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4.R<M)79 An Overview of Titanium Dioxide Uses in the Specialties Applications Segment March 11,1991 MR#: 91-5 Paul C. Gundersen DuPont Chemicals Marketing Research Ma r k e t in g Re s ea r c h Fo r Bu s in e s s e s DUPONT CHEMICALS 05-0338-0002 Table of Contents Executive Summary-----------,----------------------,--------- -------------------------------------- -------------------1 A Historical Perspective ------ ---------------- --------------- --,--------- ----- ------------------~~----------- 1 The Market Today----------- ---------- ------------------------------------------- --------- ------- ----------------1 Objectives ----..... ------------ ------------------ --;---- :-------------------------------------- ------------------*-- l Method of Study ------- ------ ---------- ------ ------*---------- ------------------------- ----------- --------- ------1 Overview-------- ----------------- ---------------------------*------- :-------------------------- >------ :------- -- 2 The Worldwide Market for Titanium Dioxide --------------- ---------------------------------------- ----- 2 Conventions ---------- ;-------------------- -- ----------------- ------- >---------------- ----------- ------------- 2 Anatase Versus Rutile --------*--------- ---------------- ---- ----------- ----------------------- ----------3 Ti02 Specialties Markets------------- *--*--------------------------------- ------- ----------- ------------------ ----- --5 Overview------------- ---------------- *-------- ----,-------------------------- ----i----------- --------------- 5 Printing Inks----------- ----- ------------------------- ------------- ------------------------- ------------------------- :-----6 Introduction ---- ---- --------- -------------- ------------ -------- ------------- ----;---- 6 Market Structure, Size, and Growth ------------------------------------ ----------------- ----- 6 Gravure Printing--------- ----- ---- ------------------------------- ------ -------_---- --- 7 Lithographic Printing ------ ----- ------------------------------------------- ------------ 8 Flexographic Printing----- ------------------ ------------- --------------- ------------- 8 Letterpress Printing ----------- ------ ------ -----------<----------------------------- 8 General Requirements ----------------- --------- ~--,---------- ^------------------------ ----- 8 Gravure Printing---------- --~------- --------------- ------------ -------------- ------ 9 Flexographic Printing----- ---------------- ------------- ------------------------------ --- 9 Regional Information ------------------- -------------- --------------------------------- 9 Rubbers & Elastomers ------ ---------------- ----------------------<---- ------------- :-------------------- 11 Introduction ------------ ---------------------~------------------------- ---------- .-- n Market Structure, Size, and Growth------------------------------------------------------------------------11 Ti02 Properties in the Rubbers and Elastomers Segment ----------- --------------------- -- 12 Overall Product Use -------------- -------------------------------------- ---- ------------ 12 Tires----- ------------------------- ------ ----------------------------- .----------- ----------- ---------------------12 Ti02 Properties Needed in Tires ------------------------~~-----------------------------13 Athletic Shoes -- ----------- ----------- *----------------- ----------- ------- ------------------ -------- ------ 13 Introduction---------- ----------- ------- *----- --------- ---- ---------------------- 13 Market Structure Size and Growth ---------------- -- ------------------------- ------------- 13 Ti02 Properties Needed in the Athletic Shoes------------>--------- ----- ---------- --14 Regional Information-------------------------------- ---------- --------- ---------- ------------------ 14 Floor Coverings-----------*------------ ------------------------------------ ------------- ----- ------------------15 Introduction----- ----------- ------------------------------------- -------------------- ---------- ----------15 Market Structure, Size, and Growth---------- ----------- -------------- --------------- -------------15 Ti02 Properties in the Floor Coverings Segment ----------------------------- -------- -- 15 Textile Fibers----------------------------------------------------------- ----------------- ---------------------------- ------ 16 Introduction----- -- ----- ------------------------------- ------------------------------------- ---- ----- 16 Market Structure, Size, and Growth----------- ---------- --------- ------------- -------------------16 Ti02 Properties in the Textile Fibers Segment---------------- ------------------------------------ -16 Regional Information---------- -------------------------------------------------- ------------ ---------------- 17 Adhesives and Sealants------------------------ ---------- ------------------------------------------------ --------- 18 Introduction------------------------------------------- --------- ----------------------------- ---------------------- 18 Market Structure, Size, and Growth ----:------- ------- --------------- ----- .-- ----- -------- is Ti02 Properties in the Adhesives/Sealants Segment ------------------- ---- -------- :----------19 Regional Information ------------- ------------------ -------- -------:------------------------ ---- 19 Ceramics-------------!---------------------------------- ----------------------- *------------------------------ -- -------20 05-0338-0003 DUP050040657 Introduction --------------------- --------------- --*------------ ----------------------- -------------- --20 Market Structure, Size, and Growth ------------ ------------------------------------------------20 Ti02 Properties in the Ceramics Segment ----------------------------- ----- ------------ 20 Regional Information--------------------------*------ -----------------------------------------------21 Leathers ---------<---------- :-------*------- i--;-------------------- ---------- 1--*------ ------------------- 22 Introduction ------ ---------- ---------------------- . ------------------------------------ ,----- ------ 22 Market Structure, Size, and Growth -------- ------------------------- ---------- ---------- ----- 22 Ti02 Properties in the Leathers Segment --------- ------------------------------------22 Regional Information------------------- ----- -- -------- ----------------- --------------------------- 23 Roofing------ --------------------- ------- ----------- ------------ ---- ------- ----------------- ----------------- ------ 24 Introduction ------................ ........----------------------------------------- -------24 Market Structure, Size, and Growth---------------------------- ------- --------------- ----- ---------- 24 Ti02 Properties in die Roofing Segment -------- ------ ------- ----------- ------- -------- 24 Regional Information ----------- ------------------------------ "------------------- -------- -------24 Correction Fluid ---- ------------------ 1----------------------- ----------- ---- -------- -------- ------- 25 Introduction------------------~----------------------------- -------------- -------- -------- ---------- -----25 Market Structure, Size, and Growth --------------- ------------------- ----------- ------------- -- 25 Ti02 Properties in the Correction Fluids Segment ---- ----- --------- ----- ------------ 25 Electronics --------------- -------- --->----------------->--:----------- --------- ---------------------------------------- 26 Introduction-------- *----------------------- ------------------ --------------- ----------------- --- ----- 26 Market Structure, Size, and Growth --------------- ----------------- ------------- -------- -------- 26 TiQ2 Properties in the Electronics Segment ----------------------------- -------------------26 Regional Information --------------------- -- --------------- ------ -------------- --------------- -------27 Cosmetics ----1------- ;--------------------- ---------- -- ---------------- ------------- ------------------------28 Introduction--------------------- -------- ---;------- ------------------ ---------- ---------------------28 Market Structure, Size, and Growth ----------- ----------------- -------- --- ------ ---------- 28 Ti02 Properties in the Cosmetics Segment--------------;------------------ -- ------------ ------- 29 Regional Information----- ---------- .--------------- -------------- -------- -------- ------------- 29 Sources ----------------- !--i----------------- --1---------------- ---------------------- -------------------------------------------30 Overall-------------- ------1-------------------------------------- -------------------------------- -------------- 30 DuPont Chemicals --------- ------------------------- --------------------------------- ------------ ------- 30 Business Information Center ----------------------------------- -------------- ----------- ---- 30 Specialty Segments (listed alphabetically)------ ------------------------------------------------------------ ------ 30 Adhesives and Sealants--------- ----------------- ----;----------------------------------------------------- 30 Ceramics ---------------- ---------- ------------ ------- ----;----------r?------------------------------- 30 Cosmetics ------------------------------------------ ------- ------- ----- ----------- ---------,------ 30 Correction Fluids ----:-->----- ----------------------------------------------*--------------------- ---30 Electronics ----------- ---------------------- ------------- --------;------- >-------- -------- --------- 30 Floor Coverings----- ------------------ ------------- --------------------------.-------------------------- 30 Leathers------------------ ---------------------------- -------------------------- ---------------- ------- 31 Printing Inks --------------------------- ---------------- -------------------------------------------------- -----31 Roofing ------------------ --------------------- ------------------------------------------ ------ ----------31 Rubbers and Elastomers-------- ---------------------------- ------------ --------------------------- 31 Textile Fibers----------------- --------- --------------------------------------------- ----- 32 Footnotes --------------------------------------------------------- ---------------------------- ------- --------------- 33 05-0338-0004 DUP050040658 Listing of Tables The Worldwide Titanium Dioxide Market ------ ------- ---------- ---~------------------- ------------------ -----2 Ti02 consumed in Specialties -------- ------------ ---------------------------------............... ........ --------------2 Summary of Ti02 Anatase/Rutile Requirements by User Sector-------- -------------------------------------- ------3 Summary of Ti02 Anatase/Rutile Requirements by User Sector------------- --------------- --------- ---- ----------- 4 A Worldwide Overview of the Specialties Marketplace by Segment and Region ------- --------- ----------------5 Ti02 Consumed in Printing Inks ----------------------- --<----------------- ------------------------------ ----- ---------1----6 The Worldwide Printing Industry ------------------------ ------------- ------ ------ --------- ------------------7 Ti02 Grades Used in Printing Inks ----- - ----------------------------------TM-------------- _9 Ti02 Consumed by Printing Process (1990 Estimate) -------- -----------------*----------- -------- --------9 Estimated Japanese Ti02 Consumption in Inks ------------ ------------ -------- ---- ----- --------- ------- -------------- 10 Ti02 Consumption in Rubbers & Elastomers -->--~----- ----------------- ------------- ------------- 11 Ti02 Grades Used in the Rubbers & Elastomers Segment -------------- ----- ------------------ -------- --------12 A View of the Global Tire Market --------------------------- -------- ---------------- ------- ----------------------- ---------- --13 United States Ti02 Used in Athletic Shoes ----------- -- ----------1----------------- -------------------- ----- ----- 13 Ti02 Use in Flooring----- --------- -------------------- ---- ---------------------- -------------------------------------------- ----15 Ti02 Grades Used in Flooring ------------- -------- --------------- ----------------------- ----- ----------------- ----------- --15 Ti02 Use in Fibers --------------- ------ --------- --------------------- -------- --------- ----------- ---------------- ---------------- -16 Ti02 Grades Used in Fibers Applications ------- --*--:------ -------------------------------------------- ------------------16 Ti02 Use in Adhesives & Sealants------------------------------>--------------------- ------- ---------- ~--------------- --18 Ti02 Use in Ceramics------- ------------------------------------------------- ----- *---------- ----------------- --------- --------------------20 TiQ2 Use in Leathers ------------------------- ---------- -- -------------------------- ---- ---------------- -------------------22 Leather Footwear Imports to the United States ------------- --------------------- --------------- --------- --------------------- 23 Ti02 Use in Roofing ----------------- ----------------- ------------------------------------- ------- --------- -------------------------24 Ti02 Use in Correction Fluid ---------------- ---------------------------------------------------------------------------------- --------25 Ti02 Use in Electronics -------------- ------- ----- -- ---------------------------------------------------------- -------------------26 Ti02 Used in Selected Cosmetics Products ------------ ----------------------------------------------------------------------28 Ti02 Use in Cosmetics----------------- ---------- ----- ----------- -- -------------------------------------------------28 Cosmetics Consumed by Country------------------------------------------------ -------------------------- :------- ------29 Growth in the United States Cosmetics Segment -------------- ------------- *--------------------------- ----------- --29 Food & Drug Administration Specifications for Ti02 in Cosmetics.------------------ ---------------- ---------29 05-0338-0005 DUP050040659 listing of Figures The Worldwide Titanium Dioxide Market *------ --*---------- ------------------------------ ---------- ;---- l The Decline of Solvent Based Inks in the United States--------------- ------- --------------------------------- 6 Segmentation of the United States Printing Ink Segment ------------------------------ -------- ------------- 7 A View of the Worldwide Tire Market ------------- ---->-------- ----- ----- ----------------------- ---------- 12 Adhesives and Sealants Sales in the United States --------- -------------->------------------------- ------------- 18 05-0338-0006 DUP050040660 Executive Summary A Historical Perspective As the worldwide supply of titanium dioxide expands throughout the next several years, excess supply will become available. As supply becomes more available, titanium dioxide suppliers must find additional avenues to sell their products. Historically, DuPont has enjoyed good sales in the major industries; however, the company has had relatively low market share in the Specialty markets. Now that the worldwide shortage is over, DuPont can seek new areas to place excess titanium dioxide. Specialty markets provide avenues for DuPont to grow. The Market Today Despite DuPont being the world's largest supplier of Ti02 (with 26% of world capacity), its participation in the specialties market is relatively modest. DuPont's role and image in the market are greatly enhanced by its global strength. DuPont is one of the top four worldwide suppliers along with Tioxide, Kronos, and SCM.1 The overall market for Ti02 is about 3000 M tonnes per year. The specialties segment consumes roughly 300 M tonnes per year, Or 10% of the total market volume. Figure 1 shows the overall Ti02 market. Objectives The primary objective of this report is to characterize the worldwide market for titanium dioxide use in the Specialty applications segment. This report characterizes specialties by reviewing the following information. - Segment size - Segment growth rate - Crystallineforms used - Competitive grades. Method of Study Information was gathered through a number of primary and secondary sources in a worldwide context. Overall, over 200 segment contacts were made. This included contacts to industry and trade associations as well as users in each segment. Contacts were made inside and outside of DuPont. Study of the European segment is filed under DuPont Chemicals Marketing Research MR#:91-4 Figure -1 The Worldwide Titanium Dioxide Market DuPont Chemicals Marketing Research Page 1 05-0338-0007 DUP050040661 Overview The Worldwide Market for Titanium Dioxide The titanium dioxide market is a worldwide market with annual consumption of 3000 M tonnes. The market is segmented into four basic groups. Table 1 shows the breakdown of the worldwide titanium dioxide market. Table - 1 The Worldwide Titanium Dioxide Market Coatings Plastics Paper Specialties TOTAL 61% 15% 14* 10% 100% This document focuses on the fourth segment, Specialties. The Specialties segment consumes about 300 M tonnes Ti02 per year. The specialties segment is divided among several major industries and numerous minor applications. Table 2 lists the industries and their titanium dioxide consumption per year. The remainder of this document discusses each segment in detail. The segments are reviewed in order of worldwide Ti02 consumption from highest to lowest. Conventions The chemical formula Ti02 is often used in this document. This formula represents the chemical name for Titanium Dioxide. Throughout this document references are made to Ti02 consumption. The units are always in t h o u s a n d s o f METRIC t o n n es (M tonnes) unless DuPont Chemicals Marketing Research otherwise noted. The term "tonne" refers to one metric tonne. 1 metric tonne .= 2204.6 pounds. The term "ton" refers to one short ton. 1 short ton = 2000 pounds. For each segment, there is a table in the "Market Size, Structure, & Growth section. These tables sometimes have the abbreviation "NR" listed. This indicates "Not Reported," Table - 2 Ti02 consumed in Specialties Worldwide Summary by Segment (M tonnes) Segment Inks Rubbers/Elastomers Floor Coverings Textile Fibers Adhesives/Sealants Ceramics Leather Roofing Granules Correction Fluid Electronics Cosmetics Segment Total Misc Applications Specialties Worldwide Ti02 Consumed 78 66 36 32 25 22 15 9 7 5 3 294 6 300 Percent of Total 26.0% 21.3% 12.0% 10.6% 8.3% 7.3% 5.0% 3.0% 2.3% 1.7% 1.0% 2.0% 100% Page 2 05-0338-0008 DUP050040662 Anatase Versos Rutile_____________ Table 3 itemizes the anatase/rutile TiO 2 breakdown in the specialties segment. The column indicating * % Anatase/Rutile" was taken from the European study. The general proportions of Anatase/Rutile are believed to be similar in other regions of the world based on feedback from DuPont contacts in Asia Pacific, Latin America, and the United States. Table - 3 Summary ofTi02 Anatase/Rutiie Requirements by User Sector Segment Anatase Verses Rutile Inks Rutile grades are used where abrasion is not an issue. In gravure printing, anatase grades are used exclusively. Flooring North America: Rutile grades are being used because of their relative opacity and performance properties. Europe: Anatase is used because of historical usage. Adhesives & Sealants In this segment, anatase has no significant technical advantage. Anatase grades often suffice. Rubbers & Elastomers Tires and Athletic Shoes: Rutile grades can be used. Anatase has no significant advantage. Leathers Some anatase is used where softness is an issue. % Anatase vs. Rutile 10/90 Potential for Conversion to Rutile Rutile forms ofTiO 2 are used widely in this segment in all but the gravure process. 10/90 25/75 40/60 30/70 Better as rutile prices drop closer to anatase prices. In this segment, anatase has no significant advantage. Potential is better as rutile prices drop closer to anatase prices. Not having anatase in the leather segment may prove a slight handicap. DuPont Chemicals Marketing Research Page 3 05-0338-0009 DUP050040663 fable (Continued) Summary ofTi02 Anatase/Rutile Requirements by User Sector Textile Fibers Anatase is essential because abrasiveness is an issue. Cosmetics Anatase grades are preferred for their softness and purity. Correction Because hiding is very important in this segment. Rutile Fluids grades are the only ones used. Ceramics Electronics Anatase grades are used today. Rutile grades with no surface treatment will work. Purity is an issue. Roofing 90/10 90/10 0/100 80/20 No potential unless DuPont developes an anatase grade. No potential unless DuPont develops an anatase grade or meets government regulation and/or seeks approval. DuPont already dominates in the United States. Fair if DuPont can offer a grade of TiO 2 with low AI2P 3 content. DuPont Chemicals Marketing Research Page 4 05-0338-0010 DUP050040664 TiQ2 Specialties Markets Overview The worldwide specialties market consumes 300 M tonnes Ti02 each year. In this segment, each region consumes the following: Latin America North America Europe Asia Pacific 16 M tonnes (4%) 117 M tonnes (39%) 85 M tonnes (28%) 76 M tonnes (25%) Table 4 shows the worldwide breakdown of the Specialties market by region and segment. Table-4 A Worldwide Overview ofthe Specialties Marketplace by Segment and Region Inks Rubbers/Elastomers Floor Coverings Textile Fibers Adhesives/Sealants Ceramics Leather Roofing Granules Correction Fluid Electronics Cosmetics Latin America 6 4 0 2 0 2 1 0 0 0 0 16 5.3% North America 23 Europe 25 Asia Pacific 24 29 8 23 14 20 2 6 7 17 14 9 0 11 7 2 5 54 9 00 4 12 2 21 1 11 117 39,0% 85 76 28,0% 25,7% Other Applications Specialties Worldwide Total 78 64 26 32 25 22 15 9 .7 5 3 294 Percent of Total 26,0 21.3 8.6 10,6 8,3 7.3 5.0 3.0 2.3 1.7 1.0 98.0 6 2.0% 300 Growth Rate 2-3% 1-2% 1% Decline 2-3% 2-4% 5% Flat 3-5% 5-8% 5-8% DuPont Chemicals Marketing Research Page 5 05-0338-0011 DUP050040665 Printing Inks Introduction ________ ______ The printing inks segment has undergone consider* able changes throughout the past several years. The worldwide focus on the environment has moved the print segment from solvent based waste streams towards hazardous free Waste streams. Printing ink manufacturers and commercial printers are trying to minimize the use of all hazardous components in printing materials. They are also attempting to maximize the use of substrates, inks, and printing plates. Their overall goal is to shift from solvent-based inks to waterborne inks. 2 Waterborne inks are expected to make steady gains in the years ahead. Frost and Sullivan predict that solvent-based inks will decline rapidly between 1994 and the year 2000. Figure 2 depicts the decrease in solvent based inks. Figure - 2 The Decline ofSolvent Based Inks in the United States Percentage of Solvent Based Ini 1990 1994 2000 Pacific, and North America comprise over 95% of the printing inks market. Table-5 Ti02 Consumed in Printing Inks Latin America North America Europe Asia Pacific World Consumption (M tonnes) 6 23 25 24 78 Growth Rate NR 2-3% 3% 7% 2.7% A positive factor for the printing segment is the creation of the European common currency in 1992. This may have an important effect on U.S. exports of printed materials particularly at the current exchange rate on the dollar. 4 The Graphic Arts Technology Foundation forecasted United States sales growth in the publishing and printing industries of 7-8% in 1990. At that rate, the 1994 market for printing inks would be the equivalent of $ 4 billion US dollars. With inflation expected to be around 5%, the real growth in this segment would be 2-3 %.5 Although overall growth of the United States printing ink segment is relatively slow, a few sectors that are growing fast. Waterbased inks used in packaging at growing at an annual rate of 10-15%. The newspaper flexographic segment is growing at 2030%.6 The United States printing ink segment is comprised of over 38 thousand establishments. Figure 3 shows the overall structure of the United States printing ink segment. The printing inks segment is also heavily impacted by crude oil prices. Nearly 80% of its raw materials are petrochemicals. 3 As a result, printing ink manufac turers are very concerned with die price performance of their products. Market Structure, Size, and Growth The worldwide printing inks segment consumes over 74 M tonnes of Ti02. Table 5 shows the Ti02 volume in the printing inks Segment. Europe, Asia DuPont Chemicals Marketing Research Page 6 05-0338-0012 DUP050040666 A vast majority of these firms (84%) have fewer than 20 employees. The segment has experienced a strong shift from letterpress, dominant into the 1970's, to lithography, a process lending itself to computer composition and the economical use of color. The largest printing ink manufacturers are: - Dainipponlnk & Chemicals (Japan) - BASF (Parsippany, New Jersey) - Flint Ink (Detroit, Michigan) - Sinclair & Valentine. These four manufacturers account for over 45 % of the world market share. Their share of Ti02 consumption is somewhat less than their share of ink production. This phenomenon is caused by the majority of their production lines generating commodity black inks.7 Other ink manufacturers include: France - SICPA - Lorrilleux - Branchet Germany - Siegwerk - Schmidt -Hartmann -Huber United Kingdom - Coates (Lorrilleux) - Mander Kidd Holland - Kroda Italy - Colorama - Baglini Table-6 The Worldwide Printing Industry Segment Lithography Gravure Flexography Letterpress Other Overall Growth $ MM Bate 835 5% 529 6% 411 10% 175 8% 320 9% -2300 7% Gravure Printing Gravure technology continues to be used where high quality and longerprint runs are desirable. Gravure print is used in the following types of applications: - cigarette packaging - detergents - magazines - cereal boxes -foilfor insulation - diaper bags. Gravure printing is normally usedfor extremely long print runs where high print resolution is desired. Lithographic Printing Figure - 3 Segmentation of the United States Printing Ink Segment ^United^St5^Printin^Establlsmente~~j|| The projected worldwide growth for the printing inks segment is expected to be 2.7% for the next several years.8 By printing process, the worldwide printing inis segment is segmented as shown in Table 6. 0,80% 1990: 38680 Establishments Source: 1991 US Industrial Outlook Gravure Letterpress, Flex, Screen Other Lithography DuPont Chemicals Marketing Research Page 7 05-0338-0013 DUP050040667 The most popular of the four major printing processes, lithography, uses the planographic method. The image and non-printing areas are essentially on the same plane of a thin metal plate, and the distinction between them is maintained chemically. There are two basic differences between lithography and other processes: - It is based on the principle that oil and water do not mix - The ink is offset first from the plate to a rubber blanket, and then from the blanket to the paper. Flexographic Printing Flexography continues to be used where lower quality and shorter runs are desirable. Flexographic printing is used in the manufac ture of -craft bags - bleached bags - food packaging -flexible packaging - narrow web applications (i.e., tissue, paper towels). Inks containing Ti02 are most often used in packaging, particularly flexible packaging such as polyethylene food wrap. Other uses include metal cans and other publications. Packaging ink worldwide is a $500 MM market. The average packaging ink price is $1.10-$1.20 per pound. Of all packaging inks, 7-10% are whiteft Ti02 is typically loaded in white inks .2-.25% by weight to produce the desired opacity.*0 Based on these figures, the worldwide packaging segment consumes 2-4 M tonnes each year. Letterpress Printing Letterpress is the oldest and most versatile method of printing. It can be used for short, medium, or long runs. The letterpress method is the only process which can use type directly. Printing is donefrom a cast metal type or plates on which the image or printing areas are raised above the non-printing areas. Ink rollers touch only the top surface of the raised areas; the surrounding (non-printing) areas are lower and do not receive ink.11 Typical letterpress applications include: - commercial printing, - books, - newspapers, - magazines, -packaging, - various specialty printing applications. General Requirements There are many parallels between the printing ink segment and coatings segment. - A given ink manufacturer has many ink grades -- each one many require special Ti02 properties. - Technical support is needed just as in coatings, - Ink manufacturers use several grades of Ti02 and two or three Ti02 suppliers. - Most sales to the ink segment are direct.11 While considerations are similar to those in the coatings segment, there are additional considerations like: - Oil orwater absorbancy - Dispersibility - Viscosity In the United States, the industry standards for Ti02 are Kemira OR-580 and Kronos 2090. 13 In Europe, Tioxide grades tend to set the standard, notably RHD2, RDI, and RXL. Other grades noted in the European study include: Bayer R-FD-I and Kronos 2044. These products have the fol lowing characteristics: - low oil absorption - easy dispersion - low abrasion - high Ti02 content. DuPont R-931 is sometimes used when opaqueness and hold-out are important. DuPont Chemicals Marketing Research Page 8 05-0338-0014 DUP050040668 DuPont needs to offer a product like Kemira OR-580 to be successful in this segment The improved product should be less yellow, lower in abrasion, and should have the same or higher gloss.14 In Japan, the following Ti02 grades and properties were reported as Shown in Table 7.15 Table - 8 Ti02 Grades Used in Printing Inks R-960 R-900 R-931 R-902 DuPont Hiding Surface Smoothness Hiding Surface Smoothness, NonFogging CR-90 R-930 R-820 R-630 Ishihara Hiding, Surface Smoothness, Non-Fogging Hiding, Surface, Non-Fogging Surface Smoothness, NonFogging Surface Smoothness, NonFogging Customers primary concerns with Ti02 are price and abrasion.16 As the printing inks segment turns towards waterborne inks, the need for a higher gloss Ti02 is even more critical. As water content increases, gloss levels tend to decrease. Gravure Printing The gravure printing process uses what is known as a "doctor blade" to remove excess ink from "engraved cylinder." Through time, the doctor blade and the engraved cylinder wear down. In this process, overall wear increases as the inks' abrasion increases. Physically, the ink must be finely ground and free from any hard particles which could result in scratching the engraved cylinder or "nicking" of the doctor blade.17 Gravure printing uses anatase grades of Ti02 . Rutile forms of Ti02 are too abrasive and cause premature cylinder wear. As a result, conversion to rutile grades is highly unlikely. Flexographic Printing In the past mostly anatase Ti02 was used for the printing segment. Today, the flexographic printing uses predominantly rutile grades. This change has accelerated as inks have moved from solvent based to waterborne processes. Regional Information________ _________ No r t h Ame r ic a 1989 consumption ofTi02 for printing inks was About 22.7 M tonnes1S Table 8 shows the approximate Ti02 consumption by printing process.___________ __________ Hull and Company estimated the following TiQ2 usage by printing process. _________ Table - 8 Ti02 Consumed by Printing Process (1990 EstimateJ19 Solvent Flexo Water Flexo Screen Inks Lithographic Gravure Letterpress TOTAL 6.3 5.9 4.8 2.6 2.7 ,13 22.4 DuPont reaches the ink market almost ex clusively through its distributor, Ti02 is most often sold in LTL quantities. DuPont Chemicals Marketing Research Page 9 05-0338-0015 DUP050040669 United States: 1989 Ti02 consumption in inks was estimated at 20-22 M tonnes20 This represents 90% of the North American total. _______ _____________ ________ The printing inks segment grew slightly more titan 4% in 1989 with sales of $2.5 billion. The segment is expecting to return to the long-term trend of about 5% annual growth.21 _______________ ___________ Ja p a n In 1989, Ti02 growth was 6.6% to Japan's printing ink segment.22 Japan consumed 38,500 tons ofTi02 in printing inks.23 The ink segment is very important in Japan because the major ink customers are also major customers in the plastics segment. The implication ofthis relationship is that salespeople on plastics accounts can call On ink customers at the same time. Toyo Ink, Dainichi Seiko, and Sakata Inx have good penetration into the gravure segment. ____________ ______________ _ The Japan Ti02 Segment Association provides information about Japanese Ti02 consumption by segment. Imports, which are not reported by the associating, account for 20% of Japan's total Ti02 demand. Table 9 below shows the associations' estimates for ink and an estimate (which includes imports) of Japan's total Ti02 demand in the ink segment- _________ Ishihara is very strong in the Japanese ink segment. They offer grades tike CR-90, R- 930, R-820, dndR-630. ______________ Eu r o pe The marketfor priming inks is expected to grow by 3.3%/year to reach 618 tons of ink produced by 1993.24 _______________ The ink segment is very important in Europe because many of the major ink customers are also major customers in the paint segment. The implication of this relationship is that salespeople on paint accounts can call on ink customers at the same time. Table 9 Estimated Japanese Ti02 Consumption in Inks Metric Tons Tnlr (w/o imports) Ink (w/ imports -- estimate) (Units: Tonnes) Rutile 34977 Anatase 3500 41972 4200 1989 Total 38477 46172 % vs. 1988 110 DuPont Chemicals Marketing Research Page 10 05-0338-0016 DUP050040670 Rubbers & Elastomers Introduction Ti02 pigments ate used in virtually all rubber compounds that are non-black. This includes grey as well as white rubber. 25 The Rubbers and Elastomers segment depends on petroleum products for 80% of its raw materials. As a result, raw materials pricing is of major importance to segment producers. Throughout the past several years, environmental concerns have become increasingly important to rubbers and elastomers producers. The two largest elastomer markets are white sidewalls for passenger tires (estimated to account for two-thirds of the entire market) and rubber footwear.26 Other applications include wire and cable coating, and housewares. Houseware products include items such as drain boards, storage container lids, and rubber trim on the inside of refrigerator doors. 27 Ti02 is the prune white pigment used in all light colored rubber products. Ti02 suppliers to this segment include: - DuPont - Ketnira - Kerr-McGee - NL Chemicals -SCM - Tioxide The suppliers are produce a mixture of rutile and anatase grades for rubber applications. Market Structure, Size, and Growth The worldwide Rubbers & Elastomers segment consumes roughly 63 M tonnes Ti02 per year. The largest markets for Ti02 are in North America and Asia Pacific. Table 10 shows the Ti02 consumption in each region of the world for Rubbers & Elastomers. Table - 10 Ti02 Consumption in Rubbers & Elastomers Ti02 consumption (M tonnes) Latin America 4 North America 29 Europe 8 Asia Pacific 23 World 64 Growth Rate NR 1% 2% 4% The rubbers and elastomers segment consists of a number of compounders who produce components on a sub-contract basis for incorporation into end products like: - Automotive components - Athletic shoes - Appliances - Clothing elastic This segment is highly fragmented. Most compounders purchase Ti02 through distributors. No r t h Ame r ic a : Soft key (construction markets and general economic sluggishness caused demand in the North American region to slow in 1989. Although the industrial consumer goods segment will increase in size, the overall decrease in tire manufacturing has caused a low growth rate in this segment. Growth in the North American Rubber and Elastomers Segment is predicted to be 0.6 % Over the next several years.28 Slow growth is expected because fewer whitewall tires are being produced. Whitewall tires are common in the United States but are seldom seen overseas. The only Ti02 consumption Europe reported in tires was in bicycle tires. North American growth in this segment should be attributed to a slight increase in the consumer products segment. 29 EUROPE: In Europe, the Rubbers and Elastomers segment is made up of two tiers: Compounders -- supply rubber compounds to final producers. Moulders -- who either buy compound or prepare it. DuPont Chemicals Marketing Research Page 11 05-0338-0017 DUP050040671 These producers create a variety of end-use products. In Europe, there are over 200 users of Ti02. This segment receives its Ti02 supply through distributors. Overall, European growth trends are modest, with a predicted growth rate of 2%.30 Ti02 Properties in the Rubbers and Elastomers Segment Overall Product Use In North America, anatase grades are the primary grades used in this segment,31 Products like DuPont's R101 and Kendra's 0110 are commonly used in rubber manufacturing. In Europe, rutile is more widely used. A great deal of anatase is still used in this sector -- individual companies show a strong preference for one or the other. Table 11 lists the various Ti02 grades preferred in the Rubbers & Elastomers segment. Users are looking for dispersibility, consistency, colorfastness in light and heat, and stability in Table - 11 Ti02 Grades Used in the Rubbers & Elastomers Segment Supplier DuPont Kemira Kronos SCM Tioxide Product Code R-101 O-110, 0-220, OR-450, OR-460 1000 ROM, HSS, RCS-3 R-CR2, R-FC6, A-LF2, A-HR contact with oil or solvents.32 Tires______________ Six producers account for over 75% of the entire world rubber tire market. They are: - Michelin - Goodyear - Bridgestone - Continental - Sumitomo (Dunlop) - Pirelli. Figure - 4 A View ofthe Worldwide Tire Market World Tire Market DuPont Chemicals Marketing Research Page 12 05-0338-0018 DUP050040672 Figure 4 shows the top six producers with their relative worldwide marketshare. Blackwall tires are becoming the predominant type oftire in the marketplace. Some whitewall tire production still exists. This decline is causing an overall decrease in Ti02 use in this segment,33 Tire manufacturers say they expect no surprises in the segment over the next several years slow growth (about 2%f4, and continued growth of radial and performance tires35 Table 12 shows the projected growth of the worldwide tire segment. Table - 12 A View ofthe Global Tire Market Region North America Europe Latin America Asia/Africa World Percent of World 39% 30% 6% 25% 100% Growth Rate 2.5% 3.9% 0.0% 4.0% 3.1% producers to this segment include: - SCM - Krotios - Kemira - Tioxide. Because TiQ2 does not contribute to the strength ofmaterial, loading levels are kept to a minimum. On average 1-1.15 pounds of white compound are used per whitewall tire. Ti02 loading in the white compound is typically 15- 20% by weight.36 Products like DuPont's R-101 and Kemira's Unifane 0-110 are commonly used in tire production. Athletic Shoes__________ _____________ Introduction The largest athletic shoe manufacturing operations are located in Asia Pacific and Latin America. Manufacturers will be looking for more lightweight and durable materials throughout the 1990's37 Ti02 Properties Needed in Tires In tire production, anatase forms ofTt02 are commonly used. Some rutile grades are used; however, some tires containing rutile grades have been known to crack. Anatase 7102 provides a good buff texture and whiteness. Chaulking grades are preferred. Anatase Table - 13 Market Structure Size and Growth The United States imports over 60% of all its rubber athletic footwear. Lower cost overseas labor, particularly in Asia Pacific has attracted producerslo overseas locations. United States Ti02 use in athletic shoes is estimated in Table 13. In the athletic shoe segment, estimating the total Ti02 consumption was very difficult. The estimate provided below is based on the following assumptions. Ti02 Content 2% 3% 4% 5% United States Ti02 Used in Athletic Shoes Minimum 25% non-hlaek 6000 9000 12000 15000 (Tonnes) Mid-Range 33% non-black 7920 11880 15840 19800 Maximum 50% non-black 12000 18000 24000 30000 - 3 billion pair of rubber soled footwear per annum imported to the United Slates. - The percentage of non-black range from 25-50%. Source; Shoe Allied Trades Research Association DuPont Chemicals Marketing Research Page 13 05-0338-0019 DUP050040673 - All non-black contains some Ti02 - Sole weight -- 0.4 kg/pair38 For the purposes of this report, a mid-range value of-13,860 tonnes is being used. Nike, Reebok and LA Gear are the major suppliers to the athletic shoe segment 39 Other producers include Brooks, K Swiss, Stride Rite (Keds Division), Converse, andEtonic. Ti02 Properties Needed in the Athletic Shoes Hiding power, whiteness, and durability are the most important Ti02 properties in this segment, In white compounds, 5% loading is normal for Ti02. Bui up to 10% loading is used in very dense whites. For buff, sand or cream colored rubbers, 2% loading is normal Loadings depend on the color ofthe base polymer. As rutile prices drop, the potential conversion from anatase grades to rutile grades is more likely. Rutile grades offer a better price/performance ratio. The improved hiding power of DuPont's R-103 makes this grade a good candidate in the Athletic segment.40 Regional Information __________ Wo r l d w id e By the year 2000, nine thousand tons of Ti02 will be consumed worldwide by rubber product manufacturers.__ Most manufacturing takes place in Asia Pacific and South America because of low labor costs. No r t h Ame r ic a Kemira held a 30% market share in the North American segment in 1989.41 United States: Consumption of Ti02 in the manufacture of elastomeric products was 18-20 thousand tons in 1989.42 Ja p a n Use in rubber was 3661 m tons in 1989.43 Ko r e a The Korean athletic shoe market is a $5 billion marketplace. Ti02 use in this DuPont Chemicals Marketing Research segment/region is estimated at 9,000 tonnes. TiQ2 consumption in Korea is 95% anatase grades 44 The potential for conversion to rutile grades is good as rutile prices come down closer to anatase prices. Page 14 05-0338-0020 DUP050040674 Floor Coverings Introduction_____________ This segment includes Ti02 consumed in resilient floor tiles and sheet goods. Typically, these floor coverings contain 2-4% by weight, although some products have a much lower content. 4S There are five basic types of flooring. Ti02 is Used in all types except wood flooring. -Rubber - Ceramic Tile - Vinyl - Wood - Linoleum Wood, carpet, and ceramics producers are the major competitors to the vinyl flooring segment. 46 Market Structure, Size, and Growth ______ The total Ti02 demand in the flooring marketplace is approximately 37 M tonnes per year. Table 14 shows the Ti02 use in each of these segments. In the United States, the market has remained flat throughout the past several years. This flatness is caused by a slowdown in key construction markets. In Europe, average annual growth is estimated at 1%. Table 14 Ti02 Use in Flooring Ti02 Consumption (M tonnes) Latin America 0 North America Europe 14 20 Asia Pacific 2 Total 36 Growth Rate 0% 1% The top producers in the floor coverings segment are: - Armstrong -Tarkett DuPont Chemicals Marketing Research - Cognoleum - Mannington Mills. In North America, Armstrong, the leading producer in flooring, sole sources 100% of their Ti02 needs from DuPont. Armstrong has an estimated 50-55% market share in this segment. Because other floor covering manufacturers are privately held companies, little information is available about their market share and growth rates.47 In the United States, the overall market has remained relatively flat throughout the past several years. Ti02's use in the floor coverings segment is heavily dependent on fashion trends. The shift from darker colors to lighter colors has caused an increase in Ti02 use; however, the slow growth in key construction markets has caused overall growth to remain flat.48 Ti02 Properties in the Floor Coverings Segment ________ Properties particularly important in this segment are: - Covering capacity - Dispersability - Low viscosity - Color stability. Currently, 90% of the consumption is rutile. Rutile grades are used for their opacity and tint strength. Rutile grades also provide better protection from ultra-violet radiation. Table 15 lists the grades being Used in this segment. Table - 15 Ti02 Grades Used in Flooring Producer Grade DuPont R100, R101, R900 Thann & Mulhouse RL11-A Tioxide R-SM2, R-HD2, RFC2 SCM RCL-472 Bayer RFDK-1 Page 15 05-0338-0021 DUP050040675 Textile Fibers Introduction Hardly any innovations have so greatly contributed to the expansion of synthetic fibers in the textile segment as delustering and spin coloring. Both synthetic and semi-synthetic fibers are produced more or less as transparent materials. They both exhibit an unpleasant, hazy luster which is unattractive particularly for articles of clothing. The undesirable luster of man-made fibers is removed by the process of delustering while spinning with Ti02.'*9 Ti02 is added to a fiber by mixing it in a slurry form with molten fiber prior to spinning the fiber. Market Structure, Size, and Growth^ The worldwide fiber market demand was about 32 billion pounds in 1989.50 Table 16 shows the Ti02 consumption in this segment. Table 16 Ti02 Use in Fibers Ti02 Consumption (M tonnes) Latin America North America 2 6 Europe 7 Asia Pacific 17 Total 32 Growth Rate Decline Overall, Ti02 consumption is expected to fall in the man-made fibers segment. As finer and finer yarns are used, Ti02 will cause blockages in the spinerettes. Also, companies buying fibers are increasingly aware of the environmental impact of the sulphate process. 51 The segment is divided among five basic product lines: - Acrylics Nylons - Polyesters - Rayon DuPont Chemicals Marketing Research -Acetate. Sachtleben is the primary producer of Ti02 to the fibers segment. Sachtleben produces about 25,000 tons of anatase Ti02 for use in fibers. Ti02 and are trying to gain share in this segment. The Japanese supply to this Segment is improving.52 As a general rule, 0.2% Ti02 is used per pound of fibers production.53 Ti02 Properties in the Textile Fibers Segment_____________ Anatase Ti02 is the predominant form of Ti02 used in the Fibers Segment. Anatase grades represent nearly 90% of the total Ti02 consumption. Some rutile grades are claimed to be softer than anatase grades. However, as a general rule, rutile grades are rarely used in fibers applications because they disperse poorly and are very abrasive. The key needs for Ti02 in fibers applications are dispersion, brightness, and opacity. Dispersion is one of the most often discussed characteristics. TiQ2 must disperse very well in the liquid polymer before it passes through the spinerette. 54 In this segment gloss is not an issue.55 Table 17 lists the various grades most commonly used in fibers applications. Table - 17 Ti02 Grades Used in Fibers Applications Supplier Sachtleben Kronos Tioxide Kemira Grades LW-S, LW-S-U 1071, 1072 A-PP2, A-HR OR520 Sachtleben grades used in fibers applications in clude LWSU for Dacron, and LWSU for Polyester. Other Sachtleben grades used in fibers are LWS, FFS, and LOCLS, Kemira OR520 is also used.56 Sachtleben produces Ti02 for most fibers applications world wide. Page 16 05-0338-0022 DUP050040676 Adhesives and Sealants Introduction__________________ _________ _ The worldwide Adhesives and Sealants segment is a highly fragmented segment. There are at least 750 producers making thousands of products world wide. The majority of producers in this segment would normally seek Ti02 supply through distributors. This segment has seen considerable consolidation worldwide. The driving forces behind consolidation are snowballing R&D costs and environmental compliance. ss Un it e d St a t e s The United States adhesives and sealants segment is a relatively small segment with just over $6 billion in merchant shipments. The segment is extremely complex in its products, specifications, and competition.39 This segment has over 500 merchant producers operating some 750+ plants. Eu r o pe: This segment is very attractive to DuPont. It is 90% rutile and one of the largest European segments. While the segment is highly fragmented, if DuPont can be successful through good distributor relationships. Market Structure, Size, and Growth The worldwide adhesives and sealants segment is a highly fragmented segment. This segment has over 750 producers worldwide. In the United States alone, there are over 550 producers. This segment is mature and has thousands of products, end uses, and technology. Ti02 requirements was extremely difficult. Table 18 depicts Ti02 use in each region of the world. Kline's 1988-1989 Extenders and Fillers report indicated that 13-14 M tonnes Ti02 were consumed in the United States. The European Study reported that 9 M tonnes were consumed. Assuming that Asia Pacific figures closely relate to those of the United States and Europe, the estimated consumption in Asia Pacific is approximately 11 M tonnes per year. table 18 Ti02 Use in Adhesives < Sealants Ti02 Consumption (M tonnes) Latin America 0 North America 14 Europe 9 Asia Pacific 0 Total 23 Growth Rate 2% 5% In the United States, 1988 sales to the adhesives segment were $5.7 billion. Figure 5 shows United States adhesives and sealants sales. The ten leading producers accounted for over 40% of the US total market share. The remaining 500 accounted for the remaining 60% market share. In Europe, the combined adhesives and sealants marketplace totalled almost $4 billion (adhesives/$3 billion, sealants $1 billion).60 The European market structure is similar with over 200 producers. Figure-5 Adhesives and Sealants Sales in the United States Adhesives & Sealants Industry Sales $6 billion $ S billion $ 4 billion $3 billion $ 2 billion $ 1 billion $ p billion Adhesives Sealants Three of the top producers in this segment are: - National Starch & Chemical (NewJersey, USA) - 3M (St, Paul, Minnesota) - Henkel (Dusseldoif, Germany) Adhesives, in short, are chemical compounds capable of bonding themselves to a dissimilar mate rials.61 Adhesives includes: DuPont Chemicals Marketing Research Page 18 05-0338-0023 DUP050040677 - cements - pastes -mucilage - glues. Sealants includes sealants and caulks. While sealants must adhere to one or more surfaces, their application is designed to prevent the passage of a liquid or gas between the surfaces. 62 Ti02 Properties in the Adhesives/Sealants Segment ______ Ti02 is used in virtually all uses of sealants which are visible and white. The overall use of Ti02 is relatively low -- typical loadings are 1-2% by weight. The most important product properties in this segment are dispensability and ultra-violet stability.63 In Europe, the main grades discussed in this segment are: - SCM AG-WDB - Tioxide TR92 and RFC5. Anatase grades are the predominant grades used in this segment today. The potential for conversion to rutile will be much greater as rutile prices drop. Ti02 is used in nitrile rubber cements at levels between 5 and 25 particles per hundred to add whiteness, promote tack, and extend storage life. 64 In sealants, some rutile grades are added at levels up to 22% by weight to reinforce rubber in polysulfide sealants and at lower levels as a whitener in polybutene and silicone based sealants.65 Regional Information _________ _______ Eu r o p e : Adhesives and Sealants producers have a sense of neglect. They typically purchase small Ti02 quantities direct from the supplier. Because quantities are small, users have encountered indifference. DuPont Chemicals Marketing Research Page 19 05-0338-0024 DUP050040678 Ceramics Introduction Ti02 is used as a component of porcelain enamels and glazes for metals, ceramics, and specialty glasses. Non-pigmentary grades are often used because of their larger particle size. 66 The United States ceramics segment has experienced a decline since the 1973. This decline coincided with the development of other metal coatings and techniques for applying thinner ceramic surfaces. The ceramics segment is divided into two segments: Frits and Glazes. Frits are used in many porcelain applications. Glazes are used in bathroom tile and cookware applications. 67 Market Structure, Size, and Growth The worldwide ceramics business (frits and glazes) consumes approximately 22.3 M tonnes Ti02 per year. Table 19 shows the Ti02 usage by region. Table 19 Ti02 Use in Ceramics Ti02 Consumption Growth (M tonnes) Rate Latin America North America Europe 2 11 : 2% 7 5% Asia Pacific 2. Total 22 The ceramic wall and floor tile segment experienced record shipment levels of about 505 million square feet in 1989. The 3 percent increase over 1988 shipments primarily reflected the growing popularity of ceramic tile for many applications in new and existing residential and non-residential buildings.68 Growth in the North American segment is likely to be slow. The level of Ti02 consumption in 1989 was, 11-12 M tonnes.69 Ferro is a major player in the Frits and Glaze mar ketplace. In the United States, they use 1500-2000 DuPont Chemicals Marketing Research tons of non-pigmentary Ti02< Other manufacturers in this marketplace are Mobay, Chivey, and General Color.70 The United States ceramics segment has decreased in size by 50 % in the past 5 years. This decline has been heavily influenced by the shift in use of porce lain enamel frit to powdef coatings. 71 Major producers to the ceramics segment are: - Ferro -Bobay - Chivet - General Color.72 Ferro has between 33-50% of the market share in ceramics worldwide.73 Ti02 Properties in the Ceramics Segment Anatase is the preferred form of Ti02 in ceramic frit applications. While rutile grades are preferred in many nonceramic applications, in titania enamels, appreciable rutile gives rise to objectionable color. 74 The segment standard grade of TiG2 in the ceramics segment is SCM's nonpigmentary Ti02. It is typically shipped and imported to the United States, This grade of Ti02 has a 9-10 micron particle size.75 Frit Applications Care must be exercised in selecting Ti02 for ceramics. Grades produced especially for ceramic applications flow freely in dry state and eliminate sticking. These properties are not characteristic of pigmentary TiG2 . Glaze Applications: Ti02 is used in glazes to affect acid resistance, color, and texture. To glass, nonpigmentary Ti02 imparts a high refractive index. It also intensifies and brightens colored transparent glasses, especially those using ceria as a colorant.76 The most important product attribute is particle size -- typical 9-10 microns. SCM currently has a product capable of meeting producers' needs. The product is shipped to the United States in bulk quantities. DuPont success in the marketplace is dependent on making Ti02 with a large enough particle size. Regional Information Page 20 05-0338-0025 DUP050040679 Wo r l d Tile is produced in Mexico, Brazil, Italy, and TaiwanP Un it e d St a t e s Growth of the ceramics market in the United States is flat. The major reason for the flatness is that there is has been an increased use of powder coatings in appliance applications. It a l y a n d Br a z il These two countries consume the most tile per capita These are the largest ceramics markets in the world.78 Me x ic o The standard grade of Ti02 is R-110. Mexico uses this grade because of a legalized monopoly in the country 79 DuPont Chemicals Marketing Research Page 21 05-0338-0026 DUP050040680 Leathers Introduction_____________ . The leather tanning and finishing segment consists of establishments primarily engaged in tanning, currying, and finishing raw or cured hides and skins into leather. The segment also includes converters and dealers who buy hides and skins or leather and contract with tanners or finishers to process these products. Overall, this segment is highly fragmented. All tanneries use TiQ2 for finishing or surface coating of leather. The industry term for what a layman might call "spray paint" is "dope." Most producers purchase Ti02 in an aqueous paste form supplied by leather pigment manufacturers. Ti02 is used in many types of leather products. It is typically found in colored items where a white or pastel color is desired. The segment has two seg ments: - consumer products (i.e., shoes, handbags, and accessories) - automotive upholstery. 80 Market Structure, Size, and Growth Bayer, BASF, Henkel, Eamshaw, and ICI all supply this segment with Ti02. 81 In this segment, the Ti02 producers are also the major suppliers of pigments to the leather industry. Consequently, these companies represent the majority of the Ti02 consumption in leather goods manufacturing. Table 20 lists Ti02 consumption figures for the leather segment. The long-term outlook for the worldwide leather tanning and finishing segment is brighter than it has been. The hide supply will begin to increase in late 1990, and process should decline thereafter. Worldwide growth in the leather segment will be about 5%/year $2 Environmental problems will remain a concern, but new technology and equipment will help the segment remain the most cost-corn petitive and highly productive, of any in the world.83 Throughout the past ten years, the North American leather segment has been in a depression because many production operations have moved overseas. DuPont Chemicals Marketing Research Table 20 Ti02 Use in Leathers Ti02 Consumption (M tonnes) Latin America 1 North America 4 Europe 4 Asia Pacific 4 Total 15 Growth Rate NR 2% 3% 14% 5% In addition to the labor Shortage, car builds in the automotive segment have declined, 84 Inexpensive labor rates have driven these markets overseas. 85 The fastest growing and potentially largest markets in the United States today are (hose for automotive and furni ture upholstery leather. The North American leather segment experienced considerable contraction and consolidation between 1982 and 1987. The number of companies declined from 342 in 1982 to 308 in 1987. By 1989, only about 130 establishments of significant size were directly tanning raw bides and skins into leather. The footwear segment is the tanning segment's largest market, consuming an esti mated 55 percent of leather shipments in 1989, Ti02 Properties in the Leathers Segment In the leathers segment, both anatase and rutile grades of Ti02 are used; however, rutile grades are preferred for their hiding power. Anatase is typically used in lower quality applications. The properties typically sought after are much the same as those in the coatings industry. 86 In North America, leather manufacturers obtain their Ti02 supply through distributors. In Europe, leather finishing chemical suppliers are often large chemical companies themselves. At least 90% of all Ti02 consumed in this segment is used for coloring purposes. It is used mainly in finishing, or the "dry" end, but to some extend in pre-coloring, or the "wet" process.87 Dupont's R-900 and R-902 are used in the segment.** Ti02 is typically loaded at levels of 1-2% by weight. Ti02 is also used in leather finishing (15-25% by weight).89 Page 22 05-0338-0027 DUP050040681 Regional Information _______ WORWWfDE: There is no technical barrier to DuPont entering this industry. The similarities to the coatings industry wilt help DuPont gain success in this segment, _______ __ Un it e d St a t e s : United States imports ofleathers rose about 13 percent in 1990 to an estimated $14 billion. Over 80 percent all imports Came from developing and newly industrialized countries like Tiawan and Korea,90 Figure 6 shows the total pairs of non rubber imports to the United States. Taiwan, South Korea, Brazil, and China are the largest producers ofleather products. Figure - 6 Leather Footwear Imports to the United States Rest ot World Romania India Yugoslavia Phillipines Indonesia Mexico Hong Kong Thailand Spain Italy China Brazil South Korea Taiwan 0 U.S. Nonrubber Footwear Imports, January-June 1989 Source: US. Department of Commerce, Bureau of the Censis and International Trade Administration 20000 40000 60000 i1" i 80000 100000 Thousands of Pairs -i..... i 120000 140000 160000 DuPont Chemicals Marketing Research Page 23 05-0338-0028 DUP050040682 Roofing Introduction__________ The roofing granule segment is a predominantly United States segment. This segment creates two types of products. - roofing granules - sheeting. Ti02 is used in roofing granules for lighter colored roofing. Market Structure, Size, and Growth Growth in the roofing segment is directly related to GNP growth,9* This segment has remained stagnant since 1973. Prices have remained the same since 1973 and the market shows little growth. The only way for a granule producers to increase earnings is to cut production costs or increase volume.92 Cost is a predominant concern in this segment.93 The roofing segment is a relatively small segment and is a predominantly North American in orientation. Overall Ti02 consumption was estimated at 8.5 M tonnes (shown in Table 21). Table 21 Ti02 Use in Roofing Ti02 Consumption (M tonnes) Latin America North America 0 9 Europe 0 Asia Pacific 0 Total 9 Growth Rate N/A 0% N/A N/A About 60% of the roofing market is new housing starts, and the balance is repair and replace ment markets,94 GAF and 3M are the major producers of roofing granules, 3M being the largest. The largest producer of roofing products is 3M. Experts estimate that 3M has 50% of the market DuPont Chemicals Marketing Research share,95 Overall, about 3000 M tons of roofing granules are produced each year. DuPont supplies 3M with approximately 55% of their total Ti02 requirements (SCM and KerrMcGee supply the rest). 3M's estimated annual requirement is 4700 tons. TiQ2 Properties in the Roofing Segment Roofing granules are normally required to be highly opaque (less than 1% light transmitted). 96 Black and grey granules of various shades are typically made of natural basalt (no Ti02 content). Other colors are basalt granules that are coated with a ceramic layer containing Ti02 and other pigments. Typically, granule producers purchase pigmented products containing Ti02 from distributors. They then fire the coated basalt particles to produce the finished granule. 97 Typical loadings are less than 5% by weight. Granule producers are most interested in Ti02 opacity.98 The most prominent Ti02 grades used in this segment are: - DuPont R100 and RlOl - SCM's RCL9 and RCL4 - Kemira's OR-342 and OR580. Regional Information No r t h Ame r ic a Gangrit (a roofing granule producer) purchases color formulations already containing Ti02 from distributors such as Van, Waters & Rodgers. ____________ DuPont is the sole supplier of Ti02 to GS Roofing. They use two grades -- R901 and R101 Page 24 05-0338-0029 DUP050040683 Correction Fluid Introduction __________ Correction Fluid is a highly opaque fluid that is used to 'paint' over typewritten or handwritten mistakes on paper. It is sold in small bottles about the size of a bottle fingernail polish. The correction fluid segment is predominantly North American. Market Structure, Size, and Growth North America is the largest consumer of office papers in the world. Overall, consumption of correction fluid is directly related to that of office papers. The correction fluid segment is a predominantly North American marketplace. Over 80% of all correction fluids consumed worldwide are sold in North America. 100 The Paper Mate Company (a subsidiary of Gillette), St. Paul, Minnesota, is the major producer in this segment with over 50% market share. Table 22 shows the Ti02 consumption in this segment. to increase. The segment has increased because people continue using correction fluid to correct their mistakes after printing computer generated documents. This segment continues to grow at 35% annually. TiQ2 Properties in the Correction Fluids Segment____________ ____________________ The Paper Mate Company purchases 100% of their TiO 2 supply from DuPont. Currently R-901 is used because of its dry-flat hiding ability and its relative . opacity. TiOz is loaded at levels of up to 30% by weight in correction fluid. Kronos 2160 is also used widely in Europe. Paper Mate is in the process of reformulating their correction fluid products because VOC's have become a concern. By 1992, producers will shift TiO 2 grades to DuPont's R-931. Table 22 Ti02 Use in Correction Fluid Ti02 Consumption (M tonnes) Latin America 0 North America 4 Europe 1 Asia Pacific 2 Total 7 Growth Rate NR 4% NR NR Overall, about 7.1M tonnes of TiO 2 are consumed in this segment worldwide. In North America approximately 80% or 4.0 M tonnes Ti02 are used in this application. Throughout the 1980's businesses computerized their offices and turned to word processing rather than conventional typewriters. Experts initially felt that the correction fluids segment would decrease as wordprocessing became more popular and the number of typewritten documents decreased. Surprisingly, the correction fluid segment continues DuPont Chemicals Marketing Research Page 25 05-0338-0030 DUP050040684 Electronics Introduction _______________________ "Miniaturization* is a predominant theme in the electronics segment. The goal of miniaturization is to create smaller, higher performing devices. As the segment matures, Ti02 requirements will decrease because less Ti02 is required for each device produced.101 The most important requirements for the electronics segment are: - purity of raw materials - increasing yield to permit lower pricing - decreasing production costs - mass productions^ In the electronics segment, Ti02 is Used for piezoelectric devices, dielectric layers in capacitors, and titanates. The major ceramic capacitor applications are in mainframe computers, telephones, microcomputers, and consumer electronics.103 In the United States market, the predominant Ti02 suppliers are TAM (a subsidiary of Cookson pigments) and National Lead. 104 These two producers account for over 80% market share in the ceramic powders market. TAM produces Ti02 by mixing TiCl with H^O. This Ti02 is known for its large particle size and poor dispersion Characteristics. Regardless, electronics manufacturers use TAM Ti02 because it is pure (contains no AL -ft 3).105 Market Structure, Size, and Growth Table 23 shows the Ti02 consumption in the high performance electronics segment. Companies involved with one or more facets of the advanced ceramics segment may range in size from the job shop to huge, multinational corporations. In the electronics segment Ti02 is found in hightech ceramics. Ti02 opportunities are limited to selective niches requiring fine powder feedstock. DuPont Chemicals Marketing Research Table 23 Ti02 Use in Electronics Ti02 Consumption (M. tonnes) Latin America 0 North America 2 Europe 2 Asia Pacific 1 Total 5 Growth Rate The market is small with about 5000 tons of Ti02 consumed worldwide. On average, Ti02 consumption in the United States is 2.2 M tonnes.106 In Japan, Fuji and Toho are the major suppliers of high performance Ti02. They supply 400-500 tons per year of aluminumfree product. 107 The segment is growing worldwide at 8% per year, Asia is a major player in this segment.108 In this market, Ti02 sells from $5.00-15.00 per pound. The high purity needed dictates the higher price. Atomergic Chemicals Corp, Bay State Abrasives, Kraft Chemical Company, TAM, Superior Technical Ceramics, and Whittaker, Clark, and Daniels all supply the high purity Ti02 business. 109 Ti02 Properties in the Electronics Segment ______ ____________________ Dielectric Applications: Only rutile Ti02, which decomposes at 1640 is used in dielectric purposes. Rutile grades are used in either pure form or with minor additions of various materials. Barium Titanate: BaTi03 (m.p, >15Q0C) has widespread used in the electronics segment because of its high dielectric Constant and piezoelectric properties. Since anything that will affect the crystal lattice of barium titanate will alter its dielectric properties, it is important that impurities (Si02, A1203, etc.) be controlled and maintained at comparatively low levels. Barium titanate ceramic products are used for applications in Underwater sonar, guide missiles, acoustic mines, ' " Page 26 05-0338-0031 DUP050040685 ultrasonic cleaning, measuring instruments, accelerometers, sound reproduction, etc. The most important H02 product characteristics in this segment are particle size and purity. Aluminum content is detrimental to manufacturing success in the high performance electronic segment In barium titanate applications, the type of Ti02 (rutile or anatase) is not as important as its purity, aggregation, and dispersion characteristics. 110 DuPont Ti02 is not suitable for electronics applications today because if its AI4O3 content; however, DuPont does have the ability to produce aluminum-free Ti02 that could be Used in this segment.111 DuPont needs to produce a high purity, low AI2O3 content Ti02 to he successful in the .electronics segment Regional Information Un it e d St a t e s a n d Ca n a d a TAM and. DuPont supply Ti02 to this seg ment. Ja p a n The key Japanese Ti02 suppliers to this marketplace are: Titan Kogyo and Toho Titanium. Other suppliers include: Fuji Titanium, Furukawa Mining, Ishihara Sangyo, and Teikoku KaJco.113 The key suppliers of Barium Titanate are: Kyoritsu Yogyo, and Fuji Titanium. _______ DuPont Chemicals Marketing Research Page 27 05-0338-0032 DUP050040686 Cosmetics Introduction ............. ................. The Pood and Drug Administration has defined cosmetic products as 'articles intended to be rubbed, poured, sprinkled on, introduced into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, prompting attractiveness, or altering appearance."114 Although one of the best self-regulated industries in the past, the cosmetics segment, in cooperation with the Food and Drug ad ministration, is placing even more emphasis on self-regulation. As a result, evaluation of ingredients is improving as is the safe and optimum use of cosmetics and hair care products.115 The need for Ti02 in cosmetics is heavily depen dent upon fashion trends. All cosmetics have a de gree of transparency or translucently depending the current fashion trend. 116 Current fashion trends are moving towards more translucent cosmetics. 117 Ti02 usage will decrease as a result of this shift. Ti02 is used in a multitude of Cosmetic products. Just to name a few: foundation, mask, mascara, cream concealer, lipstick, lip gloss, eye color, cheek color, loose powder, pressed powder, nail cover remover, etc.118 Table 24 lists selected cosmetic products and their Ti02 content by weight. In the products listed below, Ti02 is loaded at levels between 1 % and 46% . Table 24 Ti02 Used in Selected Cosmetics Products Cosmetic Product Caster Oil-Free Lipstick Long-Wearing Creamy Lipstick Basic Lipstick Soft Frost Eye-Shadow Compacted Eyeshadow Waterproof Iridescent Eyeliner Waterproof Special-Effects Mascara Waterproof Mascara Pressed Powder Rouge Cover Stick Pigmented Cover Cream Pearly Foundation Cream Face Mask Copper Suntan Cream Ti02 Use by Weight 6% 11% 6% 30% 2% 10% 1% 6% 46% 6% 2% 10% 4% 5% Market Structure, Size, and Growth Table 25 lists the Ti02 consumption in the cosmetics segment. Table 25 Ti02 Use in Cosmetics Ti02 Consumption (M tonnes) Latin America 0 North America 1 Europe 1 Asia Pacific 1 Total 3 Growth Rate During 1987 the worldwide sales of cosmetics and toilitries amounted for $70 billion at retail selling prices. The United States is the biggest single market with 30% of the world total. Japan is the second largest consumer of cosmetics and toiletries, representing 14% of the world market. Table 26 shows a worldwide breakdown of cosmetics consumption. DuPont Chemicals Marketing Research Page 28 05-0338-0033 DUP050040687 Table- 26 Cosmetics Consumed by Country Country United States Japan France West Germany Italy United Kingdom Rest of World Percent of All Cosmetics Purchased 30% 14% 9% 8% 6% 6% 27% Source: Cosmetics & Toiletries, Volume 103, September 1988, p. 98. The cosmetics segment consists of three major categories: cosmetics, fragrances, and toiletries. In the United States, the value of product shipments in 1989 is estimated at $16.7 billion, up 5.8 percent from 1988.119 The skin- and hair-care markets are the largest segments in the cosmetics segment. The ethnic market for products designed specifically for darker skin and special hair care is growing faster than the rest of the cosmetics segment. Table 27 shows breakdown of growth in the United States cosmetics segment. Table - 27 Growth in the United States Cosmetics Segment Growth/Sales in the Cosmetics Segment Growth Total Sales Skin Care 12.0% $3 billion Sun Care Hair Care 16.0% 8.0% $205 million $4 billion Ethnic Segment 12.0% $2 billion Source: 1990 US Industrial Outlook Three major suppliers service the cosmetics segment;: - Whittaker, Clark, & Daniels - Warner Jenkins DuPont Chemicals Marketing Research - H. Kohnstam. TiQ2 Properties in the Cosmetics Segment Cosmetics are becoming high-tech products. Research and development is aimed primarily at skin care and protection as Well as minimizing allergic response to ingredients. 120 Anatase grades of Ti02 are predominant in the cosmetics segment. Opacity is the most important property in this segment. Average loading for most products is 3-6%.121 The cosmetics segment has very strict guidelines for Ti02 use. The guidelines are outlined in United States Pharmacopeia (1990 Edition, Volume 22) and 21 CFR 73.575. All Ti02 is quality tested against these specifications. Table 28 Summarizes Ti02 requirements in the United States. Table - 28 Food & Drug Administration Specificationsfor Ti02 in Cosmetics, 99-100% pure by US Pharmacopeia standards. Less than .1 % Lead content Less than 2ppm Antimony Less than lppm Mercury Must conform to 21CFR 73.575___________ Regional Information As ia Pa c if ic Korea: Growth in the cosmetics has been limited in South Korea due to governmental requirements and restrictions. The Korean government only allows production for a limited number of products, such as eyebrow pencils and soft capsule preparations. As a result, there are only 56 cosmetic manufacturers in South Korean122 Page 29 05-0338-0034 DUP050040688 Sources Overall r DuPont Chemicals A. M. Baker - Devoted numerous hours to this study by providing project guidance, technical expertise, draft review, and training. Hubbard mid Lutz, TiQ2 Minor Markets Update, April 1979. DuPont Chemicals Marketing Research MR#: 7901 E, A. Bonanni, Ti02 Minor Markets Update. November 1983, DuPont Chemicals Marketing Research MR#: 8311 B. A. Murphy -- Literature Searches Business Information Center C. F. Brown -- Literature Searches A. M. Grillo -- Multi-client Studies ________ Specialty Segments (listed alphabetically) Adhesives and Sealants _________ _ People DuPont Chemicals Marty McKenzie -- Marshall Lab National Starch & Chemical John O'Rourke Professional Organizations Adhesives and Sealants Council (703)841-1112 Adhesives Manufacturing Association (312)644-6610 Publications Rubbers & Plastics News Adhesives Age Chemical Week Kline -- Extender and Filler Materials -- North America. Major Companies US Chemicals and Plastics Marson Marble Ceramics________ ________________ People DuPont Chemicals Marketing Research DuPont Chemicals Gerald K. Campbell - (216) 752-0211 Charlie Booth - Ex Station Ducom 695-2843 John Deitz Carl Chen - Jackson Labs Ducom 540-3175 Professional Organizations Institute of Ceramic Engineers (614)890-4700 Publications Ceramics Industry Update Chemicals Business Cosmetics_________ ______ Professional Organizations Cosmetic Industry Buyers and Suppliers Association (516)679-9120 American Beauty Association (305)736-7897 Kolmar Laboratories, Bill Hogan (914)856-5311 Publications Journal of the Society of Cosmetic Chemists Cosmetics and Toiletries Household and Personal Products Industry Major Companies Mary Kay Correction Fluids _________ People John Imes - DuPont Chemicals Electronics________ _________ People DuPont Chemicals John Deitz - Jackson Labs Ducom 540-3253 Howard ("Jake*) Jacobsen - Exp Station Ducom 540-4294 Professional Organizations Association of Electronics Manufacturers (202)475-4900 Publications Ceramics Industry Floor Coverings_____________ People DuPont Chemicals Joe Battin - DuPont Rep for Armstrong John Birmingham Professional Organizations Page 30 05-0338-0035 DUP050040689 Wood & Synthetic Flooring Institute (312) 449-2933 Resilient Floor Coverings Institute (301)340-8580 National Floor Products Company (205)766-0234 Publications Handbook of Contract Floor Covering Major Companies Armstrong -- Robert Trees (717) 397-0611 Leathers________________ _____________ Professional Organizations Leather Industries of America -- Frank Rutland Publications U.S, Industrial Outlook -- Leathers Leather Industries of America - Membership Directory and Buyers Guide Major Companies Rohm & Haas -- Nick DiCandelo Printing Inks _______________ People Cookston Pigments BiU Dusch - (704) 588-2020 Joe Loughney - (800) 932-0765 Ralph Edelman DuPont Chemicals Jim McNutt Horacio Ojeda Mary Gardner Ed Wandersee Harry Coker --x 49619 Carl Lanjderl - (714) 583-1677 Professional Organizations Lehigh University National Association of printing Inks Manufacturers Gravure Technical Association DuPont Boothwyn Printing Operation Publications Kline Guide to Printing Inks American Ink Maker Magazine The Printing Ink Handbook Printing World Chemical Marketing Reporter Major Companies Sun Chemicals -- Sam Gilbert (708)562-0550 BASF - Howard Ramsey DuPont Chemicals Marketing Research Roofing People DuPont Chemicals John Imes Steve Leung Rich Hinchman Publications Roofing, Siding, & Insulation (212)888-4354 Major Companies 3M (Source asked not to be identified) Rubbers and Elastomers ____________ Tires Professional Organizations Rubber Manufacturing Association (202)682-4860 National Tire and Retread Association (202)789-2300 International Tire re Association (203)677-7782 Akron Rubber Group Allen Gatzman - (216) 798-2237 Abdul Hadi - (216) 798-2236 Publications Chemical and Engineering News Rubber World (216)846-2122 Rubber & Plastics News Rubber & Plastics News II (202)662-7200 Elastomerics Athletic Shoes Professional Organizations Footwear Industries of America (202) 789-1420 Lee McKinely (technical information and industry contacts). Tracy Hoeffel (statistics on footwear production) International Footwear Association (202)737-5660 Shoe and Allied Trades Research Association (Europe) Steve Abott Oil 44 536 410000 Bryan Blackwell 01144 536 410000 Publications Footwear News -- (212) 741-4010 Page 31 05-0338-0036 DUP050040690 Textile Fibers .............. ................. People DuPont Fibers Dick Goodly JimSherrer Rita Cappell Chris Smith Myron Richardson Bob King DuPont Chemicals Becky Craft DuPont Imaging Ray Work -- Ducoin 992-2011 Professional Organizations Textile Research Institute (609)924-3150 Textile Fibers By-Products Association (704)527-5593 American Association of Textile Chemists (919)549-8141 Publications DuPont Chemicals Marketing Research MR#:91-4. Screen Printing Magazine Major Companies DuPont DuPont Chemicals Marketing Research Page 32 05-0338-0037 DUP050040691 Footnotes DuPont Chemicals Marketing Research MR#:914 European Ti02 Study 2AmericanInk Maker, Selected articles from 1990. ^Chemical Marketing Reporter, Inks and Dyes: Kaleidoscopic Change September 24,1990. ^American Ink Maker, September 1990, p. 13. ^American Ink Maker, September 1990, p. 13. 6American Ink Maker, September 1990, p. 13. 7F. Alan Ferguson and Barbara Heydorn, lilatuum Dioxide Pigments. May 1986, p. 78S.5003F. ^aint and Coatings Industry, The Global Market for Titainim Dioxide, August 22, 1990, p. S28, 538. BjIl Dusch, Sun Chemical (??????) Check this reference to be sure. Ask Connie Hubbard. 1<Carl Landed, (714) 583-1677. 11Pocket Pal -- A Graphic Arts Production Handbook. International Paper Company, pp. 24-30. DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study 13Bill Dusch 14Bill Dusch 1^DuPont Japan -- Ryo Kuroda 1^DuPont Chemicals (Mexico) -- Horacio Ojeda l7The National Association of Printing Ink Manufactureers(NAPIM), The Printing Ink Handbook. 4th Edition, p. 37. tSKline, 1989 Extenders and Filler Minerals. Volume 2, p. 309. ,9Hull & Company 20F. Alan Ferguson and Barbara Heydorn, Titanium Dioxide Pigments. May 1986, p, 788.5003F. 21American Ink Maker, State of the Industry. August 1990, p. 62. 2%apan ChemicalWeek, May 17, 1990. 23Farbe & Lack (German), Japan: Rekord fuer TiQ2-Absatz. May 1990, p. 376. 24Mormations Chimie, Encres d'irhprimerie: Maintenir le Cap. July 1990, p. 84/ 25DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study DuPont Chemicals Marketing Research 26P, Alan Ferguson and Barbara Heydorn, Titanium Dioxide Pigments. May 1986, p. 788.5003C. 27Elastomerics, TiQ2 in Rubber Goods to Hit 9.000 Tons. May 1989, p. 19. 28Kline, 1987 Extender and Filler Materials - North America, p, 363. 29Elastomerics, TiQ2 in Rubber Goods to Hit 9.O0O Tong. May 1989, p. 19. 3CDuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study 31F. Alan Ferguson and Barbara Heydorn, Titanium Dioxide Pigments. May 1986, p. 788.5003C. 32DuPont Chemicals Marketing Research MR#: 91-4 European Ti02 Study 33Akrpn Rubber Group, Allan Gatzman (216) 7982237. 34Rubber & Plastics News, 1990s Supply. Demand Changing the Tire Industry, April 3o, 1990, p. 9. 35Rubber & Plastics News, '90s May Begin Specialty Polymers Era. January 22, 1990, p. 15. 36Akron Rubber Group, Abdul Hadi (216) 7982336. Rubber & Plastics News, `90s Mav Begin Specialty Polymers Era January 22, 1990, p. 15. 38Bryan Blackwell -- SATRA 39Lee McKinely -- Footwear Industries of America 4<t.K. Park - DuPont Chemicals 41Kline, 1989 Extender and Filler Materials - North America p. 314. 42F. Alan Ferguson and Barbara Heydorn, Titanium Dioxide Pigments. May 1986, p. 788.5003D. 43Japan Chemical Week, Production. Deliveries of Titanium in Fiscal '89 Set Record. May 31, 1990, p. 2. 44I. K. Park -- DuPont Chemicals 45F. Alan Ferguson and Barbara Heydorn, Titanium Dioxide Pigments. May 1986, p. 788.5003G. 46Robert Trees -- Armstrong World, Inc. 47The Floor Covering Institute 4Robert Trees -- Armstrong World, Inc. 49Kronos Guide to tilO Use. S(Chemical Week, Soft Markets Bring Hard Times to Fibers. November 7, 1990, p. 23. Page 33 05-0338-0038 DUP050040692 51DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study S2Jim Sherrer - DuPont Fibers 53Jim Sherrer ~ DuPont Fibers S4DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study 53Samuel Taylor (DuPont Chemicals) and Mike DelCamp (Van Waters & Rogers) S6Jim Sherrer -- DuPont Fibers S7Chemical Engineering Progress, The Chemical Industry: Past and FuturePerfonnance. July 1988, p. 56-66, Chemical Week, Adhesives & Sealants. A Dynamic Industry Meets New Demands, March 14, 1990, p. 20. 59The Rauch Guide to the U.S. Adhesives and Sealants Industry, p. 1. ^Chemical Week, Adhesives & Sealants. A Dynamic Industry Meets New Demands. March 14, 1990, p. 20. 61The Rauch Guide to the U.S. Adhesives and Sealants Industry, p. 2. 62The Rauch Guide to the U.S. Adhesives and Sealants Industry, p. 3. 63DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study 6lKline, 1987 Extender and Fdler Materials - North America, p. 368. 65Kline, 1987 Extender and Filler Materials - North America p. 368. 66F. Alan Ferguson and Barbara Heydom, Titanium Dioxide Pigments. May 1986, p. 788.5003E. 67DuPont Chemicals -- Gerald K. Campbell 68U.S. Industrial Outlook for Construction Materials * 1990, Chapter 7, p. 13. 69F. Alan Ferguson and Barbara Heydom, Titanium Dioxide Pigments. May 1986, p. 788.5003E. 7CGerald K. Campbell -- DuPont Chemicals 71GeraId K. Campbell -- DuPont Chemicals Ajerald K. Campbell -- DuPont Chemicals 73Gerald K. Campbell -- DuPont Chemicals 74Ceramic Industry, A Guide to Products and Services. January 1990, p. 116. 7^3erald K. Campbell -- DuPont Chemicals DuPont Chemicals Marketing Research "^Chemical Week, Adhesives & Sealants. A Dynamic Industry Meets New Demands. March 14,1990, p. 20. 77Dwight Holzen -- DuPont Chemicals '^Gerald K. Campbell -- DuPont Chemicals DuPont Chemicals (Mexico) -- Horacio Ojeda 8<-bfick DiCandalo -- Robm& Haas slDuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study 82Frank Rutland - Leather Industries of America 83United States Department of Commerce, IIS Industrial Outlook p. 37-4. 84Nick DiCandalo -- Rohm & Haas 8SNick DiCandalo -- Rohm & Haas 86DuPont Chemicals Marketing Research MR#:9l-4 European Ti02 Study 87DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study 88DuPont Chemicals (Mexico) -- Horacio Ojeda 8?DuPont Chemicals (Mexico)--Horacio Ojeda 90U.S. Industrial Outlook 1991 -- Leather and Leather Products, Chapter 35, p. 1. 91John Imes -- DuPont Chemicals 9%teve Leung - DuPont Chemicals 93John Imes -- DuPont Chemicals 94Jobn Imes -- DuPont Chemicals 95John Imes -- DuPont Chemicals 9%teve Leung -- DuPont Chemicals 97Steven J. Leung -- DuPont Chemicals -- Chestnut Run. 98John Imes -- DuPont Chemicals 99G. M. Pettyjohn -- DuPont Chemicals I00John Imes -- DuPont Chemicals 101Jake Jacobsen -- DuPont Chemicals -- Jackson Lab 102Advanced Ceramics, Advanced Ceramics: '90's Global Business Outlook. April 1999, p. 53-57. 103DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study I04DuPont Chemicals Marketing Research MR#:91-4 European Ti02 Study 105John Deitz -- DuPont Chemicals 106John Deitz -- DuPont Chemicals 107Jake Jacobson -- DuPont Chemicals -- Jackson Lab 108Advanced Ceramics, Advanced Ceramics: '90!s Global Business Outlook April 1990, p. 54. Page 34 05-0338-0039 DUP050040693 10^Ceramic Industry, September 15, 1990, p. 77. u<5ohn Deitz -- DuPont Chemicals 111Jake Jacobsen -- DuPont Chemicals It^Tohn Deitz -- DuPont Chemicals ll3DuPont Chemicals Marketing Research MR#:9l-4 European Ti02 Study 11``Mary Kay Consumer Guide to Cosmetic Ingredients. 11United States Department of Commerce, US Industrial Outlook, p. 37-4. 116Tony Mentlick -- Mary Kay Cosmetics 1 12Bill Hogan -- Kolmar Labs, Port Jervis, New York U8Mary Kay Consumer Guide to Cosmetic Ingredients. 119United States Department of Commerce, US Industrial Outlook, p. 37-4. 120CJnited States Department of Commerce, US Industrial Ouflook p. 37-4. 121Bill Hogan -- Kolmar Labs, Port Jervis, New York 122Cosmetics &Tioletries, Cosmetic Market in Korea. Volume 103, September 1988, p. 118. DuPont Chemicals Marketing Research Page 35 05-0338-0040 DUP050040694