plastic pipes and shapes market
Paper, Plastics, Rubber, Wood And Textile Manufacturing

Emerging Trends In The Plastic Pipes And Shapes Market

The plastic pipes and shapes market consists of sales of plastic pipes and pipe fittings, and plastics profile shapes such as rods, tubes and non-rigid plastic sausage casings. Businesses in the plastic pipes and shapes industry use polymers and resins as raw materials which are primarily sourced from polymer suppliers. An emerging trend in the market has been the consolidation of the market. The market for plastic pipes and shapes has seen a significant increase in mergers and acquisitions over the last few years. Such collaborations are mainly aimed at increasing the product range and distribution networks of plastic pipes manufacturers. In January, 2018, Mexichem, a prominent Mexican producer of plastic pipes, acquired Sylvin Technologies Inc, a niche polyvinyl chloride (PVC) compounds manufacturer based in Pennsylvania, USA, for $39 million on a debt free cash free valuation. The acquisition allowed Mexichem to expand its products’ presence in the USA market and downstream their processes in specialty products. Similarly, in 2017, Advanced Drainage System, a USA-based manufacturer of high performance thermoplastic corrugated pipe, announced its acquisition of Plastic Turbing Industries, an American manufacturer of HDPE pipes and related accessories, for $9.5 million. Through this acquisition, Advanced Drainage System increased their customer base and capacity in the growing Southeast region of the USA.

Other major M&A deals in the plastic pipes and shapes market include those completed by Aliaxis SA, Aegion Corporation, and GF Piping Systems. In July 2018, Aliaxis SA, a Belgium-based manufacturer and distributor of advanced plastic piping systems, acquired Ashirvad Pipes Pvt. Ltd, an Indian pipe manufacturing company, for an undisclosed amount. The acquisition helped Aliaxis SA to position itself in the Indian market and to expand activities within India.

The global plastic pipes and shapes market is expected to grow from around $113 billion in 2019 to $137 billion in 2022 at a compound annual growth rate (CAGR) of 6.5%.

plastic pipes and shapes market trends

Global plastic pipe, pipe fitting, and unlaminated plastic profile shapes manufacturers are investing heavily in developing countries, such as India, China, Brazil, and African countries, to seek opportunities in untapped market segments, expand production capacity, and cater to the growing demand from the rising population. In 2017, DPI Plastics, one of the leading polyvinyl chloride (PVC) and high-density polyethylene (HDPE) water reticulation and drainage pipe and fitting system manufacturers, announced plans to open its new Germiston-based manufacturing plant in South Africa. The plant is expected to manufacture HDPE pipes ranging from 16 mm to 1000 mm diameters. By launching this plant, DPI Plastics aims to become one of the major players in the South African HDPE market.

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