Taiwan Adhesive Industry: Recent Market Trend and Technology Development

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Taiwan Adhesive Industry Recent Market Trend and
Technology Development

• Taiwan Synthetic Resins Adhesive Industrial
  Association
• Chairman Jerry Liao

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Outline

• Introduction
• Overview of Taiwan adhesive market
• Quick glance of Taiwan Market.
• Market Technology trends in Taiwan.
• Laws regulations update relevant to Taiwan
  adhesive Industry
• Conclusion

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Market Sale Volumes of Taiwan Adhesives
(?21.2)
(?11.4)
Sales (Unit in ton)
Sales ( Million NT)
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Material Tonnage Sales (As of Total Taiwanese
Adhesives)
Adhesive type 2009 2010 ratio of 2010 growth
Phenolic-formalde 12,800 15,710 4.3 22.73
Urea-formaldehyde 15,956 17,870 4.8 12.00
Melamine-formalde 6,140 7,070 1.9 15.15
Polyvinyl Acetate Emulsion 27,340 25,300 6.9 -7.46
EVA Emulsion 42,500 54,440 14.8 28.09
Acrylate 30,745 33,650 9.1 9.45
Polyurethane 65,735 67,230 18.2 2.27
Epoxy 67,930 81,250 22.0 19.61
CR 15,686 17,860 4.8 13.86
Hot-melt 37,160 38,240 10.4 2.91
Cyanoacrylate 3,580 4,173 1.1 16.56
Sealant 5,200 5,825 1.6 12.02
Total 330,772 368,618 100.0 11.44
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Major Applications of Different Adhesives in
Taiwan
Adhesive types Applications/ industries
Phenolic-formaldehyde Plywood, Construction
Urea-formaldehyde Plywood, Woodworking, Fiber
Melamine-formaldehyde Plywood, Fiber...
Polyvinyl Acetate Emulsion Paper, Woodworking, Packaging...
EVA Emulsion Packaging, Construction, Cement mixing
Acrylate Paper, Construction, Pressure Sensitive Adhesive
Polyurethane Fiber, Footwear, Construction
Epoxy Construction, Civil, Electronics
CR Woodworking, Automobile, Electronics, Textile, Footwear
Hot-melt Packaging, Textile, Footwear
Cyanoacrylate Medical, Household
Sealant Construction, Automobile, Yacht, Container, Glass
Source Taiwan Synthetic Resin Adhesives
Industrial Association (2010/05)
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Import Export Sale Data of Taiwan Adhesive
Industry
2009 2009 2009 2009 2009 2009 2009
Item Import Import Import Export Export Export
Item Tons Thousand NT NT/kg Tons Thousand NT NT/kg
Hot-Melt 2,016 380,549 189 24,735 2,343,285 95
EVA 3,379 114,898 34 30,009 955,863 32
Other Adhesives 19,036 8,454,622 444 88,964 8,114,969 91
Total 24,431 8,950,069 366 143,708 11,414,117 79
2010 2010 2010 2010 2010 2010 2010
Item Import Import Import Export Export Export
Item Tons Thousand NT NT/kg Tons Thousand NT NT/kg
Hot-Melt 2,578 529,885 206 25,758 2,725,204 106
EVA 4,062 149,659 37 40,485 1,159,983 29
Other Adhesives 30,235 11,584,483 383 114,573 12,440,196 109
Total 36,875 12,264,027 333 180,816 16,325,383 90
(?50.7)
(?37)
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Quick Glance of Recent Market

• Taiwan adhesive industry
• Produce 368 Thousand Tons in 2010. (?11.4
  compared with 09)
• Create sales of NT 26.4 billion in 2010 (?21.2
  compared with 09)
• Traditional adhesives appear reaching maturity in
  Taiwan evidenced by flat growth rates and
  fluctuating sales-volumes coinciding with
  economic cycles.
• In 2011, the market growth should continue but at
  a much lower rate as compared to that of 2010.
• Taiwan imported 36.8 thousand tons of adhesives
  in 2010 (?50.7 compared with 09), and most of
  items are high performance and high prices
  products.

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Development of Environmental Friendly Products
and Technologies in Taiwan

• Solvent-borne Resin
• - Solvent contentgt50wt
• - Tin, e.g. heavy metal content
• - Formaldehyde contented

?Develop green adhesives

• High solid Resin
• - Solid contentgt60wt
• Water based resin
• - VOClt25 (v/v)
• - Residue monomerlt0.1(wt)
• UV Curable resin
• - Solvent content lt10
• Formaldehydelt0.5
• Tin free

VOC
Toxicity

• 100 Solid resin/Reactive hot melt
• - no VOC
• Water base resin
• - VOClt5(v/v)
• - Residue monomerlt500ppm
• UV Curable resin
• - Solvent free
• High BRC (Bio-Renewable Carbon) Resin
• Formaldehydelt0.2 or
• Formaldehyde free
• Heavy Metal free
• BPA free

?Reduce toxic materials in adhesives
Future
Past
Present
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10/28/2011
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New Adhesive Product Development in Taiwan

• Development of high performance / value- added
  products
• More globalization to enhance market size

Underlining Technology
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10/28/2011
SourcesITRI-TCSI(2007/12) ITRI-MCL(2008/01)
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Conclusion Outlook of Taiwan Adhesive Market

• ECFA has accelerated Taiwan adhesive and
  associated industries step toward globalization.
• More adhesive companies are now focusing on green
  and high performance adhesives, such as
  waterborne PU, silicones, specialty epoxies and
  hybrid oriented products to compete in global
  market.
• Development of carbon footprint adhesives based
  on renewable materials has started, but it is
  still in infancy.
• With possible downturn of economic prospect in
  Euro Area USA, Taiwan adhesive market prospect
  in 2012 seems gloomy, especially on 3C
  applications.

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10/28/2011
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Update New Laws and Regulations on Environmental
Protection Plant Safety in Taiwan
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New Environmental Regulation-1
No Regulation Description of Modification
1 "Stationary Pollution Source Air Pollutant Emissions Standards" ( modified 2011/1/5) The revision tightens SOx discharge standard of liquid fuel combustion process from 500 ppm to 300 ppm. Currently, combustion processes generally use a low-sulfur liquid fuel to meet the standard. In the long run, to further decrease on SOx discharge, liquid fuel switching to Liquefied Petroleum Gas is preferred in the combustion process.
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New Environmental Regulation-2
No Regulation Description of Modification
2 "VOC emission control and emission standard" (modified 2011/2/1) 1. Starting from 2011Q3, emission checks of VOC equipments need to be executed quarterly by a 3rd party inspection institute. 2. If the VOC was detected with values higher than 1000 ppm in one VOC equipment, it will be considered as one leakage violation. 3. Business should take immediate corrective actions to fix the leakage violation.
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New Environmental Regulation-3
No Regulation Description of Modification
3 "Methods of banking, offsetting or trading Air pollutant reduction quantity difference authorization for Stationary Pollution Source"( modified on 2011/7/1) To control the total emission quantity of Air pollutants, the new announced regulations would severely impact how business entities in carrying out their banking, offsetting and trading depending upon their emission performances.
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New Environmental Regulation-4
No Regulation Description of Modification
4 Management of Listed Toxic Chemical Substances regulation (modified on 2011/7/20) Almost all phthalates that have not been listed before are now mandatory listed at least as Class 4 toxic chemical substances. The obligated reporting frequency of Class 4 toxic material storage and handling by entities has been shorten from annually to monthly.
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New Environmental Regulation-5
No Regulation Description of Modification
5 "Environmental Impact Assessment regulations for development activities" (modified 2011/10/7) For development activities that might generate toxic chemical substances, the developing entities need to submit health/safety risk assessment in its environmental impact assessment.
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Safety and Health Regulations-1
No regulations Descriptions
1 Regulation of Labeling and Hazard Communication of Dangerous and Harmful Materials (modified 2011/1/7) 1. The first phase of GHS listed 1062 chemical substances that should be GHS complied for Labeling and MSDS format. 2. On 2011/1/7. The second phase of GHS implementation published newly added 1089 chemical substances that should be GHS complied. 3. In total, now there are 2151 chemical substances should meet the GHS labeling system in Taiwan.
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Safety and Health Regulations-2
No regulations Descriptions
2 Announcement from Council of Labor affairs (modified 2011/1/1) 1. Council of Labor affairs (CLA) announced that all Explosion-proof equipments need to be certified by the exclusive designated institution Industrial Technology Research Institute of Taiwan (ITRI). 2. From Jan, 2012, newly equipped lighting, electric motors, and switches in explosion-proof areas should be certified by ITRI before installation.
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Safety and Health Regulations-3
No regulations Descriptions
3 Employee health protection rules Article 3 (modified 2011/1/21) 1. The modification increases the safety and med care requirements in the workplaces. Workplaces should hire qualified health care personnel based on the numbers of employees hired. 2. It further requires all health care personnel should be occupational medicine certified or trained.
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Safety and Health Regulations-4
No regulations Descriptions
4 Employee health protection rules Article 8 (modified 2011/1/21) 1. The modification requires business entities to correlate employees' health and workplace risks. If a negative correlations found, business entities should take all necessary measures to lower workplace risks. 2. Business entities need to monitor the high-risked employees' health status and take improvement measures.
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Summary in Law Regulations

• EIA (Environmental Impact Assessment) process
  makes manufacturers more tedious to establish new
  adhesive production facilities in Taiwan than
  before.
• New environmental regulations of manufacturing
  would raise the cost of products in Taiwan.
• Stricter Control of all toxic materials reflects
  high public concerns on Health/Safety of workers
  consumers. also implies raising cost.

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• Thank You for Your
• Attention
• Taiwan Synthetic Resins Adhesives Industrial
  Association
• Address 3F.-6, No.14, Ln. 609, Sec. 5,
• Chongxin Rd., Sanchong
  Dist., New
• Taipei City 241, Taiwan
  (R.O.C.)
• Phone[phone]
• Fax [phone]
• E-mail adhesive_at_ms39.hinet.net

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Appendices