BLOW-MOULDED HDPE BULK CONTAINERS
Up to 5m IBCs world-wide / Rainwater and drainage containers in demand / Deep slump for fuel oil containers / US market good for new products / Wall thickness control saves weight
Some 30 years ago, Germany was the originator and pioneer of blow-moulded bulk containers. These tanks, which typically contain more than 400 litres, are now produced all over the world. The most interesting market development in terms of quantity has taken place in intermediate bulk containers (IBCs), transport packaging usually containing 1,000 litres of liquid. Made from a combination of materials, such containers are referred to as composite IBCs. The blow-moulded inner container is made of HDPE and inserted into a galvanised steel sheet grid, which is tightly attached to a pallet made of wood, steel or plastic. “Intermediate bulk” refers to a volume of between 400 litres and 3,000 litres. Smaller volumes are transported in barrels or canisters, while larger volumes are transported in road tankers.
The success of IBCs is due to the advantages they present in technical applications as compared with steel and plastic barrels. At present there are at least ten independent systems, and producers will take them back at no extra cost. From 2003 on, the use of reconditioned IBCs, namely those that have been cleaned, repaired or even fitted with a new inner container, will be regulated by standard UN guidelines.
The IBC market is vast. Cautious estimates suggest an annual production volume of 3.5m IBCs worldwide. Optimistic analyses even suggest annual production volume of 5m. Those close to the market say that at least 40 blow-moulding machines are dedicated to the production of IBCs, which means that worldwide production must be at least 4m per year. The estimates differ because of two unknown factors. Firstly, the Asian market, which has not yet been fully exploited, but which is experiencing the highest growth, of around 20% a year, currently is largely focused on barrels. Secondly, depending on the region, the number may also include reconditioned products. The European market in general is believed to have a consumption of 2.8m IBCs per year and a growth rate of 7-10%. The US market has an estimated consumption of 0.8m, with a clear double-digit growth rate. The market for reconditioned containers in the US, thanks mainly to the use of trip-lease systems, has the same dimensions.
Despite the good growth rates, Veit Enders, marketing director for Europe at Schütz GmbH & Co KGaA (D-56242 Selters; www.schuetz.de), market leader with currently 18 production sites, says price pressure in Europe is his greatest worry. Some suppliers base their success only on keeping prices low, he claims. Generally, the high raw material prices cannot be passed on to customers, which is why the weight of an inner container for shipping dangerous goods today may not exceed 16 kg.
According to Jörg Schneider, commercial director of Werit Kunststoffwerke GmbH (D-57610 Altenkirchen; www.werit.de), 20% of IBC products will be used with plastic pallets in the future. Additionally, he expects an increase in demand for low-cost containers. In the area of technological improvements, inner containers with antistatic properties have remained a central focus of interest, with each supplier working on a different concept. Many customers are growing tired of the confusion and, for their part, are demanding a better product – at the same price as the standard container, of course.
At present, the US market is experiencing a new trend. In North America, 400,000 septic tanks are being built or overhauled. Many rural areas especially in the midwest, in Florida or along the Great Lakes, are not yet linked to municipal sewage systems. The primitive treatment of raw sewage from existing tanks, most with a three-chamber system made of concrete, is far from adequate. New European systems with blow-moulded tanks are as yet more expensive but as a package including air inlets, filters, pumps, etc. they could meet the increasingly strict environmental standards for sewage treatment gradually being implemented in the US. In Europe, they have been used for some time. The largest market is France, followed by Poland.
Along the same lines, rainwater collection tanks used for feeding toilet flush caverns are becoming increasingly popular, due to high fees for wastewater and surface water.
The success of blow-moulded fuel oil tanks in recent years seems to have come to an end. Suppliers lament a market slump of 40%. The reason for this sharp decline lies in the disappointing construction market in Germany and the tough competition from French suppliers of cheap electricity as an alternative energy source. Or it might just be that the life cycle of this particular product has come to an end. A stronger focus on the US market could be a new chance for suppliers.
For several years, the German companies Roth-Werke GmbH (D-35232 Buchenau; www.roth-werke.de) and Dehoust GmbH (D-69169 Leimen; www.dehoust.de) have supplied double-walled tanks with inner containers enclosed by a leakage-proof steel exterior layer. This construction complies with the provisional fire protection regulation SU 2258. The market for this product is estimated at 500,000 units annually. The hardest job is convincing US customers that the initial cost for this special tank, higher than that of conventional steel tanks, is worth it. The higher initial investment will be amortised in around ten years, or at the latest when the first repairs have to be carried out on a corroded steel tank.
According to Michael Pappert, marketing director at SIG Blowtec GmbH (D-53229 Bonn; www.sigplastics.com), modern large-size blow moulding lines should operate with reduced mechanical down times, thus increasing production speed. Procedures such as die changes could be speeded up by the use of special bayonet locks. As modern lines are fitted to suit the production of different sizes, evenly distributed clamp forces are of crucial importance. This is achieved with electric-hydraulic hybrid drives with a bayonet locking mechanism. A new wall thickness control system could improve containers by reducing their weight without impairing their quality. This system involves automatic weighing of top flash, bottom flash and the container itself within the machine. An electrical control unit ensures constant wall-thickness positions, particularly in 90 transition areas.
The success of IBCs is due to the advantages they present in technical applications as compared with steel and plastic barrels. At present there are at least ten independent systems, and producers will take them back at no extra cost. From 2003 on, the use of reconditioned IBCs, namely those that have been cleaned, repaired or even fitted with a new inner container, will be regulated by standard UN guidelines.
The IBC market is vast. Cautious estimates suggest an annual production volume of 3.5m IBCs worldwide. Optimistic analyses even suggest annual production volume of 5m. Those close to the market say that at least 40 blow-moulding machines are dedicated to the production of IBCs, which means that worldwide production must be at least 4m per year. The estimates differ because of two unknown factors. Firstly, the Asian market, which has not yet been fully exploited, but which is experiencing the highest growth, of around 20% a year, currently is largely focused on barrels. Secondly, depending on the region, the number may also include reconditioned products. The European market in general is believed to have a consumption of 2.8m IBCs per year and a growth rate of 7-10%. The US market has an estimated consumption of 0.8m, with a clear double-digit growth rate. The market for reconditioned containers in the US, thanks mainly to the use of trip-lease systems, has the same dimensions.
Despite the good growth rates, Veit Enders, marketing director for Europe at Schütz GmbH & Co KGaA (D-56242 Selters; www.schuetz.de), market leader with currently 18 production sites, says price pressure in Europe is his greatest worry. Some suppliers base their success only on keeping prices low, he claims. Generally, the high raw material prices cannot be passed on to customers, which is why the weight of an inner container for shipping dangerous goods today may not exceed 16 kg.
According to Jörg Schneider, commercial director of Werit Kunststoffwerke GmbH (D-57610 Altenkirchen; www.werit.de), 20% of IBC products will be used with plastic pallets in the future. Additionally, he expects an increase in demand for low-cost containers. In the area of technological improvements, inner containers with antistatic properties have remained a central focus of interest, with each supplier working on a different concept. Many customers are growing tired of the confusion and, for their part, are demanding a better product – at the same price as the standard container, of course.
At present, the US market is experiencing a new trend. In North America, 400,000 septic tanks are being built or overhauled. Many rural areas especially in the midwest, in Florida or along the Great Lakes, are not yet linked to municipal sewage systems. The primitive treatment of raw sewage from existing tanks, most with a three-chamber system made of concrete, is far from adequate. New European systems with blow-moulded tanks are as yet more expensive but as a package including air inlets, filters, pumps, etc. they could meet the increasingly strict environmental standards for sewage treatment gradually being implemented in the US. In Europe, they have been used for some time. The largest market is France, followed by Poland.
Along the same lines, rainwater collection tanks used for feeding toilet flush caverns are becoming increasingly popular, due to high fees for wastewater and surface water.
The success of blow-moulded fuel oil tanks in recent years seems to have come to an end. Suppliers lament a market slump of 40%. The reason for this sharp decline lies in the disappointing construction market in Germany and the tough competition from French suppliers of cheap electricity as an alternative energy source. Or it might just be that the life cycle of this particular product has come to an end. A stronger focus on the US market could be a new chance for suppliers.
For several years, the German companies Roth-Werke GmbH (D-35232 Buchenau; www.roth-werke.de) and Dehoust GmbH (D-69169 Leimen; www.dehoust.de) have supplied double-walled tanks with inner containers enclosed by a leakage-proof steel exterior layer. This construction complies with the provisional fire protection regulation SU 2258. The market for this product is estimated at 500,000 units annually. The hardest job is convincing US customers that the initial cost for this special tank, higher than that of conventional steel tanks, is worth it. The higher initial investment will be amortised in around ten years, or at the latest when the first repairs have to be carried out on a corroded steel tank.
According to Michael Pappert, marketing director at SIG Blowtec GmbH (D-53229 Bonn; www.sigplastics.com), modern large-size blow moulding lines should operate with reduced mechanical down times, thus increasing production speed. Procedures such as die changes could be speeded up by the use of special bayonet locks. As modern lines are fitted to suit the production of different sizes, evenly distributed clamp forces are of crucial importance. This is achieved with electric-hydraulic hybrid drives with a bayonet locking mechanism. A new wall thickness control system could improve containers by reducing their weight without impairing their quality. This system involves automatic weighing of top flash, bottom flash and the container itself within the machine. An electrical control unit ensures constant wall-thickness positions, particularly in 90 transition areas.
30.08.2001 Plasteurope.com [16501]
Published on 30.08.2001