US polymerization catalysts demand to reach $1.1 billion in 2007.

The US market for polymerization catalysts is forecast to expand 5.7 percent annually through 2007, reaching $1.1 billion. Polymerization catalysts (including reaction initiators) are organometallic, metallic and chemical materials used to initiate and control the polymerization process for

various plastics, elastomers and specialty materials (such as plastomers). Dominated for decades by traditional Ziegler/Natta catalysts, the polymerization catalyst industry is undergoing a fundamental transformation due to the commercialization of single-site catalysts in the mid-1990s. These and other trends are presented in Polymerization Catalysts, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

The primary advantages single-site catalyst technology holds over conventional ZieglerlNatta processes are versatility and control. These processes allow an unprecedented degree of customization during polymerization. Demand for these next-generation catalysts will expand over 25 percent per year through 2007. At that time, single-site catalysts are forecast to account for nearly ten percent of the total US market for polymerization catalysts, up from four percent in 2002.

Though single-site catalysts are expanding their market share, Ziegler/Natta catalysts remain the dominant production technology for polyolefins, based on their significant cost benefits and reliable performance, particularly for large volume, low cost polymers, such as packaging resins. Steady improvements in conventional processes will mitigate the drive to switch to new systems, as polymer producers are reluctant to cannibalize their own existing product lines.

Demand for reaction initiators will increase 3.5 percent per year, with gains limited by a weak outlook for low density polyethylene, a major application for these materials, as well as the development of new polymerization processes which use less initiator. However, the market will benefit from a generally solid outlook for the plastics industry overall, particularly for such key resins as polyvinyl chloride, polystyrene and polyethylene terephthalate (PET).

Polymerization Catalysts (published 05/2003, 177 pages) is available for $3,800 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

A limited license to use or reprint information from this news release is granted to you provided attribution for the same--including, if possible, the price of the report--is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.

POLYMERIZATION CATALYSTS DEMAND

(million dollars)

                                                     % Annual Growth

Item                              1997   2002   2007   02/97   07/02

Polymerization Catalysts Demand    623    815   1075     5.5     5.7
  Ziegler/Natta Catalysts          328    435    550     5.8     4.8
  Reaction Initiators              133    160    190     3.8     3.5
  Single-Site Catalysts              6     32    105    39.8    26.8
  Other Catalysts                  156    188    230     3.8     4.1

[c] 2003 by The Freedonia Group, Inc.