oil crisis Measures for structural reform Establishment of four joint sales companies Countermeasures for dioxins issues Recession caused by the strong yen Production facility closedown (45 thousand tons : 22%) Production broke 2 million ton mark Innovation to polymerization processes Establishment of Japan PVC Recycle Promoting Council Break up of the joint sales companies and reorganization Promulgation of Container and Packaging Recycling Law Establishment of Japan PVC Environmental Affairs Council (JPEC) Hollowing out of the industry The Heisei recession Pilot study on feedstock for blast furnaces '76 '77 '78 '79 '8 '81 '82 '83 '84 '85 '86 '87 '88 '89 '9 '91 '92 '93 '94 '95 '96 '97 '98 '99 ' '1 '2 '3 '4 '5 '6 '7 innovations previously unheard of, and a series of exhibitions were held from 1954 at major commercial facilities such as Nihonbashi Shirokiya department store, Kintetsu department store, and Ohtemachi Sangyo Kaikan. In addition to consumer products such as synthetic leather shoes, watchstraps and handbags, industrial products such as water pipes, cable coverings and agro-films drew the attention of citizens and industries alike. Subsequently, construction material applications expanded to include corrugated boards, flooring tiles etc. In 1959, Japan became the second largest PVC producer country in the world with 179, tons/year, exceeding production in the UK. As a result, securing chlorine and hydrocarbon sources became an impending issue in Japan, and the Japanese PVC industry started to study on possible raw material switchovers and dispatched survey teams to Europe. In 1963, Kaneka Corporation imported the "EDC process" for VCM manufacturing from UCC of the U.S. In 1965, Mitsubishi Monsanto Kasei Co., imported the "oxychlorination VCM production process" from Monsanto, U.S. Subsequently, several manufacturers started to use this production process, forming mass production systems for PVC as a petrochemical product. As a result of increased PVC production, the demand for chlorine exceeded that for caustic soda in 1965, and this trend continues today. 81

4 CHAPTER 6 : BRIEF HISTORY AND REGARDING THE JAPANESE PVC INDUSTRY (3) Boom phase (1966~1974) In 1966, the Ministry of International Trade and Industry (MITI, METI at present) announced its VCM center plan. Two years later, Kashima VCM center which was jointly established by Shin-Etsu Chemical Co. and Kaneka Corporation etc. started up in 1968, accelerating the establishment of large-scale production facilities. In 1969, PVC production in Japan exceeded one million tons for the first time. In November 197, disposal issues of PVC waste were taken up at the regular Diet session ( Pollution Diet ). The Japanese PVC industry had jointly established a "PVC waste disposal measures conference" with related PVC converting industries in April 197, establishing systems to cope with the situation by the industry as a whole. In 1971, "situation and measures to deal with plastic waste issues" was prepared and distributed to appeal to various public and private sector organizations. In the same year, the PVC Industry established the "plastic waste disposal research association" (the present Plastic Waste Management Institute, PWMI) jointly with the Japan Petrochemical Industry Association and the Japan Plastic Industry Federation, to cope with waste disposal issues. In 1972, "Japan PVC Industry Association" was formed, and "VCM conference" was merged to it. Along with the Japanese economic boom, demands for PVC and VCM grew largely, and MITI made a request to the industry to secure supply at the time of the First Oil Crisis in In 1974, carcinogenicity of VCM was reported in the U.S. Our association established voluntary standards for the working environment of VCM production plants. Fig. 6-2 Transition of PVC production (1945~27, calendar year) Initial phase Development phase Boom phase Structural reform phase Unit : Tons Restructuring and counter-environmental issues phase small-scale production ,493 5, ,667 16,23 21,96 32,21 55,852 18,95 91,16 179, , , ,99 941,778 1,47,78 1,162,58 1,19,269 1,79,248 1,313,98 1,459, ,16,126 1,22,588 1,26,622 1,2,322 1,581,477 1,413,191 1,15,981 1,191,828 1,4, ,24,386 1,952,2 1,94,41 2,77,418 2,223,763 2,473,235 2,67,172 2,47,391 2,466, , ,487,11 2 2,397, , ,529, ,195, , ,511, ,212, , ,634, ,147, , ,89, ,131, ,94, ,122,21 (NOTE) Figures for 1946~1951 are fiscal year (Apr-Mar) based, while the figures after 1952 are calendar year (Jan-Dec) based ,15, ,15,97 2,121,766 Source: VEC (4) Structural reform phase (1975~199) After 1975, a depression cartel was formed under guidance of MITI in order to adjust the demandsupply discrepancies due to excessive competitions and imports. At the same time, production and sales was rationalized as part of structural reform, in order to meet the requirements of sustainable growth phase and to enhance international competitive edge. In 1982, four joint sales companies were established prior to the enactment of the Law Concerning Special Measures for the Stabilization of Specified Industries. On the other hand, the production technology of the Japanese PVC Industry has been clearly established to be the highest level in the world, since PVC production processes and plants were exported, and establishment of overseas production 82

5 subsidiaries were actively deployed in the U.S., Europe and other Asian countries by Shin-Etsu Chemical Co., Tosoh Corporation, Kaneka Corporation, Tokuyama Corporation, Mitsubishi Monsanto Chemical Co. (V-Tech Corporation at present), etc. In 1983, a professor of Ehime University announced that dioxins were detected from municipal waste incinerators, which triggered the issue to become a matter of public concern. The Japanese PVC industry promptly established a "subcommittee for measures against dioxins", and in 1981 confirmed that there was no correlation between dioxins emission and the volume of PVC wastes generated. The Japanese PVC industry successfully overcame the business recession due to the strong yen which started from Partially due to joint efforts with the PVC converter industries for quality improvement, domestic PVC demand increased further in housing construction materials, automobiles and electronic products, and in 199, the domestic PVC production exceeded 2 million tons for the first time. Prior to that, "PVC Association of Japan" changed its designation to "Japan PVC Industry Association" in May (5) Restructuring and counterenvironmental issues phase (1991~27) From 1987 to 1992, attempts were made to find ways to realize a recycle oriented society, such as "The Limits to Growth" by the Club of Rome and propositions at the Rio Summit to prevent global warming. Our association established the "Japan PVC Recycle Promoting Council" jointly with PVC processor industries under the guidance from MITI in order to effectively utilize used PVC products. The council deployed various model recycling activities for rigid PVC products such as PVC bottles and egg packaging, jointly with soy sauce manufacturers and consumer s cooperative, prior to the enactment of the Container and Packaging Recycling Law in Around 1997 when PVC production in Japan peaked, PVC was suspected to cause dioxins generations upon combustion, and coupled with the endocrine disrupter issue related to phthalate plasticizers, the trend moved further towards PVC avoidance. In 1997, "Japan PVC Recycle Promoting Council" was reorganized and renamed to "Japan PVC Environmental Affairs Council (JPEC)", and besides PVC recycling they started to cover environmental issues comprehensively. Recycling of used PVC pipes initiated by Japan PVC Pipe and Fittings Association in this period showed significant progress, and sewage pipes manufactured from regenerated PVC were approved as specified items for green procurement in March 23. Along with pipes, flooring, wallcovering, spouts and window profiles were also specified to be labeled under the "Law for Promotion of Effective Utilization of Resources". The Japanese PVC industry actively backed up the efforts of these industries. In January 1998, the Japanese PVC industry established the "PVC Environmental Association" as a succeeding organization to the special committee for measures to deal with environmental issues, as measures for the PVC de-selection trend which had become critical and to bear responsibilities not only as the PVC resin industry, but also as the PVC related industries as a whole. During May of the same year, "Japan PVC Industry Association" and "PVC Environmental Association" merged to form the present "Vinyl Environmental Council (VEC)". In 1999, mass media reports on dioxins pollution in Tokorozawa, Saitama Prefecture, brought back attention on waste incineration issues, and a "campaign to ban PVC products to prevent mixing into waste streams" was launched widely, and the society s view on PVC industries as a whole became tougher. As a result of actions by the Japanese government such as legal regulations including the "Law Concerning Special Measures against Dioxins" and the "PRTR Law" in 1999, the level of dioxins emission was cut drastically. As of today, there are almost no sensational mass media reports or attacks on PVC. VEC has been promoting activities to establish the PVC industry that contributes to health and safety, having self awareness of responsibilities for safe management through "Responsible Care" and "HPV" (high production volume chemicals) by the OECD. Simultaneously, amount of export increased largely, mainly to China. In 1997, the production of PVC in Japan peaked at 2.6 million tons. On the other hand, some companies withdrew from the business due to sluggish domestic demands which reflected the long term economic recession. As of April 28 there are 1 member companies within VEC. 83

6 CHAPTER 6 : BRIEF HISTORY AND REGARDING THE JAPANESE PVC INDUSTRY (6) Our stride towards future developments In May 23, JFE Steel Corp. started its recycling tests using agro-films, pipes etc. at a 3, tons/year facility, to prepare for its full fledged industrial operation of blast furnace feedstock preparation from used PVC products. It is a new recycling system jointly developed by JFE Steel, PWMI, and VEC, with financial support from NEDO (the New Energy and Industrial Technology Development Organization). This system provides future directions to take for appropriate treatment of industrial PVC waste other than incineration. Due to concerns and misunderstandings on additives such as lead stabilizers and plasticizers used for PVC products, an increased number of companies are heading for PVC de-selection, from the health and safety standpoint. However, there are many conventional application fields where PVC is irreplaceable such as construction/ civil work materials, electrical cables, films and sheets etc. There are also new useful applications such as heat insulating window profiles, which are highly effective for reduction of CO2 emissions. The present growth of PVC in the world is proof. We firmly believe that our efforts to protect these application fields from ungrounded rumors and to make the usefulness of PVC widely known will meet the benefits of citizens and the national economy, enabling coexistence of the environment and the economy. We will have to win trust for PVC and PVC products, and cooperate with the PVC converter industries, the end users, governments and citizens to develop the appropriate waste disposal systems. Currently, three specific programs, i.e. the development of new applications to prove the serviceability of PVC, safe management and informational disclosure, and recycling systems to deal with the waste disposal issues are being implemented. 84

7 85 2. PVC Related Data , ,96 791,53 961,473 1,66,899 1,127,265 1,5,49 1,127,436 1,379,621 1,344,678 1,91,169 1,41,854 1,24,438 1,38,89 1,631,623 1,34,34 1,62,252 1,25,28 1,47,547 1,481,683 1,515,145 1,541,899 1,673,764 1,852,52 1,951,745 2,52,759 1,969,985 1,951,89 1,958,761 2,134,21 2,26,181 2,546,325 2,558,881 2,433,91 2,526,47 2,34,82 2,153,514 2,215,159 2,152,537 2,119,885 2,18,142 2,117,666 2,59, ,877 25, , , , , , ,23 77, ,917 61, ,56 553,85 688,74 852,53 638, , , , , ,41 748,459 87, ,67 1,18,394 1,44,39 953, ,462 92, ,1 982,724 1,12,481 1,51, , , , , ,587 82, , , ,463 78, ,79 167, , , ,923 31, ,582 32,85 359, ,63 326, , , , ,744 45, , , , , , ,71 489, ,12 557, ,33 559,22 545, ,72 548, ,77 587, , , , ,58 42, , , , , , , ,666 74,527 12, , , , , , ,83 116,71 121,69 117, , ,43 214,28 173,999 16, ,892 22,627 22,824 27,743 26, , ,96 3, , ,51 31, ,95 39,43 326, ,62 346, , ,393 34,4 27, , ,984 24,58 241,41 246, , , ,752 74, ,69 955, , ,77 1,12,542 1,263,788 1,17,681 1,49, , ,563 1,228,864 1,554,32 1,218,288 1,116,196 1,212,428 1,371,41 1,432,7 1,433,628 1,419,692 1,614,18 1,777,85 1,876,185 1,968,27 1,829,962 1,793,392 1,753,444 1,838,9 1,858,124 2,54,335 1,944,67 1,695,267 1,713,56 1,668,694 1,473,887 1,461,574 1,445,416 1,442,465 1,39,286 1,357,439 1,263, ,579 46,984 47,551 82, , , ,59 142,619 11,141 98,38 122,624 13,27 75,914 53,966 89,868 4,144 14,639 22,231 65,399 59,377 75, ,145 67,246 58,754 65,465 61, ,243 21,264 23,777 32, ,377 48,6 628, ,27 776, , , , ,558 66, , , , ,21 539, , ,352 1,72,438 1,122,717 1,84,216 1,155,161 1,373,929 1,26,61 1,171,879 1,48,334 1,7,477 1,282,83 1,644,17 1,258,432 1,13,835 1,234,659 1,436,89 1,491,447 1,59,481 1,544,837 1,681,426 1,836,559 1,941,65 2,29,949 1,951,25 1,994,656 1,984,221 2,141,414 2,241,51 2,534,341 2,572,323 2,422,474 2,49,11 2,386,54 2,168,451 2,24,93 2,168,974 2,13,84 2,114,275 2,124,925 2,42, ,49 1,471 18,135 25,127 19,588 38,736 73,166 45,61 6, ,15 118, ,527 68,488 94,548 81, ,92 59,319 74,94 18,678 98,914 14,578 11,64 93,978 19,921 12,16 142, ,66 118,39 92,579 85,366 14,46 116,3 12, , ,257 11,52 95,583 16,649 9,212 17,13 11,846 94, , Fig. 6-3 PVC production & shipment statistics, Japan (fiscal year) Production (%)* (%)* (%)* (%)* (%)* (%)* (%)* (%)* For rigid PVC For flexible PVC Breakdown of shipment Total shipment Year-end inventory For cable /others Domestic shipment Export Source: VEC Unit : Tons * against the previous year

8 CHAPTER 6 : BRIEF HISTORY AND REGARDING THE JAPANESE PVC INDUSTRY Fig. 6-4 Transition of raw material plastics production & ratio of general purpose plastics production <Transition of plastics production> PE (total of HD & LD) PP PVC PS (incl. ABS & AS) PET PC Other thermoplastics Thermosets Total , , ,16 5,128 1, ,429 1, ,633 7,518 2,888 1,942 2,49 2, ,47 2,43 12,63 3,342 2,721 2,41 2, ,44 1,746 14,736 Transition of plastics production PVC was the first general purpose plastic produced in Japan in 195, and full scale commercial production started soon thereafter. During the 196s, the PVC applications were extended to construction and industrial fields, and the production volume exceeded one million tons in 1969, and 2 million tons in The present production level is around 2.2 million tons, which is the third largest production next to PE and PP. PVC production in Japan is declining as with other generalpurpose plastics. Production ratio of general-purpose plastics Comparison with other generalpurpose plastic productions. The ratio of PVC production among general-purpose plastics was 31.3% in 197, and 25% during the 198s when other general-purpose plastics became well established and 21.2% in 26. Source: Plastic raw-materials production statistics, the Japan Plastics Industry Federation <Production ratio of general-purpose plastics> 12, thousand tons 1, 8, 6, 4, 2, ' ' ' ,176 2,641 2,225 1, ,376 1,271 13, ,165 2,751 2,164 1, ,47 1,261 13, '9 ' '2 '3 '4 '5 '6 Unit : 1, tons 24 3,238 2,98 2,153 1, ,528 1,31 14, ,24 3,63 2,151 1, ,556 1,286 14, ,166 3,49 2,146 1, ,568 1,276 14,5 PS (incl. ABS & AS) PVC PP PE (total of HD & LD) Fig. 6-5 Domestic shipment and exports of PVC (fiscal year) 3, thousand tons 2,5 Total shipment 2, 1,5 1, Domestic Export 5 '65 '7 '75 '8 '85 '9 '95 ' '5 The domestic shipment of PVC has the following four major peaks: 1973: About 1.26 million tons affected by the first oil crisis 1979: About 1.55 million tons affected by the second oil crisis 199: About 1.97 million tons by general growth of the domestic economy 1996: About 2.5 million tons due to increased public works Declines of domestic shipment after fiscal 199 was caused by decreased public works, collapse of the bubble economy and decreased demands in the packaging/wrapping application fields. In contrast, the export started increasing due to the sharp increased of the demand in China and others. The declines of the domestic shipment after 1997 were caused by the combined effects of the extended slump in the domestic economy, end-user industries moving abroad, and PVC de-selection trend in the packaging field. Source: VEC 86

9 Fig. 6-6 World PVC production (calendar year) PVC production in Japan decreased about.3 million tons during the 7 years from 1999 to 26. North America's production roughly levelled off, while Europe's increase was 1 million. The increase in the Asian region was the most remarkable with about 7 million tons, which was approximately a twofold increase during the same 7 years. Especially in China, further enhancement of PVC production capacity is expected with active capital investments Million tons Unit : % Asia Europe North America Year Japan North America (U.S. & Canada) Europe (incl. CIS & East Europe) Asia (except Japan) Total Japan Unit : Million tons Source: Future demand trends for global petrochemical products 27, METI Fig. 6-7 World PVC consumption (calendar year) Asia has shown the greatest growth with an annual average of about 9.2%. Among the Asian countries, China has shown a sharp increase in consumption, and there are wide varieties of applications from infrastructure related such as watersupply/ sewage pipes or electric cables, to construction materials for housing, parts for household electrical appliances, decoration films, and consumer products. The outstanding characteristic of PVC demand in Asia is window profiles. About one million tons of PVC is estimated to be used for production of window profiles in China, while about.2 million tons are estimated for the same purpose in South Korea. PVC is drawing attention as a construction material that substitutes for wood. Year Japan North America (U.S. & Canada) Europe (incl. CIS & East Europe) Asia (except Japan) Total Million tons Unit : % Asia Europe North America Japan Unit : Million tons Source: Future demand trends for global petrochemical products 27, METI 87

10 CHAPTER 6 : BRIEF HISTORY AND REGARDING THE JAPANESE PVC INDUSTRY Fig. 6-8 PVC consumption in the U.S. and Canada (calendar year) 8, thousand tons 7, 6, 5, 4, 3, 2, 1, '91 '92 '93 '94 '95 '96 '97 '98 '99 ' year Calendering Coating Extrusion (films, sheets) Injection molding Paste resin converting Compounds Export Extruded PVC products doubled in ten years from 1991 to 2 in North America. This is probably due to the fact that PVCs durability had gained credit in the construction field and demands grew for pipes, sidings, window profiles, and cable coverings. In contrast, injection molded products such as bottles and fittings, and resin for exports have both decreased. PVC consumption in North America has grown 1.6 times during the same ten years. Calendering Coating Extrusion (films, sheets) Injection molding year Total Paste resin converting Compounds Total domestic consumption Export Total shipment Flooring Total Flooring Wallcovering/Fabrics Paint Total Pipes Wires/Cables Siding Window profiles/doors Wrapping Non-wrapping Total Bottles Fittings , , , , , , , , , , , , , , , , , , , , , , , , , , , ,392 unit : thousand tons , , , , , , , , , , , ,624 NOTE: Data for the 1991~1997 period covers only the U.S., while the data after 1998 represent the total for the U.S. and Canada. NOTE: The result for 2 is tentative. Source: Modern Plastics International 88

11 Fig. 6-9 PVC Consumption in Western Europe (calendar year) 6, thousand tons 5, 4, 3, 2, 1, Bottles Films/ Sheets Injection molding Pipes/ Conduit tubes Profile extrusion Rigid products & others Synthetic leather Films/ Sheets Flooring Tubes & other extruded products Wires/Cables Flexible & others for Rigid products for Flexible products Profiles in construction applications, mainly window profiles, have grown largely. Apart from profiles, consumption for flooring, films/sheets, pipes and conduit tubes have steadily increased. Thus, PVC consumption in Western Europe is growing steadily. '91 '92 '93 '94 '95 '96 '97 '98 '99 ' year Examples of application calendar year Bottles Films/Sheets Injection molding Pipes/Conduit tubes Profile extrusion Total for rigid products Synthetic leather Films/Sheets Flooring Tubes & other extruded products Wires/Cables Total for flexible products (Adhesives, Paper coating) Total Growth (%) against the previous year , , , ,32-2.1% , , , , % , , , ,97 -.5% ,415 1, , ,77 8 5, % ,44 1, , , ,34 -.1% ,43 1,1 12 3, , ,46 2.2% ,473 1, , , ,52 1.1% unit : thousand tons ,449 1, , , , % ,46 1, , , ,77 1.2% ,53 1, , , , % Sources: Modern Plastics International 89

12 CHAPTER 6 : BRIEF HISTORY AND REGARDING THE JAPANESE PVC INDUSTRY Fig. 6-1 PVC consumption in major countries (26) Japan U.S. Canada West Europe(incl. Turkey) CIS/East Europe Middle East China Korea Taiwan India Thailand Indonesia Vietnam Malaysia Hong Kong Pakistan the Philippines Singapore Other Latin America Brazil Mexico Australia New Zealand Africa , , ,219 5,79 6,589 8,582 The world PVC consumption amounted to more than 33 million tons in 26. Some predict that "the world PVC consumption may reach 5 million tons per year in 22". This forecast is based on steady growth in major countries, mainly construction materials, and steep growth in Asia, especially in China, and also the African region. The forecast is also based on important roles expected of PVC products in various application fields, such as water supply and sewage systems; agricultural water supplies which are indispensable for the improvement of agricultural productivity through soil modification; and general industrial water supply systems, to enhance the standard of living and to protect peoples health. 2, 4, 6, 8, 1, Thousand tons Source: Future demand trends for global prtrochemical products 27, METI Fig World PVC resin demand forecast (29-212) 1999 Japan 1.73 North America 6.6 Europe (including CIS) 6.78 Asia (excluding Japan) 6.93 (Latin America, Middle East, Oceania) 3.2 Total demand forecast forecast forecast forecast Unit : Million tons Av. annual Av. annual growth rate growth rate ('99 / '6) ('6 / '12) % / yr 5. % / yr 2 Million tons '99 '6 '9 '1 '11 '12 '99 '6 '9 '1 '11 '12 '99 '6 '9 '1 '11 '12 '99 '6 '9 '1 '11 '12 '99 '6 '9 '1 '11 '12 Japan North America Europe (including CIS) Asia (excluding Japan) (Latin America, Middle East, Oceania) According to METI, the world annual average growth rate of PVC demand is projected to be 4.1% between 26 and 212. Growth in Asia is expected to be as high as 8.3% with particular leverage from China, where the growth potential for urban infrastructure products such as pipes, electric cables and PVC sashes are high. Growth in North America and Europe is expected to be about 2% respectively. Negative growth is expected in Japan affected by investment cuts in public projects and overseas transfer of PVC user industry plants. Source: Future demand trends for global prtrochemical products 27, METI 9