Market insulating materials for pipes

Market insulating materials for pipes

General characteristics of the market•Pipe industry is one of the important segment of the metallurgical complex Russia. This is metall-roll Russia indicator of quality and qualifier most basic level of our economy – oil and gas complex.

•At the moment the length of pipelines in Russia is about 2 million km exterior and 14 million km inland. According to this indicator Russia ranks second after the United States. In this pipeline system in Russia is heavily worn. Some 50 thousand km is in critical state.

•About 40% of the total pipeline system utilities require major repair or replacement.

•More than 70% of pipelines in Russia are made of steel and only 30% - of non-metallic materials.

Market parameters in Russia• Demand for pipes in 2007 was 8

million tons

• Demand for pipes by 2010 is projected at 9.5 million tons (20% growth rate)

• Capacity market is estimated at $ 2.5 milliard (2007)

Characteristics of the individual segments

In 2007, the most attractive types of pipes and growth of demand and capacity for the segment are as follows:

• Large diameter pipes. Demand for them is under high growth (with a rate of over 10% per year). The need for them could reach 2.5 million tons. Competition at a level far above average.

• Pipes rifled for the oil and gas industry. They also experiencing high growth in consumption (at least 5% per year) and growing competition from the entry of new capacities. The high added value in this segment of pipe attracts manufacturers.

• Most market size - 2.3 million tons observed in the segment of welded pipes of small and medium diameters at the continuing high rate of construction development sector of the economy. Low quality pipes, small costs in production capacity attracted a large number of investors. In Russia, more than 10 companies produce this kind of pipes.

Examples of pipe insulation

Types of pipe insulation

• The isolation of extruded polyethylene (external)

• Polyurethane foam isolation

(external)

• Varnishes isolation (internal)

The structure of isolation and circuit coating

A steel pipeEpoxy primersAdhesivePolyethylene

Manufacturers of pipe insulation• BOREALIS, Finland (control 90% of

market)• BASELL, German• DOW CHEMICAL• Du Pont, Canada• MPB, Italy• KPIC, Korea• SK Corp., Korea

Production of polyethylene to insulate the steel pipes

The line granulation polyethylene pipes to insulate

Containers for entering into extruder various components

Extruder characteristics

•Two-screw extruder, compounding materials injection through batcher from 0.1 to 1.5% of the transmitted mass

•Output 1 200 kg per hour

•Ratio length to diameter more than 30:1

•4 containers (or more) for polyethylene downloads