NATURAL & WOOD FIBER COMPOSITES

February 27, 2002

Volume I, Number 2

Automakers Driving Use of Natural Fibers

Inside this Issue...

Natural fiber composites see
growing use in autos
Page 2
Auto build rates expected to
rebound in 2002
Page 2
EPA and wood treaters agree to
eliminate CCA
Page 3
Retailers prepared to sell
alternative materials
Page 3
Treaters ready to switch to CCA
alternatives
Page 4
Marth starts second wood fiber
plant
Page 4
News from the International
Builders Show
Page 5
AERT secures Lowes decking
business
Page 6
Events calendar

Page 6

Principia Partners completes

study of additives
Page 7

In the next Issue...

Additives suppliers deliver
innovation to boost
performance and lower cost...
Housing starts and the impact
on demand for wood
composites...
Natural and wood fiber
composites expanding into
outdoor living accessories...

Increasingly Replacing Mineral and Glass Polypropylene

The use of natural fiber composites in automobiles is not new-Henry Ford
began using the materials in interior applications in the early 1930s. Today,
automotive OEMs and the major Tier 1 producers are working hard to harness
the advantages that natural fibers offer and put them to new uses.
Natural fiber-based polymer composites are proving to offer much more than a
means for automakers to demonstrate the use of eco-friendly materials. They
are realizing the added benefits of weight reduction, while offering good
mechanical properties previously seen only in mineral-filled plastics or glass
fiber-reinforced composites. The natural materials are delivering as much as
25% improvement in strength and flex modulus compared to some of the
incumbents used over the past 20 years.
Demand for natural fiber composites in the transportation market has increased
from 6 million lb in 1998 to nearly double the volume in 2001. Principia
Partners projects that the demand will increase to 32 million lb by 2003 as
more car platforms implement the use of parts designed in the late 1990s.
Parts that will experience the most growth in usage of these materials include
instrument panels, door panels, boot
liners, parcel shelves, dashboards and
other interior trim. Designers are also
beginning to work on exterior parts
for underhood and underbody of the
car. For example, DaimlerChrysler
will equip the new Mercedes-Benz
Travego travel coach with a natural
fiber-reinforced engine and
transmission cover as standard
equipment, the first natural fiberreinforced exterior vehicle component
to go into production.
The choice and preference of natural fibers differs somewhat among the
automakers. However, all automakers are investigating the advantages and
disadvantages of these materials. Ford has focused its work on bast fibers
including hemp, jute, ramie, and flax. DaimlerChrysler has focused its efforts
on flax and sisal fiber in polyurethane resins. A continued concern is the
variation in material consistency. New fiber processing technology to
minimize the variation continues to be developed.
Next-generation development goals will drive the use of co-mingled fiber
systems. Natural fibers will be used in conjunction with glass and other
synthetics to tune the thermal and acoustic performance of interior parts.
Forecasts indicate that vehicles made in the U.S. in model year 2006 will
consume 50 million lb of natural fiber composites.

COPYRIGHT 2002 PRINCIPIA PARTNERS

Vol. 1, No. 2/Page 2

NATURAL & WOOD FIBER COMPOSITES

Auto Industry News

Auto Parts Use Natural Solution
Strong Growth Expected to Continue in 2002
Leading parts producers are excited about the strong
automotive sales forecast and the greater number of
programs implementing natural fiber composites.
Flexform Technologies (Elkhart, IN), formerly Kafus
Bio-Composites, a leading producer of composite sheet
experienced significant growth in 2001, with sales
doubling since 2000. It expects additional growth of
75% in 2002. Flexform is in the process of expanding
its plant from the original 55,000 SF to nearly 150,000
SF in 2002. The greater manufacturing capability will
enable it to support and grow its programs with leading
interior parts manufacturers like Findlay, JCI, and
Visteon. The company is working with Delphi and
Japanese and European Transplant suppliers as well.
JCI (Holland, MI) purchases sheets of long fiber hemp
and kenaf reinforced PP which it uses to compression
mold interior parts. Larry Cross, JCIs Sales Manager
says, The use of natural fiber composites in DaimlerChryslers 2001 Sebring convertible has been a
successful program as a door trim panel part. This
success has lead us to using the material in instrument
panel parts for the GM Saturn 2002 SUV..
JCI also continues to work with wood fiber composites
in its Battle Creek, MI facility for parts including
purse/map shelves and door trim. Its joint venture
company with Toyota, Trim Masters (Harrodsburg, KY)
works with both wood and natural fiber based products.
Mr. Cross states, No new wood fiber composite
programs are underway, but evaluation in other natural
fiber composite parts for various automakers is ongoing
at both the MI and KY facilities.

NATURAL & WOOD FIBER COMPOSITES

For Subscription or Editorial inquiries:
James T. Morton, Editor
P.O. Box 611
Exton, PA 19341
717-741-3565; 484-214-0172 (Fax);
woodnews@principiaconsulting.com
Natural & Wood Fiber Composites is published 12 times a
year by Principia Partners. World rate is US$700; discount
available for electronic delivery. A subscription entitles
readers to share this newsletter with any colleagues at the
same physical address. Please contact publisher for
additional off-site subscriptions.
Publisher and Editor-in-chief James Morton
Copyright 2002 Principia Partners All Rights Reserved.
www.principiaconsulting.com

February 27, 2002

Harry Hickey, Flexforms Sales and Marketing

Manager, states Our growth has required us to obtain
kenaf fiber from crop fields outside of Texas. We have
recently secured additional crop fields in North
Carolina.
Flexform is remaining focused at this time on kenaf and
hemp. It has not commercialized flax fiber, but
periodically will use jute fiber. The company has also
begun to introduce compounded sheet for exterior
panels and other parts for the RV and furniture parts
industries.
Flexform: Harry Hickey, 574/295-3777
JCI: Larry Cross, 616/392-5151

Automakers Cautiously Optimistic

2002 Sales Rebounding
GM and Ford are raising U.S. automotive sales forecasts
for 2002 on the strength of continuing consumer
confidence. Economists from General Motors and Ford
are optimistic that the recession is over. G. Mustafa
Mohatarem, GMs chief economist says, We clearly
seem to have a global recovery under way with the
United States leading. Economic indicators suggest the
developing strength of the U.S. economy can be
sustained throughout calender year 2002.
Overall, the Big 3 producers are increasing their industry
sales forecasts to 15.7 to 15.8 million light vehicles.
This revised forecast is 1 million vehicles greater than
the 14.7 million level expected in November.
In contrast, Japans new vehicle sales have continued to
experience a weak start in 2002. Japans shaky
consumer confidence and high unemployment (highest
in 45 years) are reflected in poor domestic sales by 4 of
the 5 automakers. Honda is the only strong gainer, with
a nearly 15% rise in Japanese sales in January.
After fairing well in 2001, new vehicle sales have
experienced drop in Western Europe, mainly weighed
down by weakness in Germany and Italy. However,
automakers in this region remain bullish about the
expected years sales reaching at least 15.5 million units.
Southeast Asia remains a bright star for continued
growth. New vehicle sales in the four largest markets of
Southeast Asia freached a record 2001 level of nearly
1.1 million units.
The continued strength of the global automotive industry
will positively impact the demand for natural-fiber
composites.
GM: G. Mustafa Mohaterem, 313/556-5000

COPYRIGHT 2002 PRINCIPIA PARTNERS

February 27, 2002

NATURAL & WOOD FIBER COMPOSITES

Regulatory/Testing
EPA to Amend Registration for CCA
Alternatives to be Phased in through Dec 2003
Early this month, the three domestic manufacturers of
chromated copper arsenate (CCA) requested the EPA to
modify their materials registrations to exclude many
residential applications of CCA-treated wood, including
playground equipment, decks, and landscape timbers.
The request came as a result of months of negotiations
between the EPA and the producers of the pesticide,
which has been used for 50 years to treat wood. The use
of CCA for these applications will be phased out by
December 31, 2003, while use for various industrial
applications, such as guardrail components, utility poles,
and pilings, will continue.
The producers initiated the talks in response to mounting
pressure from environmentalists who fear that the
potential for arsenic, a known human carcinogen, to
leach out from treated wood puts children at risk of
developing cancer. The EPA noted that it has not
concluded that
arsenic-treated
wood, which
typically
contains 2 lb
of CCA per
100 bd-ft,
poses
unreasonable
risks to the
public. The
hazard associated with arsenic is well known, said
Steve Johnson, head of the EPA's pesticide office. But
the issue for CCA-treated lumber is: Are children being
exposed to the materials in CCA-treated lumber? At this
point we don't know.
The agency, which banned most uses of inorganic
arsenic pesticides in 1984, will publish a preliminary
risk assessment in 2003 after it has completed testing of
the product.
The agreement applies to all forms of arsenic-containing
preservatives, including chromate copper arsenate
(CCA), ammoniacal copper arsenate (ACA) and
ammoniacal copper zinc arsenate (ACZA). CCA
represents 95% of the preservative market volume. The
recent voluntary action by CCA producers in the United
States follows similar actions in Switzerland, Vietnam
and Indonesia. Other countries have also limited the use
of CCA in treating wood, including Japan, Denmark,
Sweden, Germany, Australia and New Zealand.

Vol. 1, No. 2/Page 3

This voluntary change came after years of pressure from

the Environmental Working Group and the Healthy
Building Network to ban the use of CCA-treated wood
for playground equipment. Florida and California
legislatures have considered several bills since 2000 to
limit or ban the use of CCA-treated wood in waterfront
structures (boardwalks, sea walls, docks), playground
equipment, and park fixtures (picnic tables).
California State Senator Gloria Romero (D-Los
Angeles) has pushed for legislation that would ban all
arsenic-treated wood in California and reclassify the
lumber as a hazardous waste that must be disposed of in
special facilities. Florida State Representative Larry
Crow (R-Dunedin) filed legislation in 2001 to ban
arsenic-treated wood from playgrounds in Florida, but
the bill was killed in committee after the treated-wood,
forestry and construction industries testified against it.
Rep. Crow and the Florida Public Interest Research
Group are now jointly sponsoring billboards in the
Tampa Bay area that warn parents about CCA-treated
wood. The first billboard shows children on playground
equipment and reads Arsenic is poison.
CPSC: Ken Giles, 301/504-0990
AWPI: Mel Pine, 703/204-0500

Retailers Responding to EPA

Ready to Sell CCA Alternatives
Home Dept and Lowes are the largest retailers of CCAtreated lumber in the United States, which represents 7%
and 9% of annual revenues, respectively, for the home
centers. Home Depot and Lowe's currently sell
alternatives to CCA-treated wood alternatives, including
redwood (in select market regions) and wood composite
decking; however, the available supply of these
materials is not sufficient to replace the volume of CCAtreated wood used.
The companies will begin stocking more of the
alternatives as they become available and will stop
selling CCA-treated wood prior to the January 2004
deadline. Menards, the third largest home center chain,
has been offering an ACQ-treated product since 1998,
although the company also sells CCA-treated wood.
The phase-out is dependent on how quickly
manufacturers are able to transition their treatment
facilities, said Lowe's spokeswoman Chris Ahearn.
The problem they're going to have is getting access to a
replacement, said Gary Donnelly, president of the
National Lumber and Building Material Dealers
Association in Washington. If they stopped selling
CCA-treated lumber tomorrow, they wouldn't have
anything to replace it with.
NLBMDA: Gary Donnelly, 202-547-2230

COPYRIGHT 2002 PRINCIPIA PARTNERS

NATURAL & WOOD FIBER COMPOSITES

Vol. 1, No. 2/Page 4

February 27, 2002

Materials

Regulatory/Testing

Marth Adds New Wood Flour Facility

Shift to CCA Alternatives Underway

Capacity Reaches 45 Million lb

Marth Manufacturing Inc. (MMI; Athens, WI)
announces the initial production processing at their
state-of-the-art wood flour plant. MMI began as Marth
Wood Shaving Supply and remains a privately owned
company that has served the wood fiber market for over
40 years.

Conversion by Treaters Started in 1994

The total U.S. market for chemically treated wood for all
applications is estimated at 7 billion bd-ft in 2001, of
which an estimated 95% employs CCA. Of this total,
about 5 billion bd-ft are used in decking, railings, and
foundation beams. Only 1% is used in playground
equipment for homes, schools, and community parks.

MMI focuses on wood fiber as renewable fillers for

plastics, compounds and chemical processing. MMIs
first composites-focused facility has been in operation
since 1998. The new facility is unique in its pioneering
blending abilities for custom fiber requirements.

Two alternative pesticides are available to replace the

arsenic-based products, including ACQ (alkaline copper
quaternary) and CBA (copper boron azole). ACQ has
been used as a biocide for years in such applications as
swimming pool chemicals, hair shampoos, and soaps.
Over the past 5 years, sales of ACQ-treated wood have
held steady at 25 to 30 million bd-ft per year, while little
CBA is used for wood treatment. The cost of ACQ is
$4.50 to $5.00 a lb, or 20% higher than CCA. These
chemicals are produced by three companies in the
United States, including:

In 1998, MMI initiated its 5-year development plan for

its composites-related wood flour business. A pilot
plant for the firms high performance wood flour was set
up in 1998 at the Marathon facility. After the process
was proven, the company began to successfully market
their products. MMI then built a larger second plant in
Athens, WI about 15 miles away which opened in
December 2001 . Both plants will continue to make
wood flour for composites to ensure a reliable and
flexible supply to their customers. The total capacity of
both plants will be ramped up during 2002 to reach
about 20,000 lb an hour or 45 million lb a year. MMI
has long term supply contracts for pine and hardwood
shavings from larger lumber mills in the Northcentral
region
Tony Morice noted that Marth has no standard on-theshelf wood flour products for composites, but is
working closely with customers to develop custom wood
flour blends of different types of wood and different
mesh sizes. Morice added Our goal is to produce
mixtures of wood flour that perform best for specific
customers, given their processing equipment and
finished products.
Marth: Tony Morice, 715/842-9200 tj@marthwood.com

Check out the story on page 7 highlighting the

results of Principia Partners latest industry study
on Additives for Natural Fiber and Wood
Composites. The study of the demand for and
use of additives is now available from Principia.
For more information about this study, visit the
the following web page:
www.principiaconsulting.com/reports_woodadd.html

q Chemical Specialties (Charlotte, NC) makes CCA

and ACQ under the Preserve brand
q Arch Chemicals (Smyrna, GA) makes CCA and has
had CBA under the Wolmanized Natural Select
brand on the market since 2000
q Osmose (Montreal, PQ) which makes CCA and
ACQ under the NatureWood brand
In order to begin producing a non-arsenic alternative, the
treaters will have to clean up their facilities at a cost of
$40,000 to $200,000 depending on the number of
treatment tanks. The conversion is fairly simple. In
order to make the conversion, the treatment tank must
be completely cleaned, and piping, pumps and other
processing equipment too contaminated to be cleaned
must be replaced to eliminate any residual CCA from
the system. The system must then be tested to ensure it
as CCA free.
In addition to these capital costs, pressure treaters will
also face higher costs for treatment chemicals. ACQ is
priced 20% higher than CCA. As treaters convert to
ACQ, initial retail pricing for treated wood will be 25%
to 30% higher than CCA-treated products. However,
those treaters with significant experience with ACQ
currently market their products at just a 10% premium,
and expect the cost of the treatment chemicals to decline
as production volume increases.
About 350 plants across the country pressure-treat
lumber. A few have been using ACQ for some time.
Sunbelt Forest Products (Bartow, FL) began using ACQ

COPYRIGHT 2002 PRINCIPIA PARTNERS

NATURAL & WOOD FIBER COMPOSITES

February 27, 2002

in May 2001 at its Ocala, FL plant. This Ocala plant is

the only ACQ wood treatment facility in FL certified by
the State as CCA free. The company has also converted
50% of capacity at its Bartow, FL plant to ACQ
treatment. We've been preserving wood with ACQ
now for almost 10 months, and our customer base for
Preserve and Preserve Plus (with water repellent) has
grown dramatically over the last few months in
particular, said Carl Holland, Sunbelt Forest Products
president.
Northern Crossarms (Chippewa Falls, WI) has used
ACQ since 1994 to treat wood, and discontinued use of
CCA in 1997 due to growing public concerns about
CCA in the environment. In 1998, Northern opened a
second plant for ACQ treated wood. Patrick Bischel,
owner of Northern Crossarms, related that his firm was
a pioneer in ACQ use and is the largest and most
experience treater using ACQ today. It's been an
amazing turnaround over the last six months, Bischel
said. Because of their experience in ACQ and the
volumes produced, the cost of the ACQ-treated lumber
is only about 10% higher than CCA treated lumber.
Sunbelt: Cliff Daniels, cdaniels@sunbeltfp.com
Northern: Patrick Bische, pat@crossarm.com

Company News
From the Builders Show in Atlanta
New Products Profilerate
The show floor at the International Builders Show in
Atlanta held February 8 to 11 was the hotspot for both
longtime
exhibitors
and new
composite
producers.
The
industry is
rapidly
maturing
from a
handful of
deck
board
suppliers showing their wares only a few years ago.
Today, the material category is exploding in railing,
porches, and fencing. The producers are beginning to
talk very seriously about the inevitable expansion into
siding.
Builders and homeowners are gravitating to the category
as the proliferation of decking and outdoor accessories
based on wood composites occurs. Furthermore, the

Vol. 1, No. 2/Page 5

Environmental Protection Agencys decision about

phase out of CCA (see page 3 for further info) will
result in explosive growth.
CertainTeed announced a variety of new tools to help
contractors better serve customers of Boardwalk
composite lumber. CertainTeed has created two new
styles of composite railing assemblies which are
nationally approved for Boardwalk decks. The
company also announced the creation of its patentpending Boardwalk Deck Square. The 3-sided tool is a
straight edge, a gapping tool and a baluster spacer
combined into one.
TimberTech introduced two new colors at the show.
The new colors - Grey and Cedar- complement the
companys only current shade: Natural. Stu Kemper,
TimberTechs President, explains, We have invested in
new technology to ensure uniformity and maintain
precise color of the formula from batch to batch. Our
goal is to meet the expectations of homeowners looking
for their deck to look just like it does right after its been
installed. TimberTech is considering other colors for
release in Fall 2002.
Trex also introduced new products and profiles at the
show, including the addition of Saddle, a deep tan color
that weathers only slightly while maintaining a rich tone.
For more railing options, the company showed a
chamfered railing profile and new decorative post caps
in two classic designs. Andrew Ferrari, Executive VP,
remains very upbeat about Trexs future growth stating
that with less than 10% of the decking being woodplastic composite, the real growth still lies ahead.
Louisiana Pacific is also thrilled with the sales
performance of its WeatherBest brand of decking. The
company noted that by the end of January 2002 it had
booked sales accounting for 60% of its annual
production capacity. The company is adding extrusion
lines and blending capacity at its two locations in Selma,
AL, and Meridian, ID. The company has been
successful in providing a product that allows
reversibility in the boards pattern. One side features a
random graining pattern while the other side is a more
uniform rough-sawn look. The product will satisfy the
differing tastes of consumers and limit the product
SKUs that must be stocked.
Tendura (Troy, AL) has entered an interesting niche by
producing front porch profiles. The company is running
six lines. Ned Lawrence, National Sales Manager, says,
We are satisfying an area that has not been adequately
addressed by the suppliers competing in the decking
segment.

COPYRIGHT 2002 PRINCIPIA PARTNERS

Vol. 1, No. 2/Page 6

NATURAL & WOOD FIBER COMPOSITES

Events Calendar

February 27, 2002

Marketing

April 10-11, 4TH INTERNATIONAL WOOD AND

NATURAL FIBRE COMPOSITES SYMPOSIUM
Kassel, Germany Sponsored by the University of
Kassel, this event focuses on new applications,
production technology, and end markets for wood
composites. For info: contact Dr. Ing. A.K. Bledzki,
[43]561/804-3690, kutech@hrz.uni-kassel.de
May 14-16, WOOD-PLASTIC COMPOSITES: A
SUSTAINABLE FUTURE Vienna, Austria
Sponsored by AMI Plastics, the event will highlight all
developments in the industry. For info: visit AMI at
www.amiplastics.com
May 14-16, AUTO INTERIORS SHOW Cobo
Conference Center, Detroit, MI Sponsored by Auto
Interiors, the will include several papers on natural-fiber
composites used in automobiles. For info: visit
www.autointeriorexpo.com
May 23-24, 2002 PROGRESS IN WOOD FIBREPLASTIC COMPOSITES Toronto, ON Sponsored by
Materials & Manufacturing Ontario (MMO) and the
University of Toronto, this conference focuses on new
developments in wood composites. For registration,
program, or exhibitor info: call Valeri Iannaci at
905/823-2020 x226, viannaci@mmo.on.ca
June 26-28, PCBC 2002 - The Premier Building Show
Moscone Center, San Francisco, CA The show
attracts over 21,500 industry professionals and 625
exhibitors for 4 days of education, exhibits, and
networking. For info: visit www.pcbc.com
November 5-7, InterAUTO 2002 Cologne, Germany
Sponsored by Automotive Interiors, this conference and
exhibition will address the latest in interior materials and
design. For info: visit www.interauto.co.uk
If you would like to have your event listed on the
Wood Composites calendar, please call us at
717/741-3565 or send the information to:
woodnews@principiaconsulting.com

AERT Gets Contract with Lowe's

Weyerhaeuser Plays Distribution Role
Advanced Environmental Recycling Technologies
(AERT; Springdale, AR) announced at the International
Builders Show in Atlanta this month that it secured a
contract to sell its products nationwide through Lowe's,
the second largest home center chain in the United
States.
Lowe's has an exclusive contract to carry AERT's
ChoiceDek Premium line of deck materials, while
AERTs other decking products will continue to be
available through established dealers. Weyerhaeuser
will distribute the product to Lowe's locations around
the country. Until this agreement, Lowe's carried a few
AERT products, but only in select locations. The chain
has carried the ChoiceDek line since January, and noted
that the product will be in all of its stores by mid-March.
Joe Brooks, AERT CEO, said The contract is a major
boon for the company. Brooks went on to compare it
to the contract Tyson Foods won years ago to supply
McDonald's restaurants with chicken nuggets. This
deal with Lowe's is at least as big for us as that was for
them, Brooks said.
Also at the Builders
Show, AERT announced
a new railing system
under the ChoiceDek
brand. The new railing
system offers many a
number of novel features,
including lighted rails and
deck posts, turned
architectural spindles, a
hidden fastening system
and full decking
accessories. The railing
system will be available
nationwide to all AERT
dealers by the end of 2002.
AERT: Joe Brooks, 866-396-3737

COPYRIGHT 2002 PRINCIPIA PARTNERS

NATURAL & WOOD FIBER COMPOSITES

February 27, 2002

New Market Studies

$57 Million Market for Additives
Growth in Usage Driven by Cost Reduction
The market size for specialty additives used in natural
and wood fiber composites is 42 million lb, valued at
$57 million, in 2001 (see chart).
Demand of Specialty Additives in Natural/Wood Polymer Composites
North America, 2001

42.2 Million lb
2%
3%
4%

$57.2 Million
1%
3%

1%
4%

5%
2%
7%

3%
4%
45%

1%
4%

7%

8%

53%

16%

29%

Colorants
Lubricants
Coupling agents

Light stabilizers
Heat stabilizers
Impact modifiers

Flame retardants
Antimicrobials

CFAs
Others-a

Colorants find widespread, almost universal, usage

across all applications, and consequently represent the
single largest category of specialty additives consumed
in these composites. Inorganic and organic color
pigments accounted for 19.1 million lb valued at $30.5
million.
Lubricants ranked second with 12.3 million lb valued at
$9.3 million, primarily based on the increasing role for
stearate-based chemistry used at many composite
decking producers.
Coupling agents like maleated polyolefins are gaining
acceptance as a key chemistry to impart improved
adhesion between polymer and fiber, thus creating
greater strength of the composite. This additive
category accounted for 2.8 million lb valued at $4.5
million in 2001.
Light stabilizers find relatively limited usage today at
0.7 million lb valued at $3.9 million primarily based on
their high price even at very low loading levels.
Composite producers find the price too high to justify
using the UV protection, and question whether the
additive can properly protect color fastness over many
years. Nonetheless, increased use of UV absorbers and
hindered amines is expected, as customer expectations
for longer lasting color durability will drive future
demand.
Heat stabilizers and impact modifiers are primarily used
by the few PVC-based wood composite producers active
in the business today, and accounted for 2 million lb and
1.6 million lb, respectively in 2001.

Vol. 1, No. 2/Page 7

All other specialty additives, including antimicrobial

agents, chemical foaming agents, and flame retardants
will find greater use in the future. A significant amount
of R&D activity specifically in antimicrobials and
blowing agents is already underway at many wood fiberbased polymer composite producers, primarily for
decking and other building products.
The market for additives natural fiber and wood
composites will grow from 42 million lb, valued at
$57 million in 2001, to over 87 million lb, valued at
more than $120 million by 2006. The 16% average
annual growth rate over this five-year period exceeds the
expected rate of growth for the composite industry
overall, due to the greater usage of the materials.
Several major application areas within building
products, including decking and window/door lineals,
will use more antimicrobials to prevent mildew staining,
more chemical foaming agents for lighter weight and
thinner walls; coupling agents for superior strength by
improving the bond between polymer and fiber; and
colorants/UV stabilizers for improved color fastness.
While these additives generally add to the overall
formulation cost, the performance improvements are
deemed necessary to improve the long-term viability in
current and targeted uses.
Chemical foaming agents (CFAs) are largely
developmental at this stage. Some composite producers
are experimenting with formulations containing these
additives to reduce weight, increase yield, and provide
greater wood like attributes through the cellular
structure imparted by CFAs.
Greater color stability through improved pigment and
UV stabilizer technology, particularly for outdoor uses
such as decking, railing, and windows. Colorants are
used to provide color even to non-aesthetic composite
applications. In these cases, black is widely used, but s
range of earth tone colors (e.g., grey, brown, slate,
redwood) are also used to provide initial color for many
products.
Specialty plastics additives in composites is one of the
most dynamic segments of the plastics industry. Several
additive types, including colorants and lubricants, are
reasonably well established but other additives have
only penetrated 9% to 25% of their respective potential.
Opportunities exist for additive suppliers to work with
composite producers to utilize more additives in their
formulations. The value proposition needs to be based
on ease of processing (i.e. cost reduction) or in-service
functionality (i.e. performance enhancement).
Principia Partners: Lou Rossi, 610/458-3738

COPYRIGHT 2002 PRINCIPIA PARTNERS

Principias Expertise
Principia Partners is owned and managed by highly skilled business information professionals with extensive experience
in materials consumed in building products and automotive markets. In particular, the Firms principals have closely
monitored the market for natural/wood fiber polymer composites through various single client engagements and
syndicated research. The Firm utilizes its own professional staff to keep abreast of leading edge developments in the
marketplace.
NATURAL & WOOD POLYMER COMPOSITES is the latest product offering related to the natural/wood fiber
polymer composites industry conducted by Principia Partners, the Exton, PA-based market research and business
consulting firm. The newsletter is prepared by consultants from Principia's professional staff who have monitored the
business development activities in the dynamic and growing synthetic wood products since the business was first
established over ten years ago.
Jim Morton and Carl Eckert will be key regular contributors to the newsletter. Jim, a principal at Principia Partners, is
a well-recognized industry expert in polymer-wood composites, and has authored several relevant syndicated research
studies, as well as speaking at various conferences on the topic. Carl, formerly with Kline & Company, is an expert on
natural fibers, and has spoken at numerous conferences about the emerging opportunities for these fibers. These two
individuals will join other occasional contributors to the newsletter.

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