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North American Demand for Natural Fibers in Plastic Composites from 15% to 50%

6 June 2000

Significant Markets Emerging in Building Products, Automotive Parts, Railroad Ties, Flower Pots, Furniture, and Marine Piers

    LITTLE FALLS, N.J. - Natural fibers, used to fill and reinforce both 
thermoplastics and thermosets, represent one of the fastest-growing types of 
polymer additives.  Based on a market study currently being conducted by Kline &
Company, forecast North American demand for both wood and agricultural fiber 
used as plastic additives ranges from 15% to 20% per year in automotive 
applications, to 50% or more per year in selected building products.

    Preliminary estimates place the North American market for natural fibers
in plastic composites at 400 million lb.  Three-quarters of this volume is
wood fiber; the remainder is comprised of such long agricultural fibers as
kenaf, jute, hemp, flax, and sisal.

    Wood fiber is primarily used in such building products as composite
decking, window and door profiles, decorative trim, and railings.  According
to Carl Eckert, senior vice president at Kline, "At loading levels that range
from 30% to 70% by weight, 40 to 400 mesh wood fiber produces a composite with
excellent aesthetics and better moisture, crack, and warp resistance compared
to wood."  Composite decking is typically made from HDPE or LDPE combined with
40 to 60 mesh wood fiber, while window and door profiles are primarily 80 to
200 mesh wood fiber compounded with PVC.

    The current price of wood fiber averages 10c a lb, making it comparable to
such low-priced fillers as calcium carbonate.  "The only problem is that the
growth in demand is expected to be so fantastic that availability of wood
fiber might become a problem," according to Eckert.

    Long natural fibers, including flax, kenaf, and hemp are also finding
increasing use, but here the applications are mostly in automotive composites.
Typical long fiber composites include such interior components as door trim,
package trays, and rear shelves.  These composites are primarily compression-
molded polypropylene where the loading of the natural fiber is 50%.

    The primary driving force for these new automotive materials is economics,
since natural fibers are currently priced at one-third of the cost of
fiberglass or less.  Other reasons for their increasing use include:

    -- Weight reduction - these fibers are half the weight of fiberglass
    -- Recycling - natural fiber composites are easier to recycle
    -- Green movement - desire for natural products

    Although polyethylene, PVC, and polypropylene are the dominant polymers
utilizing natural fibers, their use is also common in phenolics, polyester,
polystyrene, and several other polymer systems.  In addition, uses are not
limited to building products and automotive parts.  Significant markets are
also emerging in such applications as railroad ties, flower pots, furniture,
and marine piers.

    Kline's study, Opportunities for Natural Fibers in Plastic Composites,
1999, assesses the current and forecast market for a variety of natural fibers
in all types of plastic applications, including building products, automotive,
and industrial/consumer applications.  The study will also profile leading
producers of both fibers and composites and identify growth opportunities.

    Established in 1959, Kline is an international business consulting firm
serving the chemicals and materials industries.  The company is considered the
leading consultancy on reinforcements and fillers for plastics and composite
materials.