Who Owns Whom

The Manufacture of Adhesives and Sealants in South Africa

Carole Veitch | South Africa | 15 June 2021

The Manufacture of Adhesives and Sealants in South Africa

This report focuses on the manufacture of adhesives and sealants in South Africa. Bonding and sealing agents have many applications and are used in all sectors of the economy. Demand for adhesives and sealants has been mixed since the onset of the coronavirus pandemic. While home confinement and the surge in online shopping resulted in increased demand for packaging adhesives and DIY products, remote working and online learning contributed to a decline in demand for office and school adhesives.

Demand Drivers

Concerns about the toxicity of chemicals found in various adhesives and sealants are driving the development of new products that address growing demand for adhesives and sealants that are not harmful to the environment and to health. Demand for adhesives and sealants depends on the activity levels of the sectors that it the sector supplies, such as building and construction, paper and packaging, and the automotive industry. The sector is affected by the weak economy, influx of cheap imports, rising production costs, power outages and the coronavirus crisis.

Growth Areas

The increase in ecommerce resulted in increased demand for packaging and labelling adhesives. Other growth areas include high performance adhesives and sealants used in the healthcare market and DIY products. An uptick in building renovations and construction activity augurs well for the sector. Innovation is a key growth driver and industry players are developing new products and improving the performance, safety and environmental impact of their products.

Report Coverage

This report focuses on the manufacture of adhesives and sealants in South Africa. There are profiles of 25 companies including major South African players such as Qualichem, which produces Genkem, Bourne and Nova, Permoseal (also known as Alcolin), which has local distribution rights for Bostik, Pekay Group, Pratley and Royal Adhesive Industries. Profiles of foreign players with production facilities in South Africa include Henkel, 3M, Sika, Norcros, A.B.E. Construction Chemicals and Mapei.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 9
4.1.2. Regulations 9
4.1.3. Enterprise Development and Social Economic Development 11
4.2. Continental 12
4.3. International 15
5. INFLUENCING FACTORS 16
5.1. Coronavirus 16
5.2. Economic Environment 17
5.3. Government Interventions 18
5.4. Technology, Research and Development (R&D) and Innovation 19
5.5. Labour 22
5.6. Imported Products 23
5.7. Health and Safety Concerns 23
5.8. Environmental Concerns 24
5.9. Production Costs 24
6. COMPETITION 25
6.1. Barriers to Entry 25
7. SWOT ANALYSIS 26
8. OUTLOOK 27
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 27
10.1. Publications 27
10.2. Websites 28
APPENDIX 1 1
Summary of Notable Players 1
COMPANY PROFILES 4
3M SOUTH AFRICA (PTY) LTD 4
A B E CONSTRUCTION CHEMICALS (PTY) LTD 7
ANCHOR TECHNICAL TAPES CC 10
BIDVEST COMMERCIAL PRODUCTS (PTY) LTD 12
BRUMMER ADHESIVES (SA) (PTY) LTD 14
HENKEL SOUTH AFRICA (PTY) LTD 16
LEXXON ADHESIVES (PTY) LTD 19
MAPEI SOUTH AFRICA (PTY) LTD 21
NATIONAL ADHESIVE DISTRIBUTORS CC 23
NORCROS (S A) (PTY) LTD 25
NTE COMPANY (PTY) LTD 29
PEKAY GROUP (PTY) LTD (THE) 31
PERMOSEAL (PTY) LTD 33
PRATLEY (PTY) LTD 35
QUALICHEM (PTY) LTD 38
ROYAL ADHESIVE INDUSTRIES CC 40
SIKA SOUTH AFRICA (PTY) LTD 42
SOUDAL SA (PTY) LTD 44
SOUTH AFRICAN ADHESIVES (SA ADHESIVES) (PTY) LTD 46
STONCOR AFRICA (PTY) LTD 47
STRONGBOND MANUFACTURING (PTY) LTD 51
TYL-PRO ADHESIVES (PTY) LTD 53
UNIMELT CC 55
UNITED ADHESIVES CC 57
XCHEM CHEMICALS (PTY) LTD 59