A leading Brazilian producer of polypropylene compounds is continuing to expand its capacity on the back of the country's rapidly growing auto industry. PPH Advanced Polymers, a division of resin producer PPH Cia. Industrial de Polipropileno, doubled PP compound capacity at its single plant at Triunfo in southern Brazil to 44 million pounds per year last year.
In September another Werner & Pfleiderer compounding extrusion line, with a capacity of about 17.6 million pounds per year, will start, representing a $3 million investment, said divisional director Adauto Marcondes Freire Jr. Seventy-five percent of the firm's output is devoted to Brazil's automobile sector. PPH Advanced Polymers also intends to build a 44 million-pound-per-year compounding plant in 1996 in SÃo Paulo, Brazil.
The new $20 million plant will be sited within reach of the major car plants of General Motors, Volkswagen, Ford and Fiat. No site has been confirmed yet, said Freire, but it almost certainly will include three compounding extruders.
``The scenario for the automobile industry for the next five years is tremendous. We believe that the market for PP compounds for automobiles will grow 50 percent by the year 2000,'' Freire said.
He said auto sector growth also will be about 50 percent.
PPH, part of the big Salvador, Brazil-based conglomerate Odebrecht, claims to hold a 65 percent share of the total Brazilian PP compound market. PP dominates a national plastics compounding market estimated at 66 million pounds in 1993.
PPH Advanced Polymers benefits from PPH's 661.3 million pound-per-year PP facility, which consists of two plants, one using Himont's Spheripol system.
PPH makes a special bumper grade of PP that does not require the addition of rubber and a special dashboard grade of PP copolymer with high ethylene levels, Freire said.
The division is diversifying into linear low density polyethylene and LDPE compounds for jacketing for wire and cable and ethylene vinyl acetate for injection molding of shoe parts.