World Abrasives Industry

• Publication date: January 2010

Global demand to climb 5.9% yearly through 2013 Global demand for abrasive products is forecast to climb 5.9 percent annually through 2013 to $38.2 billion. Market advances in developing parts of the Asia/ Pacific region, the Africa/Mideast region, Eastern Europe and Latin America will considerably outperform demand in the US, Western Europe and Japan. China, India and Russia will post some of the biggest sales gains. China, which...

Global demand to climb 5.9% yearly through 2013

Global demand for abrasive products is forecast to climb 5.9 percent annually through 2013 to $38.2 billion. Market advances in developing parts of the Asia/ Pacific region, the Africa/Mideast region, Eastern Europe and Latin America will considerably outperform demand in the US, Western Europe and Japan. China, India and Russia will post some of the biggest sales gains. China, which recently surpassed the US to become the largest national market for abrasives, will account for two-thirds of all additional product demand through 2013. Sales advances are also expected to be healthy in Indonesia, Thailand and Turkey. Market conditions will be much less favorable in developed parts of the world, dampened by relatively sluggish durable goods manufacturing activity. Abrasives demand in the US, Italy and France will expand less than one percent annually through 2013, while annual product sales are expected to decline in Germany, Japan and the UK. However, higher per capita incomes will result in increased consumer expenditures for a variety of products made using abrasives, providing some offsetting support. The sales outlook is somewhat stronger for Canada, South Korea and Spain due to comparatively healthy growth in manufacturing output in these nations.

Nonmetallic abrasives to outpace metallic products
Overall abrasives demand is dominated by nonmetallic products, which include bonded abrasives, coated abrasives, and loose abrasive grains and powders. Nonmetallic abrasives are also expected to register larger sales gains through 2013 than metallic products such as steel shot and grit, and wire brushes and wheels. Loose abrasive grains and powders will post the strongest increases of any major product type, bolstered by their use in several markets with above-average growth prospects, including semiconductor manufacturing and microdermabrasion, and an ongoing trend toward the use of higher value products like specialty silica and synthetic diamond. Bonded abrasives demand will climb at the next fastest rate, benefitting from strong sales growth in China and other fast-growing developing markets where bonded abrasives account for the largest single share of sales, as well as by increased use of superabrasive products. However, coated abrasives will remain the biggest product category on a global basis, supported by an ongoing trend toward the use of more sophisticated manufacturing processes, in which products are machined closer to their final shape, boosting use of coated abrasives in finishing operations.

Transportation equipment to be fastest growing durable goods market

Durable goods manufacturing is far and away the largest market for abrasives, accounting for more than three-quarters of all product demand. Transportation equipment will record the largest gains of any major durable goods market through 2013, bolstered by an expected recovery in motor vehicle and motorcycle industry production as world economic conditions continue to improve. Demand for abrasives used in machinery manufacturing will also expand at an above-average pace, spurred by growing use of more advanced, higher priced items such as synthetic diamond and cubic boron nitride grinding wheels, and the presence of some fast growing applications in this market category, including wind power equipment.

Study coverage

This new industry study, World Abrasives presents historical demand data (1998, 2003 and 2008) plus forecasts for 2013 and 2018 by product, market, world region and for 22 major countries. The study also considers key market environment factors, evaluates company market share and profiles 39 industry competitors worldwide.

Global Chemical Industry

TABLE OF CONTENTS

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
World Economic Overview 5
Recent Historical Trends 5
World Economic Outlook 8
World Manufacturing Outlook 11
World Gross Fixed Investment Trends 14
World Motor Vehicle & Motorcycle Production 16
Pricing Patterns 20
Abrasive Properties 23
Technological Trends 26

III. SUPPLY & DEMAND 29

General 29
Regional Overview 30
Demand 30
Production 36
International Trade 38
Demand by Product 40
Nonmetallic 41
Coated 43
Cloth 45
Paper & Other 46
Bonded 48
Conventional 49
Superabrasive 50
Loose Grains & Powders 52
Metallic 55
Demand by Market 57
Durable Goods Manufacturing 59
Machinery 61
Transportation Equipment 63
Fabricated Metals 65
Electrical & Electronic Equipment 68
Other 69
Cleaning & Maintenance 72
Other 74
Abrasive Raw Material Demand 76
Manufactured Minerals 79
Natural Minerals 80
Metallic Materials 81

IV. NORTH AMERICA 82

General 82
Abrasives Supply & Demand 83
Abrasives Outlook & Suppliers 86
United States 88
Canada 94
Mexico 100

V. WESTERN EUROPE 106

General 106
Abrasives Supply & Demand 108
Abrasives Outlook & Suppliers 111
Germany 113
Italy 118
France 123
United Kingdom 129
Spain 134
Other Western Europe 140
Austria 147
Switzerland 148
Netherlands 149
All Other 150

VI. ASIA/PACIFIC 151

General 151
Abrasives Supply & Demand 153
Abrasives Outlook & Suppliers 156
China 158
Japan 164
South Korea 170
India 176
Thailand 182
Taiwan 187
Indonesia 192
Other Asia/Pacific 197

VII. OTHER REGIONS 204

Latin America 204
Brazil 210
Other Latin America 216
Eastern Europe 222
Russia 229
Other Eastern Europe 235
Poland 242
All Other 243
Africa/Mideast 244
Turkey 250
Other Africa/Mideast 255

VIII. INDUSTRY STRUCTURE 262

General 262
Industry Composition 263
Market Share 266
Saint-Gobain 266
3M 267
Other Leading Suppliers 268
Product Development & Manufacturing 268
Marketing & Distribution 271
Cooperative Agreements 273
Mergers & Acquisitions 276
Company Profiles 279
Almatis GmbH 280
Asahi Diamond Industrial Company Limited 282
August Rueggeberg GmbH & Company KG 284
Bosch (Robert) GmbH 287
Cabot Microelectronics Corporation 290
Carborundum Universal Limited 293
Church & Dwight Company Incorporated 296
COMET umetni brusi in nekovine doo 299
CUMI, see Carborundum Universal
Deerfos Company Limited 301
Diamant Boart, see Husqvarna
Diamond Innovation, see Sandvik
DRONCO AG 303
Element Six 305
Epoch Material, see Cabot Microelectronics
Ervin Industries Incorporated 308
Fuji Star Coated Abrasives, see Sankyo Rikagaku
Fujimi Incorporated 310
Global Material Technologies Incorporated 312
Henan Huanghe Whirlwind Company Limited 315
Hermes Schleifmittel GmbH & Company KG 317
HuBei Yuli Abrasive Belt Group Company Limited 319
Husqvarna AB 321
Iljin Diamond Company Limited 325
Imerys SA 327
JacksonLea, see Jason
Jason Incorporated 330
Jingri Cumi Super Hard Materials, see Carborundum
Universal
Kinik Company Limited 334
Klingspor AG 336
KWH Group Limited 339
Luga Abrasive Plant 342
Nanyang Zhongnan Diamond Company Limited 343
Nippon Resibon Corporation 345
Noritake Company Limited 347
OAO Volzhky Abrasive Works, see Carborundum
Universal
Osborn International, see Jason
Radiac Abrasives, see TYROLIT Schleifmittelwerke
Swarovski
Rappold Winterthur Technologie, see Winterthur
Technologie
Saint-Gobain 350
SAIT Abrasivi SpA 355
Sandvik AB 358
Sankyo Rikagaku Company Limited 362
Sealeze, see Jason
Shinhan Diamond Industrial Company Limited 365
sia Abrasives Industries, see Bosch
SlipNaxos, see Winterthur Technologie
Sterling Abrasives, see Carborundum Universal
3M Company 367
Treibacher Schleifmittel, see Imerys
TYROLIT Schleifmittelwerke Swarovski KG 371
Vereinigte Schmirgel-und Maschinen-Fabriken AG 375
Wendt Holding, see Winterthur Technologie
Wendt India, see Carborundum Universal and Winterthur
Technologie
Wheelabrator Allevard Group 377
Winterthur Technologie AG 381
Yicheng Silicon Carbide Products Company Limited 386
Other Companies Mentioned in Study 387

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 World Gross Domestic Product by Region 11
2 World Manufacturing Value Added by Region 13
3 World Gross Fixed Investment by Region 16
4 World Motor Vehicle & Motorcycle Production by Vehicle
Type & Region 20
5 World Abrasives Price Deflators 22

SECTION III -- SUPPLY & DEMAND

1 World Abrasives Demand by Region 33
2 World Abrasives Shipments by Region 37
3 World Abrasives Net Exports by Region 39
4 World Abrasives Demand by Product 40
5 World Nonmetallic Abrasives Demand by Product & Region 42
6 World Coated Abrasives Demand by Product & Region 44
7 World Bonded Abrasives Demand by Product & Region 49
8 World Loose Abrasive Grains & Powders Demand by Region 54
9 World Metallic Abrasives Demand by Region 57
10 World Abrasives Demand by Market 58
11 World Durable Goods Manufacturing Abrasives Demand
by Market & Region 60
12 World Machinery Manufacturing Abrasives Demand
by Region 62
13 World Transportation Equipment Manufacturing Abrasives
Demand by Region 65
14 World Fabricated Metals Manufacturing Abrasives Demand
by Region 67
15 World Electrical & Electronic Equipment Manufacturing
Abrasives Demand by Region 69
16 World Demand for Abrasives Used in Other Durable Goods
Manufacturing Markets by Region 71
17 World Cleaning & Maintenance Abrasives Demand by Region 73
18 World Demand for Abrasives Used in Other Markets by Region 76
19 World Abrasive Raw Material Demand by Type & Region 78

SECTION IV -- NORTH AMERICA

1 North America - Abrasives Supply & Demand 83
2 North America - Abrasives Demand by Product 85
3 North America - Abrasives Demand by Market 88
4 United States - Abrasives Supply & Demand 90
5 United States - Abrasives Demand by Product 92
6 United States - Abrasives Demand by Market 94
7 Canada - Abrasives Supply & Demand 96
8 Canada - Abrasives Demand by Product 98
9 Canada - Abrasives Demand by Market 99
10 Mexico - Abrasives Supply & Demand 101
11 Mexico - Abrasives Demand by Product 103
12 Mexico - Abrasives Demand by Market 105

SECTION V -- WESTERN EUROPE

1 Western Europe - Abrasives Supply & Demand 108
2 Western Europe - Abrasives Demand by Product 110
3 Western Europe - Abrasives Demand by Market 112
4 Germany - Abrasives Supply & Demand 114
5 Germany - Abrasives Demand by Product 116
6 Germany - Abrasives Demand by Market 118
7 Italy - Abrasives Supply & Demand 120
8 Italy - Abrasives Demand by Product 121
9 Italy - Abrasives Demand by Market 123
10 France - Abrasives Supply & Demand 125
11 France - Abrasives Demand by Product 127
12 France - Abrasives Demand by Market 129
13 United Kingdom - Abrasives Supply & Demand 131
14 United Kingdom - Abrasives Demand by Product 132
15 United Kingdom - Abrasives Demand by Market 134
16 Spain - Abrasives Supply & Demand 136
17 Spain - Abrasives Demand by Product 138
18 Spain - Abrasives Demand by Market 140
19 Other Western Europe - Abrasives Supply & Demand 142
20 Other Western Europe - Abrasives Demand by Product 144
21 Other Western Europe - Abrasives Demand by Market 146
22 Other Western Europe - Abrasives Supply & Demand
by Country 147

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific - Abrasives Supply & Demand 153
2 Asia/Pacific - Abrasives Demand by Product 155
3 Asia/Pacific - Abrasives Demand by Market 157
4 China - Abrasives Supply & Demand 160
5 China - Abrasives Demand by Product 162
6 China - Abrasives Demand by Market 164
7 Japan - Abrasives Supply & Demand 166
8 Japan - Abrasives Demand by Product 168
9 Japan - Abrasives Demand by Market 170
10 South Korea - Abrasives Supply & Demand 172
11 South Korea - Abrasives Demand by Product 174
12 South Korea - Abrasives Demand by Market 176
13 India - Abrasives Supply & Demand 178
14 India - Abrasives Demand by Product 180
15 India - Abrasives Demand by Market 181
16 Thailand - Abrasives Supply & Demand 183
17 Thailand - Abrasives Demand by Product 185
18 Thailand - Abrasives Demand by Market 187
19 Taiwan - Abrasives Supply & Demand 189
20 Taiwan - Abrasives Demand by Product 190
21 Taiwan - Abrasives Demand by Market 192
22 Indonesia - Abrasives Supply & Demand 194
23 Indonesia - Abrasives Demand by Product 195
24 Indonesia - Abrasives Demand by Market 197
25 Other Asia/Pacific - Abrasives Supply & Demand 199
26 Other Asia/Pacific - Abrasives Demand by Product 201
27 Other Asia/Pacific - Abrasives Demand by Market 203

SECTION VII -- OTHER REGIONS

1 Latin America - Abrasives Supply & Demand 206
2 Latin America - Abrasives Demand by Product 208
3 Latin America - Abrasives Demand by Market 210
4 Brazil - Abrasives Supply & Demand 212
5 Brazil - Abrasives Demand by Product 214
6 Brazil - Abrasives Demand by Market 216
7 Other Latin America - Abrasives Supply & Demand 218
8 Other Latin America - Abrasives Demand by Product 220
9 Other Latin America - Abrasives Demand by Market 222
10 Eastern Europe - Abrasives Supply & Demand 224
11 Eastern Europe - Abrasives Demand by Product 226
12 Eastern Europe - Abrasives Demand by Market 228
13 Russia - Abrasives Supply & Demand 231
14 Russia - Abrasives Demand by Product 233
15 Russia - Abrasives Demand by Market 235
16 Other Eastern Europe - Abrasives Supply & Demand 237
17 Other Eastern Europe - Abrasives Demand by Product 239
18 Other Eastern Europe - Abrasives Demand by Market 241
19 Other Eastern Europe - Abrasives Supply & Demand
by Country 242
20 Africa/Mideast - Abrasives Supply & Demand 246
21 Africa/Mideast - Abrasives Demand by Product 248
22 Africa/Mideast - Abrasives Demand by Market 250
23 Turkey - Abrasives Supply & Demand 252
24 Turkey - Abrasives Demand by Product 253
25 Turkey - Abrasives Demand by Market 255
26 Other Africa/Mideast - Abrasives Supply & Demand 257
27 Other Africa/Mideast - Abrasives Demand by Product 259
28 Other Africa/Mideast - Abrasives Demand by Market 261

SECTION VIII -- INDUSTRY STRUCTURE

1 Revenue Data for Selected Abrasive Product
Manufacturers, 2008 265
2 Selected Cooperative Agreements 274
3 Selected Acquisitions & Divestitures 278

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 World Manufacturing Value Added by Region, 2008 14
2 World Abrasives Pricing Trends, 1998-2018 23
3 Hardness of Selected Abrasives 25

SECTION III -- SUPPLY & DEMAND

1 World Abrasives Demand by Region, 2008 34
2 Increase in Annual Abrasives Demand from 2008 to 2013
by Region 34
3 World Abrasives Demand Projected 2008-2013 Annual Rate
of Growth 35
4 World Abrasives Shipments by Region, 2008 38
5 World Abrasives Demand by Product, 2008 41
6 World Abrasives Demand by Market, 2008 58
7 World Abrasive Raw Material Demand by Type, 2008 79

SECTION IV -- NORTH AMERICA

1 North America - Abrasives Demand by Country, 2008 86

SECTION V -- WESTERN EUROPE

1 Western Europe - Abrasives Demand by Country, 2008 111

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific - Abrasives Demand by Country, 2008 156

SECTION VII -- OTHER REGIONS

1 Eastern Europe - Abrasives Demand by Country, 2008 227

SECTION VIII -- INDUSTRY STRUCTURE

1 World Abrasives Market Share by Company, 2008 266