5 Oct 2007

COMPOSITES INDUSTRY UNDERLINES OPPORTUNITIES FOR SUSTAINABLE GROWTH

After a difficult period of no growth, composites producers are optimistic about the future. Healthy business in traditional segments like marine has brought new growth in the last two years. According to the European Composites Industry Association (EuCIA) investment in new applications and a targeted approach to new markets will make this growth sustainable.

The period 2000 to 2004 was a difficult time for the composites industry. The market was stagnant, there was no investment and every market player was fighting for volume. Added to this, other materials like thermoplastics were eating into established composites markets. Since 2005 though, the industry has seen a change in its fortunes. Traditional composites segments like marine do well in better economic times. As a result, healthy business in these sectors has brought new growth in the European composites industry of some six percent.

To sustain this growth, major players like DSM Composite Resins are now reinvesting profits. “We are investing in innovative technologies and products to open up new market segments, which will bring future growth irrespective of how well the traditional segments are doing,” says Gertjan de Koning, DSM’s Business Director Composite Resins. “We are also actively supporting the European Composite Industry Association (EuCIA), since we believe a strong industry association is crucial to create favorable conditions for growth. For example, to make engineers aware of the great benefits of composites in traditional steel applications and to make it easy for them to start designing in composites, EUCIA coordinates the setting-up of educational programs, engineering handbooks and datasets.”

EuCIA believes that measures like these and innovation that targets traditional metal markets will mean sustained growth for the industry. “The market for composites is still relatively small,” says Volker Fritz, EuCIA President. “But there’s lots of potential for composites in the steel market and that’s 2,000 times bigger. If we can use this period of growth to invest in new composite applications that replace metal and gain three percent of the steel market, our industry will more than double.”

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Notes for editors

About EuCIA

EuCIA, the European Composites Industry Association represents the European composites industry with some 15,000 Companies. EuCIA is the voice of the composites industry in Europe and concentrates on three main activities: industry platforms that promote business growth, effective lobbying related to European legislation and the development of internal and external education programs.

About DSM Composite Resins

DSM Composite Resins is part of DSM Resins, a group within the Performance Materials cluster of DSM. DSM Composite Resins is the largest producer of structural resins in Europe with a technically innovative portfolio of resins and gelcoats. The company is expanding globally, especially in China, targeting high added-value segments. Customers are served via dedicated Competence and Expertise Centers and the company owned European FRP distribution business, Euroresins. Since DSM Composite Resins is also the global market leader in Sizings & Binders, vital functional and performance components used in the production of glass fiber reinforcements, the company can claim unique competencies throughout the composites value chain.

About DSM

DSM creates innovative products and services in life sciences and materials sciences , contributing to the quality of life. DSM's products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and enjoyable way of living. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrics & electronics, life protection and housing. The company strategy, Vision 2010 - Building on Strengths , focuses on accelerating profitable and innovative growth of the company's specialties portfolio. The key drivers of this strategy are market-driven growth and innovation, an increased presence in emerging economies and operational excellence. DSM has annual sales of almost €9 billion and employs some 22,000 people worldwide. The company is headquartered in the Netherlands, with locations in Europe, Asia, the Americas, Africa and Australia. More information on DSM can be found at www.dsm.com .