helping to support demand in the energy cable segment. For example, ABB of Sweden has recently an-
nounced plans to double capacity at its Karlskrona plant to supply the renewable energy segment. ABB won a significant order from the Dutch-German transmission grid operator TenneT to supply a high-voltage power transmission link connecting Nordergründe, an offshore North Sea wind farm, to the mainland grid in Germany. JDR Cables, with two production sites in the UK, has also benefitted from growth in the renewable energy sector and has been supplying cables for use at The London Array wind farm in the Thames Estuary.
ABB is
connecting the Nordergründe offshore wind farm to the mainland grid in Germany
for the foreseeable future, especially now that finished PVC cables are increasingly being imported into West Europe from Russia, Central Europe and even China. Polyethylene cable grades account for more than 40% of the market and overall they have fared better in the past few years. However, a number of grades within this category are experiencing mixed fortunes. Demand for conventional LDPE and cellular PE in cable produc- tion has declined, while the use of linear grades of PE and low smoke fume zero halogen materials (LSF0H) has grown very rapidly, although volumes are still relatively small. Other polyethylene materials, such as cross-linked materials, have seen steady growth, while demand for high or medium density polyethylene has been lower, reflecting some material substitution as well as market maturity. The overall effect has been for the market for polyethylene to grow relatively modestly at between 1 and 2% per year over the past decade. Polypropylene materials have experienced healthy
growth in European cable applications over recent years, although this market remains very small. PP is mainly used in fibre optic cables. The main other polymers used in cables are various types of elastomer materials and TPEs. Demand for cables has generally
been depressed in recent years because of the impact of the sovereign debt crisis in Europe which has seen massive cutbacks in infrastructure projects. However, there remain pockets of new development helping to drive the market. The need for renewable energy sources, particularly investment in wind farms, including offshore facilities, is
14 COMPOUNDING WORLD | June 2012
Distribution of the market In terms of polymer consumption, the German and Italian cable industries still lead the way with demand of 15% and 14% respectively. The gap between the two countries seems to have closed up as the European market leader, Prysmian, has consolidated its produc- tion in Italy with the acquisition of the plants operated by the Dutch group Draka and the closure of its plant in Livorno Ferraris. Europe’s traditional industrial powerhouses - Germany, France and Spain - still make up the lion’s share of the market. The demand of polymers for cable in Scandinavia remains very strong thanks to the developments in the renewable energy market in Northern Europe. UK has suffered most though with demand dropping by around 15% in the past four years. Whilst many European economies continue to
struggle, Poland has remained relatively untouched by the recession. Thanks to production shifting from west to east, Poland now accounts for more than 10% of European polymer consumption for cable manufactur- ing. This growth has been driven by the country’s attrac- tive overheads and labour costs, plus its local construc- tion and infrastructure market, which has been lifted by