Unprecedented producer consolidations and technological changes have and will continue to dramatically change the shape of competition in the polypropylene industry. The industry has weathered the storm of industry restructuring and technological shifts (e.g., new and improved metallocene/single- site catalysts) and even complex legal issues. Many feel that the results of major industry expenditures, time, and resources may soon begin to "pay-off". Or, will it?

Despite impressive growth and consolidation, the industry remains somewhat long in PP supply, while monomer prices continue to increase alongside energy costs. As a result, producers will likely see lower than desired margins and earnings at least for the next 1-2 years. However, there still may be an important "hook" to enable companies to recapture lost margin. That "hook" is technology!

Indeed, TCG's report examines the new catalysts and processes that will enable certain producers to capture higher margins, by differentiating PP grades as specialty copolymers and terpolymers, including functionalized polymer systems that enable both engineered and elastomeric PP grades to be produced. Essentially, the nature of propylene and PP will act as a "technology vehicle," that will inspire the development of these new grades based on new and improved catalysts.

The primary success factor for the future is the right planning and competitive positioning in order to excel in such a complex and intensely competitive environment. Key to good planning is using the right and most cost-effective technology to produce higher value enhanced performance PP products that meet new market needs. Assessing the strategic and competitive alternatives for polypropylene and its co-polymers will be especially important for current producers, potential new competitors and technology development / licensors in order to optimize business growth and profitability.

The Catalyst Group's (TCG's) new report entitled, "Polypropylene and Its Co-Polymers: Technology Innovation and Strategies to Excel in 2001 and Beyond" is the first comprehensive study of its kind, in this field, to address the complex technical, legal, and strategic issues. While important market information is covered, this is not another supply / demand market report. Instead, TCG provides an in-depth assessment of the advancements in new single site catalysis and process technology, the product and business innovations, ways to capture added value, and expectations on changes and advancements yet to come.