The Composites Market

presents: The Composites Market - Applications, Developments & Trends - Hannover Messe, April 9th, 2014 page 1

Composites Germany - Members Composites Germany was founded by the four leading composites organisations in Germany in 2013 page 2

Composites: Key Technology BMW i3: IAA September 2013 Airbus A350: First Flight June 2013 Composites Material Machinery / Production Technique page 3

Worldwide Composites Production Production Volume Worldwide (2013) ~ 8,5 Mio. Tons Market shares of different fiber / material types: CRP Demand (worldwide) NRP Demand (Automotive Ind. - Europe)* GRP - Shortfiber Reinforced Thermoplastics (Europe)** GRP - Thermoset Composites (Europe) GRP - GMT/LFT (Europe) = 1.020.000 tons * Estimated 150.000 tons [use of wood & natural fibers in the European Automotive Industry 2012 80.000 tons; nova Insitute] ** estimated page 4

Herausforderungen/Chancen für Unternehmen The European GRP Market page 5

GRP Production in Europe* (kt) 1400 1200 1000 800 600 400 200 1.195 1.058 815 1.015 1.049 1.010 1.020 0 2007 2008 2009 2010 2011 2012 2013* 2013* = estimated * Europe = UK/Ireland, Belgium/Netherlands/Luxembourg, Denmark/Sweden/Norway/Finland, Spain/Portugal, Italy, France, Germany, Austria/Switzerland, Eastern Europe (Poland, the Czech Republic, Hungary, Rumania, Serbia, Croatia, Macedonia, in 2011 plus Latvia, Lithuania, Slovakia, Slovenia) page 6

GRP Production in Europe (countries) 2009 (%) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) UK / Ireland 106 130 126 134 140 Belgium / Netherlands / Luxembourg Finland / Norway / Sweden / Denmark 31 40 42 43 42 52 50 52 44 44 Spain / Portugal 188 217 200 160 152 Italy 122 154 165 152 146 France 87 116 122 117 112 Germany 118 161 172 182 192 Austria / Switzerland 13 16 17 17 17 Eastern Europe** 98 131 153 161 175 Sum: 815 1.015 1.049 1.010 1.020 2013* = estimated ** Eastern Europe = Poland, the Czech Republic, Hungary, Rumania, Serbia, Croatia, Macedonia, Latvia, Lithuania, Slovakia, Slovenia page 7

GRP Production in Europe (countries) 2009 (%) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) UK / Ireland 106 130 126 134 140 Belgium / Netherlands / Luxembourg Finland / Norway / Sweden / Denmark 31 40 42 43 42 52 50 52 44 44 Spain / Portugal 188 217 200 160 152 Italy 122 154 165 152 146 France 87 116 122 117 112 Germany 118 161 172 182 192 Austria / Switzerland 13 16 17 17 17 Eastern Europe** 98 131 153 161 175 Sum: 815 1.015 1.049 1.010 1.020 2013* = estimated ** Eastern Europe = Poland, the Czech Republic, Hungary, Rumania, Serbia, Croatia, Macedonia, Latvia, Lithuania, Slovakia, Slovenia page 8

GRP Production in Europe (countries) 2009 (%) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) UK / Ireland 106 130 126 134 140 Belgium / Netherlands / Luxembourg Finland / Norway / Sweden / Denmark 31 40 42 43 42 Bedeutung Deutschlands Importance steigt kontinuierlich!! of German market increases continuously 52 50 52 44 44 Spain / Portugal 188 217 200 160 152 Italy 122 154 165 152 146 France 87 116 122 117 112 Germany 118 [14,5%] 161 [15,9%] 172 [16,4%] 182 [18,0%] 192 [19,1%] Austria / Switzerland 13 16 17 17 17 Eastern Europe** 98 131 153 161 175 Sum: 815 1.015 1.049 1.010 1.020 2013* = estimated ** Eastern Europe = Poland, the Czech Republic, Hungary, Rumania, Serbia, Croatia, Macedonia, Latvia, Lithuania, Slovakia, Slovenia page 9

GRP Production - Europe (processes, parts) 2009 (kt) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) SMC 160 198 198 188 184 BMC 56 69 69 70 71 SMC/BMC 216 267 267 258 255 Hand lay-up 123 160 160 145 142 Spray-up 74 92 98 90 90 Open mould 197 252 258 235 232 RTM 94 113 120 120 126 Sheets 56 72 77 78 84 Pultrusion 39 47 51 47 47 Continuous processing 95 119 128 125 131 Filament winding 69 82 86 80 78 Centrifugal casting 55 66 69 67 66 Pipes and Tanks 124 148 155 147 144 GMT/LFT 75 100 105 108 114 Others 14 16 16 17 18 Sum: 815 1.015 1.049 1.010 1.020 2013* = estimated page 10

SMC/BMC Serial Production ¼ of European production volume 2009 (kt) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) SMC 160 198 198 188 184 BMC 56 69 69 70 71 SMC/BMC 216 267 267 258 255 Sum: 815 1.015 1.049 1.010 1.020 Application areas: electronic industry, automobile industry, Source: Menzolit AVK-Einführungsseminar page 11

Open Mould Handcraft Continuous loss of market share, but still important 2009 (kt) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) Hand lay-up 123 160 160 145 142 Spray-up 74 92 98 90 90 Open mould 197 252 258 235 232 Sum: 815 1.015 1.049 1.010 1.020 Application areas: pools, wind energy, boat building, mold making Source: RTM-Einführungsseminar; Büfa; Wolfangel page 12

RTM The Future?! RTM Resin Transfer Molding; More than ONE process 2009 (kt) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) RTM 94 113 120 120 126 Sum: 815 1.015 1.049 1.010 1.020 Application areas: automotive industry, boatbuilding, sports & leisure Source: RTM-Seminare; Wolfangel GmbH, BÜFA, Huntsman page 13

Continuous Composites Processing 12% of the whole european production volume 2009 (kt) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) Sheets 56 72 77 78 84 Pultrusion 39 47 51 47 47 Continuous processing 95 119 128 125 131 Sum: 815 1.015 1.049 1.010 1.020 Application areas: infrastructure, offshore, commercial vehicles Source: AVK-Seminar; TC-Domine, Butzbach GmbH Industrietore, Röchling, page 14

Thermoplastic Composites: GMT/LFT More than automotive with high future potential 2009 (kt) 2010 (kt) 2011 (kt) 2012 (kt) 2013* (kt) GMT/LFT 75 100 105 108 114 Sum: 815 1.015 1.049 1.010 1.020 Application areas: automotive, sports & leisure, customer goods Source: EATC; Bond-Laminates page 15

Thermoplastic Composites: Organosheets Pre-Impregnated semi-finished products Semi-finished material can be transformed into 3D products in cycle times of typically a minute Good mass manufacturing capability Several polymers and fibers can be used Application areas: aerospace, automotive, sports, protection Source: Bond-Laminates page 16

GRP Production 2013: Application Industries page 17

Herausforderungen/Chancen für Unternehmen The Worldwide CRP Market page 18

Production Capacity 2012 (t) [Manufacturers] The manufacturers market is continuously changing 25.000 21.100 20.000 17.600 15.000 10.000 13.900 10.200 7.200 9.000 8.500 12.000 5.000 3.200 2.000 1.800 5.000 0 Source: AVK-/CCeV-Market Report page 19

Production Capacity 2012 [by Regions] 97% of the worldwide carbon fibers are used for composites industry South Korea 5% Taiwan 8% Russia 3% Others 3% Japan 23% China 11% Europe 24% USA 23% Whole production capacity 111.500 t Source: AVK-/CCeV-Market Report page 20

Worldwide CRP Demand (kt) * = expected Source: AVK-/CCeV-Market Report page 21

Global CF-Consumption (2012) Source: AVK-/CCeV-Market Report page 22

Herausforderungen/Chancen für Unternehmen What about the Future? If I had asked people what they wanted, they would have said faster horses. Henry Ford page 23

Application Industries - Drivers Transport Esthetics/Image Lightweight potential Mechanical properties Political pressure (CO2). Sources: BMW, Airbus, Mercedes page 24

Application Industries - Drivers Electric/Electronic Mechanical properties Price & Cost Sources: EPTA, AVK page 25

Application Industries - Drivers Construction Mechanical properties Lighweight Design aspects Political pressure Sources: Alpha Ventus, Butzbach GmbH, DSM page 26

Application Industries - Drivers Sports & Leisure Esthetics/Image Mechanical properties Sources: Bond Laminates, Lamilux page 27

Application Industries - Drivers Alternative Energy Mechanical properties Political pressure Sources: EPTA, Alpha Ventus; Polytec Group page 28

Application Industries - Drivers Aerospace Mechanical properties Lighweight Design aspects Source: wikipedia page 29

To-Do s Image of composites: marketing (Industry & University) Cost reduction (Raw materials & production process) Research (across the whole value chain) Improvement of material combination methods / hybrids Bundling of general interests: speak with one-voice Source: Alpha ventus, BMW AG, SVK, AVK-Tagung Vortrag Dr. Effing, Butzbach GmbH Industrietore page 30

Contact Information: Dr. Elmar Witten Managing Director AVK Federation for Reinforced Plastics D-60329 Frankfurt am Main Phone: +49 (0) 69 / 27 10 77 0 Fax: + 49 (0) 69 / 27 10 77 10 Mail: elmar.witten@avk-tv.de Web: www.avk-tv.de page 31