Asian Glass - AG17-5 Edition

Is this your own copy? subscribe online at www.asianglass.com

AG17-5

SEE US AT:

VITRUM MILAN, ITALY

Se e u s at

T ASIA C E T S S GLA OR E S I N GA P

Inside:

• Iranian glass processors • Cullet and recycling issues • Indonesian facades • South Asian container glass

Meet us at: Glasstech Asia, Singapore ; ZAK Glasstech, India

Conveyor with new double drive system

Automatic intermediate bar

Variety of configurations and options

High performance spindles

FIVES TECH + FIVES TEAM PRIUM® PLANARTEK COMBUSTION SYSTEM, COMBINED WITH FIVES EXPERTISE, MAKES YOUR GLASS TEMPERATURE HOMOGENEOUS A NEW INNOVATIVE APPROACH FOR WORKING ENDS AND FOREHEARTHS. The Prium® PlanarTek combustion system is designed to meet your production requirements, and, when combined with Fives patented flat flame burner block, enhances glass conditioning performance with reduced gas consumption. Prium® PlanarTek combustion system, which results from the Fives’ Glass experts innovation, can be readily integrated with a bespoke heat recovery system to further increase energy and operational efficiencies. Trust Fives professionals to enhance your plant’s performance and competitiveness and to optimize your investment.

www.fivesgroup.com

CNI LONTEC HK PV B F ilm S p e cia lis t

Are you considering to have a good quality PVB supplier with competitive price, at the same time with super R&D capability?

A company with market-leading quality at Japanese level, scalable production in China and with advanced R&D work in Hong Kong is

very worthwhile for your considerion.

Our Advantages WC % 1.2

Water content trend chart Normal Film

1.0

Lontec Film

0.8 0.6 0.4 0.2

0

10

20

Time

Excellent anti-humidity characteristic

Embossing film surface

More about CNI Lontec

Our films are mainly for three fields, automotive, architecture and solar encapsulating panels. Our standard film is with surface roughness 20µ – 100 µm upon requirement. Such roughness enables an even emission of air during lamination, thus achieving a stable even thickness. At the same time, it is much more resistant to moisture and has a low viscosity. Such techniques are uniquely developed from our technical team which has over 30 years of experience in the business.

The factory is located in Yangzhong, Jiangsu Province where has ample space for scalable production and a good quality labour source. With Hong Kong capital (the parent company is the 82-yearold Chung Nam Group), the company has a solidfinancial strength for growth.

The R&D team is a joint collabration with the engineering team from the Department of Chemical & Biomolecular Engineering of one of the top-tier universities in Hong Kong.

Hence, new products with different Nano particles are on the platform for scalable production, including

gradient color PVB film, art decorated PVB film, wire netted PVB film, heat blocking films that have surpassing quality to other products on the market, sound insulation films, etc.

Gradient color films can have maximum width up to 2600mm and with maximum color zone at 2000mm, which is very suitable for interior partition where there is a need for partly privacy requirement, such as at shopping malls or offices. Having patterns, such as company logo on PVB films may be something that other companies have strived to pursue.

Wire netted PVB films have high resistance to fire attack and has further enhanced the safety characteristics of PVB. PVB films that can block heat reduces energy consumption indoors, while the transmittance is kept at impressive level has a great demand for decades. Regarding sound insulation, the Nano particles of our company embedded in our products createdthe uniqueness to market.

If you are interested in our products,please contact us for more infomation and sample.

Contact Person: Lilian Chu

Address:

Email: lilian.c@cn-innovations.com

Hong Centre,151-153 Hoi Bun Road,

Tel: (852) 3469 6000

Website: http://www.cni-lontec.com

Unit 2-3, 19/F, Kwong Sang Kwun Tong, Hong Kong

CNI LONTEC HK PVB Film Specialist

MA STER

INTERMAC.COM

THE NEXT-GENERATION TECHNOLOGY The new range of machining centers designed to meet the machine operator’s needs, maximising efficiency, flexibility and productivity.

Master 45.5

INTERMAC ASIA OFFICE TEL. +603 8084 0056 ENQUIRY.ASIA@INTERMAC.COM

Contents: AG 17-5 Regulars

Features

8 Welcome

32 Glass processing in Iran

China moves on Russian auto glass.

10 Headline News

Openings, closures and industry moves from across Asia.

20 Global View

Our eye on the international arena.

24 People and Places Movers and shakers, ups and downs.

28 Batch Raw material news and views.

30 Comment & Analysis Glass packaging: a premium indicator?

44 Your favourite magazine is now available at the App Store… download today to see your first sample issue!

Asian Glass: now for mobiles, ipads and androids 6

asianglass AG 17-5

Yogender Malik looks at how despite the influx of technology and the considerable domestic support of some world class float glass, Iran’s glass processors remain largely absent from global markets.

44 South Asia container glass

Rohan Gunasekera looks at how expanding capacities in Southern Asia’s container glass sector, coupled with falling demand, have created a perfect storm of trouble…

52 The growing influence of cullet

Jahir Ahmed looks at how changing efficiencies in glass recycling across the continent are providing a much greater cost benefit to the region’s container glass manufacturers.

64 Indonesia facades

AG looks at how the construction trends of ASEAN are driving the market in external cladding and facades, and considers what this will mean for future glass demand.

64

Anaylsis 74 In Focus

Gopal Ganatra, Asahi India Glass, talks about the changing supply dynamic on the sub-continent and also how GST may impact the glass industry.

78 Window

Analysis and insight into India.

82 Refractory Zone

News and developments in refractory products and their raw materials. www.asianglass.com

WHENEVER,

INSULATE

WHEREVER ,

A ND

FENZI

IS THERE .

.

BETTER TO LIVE BETTER.

Our own wellbeing and respect for planet Earth demand that we thermally insulate the environments in which we live to the best of our ability. This is true all around the world, in the scorching heat and the most bitter cold. Recently we have seen an intensification in climatic extremes, leading to increasingly challenging conditions for insulating glass.

Technology responded with low-E glass, triple glazing, and warm edge spacers. In this context, sealants – indispensable component of the insulating system – are subjected to ever greater forms of stress, which is why they have evolved in heretofore unimaginable ways. The sealants in Fenzi’s Thiover and Poliver lines make it possible to create perfectly sealed IG units that last indefinitely, and with the added benefit of practicality and convenience, thanks to its widespread network of manufacturing and distribution centers around the world. The Fenzi group – with Alu-pro and Rolltech, through the Glass Alliance network – offers global distribution of all the necessary ingredients for the production of insulating glass, starting with the most extensive range of warm edge spacers in existence.

I.G. SEALANTS

LEADER IN CHEMICALS FOR THE FLAT GLASS PROCESSING INDUSTRY.

www.fenzigroup.com Fenzi S.p.A. - Via Trieste 13/15 - Zona Industriale - 20067 Tribiano (Milano) Italy Phone +39 02 90622.1 r.a. - Fax +39 02 90631216

Is this your own copy ? subscribe online at www.asianglas s.com

Welcome E

CONTACT DETAILS

AG17-5

EDITORIAL

VITRUM

SE E US AT:

MILAN, ITALY uropeans are confronted with a growing number of Chinese brands present on the continent. But few See us at know that the windshield on their cars was made by Inside: Russians working for Fuyao Group.

• Iranian glass pro cessors • Cullet and recy Fuyao, the world’s leading manufacturer of auto glass, is cling issues • Indonesian faca des • South Asian con now steadily increasing production in its Russian subsidiary to tainer glass Meet us at: Glasstec h Asia, Singapore ; ZAK Glasstech, Indi a meet growing demands from global auto makers in Europe.

“We expect our sales revenue to reach billions of rubles this year, representing a surge from 2016,” said Xie Zhi, vice president of Fuyao Russia.

The Russian subsidiary is Fuyao’s first overseas venture with a total investment of some 200 million U.S. dollars. It began production in 2013 with a designed annual capacity of 3 million car sets.

Surrounded by lush trees, the 130,000-square-meter Fuyao compound is located in an industrial park in Kaluga Oblast, about 160 km southwest of Moscow. Beside it sits a huge Volkswagen plant, which relies heavily on Fuyao auto glass.

In Fuyao’s enormous workshop, Russian employees in dark blue uniform work next to yellow industrial robots at the production line. Shuttling forklifts swiftly move wooden boxes of glass products from the production line to transport trucks.

“We decided to invest in Russia because the auto market here is big and we can supply our products to other European countries as well,” Xie said, adding that Russia is interested in Chinese investment and local authorities are always ready to lend a hand to Fuyao.

Chinese-Russian economic and trade cooperation has been expanding rapidly over recent years within the BRICS framework, the Belt and Road Initiative and the Shanghai Cooperation Organization.

According to the Chinese Ministry of Commerce, China’s direct investment in Russia topped 14 billion U.S. dollars at the end of 2016, holding its position as Russia’s fourth largest investment source.

Alexander Fokin, a logistics manager at Fuyao Russia visited Beijing, Shanghai and the company’s headquarters in east China’s Fuqing City during a regular training tour.

“I get along with my Chinese colleagues and I like working in Fuyao because I can grow together with the company,” said Fokin, who has been with Fuyao Russia from the beginning.

Fokin is one of the Russian employees that account for some 90 percent of the workforce.

“Fuyao has no specific requirements when hiring ordinary workers. Instead, we attach great significance to and spend great effort training them,” Xie said.

According to Xie, an ordinary worker could earn about 30,000 rubles (more than 500 dollars) a month, a higher-than-average wage in the industry.

Vladimir Panishchev from Uzbekistan has been working in Fuyao Russia for four years. He lives with his wife and twin sons in the company’s dormitory, where he only needs to pay for utilities.

“I love my job and I feel happy here,” he said.

There’s something that some other emerging countries could learn from this fullyinclusive approach…

GLASSTECT ASIA SINGAPORE

Happy reading!

Publishing Director Andy Skillen Email: askillen@asianglass.com Direct line: + 44 (0) 208 123 0196

ADVERTISING AND DESIGN Advertising Sales Valerie Adamson Email: vadamson@asianglass.com Direct line: + 44 (0) 208 133 5273 Paul Russell Email: prussell@asianglass.com Direct line: + 44 (0) 208 638 0619 Production and design Tim Mitchell Email: tim@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

RESEARCH Research Manager Alex Murphy Email: amurphy@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

EXHIBITIONS AND CONFERENCES Contact the team on: Email: events@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

Bowhead events Creating Opportunities: Delivering Results OVERSEAS OFFICES

China Professor Wen Lu and Wen Xin Email: 18980921123@163.com Tel: +86 28 8701 9077 Fax: +86 28 8701 9077 Bangladesh Jahir Ahmed jahir@asianglass.com India Yogender Singh Malik yogender@asianglass.com Sri Lanka Rohan Gunasekera rohan@asianglass.com

Andy Skillen Publishing Director

Got a general enquiry? use enquiries@asianglass.com 8

asianglass AG 17-5

HEAD OFFICE Bowhead Media Ltd, 57 Oaks Avenue, Worcester Park, Surrey, KT4 8XE United Kingdom Asian Glass (ISSN: 1475-6501), is published by Bowhead Media Ltd, registered in the UK no: 6127651

www.asianglass.com

More Valuable Output. More Benefit.

You increase your profit with the new B‘CHAMP generation.

• Higher yield • Shorter changeover times • Footprint reduced by up to 50% You will find additional information on our dedicated page and those who are clever, register immediately and secure an exclusive presentation of the new B’CHAMP.

www.bystronic-glass.com/newbchamp

HEADLINE NEWS ASIA Solar glass capacity sufficient to cope?

India India has enough tempered solar glass capacity to cater for its own PV manufacturers despite the introduction of anti-dumping duties against certain tempered glass imports from China, according to the Indian firm that originally petitioned for the trade measures.

India’s largest solar glass firm Borosil Glass Works was the sole anti-dumping petitioner in a recent investigation, despite there being a number of other tempered glass suppliers in India. This is because Borosil is the only Indian supplier that produces its own annealed (raw) glass rather than importing.

Borosil vice chairman Pradeep Kheruka told PV Tech that other Indian firms over the last 15 years have tended to import annealed glass from China before having it tempered and supplying it locally to the solar industry.

This month the Ministry of Finance went ahead with tariffs on tempered glass from China where at least one side is more

than 1,500mm, with a minimum 90.5% transmission and a thickness of less than or equal to 4.2mm. The anti-dumping duties will be in the range of US$52.85/ MT to US$136.21/MT. Kheruka said that glass with sides of less than 1,500mm, which are not subject to the duties, are still used heavily in solar street lights and other small-scale PV applications, but the duties do apply to glass used in the utility-scale solar module segment.

He claimed that last year's Indian demand for solar glass was around 1.3GW, of which 60% was supplied by Borosil and 40% was supplied by a mix of Indian firms and Chinese imports. Meanwhile, at least 4-4.5GW ready-made modules were also imported to India last year, with glass already fitted.

With evidence of Chinese dumping of solar glass found and the related duties imposed,

Kheruka claimed that Indian glass manufacturers altogether can more than make up for any consequent shortfall of supply from China. Indeed, Borosil, which also exports much of its produce to Europe, the US and Africa, is planning to double its capacity in the next 15 months from around 1.3GW to 2.6GW, placed alongside its existing furnace in Gujarat.

Referring back to the AD duties, Kheruka added: “It’s going to be a bit of [a] boost to Indian manufacturing and hopefully there will be Indian manufacturers who will set up shop in India doing solar products and also people maybe from abroad can come in and set up factory in India now that they know dumped imports will not be allowed.”

He also noted that as there are no duties on annealed glass, other Indian suppliers of tempered glass would not be affected by the recent ruling.

The duties come at a critical time in the Indian PV sector as the government is also currently carrying out an anti-dumping investigation into imports of cells and modules from China, Taiwan and Malaysia. Once again, India’s domestic solar manufacturing will be watching closely.

If duties were imposed on these cell imports, then it is likely that demand for solar modules from within India will pick up, which will of course cause a spike in domestic demand for tempered glass.

When questioned on how the glass industry could cope, Kheruka added that after Borosil’s expansion to 2.6GW, if demand picks up further “then in another six months we can further double that to maybe about 5GW”.

Borosil also recently claimed that it had became the first firm globally to produce fully-tempered solar glass with a thickness of just 2mm.

HEYE at the forefront of upgrades RUSSIA/CIS Market requirements for optimised quality standards and growing demand of glass packaging today make container glass producers initiate next moves towards equipment investment. Latest technology of the digital age helps to obtain best possible results in both: quality and profit. Mikhail Klegg, Technical Director of Russian “Kransoe Echo”, has recognised the benefits of investing in state-ofthe-art solutions of technology supplier Heye International: The first Heye SpeedLine will be installed in the CIS region. This high-end IS-Machine represents the latest generation of profit and quality oriented container glass production. “The Heye

10

asianglass AG 17-5

SpeedLine is already proven in practice and will open up attractive possibilities to expand our market position,” anticipates Mikhail Klegg.

Russian container glass producer “Ruscam Glass”, too,

trusts in technology of German supplier Heye: The Heye Servo F e e d e r allows the company to run different weights on one machine (assortment production).

The software programme proved very well and gives Ruscam the possibility to produce as flexible as possible and thus meet customers’ requirements.

Based at Obernkirchen, Germany, Heye International

GmbH is one of the international glass container industry’s foremost suppliers of production technology, high performance equipment and production knowhow. Its mechanical engineering has set industry standards for more than five decades. Extensive industry expertise, combined with the positive attitude and enthusiasm of Heye International employees is mirrored by the company motto ‘We are Glass People’. Its three sub-brands HiPERFORM, HiSHIELD and HiTRUST form the Heye International equipment portfolio, addressing the glass industry’s hot end, cold end and service requirements respectively.

www.asianglass.com

Sisecam looks for capacity rises Turkey Turkey’s leading glass maker, Sisecam, plans to increase production capacity in several facilities in Turkey, Italy and India according to the company’s general manager.

Sisecam is currently the third largest producer of glass household goods in the world and the fifth largest in the production of glass packaging and flat glass.

With 44 production sites in 13 countries, the company produced 2.4m. tonnes of glass in the first half of this year.

"We have plans to modernise

and increase the capacity of one of our glass furnaces at our glass packaging factory in Yenisehir," Kirman said. He added the company also planned a new furnace at factories in the northwestern province of Eskisehir and the Polatli district in Ankara.

He did not give a value for the investments. Last year Sisecam invested 120 million lira ($34.5 million) in the renewal of a glass container factory furnace in the southern Turkish city of Mersin.

Kirman said that Sisecam was

also looking for options in Europe to increase their activity in the region by penetrating into new markets, adding that a number of countries were being evaluated.

Sisecam has production sites in Germany, Italy, Bulgaria, Romania, Slovakia, Macedonia and Bosnia and Herzegovina, and Kirman said the company was very pleased with the performance of a factory which it acquired from Italy's Sangalli in 2016. "(The) Sangalli (factory) currently has a production

capacity of 220,000 tonnes per year and its sales performance is great. It has been a very effective point for us to enter the European market, he said. "We may look at increasing capacity again."

Kirman added that the company would also make a final decision on increasing the capacity or expanding its investment in India.

A planned initial public offering (IPO) for its glassware unit Pasabahce would have to wait for some time due to a global decline in demand for glass household goods, he said.

Audi works for transparent solar roof China Audi and a Chinese technology firm are teaming up to develop a panoramic glass roof embedded with solar cells capable of powering ancillary systems like air conditioning and seat heater, the automaker said on Wednesday.

Working with Alta Devices, a subsidiary of Chinese tech firm Hanergy, Audi hopes to reduce the drain on an electrified car's primary propulsion battery in order

to improve range, though Audi isn’t yet making predictions as to what the savings could be.

The move follows Audi’s intended shift toward an electrified lineup in the wake of damaged consumer trust in Audi’s and parent company Volkswagen’s diesel engines, a problem tied directly to the Dieselgate emissions cheating scandal.

This won’t be the first time a

solar panel will appear on a car’s roof. The Karma Revero features a solar roof that supplies energy to various systems, similar to the proposed Audi roof. Earlier this year, Panasonic announced a new solar roof panel that will be available on Toyota’s Prius Prime.

What makes the new Audi solar roof different, however, is that you’ll still be able to see through the roof. The energy

harvesting capacity of the solar cells under development by Alta Devices is much more efficient than traditional silicon cells.

Theoretically, that efficiency would enable Audi to utilize fewer cells, thus maintaining the panoramic aspect of its vehicles’ roofs.

While Audi hasn’t said which vehicle will get the treatment first, it expects a prototype to be built before the end of 2017.

Bormioli seizes pharma glass initiative United States Bormioli Rocco Pharma, one of the world’s leading glass and plastic manufacturers, is strengthening its services in North America for pharmaceutical glass packaging with a dedicated sales team and innovative products, particularly for high-value parenteral drugs.

A market leader in its home country of Italy and co-leader in Europe, where the company has focused its sales and serves many Top 10 global pharmaceutical, biopharmaceutical and contract manufacturing organizations, Bormioli Rocco Pharma is now making its Delta molded Type

www.asianglass.com

I glass vials, and complete line of glass and plastic containers and closures, available in North America.

The company is a U.S. FDAapproved supplier of glass and plastic packaging for the pharma, biopharma, and CMO markets.

“As a validated international supplier of premium-quality glass and plastic pharmaceutical packaging, we are excited to introduce our solutions to North American customers with designated sales support,” said Stéphane Bis, Americas Regional Sales Manager at Bormioli Rocco

Pharma. “We bring to the table long-term expertise in injectable pharmaceuticals packaging, as well as a complete range of integrated products matched by flexible, high-attention service.”

Bormioli Rocco Pharma’s Delta high-tech molded glass vials, available in a range of sizes and capacities, are optimal for today’s pharmaceutical injectables. As the pharmaceutical industry expands biologics such as antibodies, oligonucleotides and peptides, the active ingredients are more complex and sensitive, requiring specialized packaging

that does not delaminate or leach contaminants.

Delta products offer higher hydrolytic resistance and internal surface homogeneity to protect against delamination and ensure product stability.

ASIA...

is one click away

Asian Glass: now for mobiles, ipads & androids

AG 17-5 asianglass

11

News

Orora unveils bottle expansion Australia Australian packaging manufacturer Orora has completed a AUD 42 million ($33.8 million) investment project to increase glass bottle production at its facility in Gawler, South Australia, creating 26 new jobs.

The investment has expanded the glass bottle forming lines at the plant, increasing capacity by 60 million bottles per year. Orora said the increase in production will directly benefit the South Australian wine industry, which is enjoying a sustained period of

growth, fuelled by exports to key global markets.

Last month, the Australian government unveiled a AUD 50 million ($39.5 million) fund to promote the country’s wine exports and wine tourism offer.

In addition to the expanded forming lines, Orora introduced a decorative glass bottle sleeving application at Gawler. The company said the sleeving application meets a growing customer demand to attractively package and label wine products, which

‘increases on-shelf visibility and supports marketing and branding promotions’.

Orora CEO Nigel Garrard said: “Orora’s Gawler facility is already one of the largest glass manufacturing facilities in the southern hemisphere and the AUD 42 million investment enables us to service the increased demand for high quality glass bottles.

“We worked closely with the South Australian government during the plant expansion and were pleased to receive their

investment support as we completed the project on time and on budget.

“The expansion at Gawler represents one of Orora’s largest capital investments in Australia and helps underpin the long-term future of our glass business. The investment reinforces Orora’s commitment to be an innovative and customer-led provider of worldclass packaging solutions.”

Orora employs more than 6,700 people across 131 sites in seven counties.

Tempered Triumph for Glaston China Glaston has sold a GlastonAir™ glass tempering machine to China Triumph International Engineering Co.,Ltd., (CTIEC). The order is booked in Glaston’s Q3/2017 order intake and the delivery is planned to take place around midyear 2018. The deal is valued at around EUR 3 million. It has no impact on Glaston’s operating result in 2017 and is part of Glaston’s expected order intake this autumn.

CTIEC has entered into projects in new glass, new materials and renewable energy. For their new double glazing Photovoltaic solar energy module project CTIEC was looking for an expert

in glass tempering. “We have been impressed by Glaston’s leading technology and the outstanding quality of the end product. GlastonAir™ meets all our demands for high-quality thin tempered glass”, says Peng Shou, Chairman and Managing Director at CTIEC. GlastonAir™ represents a completely new approach to glass heat treatment. Glaston is a frontrunner in glass processing technologies and GlastonAir™ with its unique air flotation technology is a result of Glaston’s longterm and systematic R&D work.

The advantage of GlastonAir™ compared to traditional roller-type

tempering furnaces is that the glass issupported and heated on a bed of air at air flotation section, taking quality to a new level as the glass has no roller marks and is practically free of waves.

“Already for some years we have seen a growing interest for thin glass especially for solar energy solutions. With GlastonAir™ it’s possible to process fully tempered glass down to 2.0 mm and to heat strengthen down to 1.6 mm thickness with extreme flatness and best opticalquality. These features make GlastonAir™ the perfect solution for solar energy applications as reduced

thickness of the glass improves the efficiency of the solar panels at the same time as its weight and use of materials are lower. This deal is an important opening for GlastonAir™in the potentially most significant markets”, says Arto Metsänen, CEO and President of Glaston Corporation.

China Triumph International Engineering Co. Ltd. is a hightechnology R&D and engineering company with industrial bases in several provinces in China.

Currently the company is also expanding outside of China.

CTIEC is part of China National Building Material Co., Ltd.

Nuclear boom drives glass output News, views and analysis

India With India aiming to build 10 new nuclear reactors, the CSIR-Central Glass and Ceramic Research Institute (CGCRI) hopes to ramp up supply of radiation shielding window (RSW) glass that protects workers and scientists from harmful radiations to meet the demand. CSIR-CGCRI's Director K. Muraleedharan said the lab has developed two products for the nuclear energy sector in India.

One deals with the development of manufacturing technology

12

asianglass AG 17-5

and supply of RSW glass and the other with borosilicate glass beads for safe disposal of nuclear waste. "You can look through the glass but radiations don't affect you. We have supplied up to 20 tonnes by now (in the last 10 years) but as nuclear plants come up, each year we may have to supply close to 10 to 15 tonnes," Muraleedharan told the media in Kolkata recently.

While the radiation shielding glass is being produced in pilot scale at CGCRI for catering

to the need of Department of Atomic Energy, the technology transfer to industry for the product is "in the process", he said.

"Some operations you have to watch and the windows should be protective. Today only Russia supplies these to us and their order books are full for the next 10 years so we have intervened and made this indigeneously," he said. Muraleedharan said the cost of the two interventions is "one third of the imported ones".

Subscribe to Asian Glass and get the inside story EVERY issue..

www.asianglass.com www.asianglass.com

glass technology

RapidLam Shape: More Shapes, More Future.

Shape Cutting of Laminated Glass as Compact Unit Extend your scope to cut shapes and free forms on laminated glass. Can be integrated in an existing line, or as stand-alone machine. This compact machine uses syncronised turning cutting heads to produce exact results as desired in the cutting plan.

• Automatic cutting of free forms in laminated glass • Can be used as part of a cutting line or as stand-alone machine • Laser foil separation can be installed at a later date

Hope to see you at 3. - 6. Oct. 2017 • Milan, Italy

22. - 24. Nov. 2017 • Singapore

HEGLA • Industriestr. 21 • D-37688 Beverungen • E-Mail: info@hegla.de

www.hegla.de

News

Glass tests continue for largest solar plant Qatar Qatar government will soon start constructing Qatar’s largest Photovoltaics (PV) farm which will begin operating in 2020 with 200MW of capacity.

The UK’s leading website on green economy and environmental issues, businessgreen.com, has reported this in its recent report titled “Desert-proof solar? Why Qatar is leading the way.”

The report is based on an interview with QEERI’s Acting Executive Director, Dr Marwan Khraisheh. It further says that according to QEERI’s estimates, over the course of a year, just one square kilometre of land in the Qatar desert receives solar energy equivalent to 1.5 million barrels of oil.

Yet that potential for solar energy remains untapped largely due to two significant obstacles, dusty conditions coupled with the baking desert heat, which can reach up to 75C underneath solar panels in the summer and which can severely impair the energy efficiency of installations, Dr Marwan told media.

Therefore, Khraisheh says, Qatar’s mission is clear: “We need to develop solutions so we can facilitate the deployment of PV in the region on a wider scale.”

That isn’t to say solar farms aren’t already operating in

deserts around the world of course. There are several major installations in southern areas of the US, as well across the Middle East and North Africa. However, it still only adds up to a few hundred megawatts of capacity in total, a tiny proportion of the potential generation from desert solar, while efficiency levels still leave room for improvement.

“Many of these desert solar farms also demand significant amounts of water to clean the panels from dust and to try and keep them cool enough to operate - a luxury even Qatar can ill afford on a large scale,” BusinessGreen writes.

Khraisheh is leading a team of more than 120 Qatari and international staff at QEERI to try and solve these dust, heat and water challenges with the aim of securing the country’s long-term energy needs, the website writes.

The Institute operates a 35,000sq metre Solar Test Facility in Doha where it tests solar panels from 27 companies, trialling a range of technologies to produce around 200kW of power from around 50 panels.

Here the team is also testing 16 types of coating and glass with the aim of developing selfcleaning panels, and while no

solutions have been fully realised yet, Khraisheh hopes Qatar’s commitment to the research could make the country a global leader in solar expertise.

“It is not just one investment and that’s that,” he explains.

“We are continuously funded by the Qatar Foundation, which has been putting in a lot of resources, investing hundreds of millions of dollars over the last 10-15 years to build the research infrastructure that will allow the Institute to really tackle these grand challenges.

We’ve invested a lot in building test facilities and state of the art research labs looking at energy, water and the environment.”

International expertise is also key, says Khraisheh. “QEERI soon plans to launch an international solar test consortium, bringing in governments and businesses from around the world to further the development of desert solar, while it has also struck partnerships with Switzerland’s École Polytechnique Fédérale De Laussanne (EPFL) and Germany’s Fraunhofer Center for Silicon Photovoltaics.”

But the immediate focus for QEERI is the government’s plan to soon start constructing Qatar’s largest PV farm. Scheduled to begin operating in 2020 with

200MW of capacity, the project includes an expansion plan for up to 500MW. “They [the authorities] have already allocated the land and we are helping them with some technical specifications,” Khraisheh explains.

“Once they start breaking ground we can help them choose the best technology and assist them with cleaning methods.

Hopefully in the future we can work with them and our external partners to develop a new desert panel, and the next farm will use some of these panels based on our work.”

When BusinessGreen asked whether large-scale solar farms could become a widespread source of power in extremely hot and dusty desert areas within the next five to 10 years?, Khraisheh replied: “Absolutely, I think even less than that.”

“We definitely face challenges to make solar more efficient, and while we’re working on technical innovation, there needs to be more business model innovation backed by new policies to drive these forward. But economically, right now people see solar as a new sector for the economy.

It is good for the environment, good for the economy and it is growing businesses.”

Borosil unveils 2mm tempered glass India Indian manufacturer Borosil Glass Works has completed acceptance tests for a major line of 2mm fully-tempered glass, which a company executive claims to be the first such glass produced at this thickness in the world.

The current world standard for solar tempered glass is 3.2mm, but Borosil has created a line that can produce significantly thinner glass, which would come out at 1.6GW capacity.

Pradeep Kheruka, vice chairman of Borosil, told PV Tech: “We are the first people to have actually taken the risk of investing in a line that claimed they could do it and our gamble paid off.”

14

asianglass AG 17-5

Yesterday, the firm performed an acceptance test, attended

by Borosil and the line supplier, running the line for an eighthour period nonstop without any hiccups. The next step is to send the glass out to be certified with reputed international bodies. Kheruka said he had no doubt that the product would be certified.

The thinner glass should create higher efficiencies when used in a solar module, because there is less glass to absorb solar irradiance before reaching the cell, added Kheruka. Until now, any 2mm glass used in modules has been 'heatstrengthened' rather than fully-

tempered, which means it is significantly weaker, he claimed.

Borosil’s 2mm glass is the same price as the 3.2mm glass “with a small premium”, since drawing the glass out at 2mm thickness results in lower production.

Noting several windows of opportunity opened up with 2mm+2mm glass modules, Kheruka cited the new trend in PV module development towards glass-glass modules. These are thought to improve a modules lifetime and decrease the rate of failure due to the added insolation of having glass on both the back and front sides, instead of using a backsheet.

The ability to use bifacial cell architecture also creates added efficiencies, with up to 30% increases in sandy desert environments for example.

Kheruka added: "Secondly, a module made with 2mm+2mm glass would weigh about 10 kgs/M2 as against 8 kgs/M2 for 3.2mm glass. Since this would be a laminate of two pieces of fully tempered glass, there would be greater safety than with a single piece of 3.2mm glass. Undoubtedly a better bet for roof glazing.

“This is going to make a safer more long lasting module and we are the first guys in the world to have done it."

www.asianglass.com

&RQVLVWHQW HQG WR HQG GLJLWDOL]DWLRQ HQVXUHV ODVWLQJ VXFFHVV

95*6 $

*HQHUDWH DQG FROOHFW RSHUDWLQJ GDWD HIIHFWLYHO\ ² DQG XVH LW IRU EXVLQHVV VXFFHVV

,Q RUGHU WR VXVWDLQDEO\ UHGXFH RSHUDWLQJ FRVWV LQ WKH JODVV LQGXV WU\ SODQWV PXVW EH WKRURXJKO\ RSWLPL]HG 8VLQJ D GLJLWDO WZLQ V\VWHP FRPSRQHQWV FDQ EH WHVWHG EHIRUH FRPPLVVLRQLQJ DQG WKH HQWLUH SODQW VHFWLRQV RSWLPL]HG ZKLOH LQ RSHUDWLRQ 7KLV HQDEOHV \RX WR PDLQWDLQ \RXU OHDGLQJ PDUNHW SRVLWLRQ ZKLOH ERRVWLQJ WKH SURGXFWLYLW\ DQG DYDLODELOLW\ RI \RXU SODQW IRU WKH ORQJ WHUP /HW 6LHPHQV DFFRPSDQ\ \RX RQ WKH SDWK WRZDUG D GLJLWDO IXWXUH ² DV \RXU SDUWQHU VLHPHQV FRP JODVV

News

Manfred Vollbracht steps into retirement Germany After more than 41 years of active involvement, HEGLA Managing Director Manfred Vollbracht has retired shortly before his 66th birthday. “At some point you have to ask yourself what life after work might look like, and when that time has come”, he said, explaining his decision. For more than two years, Mr Vollbracht has been setting the course for his exit from the company’s top position in conjunction with his Management Board colleague, Bernhard Hötger. In addition, Mr Vollbracht will continue to provide the company with consulting services, and will assist the sales team with ongoing projects during the transitional phase.

Mr Vollbracht personally thanked all his staff with a summer party, praising the performance of the entire team.

The Managing Director was himself one of the company’s first employees. Since it was founded in 1976, the increasing amount

of responsibility bestowed on Mr Vollbracht played a significant role in the company’s success.

Today, the internationally active group of companies is one of the world’s leading manufacturers of machinery for the storage, loading, cutting, sorting and residual handling of glass, as well as glass transport racks for transporters and trucks. Sales in 2016 amounted to more than 76 million euros. Until recently, as Managing Director Mr Vollbracht was responsible for overall sales and the company’s marketing.

On behalf of HEGLA’s shareholders and the entire company, the Chairman of the Management Board, Jochen H. Hesselbach, thanked Mr Vollbracht for his long-term commitment and for his hugely successful contributions to the growth and sustainable development of the company. “During your lengthy period of involvement, you were a major contributor in turning this

small factory producing machinery and equipment for the flat glass processing industry into a global player”, stressed Mr Hesselbach during the s u m m e r party.

“We wish you all the best, and hope that you enjoy as much success and happiness in your further life plans as you have done up to this point. HEGLA will remember you and your achievements fondly”.

The existing leadership team of Jochen H. Hesselbach, Bernhard Hötger and Hans-Peter Löhner will be joined by graduate engineer Gerd Schreier (Dipl.-Ing.). “Thanks

to Mr Schreier’s many years of international experience, he is the ideal complement to the existing members of the HEGLA Management Board. He brings with him all the prerequisites to develop HEGLA beyond the important internal market and into the world”, stated Mr Hesselbach.

PJG enters autoglass market China At 8:18 AM of September 13, 2017, the first piece of coated windshield produced

by Shandong PGW Jinjing Automotive Glass Co., Ltd. (PJG) for domestic ARG market launched, which indicated that PJG formally entered domestic ARG market and is a milestone for PJG development in China Market. Hereafter, with the support of both parent companies (Jinjing and Mexico Vitro), PJG will focus on the Chinese market, take full advantage of advanced automotive glass technology of PGW, quickly occupy a certain market share in the Chinese OEM market and at the same time, occupy the market share in the middle and high end of China ARG market, especially in coated ARG market. PJG has confidence to provide more comfortable and more environmental coated glass product for car owners.

PGW started the development of coated automotive glass since the 1990s, and used the coated technology on the vehicles

16

asianglass AG 17-5

much earlier in the world. The trademark of “Sungate” is a very famous brand in the world, and PGW is the company who can produce the triple silver coated automotive glass, is the supplier of Daimler and Benz.

Shandong PGW Jinjing Automotive Glass Co., Ltd (PJG) was jointly established

by Shandong Jinjing Science & Technology Stock Co., Ltd and Pittsburgh Glass Works Hong Kong Limited, and mainly produces and sells automotive glass. Currently, the investment is more than 300 million RMB and the workshop covers an area of over 30 thousand square meters. The design and construction of the plant were dominated by US engineers, referenced the optimized layout and facilities of the United States and Poland PGW plants and designed to build a domestic first-class automotive glass manufacturing plant. PJG, which adopted PGW international standard management method,

hired professional technical and quality team, is strictly following the quality management system of IATF 16949, to produce the automotive glass product which can meet the international quality standard.

Pittsburgh Glass Works Hong Kong Limited is a wholly owned subsidiary incorporated in Hong Kong by PGW. PGW is an automotive glass company the headquarter of which is at Pittsburgh, PA, US. PGW has several production plants in North America and Europe.

The current customers are the world famous car makers, which include GM, Chrysler, Ford, Toyota, Honda, Daimler, BMW, Audi etc.

Shandong Jinjing Science & Technology Stock Co., Ltd (Jinjing) is one of the key stock listed companies in China glass industry (stock code: 600586). Jinjing is a large group company, whose main business includes development, production, processing and sales of glass, soda ash and

its extension products. Jinjing gradually entered the field of new solar energy materials, new energy-saving materials, and is a national hi tech enterprise and key enterprise of China new material base.

Mexico Vitro: was established in 1909, is a well-known industrial manufacturing group in Mexico, the business includes float glass, soda ash for glass production, automotive glass manufacturing and related industry etc.

Vitro acquired PPG flat glass business and PGW production & OEM business in 2016 and 2017 separately.

ASIA... is one click away www.asianglass.com

www.asianglass.com

FastLane

Producing on the fast lane

Move into the fast lane with the fast TPA line by LiSEC. On the FastLane, sheets that do not need any spacer are directly transported via the application station. In case of standard triple insulating glass units, it is possible to achieve cycle times of 33 seconds due to the vertical li over system. The cycle time is even reduced to 21 seconds in case of double insulating glass units. Combined with the high quality of the units and the low investment costs you as a customer will profit from a high ROI. You are able to determine the degree of automation of the plant yourself.

Learn more about this and other LiSEC innovations:

www.lisec.com

at Visit us h Asia Glasstec 4 er 22 - 2 Novemb 19 Booth G | C & B Hall best in glass processing

News

Schott sees growth as quality demand rises China One of the most popular tourist attractions in Shanghai is the Oriental Pearl Radio and TV Tower, which offers a magnificent view of the city, particularly after nightfall.

Frank Heinricht, 55, is probably a little unusual in that rather than being attracted mostly by the spectacular views on such a visit, it is the clear glass underfoot 260 meters up in the tower that keeps him preoccupied. His big question: Is it safe?

Heinricht is the chief executive of the German specialty glass maker Schott, and as such his professional interest in glass follows him almost everywhere he goes.

"Quality and safety are always the top-priority for us and our customers," Heinricht said of his company, which plans to spend 100 million euros ($119 million) expanding its business in China over the next three years, the main aim being to produce more high-quality specialty glass.

Chinese customers are attaching ever more importance to product quality, he said, and this applies to the glass containers for pharmaceuticals that his company makes.

"Our Chinese customers are now opting for higher-quality

glass for safety reasons and for the quality of the pharmaceutical ingredients. They are also looking for containers that can hold their pharmaceutical contents longer."

He attributes the change in attitudes to industry upgrading in China.

"China's healthcare industry is upgrading its facilities, and we see this trend relating to pharmaceutical containers.

That is presenting us more business opportunities."

He also sees the company's growth in the field of diagnostic examination as highly promising because Chinese hospitals are upgrading equipment for such examinations, including glass containers that hold special contents and that require special manufacturing technologies.

The burgeoning telecommunications market in China also presents opportunities to Mainz-based Schott.

Chinese electronic device producers such as Midea, Haier and Huawei are interested in very thin glass that can be used for the surface of household appliances and electronic devices such as laptop computers and smartphones.

Household appliance makers

in China are eager to produce high-end products to achieve new growth as the government encourages manufacturers to increase turnover by modernizing and digitalizing and to be more internationally competitive.

As industries in China have upgraded, Heinricht's view of the country has undergone an upgrade of its own.

Twenty years after first visiting China he is astonished at the huge economic changes that have taken place, he said.

In fact, it is easy even for someone like him who has become familiar with the country to get lost because everything has changed so rapidly in the cities, he said.

"But one thing remains unchanged: the culture and personal styles. It's easy to communicate with Chinese business-people because they are friendly, straightforward, pragmatic and flexible.

"Being flexible is what German people can learn from their Chinese counterparts.

That makes things easier and more efficient."

Schott set up shop in China 2002 when it opened a sales office in Shanghai and a production plant in Suzhou, Jiangsu province. It has since

Zippe kits out KBI

NEWS IN BRIEF

Thailand A batch plant for float glass was successfully put into operation at KBI Thailand

by Zippe.

The float plant located at Kabinburi, Thailand was successfully commissioned at the beginning of September. KBI Thailand is a subsidiar y of Thai container glass manufacturer Bangkok Glass, which has extended its product scope into float glass.

Zippe has previously supplied dif ferent container and cullet glass plants for Bangkok Glass.

“For this reason we are especially pleased that the

18

asianglass AG 17-5

float glass subsidiar y KBI counts on Zippe technology for batch recycling as well as cullet return,” said Zippe Industrieanlagen Project Manager, Heiko Brand.

At the beginning of September, the plant was commissioned according to schedule without complications. The plant is designed for a daily capacity of 600 tons per day.

The weighing of raw materials is ef fected by seven container scales. Two high per formance pan mixers with 3000 litres are implemented as mixers, which guarantee ideal batch homogeneity.

expanded its activities in the country.

In 2012, a local medical apparatus producer, Jiangsu Xinkang Medical Equipment Co Ltd, and Schott founded a joint venture in Jinyun, Zhejiang province, that sells ampoules, vials and cartridges.

It is building a new production plant in Jinyun that will come into operation in October. Schott's pharmaceutical systems division will invest another 30 million euros or so in China over the next three years. This will increase its production capacity by 50 percent over that period, he said.

Heinricht calls the collaboration with Xinkang a success story.

"For German companies it's difficult to understand Chinese culture and to go through all the required administrative procedures in the country. It really helps if you have a reliable Chinese partner."

Schott is seeking opportunities to form joint ventures with other Chinese companies, he said.

"China is now our third-largest market after the United States and Germany, but by 2020 it will be our largest, most of our business sections having enjoyed high growth in China."

Cullet addition is ef fected continuously after the mixing process by three belt scales to enable an ideal batch/ cullet sandwich.

On the transpor t way to the furnace pre-silo, there are dif ferent permanent magnets as well as metal detectors installed to avoid metal impurities in the melting furnace.

Cullet which is transpor ted to the cold end will be conveyed directly back into the batch house. Two hammer crushers are installed on this transpor t way to conver t cullet into an ideal grain size for the direct re-melting.

On October 3rd, from 2:30 to 5:00 pm, the “Incentives for updating machine inventories” Seminar will take place, organized by Vitrum in partnership with GIMAV, the Association of Italian Manufacturers of Machinery, Plants, Special Products and Accessories for glass processing.

Participation in the Seminar is free and open to all industry professionals, but registration is required.

Request your free admission pass to the Fair at http:// ticketonline.fieramilano.it/ vitrum/2017/

www.asianglass.com

SORG offers more:

SOLUTIONS SORG examines each customer’s unique needs and sells solutions, not off the shelf hardware. We listen to what each individual customer wants to achieve in terms of lowering ongoing costs and extending the life of their furnace. Every customer has a different existing asset base, energy costs, raw materials, emission regulations and quality requirements to consider. Lowering total cost of ownership and developing solutions that maximize customer value is the key to your success.

VALUE BY DESIGN

www.sorg.de

News

Global View

Oran to expand safety glass output UNITED STATES Oran Safety Glass (OSG), a manufacturer of specialty glass for buses, military vehicles, and trains, will invest $4.45 million to expand its manufacturing operation in Greensville County, Augusta.

Virginia competed against Wisconsin for the project, which will retain 75 existing jobs and create 55 new jobs.

Governor McAuliffe successfully recruited this expansion for the Commonwealth during a trade and marketing mission to Israel where he met with OSG executives.

“Oran Safety Glass’ second expansion since opening its U.S. manufacturing facility in Greensville County ten years ago demonstrates the impact that Virginia’s industrial environment can have on the development of our existing businesses,” said Governor McAuliffe, speaking at the event. “The decision by an international corporate partner to reinvest in the Commonwealth is a major statement for the region, and we are proud that OSG’s operation in Southern Virginia can accommodate the company’s future growth. As we continue to diversify and build the new Virginia economy, we celebrate the addition of 55 new, quality jobs in a region that continues its economic rebound.”

OSG, an Israeli-headquartered specialist glass manufacturer, develops a wide range of glass products, including armored safety glass, such as bullet-resistant

windows, curved, flat, laminated, and insulated. As a global company with an international client base, OSG provides customized glass solutions for various industry sectors. The company’s expertise covers all areas of glass processing for defense, security, and transportation sectors, as well as special applications for other industries, such as architecture and solar.

“More than 70 percent of all jobs created in Virginia come from existing companies expanding, that’s why retaining quality employers, like Oran Safety Glass, is critical to ensuring a healthy local, regional, and state economy,” said Secretary of Commerce and Trade Todd Haymore. “Home to more than 5,500 advanced manufacturing companies, the Commonwealth will continue to support this booming industry and the workforce that helps it thrive. OSG is a great example of the growth manufacturers can achieve in Virginia, and we look forward to a continued partnership as the company grows in Greensville County.”

The Virginia Economic Development Partnership worked with Greensville County, a member of Virginia’s Growth Alliance, and the Virginia Israel Advisory Board to secure the project for Virginia.

Governor McAuliffe approved a $150,000 grant from the Commonwealth’s Opportunity Fund to assist the County with the project. The Virginia

Tobacco Region Revitalization Commission approved $235,000 in Tobacco Region Opportunity Funds. The company is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.

Funding and services to support the company’s employee training activities will also be provided through the Virginia Jobs Investment Program.

“OSG Inc. has had a very successful growth curve since launching our US operations in 2006,” said Louis Mitchener, Senior Vice President, North America Division, Oran Safety Glass.

“Greensville County, Virginia has been a vital part of that growth so expanding here made good business sense. We are looking forward to our next 10 years and beyond!”

“Jobs and capital growth are a priority of Greensville County,” said Peggy Wiley, Board of Supervisors Chair, Greensville County. “We are honored that OSG has chosen to continue our partnership in the Greensville County Industrial Park.

They have been a vital part of our community for over 10 years and we look forward to many more years of success.”

Virginia Tobacco Region Revitalization Commission ViceChair, Senator Frank Ruff, said, “This expansion shows that OSG is committed to our region and we are proud to have them

as a partner as we work to bring jobs and investment to the area.

We have the workforce, facilities and infrastructure to attract top employers, like OSG, and I’m confident that they will continue to build on the success they’ve seen here in Greensville.”

“The Virginia Israel Advisory Board is proud to have played a significant role in the state’s efforts to secure OSG’s expansion in Greensville County.

This project was a top priority and we look forward to the company’s continued investment and job creation in the Commonwealth,” commented Mel Chaskin, Chairman, Virginia Israel Advisory Board.

“I congratulate Oran Safety Glass on this important expansion,” said Senator Louise Lucas. “As we work to bring new jobs to Southern Virginia, we are proud to support this leading international company that has positively contributed to Greensville County’s economy for more than a decade.”

“I am pleased Oran Safety Glass will invest $4.45 million to expand manufacturing operations in Greensville County,” said Delegate Roslyn Tyler. “The company has been an excellent community partner and provided job opportunities for the citizens of the 75th District for ten years.

Job creation and expansion in Southside is a priority and necessity to boost and grow our economy.”

Safety glass growth helps Glaston FINLAND Glaston has signed an agreement for the delivery of an FC series flat tempering machine to the Finnish insulating glass manufacturer Best Glass Oy. The order is part of Glaston thirdquarter expected order intake.

The machine will be delivered to the customer in Nivala, Finland by the end of 2017.

Best Glass aims to become Finland’s leading insulating glass manufacturer. The company

20

asianglass AG 17-5

manufactures all the elements of modern glass construction, such as insulating glass and tempered as well as laminated safety glass.

Best Glass invests in modern production and the high quality of its end products.In addition to Finland, the company’s products are also sold in Sweden and Norway.

“Finland’s glass processing market is relatively small, and

in recent years the market has been subdued.Last year, Finland accounted for around one per cent of our company’s turnover.

As a Finnish company, we are particularly pleased to have been selected as the supplier of Best Glass’ new tempering line,” says Glaston’s Pekka Hytti, Senior Vice President, EMEA. “Due to tightening safety glass regulations, demand for safety glass is increasing, and we are

seeking to meet this demand in the growing markets of Sweden and Norway, in addition to Finland. Quality and efficiency were key issues for us when making the investment decision.

Thanks to the FC machine, our capacity will grow and we will be able to produce larger glass sizes efficiently without compromising quality,” explains Best Glass' Managing Director, Teemu Ohtamaa.

www.asianglass.com

MACHINERY FOR THE GLASS INDUSTRY PRODUCTION LINES · PRESSES · PRESS-BLOW-MACHINES BLOW-BLOW-MACHINES · SPINNING MACHINES FEEDER · FIRE POLISHING · TOUGHENING / TEMPERING LASER CUTTING · DECORATION CUTTING DEVELOPMENT · AFTER SALES SERVICE

YOUR PARTNER OF THE GLASS INDUSTRY – WORLDWIDE! We design, manufacture and supply production lines for low and high production speed as well as production lines for toughening and tempering. Feel free to contact us from all over the world and get more information on our special production lines for tableware, spinning articles, press-blown articles, stemware, microwave articles, glass blocks, glass insulators, light reflectors and technical articles made of all glass types and all other technical products.

Waltec Maschinen GmbH Kronacher Straße 2a 96352 Wilhelmsthal / Steinberg Germany Phone +49 9260 9901-0 Fax +49 9260 9901-99 E-Mail info@waltec.de

Visit our website

www.waltec.de

News

Glass packaging continues to rise EUROPE A growing demand for glass food and beverage coupled with rising exports has led to a near 3% rise in glass packaging production in Europe.

According to new data from the European Container Glass Federation (FEVE), a total volume of 20.9 million tonnes – or 75.9 billion units – were produced in Europe for the EU and international food and beverage markets.

“The buoyant demand for glass is a strong signal of trust from customers in our industry and in glass packaging to help brands stand out on the shelves both in the European market and internationally,” said FEVE President Johan Gorter.

The performance in 2016 confirms the steady trend of the last 5 years.

Since 2012, the industry has increased its production by

5.8% in volume and 6.1 per cent in units.

Glass continues to be the reference packaging material for leading markets such as spirits, wines and beer, while it is increasingly gaining share in the food, water and dairy sectors.

This is not only due to new consumption trends for local, organic and natural food, but also because of the positive image of glass

packaging and the strong consumer trust in glass as their preferred packaging for environmental, health and taste preservation reasons.

According to a recent survey, glass is consumers’ favourite packaging, with 1 in 2 Europeans saying they use more glass than three years ago and 75% of Europeans view glass as the most environmentally friendly packaging.

Solar glass blocks developed UNITED KINGDOM Researchers at the UK’s Exeter University have created solar cellembedded glass bricks, which in addition to generating electricity let in natural light and provide thermal insulation.

Just months after the debut of Tesla’s long-awaited Solar Roof tiles, which it has begun installing on the homes of its employees, a group of researchers from the University of Exeter have come up with another BIPV solution – a glass block, which can be incorporated into the fabric of a building, replacing traditional brick

and mortar, and is designed to collect solar energy and convert it to electricity.

The block, called Solar Squared, has intelligent optics that focus the incoming solar radiation onto small solar cells, enhancing the overall energy generated by each solar cell. The electricity generated in this way is then available to power the building, be stored or used to charge electric vehicles.

The researchers believe that in addition to powering the building while allowing greater amounts

of light in, their blocks provide improved thermal insulation.

Solar Squared has been spun off from the University as an independent start-up company called Build Solar, which is now looking to encourage investment in its patent pending technology to carry out commercial testing, and then aims to take it to market in 2018.

“BIPV is a growing industry with a 16% annual growth rate. Setting up a company, which can cater to this growing market shall prove beneficial for the UK economy in

the long term,” said Dr Hasan Baig, founder of Build Solar and Research Fellow from the University of Exeter’s Environment and Sustainability Institute.

As the PV applications for building continue to gain traction, a recent study authored by independent energy consultant Andris Bankovskis, examining BIPV deployment across the U.K., showed that householdsas-power-stations could reduce energy consumption by more than 60%, saving the average household over GBP 600 a year.

Drop dispensers to keep glass at the forefront WORLD The global market for drop dispensing bottles is expected to generate considerable growth opportunities for packaging manufacturers serving pharmaceutical, cosmetics and personal care industry. Drop dispensing bottles have evolved in terms of design and material in order to serve the advanced product forms. The global market for drop dispensing bottles is subject to paradigm shift in the market dynamics particularly on the backdrop of changing preferences of pharmaceutical buyers.

Pharmaceutical companies have heavily invested in research and development to produce advanced drug delivery formats to tackle the healthcare issues of the consumer world. Demand for packaging

22

asianglass AG 17-5

designs that specifically match these advanced drug delivery formats have created scope for marketing of packaging systems such as drop dispensing bottles.

Packaging companies are also manufacturing drop dispensing bottles for non-pharmaceutical clients including cosmetics, personal care, clinical laboratories, industrial chemicals and fertilizers.

The global packaging market is abuzz with product development activities targeted particularly towards specific requirements of clients from diverse industry backgrounds.

Packaging companies supplying drop dispensing bottles have to similarly cater to clients from diverse industry backgrounds.

Variations in the design specifications offered by drop

dispensing bottle manufacturers allow the market to fulfill diverse packaging requirements.

Customization competencies are observed to be the growing trend in the drop dispensing bottles market. Contract manufacturing organizations (CMO) are increasingly adopting the practices of customization to better serve pharmaceutical clients. CMO serving the drop dispensing bottles market cater to limited number of clients that contribute heavily to the overall revenues.

Material and design specifications of the drop dispensing bottles allow the drop dispensing bottles to withstand long and complex supply chains existing in the pharmaceutical and other consumer industries.

Drop dispensing bottles catering

to high sensitive chemical and pharmaceutical products are prominently made of glass. Drop dispensing bottles made of glass are supplied in amber, clear and other color options. Amber glass drop dispensing bottles are commonly preferred in the market for glass drop dispensing bottles but are under pressure as bottles are increasingly being supplied in plastics form.

The common plastics used for manufacturing drop dispensing bottles are polyethylene (PE), low density polyethylene (LDPE), high density polyethylene (HDPE) and polyethylene terephthalate (PET).

Rigid plastics such as LDPE, HDPE, and PET allow manufacturers to implement wide array of design specifications.

www.asianglass.com

FIC Boost ad 254mm x 86mm

14/12/16

09:04

Page 1

, Tomorrow s Technology Today

The world’s leading glass companies come to FIC with their electric boost/heating projects E-glass Installations up to 3,500kW in oxy-fired furnaces for

extra tonnage, improved glass quality and no strand breakages.

Container glass Various installations in flint and coloured glasses, up to 2,500kW, for increased output and quality.

Float glass Boosting installations, from single-zone 1,000kW to 3-zone 6,000kW designs, to increase clear output, maintain tinted output, save energy and reduce emissions. Multiple bubbler installations.

Display glass Numerous installed power projects, up to 1000kW for TFT/LCD glasses - using tin oxide electrode blocks for exceptional glass quality.

Electric furnaces New designs for most glasses, including

opal. Complete technical back-up for melting quality improvement from raw materials through to forehearth and all operational problems. Troubleshooting service on all existing furnace designs.

Tel +44 (0) 1736 366 962 Fax +44 (0) 1736 351 198 Email general@fic-uk.com

FIC (UK) Limited Long Rock Industrial Estate, Penzance, Cornwall TR20 8HX United Kingdom

www.fic-uk.com

, The World s Number One in Furnace Technology

LASER GLASS CUTTING SOLUTION The most-advanced, all-laser cutting process for glass, sapphire, ceramics and other transparent brittle materials.

ROFIN SmartCleave® – your first choice!

• Unmatched process stability • Up to 2,000 mm/s cutting speed • Straight, curved, angled and chamfered contours • Glass thickness range 50 µm to 12 mm • Surface roughness, Ra < 1μm • Significant reduction of process steps • Higher yield for mass production • Touchless separation with CO2 laser SEE MORE ABOUT LASER-GLASS-CUTTING: www.rofin.com/laser-glass-cutting

COHERENT AND ROFIN ARE NOW ONE. FIND OUT MORE AT TOGETHER.COHERENT.COM INFO@ROFIN.COM WWW.COHERENT.COM, WWW.ROFIN.COM

ROBA_17_005_Anzeige_Glasschneiden_02.indd 1

31.03.17 12:41

SP

EC IA L

RE PO RT

News

People and Places

Glass industry launches new global prize Finland For those familiar with the Glass Performance Days the recent Conference in June 2017 meant business as usual. But perhaps business was not quite so usual after all. The 25th Anniversary GPD cabled out lots of organizational innovations but also paid very special and certainly highly unusual tributes to its Founding Father, Chairman Emeritus and Dynamo Jorma Vitkala of Glaston,Tampere and Finland in the country´s 100th Anniversary Year.

The “Jorma Vitkala Award of Merit” 2017 The “Jorma Vitkala Award of Merit” was established by the global glass industry in 2017 in honor of the founder and Chairman of the GPD Jorma Vitkala. He became the first recipient of the award in a handover ceremony at the Opening Ceremony where the international glass industry was represented by Jean-Paul Hauteker of Dow Corning and Jonathan Cohen of Kuraray.

In the future the award will recognize someone who has significantly contributed to the glass industry, the design, use and applications of glass. Nomination will be carried out through an advance survey within the industry network with relevant cooperation from the media. Plans also call for the establishment of funding of a worthy glass industry purpose attached to the award.

Honorable recognitions Several additional tributes were paid to the GPDs long-time Chairman Jorma Vitkala at the opening of the 2017 Conference.

GANA, The Glass Association of North America, bestowed honorary membership on Jorma Vitkala confirmed in person by Stanley Yee, GANA Vice-President. In this capacity he became a European newcomer to the recipient list of GANA Honorary Membership since the year 2000. The total number of honorary memberships is now eight. Sammy Hui, Vice President of HKFA, Hong Kong Façade Association, handed over a special HKFA Award. Bruce Park, Board Member of the Korean Architect Façade Association, KAFA, brought a special tribute of international dimensions.

US Glass Magazine, a heavyweight of the press, awarded Jorma Vitkala and the GPD special recognition for successful promotion and support of the international flow of information.

A most personal and emotional tribute came in the form of a video greeting put together by some 20 key supporters and participants of the GPD. The video expressed heart-warming appreciation and inspired a standing ovation for GPD´s longtime chairman at the opening ceremony on June 28, 2017.

Driving the GPD bus…

Driving the GPD towards new heights as a Conference and initiating new openings is largely the work of Jorma Vitkala, Conference Chairman since the beginning.

- I admit that I must take on the task of pushing forward but I am absolutely not alone in doing this, Jorma Vitkala comments. Our organizing committee does a tremendous job and the initiatives that come from our speakers and session chairmen are gems in themselves. Company visits, workshops and plant tours add a lot of practical input to the conference program also. The encouragement and financial backing from our main supporter the Glaston Corporation has enabled my more than 25 years of work on behalf of the GPD. And then there is the requirement to follow the times. Some years ago it was felt that the clock-speed of change in the glass industry was too slow compared for instance with the IT-industry. Today we are a lot faster, perhaps partly thanks to the GPD. The industry has put its act together.

The key success criteria for the GPD deserve to be repeated and Jorma Vitkala is very clear about them: - Without quality programs you cannot have a quality Conference and you cannot have quality programs without outstanding speakers.

24

asianglass AG 17-5

So we have to be very ambitious about that and not forget that our task is to inspire, educate, innovate and develop and to share information and experiences for the good of the entire industry. The objective is to expand the use and application of advanced glass products that succeed on the markets their producers choose and are second to none in quality and innovation. We want to bring forward the best that glass can do.

- The GPD is not a commercial event. It is a rather a string of high level technical presentations that bring forward the latest new products, methods, design capabilities, practices and trends as from the business world. The GPD also features a high-level research module. Normal rules of proprietary information and competition apply. The GPD stands out as an excellent platform for the testing of forward-looking ideas and innovations in front of real experts who can provide very useful feedback.

- A special value of the GPD is that networking is so effective and free of normal commercial pressure that you find on trade fairs.

Relationships are built for current and future use. With the world´ s foremost glass specialists in simultaneous attendance time-use is very effective.

Heavyweight appreciation Some of the heavyweight participants and long-time supporters of the GPD have gone on record with highly appreciative statements.

Jean-Paul Hautekeer, Global Marketing Director for High Performance Building at Dow Corning: “What Jorma Vitkala has accomplished for the glass industry is unparalleled. GPD has become the reference for the industry in terms of knowledge management and networking. You can gain in three days at GPD what would traditionally take a year, whether it be for learning, contacting industry colleagues or looking for innovation and new business opportunities. That is exactly why people are accepting the invite every two years to meet in Tampere.

An in business, nothing would be possible without the human element that Jorma Vitkala is personalizing so much.”

Jonathan Cohen, Global Marketing Director at Kuraray: “What is also good is that GPD continuously evolves with the industry and the modern world to propose something that matches the needs of the participants. An example is the use of new digital tools at the Conference. These contribute to the advance scheduling of meetings between participants and the organizing of additional ones during the conference. The program also includes an application to enable easy monitoring of the progress of the meeting and locate the venues for the most interesting topics.

What was also new in 2017 was a direct connection between a dozen start-ups operating in the glass segment to drive more frontend innovation in this industr y. The new venue enabled increased efficiency in transferring from one presentation to another and always convening in the central area. For sure we believe GPD has a bright future and will continue to meet the needs of the glass industr y.”

Bruce Park, Board Member of the Korea Façade Association KAFA “It was a truly touching moment to witness the thunderous applause for Jorma Vitkala from hundreds of industry experts at GPD 2017.

This appreciation followed from his distinctive achivevements and contribution to the glass and glazing industry overall. GPD´s rise to the leading global glass conference as a knowledge sharing and networking venue was only possible because of Jorma´enthusiastic dedication, cooperation and leadership for the industry. Over the past 25 years .“

www.asianglass.com

ZYAROCK® glass tempering rolls

INITIATOR

The PLUS for your operation ZYAROCK® glass tempering rolls – the quality standard in the industry since its introduction in the seventies. Stable and consistent performance over time – Best cost / performance ratio – Guaranteed.

Contact us for more information.

Initiator Innovator Expert Partner of Choice

VISIT US AT Phone (+86) 512 6274 8972 Fax:(+86) 512 6274 8009 Winny.wu@vesuvius.com www.zyarock.com 22 - 24 NOVEMBER 2017 MARINA BAY SANDS, SINGAPORE

STAND S32

SP

EC IA L

RE PO RT

News

Michael Robinson, CEO & Design Director, ED Design srl. Keynote Speaker GPD 2017: “One of Jorma Vitkala´s greatest impacts in the glass industry is in creating a most incredible networking context for the global glass industry. GPD is where people meet people. In fact, after my keynote speech, I receives five requests to come to different glass manufacturers around the world to repeat my speech. The most powerful request came from the Glaston Chairman who complimented me for the enthusiasm and creativity he found in my presentation.”

lost is both bold and convincing. The rise of the Tampere region to become the focus of attention of the glass world is a remarkable achievement. I would see a lot of the reason being individual visions combined with perseverance. The ability to sense the right tune of the times is also important. The GPD also has to be credited for the building of active media relations.”

Match-making for start-ups A new feature of GPD 2017 was the inclusion of the Step Change module to promote contacts between innovative newcomers and seasoned industrialists.

GPD 2017 introduced the first start-up event of the glass business under the name Step Change. The idea was to secure benefits available for the whole industry when innovative start-ups meet leading established companies. The glass industry faces the need to develop new value-added for its customers and at the same time improve competitiveness and profitability for its products. Step Change participants included companies focusing on i.e. intelligent glass, IoT, nano coatings, implants, automation or display technology.

A total of 34 small international companies participated in the GPDs start-up module and 23 of them took part in a pitching bid with three minute elevator talks that enabled them to present their offering to all GPD participants. Business Tampere took part in the recruiting process for these companies and in their preparation for the event to ensure smooth presentations despite the limited time available.

GPD Chairman Jorma Vitkala put his dynamic, solution-oriented and practical competence to full use for the purpose. For the start-up organizations the GPD proved to be formidable opportunity.”

Tahvo Sutela, ex-Pilkington, glass industry consultant: “When Jorma Vitkala contacted me in the early 1990s about the GPD concept I worked for Pilkington. Pilkington had recently launched a Low-E coated glass product for tempering purposes and Tamglass/ Glaston had introduced a tempering line based on forced convection for high-quality tempering of Low-E glass. When Jorma Vitkala asked us to participate as speakers at an educational seminar Pilkington´s top management expressed strong interest and sent their representatives. From the first time on the GPD proved a fruitful environment for participants but also for the informal exchange of thoughts, ideas and contacts for experts within the own Group.

Personal contacts with the organizers also deepened. Pilkington was the first world-class GPD supporter outside the sphere of tempering technology. The key success factor for the GPD over the years has, however, clearly been Jorma Vitkala´s visionary capability and his ability to generate enthusiasm. The combination of the professional and social elements in the program made participants enjoy both the conference and the company of one another. We worked very closely together developing the first 3-4 Conferences and were so pleased when we had achieved the critical mass for continued success.“

Tapio Nissinen, ex- Glastech founder and CEO “My background in the glass industry (from 1975) provided broad based contacts with the international players both in the East and West. I learned how some wanted to protect their own interests by withholding information. When I met Jorma Vitkala I discovered that his ideas, too, were quite different. Information sharing is in the interest of all. Future customer demands will differ from current requirements and the understanding of upcoming needs underlines the needs for dedicated development of know-how.

This way of thinking found brilliant acceptance in the Tamglass/ Glaston organization and led to the birth of the GPD. In my own company my views of the importance of networking continued to grow. I discovered that the most effective channels were the GPD and the trade press. The contact base was international from the start, East and West. I was honored by being called “The father of the Russian IG-industry”. My first encounter with Jorma Vitkala was in an escalator at the Glasstec Fair in Düsseldorf in the early 1990s. I immediately discovered his impressive memory capacity and curiosity and the fact that he did not count his working hours.

Attracting the number one glass industry players in the world to the GPD became his solid mission.”

Olavi Uusitalo, ex-professor of Marketing, Universities of Jyväskylä and Tampere, consultant “As a professor of marketing I have studied how companies have attempted to attract attention and market space at various types of traditional exhibitions. Somehow the commercial picture has lacked depth and I have found nothing close to what the GPD came to represent. One can see that there was open demand for something like the GPD particularly in its networking capability. The concept of building international contacts in the spirit of there is nothing to be

26

asianglass AG 17-5

Immediate advantages For some early participants and sponsors the GPD brought immediate benefits.

Architectural recognition Attracting the world´s top architects and structural designers has been a central ambition of the GPD since its beginnings.

Matti Rautiola, Director General of the Finnish Building Information Foundation RTS, architect “The GPD is without doubt the most important and largest glass conference. The reasons why the GPD has managed to attract architects and building designers is its down-to-earth format and also the fact that its Chairman Jorma Vitkala has been so easy to approach. GPDs programs go deeply into the substance of glass technology and the publishing of the proceedings makes it a unique knowledge base of glass industry that is at the same time both innovative and challenging. Architects are not known to be prose writers, they think in visual terms. When they see how pictures fit together they communicate in terms familiar to them. I would characterize Jorma Vitkala as being of the same kind. In itself it is a unique situation to see how the GPD of the City of Tampere has been able to become a hub at the reins of the world´ s glass industry.

For his efforts to promote glass in construction Jorma Vitkala quite deservedly received the Finnish Flat Glass Association´s Award as Glass Builder of the Year 2013.

GPDs impressive record The GPD can certainly look back on an impressive record of collecting and sharing glass essentials. Recording 14,600 delegates, 1,100 speakers, 3,200 presentations and 10,000 pages of technical documentation from the beginning to date marks a long way.

GPD 2017 registered a total of 657 participants in Tampere and on top of that 160 specialists at the high-rise seminar I Helsinki.

A total of 16 focused workshops with all together 402 specialists attending were organized preceding the GPD.

www.asianglass.com

Losing sleep about your glass plant?

Christoph Jatzwauk COO

Don't.

Setting up and running a glass plant is not for the faint-hearted.

I know the pressure that the glassmaker is under: time, productivity, quality, just to name a few. But the one thing glassmakers can be assured of, is HORN’s service and support. An important element of our mission is to relieve the pressure on glassmakers in every way possible. From cutting-edge technologies helping boost productivity, to innovative concepts like ecofurbish®: the affordable, ecological and economical optimization of glass plants. So, whether you need a complete turn-key glass plant or a single burner or even a spare part, visit www.hornglass.com or contact me – I’d be delighted to hear from you.

CO N TA INER G LAS S • COSM E T IC GLA S S • F I B R E GL AS S • F L AT GL AS S • F L O AT G L A S S L I G H TIN G • PH ARM ACE UTICAL GLASS • S O DI UM-S I L I C AT E GL AS S • TAB L E WAR E • T U B I N G

News

Batch

Prices expected to firm in Q4 Asia // Soda Ash Spot soda ash prices from China could well stay firm in the coming months as an expected easing of supply tightness will coincide with a seasonal pick-up in demand for the material.

Chinese producers would attempt to increase production

by November as the nationwide environmental inspections of chemical factories wind down, while buyers typically shore up their inventories ahead of winter, market players said.

During the week ended 13 September, the country’s export prices for dense- and light-grade soda ash were assessed at $270280/tonne FOB (free on board) China, up $10/tonne from the previous week, ICIS data showed.

Prices of Chinese material have

been rising since the start of August, with cumulative gains of 10-13%.

China’s export supply has dried up due to plant turnarounds, followed by reduced run rates at soda ash plants when the Chinese government’s strict environmental campaign was launched this year.

In response, Asian buyers, including those in China, sought supply from alternative sources such as the US, Turkey and Europe.

But a wide buy-sell gap of $20/tonne hindered progress of discussions for fourth-quarter shipments.

Some end-users in southeast Asia were comparatively more anxious in securing their required quantities to maintain production

and deemed the cost to be of secondary concern.

“I have no option but to grab [any available lots] because it’s now a sellers’ market,” a southeast Asia-based end-user said.

Meanwhile, a Septembershipment soda ash cargo from Turkey to northeast Asia negotiated recently was heard to have been delayed for unclear reasons.

“There [is] no floating [price] quotation because most suppliers [are] not willing to provide updated pricing,” a northeast Asia-based trader said.

“We are still seeking other suppliers to initiate deal[s],” he said.

Soda ash is mainly used in

the chemical industry, glassmanufacturing, metallurgy, paper-manufacturing, textile, dyeing, synthetic detergent, soap, washing powder, water treatment, as well as in the petrochemical industry.

Meanwhile, market players in China expect some longer-term impact on the country’s soda ash supply stemming from the government’s environmental campaign, mainly because it will mean increased cost for producers.

A Shandong-based soda ash producer highlighted cost concerns amid requirements to use cleaner but more expensive natural gas-based power instead of coal-based power for production.

Border strike slows soda ash supply Pakistan/India // Soda Ash As AG goes to press, the Indo-Pak trade operating through the Attari Border remains at a standstill as the porters went on strike, leaving hundreds of trucks stranded on both sides of the border.

As the porters had gone on strike demanding certain extra charges for unloading goods at the Integrated Check Post, through which the trade operates between the two nations.

As around 15 trucks carrying various commodities leave for Pakistan every day, around 150

to 200 trucks are imported by Pakistan through the ICP each day. As the deadlock continued trucks on both sides remained stranded and the traders had no option other than playing the waiting game.

As one approaches towards the ICP at Attari border, one can spot around hundred trucks lined up along the road. They are waiting for trade to resume so that they can enter the ICP and load goods that came from Pakistan.

Prominent items that are sent to

Araltuz eyes exports Kazakhstan // Soda Ash Kazakhstan has started to export Aral salt to Azerbaijan, and the first consignment was already sent out, said Evgeniy Korol, the vice-president of JSC "Araltuz" for sales and marketing.

The vice-president didn't mention the amount of salt that Azerbaijan will be receiving from "Araltuz".

"We also supply products to Kyrgyzstan, In the future, we plan to export to China and the countries of Eastern Europe," Korol said.

He further mentioned that in the

28

asianglass AG 17-5

India by Pakistan include cement, gypsum, soda ash and few other products.

As the truck drivers have no option other than waiting along the road, driver Surjit Singh said, "We have come here at the border to load items that have come from Pakistan but due to strike, we are facing numerous problems and going through losses. We have to stay here or go back home. It is a dispute of porters but we are being unduly harassed."

Another driver, Harpal Singh also

stated that due to strike about hundred trucks are waiting at the border and there is no relief.

As traders are also facing the heat due to the ongoing strike, importer Vikrant Arora said, "The strike is on past four days and we are facing losses every day.

Our goods that have come from Pakistan are stuck up at the border and we are just going to border every day with a hope that things will get better. We want Central government to intervene and resolve the deadlock."

Divestments continue India // Magnesite

near future JSC "Araltuz" plans to launch the production of soda ash.

"In particular, it will be used in the production of glass in Kyzylord.

The plant's capacity is up to 300 thousand tons of products per year," said Korol.

"Araltuz" is the largest Kazakhstani producer of food iodized and technical salt. The company produces a wide range of products, including food salt in soft and hard packs of different grind, briquetted and tableted salt, as well as salt for technical needs.

RHI and Magnesita have announced divestment agreements ahead of their proposed merger. RHI has signed a contract with a European refractories supplier for an undisclosed sum regarding the sale of its dolomite business in the European Economic Area. The sale consists of the production sites at Marone in Italy and Lugones in Spain. Magnesita has entered into a definitive agreement with Intocast to divest its business related to the production and supply of

magnesia carbon bricks produced at the company’s Oberhausen plant in Germany for Euro20.3m.

Both sales were required by the European Commission as part of the merger process.

“With the sale of the two sites, the combination of RHI with Magnesita is also still right on schedule,” said RHI’s chief executive officer Stefan Borgas with regards to his company’s divestments “We expect the confirmation by the European Commission in the near future.”

www.asianglass.com

News Anaylsis

News

30

Glass packaging: a premium indicator?

W

ith Russia’s beer market shrinking, it has become ever more important for manufacturers to stand out among the competition. Packaging will remain a crucial tool for brewers to get their products noticed by effectively tapping into the most important consumption drivers – primarily the consumer desire for escapism and fun.

Events in July 2011 had an outsized impact on the Russian beer industry, with the new state law recognising the beverage as an alcoholic drink and placing limitations on the products’ advertisement, distribution and consumption. Economic and political instability in the country has also added to consumer uncertainty, hurting the beer market further. As a result, brewers need to be increasingly creative with their packaging designs, to both protect their share, and to try to win consumers back to the category.

Packaging will remain a vital differentiation tool, with beer manufacturers coming up with novel packaging designs in order to win consumers back to the category. Innovation will include glass bottles mimicking the packaging of adjacent categories, such as champagne.

The desire for a beer to accompany rest and relaxation moments motivated 20% of beer consumption in 2016 in Russia. To tap into this need, manufacturers need to come up with a packaging aspect that conveys the special nature of beer offerings, such as using a premium matte glass or a closure mimicking corks. This is to build a ritual that signals the start of ‘me-time’ for the consumer.

For example, this edition of the Russian Imperial Stout clearly targets special occasions and can be marketed as competing with sparkling wines. While this product is a gift edition, it is one example of how packaging can help shape the consumption occasion to make it more special. This premium upscale positioning, amplified by the relevant brand story, is the right way to enhance one’s moments of escapism.

Another example of beer packaging that taps into consumer desire for a comfort beverage is a packaging design that explicitly reconnects consumers with fun times they have had in the past. This capitalises on nostalgic feelings and consumers’ interest in recreating those moments. For example,

asianglass AG 17-5

Heineken’s Baikal Shore’s packaging capitalises on the popular recreational activities of camping, hiking, and boating, which are often accompanied by a beer afterwards. Launched in Eastern Siberia, the beer will strike a chord with Russian consumers who are likely to have spent time on a lake when they were younger.

Consumers’ desire for a fun or novel experience motivated 15% of beer consumption in Russia. To tap into this need, beer brands, especially ones new to the market, need to come up with quirky label designs to get consumer attention. An example of such packaging is Mazai craft

UNIQUE GLASS DESIGNS CAN HELP THE BRAND IMAGE STAND OUT beer from Bochkari brewery. In promotional materials released by the manufacturer, the beer is accompanied by a mug with a metal handle. While it is unclear whether the brand has also launched the mug, this shows how unique glass designs can help the brand image stand out and create a unique experience for consumers.

Another example of eye-catching design is a beer from the city of Nizhniy Novgorod, where Heineken rolled out a limited edition of the local brand Okskoe. The beer’s can design is inspired by a local art painting technique.

The launch was a part of a limited-edition series that also referenced historical militia and a popular hockey club. While the launch used elements of the local culture, the main feature of this design is its unusual bright patterns that will ensure the beverage is noticed.

A final example of how packaging innovation will create unique consumption occasions for consumers, Miller launched its

‘Change the Music of the Future’ project in Russia, targeting consumers who like beer and electronic music. Using technology, consumers are able to contribute to an interrupted music track, generated by an algorithm. To add their input to the composition, beer consumers scan the chip of the non-alcoholic Miller bottle. This directs them to the website where the track is playing, and where they will be asked to take a snapshot of their face. The system will analyse their appearance, and alter the musical composition based on parameters such as age, gender and emotional state.

Facts: beer bottles will be key

From 2001 to 2011 beer sales in Russia grew 40%, while a third less vodka was bought and consumed in this time period.

Since then, the trend has continued. From January to August 2016, sales of beer actually outstripped those of all spirits combined, not just vodka. Beer accounted for 45% of sales, while the latter category could only manage 42%. While some of this can be explained by seasonality – Russians drink more beer in the summer – the figures show the sheer potential of selling beer in the Russian market.

Regardless of consumption trends, beer is an obvious choice for firms looking to target Russia – while foreign brands can and do compete in the vodka market, almost all in the premium sector, Russians are used to drinking beer of international origin.

That being said, the market’s biggest player is the St. Petersburg-based Baltika brewer (owned by Carlsberg), with 37% of the market according to Euromonitor International. The three next biggest are all foreign – Efes, Heineken, and San InBev, with 13%, 11% and 11% marker shares respectively.

Much of this volume is produced under licence in Russian breweries, but for imports the picture is largely the same. Statistics from Russian industry website Pivnoe Delo show that AB InBev’s share of the import market grew substantially in 2016, helped by the global behemoth’s 2014 acquisition and subsequent merging of two brands that enjoy great popularity in Russia – Franziskaner and Spaten. Powered by InBev’s fearsome distribution networks, Spaten went on to become the largest imported brand in the Russian market in 2015.

www.asianglass.com

NEW GENERATION OF AUTOMATIC CRACK-OFF MACHINE WITH LASER

• • • • •

cracking off machine for tumblers and stem ware reduce scrap down to 3% lean laser cut without dust 3 closed 200 Watt CO2 Laser, up to 3 years lifetime special machine design available for: - big items up to 300mm diameter - wall thickness up to 7mm

www.formaglass.com

info@formaglass.com

• • • •

Flexible mounting off grinding and seaming stations Single, double and tribble loading system Single, double and tribble laser system capacity up to 70.000 glasses/day with cheap refill costs for laser

Visit us at our booth J06 Hall B&C

ANALYSIS: Processed glass

Picking up the pace processed glass markets in Iran

Yogender Malik looks at how despite the influx of technology and the considerable domestic support of some world class float glass, Iranâ&#x20AC;&#x2122;s glass processors remain largely absent from global markets.

T

he addition of three float glass lines in last four years, availability of coated glass, easing of economic sanctions and an emphasis on commercial and high & mid-range residential constructions have been some of the most important factors, which have led to a great deal of brisk activity in Iranian processed glass sector in the last two to three years.

The countryâ&#x20AC;&#x2122;s recently renewed political stability, combined with the loosening of international sanctions, lets glass producers and processors to look to the near future with confidence as they strive to meet a diversity of needs of processed glass in the Iranian market. A number of established glass processors have undergone modernisation of their plants in order to expand their product portfolio, achieve energy efficiency and process automation in order to better serve one of the most lucrative processed glass markets in the region, where construction activities and usage of glass is increasing at break-neck speed.

Catered by three float glass producers and more than two dozen mid scale processors, Iranian processed glass market has registered double digit growth

32

asianglass AG 17-5

in each of the last three years. The industry is expected to clock similar growth rates for a number of years, as new demand from new commercial, mid and high scale residential construction and automotive glass is expected to remain very robust for the foreseeable future.

Architectural GLASS

With a population of nearly 80 million, and 64% under the age of 35, the country has the ingredients to become a major processed glass market on the lines of United Arab Emirates. Huge investment in commercial constructions, which were lacking due to economic sanctions for past many years is expected to boost the consumption of processed glass by many percentage points in next few years.

The total construction market in Iran was at $154 billion at the end of 2016, and expected to reach $236 billion by 2020. Construction growth has been primarily driven by the residential segment, accounting for 45% of the market, due to a severe shortage of housing stock. The demand stands at 1.5 million housing units per year, and the current market is only able to supply 700,000 units.

www.asianglass.com

ANALYSIS: Processed glass

Processed glass producers are expected to see growth not only from new housing development, but in renovations of existing buildings as well. In addition to upgrading old buildings for general safety and upkeep, many buildings across Iran require reinforcement and renovation in case of earthquakes.

Over the next five years, processed glass market will be supported by rapid urbanisation and population growth. Government efforts to reduce the country’s housing deficit will also help the market to grow over the next five years.

Airport demand

Processed glass suppliers are expected to see explosive growths from seven major airports in next two years. Currently, the Iranian government is seeking private investors to fund a $3-billion expansion of the airports at Mehrabad, Imam Khomeini, Tabriz, Mashhad, Isfahan, Kerman and Shiraz.

Iran has already gathered around $2.35 billion in foreign investments through memorandums of understanding, and secured $650 million in firm contracts. Among the deals, French company Vinci Airports signed an to develop Mashhad Airport and Isfahan Airports; Italy’s SEA Group signed an MoU for a new 80,000-sqm passenger terminal at Tehran’s Mehrabad International Airport; and Italian construction company Vitali signed a contract to develop Tabriz International Airport. The government is also looking for investors to develop a new terminal at Teheran’s Imam Khomeini International Airport.

“An expanding economy, growing demand for contemporary lifestyles and booming investment in tourist infrastructure are combining to create new opportunities for processed glass and value added glass products in the country, ” according to Moslem Rahnama, General Manager of Eshafan Shahab Glass Company, a glass processor based in Segzi Industrial Area of Segzi.

“This represents the beginning of a boom in the industry,” he further says. “We believe that we are on the verge of a new era for Iran and its processed glass industry.”

processors. In the previous fiscal year (March 2016-17), Iranian carmakers produced 1.3 million vehicles, recording a 40.7% growth year-on-year, according to the Iranian Ministry of Industries, Mining and Trade.

The country’s leading auto manufacturer, Iran Khodro Group, accounted for 634,481 units, up 31% YOY. SAIPA, the second largest manufacturer produced 319,850 units, up 43% while Pars Khodro made 197,989 units, up 74%.

The growth in numbers was particularly significant for the last month of the year (Feb. 19-March 20). IKCO produced 57,433 vehicles, marking a 16.2% rise. SAIPA posted a 46.6% growth with 47,135 units.

Building bonanza

The new Iranian Building Code is creating completely new dynamics in the Iranian processed glass market through its new building requirements: transfer of technology, energy efficiency, sustainability, modern construction material and technology, and many others.

These needs for modernization promise immense lucrative opportunities for glass processors. While the government continues to tackle the low-income housing shortage and infrastructure development projects, private investments are pouring in to more lucrative markets such as high-rise offices, shopping malls, hotels, as well as hospitality and tourism related developments, giving a much needed boost to processed glass demand in the country.

Automotive glass

Iranian automotive glass sector has seen better growth as compared to the country’s architectural sector. Automotive glass producers and processors have never gone through a dull period despite the sanctions, as the domestic automotive production has remained steady.

The latest statistics on the output of the country’s automotive industry suggest a huge surge for automotive glass producers and

www.asianglass.com

Private construction permits issued in last five years 2015-16

2014-15

2013-14

2012-13

2011-12

Tehran

34,179

27,449

23,671

19,625

29,266

Other large Cities

75,672

67,287

56,836

44,461

69,161

Other Urban Areas

181,947

159,469

147,218

133,196

163,385

326,188

282,138

265,176

227,725

197,282

Number

Total Urban

Total Floor Space (‘000 sqm) Tehran

34,401

29,518

24,855

19,711

31,693

Other Large Cities

39,111

35,338

32,298

30,484

36,295

Other Urban Areas

79,306

69,771

63,245

57,815

70,103

181,207

159,655

146,298

120,398

108,010

1324

1260

1110

1004

1205

Other large Cities

956

890

712

686

820

Other Urban Areas

647

582

472

434

512

793

756

618

581

547

Total Average Floor Space Tehran

All Urban Areas

AG 17-5

asianglass

33

ANALYSIS: Processed glass

Processed glass Consumption in different provinces as in Iran

Province

Tehran

Population

Processed glass consumption in Architectural Contribution to segment national GDP in different provinces ( % of National Consumption)

13.5 %

24.9 %

29.7 %

Khorasan

5.6 %

4.9 %

6.7 %

Isfahan

4.6 %

6.4 %

5.9 %

Fars

4.4 %

4.4 %

4.6 %

Khuzestan

4.3 %

14.5 %

6.1%

Azerbaijan, East

3.6 %

3.8 %

4.7 %

Azerbaijan, West

2.9 %

1.9 %

3.8 %

Mazandaran

2.9 %

3.4 %

3.3 %

Kerman

2.7 %

2.4 %

3.0 %

Alborz

2.4 %

3.8 %

3.1 %

Gilan

2.4 %

2.2 %

3.2 %

Three major float glass companies- Kaveh Glass Group, Sahand Industrial Group and Ardakan Float Glass Corporation -- produce automotive grade glass. The three companies have invested in automotive processing facilities to supply glass to leading car and passenger vehicle producers.

Sistan & Baluchistan

2.4 %

1.0 %

1.5 %

Kermanshah

1.9 %

1.5 %

1.7 %

Hamadan

1.8 %

1.5 %

2.3 %

Kaveh Glass Group

Lorestan

1.8 %

1.2 %

2.2 %

Golestan

1.6 %

1.4 %

1.4 %

Kurdistan

1.6 %

1.0 %

1.4 %

Hormozgan

1.4 %

2.1 %

1.4 %

Markazi

1.4 %

2.2 %

1.6 %

Ardabil

1.3 %

1.0 %

1.5 %

Qazvin

1.2 %

1.3 %

1.6 %

Qom

1.1 %

1.0 %

1.3 %

Bushehr

1.0 %

3.1 %

1.6 %

Yazd

1.0 %

1.1 %

1.4 %

Zanjan

1.0 %

0.9 %

0.9 %

Bakhtiari

0.9 %

0.6 %

0.7 %

Khorasan, North

0.8 %

0.6 %

0.7 %

Ahmad

0.7 %

3.9 %

0.9 %

Khorasan, South

0.6 %

0.4 %

0.5 %

Semnan

0.6 %

0.8 %

0.7 %

llam

0.5 %

0.7 %

0.5 %

Demand for automotive glass might increase further, as automakers are boosting production. Automakers’ lack of liquidity, however, could be a potential issue down the road, as it would delay much-needed payments for the glass industry.

Like the recent past, Iranian automotive glass producers and processors are expected to fare much better than architectural glass counterparts in the short and medium run as Iranian car manufacturers have restarted the cooperation process with European companies, including Peugeot, Citroen and Renault. These efforts resulted in a strong growth of nearly 151 percent for automotive sector, which ended 2016 as the top performing sector on the Tehran Stock Exchange.

Float contribution

Iran’s largest producer of float glass, Kaveh Glass Group is also the largest processed glass supplier in domestic market. Kaveh Group operates several laminating lines with an installed capacity to produce 2,000,000 square meters per annum of laminated glass at its premises. The Group also operates a mirror production plant with an annual capacity of four million square metres.

Third flat glass line of Kaveh Glass Group, Kaveh Float Glass, which commenced operations in 2004 installed an online coating machine at this facility in 2005 to produce reflective , solar control and low e glass. Another coating line of the company operates at Asa Float Glass line, which commenced operations in 2009. The 700 TPD line of Asa Float also produces mirrors in different colors. The coating facility at this line was installed to cater to the increasing demand of coated glass in the country.

Sahand Industrial Group

Iran’s second largest float glass producer, Sahand Industrial Group is also a major processed glass producer. Company’s float glass line is equipped with a coater to enable the company to produce low-e glass. Other subsidiaries are engaged in the production of mirrors (Sahand Mirror Tabriz Co) and value added glass (Imeni Ark Tabriz Co). The company supplies tempered glass, insulating glass and printed glass to domestic architectural industry, Another subsidiary of Sahand Indutrial Group, Sahand Jame Tabriz is producer of color decorative, patterned and stained glasses with a production capacity of 200 tons per day.

According to Samir Bashir , a key executive with the company, “We are proud to supply processed glass in such projects whose requirements were previously supplied through imported materials. We have gained our customers satisfaction in small and big projects in the domestic processed glass market.

34

asianglass AG 17-5

www.asianglass.com

EVO trilogy The undisputed leader of float glass cutting tables has added one of the top of the range solutions, 343 EVO in its Trilogy version, which has two additional tools installed on the cutting carriage that turn the machine into an automated production system and guarantee the traceability of the glass produced.

glass for subsequent factory machining. The identification of the glass from the first job (the cut) until delivery to the customer is an important challenge for the glassworking industry, in order to considerably reduce costs and to increase productivity.

This cutting bridge can house two additional tools as well as the cutting head.

Innovations for the near future include improving production flows and reducing material recovery costs, with machinery of the EVO range and without forsaking Bottero quality.

list of installable tools: • Low-E removal system • Low-E and TPF removal system • automatic labelling system • permanent marking system with CO2 laser 343 EVO is an actual automatic system to cut and “trace” the

ANALYSIS: Processed glass

Automotive glass demand in Iran Category

2016

% growth over 2015

Automotive Laminated Glass (OEM) (in Million sqm)

2.134

38.03 %

1.546

1.444

1.514

Automotive Tempered Glass (OEM) (in Million sqm)

5.238

39.27 %

3.761

3.514

3.686

Replacement Market (in Million sqm)

3.781

7.38 %

3.521

3.218

3.115

Total (million sqm)

11.153 26.33 %

8.828

8.176

8.315

2015

2014

2013

Ardakan Architect Glass Industry Factory

Ardakan Architect Glass Industry Factory, a subsidiary of Ardakan Float Glass is one of the largest producers of processed glass in Iran. The parent company, Ardakan Float Glass, which commenced operations in 2013 is one of the largest float glass producers in the country.

The factory, located in Yazd province’s Ardakan city, is the world’s thirdlargest float glass production complex and is capable of producing float glass with the thickness of 19 millimeters. Spread over an area 75 -hectare factory is the biggest project implemented by the private sector in the Yazd province.

Ardakan Architect Glass Industry Factory produces architectural and automotive glasses in different grades. The company supplies acid etched glass, sand blasted glass, reflective glass, insulating glass, tempered glass, and solar control glasses for architectural segment.

Located at the junction of Iran’s four main railways (Tehran, Isfahan, Mashhad and Bandar Abbas), Ardakan holds a strategic position in Iran.

Location of the plant at this strategic junction provides Ardakan Architectural Glass a unique advantage in terms of reaching its customers in different cities at one of the lowest costs.

Processor segment

There are about 45 mid and small scale glass processors operating in architectural and automotive glass segments. Majority of these processors have tempering lines , while about a dozen have both tempering and insulating facilities.

Unfortunately, Iran has not been able to produce many world class glass processors in spite of a significant processed glass demand in the domestic market. Though, it doesn’t mean that processed glass quality produced by these producers is not good, but the scales are clearly missing. Hopefully, with the opening up of more opportunities in commercial construction will produce a few world class glass processors in the coming years.

About 50 % of the architectural processed glass market is controlled by three float glass producers, who also have downstream glass processing facilities.

Behnoor Safety Glass Company

Behnoor Safety Glass is among Iran’s best known glass processing companies for a number of reasons. State-of-the-art technology, high quality, just-intime production, excellent distribution and dedicated employees has led the company to gain about 20 % share of country’s automotive glass market.

Today, Behnoor produces the full auto glass assortment – a “full-set” includes safety glass windshields, rear windows, backlites and sidelites – for eight locally produced, international automobile brands catering to the Iranian market.

In addition to automotive glass, Behnoor also produces safety glasses for appliance industry anf shower cabins. The company can produce 150,000 sets

36

asianglass AG 17-5

THE IRANIAN PROCESSED GLASS MARKET HAS REGISTERED DOUBLE DIGIT GROWTH IN EACH OF THE LAST THREE YEARS Kaveh Glass Group Location: Multiple Locations Products: Coated glass, insulating glass, mirrors and tempered glass Markets: Domestic and Export markets Others: Kaveh Glass Group is the largest flat glass producer in Iran. With its five flat glass lines ( four float and one sheet line) its has an installed capacity to produce 2560 TPD of flat and figured glass. Kaveh Glass Group consists of a host of companies, which are directly or indirectly engaged in glass industry. The group has interests in glass industry from from raw materials processing, supply to production of finished glass products. Kaveh Glass also supplies coated glass and processed glass for architectural industry. Company’s processed glass products have been used at a number of prestigious projects in commercial construction segment in the country.

Sahand Industrial Group (including Sahand Jame Tabriz) Location: Tabriz Products: Coated glass, insulating glass, and tempered glass Markets: Domestic and Export markets Others: Second largest flat glass producer in Iran, Sahand Industrial Group is among the largest processed glass producers in Iran. The company has state of the art downstream processing facilities at its Tabriz based plant for tempering, insulating and screen printing on glass.

www.asianglass.com

ENDTOEND Full-Process Excellence

Every Emhart inspection machine is...

reliable, capable, adaptable, configurable, durable, updateable, scaleable...

making the investment justifiable Emhart Glass SA - Hinterbergstr. 22 6330 Cham - Switzerland - Phone +41 41 749 42 00 - webmaster@bucheremhartglass.com - www.bucheremhartglass.com

ANALYSIS: Processed glass

Ardakan Architect Glass Industry Factory Location: Ardakan Products: All ranges of processed glasses for architectural segment Markets: Domestic and Export markets Others: Ardakan Architect Glass Industry Factory , a subsidiary of Ardakan Glass Factory – is located in the central province of Yazd in Iran. Ardakan Float Glass factory, which has the capacity of producing 900t of different types of glass a day, is the biggest project implemented by the private sector in Yazd province.

Ardakan Architect Glass Industry Factory produces reflex mirror glass, double-glazed glass and safety glass for the architectural segment.

of these types of safety glasses. The company also supplies custom designed facades and decorative glasses for architectural segment.

Saipa Shishe Glass Company

Saipa Shishe’s parent company, SAIPA is an automaker headquartered in Tehran, Iran. The SAIPAC (an acronym for the French Societe Anonyme Iranienne de Production des Automobiles Citroen) was established in 1965 as with 75% Iranian ownership, to assemble Citroens under license for the Iranian market and changed its name into SAIPA (Societe Anonyme Iranienne de Production Automobile) in 1975 when the Iranian state withdrew from the company. Its products are under-licensed Korean cars and its own engine and range of cars. SAIPA signed a Memorandum of Understanding with Malaysia’s Proton to jointly develop a new compact sedan to replace the SAIPA Pride.

Venus Glass

By investing in state of the art technology and four modernization exercises since its establishment in 2004, Venus Glass has become one of the leading glass processors in the country. Spread over an area of 30,000 square meters at Shamsabad Industrial Zone, company’s manufacturing facilities are located 35 km south of the capital Tehran.

Venus Glass caters to both- architectural and automotive glass segments. In architectural segment, the company produces tempered, insulating, laminating , silk printed, solar control and reflective glasses. It is one of the few Iranian producers, who offer bullet-proof and sound proof glasses. In order to meet the demands of the architects and developers for modern decorative glass solutions, Venus Glass has also developed a wide range of decorative and colored glass products. The company was awarded as one of the Most Outstanding Manufacturing Companies in Iran in 2015 by Iranian industry ministry.

38

asianglass AG 17-5

Behnoor Safety Glass Company Location: Eshtehard Karaj, Iran Products: Automotive Glass Markets: Domestic and Export markets Others: One of the largest automotive glass processor in Iran, Behnoor Safety Glass Company is also one of the most technologically advanced glass processors in the entire Middle East region. The company, which started glass processing in 1998 for automotive industry has undergone a series of expansions and modernizations to expand the scale and scope of its operations. Currently, supplying to most of the top automotive producers in the country, Behnoor Safety Glass Company has an installed capacity to produce 600,000 car sets per annum.

Saipa Shishe Company Location: Qazvin Products: Automotive Glass Markets: Domestic and Export Markets Others: A subsidiary of leading automotive producer, SAIPA ( Societe Anonyme Iranienne de Production Automobile), Saipa Shishe is among the top three automotive glass producer in Iran. Located in Qazvin province, the company was established in 1999 and produces laminated and tempered automotive glass, safety glass, and bulletproof glass for its parent company.

Saipa Group, which is operating in automobile industry since 1960’s holds 58 % shares of the Saipa Shishe Glass Company, while balance 42 % are held of other shareholders.

www.asianglass.com

ANALYSIS: Processed glass

According to the company, “Our company is pioneer in supplying architectural and automotive glasses in Iran. We have taken a number of steps to localize the automotive glass production in the country. We have been the main supplier of automotive glass to Peugeot 306 and one of the leading suppliers for Iran Khodro Corporation.”

In 2015, Venus Glass entered into a collaboration with Spanish company, Dream Glass to supply the latter’s products in Iranian market. Dream Glass Group (DGG) is based in Madrid, Spain,. The copany supplies high quality privacy glass. Venus Glass also carried out a major expansion at its architectural processing facility in the same year. The company installed new tempering and laminating furnaces, which are capable of processing glass sheets of up to 15 square meters of area.

The company has supplied insulating, tempered and solar control glass to Milad Tower, Atlas Mall, Janbanzan Sports Complex, Ibis & Novotel Hotel and Mellat Pardis Cineplex among others.

Behnood Safety Glass Company

Based on his extensive experience in the

production of different types of automotive safety glass including laminated and tempered, entrepreneur Davood Mirzaei founded Behnood Safety Glass Company over 15 years ago.

Much of the earlier machinery was designed by the company’s founder, Davood and built locally, including a bending furnace, autoclave, and glass washing machine.

According to Davood Mirzaei, CEO of Behnood Safety Glass, “Political restrictions and sanctions imposed against Iran until recent times made that task difficult for Behnood, but despite all the problems faced, and with support from some of the leading technology suppliers, the factory has been successful in equipping itself with top quality machinery for the future.”

Behnood Glass’s product portfolio include car and truck windscreens, windscreens for buses and people carriers, and a range of decorative laminated glass encapsulating printed designs, for kitchens and interiors. The company is contemplating to add automotive side lites production facilities to compliment the current range.

Leading glass processors in Iran Company Kaveh Glass Group Sahand Industrial Group Ardakan Architect Glass Industry Factory Sahand Jame Tabriz Behnoor Safety Glass Company Saipa Shishe Company Venus Glass Kabir Safety Glass Shayan Glass

Location

Segment/s

Multi

Architectural Glass

Tabriz-Khosroshahr Road –Tabriz

Architectural Glass

Ardakan

Architectural Glass

Tabriz-Khosroshahr Road –Tabriz

Decorative Glass

Tehran

Automotive and Architectural Glass

Qazvin

Automotive Glass

Shamsabad Industrial Zone

Architectural and Automotive

Tehran

Automotive Glass ( Replacement Market)

Fatah

Architectural Glass

Alavijeh Industrial Estate , Esfahan

Automotive Glass

Iran Smart Glass

Tehran

Electronic and Optic Vision Glass

Jam Curved Glass Decoration

Tehran

Decorative Glass

Arman Jam Safety Glass Industries Factory

Tehran

Architectural glass

Azarjaam Nashkan Safety Glass Industries

Kilometer 17 Karaj special road, Tehran

Behnood Safety Glass Company

Architectural Glass Secco Iran

Tehran

Architectural Glass

Shargh Safety Glass

Mashhad

Architectural Glass

Khorsan safety Glass

Mashhad

Architectural Glass

Tehran

Automotive & Architectural Glass

Zarineh Naghsh Mahshad Eshfan Zarin Mirror

Eshfan

Mirror and Processed Glass

Gilan Glass Company

Tehran

Automotive & Architectural Glass

Kabir Safety Glass

Semnan

Automotive Glass

Jam Imen Safety Glass Company

Tehran

Architectural Glass

Miral Glass Company

Tehran Saveh Highway

Architectural Glass

Iran Glass Technology

Mashhad

Architectural Glass

Karaj

Architectural Glass

Shishe Nashkan Industrial Company

40

asianglass AG 17-5

www.asianglass.com

Follow Plant Performances

Get your KPI notified in real time

Intranet portal dedicated to production Single secure access to SIL platform Faster process handling with customized KPI Specific workspaces depending on User profile

+33 385 98 19 19 sales@vertech.eu Campus SaoneOr 11, rue Alfred Kastler 71100 Chalon sur SaĂ´ne - France

www.vertech.eu

ADVERTISER FEATURE

New oxy-fuel energy efficiency for glass furnace

By Luc Jarry, Air Liquide Glass and Metal Market Director, and Chikashi Kimura, Air Liquide Japan International Expert Combustion Key sustainability opportunities have been confirmed through recent model testing of Air Liquide’s industry-leading Heat OxyCombustion technology.

Air Liquide’s Heat Oxy-Combustion has become a worldrenowned sustainability-boosting technology in the glass industry.

This was especially underscored during the 2015 COP21 conference in Paris, where it was honored with the Innovation Award focused on “Climate Solutions.” [1] What makes this technology so innovative is that it helps to reduce the environmental impact of the glass-melting process by increasing combustion efficiency. [2] Unlike alternative oxyfuel technologies, which don’t take advantage of wasted energy recovery from combustion fumes, Heat Oxy-Combustion recovers a significant portion of the heat lost through flue gases by indirectly preheating fuel and oxygen (O2), thereby improving oxy-combustion performance by more than 10%.

Compared to air combustion, this technology provides up to 50% energy savings and reduces carbon dioxide (CO2) emissions by as much as 50%. It also reduces nitrogen oxide (NOx) and dust emissions.

Powerful features behind a simple idea

To develop this unique patented technology, safe and reliable equipment was designed and fully integrated with glass-melting furnaces. This equipment is made of special materials suited for very hot reactants.

Over the course of 10 years, various materials were tested for cyclic oxidation, ignition and flame propagation with hot oxygen, as there were no industrial standards for hot oxygen-compatible materials (>200°C). [3] Safety studies and analyses of oxygen hazards have been extensively performed with leading institutes and experts from Germany and United Stated to build know-how in hot-oxygen handling. Furthermore, three industrial references – Paşabahçe Bulgaria EAD, AGC France and AGC Czech Republic – have validated the concept of preheating oxygen to 550°C and natural gas to 450 °C for oxy-fuel combustion. [4]

Proven today – even better tomorrow

As a new technology, Heat Oxy-Combustion is rapidly improving in both efficiency gains and competitive equipment cost. In the near future, manufacturers can expect higher preheating temperatures, enhanced design and materials, and even greater cost-efficiency.

Heat Oxy-Combustion technology can also be implemented with additional energy-recovery systems, such as a compact organic Rankine cycle, which will be implemented on the discharged hot-air line after the oxygen/natural gas heaters to produce electricity.

The key components behind Air Liquide’s technology

Air Liquide’s Nexelia for Melting - Heat Oxy-combustion all-in-one solution consists of the following ground-breaking technological components: • Oxygen supply: Liquid Oxygen storage (LOx), or low pressure gaseous state through FLOXALTM Oxygen, an on-site production unit that provides the required quantity of oxygen.

42

asianglass AG 17-5

• Glass-melting technologies: A unique and patented combination of HEATERS: one recovers heat from hot fumes to air; others transfer heat from air to fuel and oxygen.

• BURNERS, non-water-cooled oxy-fuel burner made of specific materials to accommodate high-temperature fuel and oxygen.

• VALVE TRAINS are automated control systems to monitor oxy-fuel burners and their fuel and oxygen supply systems.

Figure 1: Heat Oxy-Combustion technology Compatible with many types of fuel, all types of glass and a wide variety of furnaces, this flexible, comprehensive technology can also operate with air, cold oxygen or cold fuel in backup mode. Such tremendous flexibility helps to reduce energy-sourcing dependency and associated risks.

Customer-focused modeling

To maximize the performance of Heat Oxy-Combustion, Air Liquide leveraged its internally developed modeling tool, ATHENA, conducting feasibility studies on high-temperature oxygen combustions. Based on glass-furnace specification data, such as furnace dimension, bubbler specification, dam-wall position, glass product and preheated temperature, they were able to determine the optimal Heat OxyCombustion burner time, size and positioning.

The advanced modeling capabilities of ATHENA allowed Air Liquide to investigate glass temperature and flow, as well as furnace temperature, flue-gas temperature and flame interaction. As a result, customers benefit from a technology solution that’s seamlessly adapted to their glass-furnace needs.

Putting spent energy to good use for fiberglass

Because technical glass, such as fiberglass and flat-display panels, is among the most energy-intensive, it has much to gain from Heat OxyCombustion technology. Additionally, hot air generated by the Heat Oxy-Combustion installation can be used for drying fibers to enhance the overall efficiency of the installation.

The high flexibility of this technology has been demonstrated, allowing the installation to run independently of the preheating temperature. Furthermore, in order to optimize the solution to the customer’s process, in-house modeling technology contributes to the strict quality needed in the customer process. www.asianglass.com

ADVERTISER FEATURE

ATHENA modeling in action

For the ATHENA modeling study of Heat Oxy-Combustion, an insulation fiberglass furnace equipped with an electric booster and double-line bubbler was used. And four scenarios were investigated.

To begin with, an air-combustion case was modeled as the base case. The second scenario maintained the same furnace-crown temperature and glass-flow pattern as traditional oxy-combustion.

The third was based on Heat Oxy-Combustion (hot oxygen and hot natural gas). And finally, an analysis was conducted with the Heat OxyCombustion “heater off” mode (using ambient oxygen and natural gas).

The Heat Oxy-Combustion burner is equipped with an automatic setting that allows intelligent systems to detect the preheat temperature and switch the Heater ON/OFF mode automatically. This setting and special burner design allow for user-friendly operation.

stop unexpectedly, Heat Oxy-Combustion, with its automatic setting, is able to adjust and operate “heater off” mode by maintaining the flame property.

Figure 4: Heat Oxy-Combustion and Heat Oxy-Combustion “heater off” mode

Another big benefit: lower NOx emissions

By preheating the oxygen and fuel, the increase of NOx is questionable under Heat Oxy-Combustion conditions. From the pilot furnacecombustion test results, Air Liquide has validated the low NOx performance of Heat Oxy-Combustion. The result was 0.417kg/t for traditional oxy-combustion and 0.308kg/t for Heat Oxy-Combustion at 8% O2 [Eco-HeatOx Project, NO2 equivalent]. [5] Intelligent burner geometry limits the impact of NOx increase.

Staging and increase of jets impulse with temperature, increase the dilution of the reaction zone and compensate for hightemperature reactants.

Bi-fuel Heat Oxy-Combustion burner

Figure 2: Heat Oxy-Combustion modeling analysis

Output of Heat Oxy-Combustion modeling

Under the three oxy-combustion scenarios – traditional oxycombustion, Heat Oxy-Combustion and Heat Oxy-Combustion “heater off” mode – the same glass temperature and flow pattern was confirmed. And the analysis demonstrated 10% energy savings when transitioning from traditional oxy-combustion to Heat Oxy-Combustion (Heat Oxy-Combustion O2: 550 [C] and natural gas: 450 [C]).

Figure 3: Heat Oxy-Combustion modeling output In the Heat Oxy-Combustion test, flue gas temperature reduction was confirmed, which contributed to fuel reduction. This result was consistent with pilot-furnace combustion test results obtained at Air Liquide’s R&D center. In the “heater off” mode, the same amount of energy was needed as traditional oxy-combustion.

Furthermore, even without heating up oxygen and natural gas, Heat Oxy-Combustion’s burner performance was equivalent to that of traditional oxy-combustion. This is due to its adaptable technology and design no matter what the temperature of the oxygen and combustible.

And it proved that, even in the very rare scenario that the heater should www.asianglass.com

This burner combines the advantages of Heat Oxy-Combustion technology and fuel flexibility to optimize operational costs by alternating between natural gas (NG) and heavy oil fuel (HFO), over a large range of operation in terms of power and temperature of the reactants. Heat Oxy-Combustion burner is proven to ensure a flat flame for both NG and HFO configurations, thereby ensuring solid coverage over the glass bath.

Helping the industry be efficiently compliant

In conclusion, as an effective and proven technology, Heat OxyCombustion will enable the glass industry to comply with current environmental regulations. Its energy improvements – including 10% reduction in fuel and oxygen and 10% in CO2 compared to traditional oxy-combustion – have been validated by three industry references. Significant reduction in NOx and particulate emissions was also reported.

This new technology is universal in that it can be applied to any type of glass or glass furnace. In addition, thanks to the simple concept of preheating oxygen and fuel with wasted energy from flue gas, the ease of operation makes the solution even more attractive from a practical point of view.

Combining this simple concept with patented process and component technologies from 10 years of R&D, Heat Oxy-Combustion is safe, robust, flexible and affordable, and thus expected to be deployed at a very fast pace. And it will continue to be revolutionized to meet the growing needs and challenges of the glass industry, today and tomorrow.

References

[1] Press Release, Paris, December 7, 2015, COP21: Air Liquide wins an Innovation Award from the FranceChina Committee for its Heat Oxy-Combustion technology [2] “Adoption of the Paris agreement—Proposal by the President—Draft decision -/CP.21” [3] AlglassTM Heat recovery :an advanced Oxy-combustion technology with heat recovery makes sustainable performances for glass furnaces. Y. Joumani, r. Tsiava, Air Liquide Research and Development, B. Leroux, Air Liquide Altec O. Douxchamps, A. Contino AGC Glass Europe CRD. VOL.16 N°5 • DECEMBRE 2010 Verre.

[4] Oxygen and natural gas preheating for oxy-float glass. Glass international July/August 2010.

[5] Low NOx burners High environmental performances with Air Liquide oxy-fuel burners, Glass Trend 2017

The authors thank the European Commission, which has partly financed this work through the Life+ program.

AG 17-5 asianglass

43

ANALYSIS: Container glass

Turning the scre bottle makers under pressure

Rohan Gunasekera looks at how expanding capacities in Southern Asia’s container glass sector, coupled with falling demand, have created a perfect storm of trouble…

I

ndia’s container glass industry is currently suffering from over-capacity with demand slack in many segments and manufacturers losing market share to plastic containers.

However, recovery is expected within a year or so given the country’s economic fundamentals and favourable demographic trends.

Liquor remains the strongest growth sector for container glass along with food despite continuing conversion to plastic or PET packaging whose maximum impact is on the soft drinks segment. Strong potential in the food segment has even prompted some firms like Borosil Glass Works Limited, India’s largest manufacturer of laboratory and microwavable glassware, to diversify into making glass containers for food packaging. PET is giving glass tough competition, prompting the industry into innovations like Narrow Neck Press and Blow technology for light-weighting of bottles which reduces production and transport costs. Some big container glass manufacturers like Hindustan Sanitaryware & Industries Limited (HSIL) are hedging their bets and have diversified into production of plastic containers.

The glass bottle market in India was estimated at 2,285 - 2,295,000 tons in FY2016 with domestic production of 2,255 – 2,260,000 tons and imports of 30 – 35,000 tons, according to Hindusthan National Glass & industries Limited (HNGIL), the largest manufacturer of glass containers in India with seven manufacturing units. About 56% of the market consists of Indianmanufactured foreign liquor (IMFL) and country liquor (CL), beer accounts for 19%, food and beverage segment for 8%, pharmaceuticals 7%, soft drinks 5% and cosmetics 2%.

Alcohol consumption is rising fast in India with increasing urbanisation and higher disposable incomes driving demand for IMFL, Alok Taparia, Assistant Vice-Presiden-Strategy & Management Cell of HNGIL, told Asian Glass.

India’s per capita consumption in this segment is low compared to Europe and USA and glass bottle demand growth is supported by Indian State governments putting up regulations on use of glass bottles in the liquor industry. For instance, it will be compulsory to use glass bottles for IMFL as well as CL in Maharashtra. Furthermore, many multinational brands are entering into the Indian market, there’s greater acceptance of alcoholic beverages in social circles and changing consumer preference from country liquor towards premium offerings of IMFL. Glass bottles help in avoiding the oxidation of the liquor while tinted glass bottles are used to ensure longer shelf life of wine.

In the IMFL category, only for beer, manufacturers are using reused glass

44

asianglass AG 17-5

bottles. CL and beer manufacturers are using about 70% reused glass bottles.

This is supported by a well-established returnable glass bottle system in India, which involves lowincome earners retrieving empty glass bottles.

In the pharmaceutical sector, the Government of India has proposed to ban use of plastic and PET bottles in oral formulations. The Drugs Technical Advisory Board recommended to the government to prohibit use of PET in liquid oral formulations for primary packaging for paediatric and geriatric use and for use of pregnant women and women of the reproductive age group. This is expected to drive the market for glass bottles in the pharmaceutical sector, according to HNGIL, along with green field and brown field investments by pharma firms. For vials and ampoules, the preferred packing material is glass. Injectable liquids do not react with glass, so they do not get contaminated. But in orally consumable liquids, manufacturers are shifting to PET bottles.

Soft landings

“In soft drinks, all the major manufacturers are planning to shift to PET in coming years to cut production costs,” says HNGIL. “This will result in a downturn with respect to glass bottles demand in this sector.” Coca Cola is planning to stop using glass bottles due to difficulty in handling during

www.asianglass.com

ANALYSIS: Container glass

ew-top transportation and restoring all used bottles for refilling. Pepsi may also stop glass bottles. Both Coca-Cola and Pepsi Co. have come under threat from small local players who have managed to wrest away around 10% market share. Many new players including Delhi-based Xalta, Alwar-based Jayanti Beverages and Bareilly’s Boss Beverages have entered into soft drink segment with PET bottles. “Hence, in soft drinks, the trend is shifting completely towards PET bottles,” says HNGIL. “Though soft drinks industry is growing at a high compounded annual growth rate (CAGR), scope for glass bottles in this segment is declining as all new soft drinks manufacturers are using PET bottles for packaging and existing large manufacturers are shifting to PET bottles due to price competitiveness.”

In the food and dairy sector, glass bottles and jars are preferred for longer shelf life of food products and good aesthetic looks with buyers preferring glass for products which are being exported. However, in the milk segment, the trend is shifting from glass bottles to PET bottles, except for flavoured milk where glass bottles are used to provide longer shelf life and because machinery required for cleaning PET bottles is very costly.

Products like fruit jams, sauces, ketchups, and fruit pulps are packed in glass bottles and jars. But HNGIL says that generally the trend is shifting from glass bottles to PET bottles due to handling difficulties of glass.

In cosmetics, glass bottles are preferred for aesthetic looks but the trend of packaging material is shifting from glass to high density plastic containers for premium products.

However, for nail paints and nail paint removers it is mandatory to use glass bottles as the chemicals in nail paint reacts with PET bottles.

Alcoholic beverages are seen driving container glass growth at 5-6% in the next three years to about Rs97 billion by 2019, according to Indian rating agency CRISIL. Growth will be volume driven as realisations are likely to remain stable. Alcoholic beverages are expected to see 6-7% CAGR growth and will continue to drive the container glass segment, supported by non-alcoholic beverage and food products segments. CRISIL also expects container glass companies’ operating margins to gradually improve over the next two years, aided by softening of the cost of raw materials like soda ash and low fuel cost.

www.asianglass.com

Steady as you go

Right now, though, India’s container glass industry is stagnant, according to Sanjay Tiwari, CEO/Managing Director of Piramal Glass Ceylon, the Sri Lankan subsidiary of India’s Piramal Glass Limited, who is also Chief Operating Officer overseeing operations of its plants in Vadodara, Gujarat.

“Globally, in the glass industry supply is more than demand,” he told Asian Glass. “In India, market dynamics have changed with the introduction of new laws. One, a rule that you can’t have liquor shops within 500 metres from national highways. Also, some states have banned liquor and illegal trade has started and organised sales are down.”

The highway ban meant a lot of shops closed while state bans mean people cross borders to buy liquor. So sales of beer and alcohol on borders or highways where people are travelling have come down. Also, the introduction of GST affected alcohol manufacturers since alcohol is out of GST and they don’t get to set off tax which affects their cost.

Glass bottle market in India -FY2016 (Source-HNGIL)

AG 17-5

asianglass

45

ANALYSIS: Container glass

“The liquor industry is in bad shape in India right now,” said Tirawi. “Other industries are picking up but beer and liquor, the largest segment, is in the doldrums. The pharma industry also had issues in the first quarter because of the introduction of GST which affected sales after tax rates changed and customers trying to reduce inventory before the July 1 implementation date.”

In Sri Lanka too, where Piramal is the sole glass bottle producer, there is some pressure on the liquor segment. Liquor manufacturers have to pay excise duty in advance and cope with increases in excise duty twice in the last year, as a result of which they are not stocking too much on bottles.

Higher liquor prices also mean illicit sales are growing.

In food and beverage, growth is steady. “The new virgin coconut oil (VCO) segment is picking up again,” said Tiwari. “It grew very fast about one and a half years back. Right now there’s a shortage of coconut in Sri Lanka and the government has allowed coconut imports to support the VCO industry.

So we expect demand to pick up again.”

In the aerated water segment, there was a drop in sales after floods affected some soft drinks bottling plants but others are doing well. Tiwari expects the food and beverage segment will go up. Sri Lanka’s cosmetics and perfumery market is very small and growing at single digits.

O. P. Pandey, Senior Vice President (Finance) of Hindustan Sanitaryware & Industries Limited’s Glass Division, AGI Glaspac in Hyderabad, concurs there is overcapacity in India’s container glass industry right now. “At the moment, yes, there is overcapacity in the container glass industry because of structural changes in the economy but the excess capacity should be absorbed in about a year’s time,” he told Asian Glass. “The market is growing at almost a rate of 7-8% in India. But in the last 5-6 months, structural changes in the economy and government policies have had an impact on consumption. Demonetisation is one. More recently GST was introduced, which impacted consumption with lot of preparation and planning going on in the user industry. But we expect demand to stabilise soon and a future growth rate of around 8-10%. The main drivers of growth would be the overall strengthening of the economy and increasing consumerism. Consumption patterns are changing significantly which will drive consumption of glass packaging. There has been big growth in packaged foods in the past 8-10 months. Apart from that the liquor ban in one or two states in India has had some impact on consumption. But we believe that in the next 4-5 months everything will settle down.”

HSIL’s Pandey expects growth in the liquor segment to be around 5-6% but stronger growth in the food segment – of around 10-12 %. Pharmaceuticals will be very subdued because it does not account for a large volume. HSIL has said that the main contribution to recent sales growth in packaging is on account of higher sales to the food and beverage channel with exports also increasing.

HNGIL, which is heavily indebted, has blamed over supply in the market and consequent decrease in capacity utilisation for its losses. HNGIL itself had added capacity of 1,300 MT per day in the 2012-13 financial year. The addition of capacity of 650 MT per day each in its Nashik and Naidupeta plants was to cater to markets in India’s west and the south.

During the same period, other players in the industry also added capacity.

This was done mainly due to good demand envisaged in 2010. It was these additions that has increased the supply in the market and resulted in lower capacity utilisation.

There has been more capacity addition in pharma glass. Gerresheimer AG, the Düsseldorf, Germany-based pharmaceutical packaging specialist, has opened its third production facility in India, in Kosamba, to make vials and ampoules for local and international customers. The Gerresheimer Group has two subsidiaries, Triveni and Neutral Glass in the Indian market. The Neutral Glass plant in Kosamba manufactures pharmaceutical primary packaging made from container glass, while the Gerresheimer Kosamba factory next door produces vials and ampoules from tubular glass. The Triveni Polymers plant in Kundli makes plastic containers.

46

asianglass AG 17-5

THE GOVERNMENT OF INDIA HAS PROPOSED TO BAN USE OF PLASTIC AND PET BOTTLES IN ORAL FORMULATIONS

Exports by weight and value (Source-HNGIL)

Scientific growth?

Borosil Glass Works, the Indian lab glassware and microwavable kitchenware producer, is looking to expand storage container and Scientific & Industrial Products (SIP) sales. It sees the domestic lab glass market at Indian Rs 220 crore and lab instruments market at Rs150 crore, both growing at 8-10% with the Rs500 crore pharma packaging or tubular glass market growing at 10-12%. Borosil has a 60% share of India’s lab glass market.

In 2016 Borosil acquired 60.3% of Klasspack, which manufactures pharmaceutical packaging glassware in Nashik, Maharashtra, to expand production capabilities into primary pharma glass packaging.

Shreevar Kheruka, managing director and chief executive officer of Borosil Glass Works Limited, has said that in FY2017 expansion into glass storage products has been one of the main growth drivers in its Consumer Products Division. “The trend in the market is moving from plastic to glass,” Kheruka said. “We have launched a range of products in various shapes and sizes, which give our customers an option for elegantly designed, high quality glass

www.asianglass.com

ANALYSIS: Container glass

Import data analysis (Source-HNGIL)

storage products including tiffin boxes, jars, canisters, water bottles. Going forward there is lot of headroom for growth because the market is dominated by plastic. There seems to be a very large opportunity at hand here.”

According to Crisil, competition from PET has resulted in sluggish growth in container glass industry volumes. “Demand for glass packaging is declining from the food products, beverages and pharmaceutical (largely syrup bottles) segment due to popularity and increasing demand from end users for PET bottles,” the rating agency says. It sees improvement in demand from alcoholic beverages and pharmacueticals (vials). “Over the past few years, polymer packaging has been gaining share from glass and metal packaging.

Polymer has been either replacing or being used along with paper in secondary and tertiary packaging. As a result, polymer is the largest segment in the packaging industry. Going forward, increase in demand for polymer packaging is expected to be driven by end-user sectors such as food products and personal care segments.”

HNGIL has said it is concerned about the threat of substitution from plastic and tetrapack packaging which has become quite significant in segments such as beer, pharmaceuticals and soft drinks. HNGIL’s Alok Taparia says the quality of PET bottles is improving, so they can be used for storing food items for longer periods and are seen as the cost effective option for packing, being easy to handle during transportation with 0% breakage and their light weight meaning a large quantity can be transported at a time.

HSIL’s glass containers and PET bottles are available under brands AGI and Garden Polymers (GP) respectively. “Plastic container use is growing much faster than glass because of many factors supporting the preference for plastic packaging,” says O. P. Pandey, Senior Vice President (Finance) of its Glass Division. “Overall, glass packaging growth should be around 8-10%.

Plastic packaging will erode the market share of glass to some extent because what should have been much bigger is getting impacted because of the wide acceptance of plastic packaging in India.”

The maximum impact of plastic packaging is on the soft drinks segment.

In pharma, glass to plastic conversion has been taking place for a long time but it has now more or less stabilised.

Glass is much safer than plastic for packaging pharmaceuticals, says Sanjay Tiwari of Piramal Glass. “PET definitely has share in the market although PET has got a little hit because of growing awareness of health concerns. So there is a tough fight between PET and glass. In some segments people don’t bother about quality and use PET for convenience. But there are some products which cannot go into plastic.” Some segments like OTC or over-the-counter segments, where a doctor’s prescription is not needed, are moving to PET. Competition from imported glass containers is limited. “The cost of transporting glass containers over long distances can be a bit prohibitive,” says HSIL’s Pandey. Notes Piramal’s Tiwari: “Glass export is nothing but exporting air – it’s not cheap. In the mass market segment, competitors

48

asianglass AG 17-5

Major exporters by value (Source-HNGIL)

are importing bottles. But because of the surplus capacity, prices are very competitive – so imports are not that much of a threat.”

According to HNGIL, Sri Lanka and China are the major exporting countries to India. Sri Lanka and China contribute to about 77 % of total imports by weight and half of total imports by value. About 98% of total imports from Sri Lanka are liquor bottles. Around 70% of total imports from China are glass containers having capacity of less than 51 ml or 55% of total imports by weight. Most of the imports from USA during FY 2015 were ampoules and vials.

In Sri Lanka, container glass is imported from India and China. “But we countering by attaining good quality in glass bottles and we working with the government to bring in anti-dumping duty,” says Sanjay Tiwari of Piramal Glass Ceylon.

India and Sri Lanka both export glass bottles, with Piramal being India’s top exporter of container glass. Some 290 –295,000 tons of glass bottles/ containers were exported from India during FY-2015 with a total value of Indian Rs16,000 -16,100 million. Piramal Glass was the top exporter by value, accounting for 63% of exports, followed by Garresheimer with 10%, HNG with 9%, Pragati Glass with 7%, AGI Glasspac with 7%, Vitrum Glass with 2% and Haldyn Glass with 1%.

The USA was the major importer of glass bottles from India during FY 2015 with about Rs189 crore by value and around 24,545 tons by weight.

About 9,533 tons of liquor bottles worth around Rs20 crore and 19,755 tons of 200ml capacity empty bottles were exported to Mozambique.

Indian exports of container glass are smaller bottles, not big bottles, mainly pharma, cosmetics and perfumery glass, nail polish and food containers, according to Piramal’s Tiwari. “We’re in segments where we are very competitive. We’re world leaders for nail polish – 50% is supplied from India by Piramal Glass. Every second nail polish will be in Piramal bottles the world over. We are doing niche segments in food and cosmetics. These are very price and quality sensitive markets – we have a presence all over the world.” Piramal Glass Ceylon exports to USA, Canada, and Australia.

www.asianglass.com

WE ARE GLASS PEOPLE

MAXIMISE YOUR PROFIT

COMBINE SPEED AND FLEXIBILITY WITH SUPERIOR LIFETIME High production speed Fast job changes Reduced downtimes Robot option Clean design

www.heye-international.com

ANALYSIS: Container glass

According to HNGIL, light weighting of glass bottles has become a focal point in the industry and as a result, glass bottles have become 30% lighter in the past decade. Light weighting helps lower raw material and logistic costs. HSIL says its Packaging Products Division, AGI Glaspac in Hyderabad, has reduced the bottle weight by about 20-25% without compromising on performance and is focussing on use of value-added products like Narrow Neck Press and Blow (NNPB) to offset the downturn in sales.

“Many firms have moved to light weighting bottles using narrow neck press and blow technology, mainly in the beverage segment,” says Sanjay Tiwari of Piramal Glass. Piramal is focused more on specialty niche cosmetic and perfumery segments but mass market and beverage segments are moving to narrow neck and light weighting of bottles. Also Piramal is venturing into a lot of automation to bring down cost and moving to alternative energy and niche segments.

Energy is the biggest cost element in glass manufacturing, says Tiwari. In Sri Lanka Piramal has the option of using LPG and furnace oil and is trying to go for LNG. In India, all options are available – LPG, LNG and furnace oil - and prices are very transparent and very competitive, with no government mark up or subsidies, unlike in Sri Lanka where the government still controls furnace oil prices.

“Fortunately in India’s glass industry, for the past one and a half years power costs have been stable,” says Pandey of HSIL. “The government has provided different options with an open market mechanism where we can buy electricity openly and find what is cost effective rather than relying only on the state supplying power.”

Container glass manufacturers have had to face increased freight rates since April the world over but rates have still not reached the level of three years back.

India ranks amongst the lowest in percentage of cullet usage. While Europe uses almost 70% recycled glass on the average, only 40% glass is recycled in India. HNGIL estimates that a 10% increase in cullet in batch is expected to yield up to 2% savings in fuel while also increasing furnace life and that quality problem like seeds and bubbles could be controlled by using more cullet. Glass draw can also be increased by using more cullet: up to 20% more glass can be drawn. However, usage of cullet across countries depends on the maturity of the collection supply chain of recyclable glass used to produce cullet. HSIL says a glass container can go from the recycling bin, through recycling, and be made ready for use within a month but availability of cullet is a concern.

In Sri Lanka, about 30% of raw material of Piramal Glass Ceylon is waste glass which is recycled. “Glass can be recycled to infinity,” says Tiwari. “We recycle almost 70 tonnes of waste every day collected from all over the island. In India cullet use ranges from 20% to 50%. In niche products we don’t use cullet – it’s pure batch. But in commercial glass, we go up to 50% cullet. In Sri Lanka also whenever we have cullet available we use from 30% to 45%.”

Inspection advantages

Investments in advanced inspection techniques help maintain quality and loyalty of clients. “We have the latest, very advanced technology machines installed to check on the quality of glass bottles,” says Sanjay Tiwari of Piramal Glass. “In Sri Lanka we maintain good quality – that’s why we’re able to protect our market. Our investment to maintain quality and win the approval of customers helps get export orders and retain local customers. That’s the reason why Chinese and Indian glass bottle manufacturers have not been able to get in to Sri Lanka – because of our quality.”

Glass containers, being fragile and heavy to transport, manufacturers mostly serve the regions where their plants are located. In India, while there is some concentration of capacity in Gujarat, plans are

50

asianglass AG 17-5

Estimated market for glass bottles over next 5 years (Source-HNGIL)

Estimated market for glass bottles over next 5 years (Source-HNGIL)-1

found all over the country. “As glass is freight intensive and fragile in nature, long distance transportation is not a feasible option,” says rating agency Crisil. “Companies located in close proximity to end-users enjoy the benefit of lower freight and handling charges.”

HSIL’s AGI Glasspac says its packaging plants are proximate to customers’ filling locations, minimising logistics and freight costs, in liquor, beer, food and beverages, pharmaceuticals and chemicals. AGI Glaspac in Hyderabad is the largest manufacture of container glass in South India and is the second largest manufacturer in the country. “Most big container glass plants are in Gujarat and relocating them would be difficult,” says Pandey. “It is difficult for container glass plants to serve the whole of India.

There are many plants serving different markets across India. The industry is spread across the country – each company is serving different areas. They are not able to cover long distances and sell bottle in far away markets.”

Says Sanjay Tiwari of Piramal Glass: “We are based in Gujarat because it was a strategically chosen location because of the availability of natural gas. Investment happens where the energy source is best. Also, for export you want to be close to ports – and there are many ports in India. Glass plants will be concentrated close to ports and energy sources.”

www.asianglass.com

for more info A T E W

CNUD-EFCO International NV/SA Noorderlaan 30, B-1731 Zellik, Belgium +32 2 481 88 00 info@cnudefco.com www.cnudefco.com

ANALYSIS: Cullet

Recycling attitudes cullet proves a growing influence

Jahir Ahmed looks at how changing efficiencies in glass recycling across the continent are providing a much greater cost benefit to the region’s container glass manufacturers.

A

sian glass manufacturers, particularly, the container glass operators in their efforts to raise cullet usage to at least 50 percent have been spending on full recycling plant, while independent cullet suppliers have booming supplies by installing glass crushing machines in the ASEAN markets. The major developments are taking place in Thailand where use of cullet in glass container industries is rising above median line.

Thailand’s Berli Jucker Public Co Ltd (BJC)’s container glass plant, Thai Glass Industries Ltd claims its capacity in using cullet in production is now 60-65. Integrated cullet recycling plants are getting wider access to the Thai glass manufacturing industries. Most glass units are contracting reputed suppliers from Europe to add recycling to the batch plant.

Bangkok Glass Public Co Ltd, BJC and Osotsps Group have been upgrading cullet production and recycling as integrated operation. Thailand’s leading container glass manufacturer Bangkok Glass has also engaged contractor for batch and cullet plants for its new float glass factory. Malaysia and Indonesia are also going ahead with cullet operations.

AGC has been developing an advanced cullet recycling unit by contracting EME Maschinenfabrik Clasen GmbH and its sister company Shanghai Precision Dosing & Weighing System Co Ltd to jointly install a turnkey batch plant for PT Asahimas Flat Glass Tbk(AMG) Cikampek, Indonesia.

After the successful implementation of the batch plant and cullet recycling at AGC Guarantingueta, Brazil and AGC Klin, Russia, also AGC subsidiary in Indonesia has decided for EME technology. EME and Shanghai Precision were commissioned to design the whole batch plant, supply all system and equipment for raw materials reception, dosing, weighing, mixing and batch transfer. The new float line has a capacity of 700 tons a day.

Meanwhile, Japan’s NSG Group sites in Asia producing the highest volumes of waste glass reviewed their cullet segregation and recycling practices to find ways to increase the amount of cullet sent for recycling in float plants and to improve recycling, said Shigeki Mori, the Group’s Representative Executive Officer, President and CEO. The Sungai Buloh plant in Malaysia implemented recycling of all printed cullet and found a recycling partner for laminated waste glass. All sites are reviewing recycling opportunities for contaminated cullet and glass dust, he said.

52

asianglass AG 17-5

Batch-based cullet

Bangkok Glass has contracted Zippe Industrieanlagen GmbH of Germany to manage the batch house and cullet return system, as supplier for the batch and cullet plant, for its new float glass factory, Kabinburi Glass Industry, which has a production capacity of 600 tons a day.

The plant is being built in Prachinburi province in the eastern region of Thailand. Zippe said its scope of supply contains several projects as well as the supervision and commissioning of the plant, scheduled to go into operation in the second half of 2017. The plant will be built in row, equipped with seven container scales and two 3,000-l-mixers. Cullet will continuously be fed by means of dosing belt scales in sandwich technique. The delivery of raw materials will be made by silo trucks and open trucks.

Zippe is also contracted to manage the cullet plant and furnace of Osotspa Glass, the parent of Thailand’s packaging glass operator Siam Glass. Osotspa has been replacing batch and cullet plants at its glass container factory in Ayutthaya.

The packaging glass factory is one of the modern bottle plants in Thailand.

Zippe will replace two existing furnaces at its plant and will deliver a batch plant with a batch and cullet conveying system for furnace no. 1 in first stage, and will supply the extension of the internal cullet system. The 250 tonnes a day capacity furnace will produce amber bottles for energy drinks. The batch plant is scheduled to be commissioned by April 2018 and will be ready for the next stage extension for furnace no.2.

BJC’s Thai Malaya Glass will have a new batch plant with hot cullet scrapper return system. The plant is being built for furnace SB4 with a capacity of 300 tons per day and ready for future expansion. It is being built as a modern tower concept for flint, green and amber glass.

www.asianglass.com

ANALYSIS: Cullet

Nikolaus SORG has been chosen to supply two state of the art endport regenerative furnaces complete with IRD® doghouses and EME-NEND® batch chargers. These will be feeding a total of nine SORG® 340S forehearths.

Included in the scope are automatic hot cullet scraper return systems. The cullet storage will be equipped with crushers and all metal detection with automatic rejection. The entire system will be fully automated through a proven EME controls solution.

BJC is developing integrated recycling plant in its container glass plants to increase the proportion of cullet in glass production. Its largest glass production operation, TGI has already installed cullet plant as part of BJC’s cullet utilization expansion programme.

TGI’s recycled glass containers are collected from commercial and residential sectors. They are initially separated by colors. Contaminants such as papers, caps, metallic rings etc are separated before recycled glass containers are crushed into cullet. Use of cullet helps save melting energy, in addition to new raw materials.

Cullet ratio in the TGI batch recipe varies depending on its availability, glass colors and variation in cullet composition. Cullet ratio is said to be, generally, between 65 and 85 percent, one of the highest in Southeast Asia, as claimed by TGI. Thai glass industries, including TGI, are largely dependent of cullet supplies from domestic and import sources.

O-I and BJC’s Malaysia based joint venture, O-I BJC Glass Malaysia (Malaya Glass Products Sdn Bhd) has developed glass recycling in its glass plant.

Malaysia’s leading container glass operator O-I BJC Glass Malaysia, located in Johor Bahru, is equipped with glass recycling cullet plant and it has reportedly a substantial percentage of cullet in its container production. It has three furnaces and eight production lines to deliver about 170,000 tonnes of glass containers, mainly packaging glass, per year. Its flint, amber and green glass bottles and jars feed mainly the quality beer, beverage, liquor, food and sauce and pharmaceutical industries.

SMYAC said it also produces GLASSLite bottles that are lightweight, using less raw materials. These lightweight bottles have the same quality and strength as their heavier counterparts.

Corning leadership

Industry sources in Asia speculate that the US based display glass giant Corning will look for cullet supplies from Asia for its two new pharmaceutical packaging glass plants in USA, for which it has already planned to divert a part of the flow of glass going to the landfills in Asia. For its packaging glass production it has suitable cost effective recycling plants.

Under a programme led by Corning’s Global Supply Management, the plants in Taiwan, China, Japan, and Korea take the glass scrap and crush it into powdered cullet.

Sources in Corning said, the .cullet is frequently sold back to a supplier where it can be repurposed for a different glass application at Corning. This reprocessing has started an innovative supply chain cycle between the suppliers and Corning’s business divisions, cutting down on the amount of material waste.

Maximising advantage

Philippines based conglomerate SMC said it has maximized use of cullet in its glass plants under subsidiary San Miguel Yamamura Asia Corporation.

Cullet recovery at glass plant s and cullet are given priority at the Mandaue Glass Plant, Manila Glass Plant, Prime Pak, and SM Yamamura Asia Corporation (SMYAC), where glass bottles for beverages, liquor and other products are manufactured. In these glass plants, cullet is used as major raw material for production. The cullet supplies originate from in-house rejects and from plantaccredited glass buyers. The cullet collected undergo a segregation process.

Amber is for beer, green is for Sprite, and flint is for transparent bottles. The bottles are ground, mixed with virgin raw material, and fed into the furnace for melting.

The recycling of cullet that contains silica, limestone, feldspar, and soda ash reduces the amount of virgin raw material used in production. The plants were able to cut down on their power consumption since cullet melt faster than raw materials. Cullet recycling also decreases the volume of glass bottles disposed to the environment, said SMC.

www.asianglass.com

Glass bottle market in India -FY2016 (Source-HNGIL)

AG 17-5

asianglass

53

ANALYSIS: Cullet

The environment is not the only thing being saved by this program, the sources said, and added, combined with landfill-fee savings, the cullet program represents significant cost savings overall, with targets set even higher as the program gains momentum.

Corning plans to “immediately” investment of US$500 million and create 1,000 new American jobs making a new glass for medical products, Corning CEO Wendell Weeks told CNBC recently. The planned glass, called Valor Glass, is a substantially improved quality over existing products and it has superior strength and more damage-resistance, according to Corning.

Weeks said the two global pharmaceutical giants Merck and Pfizer have been working together for a number of years to improve pharmaceutical packaging. The initiative is a collaboration with Merck and Pfizer and was announced recently. As Corning CEO revealed, this is initial part of a plan to invest US$4billion and create 4,000 high-tech jobs in USA. The initiative is a collaboration with both the companies, Merck and Pfizer, leading operators in USA.

O-I steps up

O-I has stepped up its cullet uses in Asia and Australia-New Zealand, where the company’s container glass plants are the highest users of cullet, as the corporate officials of its Asia Pacific operations, operating from Australia, said.

An O-I sustainability report said, in 2014, the world’s largest container glass manufacturer, O-I, converted more than 4.7 million tonnes of post-consumer cullet into new glass containers worldwide.

“That is virtually the same amount we converted in 2013, which makes us the largest purchaser of post-consumer cullet in the world. But we want more. To achieve that, we are employing a multipronged approach that includes educating legislators, consumers and local community groups about the benefits of recycling glass, in addition to partnering with like-minded customers, nonprofits and material recovery facilities to collect more post-consumer cullet,” said O-I. As a percentage of the amount of glass produced by O-I around the world, the share in percentages in O-I’s cullet usage in 2014 shows, worldwide 38 percent, Europe 49 percent, North America 26 percent, South America 28 percent, and Asia Pacific 36 percent.

O-I has eight glass container manufacturing plants in the Asia Pacific region, located in Australia, China, Indonesia and New Zealand. It also has interests in joint venture operations in China, Malaysia and Vietnam. In Asia Pacific, the company primarily produces glass containers for the beer, wine, food and non-alcoholic beverage markets. It competes with rivals in Australia, but does not believe that it competes with any other large, multinational glass container manufacturers in the rest of the region.

O-I New Zealand is the largest user of recycled glass in New Zealand. As of 2015 across all types of recycled glass produced, it contained approximately 67 percent cullet. It is considered a great deal higher than many others, although, the rate is much lower compared to Europe. However, it is almost double than Asia Pacific as a whole.

In claim of cullet uses, O-I’s position is better in Asia for various reasons.

In China, the glass container segments of the packaging market are regional and highly fragmented with a large number of local competitors. In the ASEAN markets it has substantial partnership cooperation with large local players and share their achievements in cullet uses that goes as high as over 40 percent, especially, because of policy of maximization of cullet uses by its joint venture partner BJC. Partnering and advocating for increased glass recycling in Australia, to reduce the amount of excess green cullet and the amount of glass going to landfill, the O-I team worked to integrate more green cullet into the amber manufacturing process. When added to an amber batch, the green glass alters the amber color, resulting in what it refers to as a “redness ratio change.”

“Colour plays a large role in the shelf presence and marketing of a product, so it was important that our key customers were supportive of any change. By

54

asianglass AG 17-5

THAILAND Bangkok Glass Public Company Limited Location: Ratchadaphisek Rd., Klong Toey, Bangkok 10110, Thailand Products: Glass containers for glass packaging Markets: Domestic and export markets Others: Bangkok Glass Public Company Limited, also known as BGI (Bangkok Glass Industry Co) Group is the largest glass container manufacturer in South East Asia, and is a subsidiary of Boon Rawd Brewery, known internationally for Singha Beer since 1933, with Saint Gobain Oberland (SGO) as the Group’s largest foreign shareholder. After completion of the current expansion the annual production capacity will rise to over 4,000 tons per day from the existing 3,635 tons per day. Bangkok Glass provides various packaging solutions. It operates a major plant for PET bottles and manufactures various closures, including aluminium, crown, plastic and twist-off caps, for glass and plastic containers. It also produces corrugated cartons.

Berli Jucker Public Company Limited (BJC) (Thai Glass Industries PCL (TGI) and Thai Malaya Glass Company Ltd (TMG) Location: Principal production unit at new site in Saraburi, Thailand Products: Glass containers for glass packaging Markets: Domestic and export markets Others: BJC’s flagship Thai Glass Industries Public Company Limited (TGI) and its other Thai unit Thai Malaya Glass Company Limited (TMG) have daily production capacity of 2,445 tons and 990 tons, respectively, to cater BJC’s own drinks, beverage and healthcare packaging demands and to meet the customers in other packaging industries.

www.asianglass.com

2 wind turbines helped us improve our green credentials.

With a potential 50% energy saving a System 500 forehearth conversion could improve yours.

WE HAVE THE BETTER SOLUTION www.parkinson-spencer.co.uk

ANALYSIS: Cullet

collaborating for more than a year with key customers, including large amber bottle purchasers SABMiller and Lion, we were able to change the Australian amber glass color specification to allow a higher level of green cullet to be used to make amber glass. By partnering with our customers on the new colour spectrum we are able to use 5,000 to 10,000 more tonnes of green cullet in Sydney, Melbourne and Brisbane. Additionally, the project resulted in an increase of total recycled content of amber bottles.”

The Australian Packaging Covenant (APC) in partnership with O-I has opened a a new glass recycling cullet plant in Brisbane, Queensland. Prior to the plant’s opening, only 50 per cent of glass collected through kerbside recycling was able to be recycled, while the rest ended up in landfill. The APC says the aim of the project was to address this issue by creating a closed loop process where glass could be recycled into new glass containers. The plant is capable of processing 14 tonnes per hour on average and 82,000 tonnes of furnace-ready cullet per year.

Material matters

O-I claims it tries to minimize environmental impact through recycling and use less virgin material. “The more efficient our melting process, the less energy we need to melt the raw materials. Every 10 percent of recycled glass or cullet used in production leads to a 5 percent reduction in carbon emissions and a 3 percent reduction in energy use,” said the company.

“Because energy comprises one-fifth of our cost bucket, we set a stretch goal of cutting energy in half by 2017. Using cullet in the production process reduces our need for virgin raw materials and energy, thereby lowering our carbon emissions. So we set a goal of increasing the percentage of cullet we use globally to 60 percent from the 34 percent average that existed at the time. Aided by our goals to decrease energy consumption and increase cullet use, we targeted an emissions reduction of 65 percent.”

O-I said it was able to reduce energy by 12 percent, achieve 38 percent cullet usage, and reduce carbon emissions by 14 percent.

According to the global market researcher Freedonia, Asia Pacific region is expected to drive the global demand for industrial silica sand to advance 5.5 percent per year, combining with North America. The two regions’ demand will rise to 291 million metric tones in 2018, with a value of US$12.5 billion. The market segments include glass, foundry, and building products sectors.

Freedonia observes, faster gains in the overall market will be constrained by ongoing efforts to incorporate higher volumes of recycled glass cullet in the manufacture of glass containers. It says the Asia Pacific region will remain the largest regional consumer of industrial sand through 2018, supported by the dominant Chinese market, followed by India and ASEAN markets, specially, Indonesia, because of greater production in all types of glass sectors, particularly in container glass because of higher production of drinks, beverages and food items.

Market machinations

Despite shortage of cullet for want of organized scrap glass collection and recycling, Asia is a major cullet trading continent for its large import trade, which is about 40 percent of the worldwide buying, according to the estimates of the Geneva based International Trade Centre (ITC)..

In a global cullet import shipments of some half a billion US dollars a year, East Asian and Southeast Asian countries play a major role, being the main buying locations. China is among the top players in both imports and exports. Currently, China is the world’s largest cullet exporter in value, as the ITC estimates suggest.

Asian Glass giant China’s cullet exports to the Asian countries is rapidly rising.

Major importers are Thailand, Japan, India, Malaysia and South Korea, according to ITC. Thailand is the largest importer of cullet in Asia, and also in the world, in terms of value, as import data available with ITC. In 2016, Thailand’s importwas estimated at US$58.383 million, against previous year’s a little larger US$62.995 million. Last year, its import in quantity was 57,127 tons, as against previous year’s 59,199 tons.

56

asianglass AG 17-5

Siam Glass Industry Co Ltd (SGI) Location: Phraphradaeng, Samutprakarn 10130, Thailand Products: Beverage, drinks, food and medicine packaging glass Markets: Domestic and export markets Others: SGI, set up in 1977, in Phraphradaeng (south of Bangkok) in Samutprakarn province, is equipped with 7 furnaces and 19 production lines in 3 sites to manufacture 1,500 tons of flint, amber and green glass containers per day. In technology collaboration with the leading Japanese glass bottle manufacturer and machinery supplier Nihon Yamamura Glass Co Ltd, SGI accelerated the development and improvement the capability to suit the customer’s needs in the packaging industries. The company produces narrow and wide neck glass bottle of flint and colours from 15 ml up to 750 ml size for pharmaceutical and cosmetics, beverages and beer, and food packaging. SGI is a subsidiary company of Thailand’s one of the beverage market leaders, Osotspa Group, the largest consumer of SGI bottles.

INDONESIA O-I Jakarta Plant (Under O-I Asia Pacific operations) Location: Cakung, Jakarta, Timur, 13960, Indonesia Products: Glass containers for glass packaging Markets: Domestic and export markets Others: US based global packaging glass leader O-I’s regional arm O-I Asia Pacific operated O-I Jakarta produces around 2.3 million glass bottles per day for some of Indonesia’s leading food, beverage and pharmaceutical brands. O-I covers the whole range of bottles for spirits, vodka, whisky, rum, gin, tequila, aperitifs, etc, and for glass containers for beer, wine, sparkling wine and champagne, mineral water and liquors, with various sizes, shapes and colours. O-I Jakarta also helps the consumers in Indonesia and other Southeast Asian countries with supplies shipped from other production plants in Australia, New Zealand and China.

www.asianglass.com

When teamwork is not negotiable.

We apply synchronised expertise.

No matter where you are in the world our highly skilled team of engineers, designers, administrators and consultants is perfectly in sync to provide you with customized solutions to meet your specific requirements. Whether you require a brand new batch plant or wish to refurbish your existing one, our specialists inspect each plant before implementing the technology to ensure reliable and superefficient operations. And, unlike many other, we do not sub-contract any core functions, which means that you have direct access to the team that pulls its weight, at all times.

ZIPPE – BECAUSE WE DO IT.

Batch Plants • Cullet Plants • Automation Modernization • Engineering • Factory

ZIPPE INDUSTRIEANLAGEN GMBH Alfred-ZIPPE-Str. 11 97877 Wertheim

Cullet Recycling • Glass Recycling Batch Charging • Glass Level Controlling Preheating • Maintenance & Service

Tel.: +49 9342 - 8040 Email: zippe@zippe.de Web: www.zippe.de

ANALYSIS: Cullet

China is also a major buyer of cullet and second largest importer, in terms of value which was estimated at US$46.490 million in 2016, as against previous year’s US$52.201 million.

China gets supply of quality cullet from its close neighbor Japan, which exports US$20 million to US$30 million worth of cullet to the Chinese buyers. Other major suppliers are USA, UK, Germany, Taiwan and South Korea.

However, the world’s largest cullet exporter China’s export shipments were of worth US$63.165 million in 2016, compared to previous year’s US$71.958 million. The Chinese supplies feed mostly the neighbouring Asian countries, mainly East Asian and ASEAN nations, and also India.

In terms of volume, China’s export in 2016 was estimated at 88,685 tons, more than double of the shipment of some 39,903 tons of 2015. In 2016, Taiwan was the second largest supplier of cullet to the world market with shipment of 48,954 tons of worth US$5.675 million, against previous year’s 49,490 tons valued at US$5.345 million.

In volume, Malaysia was the largest Asian importer in 2016 with estimated import of 82,740 tons, against the previous year’s figure of 54,906 tons. In quantity, Indonesia was the second largest in Asia with imports of some 61,455 tons, which was significantly lower than previous year’s imports of 70,202 tons. In quantity, Malaysia, Indonesia, Thailand and India are among the mid ranking cullet importing countries globally.

Thailand, being a major organized cullet collector, exports some cullet, mostly to Malaysia. Thailand’s main supplier sources are China and Japan from which it imported cullet of worth some US$33.225 million and US$23.648 million, respectively, in 2016.

Imports of Malaysia, Indonesia and Thailand were consumed domestically by the glass manufacturers. All these three countries are heavily dependent on import of cullet from outside ASEAN region, as they have large production bases of container glass manufacturing which have large investments in recycling technology at the packaging bottle manufacturing plants, owned mainly by the four ASEAN regional giants, US based O-I (Asia Pacific), Bangkok Glass, Thai BJC and Philippines’ San Miguel Corporation (SMC).

ASEAN’s five largest packaging glass markets, Thailand, Vietnam, Philippines, Indonesia and Malaysia are also major importers of glass containers. Thailand, Indonesia, Malaysia and Philippines are also major exporters of container glass, while Vietnam is a major deficit market, where one major container glass plant is joint venture of O-I and BJC and other major one is owned by SMC.

VIETNAM Malaya Vietnam Glass Limited Location: Ho Chi Minh City, Vietnam Products: Glass containers for glass packaging Markets: Domestic and export markets Others: Malaya Vietnam Glass Limited manufactures and distributes glass containers serving producers of beer, beverages, and foods.

Began production a couple of years ago with a yearly output of approximately 75,000 tonnes of mainly returnable premium packaging glass for Vietnam’s beer, soft drink, food, wine, spirits and pharmaceutical markets. It has the capacity to adapt to market trends, extending to four lines with a production capacity of some 90,000 tonnes of glass bottles annually.

58

asianglass AG 17-5

Muliaglass (Muliaglass Container Division (MGC) of PT Mulia Industrindo Tbk) Location: Lemah Abang, Cikarang-Bekasi 17550, Jawa Barat, Indonesia Products: Glass containers, including glass bottles, jars and beer mugs.

Markets: Domestic and export markets Others: MGC can produce up to 185,000 tons per year of glass containers, including flint glass packaging for food and beverage products, and beer mugs, and amber and green glass bottles for beer, energy drinks, and pharmaceuticals.

PT. SCHOTT Igar Glass Location: Delta Silicon Ind. Park, 17550 Lippo CikarangBekasi, Indonesia Products: Pharmaceutical packaging glass Markets: Domestic and export markets Others: Germany based global pharmaceutical packaging leader SCHOTT’s Indonesia plant is providing as a hub for the company’s supplies to the Indonesian markets and the other neighbouring countries, especially, in the ASEAN region. SCHOTT’s Indonesian operation primarily manufactures small-sealed vials known as ampoules, and about 50-60 percent of sales are derived from the domestic market while the remainder are exported, mainly to Asian countries, including South Korea and Japan, the company said. The customers are mainly the pharmaceutical manufacturers that provide injected medications, the applications of which involves high quality glass packaging in which Schott has a command in the market. Overall, the Indonesian pharmaceutical sector is growing by at least six percent per year with expansion of spending in receiving health services.

PT. IGLAS Indonesia Location: Surabaya, East Java, Indonesia Products: Packaging glass for drinks, food and pharmaceutical industries.

Markets: Domestic and export markets Others: PT. IGLAS produces glass bottles of sizes ranging from 60ml to 1000ml in flint, amber and green.

Its products are supplied to the domestic and export markets.

www.asianglass.com

Heat Oxy-Combustion technology

Photo credits: De goa novi/shutterstock - Nexelia is Air Liquide’s trademark

Driving your performance to the next level

At Air Liquide, we have helped to move the glass industry forward for over 30 years, perfecting the use of oxygen in the melting processes.

With Nexelia for Melting-Heat-Oxy-Combustion, boost the performance of your furnace by preheating oxygen and natural gas before combustion.

• 10% Extra energy savings • 10% Extra CO2 emission reduction • Maximized oxy-combustion performance For more information, contact us. www.airliquide.com

ANALYSIS: Cullet

Thailand: cullet import sources (US$’000)

Cullet imports (US$’000) Importers of cullet in Asia (Value in thousand US dollars.)

Imported value in 2012

Imported value in 2013

Imported value in 2014

Imported value in 2015

Imported value in 2016

World

409,270

396,149

410,999

449,346

457,022

Asia Aggregation

136,569

132,158

134,025

173,305

163,084

846

1,741

13,962

62,995

44,322

48,699

53,596

52,201

Thailand China Japan

28,715

14,721

Malaysia

15,692

India

21,284

Indonesia

5,799

Korea, Republic of

6,780

United Arab Emirates

Major exporters of cullet to Thailand markets (Value in thousand US dollars.)

Imported value in 2012

Imported value in 2013

Imported value in 2014

Imported value in 2015

Imported value in 2016

World

846

1,741

13,962

62,995

58,383

58,383

China

50

147

7,553

40,370

33,225

46,490

Japan Taipei, Chinese

1

74

4,848

19,489

23,648

512

869

599

725

844

15,113

14,184

17,567

21,657

8,842

6,937

7,500

Lao

48

112

174

136

172

15,304

14,420

9,940

6,159

Myanmar

0

0

0

29

153

4,247

4,644

6,178

5,420

Cambodia

7

35

111

96

116

7,726

10,360

8,174

5,326

Viet Nam

0

0

0

15

67

1,793

1,973

1,905

946

4,674

Malaysia

217

393

639

665

66

Israel

1,310

1,543

2,705

1,781

2,376

Korea, Republic of

3

0

0

1,456

60

Bahrain

1,967

1,065

1,760

1,749

1,878

Taipei, Chinese

2,135

5,988

522

2,195

1,223

India

0

0

0

0

11

Oman

1,034

1,383

1,279

1,344

841

Thailand

0

0

0

8

11

Viet Nam

278

402

562

265

826

0

0

6

2

9

Saudi Arabia

289

756

1,126

297

566

Hong Kong, China

114

495

594

430

531

Turkey

154

797

346

263

468

Kuwait

769

732

719

655

438

Bangladesh

United States America

of

Thailand: cullet export destinations (US$’000) Major importers of cullet from Thailand (Value in thousand US dollars.)

Exported value in 2012

Exported value in 2013

Exported value in 2014

Exported value in 2015

Exported value in 2016

65

167

476

356

Singapore

405

493

584

206

323

World

2,216

4,031

3,670

3,760

2,500

Uzbekistan

88

249

110

110

211

Malaysia

1,413

2,304

2,639

2,555

1,589

0

0

0

742

206

France

116

300

466

547

649

Kazakhstan

151

250

348

484

198

Philippines

1,082

1,285

212

218

180

Indonesia

436

539

274

459

188

Syrian Arab Republic

1

26

5

171

0

1

172

87

54

Nepal

2

2

5

0

83

13

41

2

26

20

Qatar

163

33

81

53

59

15

0

16

1

27

1

34

0

19

3

Iraq

Azerbaijan Jordan Kyrgyzstan

0

17

19

2

2

Pakistan

275

4

25

81

2

Iran

703

239

78

113

2

Armenia

319

77

0

0

1

MALAYSIA Malaya Glass Products Sdn Bhd (MGP) Location: Johor Bahru 81200, Malaysia Products: Glass containers for glass packaging Markets: Domestic and export markets Others: MGP is a joint venture of MGP, BJC and O-I. It manufactures and sells glass containers for breweries, food companies, and soft drinks manufacturers in Malaysia, South East Asia, China, and Australia.

In normal operation Malaya Glass Products has a production capacity of 445 tons per day or 165,985 tons per year.

60

asianglass AG 17-5

Japan Italy

San Miguel Yamamura Haiphong Glass Co Ltd Location: Ngo Quyen District, Hai Phong, Vietnam Products: Glass containers for glass packaging Markets: Domestic and export markets Others: San Miguel Yamamura Haiphong Glass Co Ltd operates as a subsidiary of the Philippines based San Miguel Corporation group (SMC) owned San Miguel Yamamura Packaging International Limited (SMYPIL), which is SMC’s international packaging business under San Miguel Yamamura Packaging Corporation (SMYPC).

SMYPC and SMYPIL are joint ventures of SMC and Japan based Nihon Yamamura Glass Co Ltd.

www.asianglass.com

FURNACE TECHNOLOGY

CONTINUALLY DESIGNING, BUILDING AND MODERNISING

www.teco.com

®

TOTAL FURNACE CAPABILITY TOLEDO ENGINEERING / TECOGLAS / ZEDTEC / KTG ENGINEERING / KTG SYSTEMS / EAE TECH

ANALYSIS: Cullet Cullet exporters (tonnes) Exporters of cullet from Asia (Quantities in tons)

2012

2013

2014

2015

2016

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

Exported quantity, Tons

World

2,871,440

2,909,319

3,038,768

3,479,353

3,393,088

232,877

215,234

237,486

593,740

330,412

China

41,739

35,539

43,801

39,903

88,685

Taipei, Chinese

18,500

24,608

41,140

49,490

48,954

Asia Aggregation

PHILIPPINES San Miguel Yamamura Packaging Corporation (SMYPC) Location: Mandaue City, 6014, Cebu, Philippines Products: Glass containers for glass packaging Markets: Domestic and export markets Others: San Miguel Corporation and Japan’s Nihon Yamamura Glass Company Ltd joint venture, SMYPC, offer normal bottles, decorated bottles, novelty bottles, custom-designed bottles and jars and stock glass bottles in amber, green and flint. SMYPC has its roots in San Miguel Brewery Inc (SMB), the largest producer of beer in the Philippines, with nine out of ten beer drinkers preferring its brands.

Japan

84,013

56,125

47,792

44,196

29,619

Thailand

18,075

31,255

27,049

30,029

22,820

3,508

7,945

10,125

11,583

22,729

Malaysia

Nepal

14,483

5,258

16,472

365,139

21,519 14,690

Singapore

15,633

15,148

16,117

14,689

Sri Lanka

490

No Quantity

3,724

3,515

14,660

United Arab Emirates

922

227

141

1,507

14,133

No Quantity

No Quantity

No Quantity

No Quantity

12,130

3,848

9,834

10,524

10,492

10,953

Viet Nam Korea, Republic of

3,387

1,264

2,762

4,002

5,152

Philippines

India

10,777

5,116

1,245

2,238

4,999

Kyrgyzstan

1,438

6,416

509

3,844

3,197

151

159

757

329

3,154

5,058

7,522

5,491

5,215

3,117

2,560

297

699

1,389

895

2,140

0

1,374

635

613

2,009 1,664

Turkey Saudi Arabia Myanmar Kazakhstan Cambodia

Cullet imports (tonnes) Importers of cullet in Asia (Quantities in tons.)

World Asia Aggregation Malaysia Indonesia India Thailand United Arab Emirates Japan Korea, Republic of Saudi Arabia Taipei, Chinese Viet Nam Bangladesh Uzbekistan Turkey Kuwait Bahrain Oman China Hong Kong, China Myanmar Kazakhstan Philippines Nepal Singapore Kyrgyzstan Iraq Iran Armenia

62

2012

2013

2014

2015

2016

Imported quantity, Tons 3,562,387

Imported quantity, Tons 3,396,185

Imported quantity, Tons 3,709,993

Imported quantity, Tons 3,730,966

Imported quantity, Tons 4,031,271

305,671 86,962 43,576 95,468 8,485 11,303 5,145 16,133 10,337 5,828 0 305 1,469 291 5,366 2,677 3,988 1,472 160 0 253 4,124 1 731 0

314 1,052

249,871 27,718 46,159 61,370 25,481 13,286 13,573 8,987 14,496 5,441 0 1,186 6,482 993 6,366 1,397 4,491 1,607 892 0 394 7,486 7 615 209

391 256

330,956 88,026 54,058 63,563 29,143 14,336 28,228 13,377 19,539 3,272 0

623 685 5,577 2,284 3,862 1,254 955 0 463 931 11 411 187 0 43 0

338,298 54,906 70,202 55,382 59,199 5,893 27,590 17,392 7,919 12,747 0 5,016 3,681 451 4,793 3,370 3,609 1,304 956 0 1,375 443 0 380 0 1,353 112 0

82,740 61,455 60,206 57,127 22,267 20,897 14,113 9,100 8,687 7,422 4,805 4,013 3,486 3,214 3,003 2,981 1,265 869 698 654 407 335 249 56 53 1 0

asianglass AG 17-5

Pakistan

230

840

187

438

Hong Kong, China

233

No Quantity

559

742

739

4,116

1,819

426

604

260

Jordan

China: cullet exports (tonnes) Importers of cullet exported

by China (Quantities: In tons)

2012

2013

2014

2015

2016

Exported Exported Exported Exported Exported quantity, quantity, quantity, quantity, quantity, Tons Tons Tons Tons Tons World 41,739 35,539 43,801 39,903 88,685 Asia Aggregation 35,246 29,914 35,904 31,701 82,462 Thailand India Japan Malaysia Korea, Republic of Oman Turkey Hong Kong, China Uzbekistan Bangladesh Taipei, Chinese United Arab Emirates Saudi Arabia Philippines Iraq Viet Nam Indonesia Israel Singapore Sri Lanka Pakistan

143 3,292 15,347 3,478 8,244 900 211 165

1,105 5,433 14,706 1,830 4,324 0 23 289

1,277 3,664 16,031 6,437 4,930 0 39 430

7,934 2,911 13,936 2,336 1,198 697 734 651

27,114 21,154 14,584 11,735 4,327 1,085 627 411

31 10 90 125

66 701 197 76

34 1,100 354 300

59 11 268 330

376 252 228 188

127 125 140 120 901 44 30 32 1,502

283 37 77 159 313 21 58 28 18

254 78 139 25 493 61 39 43 15

264 43 22 146 2 12 21 19 4

75 60 53 51 19 16 11 5 2

www.asianglass.com

AllSteel_HalfPagAd_AsianGlass_Layout 1 8/24/2017 9:55 AM Page 1

New 100% STEEL Wear Protected Chain New Ramsey All-SteelTM chains are tough enough for the most demanding applications.

Protected against lateral chain and pin head wear by all steel, hardened, alloy side links, the links in this chain will never crack under pressure.

If you have tried other chains and had problems with sintered metal links cracking, those days are over. All-Steel can be added to almost any style conveying chain.

This product breakthrough is only available from Ramsey.

Contact Ramsey at www.ramseychain.com, (704) 394-0322, sales@ramseychain.com

6252 Calumite Asian Glass 178x124 AW

calumite.co.uk

Calumite – an essential raw material for the glass industry.

Use Calumite to: • Reduce energy consumption • Improve glass quality • Increase furnace pull • Reduce furnace temperatures • Reduce NOx and CO2 emissions • Provide a high quality alumina source To find out more call Calumite Ltd on:

+44 1724 282211 Email: enquiries@calumite.co.uk

ANALYSIS: Facades

Build it big

Facades and coatings for Indonesia

Regatta, an iconic ultra-luxurious high-rise condominium at Pantai Mutiara, Jakarta. Photo courtesy of Sain-Gobain.

AG looks at how the construction trends of ASEAN are driving the market in external cladding and facades, and considers what this will mean for future glass demand.

P

T Asahimas Flat Glass Tbk (AMFG) and Saint-Gobain Indonesia are working together or side by side with their projects in many of Indonesian’s landmark façadeclad high-rise building construction sites, by providing glass and other materials and engineering supports. In one of the major projects, Regatta Jakarta, which involves the construction of 10 luxurious and high-rise apartment towers, including a five-star hotel, on 11 hectares of reclaimed land in Pluit, North Jakarta, they share the same feeling and experience of giving the Indonesian major cities a look of new generation glass architecture. Both the companies view the potentials among the best in Asia.

Energy saving coated glass made facades are coming up in huge numbers in Indonesia as a part of the country’s green-building policy adopted by the government this decade with a target of reducing electrical energy consumption by at least 30 percent in the urban building blocks. Large beautiful buildings in several hundreds, designed by the reputed architects

64

asianglass AG 17-5

of Indonesia and others from all over the world, are wearing facades of attractive colours with great popularity. AMFG’s Japanese parent AGC (Asahi Glass Co) found it worth capturing by installing an offline coating plant planned to go on stream next year.

The reduction of energy consumption and indoor air pollution are the two main targets of the construction industry determined to be achieved in every building project in Indonesia. The glass facade of the building is now considered important as an aspect that can assist the overall structure of the building and become more responsive to the environment as well as energy efficient. The facade of the building being a part of the building’s envelope is the most important component of a structure. As it plays an important role to complement the shape of the structure and determine the visual impact on the urban environment, the government is encouraging it in large buildings.

Basically, as the environment officials consider, the facade protects the building from outside interference, bad weather, rain, wind, pollution and heat. In Indonesian tropical climate, buildings are badly exposed

www.asianglass.com

ANALYSIS: Facades

to moistures and high temperatures. The government has adopted a sustainable green buildings programme under which the construction industry requires to design and construct building facades by following the principles of the green policy.

Plenty of buildings with facades are coming up every year and they have to obtain green certified clearance from the government for their fitness, but the progress is yet to pick up, according to the sources in the government.

Although, compared to the country’s total construction sector, the figure of glass facades or metal facades, in combination of glass, is still small, but not negligible for big cities where glass façades Ciputra World Surabaya mall-office block project.

Picture courtesy of Ciputra in big buildings are highly popular and increasing every year in terms of size of the building exteriors.

The construction industry in Indonesia is reportedly said to have significant investment to obtain funding of US$423 billion from the government. The growth of the construction sector is estimated to reach an average of about 6.9 percent per year between 2017 and 2021. It is estimated that more than 4 million buildings exist now in Indonesia. Of them, 1,227 large and high rise buildings are located in the largest city Jakarta, but only 140 buildings have green certificates so far, while others are moving in a snail’s pace.

The government has set out to reduce greenhouse gas emissions by 29 percent by 2020 by making stricter regulations for the construction industry, which are expected to boost sustainable construction. A pragmatic approach to structural design and construction has encouraged interested stakeholders to design buildings that can improve the quality of life of the inhabitants, as well as, environmental safety and cost-efficiency in construction and maintenance, said the officials in the Ministry of Public Works and Public Housing (PUPR).

Yusid Toyib, the director general of building construction under PUPR, said the development of the construction regulations is currently going underway and initially will be framed this year for future implementation.

The Green Building Council Indonesia (GBCI ) suggests that the regulation and the process of supervision needs to be improved up to the level of Singapore, where the system for supervision and certification is ten times speedier.

Booming Low-E

In Indonesia’s building boom, the issue has emerged of how to improve energysaving efficiency on the back of increasing fuel imports and power supply shortages. The government is promoting saving-energy policies for large sized

www.asianglass.com

buildings, including those air-conditioned throughout the year. The demand is surging for Low-emissivity coated glass as Low-E features solar control performance with solution for improving air-conditioning efficiency and reducing energy consumption.

AMFG’s parent AGC will expand the lineup of energy-saving products that feature improved solar control and insulation performance in Indonesia, while maintaining high transmissivity of visible light. With the new facility, AMFG will provide customers with products that meet their diverse needs for the performance and design of buildings with facades, making a significant contribution toward reducing energy consumption.

AMFG will continue to capture growing demand in Indonesia through the production enhancement and responding to growing energy-saving needs in the area, which will be achieved by utilizing the offline sputtering coating facility that will start operation at the Cikampek Plant in the second quarter of 2018.

Facades and window coatings reduce the amount of heat that passes through glass. To have balance between aesthetic appeal and energy efficiency, architects are increasingly turning to glass curtain wall construction. Glass can be well combined with other materials, such as, metals, natural stones, plastic coated metals, etc.

Indonesia’s major cities, such as, Jakarta, Surabaya, Semarang, Bandung, Medan, Tangerang, Bekasi, Depok, Palembang, Makassar, etc, are under pressure of rising population that resulted in increase of high rise buildings for apartments, office blocks, hotels and shopping malls. Many of such buildings are built with façade of coated glass.

Building impact

Existing luxurious hotels and resorts, comfortable apartments and modern offices in high-rise buildings, particularly, in Jakarta, are clad with high performance curtain glass walls. High performance curtain walls without shading devices result in involvement of higher cost in building construction and in their operation and maintenance, according to the researchers. They suggest It also decreases the thermal comfort of the outside environment and contributes to the urban heat island phenomena.

The Jakarta city authorities are greatly concerned with it, for which, they have recently implemented a new standard for new building construction to reduce the energy consumption of office buildings. It has to meet the minimum Overall Thermal Transfer Value (OTTV) of 35 watt per

AG 17-5

asianglass

65

ANALYSIS: Facades

square metre. However, with this standard, according to the researchers, it is highly restrictive against use of normal curtain glass.

“The only option sustainable is using very high performance glass or reducing the window to wall ratio (WWR) and using shading devices,” said a study conducted by the researchers Agus Hariyadi and Hiroatsu Fukuda, of the University of Gadjah Mada of Yogyakarta (Indonesia) and University of Kitakyushu (Japan), respectively.

In tropical countries, they observed, the most effective way of passive design strategy is using shading devices that will block or reflect direct solar radiation before reaching the facade. The amount of solar radiation that can be blocked by the shading devices depends on their physical characteristics, while building regulation also requires an outside view from inside the building to reduce the sick building syndrome, they said. The dense shading will increase the effectiveness of reducing energy consumption but will decrease the quality of opening visibility, they pointed out.

Like other richer tropical countries, people in Indonesia like to have buildings with curtain glass wall as the facade. This increases the cooling energy demand resulting in change of micro climate around the buildings, which causes urban heat island in major cities, and most particularly, in Jakarta. To control the use of energy, the government has released some standards regarding the performance of building skin. One of the standards that has to be followed when designing building façade is the overall thermal transfer value (OTTV). It is the average value from the solar radiation through fenestration surface, conduction from glass material and conduction from wall surface.

In 2011, the government has set the standard for OTTV, which is 35 watt/m2 (BSNI, 2011b), while before 2011 the standard was 45 watt/ m2. The impact of this new standard is the decrease of cooling energy demand for buildings. This regulation is appropriate to be implemented in high-rise buildings, and most of the high-rise buildings in Jakarta are office buildings and mix-used buildings between commercial and office buildings. This kind of buildings have used energy mostly for cooling system and lighting system. Cooling energy is influenced by external gain from their envelope. The components that affect the solar heat gain are glazing material, fenestration area, and orientation, according to Agus Hariyadi and Hiroatsu Fukuda.

The standard regulation has changed the way architects design the façade of buildings, said the researchers. Façade design becomes an important design element not only in maintaining the energy consumption but also in the architectural aspect. Façade also consumes a large portion of the construction and maintenance budget. The other function of façade is to connect with the environment. Each of the function can be measured from its thermal performance and visual performance. More opening will increase the visual performance. However, the researchers said, it will decrease the thermal performance.

THE GOVERNMENT HAS SET OUT TO REDUCE GREENHOUSE GAS EMISSIONS BY 29% BY 2020 Ciputra World Surabaya Tower super blocks.

Photocredit Ciputra

High rise action

In Indonesia, façade and coating development is greatly centred on the domestic supply sources of flat and processed glass in which AMFG played the leading roles. Much of the glass used for facades are sourced from AMFG and the other local manufacturer, Muliaglass, even in the projects shared by the rival Saint-Gobain, which has strong presence with supplies of glass from its plants in ASEAN and other Asian countries, including US and European factories.

Industry sources said, architects in Indonesia face an increasing array of choices in specifying and designing with glass for building facades, as glass manufacturers and processors propose a greater variety of colors, textures and patterns than ever before. A wider range of coatings and treatments has also been developed, allowing for a finer selection of glass panes with a combination of light transmittance, reflectance and absorption to meet the needs of outstanding architectural projects. These options affect the aesthetics and energy performance of the glass and overall building.

66

asianglass AG 17-5

PT Asahimas Flat Glass Tbk (AMFG) Location: Jakarta, Cikampek and Sidoarjo (all 3 in Java), Indonesia.

Product/service: Float glass manufacturer-processor and supplier for glass and alluminium facades and other glazing works. Setting up a new 6 million sq metres a year solar-control coating facility for architectural glass at Cikampek with a plan to start production in the second quarter of 2018.

www.asianglass.com

Batch Plant

配料系统 整体解决方案 COMPLETE SOLUTION for Bulk Materials Handling 高精度配料设备, 混合均匀 Accurate Dosing & Weighing High Homogeneity 全自动控制系统, 无人值守 Automatic Control Unman Operation 专业的服务团队, 响应迅速 Professional Service Quick Response

上海普利森配料系统有限公司

Shanghai Precision Dosing And Weighing System Co.,Ltd.

地址 上海市莘庄工业区光华路 968 号 A 座 4 楼

Address: 4F, Bldg A, 968 Guanghua Rd., Xin Zhuang Industrial Park, Shanghai 201108, China

电话: +86 (0) 21-64891607,64422780 | 传真: +86 (0) 21-64422772

Tel: +86 (0) 21-64891607,64422780 | Fax: +86 (0) 21-64422772

邮箱: info@shpws.com | 网址: www.shpws.com

Email: info@shpws.com | http://www.shpws.com

ANALYSIS: Facades

Besides introduction of a wider selection of energy saving glasses

by AMFG and AGC combined, Muliaglass has its own glass and also in collaboration with Saint-Gobain. Muliaglass ranges include both single and double glazing performance reflective glass.

In line with Indonesian government policy for green building and use of energy saving glass, AMFG has plans to introduce a series of latest green products in addition to the existing ones. The demand for energy saving glass used in facades is expected to continue to grow as the public awareness of green products for building and the implementation of Green Building Regulation by the Public Works and Public Housing Ministry has been intensified.

The AMFG-marketed current lines of energy saving glass include new Stopsol Supersilver, reflective online glass produced by latest online coating technology that offers better energy saving performance. Also introduced is AGC’s Sunergy Sigma, online solar control Low-E glass with 3-layer coating technology that offers great visual image and best energy saving performance among its peers and maintain comfortable temperatures inside buildings.

Energy efficient and energy cost saving Sunergy Sigma series is a range of high performance pyrolytic solar control Low-E glass, in a variety of colours, has been developed anticipating current architectural trends and offering improved solar control properties and brighter appearance, said AMFG. It delivers low emissivity properties and thermal insulation and offers multiple processing possibilities, such as, tempering, laminating, IGU, etc, and available for single glazing and IGU usage, and also for easy handling and processing for processors (no edge deletion required), the company claims.

AMFG said, its business prospect in 2017 is as expected to be better than in 2016. The government currently focuses on accelerating development and conducting bureaucracy reform in all fields. The government’s efforts for deregulation, accelerated infrastructure development, and economic policy packages rolled out are expected to give positive contribution towards the growth of national economy.

Meanwhile, the Indonesian property market is expecting to recover soon providing opportunities for improvement in major building projects, said Takeo Takei, President Director of AMFG. He expects the Indonesian economic growth this year would rise to at least 5.1 percent, as the government predicted. Last year, the Indonesian economy grew by only 5.02 percent, slightly higher than the growth in 2015. Due to slower growth than expected, AMFG’s planned market growth was affected.

With beginning of commercial operation since January 2017, the new flat glass factory in Cikampek with a capacity of 210,000 tons per year has increased the AMFG’s overall flat glass production capacity to 630,000 tons per year of various colours and thickness, which spread in three locations, Jakarta, Sidoarjo (adjacent to Surabaya in east Java) and Cikampek (about 85 kilometres east-southeast of Jakarta factory), all in Java. The total production capacity of float glass is scheduled to rise to 720,000 tons per year from the first quarter of 2019 and the products will have more value added glass suitable for facades and other high-end building needs, said the company.

Adding value?

Particularly, the new Cikampek factory will produce value added glass to meet the increasingly diverse demands for different types of flat glasses, including those of façades and coated glass. AMFG has already raised its investment for its planned offline coating glass. The demand for value-added glass for facades will continue to grow in the long term along with the domestic growth of property, said the company.

To cope with increasing market demand and to support government initiative and policy of green building, the AMFG will install a 4 billion yen state-of-the-art offline magnetron coater with European technology

68

asianglass AG 17-5

Saint-Gobain Indonesia Location: Jakarta, Indonesia Product/service: Float glass manufacturer-processor and supplier for glass and alluminium facades and other glazing works Mulia Group (also PT Muliaglass and PT Mulia Industrindo Tbk) Location: Cikarang, Sukaresmi, Cikarang Sel, Bekasi, Jawa Barat, Indonesia Product/service: Float glass manufacturer, contractor, fabricator and installer of glass and alluminium facades an PT Multigraha Alumindo (MULTINDO) Location: Jakarta (Workshop at Bogor), Indonesia Product/service: Contractor, fabricator and installer of glass and alluminium facades and other glazing works.

PT Meinhardt Indonesia Location: Jakarta, Indonesia Product/service: Contractor, fabricator and installer of glass and alluminium facades and other glazing works.

PT Shenyang Yuanda Location: Jakarta, Indonesia Product/service: Contractor, fabricator and installer of glass and alluminium facades and other glazing works.

PT Alamkaca Prabawa Indonesia Location: Jakarta, Indonesia Product/service: Processors-suppliers of flat and building glasses, including IGU. PT Independent Glass Fabricator Location: Jakarta, Indonesia Product/service: Processors-suppliers of flat and building glasses, including IGU. Roxy Glass Location: Jakarta, Indonesia Product/service: Processors-suppliers of flat and building glasses, including IGU. PT Multi Arthamas Glass Industry (MAGI) Location: Surabaya, Indonesia Product/service: Processors-suppliers of flat and building glasses, including IGU.

www.asianglass.com

We keep the Aim and the Spirit of the Age of Discovery

Following in the footsteps of fourteenth-century Portuguese navigators, the LIZMONTAGENS THERMAL TECHNOLOGIES Group, based in Lisbon, Portugal, has expanded its industrial services worldwide over the past three decades, becoming the global leader in glass furnace construction and one of the leading references in heat containment for industry.

Your projects are our projects

Av. Almirante Gago Coutinho, n. 56 - 10th, 1749-041 Lisbon / Portugal Tel. + 351 218 429 270 / Fax. +351 218 409 412 marketing@lizmon.com / www.lizmongroup.com

Copyright, Š Lizmontagens Thermal Technologies - April, 2017 Monument to the Discoveries, Lisbon

With a network of more than 30 subsidiaries and partners, from America to Japan, the Groupâ&#x20AC;&#x2122;s industrial services cover the construction and maintenance of industrial furnaces, the design, construction and maintenance of industrial chimneys, supply of materials for the thermal industry and other technical services.

ANALYSIS: Facades

in Cikampek. This approximately 6 million sq metre a year coater, which will commence in first half of next year, will allow the company to expand energy saving product ranges by improving the performance of glass in both solar control and thermal insulation, while still providing appropriate level of light transmission. The green products would also stimulate the usage of processed glass and also develop the capability of local glass industry player.

For the end-customers, they could have more options in glass performance and aesthetics to meet their design preference and enjoy significant energy saving cost of their building, said AMFG. Besides the Indonesian domestic markets, this magnetron coater will also serve to supply regional demand of energy saving product in the neighbouring countries, the company added.

However, in flat glass, Muliaglass, with an annual production capacity of 612,500 tons, reported better business in 2016, due to improved products.

The company said its strategy in improving product portfolio was executed well, while sales proportion of colored and thick float glass has increased domestic demand. Its low-e glass ranges, with thickness range of 2-12 millimeters, have been meeting the demand of the facade markets .

Muliaglass offers various energy saving glass of different colours for facades, which includes Soles (tinted), reflective glass series, Murex, Mulflex, and Vistran (clear).

Mulia Group also offers Mulia St Gobain range SUN BAN’s energy saving glass, which include single glazing performance’s Reflectasol, Antelio Plus, and double glazing performance’s Reflectasol and Antelio Plus.

PT Sinar Rasa Kencana Location: Jakarta, Indonesia Product/service: Processors-suppliers of flat and building glasses, including IGU. PT Abebersa Pratama Location: Bekasi, Indonesia Product/service: Processors-suppliers of flat and building glasses, including IGU.

Landmark projects

Many landmark buildings with facades have been constructed in Indonesia in recent years. Most of them are in large cities in Java. Many are now under construction and in pipelines. Largest city, Jakarta, have the most notable ones.

World Trade Centre II is one of the most iconic office buildings with facades in the central business district of Jakarta. PT Meinhardt Indonesia’s façade services provided full supports for its curtain wall and glass wall design and engineering and fabrication. With a total floor area of approximately 60,000 square metres, this prestigious A grade office tower is 30 storied high and reaches a height of 160 metres, including a 25-metre tall architectural crown.

The façades of this building is one of the few developments in Jakarta designed to comply with the Green Mark criteria of Singapore. The building’s main façade system consists of a unitised curtain wall with high performance Low-E coated insulated glass. Light weight and translucent glass panels are integrated within the curtain wall, offering varying degrees of light transmission and visual privacy for the occupants.

AMFG and Saint-Gobain provided glass facades project in Ciputra World Surabaya is Surabaya’s largest super tower block project for major property owner-developer the Ciputra Group. Standing on an area of 9 hectares, on Jalan Mayjend Sungkono, the project was built with the concept of superblock that will change the face of Surabaya as most modern and world class. It consisting of Ciputra World Mall, Ciputra World Hotel, Skyloft-SOHO, The Voila Apartment, Ciputra World Office and also VieLoft Next Level SOHO complementing Ciputra World as most comfortable and entertaining.

Lighter glass aluminium façade building has also emerged. PT Shenyang Yuanda provided light weight facades in fast and easy process for a 6,000 square metre aluminium façade covered by Decidamp® SP80, previously known as Soundpaint SP150. This new high rise commercial building located in Sudireman Central Business District of Jakarta achieved good result, with German engineering. it is the first of its kind in Indonesia and it has been awarded with the LEED Platinum Grade Pre-certification, granted by the US Green Building Council.

The Shenyang Yuanda created aluminium facade posed a challenge for

70

asianglass AG 17-5

Ciputra World Surabaya apartment.

Photocredit Ciputra

Pyrotek® to come up with an engineered solution. Solving this high impact noise problem was all in a day’s work for Shenyang team. Due to the design of the building, during rain, noise impact from rain drops and wind can cause tinniness and ringing on aluminium façade panel, which would potentially reverberate throughout the building.

Raw metal including aluminium can become acoustically excited due to impact noise. Put into perspective, this building hosts 40 floors, each with a façade made of aluminium, combined with a 2 mm thick tempered glass panel, over the 209.45 metres of high rise construction. During a heavy rain fall, the untreated façade would emit high levels of noise, amplifying

www.asianglass.com

GLASS HAS A GREAT PAST.

YOUR PRODUCTION HAS A GREAT FUTURE. An IS machine keeps going almost indefinitely – provided the control system doesn’t let you down first. In practice, however, discontinued products or obsolete interfaces can seriously impact your competitiveness ahead of time. This is where we step in.

With more than 40 years’ experience in automation, FMT24S distributed control systems and FDU24S drive solutions, we have the know-how to refurbish any IS machine in the market. Now and in the future.

automation in a new dimension

futronic GmbH · Tolnauer Strasse 3-4 · 88069 Tettnang (Germany) Tel. +49 7542 5307-0 · Fax +49 7542 5307-70 · info@futronic.de

2015-4500-005_FUT_Anzeige_Glas_EN.indd 1

27.01.16 17:12

ADVERTISER FEATURE

72

asianglass AG 17-5

www.asianglass.com

ANALYSIS: Facades

The whole sea-front luxury project, developed by the leading Indonesian throughout the building adding up to a lot of disruption. To reduce the impact noise, vibration damping was recommended to be applied to the facade. property developer PT Intiland Development (DILD), is a mixed-use concept, offering not only apartments but also a top-end hotel, serviced Regatta Jakarta Apartments project is one of the leading newest apartments and an aqua park. It is an ongoing ones and work is going on integrated residential project, occupies since last one decade and have so far a land area of 11 hectares in the area completed only a half of the project, yet its completed towers’ facades are of Mutiara Beach, and is a luxury area with the planning of the construction outstanding in both use of glass and of 10 apartment towers, one five star engineering. The project has an iconic design that is taken from the nautical hotel, and water park facilities that adopt the theme of marine. theme with the sail as the core idea.

The project, surrounded by Built into a brilliant architectural panorama of the sea and began in concept and perfectly translated by 2006, is planned to be completed in Atkins - the architect of Burj Al Arab into a beautiful reality. three phases. In first stage, has built four luxury apartment towers with The clusters of the buildings represent a total of 368 units, on an area of 2 elegant sailing yachts departing from hectares. While the second phase the cardinal points of a compass, giving has been utilizing a land area of 1.5 rise to its name ‘Regatta’. Regatta has hectares and completed this year which become a landmark of Jakarta and has includes the hotel tower and three won a Prix d’Excellence awarded by the condominium towers, with a height International Real Estate Federation, of 24 floors. Each tower provides 186 FIABCI, one of the most prestigious residential units. The last phase will be awards for worldwide architectural Ciputra World Surabaya Towers hotel-mall-office-apartment super project. Picture developed next year. design competitions. courtesy of Ciputra 178x124_ING_MIR_2017_VITRUM.qxp_Layout 1 21/09/17 12:37 Pagina 1

de

Ma in ly

Ita

w w w . a d e l i o l a t t u a d a . c o m

The widest range of edging and bevelling machines currently on the market

VITRUM 2017 OCTOBER 03-06 Hall 7P Booth E01-G10 ADELIO LATTUADA ® EVOLUTION OF GLASS WORKING

www.asianglass.com

Via Abbondanza, 11/13 - 22070 Carbonate (CO) IT Tel. +39 0331.832713 - info@adeliolattuada.com

We are looking for NEW AGENTS for Far East and Southeast Asia

AG 17-5

asianglass

73

SPECIAL REPORT

In focus

IN THE DRIVING SEAT Gopal Ganatra, Asahi India Glass, talks about the changing supply dynamic on the subcontinent and also how GST may impact the glass industry.

Gopal Ganatra, Executive Director, Asahi India Glass (AIS) has an overall experience of approximately 18 years and has been with AIS for the last 10 years and has spent the last 6 years in various senior management positions in the company. He is a qualified CS, LLB and MBA (major in Finance and Marketing and minor in Strategy) from MDI, Gurgaon. Besides spearheading the Legal, Governance (including Internal Audit) and Investor Relations roles from corporate headquarters of AIS, Ganatra heads many strategic and operational CFTs within AIS. Asahi India Glass (AIS) is India’s leading integrated glass solutions company and is a dominant player both in the car and building glass segment. It commands about 78% share in the Indian passenger car glass market and has an established track record of about 3 decades.

Established in 1986, AIS’ footprint today spans the entire spectrum of the automotive and architectural glass value chains. It is a sand-to-solutions organisation with products and services for both institutional and retail customers.

The Company’s origin can be traced to the JV agreement between the Labroo family, Asahi Glass Company (AGC), Japan and Maruti Suzuki India Limited in 1984. As a promoter group, the three entities jointly hold about 55% of paid-up equity capital of AIS with the balance 45% being held by the public.

In an interview with media in September, Gopal Ganatra said, “High-performance glass is an integral part of any building in a Smart City. These glass products are capable of huge energy savings, plus glass is a ‘green’ material and is 100% recyclable. AIS is fully-positioned to cater to this opportunity.”

What is the impact of GST on the overall glass industry and the company in particular?

GST is a very welcome step for the glass industry and specifically, at AIS, we are broadly happy with the new tax regime. We firmly believe that GST will significantly widen tax base and compliance. This would, in turn, allow AIS to address more business opportunities in some unorganised/smaller market segments, where we were forced to be uncompetitive solely due to the innovative ways of tax evasion under the earlier tax regime. We now have a level playing field to pitch our highly competitive value proposition into these segments also. We have also made a representation to the government for bringing petroleum products, mainly natural gas, under the GST ambit for obvious benefits to everyone.

74

asianglass AG 17-5

Do you oversee any impact on the company due to the sluggish growth in the real estate industry?

Last year remained yet another subdued year for the real estate industry. Affected by demonetisation, RERA and run up to the GST, the construction sector remained muted with 1.7% growth. Our sales were flat in the institutional segment as very few large projects came up for bidding and closure. However, our sales in the distributed market remained strong with the introduction of a range of new value-added products which were well-received by the market.

Our outlook for the real estate industry remains very positive and we are very bullish with our range of highperformance value-added products and integrated solutions. Further new regulations like Energy Conservation Building Code (ECBC) and National Building Code (NBC) which were recently released by the government are very positive for AIS. Both these regulations are forwardlooking and very positive for the industry and consumers.

Energy, safety, acoustics, daylighting and fire protection in a building, some of which are key ingredients of ‘Green Building’ are all possible through the correct use of value-added glass and are very well addressed in these Regulations. We are very confident of strong demand for glass solutions in the near future.

Please share your organic as well as inorganic growth plans?

We are already in the midst of refurbishing and restarting of our second float glass line at Taloja with the latest technology and with the ability to produce high valueadded glass at a capex of approx Rs 300 crore. The project is as per schedule and we shall start production in Q3, FY17-18. This expansion shall give us additional capacity to produce 550 tons of float glass per day and will increase our top line by approximately 60% from FY18-19.

This expansion will also further strengthen our ability to service our customers through better product mix and also give AIS the highest grade of glass for internal value-added purposes like mirroring, hard coating, soft coating and high-level processing. Most importantly, this will have the capability to make the highest standards of automotive raw glass giving us 100% capability to make our own automotive glass.

We are also to begin work at our fifth automotive glass plant - a new greenfield project in Gujarat - mainly to service the requirements of Maruti Suzuki in Gujarat.

Our Gujarat project shall be a state-of-the-art automotive

www.asianglass.com

„We demand perfectionBohle our first choice supplier.“

Since 1947, Henry F. Teichmann, Inc. has grown and progressed on the theme: “Satisfied clients are our most important asset.”

Our employees are practical, conscientious, and experienced in every phase of the glass industry.

As a result of our clients’ successes, we have become recognized worldwide as one of the largest independent – Engineers and Contractors to the Glass Industry.

The key to the success in turnkey projects is to seamlessly integrate ...

• Engineering • Procurement Services • Construction Services • Project Management • Annealing Lehrs

Annealing Lehr Manufacturer E.W. Bowman, Inc. is now part of Henry F. Teichmann, Inc.

Bottero has relied on our quality cutting equipment for over 30 years.

All Silberschnitt® products are manufactured by Bohle on high precision machinery and with over 90 years of experience.

Excellent cutting results and long service life convince our customers worldwide – like Bottero.

Engineers and Contractors to the Glass Industry 3009 Washington Road

•

McMurray, PA 15317-3202

+1 724 941 9550

Fax: +1 724 941 3479

info@hft.com

•

USA

www.hft.com

www.bohle-group.com

SPECIAL REPORT

glass plant with the latest global technologies with the ability to manufacture all value-added glass products for automotive requirements.

AIS shall make an investment of up to Rs 500 crore in this project in two phases. In the first phase, the plant will have capacities to produce about 1 million laminated and 1.2 million tempered glass sets per annum. Our Gujarat plant will further strengthen our scale, flexibility and ability to seamlessly service our customers across India.

“We now have a level playing field to pitch our highly competitive value proposition”

Do you see Smart Cities revamp the entire glass industry going forward and will it emerge as an opportunity?

Yes, Smart Cities initiative of the government is a huge opportunity for the glass industry, especially for those who have the range of high-performance value-added glass products and integrated solutions. High-performance glass is an integral part of any building in a Smart City. These glass products are capable of huge energy savings, acoustic solutions, safe and serene building spaces as well as fire protections. Plus, glass is a ‘green’ material and is 100%

recyclable. AIS is fully-positioned to cater to this opportunity and is already working closely with various government and other agencies towards this mission.

Will you please give us a broader picture of the company’s plant wise capacity utilisation?

We are operating at 100% capacity in our float glass plant. All our automotive plants are operating at optimal capacity utilisation levels to enable us to cater to our customer requirements and maintain our market share of 78% in the automotive segment.

Will government-aided schemes for affordable housing lead to growth in AIS revenue?

All the government-aided schemes are a huge boost to the glass industry. Glass is a very friendly construction material with almost ZERO maintenance costs. AIS has a range of products for every segment of the market and we are very happy with the government’s boost for affordable housing. This will only increase use and penetration of glass in India.

Auto-pilot: driving forward Asahi India Glass (AIS) is planning to invest Rs 700 crore in the next five years. It is planning to pump in a bulk of that in its greenfield factory in Gujarat which will primarily cater to the new Maruti Suzuki plant.

“We are planning to invest Rs 500-550 crore in the new Gujarat plant,” said Ganatra.

“In phase 1, we will have a capacity of one million units of laminated glasses and 1.2 million units of tempered glass sets per annum. We expect to start production in Q4 of Fy18-19. This plant will be state of the art and fully automated and will have the capacity to produce high quality complex automotive glass and value added products. Though initially dedicated to Maruti Suzuki, as we expand we can look at supplying to others also. The tempered capacity will also cater to our western India clients like VW, M&M, Tata Motors,” he added.

76

asianglass AG 17-5

AIS has one million units of laminated capacity in its Taloja plant in Maharashtra as well.

In the second phase, the plant will reach overall capacity of about 2.4 million units of tempered glass and 2.2 million units of laminated glass and this will be completed by 2022.

“Right now we are at about 5.7 million units capacity but we plan to pull it to eight million units in the next five years,” said Ganatra.

The company is aggressively targeting three-wheelers and sub-one tonne trucks as well as city metros, and off highway vehicles.

“Our clients like M&M, John Deere and JCB are offering cabins on tractors, earth movers or backhoe loaders. They are experimenting with it and that is another opportunity,” said Ganatra.

www.asianglass.com

REFMON refractories to the Glass Industry!

Our advantages are: the shortest possible lead time working with premium grade raw materials, quality & flexibility, long service-file according to Customers’ demands, own R&D office, technical support, our products are presented in 30 countries worldwide already.

Refmon has been producing refractories since 1997.

REFMON Co. Ltd. • Hungary · H–9246 Mosonudvar • Bereki út 1. • T.: +36 96 578 578 • F.: +36 96 578 577 • info@refmon.hu

www.refmon.hu

HY.GENTM

H2

The Hy.GEN produces hydrogen by converting natural gas with Steam Methane Reforming.

N2 / H2

N.GENTM

Hy.RECTM

N2

The N.GEN separates nitrogen from air using a filtration technique called the Pressure Swing Absorption.

The Hy.REC reduces overall gas consumption by half and decreases emissions of dust and other harmful components significantly.

O.GENTM

O2

OFF GAS

N2 / H 2

The O.GEN separates oxygen from air using a filtration technique called the Pressure Swing Absorption.

COST-EFFECTIVE GAS SUPPLY

Window on

INDIA

78

Leading float glass export destinations (sq metres)

Total float glass exports (sq metres)

Total float glass imports (sq metres)

Leading float glass import sources (sq metres)

asianglass AG 17-5

www.asianglass.com

ADVERTISER FEATURE

PROJECT 4X4.0: TRIULZI CUGHER MAPPI AND IOCCO SHARE THEIR PRESENCE AT VITRUM TO SERVE INDUSTRY 4.0

www.asianglass.com

AG 17-5 asianglass

79

Leading container glass export destinations (Kg)

Leading container glass import sources (Kg)

Total container glass exports (Kg)

Total container glass imports (Kg)

Pharma glass exports to the USA (Kg)

Total IGU imports (Kg)

80

asianglass AG 17-5

www.asianglass.com

ADVERTISER FEATURE

GLASTRONiC celebrates first anniversary together with opening of the new production hall

www.asianglass.com

AG 17-5 asianglass

81

Anaylsis

Refractory Zone Steel industry debt hits refractory makers India Refractory makers, who supply critical raw material worth Rs 7,000 crore to glass, steel, power, cement companies are in a quandary, stuck with dues that amount to half of their profits, with a number of steel firms facing insolvency process under National Company Law Tribunal (NCLT). This comes on top of an average 40 per cent hike in cost of raw material almost half of which is imported from China leaving the industry struggling to meet its costs.

“We are facing the problem of unpaid dues of Rs 130-140 crore, following NCLT proceedings on some of the iron and steel companies. It is almost half the industry’s profitability. This is posing a huge challenge for our industry since steel industry consists of 70 per cent of our customer base,” Hakiumddin Ali, chairman of Indian Refractory Manufacturers’ Association (IRMA) said. NCLT has already begun processing cases involving Essar Steel, Bhushan Steel and Electrosteel Steels. Ali who represents French MNC, Imerys, is managing director of Calderys India added, “since our customers include

cement and power companies too hence we apprehend this problem may get bigger in the days ahead.”

This comes on top of an average 40 per cent hike in cost of raw material in last nine months almost half of which is imported from China.

Crackdown by Chinese authorities on polluting units in steel and other industries has drastically cut down supplies. Back home, with the steel industry in poor shape, refractory makers said they are unable to get remunerative rates for their products. Some 25 per cent of finished products in refractory sector come from China where prices have also shot up. “We are stuck with 3 to 4-year long-term contracts with our customers who typically pay us per tonne of steel produced,” Ali added. The industry is dominated by 10-12 large layers like IFGL Refractories, Bharat Refractories, Vesuvius, besides Calderys. It is now operating at 60 per cent of capacity or at 1.2 million tonne (mt) out of its total capacity of 2 mt.

“The sector is small but critical and its needs have to be addressed keeping this in mind,”

Sameer Nagpal, CEO of Bharat Refractories said.

Nagpal who heads Advocacy at IRMA said it is only recently that the industry has realized the need for raising its voice to be heard by policy makers. Refractory spends usually account for 2-3 per cent of steel industry expenses but without it the latter cannot operate.

Refractory products are vital element in all high-temperature processes such as making metals, glass and ceramics, production of cement and petrochemical processes. India currently imports 40 per cent of its refractory raw material including graphite, fused and calcined alumina and high-grade clays from China in addition to magnesite, a critical input for refractory bricks.

“Domestic steel output can be increased by 10-15 per cent through use of good quality refractory material. We would request the steel ministry to formulate a National Refractory Policy within the National Steel Policy to provide a road map for the industry and classify it as a critical component,” Nagpal said.

Pollution crackdown causes supply headaches India/China China’s crackdown on polluting factories has hit India’s imports of refractory material, with the steel, cement, aluminium and glass industries facing the heat.

The new environment tax policy in China has forced raw material suppliers there to scale down production, which has affected even the availability of finished goods. India’s refractory industry sources almost half of its raw material from China and is now bracing for a shortage that could adversely impact the construction of railway tracks, buildings, automobiles, trains and ships and even items like cutlery, surgical equipment and reading glasses.

Refractory products are vital element in all high-temperature processes such as making metals, glass and ceramics, production of cement and petrochemical processes. India currently imports refractory raw material including graphite, fused and calcined alumina and high-grade clays from China in addition to magnesite, a critical input for refractory bricks.

Pollution control measures in China have intensified since the beginning of May, with

82

asianglass AG 17-5

Beijing shutting down most bauxite mines in Shanxi and Guizhou provinces. Calcining and processing plants in Shanxi and Tianjin have also been impacted.

This has led to a slump in the import of raw material from China, leaving domestic refractory makers struggling to meet demand from key user industries such as steel, glass, cement and aluminium. The steel industry accounts about 75% of consumption, with cement (12%), non-ferrous (6%) petrochemicals (4-5%) and glass (3%) making up the remainder.

“It is a wake-up call for the refractory industry in India,” said Hakimuddin Ali, chairman of Indian Refractory Makers Association. “We reviewed the crisis and made an assessment of the situation likely to emerge in the near future due to our over-dependence on China.

For the first time, we have also initiated a dialogue with the steel and mines ministries to explore and develop alternative sources of raw materials and mines in India.”

The domestic refractory industry’s capacity

utilisation is about 60%. However, about a fifth of finished refractory products are imported from China, accounting for Rs 1,200-1,300 crore of the Rs 6,000 crore refractory industry.

The association is working to develop other raw material sources. It is engaging with the government and scouting for alternative supplies from Brazil and Europe. It is also in talks with IIT (BHU), Varanasi for setting up a refractory centre of excellence at the institute to develop alternative products and raw material, said Ali, who is managing director of Calderys India, an arm of French MNC Imerys and one of the largest domestic refractory companies.

The association has urged the government to rationalise the duty structure because the present system makes imported finished products cheaper than those made in India with raw material sourced from overseas. It wants incentives to boost domestic processing, developing more applications to ensure a bigger market for local refractory makers and encourage local manufacturing of some raw materials as the Make in India initiative.

www.asianglass.com

RHI GLASS â&#x20AC;&#x201C; Reliable partner of the glass industry An ever increasing number of glass manufacturers trust in the expertise, experience and service of RHI GLASS in order to meet the increasing requirements by the global market.

Based on a comprehensive product portfolio and intensive R&D activities, RHI GLASS offers n high-grade refractory products and solutions n dedicated services alongside the furnace campaign n comprehensive packages from one source

EXCELLENCE IN REFRACTORIES

www.rhi-ag.com

In the next issue...

AG17-6 Features include

• • • •

Investing in Cambodia Drinking in the sun: NE Asia beverage markets China light: ultrathin glass prospects Thailand: a country in focus

ss.com w.asiangla nline at ww o e b ri sc b su own copy?

Is this your

Is this

your o wn

copy? subscr ibe on line at www.a siangla ss.com

F R EE IN SIDE! AG17-6

YOUR 2018 YEARPLANN ER!

AG17-6

T S R R E Z A A L I B L L I B S U A C TR THAILAND IN FO THAI L LAZER AN S D IN F

OCUS

Inside:

e nt s ia investm • Ca m b o d aging • rage pack e v • N E A Ca m b o d i a i e b n a ia in h C nv s in ian be • N E As thin ve ra g e e s t m e n t s • U ltra H C E T S • U l t ra p a c ka g i n g ZAK GLAS chP, mLUucSh!mnoerew! thin in u s , views China and m is s ly a , n a a , n s alysis news, view DIA a

Inside :

Se e u s at

PLUS!

N EW D E L H

I, I N

nd muc

h, muc

h more

!

PLUS: news, views, analysis and much, much more!

CAN YOU AFFORD TO MISS OUT?

CONTACT US TO SUBSCRIBE TODAY, OR USE THE FORM IN THIS ISSUE:

T: + 44 (0) 208 123 0839 E: enquiries@asianglass.com

www.asianglass.com

com sianglass. at www.a ibe online cr bs su py? ur own co Is this yo

AG17-4

M AG A Z I

Print and digital: the complete package Asian Glass is the only publication in the industry that offers the reader the full range of communication platforms to access the information contained in every issue. That means for advertisers and marketers, the magazine provides myriad opportunities for you to tailor your message accordingly. In addition to the print copies (5,000 on average, with bonus exhibition distributions), Asian Glass offers a complete, wholly owned digital solution too…at no extra cost!

N E:

S S A L G F L GU 17E Online…

20 U , BA I A

L OFFICIA

DU

Insidea: n flat glass • • • •

Eg ypti ghreb on in Ma Innovati trade ss la g lass Chinese tainer g more! sian con ch, much South A s and mu

PLUS!

si

ws, analy

news, vie

As soon as the printed version of Asian Glass is on the presses, we immediately release an e-mail link to up to 8,000 companies per issue.

This is done on rotation, so that not everyone sees every issue, and as such creates that “must have” mentality that readers of Asian Glass possess in that they will be in constant contact for any copies they miss. By accessing the link, those in receipt can see the latest issue using full pageturning technology immediately, whilst waiting for the postal copy to arrive.

In-App… Being a pioneer of course, it’s not surprising to learn that Asian Glass was the first glass magazine to have a fully functioning App in the Apple and Android stores, which is FREE to download. Once the App is installed, readers receive push notifications when an issue is published, and can download it free of charge.

Your benefits…

By advertising with the printed version of Asian Glass, you not only obtain excellent profile in the industry’s most revered print publication, distributed to 5,000 companies on average per issue, you also immediately benefit from:

■ An advert on the Asian Glass website ■ ■ Your advert in the on-line, page-turning issue of the magazine ■ ■ Your advert in the App version ■

…..all at NO EXTRA COST TO YOU! No other magazine can offer such a complete package.

Of course, it does not end there! For supplementary charges, you can upgrade your App-based advert into a fully-functioning, streaming video! This could be a corporate presentation, interview or product demonstration. For more details, contact the team to see how they can enhance your in-App experience. A wide range of other options also exist within the App, so contact us today to discuss what we can do to make your marketing message even more pronounced than before.

www.asianglass.com

Asian Glass Editorial & Distribution Schedule

A wealth of exciting opportunities… ✷ ON-PAGE: full and half display advertising

✷ DIGITAL: full and half display advertising…and more! ✷ DUMMY COVERS: the ultimate, high impact creative… take ownership of the issue ✷ BELLY-WRAPS: high profile, hard-hitting message conveyance

AG17-5

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Iranian processed glass markets Cullet: an Asian recycling survey Build it big: facades and coatings for Indonesia China: Beverage bottle markets and makers SPECIAL FOCUS: FLAT GLASS INSPECTION SEE US AT: ZAK Glasstech; Vitrum; Glasstech Asia SEE US AT: GlassBuild America; ASEAN Federation of Glass Manufacturers, Glasstech Asia ■ ■ ■ ■ ■

AG17-6

FREE I NSIDE The AG Y e a r p la n

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Investing in Cambodia Drinking in the sun: NE Asia beverage markets China light: ultrathin glass prospects Thailand: a country in focus SPECIAL FOCUS: GLASS FREIGHT AND LOGISTICS SEE US AT: ZAK Glasstech, Baku Glass 2017 FREE WITH THIS ISSUE - THE 2018 YEARPLANNER! ■ ■ ■ ■ ■

ner!

AG18-1

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Chinese float: a new status for 2018 Greenfield containers: a viable alternative?

Automotive replacment: the opportunity The pharma glass battleground SEE US AT: Glassman Asia, Fensterbau Frontale, Eurasia Glass ■ ■ ■ ■

AG18-2

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Coatings markets in the Middle East Container glass production costs: p.1 Asian glassware: making the grade Tempered glass demand/supply for China SEE US AT: China Glass; SNEC 2018 ■ ■ ■ ■

AG18-3

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Packaging trends in China Safety glass growth in Bangladesh BIPV markets in ASEAN Filling the void: bottle options for Asia SEE US AT: Mir Stekla, Glasstech Asia, Glass South America, Intersolar, Glasspack '18 ■ ■ ■ ■

AG18-4

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Maghreb container markets Indian glass re-balances China: a mid year review Curtain wall strategies for AsiaSPECIAL FOCUS: CONSEE US AT: AFGM, Glassbuild America, Lanka Glass 2018, Big 5 Egypt ■ ■ ■ ■

AG18-5

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Container glass production costs: p.2 Australian beverage packaging Russian flat reality: import replacement China: an overcapacity solution SEE US AT: Glasstec ■ ■ ■ ■

AG18-6

FREE IN SIDE The AG Y e a r p la n n

●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●

Packaging: aiming for diversity er!

Turkey: a bridge to new markets Solar glass markets from China IGU in ASEAN: growth and options SEE US AT: Architectural Glass Ukraine; Baku Glass 2018; Zak Glasstech FREE WITH THIS ISSUE - THE 2019 YEARPLANNER! ■ ■ ■ ■

Ma xi mise you r exposu re, ma xi mise you r bu dget… find out how by contacting: Paul Russell, Tel: +44 (0) 208 638 0619 Email: prussell@asianglass.com

Valerie Adamson, Tel: + 44 (0) 208 133 5273 Email: vadamson@asianglass.com

www.asianglasss.com

www.asianglass.com

You‘re not up to speed if you don‘t have the full picture!

And only Tiama can give it to you.

Our complete monitoring solutions at both the hot and cold ends mean complete control. We believe that knowledge is power and this translates into real-time quality control that results in improved efficiency and productivity, not to mention the money you’ll save.

Push your production process into high gear, with Tiama.

www.growth-group.com

Not just INformation – ALLformation: www.tiama.com

Intelligence

Monitoring

Traceability

Inspection

Support

Real-time Process & Quality Controls