Carbon Black Market Growth to Remain Steady Due to Sustained Demand From Key End-User Industries

    LONDON, August 1 /PRNewswire/ -- Carbon black manufacturers in Europe
 are gearing up to meet one of their biggest challenges as key end-user
 industries of this material increasingly shift their production facilities
 from western Europe to the comparatively low-cost central and eastern
 Europe (CEE) region. The task of transporting carbon black from existing
 manufacturing plants in western Europe to end users' facilities in eastern
 Europe is both expensive and uneconomical, creating enormous difficulties
 for manufacturers.
     "Carbon black manufacturers are feeling increasing pressure to maintain
 a presence in these regions, and this is driving some of them to invest in
 the CEE regions to continue supplying to existing key clients while
 attracting new business," remarks Frost & Sullivan Senior .Research Analyst
 Mahesh Kumar S. "While this may be feasible for larger and well-established
 participants, smaller companies will find it difficult to compete under
 such conditions."
     New analysis from Frost & Sullivan ( http://www.chemicals.frost.com),
 European Markets for Carbon Black, reveals that these markets earned
 revenues of EUR1,178.8 million in 2006 and estimates this to reach
 EUR1,938.0 million in 2013.
     If you are interested in a virtual brochure, which provides
 manufacturers, end users and other industry participants with an overview
 of the latest analysis of European Markets for Carbon Black, then send an
 e-mail to Vanessa Quezada, Corporate Communications, at
 vanessa.quezada@frost.com with your full name, company name, title,
 telephone number and e-mail address. An overview will be sent to you via
 e-mail upon receipt of the above information.
     Shifting to low-cost regions or investing in new facilities could give
 manufacturers a strong advantage in terms of proximity to key markets,
 helping them target existing and emerging markets. Such a move could also
 provide logistical benefits in terms of enabling them to identify new
 markets to cater to in the future.
     While shifting to low-cost regions may bring short term benefits,
 carbon black manufacturers are likely to continue to depend on western
 European countries for the majority of their business. However, stable
 demand from end-user industries, especially tyre manufacturers, will
 continue to sustain market growth. This segment is the largest consumer of
 carbon black, accounting for almost 65 percent of the total European
 market.
     "Steady demand from key end-user industries continues to provide
 sustainable business options for active carbon black manufacturers," says
 Kumar. "Growth in automobile demand and the subsequent increase in tyre
 manufacturing provide reasonable scope for increase in volume consumption,
 while speciality applications are likely to yield higher profit margins."
     However, rising prices of crude oil derivatives present a major
 challenge since carbon black production is highly dependent on these raw
 materials. Increasing prices have not only affected the distribution chain,
 but has also eaten into manufacturers' potential for profits, obliging them
 to adopt cost-cutting strategies to sustain business.
     "Investment in new technology, minimizing distribution costs and early
 identification of key specialty application markets can help carbon black
 manufacturers compete at sustainable levels," concludes Kumar. "Reducing
 dependence on a few end users by widening their product portfolios may also
 provide an advantage over competitors."
     European Markets for Carbon Black, part of the Chemicals and Materials
 Growth Partnership Service program, provides an overview of market dynamics
 and revenues, along with a complete analysis of key market drivers,
 restraints and trends faced in the United Kingdom, Germany, France, Italy,
 Benelux, Spain and Scandinavia. This research service also offers strategic
 recommendations to address the main challenges facing the market.
 Interviews with the press are available.
     Frost & Sullivan, a global growth consulting company, has been
 partnering with clients to support the development of innovative strategies
 for more than 40 years. The company's industry expertise integrates growth
 consulting, growth partnership services and corporate management training
 to identify and develop opportunities. Frost & Sullivan serves an extensive
 clientele that includes Global 1000 companies, emerging companies and the
 investment community by providing comprehensive industry coverage that
 reflects a unique global perspective, and combines ongoing analysis of
 markets, technologies, econometrics and demographics. For more information,
 visit http://www.frost.com.
     European Markets for Carbon Black
     M0F5
 
     Contact:
 
     Vanessa Quezada
     Corporate Communications - North America & Europe
     P: +1-210-477-8427
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SOURCE Frost & Sullivan

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