REPORT | POLYMER DISTRIBUTION
Value added by distribution in the EU in 2017 (EUR million) Source: AMI Consulting 2018
higher volumes through distribution to save costs and optimise sales networks. However, these benefits are likely to accrue to the larger, pan-Euro- pean groups, presenting challenges to smaller distributors or groups. In 2017, the volume of polymers distributed in
Europe surpassed 4 million tonnes, proving that this is a healthy business in which specialties are becoming increasingly important, as they add a competitive edge. Polymer distribution accounted for revenues of above €8.2bn, with polyethylene, polypropylene and polyamide being the largest contributors to an added value of nearly €950m. The pattern of distribution sales and country
ranking by sales volumes, confirms Germany and Italy as the top two countries in Europe. These are now followed by the Benelux countries, which have seen distribution sales increasing substantially as local players who used to operate as traders have recently embraced the official distribution model. Spain ranks fourth, which corroborates the positive economic outlook the country has been recently enjoying. Resinex remains the leading distributor in
Europe, while other familiar names such as Biester-
feld and Ultrapolymers Group maintain a strong position in the market. The entrance into the official distribution market by historical traders such as Vinmar International, Bamberger Polymers and NCT Holland, represents the biggest disruption that the distribution sector has experienced over the last three years. Their presence is often seen as a threat by smaller local distributors who operate in markets where customer size varies enormously and where most clients buy small quantities. However, despite the lower prices these traders-turned-distributors offer and the disruption they may cause, they may often find it difficult to sell with success due to a lack of knowledge of local networks. Despite the difficulties intrinsic to polymer distribution — including demanding customer service and tight margins — this is still a growing market, and so is attractive to many companies. The structural changes brought by recent M&A activi- ties portray a lively business environment offering opportunities to those who are ready to grab them. During the last couple of years, industry news has been inundated by reports of strategic corporate moves. In the most remarkable deal of this year, LyondellBasell gave the industry much to talk about with its acquisition of compounder and distributor A. Schulman. While in September Univar announced the acquisition of Nexeo Solutions in a transaction worth $2bn.
Diverging directions Consolidation and rationalisation activities have certainly posed a degree of uncertainty for smaller distributors who have seen their contracts with suppliers ended in favour of larger pan-European groups. This trend has been pushing some of the smaller players in the opposite direction and, now free from the impediments of exclusivity and binding contracts, they are moving towards more fluid distribution agreements. Overall, the big
Polymer Distribution in Europe 2018
Polymer Distribution in Europe 2018 is a new detailed market report from AMI Consulting published in Septem- ber 2018. The report identifies the trends and dynamics characterising the distribution industry, while profiling the leading suppliers and polymer distributors in the region as well as their impact on industry dynamics.
Over the seven editions, this study 14 INJECTION WORLD | October 2018
has evolved into the most compre- hensive analysis of polymer distribu- tion currently available on the market and represents an essential guide for industry players as they optimise business activities and plan future investments. For further information please contact Elena Mozzato,
elena.mozzato@
ami.international, tel: +44 117 924 9442.
In addition to its consultancy work,
AMI organises annual conferences including Polymer Sourcing & Distribution 2019, which will be held in Barcelona, Spain on 13-15 May 2019 and is specifically created for companies involved at every stage of the European polymer supply chain. For more information on the event please contact Maud Holbrook,
maud.holbrook@ami.international, +44 117 314 8111.
www.injectionworld.com
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