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CEOs in the billet and extrusion industry of Southeast Asia must prioritize sustainability by investing in ways to decrease their organizations’ carbon footprint. Frost & Sullivan recognizes that value chain integration via secondary production is an emerging trend. Companies in the billet industry are demonstrating desire to backward and forward integrate, thereby streamlining operations in a move toward a sustainable business model. The utilization of scrap as a major feed material in billet operation is likely to become a benchmark for a higher recyclability ratio; also, the extent of in-house scrap generated during the extrusion process is highest in the aluminum industry.The COVID-19 pandemic impacted the industry negatively in the first half of 2020 as LME index prices slumped to a 3-year low of $1,400 /MT; however, the long-term forecast for emerging markets in Southeast Asia is bright. For the short-term, the market will remain in recovery mode.Of all sectors, construction has the most favorable growth conditions in Southeast Asia where demand for billets has been increasing in response to activity in the architectural extrusion segment. Indonesia, Vietnam, India, Thailand, the Philippines, and Malaysia have many on-going construction projects that will spur billet market growth. Frost & Sullivan expects the construction segment to remain the largest customer of billets, but the trend of light-weighting vehicles will position the automotive sector boost demand for billets. In addition, some companies in the industry are developing niche, high-value billet grades for the defense industry.In the field of more than 25 industry participants, Frost & Sullivan independently plotted the top 10 companies in the Frost Radar analysis ™. These market participants have demonstrated innovation and growth strategies that have led to superior performance. Frost & Sullivan attributes this to their proactive product development strategies that address the environmental impact concerns of regulatory authorities and OEMs. The Frost Radar™ reveals the market positioning of each company using its Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies based on their strengths, opportunities, and market positioning. We discuss strategic market imperatives and the competitive environment that vendors operate in as well as make recommendations for each provider to spur growth.
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