Plastic Resins & Synthetic Fibers
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Industry Overview
The US plastic resins and synthetic fibers manufacturing industry consists of about 700 companies with combined annual revenue of about $95 billion. Major companies include PolyOne, DuPont, Dow Chemical, Eastman Chemical, Solutia, and BASF. The industry is highly concentrated: the top 50 companies have more than 80 percent of the market.
Competitive Landscape
Demand depends on the level of manufacture of plastic products, which is closely linked to US industrial production. Because resin manufacture is a high-volume process, the profitability of individual companies depends on operating efficiencies. Large companies have significant economies of scale in production and in the purchase of raw materials. Smaller companies can compete effectively by producing specialty resins and fibers. Many smaller companies buy commodity resins from large producers and rework them into specialty compounds. The industry is capital-intensive: average annual revenue is about $900,000 per worker.
Products, Operations & Technology
The two basic types of plastic resins are thermosets, which harden permanently after they are cured by heat, and thermoplastics, which may be hard or soft after being cured, but can be remelted or dissolved in a solvent. Thermosets include acrylics, amino resins, epoxy, unsaturated polyesters, polyurethanes and vinyl esters. Polyethylene (PE); polypropylene (PP); polyvinyl chloride (PVC); and polystyrene (PS) are themoplastics. A third type of resin, elastomers, are thermoplastics that remain elastic after being cured, such as polyurethane foam. By mixing various resins ("compounding") and adding colorants and other chemicals, companies can produce plastics with a wide range of physical and chemical properties.
Resins are made from industrial chemicals like methanol, propane, ethane, phenol, urea, and ethylene glycol, through chemical reactions that produce long molecules (polymers) with a carbon-hydrogen backbone. Although production methods vary, most resins are made by mixing chemicals in a reaction vessel ("kettle"), or a series of reaction chambers, and adding heat. Depending on how the finished product will eventually be used, the resin may be processed into chips, films, foam, powder, paste, or liquid. Resins are semifinished products that don't take on their final chemical form until they are "cured" by further treatment with air, chemicals, or heat. The curing process links the polymer molecules to create a solid plastic product.
Synthetic fibers are manufactured from plastic resins that are either melted or dissolved and then forced through small holes in a "spinneret" to create continuous filaments. In a melt-spinning operation, typically used to produce nylon and polyester, melted resin extruded through the spinneret solidifies by cooling. In dry-spinning, used to make acetate, acrylic, and spandex, resin that has been dissolved in a solvent and extruded through the spinneret is hardened by rapid evaporation of the solvent. In wet-spinning, used to make acrylic, rayon, and spandex, a dissolved resin is precipitated in a chemical wash after extrusion through the spinneret.
Manufacturing plants typically run batch operations, although foams and fibers may be produced in continuous-run operations. Most plants are highly automated. Production capacity is measured in hundreds of millions of pounds. Although the actual production of resins is relatively simple, formulating ingredients to achieve a product with particular characteristics is technically demanding. Producers typically have an engineering staff, and small companies may spend up to 10 percent of revenue on R&D.
