South Africa: Growing Importance of Plastic Products
New regulations increase the demand/IT-infrastructure is being built up
According to the prognoses of branch experts, the South African market for plastic products is going to rise by 5.0% in the coming years, roughly the same amount as the gross domestic product (GDP). Especially the strongly thriving construction sector, with estimated average growth rates of 8% until 2010, has taken over the role as the drive behind expansion. The installation of water pipe lines and cables will make sure of a strong demand for PVC. The quickest growth is taking place on the market for PP, which is replacing several traditional plastics at present.
For the time being, the per capita consumption of polymers amounts to only 39 kg/year, which is rather low in the international comparison (USA: approx. 100 kg/year). Growing competition for the providers of technical polymers is arising from the Far East, particularly from the People’s Republic of China, which is increasingly delivering end products to South Africa.
Growing Plastic Pipe Sales
Due to numerous infrastructural and building projects, the market is going to grow stronger than the GDP in the next few years. The construction of low cost houses is also driving the sales of plastic pipes over the top. It is mainly the small-diameter pipe for the transportation of water, which is required in these correlations. The most common of the utilised materials are high-density polyethylene and PVC. Experts acquainted with the market for polymer pipe lines reckon with approx. 1.5 billion Rand annually. About 15,000 t of polyethylene and approx. 5,000 t of PVC are used for pipes every year. According to the statements of association representatives, however, a surplus of plastic pipes is significant for the South African market, in spite of a growth above the average. Together, the three largest producers, DPI-Plastics, the Greek Petzetakis-Africa and Marley Pipe-Systems, hold a market share of approx. 65%.
By far the largest buyer of plastic pipes is the civil engineering branch, which is involved in all infrastructural projects. This division alone asks for round 70% of the products, we can assume that it will be the great drive behind expansion for the sector in future. The mining industries occupy the second rank with a demand of approx. 20%. Here, the plastic pipes are mainly used for transporting water and waste matter. The mining industries are gaining profit from the situation on the world markets. In South Africa and the neighbouring countries that receive products from there, numerous expanding projects are in process or will commence in the coming years. Lines of business like building construction, agricultural irrigation and telecommunication share the remaining 10% of the outlet. Within the bounds of telecommunication, the second provider of a ground-based network, having obtained a licence at the close of 2005, may well cause a stimulation of business activity.
If the required pipes are large, pure plastic pipe is rarely installed; more common is the utilisation of steel pipes with a plastic coating. An important great project providing good sales chances on the market for plastics and fittings is the so-called Vaal River Eastern Subsystem Augmentation Project (Vresap): the pipeline construction leading from the Vaal Dam to two storage lakes near Secunda, 120 km away, is estimated to cost approximately 2.5 billion Rand. It is mainly intended for securing the water supply of the power provider Eskom and the chemical enterprise Sasol. With a diameter of 1.9 m, the pipeline will most likely be completed in 2007. The provider Rand Water, responsible for the water supply of the province Gauteng, is planning on investments amounting to 2.5 billion Rand for other infrastructural projects until 2010. They include the repair and purchase of pipelines as well as the modernisation of already existing pumping stations. The largest water supplier in South Africa substantiated these measures announced in September 2005 with the immensely rising water demand, mainly caused by the mining industry, a growing urbanisation of Gauteng as a centre of population, and the increased aridity of the region in recent years.
In future, the part played by water conditioning will also be magnified, due to the sparse resources. Presently, round 16 million South Africans (36% of the total population) have no access to clean potable water. The South African Water Research Commission (WRC) is investing a remarkable part of its research funds in the development of desalination systems. Especially the cities situated in costal regions could profit from seawater desalination plants as an alternative. But previously, the enormous costs have blocked their realisation. In the opinion of the experts, a large plant could meanwhile produce one cubic meter of water for 3.70 Rand, only a few years ago, these costs were three or even four times higher. There is legitimate hope that this technology will have reached an economical degree, which would make its application in South Africa possible within the next few years.
The infrastructure for transportation and the petrochemical sector are also currently being expanded or modernised. At present, a feasibility study is in process for the extension of the 700 km long Durban-Johannesburg-Pipeline (DJP), erected in 1965, which also belongs to the planned projects. Petronet, a subsidiary company of the state-owned transportation enterprise Transnet and responsible for oil and gas transportation, have estimated that the project will cost about 2.5 billion Rand. The DJP is planned as a multi-product pipeline for conveying refinery products like petrol, diesel and kerosene from the two refineries in Durban to the province Gauteng and should be ready for service in 2010.
Cable ducts for Telecommunication in Steadily Growing Demand
South Africa’s need for IT technology is certain to be gigantic in the run-up of the Football World Championship in 2010. Particularly IT hard and software as well as transmission technique and equipment for a modern telecommunication infrastructure are called for. In view of this background, the business with plastic cable ducts will also rise immensely. Triggers for the growing demand will be investment projects from completely contrasting branches.
Sentech, for instance, the South African television broadcaster and the public service institution South African Broadcasting Corporation (SABC), are obliged to invest massively in their transmission network. Billions will have to be spent on building up the digital broadband transmission technique, for instance High-Definition-Television (HDTV). At the start of 2006, the Parliament had to admit that the currently available systems are hardly sufficient to serve all television screens of the expected 3.6 billion viewers around the world. Sentech stated that blackouts would be inevitable with the current technology, which was established in 1970.
The South African airport company ACSA is planning to invest roughly 150 million R in the own IT infrastructure. Of the costs for the construction of the Gautrain express train between Johannesburg and Pretoria (up to 20 billion R), immense amounts will also flow into information technology, i.e. the signal technique. Many hotels will provide special service for their guests, like multimedia-entertainment-systems and cable-free internet access to the rooms. And the games themselves will also demand a great deal of IT-technique just to assure smooth running. This only involves parts of the media centre equipment.
Many general tasks, which were carried out manually in former days, depend increasingly on the IT-technique. These are checkpoints at the entries to the stadium, VIP lodges and the media areas as well as the catering organisation, to mention only a few. Ticketing will also be mainly converted to IT-technique. Every stadium will be equipped with fibre-optical cables. Experts believe that large parts of the investments in IT equipment for the Football World Championship will be made in the years 2007 and 2008.
Large amounts of money will also be used for the ground-based telephone network in coming years. The state-own Telecom is still dominant at present, but competition arises from a second provider by name of SNO (Second National Operator) in South Africa. SNO, mainly conducted by the Indian Tata group, received the licence in December 2005. Rising expenditure for net expansion and modernisation can definitely be expected. Tata reckon with initial costs between 8 and 9 billion.
Source: Platicker.de
According to the prognoses of branch experts, the South African market for plastic products is going to rise by 5.0% in the coming years, roughly the same amount as the gross domestic product (GDP). Especially the strongly thriving construction sector, with estimated average growth rates of 8% until 2010, has taken over the role as the drive behind expansion. The installation of water pipe lines and cables will make sure of a strong demand for PVC. The quickest growth is taking place on the market for PP, which is replacing several traditional plastics at present.
For the time being, the per capita consumption of polymers amounts to only 39 kg/year, which is rather low in the international comparison (USA: approx. 100 kg/year). Growing competition for the providers of technical polymers is arising from the Far East, particularly from the People’s Republic of China, which is increasingly delivering end products to South Africa.
Growing Plastic Pipe Sales
Due to numerous infrastructural and building projects, the market is going to grow stronger than the GDP in the next few years. The construction of low cost houses is also driving the sales of plastic pipes over the top. It is mainly the small-diameter pipe for the transportation of water, which is required in these correlations. The most common of the utilised materials are high-density polyethylene and PVC. Experts acquainted with the market for polymer pipe lines reckon with approx. 1.5 billion Rand annually. About 15,000 t of polyethylene and approx. 5,000 t of PVC are used for pipes every year. According to the statements of association representatives, however, a surplus of plastic pipes is significant for the South African market, in spite of a growth above the average. Together, the three largest producers, DPI-Plastics, the Greek Petzetakis-Africa and Marley Pipe-Systems, hold a market share of approx. 65%.
By far the largest buyer of plastic pipes is the civil engineering branch, which is involved in all infrastructural projects. This division alone asks for round 70% of the products, we can assume that it will be the great drive behind expansion for the sector in future. The mining industries occupy the second rank with a demand of approx. 20%. Here, the plastic pipes are mainly used for transporting water and waste matter. The mining industries are gaining profit from the situation on the world markets. In South Africa and the neighbouring countries that receive products from there, numerous expanding projects are in process or will commence in the coming years. Lines of business like building construction, agricultural irrigation and telecommunication share the remaining 10% of the outlet. Within the bounds of telecommunication, the second provider of a ground-based network, having obtained a licence at the close of 2005, may well cause a stimulation of business activity.
If the required pipes are large, pure plastic pipe is rarely installed; more common is the utilisation of steel pipes with a plastic coating. An important great project providing good sales chances on the market for plastics and fittings is the so-called Vaal River Eastern Subsystem Augmentation Project (Vresap): the pipeline construction leading from the Vaal Dam to two storage lakes near Secunda, 120 km away, is estimated to cost approximately 2.5 billion Rand. It is mainly intended for securing the water supply of the power provider Eskom and the chemical enterprise Sasol. With a diameter of 1.9 m, the pipeline will most likely be completed in 2007. The provider Rand Water, responsible for the water supply of the province Gauteng, is planning on investments amounting to 2.5 billion Rand for other infrastructural projects until 2010. They include the repair and purchase of pipelines as well as the modernisation of already existing pumping stations. The largest water supplier in South Africa substantiated these measures announced in September 2005 with the immensely rising water demand, mainly caused by the mining industry, a growing urbanisation of Gauteng as a centre of population, and the increased aridity of the region in recent years.
In future, the part played by water conditioning will also be magnified, due to the sparse resources. Presently, round 16 million South Africans (36% of the total population) have no access to clean potable water. The South African Water Research Commission (WRC) is investing a remarkable part of its research funds in the development of desalination systems. Especially the cities situated in costal regions could profit from seawater desalination plants as an alternative. But previously, the enormous costs have blocked their realisation. In the opinion of the experts, a large plant could meanwhile produce one cubic meter of water for 3.70 Rand, only a few years ago, these costs were three or even four times higher. There is legitimate hope that this technology will have reached an economical degree, which would make its application in South Africa possible within the next few years.
The infrastructure for transportation and the petrochemical sector are also currently being expanded or modernised. At present, a feasibility study is in process for the extension of the 700 km long Durban-Johannesburg-Pipeline (DJP), erected in 1965, which also belongs to the planned projects. Petronet, a subsidiary company of the state-owned transportation enterprise Transnet and responsible for oil and gas transportation, have estimated that the project will cost about 2.5 billion Rand. The DJP is planned as a multi-product pipeline for conveying refinery products like petrol, diesel and kerosene from the two refineries in Durban to the province Gauteng and should be ready for service in 2010.
Cable ducts for Telecommunication in Steadily Growing Demand
South Africa’s need for IT technology is certain to be gigantic in the run-up of the Football World Championship in 2010. Particularly IT hard and software as well as transmission technique and equipment for a modern telecommunication infrastructure are called for. In view of this background, the business with plastic cable ducts will also rise immensely. Triggers for the growing demand will be investment projects from completely contrasting branches.
Sentech, for instance, the South African television broadcaster and the public service institution South African Broadcasting Corporation (SABC), are obliged to invest massively in their transmission network. Billions will have to be spent on building up the digital broadband transmission technique, for instance High-Definition-Television (HDTV). At the start of 2006, the Parliament had to admit that the currently available systems are hardly sufficient to serve all television screens of the expected 3.6 billion viewers around the world. Sentech stated that blackouts would be inevitable with the current technology, which was established in 1970.
The South African airport company ACSA is planning to invest roughly 150 million R in the own IT infrastructure. Of the costs for the construction of the Gautrain express train between Johannesburg and Pretoria (up to 20 billion R), immense amounts will also flow into information technology, i.e. the signal technique. Many hotels will provide special service for their guests, like multimedia-entertainment-systems and cable-free internet access to the rooms. And the games themselves will also demand a great deal of IT-technique just to assure smooth running. This only involves parts of the media centre equipment.
Many general tasks, which were carried out manually in former days, depend increasingly on the IT-technique. These are checkpoints at the entries to the stadium, VIP lodges and the media areas as well as the catering organisation, to mention only a few. Ticketing will also be mainly converted to IT-technique. Every stadium will be equipped with fibre-optical cables. Experts believe that large parts of the investments in IT equipment for the Football World Championship will be made in the years 2007 and 2008.
Large amounts of money will also be used for the ground-based telephone network in coming years. The state-own Telecom is still dominant at present, but competition arises from a second provider by name of SNO (Second National Operator) in South Africa. SNO, mainly conducted by the Indian Tata group, received the licence in December 2005. Rising expenditure for net expansion and modernisation can definitely be expected. Tata reckon with initial costs between 8 and 9 billion.
Source: Platicker.de
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