Rotomoulding in Asia

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Rotational Molding in Asia

(Published in Plastics and Rubber Asia, March 2003, www.plasticsandrubberasia.com)

Rotational molding is a plastics molding process ideally suited to producing hollow products ranging in size from complex multi-piece fuel tanks to large-scale storage tanks. With low capital requirements (equipment and mold costs are typically a fraction of injection or blow molding projects) rotational molding is the ideal molding process for developing markets where water and sewage systems are still widely in need. With the added advantage of being a process ideally suited to making complex hollow parts for a wide range of markets, rotational molding fits well with the approach of entrepreneurial and creative people.

Opportunity

Despite being around for over 40 years, in the major markets of the US and Europe, rotational molding is still regarded as being in something of an infancy in terms of true technological development. The industry is expected to continue to grow strongly but it’s potential in developing markets is even greater, particularly in terms of providing products that help to improve access to water and sanitation for growing populations. The traditional path for rotational molding to develop in a new country often follows the products listed below:

Water tanks
Sewage / septic tanks / toilet systems
Road safety barriers / children’s toys / agricultural products
Chemical containers / industrial drums
Custom molding / general industrial OEM products

There are quite a number of molders already active in India, Malaysia, Thailand, Indonesia, Korea, Japan, Taiwan, China and other countries. However, with enormous populations and the need to develop infrastructures, there is considerable room in these markets for many more. China, for example, has a substantial need for improvements around Beijing ahead of the Olympics in 2008. Indeed any country with a need to improve the supply and use of water can benefit from the simplicity with which rotational molding operations can be established. 

While rotational molding offers a low-cost approach to producing plastic products, there are some challenges to growth. These include access to materials, good quality molds, support for machinery, access to technology and local support through molding associations. Without these key elements, the vanguard of molders will struggle and repeat many of the hard learned lessons already won by molders in other countries. Recent experience of molders producing water tanks in Taiwan has shown that molders competing fiercely on price at the expense of product quality can destroy a market and undermine consumer confidence in an entire process. Cooperation and access to external experience can help avoid these problems.

Low Cost Approach

Rotational molding offers one of the lowest cost entry methods to the manufacturing of small to large plastic parts. It attracts many entrepreneurs who often build their own low cost equipment and molds. However, even when purchased through established equipment manufacturers, these are typically a fraction of the cost of competing industries (molds, for example, are often less than 10% of equivalent injection molding or blow molding tools).

The main material used for rotational molding is polyethylene, primarily due to its ease of processability. A relatively low cost material, it offers a wide range of properties including good chemical resistance and toughness making it ideal for a host of containment and industrial products.

Many products in established western markets are replicated in a variety of modified forms around the world. This is an initial ‘copycat’ mode that can be seen wherever rotational molding begins in a new country. However, this rapidly fades as the search for more specific local products and custom-molded products develops. Markets mature and molders must seek new products and alternatives to sustain their businesses.

Challenges to Growth

There are a number of significant challenges to growth in new markets. If the industry can address these quickly through development of local sources or by contact with international suppliers, much of the pain of early growth may be alleviated.

1. Materials

The availability of raw materials that work properly in rotational molding can be a major restriction on growth. Mainstream suppliers of materials to the injection and blow molding markets do not typically understand the needs of rotational molding materials and are often not geared for handling the numerous small accounts that rotational molding markets typically develop from. Access to indigenous, quality materials that can be supplied reliably is critical. International suppliers such as ICO Polymers are taking the initiative in bringing their ‘roto-focussed’ small production-batch business model to new markets.

2. Molds

Access to good quality molds will affect the development of molding markets in any country. Many simple products can be produced effectively in simple sheet metal molds but as markets progress and develop into custom product lines, the need for a quality casting operation is essential. Many markets around the world, including Australia, are limited in their access to a quality cast aluminum mold maker and some molders depend on long distance relationships with Europe and the US for supply. The alternative is to develop the capability of a local casting shop working in other industries and bring raw castings in-house for finishing. This approach needs to change for effective growth. However, a quality mold shop is not easy to establish and typically requires considerable experience in the rotomolding field and proximity to the market that it serves.

3. Machinery / Support

Access to high quality equipment is perhaps not necessary for the production of simple parts such as water tanks. However, as markets develop and products become more sophisticated, the latest equipment that incorporates new process improvements is essential. The majority of the world’s machinery makers are based in Europe and North America but there are others such as Skellerup (www.skellerup.co.nz) in New Zealand that offer lower cost alternatives. The low cost theme of rotational molding often drives many molders to create their own homemade version of mainstream machines, a path that can create as many monsters as it does elegant solutions. Often, the homemade alternative is functional and serves a specific purpose but does not offer the flexibility or range of options that mainstream machines can offer.

4. Technology / Support

The world is shrinking every day in terms of access to information and technology. Via email and the internet, it is possible for molders in even the most remote regions to stay connected to the latest events and ideas. Some of the best reference sources are the websites of the various rotational molding associations around the world. A number of associations have been created and there are now associations serving Italy, France, Central Europe, UK, USA, South Africa, Ireland and Australasia. The US-based Association of Rotational Molders (ARM) has a listing of member molders and products from around the world (www.rotomolding.org). Other sites include The Association of Rotational Molders Australasia, www.rotationalmoulding.com. There are a number of material suppliers with informative sites including Courtenay Polymers (www.cotene.com) who are well established in Australia and New Zealand and have a growing presence in Asia.

As markets mature, there is a growing network of consultants that operate both on a local basis and internationally. In some markets, industry professionals that are semi-retired offer great resources in terms of experience for troubleshooting and training.

5. Local Associations

A local rotational molding association is a necessary element for successful growth and support of the industry in a particular country or region. The most important role of the association is to provide a forum for molders to meet, exchange ideas and share problems. Molders do not have to give away sensitive information but they can all benefit from discussions on common issues. Of course, associations also offer the opportunity to represent the industry as a single voice, lobbying government and acting as a focal point for research and development. There is active discussion on an umbrella organization that will coordinate the activities of the various ARM organizations around the world.

The Future

Markets take time to grow and often pass through initial phases of fractured growth hampered by limited access to the above resources. However, as markets mature, there is a natural drive on the part of the molders to come together to solve some of their common problems. Molding in Asian countries will follow similar themes – we look forward to assisting their growth.

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Last modified: July 12, 2006