Removal of HBCD from EPS
Building and Construction
Products in New Zealand
Background
NZ Formally advised of ban in mid 2013
 NZ is an “Opt in” Stockholm signature
Previous fire protection commitment for
B&C
NZ imports 6000 mt of EPS
containing HBCD
Options Available
1. Remain In- Not tenable with no supply
guarantee
2. Opt Out and take 5 year Exemption impractical and discourages a shorter
phase out.
3. Opt Out but mitigate risks
Industry Consultation
Industry and Government sought workable
solution.
Three Industry Accord proposals
submitted
All included a voluntary commitment to a
shorter phase out
Backed by trial results & greater
assurance of supply
Where to now
NZ Government made decision to “opt out” due
to time constraints prior to September general
election in case of change of Government
Ministry for the Environment has endorsed the
PNZ Voluntary Commitment (PNZ Accord)
Positive ongoing dialogue
Tristan
Conclusions
 NZ Industry has committed to cease using EPS containing
HBCD in certain products effective 30th April 2015:
•
•
•
•
EPS Pods for insulation under concrete
EPS for use in in-ground light fill applications
Void formers (e.g. Marina pontoons, precast elements)
Neopor for general insulation applications
 With PolyFR a suitable and sustainable replacement has been
found, tested, approved and is already commercialized in EU
market
 Based on current demand this will reduce the amount of EPS
containing HBCD by 2.5kt in 2015
 Commit to cease importation of all EPS containing HBCD from
Tristan
1st January 2017 dependent sufficient
supply of non HBCD
New Zealand EPS Industry
New Zealand Macro Economy Overview
Growth rate increase since 2013 (2.4%)
forecasts 2014 3.3%, 2015 3.7%
Increased 1.6 percent in the year to
June 2014 quarter compared with same
period last year.
Unemployment: Unemployment has
decreased from 5.9% to 5.6%
New Zealand | Market Overview
 Treasury forecasts Canterbury reconstruction will add c.a. 12% to GDP over the next three years
 New Zealand's pace of growth is expected to accelerate over
the next few years
 Residential building consents at a six year high
 Following general election in September NZ remains under a
National led Government
 Reserve Bank has lifted the OCR for the third time since the
beginning of 2014 to 3.5%
Market Size by Application
2013 Total Market – 7.9kT
SIP
7%
ICF
1%
Packaging
7%
Geofoam
7%
2014 Forecast – 9.5kT
Other
4%
SIP
4%
Produce/Fish
Box
20%
ICF
1%
Packaging
7%
Geofoam
11%
Other
4%
Produce/Fish
Box
17%
Sheet
23%
Sheet
23%
Under-Floor
9%
Under-Floor
8%
Waffle Pod
23%
 Upturn in demand 2014 due to residential B&C and Geofoam
 Eleven moulders throughout NZ
Tristan
 TEL Geofoam contract 1.2kt EPS
2014
Waffle Pod
25%
New Zealand Moulders
PKG
Barnes Plastics
Bondor
EPS Foam
Enable Ind
Expol
Hope Moulded
Koolfoam
Long Industries
Long Panel
Strang
Styrobeck
E&E
B&C
New Zealand | Highs and Lows
 New Flat Bush township in North Island now in full swing and
will lift residential B&C 2013-2020
 Housing shortage still needs to be rectified due to population
growth of 31,000 p.a. requiring additional 12,500 dwellings
 Reserve Bank lifted OCR to 3.5% to curb inflation and cool
down the housing market due to housing shortage
Conclusion
 NZ economy will have a positive growth rate over the next 5
years
 EPS Industry is very competitive due to excess capacity in NZ
and a raft of competing products; Fiberglass, Polyester and
PU
 Expect higher than average growth within the EPS Industry
over the next few years
Availability of PolyFR:
From 3rd quarter of 2014 PolyFR capacity is enough to cover global demand
PolyFR Demand
 Global demand of HBCD: 31 kt/a
 China decided to continue with HBCD for at
least five more years  12 kt/a will remain
HBCD. Other countries likely to follow China’s
model.
 In the worst case scenario maximum
22 kt/a PolyFR 1 will be needed globally.
PolyFR Capacities
 Chemtura (com. plant on stream): 10 kT/a
 ICL (pilot plant on stream):
~2 kT/a
 ICL (com. plant Q3/2014):
10 kT/a
 Total capacity after Q3 2014:
1The
~22 kT/a
specific PolyFR consumption is approx. 20 % higher than HBCD.
New Zealand Construction Industry Update
In July 2014 2282 new dwellings were consented. It comprised:
• 373 apartments, including 219 retirement village units
• 1909 houses
Flat Bush Township Project
Tauranga Eastern Link Geofoam project