Compound production in India

Annina Schopen,

Proprietary plastic compounds for extreme conditions

Cables must reliably transmit power, data and signals even under difficult conditions, in extreme cold or heat or under heavy mechanical stress. Specially developed plastics ensure that the cables remain robust and resistant. In India, Lapp produces its own plastic compounds based on the formulations of Swiss Lapp Engineering.

The compounding plant has been in operation for around a year. Two production lines are designed for PVC, while a third line is exclusively for special compounds. © Lapp

The development and production of plastic compounds is a complex process that requires specialized expertise. In modern cable production, it is no longer enough to simply concentrate on cable construction, shielding or stranding - the choice of the right jacket plays an equally important role. Properties such as flame resistance, mechanical strength and temperature resistance are significantly influenced by the chemical composition of the plastic sheath. As many applications have very specific requirements, standardized solutions are often not sufficient and tailor-made compounds are necessary.

This process goes far beyond the mere mixing of materials - it requires precisely coordinated and complex development work. "Compounds are very complex products," explains Pascal Wolfer, a materials scientist with a doctorate from Lapp Engineering in Switzerland, who is responsible for compound development together with two other colleagues. "They contain up to 20 individual components. For a customer-specific requirement, we usually test between six and ten formulations per development loop." When a customer approaches Lapp with a requirement, a team of experts works out various formulations based on the specifications of the application.

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The iterative process comprises several steps, from analyzing the specifications and formulation to trial extrusion and subsequent production of a cable prototype. The development loop is usually carried out several times until all requirements for the compound have been met. "We need around two to six months per loop," says Wolfer. He is also a member of Lapp's team of experts, which is made up of colleagues from Germany, Switzerland, India and Korea and deals intensively with the topic of compound development and production. The goal: to increase competitiveness.

Strengthening our own value chain

"The easiest way to increase competitiveness is to go deeper into your own value chain," explains Matthias Lapp, CEO of the Lapp Group. The solution: the company's own compounding plant in India. "For a solution provider like us, the step of starting compound production is an obvious one. This way, we are not dependent on suppliers and can also position ourselves as the market leader," says Lapp, explaining the strategic decision. And it works: With the help of our own production plant, the costs for compounds can be reduced by 5 to 20 percent compared to purchasing from external suppliers. This in turn pays off for Lapp's customers.

Local production for the local market

Lapp's Indian site in Bhopal is to be further expanded in the coming years. © Lapp

But why India in particular as a location for compound production? There are several reasons for this: Around 50 percent of the products currently produced at Lapp's plants in Bhopal and Bangalore are adapted to the Indian market and meet local standards, especially with regard to the local price structure and technical features. "The requirements for cables and plastics are very high in India, so the main focus here is on solutions for very specific requirements, for example for Indian rail transportation," explains Matthias Lapp.

Accordingly, this also requires plastics that meet certain requirements, but the number of suppliers in this area is small. They would have to be transported from the manufacturers to India and through the customs of the individual Asian countries. The consequence: dependency on suppliers and long transportation routes with considerableCO2 emissions. "That's why we decided to set up our own compounding plant, with which we can develop and produce materials in India and for India," says Matthias Lapp, adding: "And this has another decisive advantage: we can now determine exactly how the plastics should be composed and decide on the precise mixtures for our products ourselves." The raw materials for the compounds are preferably purchased in India. The Indian subsidiary commissions the formulas from the Swiss colleagues at Lapp Engineering. Once the experts in Switzerland have successfully completed the iterative process, custom production begins at the Indian plant.

But that is not the only reason for Lapp's decision to locate here. The provider of integrated solutions and branded products in the field of cable and connection technology has been present on the Indian market since 1998. While other companies focused exclusively on China for years, Lapp established close relations with what is now the world's most populous country at an early stage - and was absolutely right to do so. Not only does India have one of the largest and fastest growing populations in the world, but the Indian economy has also experienced steady growth in recent decades. Accordingly, the country has a large number of well-trained specialists and talented people, an ever-improving infrastructure and a growing middle class. While new market players in India still have to contend with barriers to market entry, Lapp is already established here and has literally grown with India's development. "The decisive factor here was our patient approach to the country and its culture," says Matthias Lapp. "India works differently to Germany and Europe. We recognized the pace at which business develops here and got involved. This has definitely contributed to our success." Accordingly, the company wants to further expand its strong position in India and is investing in the region and the Indian market. Accordingly, the new production facility in Bhopal covers an area of 36,000 square meters. Equipped with modern technologies, including an automated dosing system, large-scale production can be carried out here. "We are proud of our team in India and their commitment to innovation at Lapp," said Matthias Lapp at the inauguration of the plant in spring 2024, praising the joint efforts of the national company's employees.

PVC and special compounds from our own production

The recipes for the in-house compounds are developed by our partner Lapp Engineering in Switzerland. © Lapp

The plant focuses on the plastic polyvinyl chloride, or PVC for short, which is used particularly frequently for cable insulation and sheathing. PVC is an excellent insulator for electrical cables and protects against short circuits and electric shocks. It can also withstand high temperatures and is resistant to many chemicals, oils and solvents. As a naturally flame-retardant plastic, the particularly durable PVC reduces the risk of cable fires. It is therefore often the first choice for customers in the mechanical engineering and industrial sectors. Two of the three production lines in the newly opened plant are therefore also designed for this popular plastic.

In addition, Lapp's Indian colleagues produce special compounds for customer-specific solutions on a third production line at the site. This results in innovative compounds with unique properties for a wide range of applications, enabling the company to stay one step ahead of the competition and at the same time quickly meet new market requirements or standards. This is particularly important for customers who have to meet high legal or regulatory requirements in industries with strict safety and quality standards, such as aerospace or medical technology. For Lapp itself, this means above all being able to offer consistently high product quality and ensure efficient use of raw materials - without being dependent on the quality of an external supplier. Around 13,000 tons of plastic per year currently roll off the production line in the company's own production facility. Capacity is set to increase gradually over the coming years.

For Pascal Wolfer, the development and production of compounds at Lapp has now become a real passion. The compound developer explains: "It all works thanks to the great cooperation between Lapp's national companies and the colleagues who are dedicated to this project." The collaboration is intensive and includes the development of the formulations, the evaluation of the compounding equipment and the optimization of the production processes. In order to drive this process forward, he has already visited the production facility in India several times, with an Indian colleague actively supporting the Swiss development team on site.

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