The two countries will lead production growth in Latin American

Mexico and Brazil are expected to lead polyurethane production growth in Latin America over the next four years, according to IAL Consultants.

The UK group forecasts total PU production in South America and Mexico to reach 722,590 tonnes in 2008, up from 591,070 tonnes in 2003 and 578,350 tonnes in 1998. It said: “After several years of economic recession Latin America’s GDP should grow by 3.5% during 2004. Overall, this is expected to produce [an annualised] growth rate of 4.1% in the production of polyurethane.”

Mexico is expected to increase production from 155,940 tonnes in 2003 to 190,830 tonnes in 2008. Despite a 10% decline in Brazil’s production of flexible foam in 2003, its overall PU output will grow because of increased automotive and refrigeration products aimed at export markets, said IAL. It forecasts Brazil’s PU production to rise from 291,650 tonnes in 2003 to 366,880 tonnes in 2008.

In Argentina the PU industry is in decline, said IAL, as production of footwear and upholstered furniture has plummeted by more than 50% in the past two years and automotive production is well below 1998 output.