According to IAL Consultants, a UK-based consulting and research company for the world’s chemical industry, Mexico and Brazil are expected to lead polyurethane production growth in Latin America in the next four years.
The total PU production in South America and Mexico is forecast at 722,590 tonnes in 2008, up from 591,070 tonnes in 2003 and 578,350 tonnes in 1998. Mexico is expected to increase its production from 155,940 tonnes in 2003 to 190,830 tonnes by 2008.
After several years of economic recession Latin America’s GDP is predicted to grow by 3.5% during 2004, producing an annualised growth rate of 4.1% in PU production alone. Despite a 10% decline in Brazil’s production of flexible foam in 2003, its overall PU output will grow due to increased automotive and refrigeration products for export markets. The rise of PU output will be to 366,880 tonnes in 2008 from 291,650 tonnes in 2003, the analysts say.
As Argentina’s economy has fared badly in recent years, its PU industry is in decline, as is the production of footwear and upholstered furniture which is said to have fallen by at least 50% in the past two years. The automotive production is currently smaller than in 1998, hence PU output is predicted to achieve only 35,980 tonnes in 2008, compared with 55,000 in 1998.
Polyurethane is used as a coating material and for the production of soles, mainly for its flexibility and abrasion-resistant properties.
