EPP BEAD FOAM
2. Overview of EPP Business
New Paradigm of EPP Bead Production System
“EPP molding companies can purchase mini pellets and produce EPP beads directly in their own factories, which can significantly reduce material and transportation costs. The material cost can be reduced by about 40% ~ 60% compared to the current purchase price.”
Future EPP Business Trend
“In the future, if EPP beads are produced directly by each EPP molding company, the price of EPP materials will be greatly reduced, and the use of EPP products will be greatly expanded.”
Why EPP beads price is so expansive?
First, it sells at a high price through exclusive production based on patents and production know-how held by EPP Beads suppliers. The patent is now extinguished.
Second, it is due to the high profits and fixed costs of current production companies that are multinational companies. And, another reason is the high cost of shipping foamed beads.
Third, the EPP bead production business is suitable for small and medium-sized enterprises. It’s a marginal business that isn’t suitable for multinational companies like today.
There is no significant difference in the price of raw materials between EPP and EPS.
The price of EPP raw materials (R-PP Mini Pellets) and the price of EPP Resin are almost the same. However, the reason for the high EPP price is the high cost structure of multinational companies with high fixed costs and the high cost of transportation to each plant.
If the user produces the EPP beads in-house, there is no need to establish a separate factory, the existing utility can be used, and the production can be done with a minimum number of persons (2 person in 1 shift for production). Therefore, the cost can be significantly reduced.