Asian Glass - AG16-1 Edition by Bowhead Media Ltd

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AG16-1

GUJARAT:

CONTAINING THE EXCITEMENT

Se e u s at

FENSTERBAU

INDIA, 25-27

FEBRUARY

ISTANBUL G LASS & EXPO ,9

Inside:

-12 MARCH

Cost control: Solar in focus Turkey in the spotlight BIPV: issues and challenges Chinese bricks: building momentum

PLUS!

news, views, analysis and much, much more!

Innovative laser processing for glass The advanced laser technology by CERION provides exciting opportunities for the processing of all kinds of flat glass. The innovative vertical laser machine c-vertica is particularly space-saving and efficient – an innovation for the design of glass using surface and sub-surface engraving!

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• Ideal for all types of glass • Replacement of sandblasting by clean laser technology • High definition surface + sub-surface laser engraving of art and photography • Removing and structuring of paints and mirror coated glass • Amazing 3-dimensional designs inside the glass • Even finest lines can easily be processed • Glass surfaces remain non-porous and easy to clean • Simple man an optional automatic operation with costs as low as 3$ per hour • Digital processing of glass without time consuming intermediate steps • Zero waste byproducts – no ink, no solvents, no chemicals • Easy scratch-free handling of glass plates • Space-saving, vertical orientation allows for small manufacturing footprint area

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CO N TA I NE R GLA S S • C O S M E T IC G L ASS • FI B R E G LA SS • FLAT G LA SS • FLOAT G L A S S LI G H TI NG • P HAR M A C E U T IC A L G L A S S • SOD I U M- SI LI C ATE G LA SS • TA B LEWA R E • T U BIN G

Contents: AG 16-1

m e t s y s g n i r e b m u A n ew n Is this your own copy?

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As we turn our attention to the challenges of the year ahead, and the industry ignores the rollercoaster financial market start to the year and concentrates on the fundamentals, we are pleased to start introducing some subtle changes and developments to your magazine as we enter our 16th year of serving the global glass industry.

AG16-1

GUJAR AT:E EXCITEMENT

One of the most obvious, starting with the next issue, will also be one of the most simple: we are changing the numbering system on the magazine.

CONTAI NI NG TH

See us at

FENSTERBAU INDIA, 25-27 ISTANBUL GLASS & EXPO,

PLUS!

news, views, analysis and

l & Distribution Sch

A wealth of exciting oppor

9-12 MARCH

Inside:

focus Cost control: Solar in Turkey in the spotlight es BIPV: issues and challeng momentum Chinese bricks: building

Asian Glass Editoria

FEBRUARY

✷ ON-PAGE: full and

half display advert

edule

tunities…

ising ✷ DIGITAL: full and half display advert ising…and more! ✷ DUMMY COVERS: the ultimate, high impact creative… take ownership of ✷ BELLY-WRAPS: the issue high profile, hard-h itting message convey ance

December/January

●●●●●●●●

2016

■ Russian flat glass: in from the cold? ■ Inspection developm ents for Asian glass ■ Beverage markets for NE Asia ■ Evolutions in container glass decoratio n SEE US AT: Fensterba u India, PV Japan FREE WITH THIS ISSUE - THE 2016 YEARPLA NNER!

AG16-1

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much, much more!

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■ Gujarat glass focus ■ Cost control: a fuel focus ■ Container trade: Asia's PET ■ Turkey: a country in focus ■ SPECIAL SUPPLEM

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AG16-2

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AG16-5

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ENT: Africa: an opportun ity for Asia? SEE US AT: China Glass; SNEC China; Glass & Aluminium Saudi Arabia; Windorex Oman

AG16-3

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■ Asian float profitabi lity: part 1 ■ All change in Firzobad? ■ Asian pharmac eutical packaging ■ Russia: food packaging developm ents ■ SPECIAL SUPPLEM ●●●●●●●●

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guide

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East g review: part 1 SPECIAL SUPPLEM ENT: Glass coatings SEE US AT: GlassBuil d America; ASEAN Federation of Glass Manufacturers ■

AG16-6

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■ The ultrathin revolution ■ SE Asian packagin g review: ■ Lighting glass in India ■ ASEAN solar ●●●●●●●●

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part 2

glass demand SPECIAL SUPPLEM ENT: Glass freight and logistics SEE US AT: ZAK Glasstech , Baku Glass 2017 ■

FREE INSIDE

●●●●●

ENT: Mould making technology SEE US AT: Glasstech Asia; Mir Stekla; Glass South America; ICCG 11

●●●●●●●●

ENT: Asian glass sourcing

■ ASEAN glass fibre expansions ■ Where next for Asian IGU? ■ Coatings and façades in the Middle ■ SE Asian packagin

fight

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SEE US AT: Glasstec

ENT: Fenestration technology See Us At: PV Japan; Istanbul Glass and Window; Fensterbau India; Glass and Aluminium Middle East

■ Iran: open for business? ■ Tableware: the Asian top 20 ■ Egyptian containe r glass ■ Indonesian glass processors ■ SPECIAL SUPPLEM

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■ Asian float profitabi lity: part 2 ■ China: processe d glass market developm ent ■ High rise in India: problems and issues ■ Vietnam: too fast, too soon? ■ SPECIAL SUPPLEM

The 2017 Yearplan ner!

Ma xi mise you r expo su re, ma xi mise you r bu dget…

find out how by contac ting: Paul Russell, Tel: +44 (0) 208 638 0619 Email: prussell@asian glass.com Valerie Adamson, Tel: + 44 (0) 208 133 5273 Email: vadamson@a sianglass.com

www.asianglasss.co

Regulars 4 Welcome

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●●●●

Since we started back in 2001, we have always entitled our issues by “month”. However, from the first issue of 2016 onwards (which will be published in early February), we are moving towards a more harmonised system of year and number. For example, the first of 2016, will be called “AG16-1” through to “AG16-6” at the end of next year. It will then move each year to be “AG17-1” etc. There is of course no difference in the quantity of issues of course, but we believe that the new system will make it easier to track down articles compared to the old-fashioned “monthly” system.

See us…where?!

The driving issue for India.

6 Headline News

Openings, closures and industry moves from across Asia.

16 Global View

Our eye on the international arena.

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

22 Batch

Fensterbau India 25-27 Februry

Istanbul Glass & EXPO

Raw material news and views.

9-12 March

24 Comment & Analysis

We look forward to seeing our readers and advertisers at the show!

US recycling policy. 2

asianglass AG 16-1

www.asianglass.com

www.asianglass.com Features 26 Gujarat in focus: part 1

Yogender Malik provides the first of our two part focus on India’s most exciting glass manufacturing province… Gujarat…

Looking forward AFGM TBA Architectural Glass Kiev 2016, Kiev, Ukraine

19-21 Jan

Glass & Aluminium Middle East, Cairo, Egypt

18-20 Feb

AG looks at how, despite regional unrest, Turkey’s strengthening economy is putting the glass industry on the front foot…

Fensterbau Indian 2015, Mumbai , India

25-27 Feb

Baku Glass, Baku, Azerbaijan

1-2 Mar

38 Beverage packaging: standing out from the crowd

PV Japan, Tokyo, Japan

2-4 Mar

32 Talking Turkey

AG hears how beverage packagers are looking at alternatives to glass in a bid to be more cost-effective at standing out from the crowd.

42 Chinese flat glass: bubbling under

Istanbul Glass & Window Expo, Istanbul, Turkey 9-12 Mar China Glass, Shanghai, China

11-14 Apr

Glass & Aluminium Saudi Arabia Riyadh, Saudi Arabia 30 Apr - 3 May Glassman Middle East, Abu Dhabi, UAE

10-11 May

Windoorex, Muscat, Oman

15-17 May

SNEC, Shanghai, China

24-26 May

Tomas Lenkimas and Algirdas Mockus of JSC Glassbel Baltic and Andrius Stonkus of Applied Research Institute for Prospective Technologies, discuss how evolving PV technology could yet make BIPV a more viable option for glass installers.

Mir Stekla, Moscow, Russia

6-9 Jun

Glass South America, Sao Paulo, Brazil

7-9 Jun

ICCG 11, Braunscheweig, Germany

12-15 Jun

52 Power to the people

Intersolar Eurpoe, Munich, Germany June Glasstec, Duesseldorf, Germany

22-24 Jun 19-22 Sept

Glassbuild America, Las Vegas, Nevada

19-21 Oct

ZAK Glasstech, Mumbai, India

2-4 Dec

Cuba Glass, La Habana, Cuba

6-7 Dec

AG looks at how China’s flat glass industry developed during 2015, and the major developments planned for the coming year.

44 BIPV: issues and outlooks

James Gulnick discusses how the increased use of solar power at glass plants could be one solution to the rollercoaster of traditional fuel costs.

56 Displaying promise

A special report into China’s display glass sector.

Glasstech Asia TBA ASEAN Federation of GM

TBA

www.asianglass.com 26

Anaylsis 58 In Focus

Michele Nestor discusses the issues facing container glass recycling.

60 The China Files

Our new regular statistical focus on China’s glass industry.

62 Refractory Zone

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

News and views from the refractory sector. www.asianglass.com

AG 16-1 asianglass

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Welcome

CONTACT DETAILS

AG16-1

SEE US AT:

EDITORIAL

GUJAR AT:

CONTAI NI NG TH

E EXCITEMENT

ndia’s glass manufacturers have been under some pressure from their Chinese counterparts Se e us at in recent years, and yet it appears that they still Inside: are not reacting quickly enough to maximize the Cost control: Sola r in focus Turkey in the spot light opportunities that present themselves. Although BIPV: issues and challenges Chinese bricks: build ing momentum elsewhere in this issue we will see that Gujarat has PLUS! news, views, ana lysis and much, muc – predictably – emerged as the powerhouse that will h more! drive the country’s glass development in the next 1015 years, and that investment is still continuing apace in areas in the south (see the story on Tamil Nadu), chances for securing domestic market share are being lost. ISTANBU L

FENSTE

GLASS

& EXPO , 9-12 MA

RBAU IND

IA, 25-27

RCH

FEBRUAR Y

Publishing Director Andy Skillen Email: askillen@asianglass.com Direct line: + 44 (0) 208 123 0196 Fax: + 44 (0) 207 183 7196

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

For example, AG has learned this month that one of the country’s primary automotive manufacturers is turning its attention eastwards to secure a consistent supply of glass for its entire vehicle range moving forward.

Production and design Tim Mitchell Email: tim@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

Mahindra & Mahindra (M&M) is in talks with the China-based Beoson to buy automotive glass for its vehicles. Dongguan Benson Automobile Glass Co Ltd (Beoson) is a modern auto glass manufacturer located in Dongguan city, Guangdong Province in China. Arthur Gray, deputy manager, Beoson, said that M&M has given glass samples to them to analyse the technical parameters to be incorporated in the required product. Beoson has been evaluating the samples received from Mahindra and is preparing prototype glasses for the Indian manufacturer. Once this process is through, Beoson will start negotiating with M&M to bag a major order. Gray, however, did not disclose the details of the specific models for which M&M has provided the glass samples for evaluation. Currently Beoson supplies its automotive glass to India for aftermarket purposes including for the Mahindra Bolero in India. Its products are also suitable for the Tata Ace, Tata Sumo, Hyundai i10 and i20 in the Indian aftermarket. The Chinese company mainly produces glass for laminated windshields, tempered sidelites and deep curvature tempered backlites and its portfolio comprises over 35,000 models. Its manufacturing facility in China produces around 150,000 pieces per year. Beoson products are exported to more than 80 countries including North America, South America, Europe, Australia, Africa and South East Asia.

RESEARCH

So how is it the China manages to spot these opportunities and maximize them, when Indian companies – with all the advantages of location and culture in their favour – simply seem to miss them? Of course, one contract does not indicate a wholesale industry move, but it is from such relatively minor beginnings that the shape of demand and supply can completely shift. After all, once a decision is made and the genie is out of the bottle, it is impossible to turn back time. We wonder how many more companies will fall under the spell of China’s auto glass suppliers and what those located in India, both large and small, will do to head off the challenge.

Happy Reading!

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

HEAD OFFICE Andy Skillen Publishing Director

Got a general enquiry? use enquiries@asianglass.com 4

asianglass AG 16-1

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

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HEADLINE NEWS ASIA Ferro moves for greater presence Turkey Ferro Corporation has announced that it has purchased 100% of the equity of privately held Istanbul-based Ferer Dis Ticaret Ve Kimyasallar Anonim Sirketi A.S. for approximately $9.0 million in cash, on a cashfree and debt-free basis, subject to working capital and other adjustments. The transaction will be funded with excess cash and a draw on the Company’s revolving credit facility. The acquisition of Ferer is the third step Ferro has taken in the past 18 months to strengthen its position in the fast-growing Turkey market. In July 2014, Ferro acquired assets of a reseller of Ferro porcelain enamel products in Turkey, providing a commercial base for direct marketing and sales opportunities. In November 2015, Ferro completed the

acquisition of Egypt-based tile coatings manufacturer Al Salomi for Frit and Glazes, adding production capacity to meet current and future demand in Turkey as well as other markets in the Middle East and North Africa. Now, the Ferer acquisition brings Ferro an operational presence in Turkey focused on the glass market. Ferer is a distributor in Turkey of Ferro color and glass coating products and also provides customized, blended products and technical support primarily for the glass industry. Ferer’s primary focus is on servicing manufacturers of automotive, flat and container glasses as well as non-tile ceramic applications, including dinnerware, stoneware and porcelain. Ferer also distributes pigments into the

paint and plastics industries. Among other activities, Ferer provides local operational capabilities to produce and distribute customized paste and powder products from intermediates supplied by Ferro. Ferer recently opened a new blending, mixing and pasting plant that is expected to significantly expand production and distribution capabilities. Ferro estimates that in 2016 the acquisition will generate incremental sales of approximately $3 million and incremental adjusted EBITDA of approximately $2.0 million. Commenting on the transaction, Peter Thomas, Chairman, President and CEO of Ferro Corporation, said, “The acquisition of Ferer advances our strategy to invest in higher-

growth opportunities and to expand sales in this fast-growing region. The acquisition adds to our existing presence in Turkey and enables us to serve our customers more directly and effectively. The new Ferer plant expands our capabilities to produce customized products and color solutions and will serve as a platform to build a broader marketing and customer support infrastructure.” Mr. Thomas concluded, “The Ferer management team have been valued partners of Ferro over the past 17 years. They have built a company that is well known and respected in the glass market in Turkey. We look forward to working with the Ferer team to build on that foundation and to accelerate our growth in the region.”

Flat glass industry travails continue India Indian flat glass production and sales are struggling despite an uptake in domestic constructions activities in the first nine months of 2015. Cumulative sales of domestically produced float glass in the first six months ( April to Sep 2015) of Indian financial year 2015-16 at an average of 3850 TPD registered a decline of 3.77 % as compared to the corresponding six months period of 2014-15, when total domestically produced float glass sales in the country stood at 3995 TPD. The negative growth rate in float glass sales is as a result of declining consumption in both, construction and automotive sub-segments. Though, general economic conditions and macroeconomic indicators are showing positive trends, but for our industry the declining numbers indicate that the growth in construction

asianglass AG 16-1

and automotive segments is still far from satisfactory. Indian flat glass industry, which exhibited growth rates of more than 10 % per year ( barring 2008 and 2009) from 2002- 12 registered a remarkable growth, but things started to turn at the start of 2013. In 2012, the domestic float output stood at 4000 TPD. While it declined to 3508 TPD during 201314 due to slow growth in the domestic economy. Saint Gobain India with an average sales of 1855 TPD during the six month period has the highest market share at 48.18 % of the total sales. Asahi India with a 14.29 % market share occupied the second position. Demand and prices of float glass in Indian market, both has been under constant pressure for more than an year now. A major reason for pressure on prices

Installed Capacity and sales of Float Glass in India (April- Sep 2015) Producer

Installed Capacity (TPD)

Sales in Domestic Market ( TPD)

Saint Gobain India

2750

1855

Asahi India Glass

700

550

HNG Float Glass

600

540

Gujarat Guardian Limited

550

535

Gold Plus Float Glass

460

370

5060 TPD

3850 TPD

Total

has been availability of imported float glass at cheaper prices from China and the Middle East countries. After imposition of anti-dumping duty ( Duties were imposed in 2014 on UAE, Saudi Arabia, Pakistan and China) on float glass imports from these countries, float producers

from Iran have replaced these exporters. However, recent fluctuations in dollar rupee exchange rate has put some curbs on exports of float glass to India as an unfavorable exchange rates have made exports of glass to India a wafer thin margin business.

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Bottle-maker hits the EU big-time

NEWS IN BRIEF

Russia Steklarna Hrastnik has joined ELITE, the London Stock Exchange Group’s international programme for ambitious high growth businesses. The ELITE programme currently comprises over 320 companies assessed to have a high growth potential. For the duration of the programme, the core management of Steklarna Hrastnik will attend education seminars, but the programme will also serve as a launching pad for networking, obtaining new sources of financing and broadening the recognition of our glassworks. Steklarna Hrastnik was included in the ELITE group of European companies thanks to its business results and sustainable principles of operation that enable the production of technically perfect, premium products from some of the world’s purest glass. The glassworks expects this year’s

sales revenues to reach EUR 54.8 million, which is 16% more than last year, and the profit before tax to amount to EUR 7.1 million, which is a 62% increase compared to last year. Its customers include established global companies, brand owners, distributors and retail groups. When it comes to the global market of luxury bottles, Steklarna Hrastnik is seen as the best choice: made from some of the purest glass, its bottles are technically perfect and contribute to the added value of the end product. In the coming years, they are planning to increase their growth in this segment as well as to enter the segment of perfume and miniature bottles and cosmetic packaging in 2016. Andrej Boji, General Manager of Steklarna Hrastnik, said on this occasion: "We are proud to have joined an elite group of companies. I see the ELITE

programme as an opportunity and a challenge for the continued growth of our glassworks. We expect the programme to act as our partner on this journey, since it enables companies to access a variety of financing opportunities and sources. In addition, the programme also improves the recognition of companies, promotes relations and business opportunities with potential investors and supports the exchange of best practices." 20 new companies from all parts of Europe were accepted into the ELITE programme in December. Since its introduction in 2012, the ELITE programme has been joined by over 320 companies employing more than 120,000 people across Europe and operating in various fields, such as food, production and services. The Slovenian company Halcom joined the programme last year.

Bharat completes furnace repair India Gujarat, India based sheet glass producer, Bharat Glass Tubes Limited has completed furnace repairing and restructuring work at its Ankleshwar based plant in the month of November. Furnace was officially fired in the month of October and commercial production commenced in the last week of November. Post restructuring and repair, company’s existing 60 TPD sheet glass manufacturing has been expanded to 70 TPD. In addition to clear sheet glass, another manufacturing facility of 70 TPD to produce figured glass has also been set up at this plant. According to Bharat Glass Tubes, “A modified colburn technique has been deployed in the cold repairing and

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restructuring work at our plant. This will enable us to produce higher quality of finished products (both sheet and figured glass).” Bharat Glass & Tubes (earlier known as Dwarkadheesh Sheet Glass) was earlier a part of India’s largest sheet glass producer, Haryana Sheet Glass, which had a cumulative capacity of 300 TPD of sheet and figured glass. However, rapid capacity expansion by float glass producers around the turn of century made sheet glass units redundant for a long time. Bharat Glass’s parent unit was forced to shut its manufacturing operations at two of its units (Haryana and later in 2011 in Nasik). Company’s Nasik based unit, which had an installed capacity

of 120 TPD of figured glass from two furnaces was closed down in 2011. Out of the two furnaces, one was sold to a new sheet glass producer based in state of Uttar Pradesh. The second furnace after repairing and restructuring has now been deployed at Ankleshwar plant to meet steadily increasing demand of figured glass in the state of neighboring regions.

News, view and analysis

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Hollow glass manufacturers from Iran, Saudi Arabia and other countries of the lucrative MENA region are all set for the forthcoming Glassman Middle East show. The free to attend exhibition and conference will be held in Abu Dhabi, UAE on May 10th and 11th May and will bring together suppliers and manufacturers from across the industry’s entire supply chain. Abu Dhabi offers exhibitors access to the lucrative MENA region, situated within easy reach of the growing and dynamic markets of Saudi Arabia, Iran, Oman, India, Africa, and of course the UAE itself.Companies that have booked stands so far include Pneumofore, F.I.C., Horn, Ilis and Reckmann. Several glass manufacturers and supplier companies have already expressed an interest in speaking at the conference, where they will discuss the latest opportunities and challenges facing the hollow glassmaking industry. The Middle East is a hub of glassmaking activity, and is conveniently located to benefit from lower energy costs. In addition, changing legislation means it is more convenient for countries such as Iran to do trade with countries in the West. This year, the Glassman event will run alongside AluSolutions, an international exhibition and conference addressing the challenges and opportunities of sustainable aluminium use. This will benefit both exhibitors and visitors that have a crossover between both the glass and aluminium industries.

AG 16-1 asianglass

News

SAG races ahead with projects C.R. Laurence acquires GGH Saudi Arabia Saudi American Glass [SAG], a subsidiary of Dubai Investments PJSC and a leading processor of architectural highperformance flat glass in the Middle East, has announced completion of projects valued over SR 30 million across the Kingdom of Saudi Arabia [KSA]. The projects executed include Amoudi Tower in Jeddah, Intelligence Department building in Downtown Jeddah, Al Othaim Mall, Zinji Juffair Tower in Bahrain and Waseel Hills Compound in Riyadh. The company has also completed the supply of goldcoated glass with Islamic screen printed design for the General Audit Bureau HQ in Riyadh, besides providing its K-Lite high performance glass for university projects in Dammam, Najran, Jizan, Madinah, Hail, Tabuk and Qassim. Over 60,000 square metres of SAG’s K-Lite High Performance glass in various colours are being used in these projects. The K-Lite glass offers high strength resistance against stress and wind flex, and also offers protection in the case of breakage. The company has also won the contract to provide various

Australia types of glasses for KAP 3 Project – involving construction of security buildings across KSA for the Ministry of Interior, Movenpick Hotel in Riyadh, AKH Tower in Al Khobar, Dr Faqeeh Hospital in Riyadh and a new compound for Jaddoue Group in Riyadh. Rizwanullah Khan, Executive President of SAG, said: “Saudi American Glass enjoys strategic leadership in architectural flat glass sector in Saudi Arabia and the impressive project portfolio on hand is a testimony of the company’s growing market domination, thanks to its reputation for quality glass products. The company is associated with iconic developments in Saudi Arabia, which is a key growth market.” Meanwhile, SAG has also announced an agreement with the UK-based Smartglass International to become its exclusive Middle East partner for privacy switchable and electronically tintable glasses. The technology allows instant privacy at the flick of a switch. Smartglass is currently enhancing environments in more than 33 countries across six continents around the globe.

C.R. Laurence Australia Pty, Ltd. (CRL), a leading supplier to the glazing, architectural, railing, construction, industrial, and automotive industries, is pleased to announce the acquisition of the operating assets of Neil Bennett and Company Pty, Ltd., known as “Glass and Glazing Hardware” (GGH), in Canning Vale, Western Australia. In making the announcement, David Bremner, the Managing Director of C.R. Laurence Pty, Ltd. said, “GGH was founded in 1983 by Neil Bennett and has grown to be a well-known supplier to the glazing industry throughout Australia. Neil built a tremendous company and we’ve been trading partners for many years. We are very proud that GGH is now a part of the CRL family.” GGH is located in a prime industrial area of Canning Vale. With the acquisition, CRL plans to immediately bring the two companies’ combined product lines to the Australian market. Bremner also stated, “CRL is very proud that all the employees of GGH will be staying on, including Mick Mahony, who will act as Operations Manager. Neil Bennett will also stay on during the transition period. We are very excited about this acquisition and

the respective expansion of our Australian operations.” Lloyd Talbert, President of CRL in the United States, comments, “This new acquisition continues our endeavors to become a fullservice provider to the glazing industry throughout Australia. We first entered the Australian market in 2006 with the acquisition of CRL North Australia Pty, Ltd. in Sydney, and then improved our position in 2009 with the acquisition of Australian Glass Tools in Melbourne. With this latest expansion, we’ve established a firm foothold in the important Western Australian market.” As part of the CRL transition, the new Canning Vale facility will feature state-of-the-art shipping equipment and computer systems for quick delivery to customers. Customers will also be able to pick up their orders on-site, and visit the new showroom. Some of CRL’s newest products will be on display, including full-size working models of CRL’s architectural hardware products. “I would sincerely like to thank all of our customers and suppliers for 33 years of support,” said Neil Bennett. “The GGH team looks forward to continuing to offer highquality products and service under the CRL banner.”

MEG secures Glass Manufacturing shares Egypt HC Securities & Investment) has announced it has successfully acted as the exclusive financial advisor to MEG Misr for Glass S.A.E., a fully owned subsidiary of Middle East Glass Manufacturing Company (“MEG”) (MEGM. CA) on the acquisition of 100% of the share capital of Glass Manufacturing Company S.A.E.; a company specialized in the manufacturing and marketing of container glass for the food and beverage industry inside and outside Egypt. The transaction value is 735 Million Egyptian Pounds. Middle East Glass Manufacturing Company is a diversified packaging group comprising Middle East Glass, a 117 tons per annum one-furnace

asianglass AG 16-1

container glass manufacturer, and Wadi Glass, a two-furnace container glass manufacturer, both Middle East Glass and Wadi Glass have a combined production capacity of 237 thousand tons per annum. In addition, MEG also has a 60% owned subsidiary, Medco Plast Company, the largest plastic bottles (PET) converter in the Egyptian market. Misr Glass Manufacturing Company is the second largest container glass manufacturer in Egypt with three furnaces having a total production capacity of 141 thousand tons, producing glass containers in flint, amber and green colors catering for both local and export markets. The acquisition of Misr Glass Manufacturing Company will allow

Middle East Glass to further expand its production capacity, in order to continue servicing its growing local customers’ demand as well as increase its footprint and competitive position in the export markets. HC Securities & Investment previously advised Middle East Glass on the acquisition of 60% of Medco Plast Company (2010), the acquisition of 100% of Wadi Glass (2014) and the private placement of a 36% stake to Gulf Capital, one of the leading private equity firms in the MENA region (2014). Noha El Ghazaly, Executive Director - Investment Banking at HC Securities and Investment, commented on the transaction “We are proud to continue supporting MEG Group across

several transactions contributing to achieving their strategic goals and participating in their value creation process”.

NEWS IN BRIEF Turkey’s Tepe Turkmen Insaat ve Ticaret Anonim Sirketi will build a glass factory in Turkmenistan, the Turkmen government said in a message in January. The company will also build a plant producing quartz sand used as the main raw material for glass production in the Derweze district of Turkmenistan’s Akhal province.

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Smart cities to drive glass consumption? India The small and medium glass industries have urged the government to increase the use of glass through various initiatives such as glass bottles, glass containers and glass buildings. The industry said the idea would not only help in the 'Swachh Bharat Abhiyan' but would also support government’s 'Smart Cities' plan. The All India Glass Manufacturer’s Federation recently organised a meeting of the executive committee in Jaipur. Gajendra Singh, Minister of Industry for Rajasthan also showed up for the meeting centred on the apt and eco-friendly usage and production of glass to promote “Swachh Bharat Abhiyan”. An interactive session was organised with the Minister to discuss the possible usage of glass containers as responsible and safe packaging for clean India campaign and use of glass as eco-friendly building material

for smart cities. Appreciating the advanced production techniques used by the Industry to manufacture light weight glass bottles and jars with no loss of safety or quality, Singh said that these environmentfriendly methods of production will benefit the environment and consumers as well. He was of the view that bottled water be made available in glass bottles as also done in European and other countries as Glass being 100% recyclable, will unlikely pollute the environment or affect human health. Singh appreciated the glass industry’s commitment towards ‘Swachh Bharat Abhiyaan’ & ‘Smart Cities’ initiative and offered support to the industry with regard to investments in State of Rajasthan. Further in the meeting, he emphasized on increased usage of solar energy and flat glass for building smart cities.

“There has been a spectacular rise in use of glass in buildings, as is evident from trend of glass buildings coming up in country as well as in Jaipur” said Sanjay Ganjoo, President, AIGMF. “The use of glass in buildings will make smart cities look more elegant, beautiful and eyecatching. Glass application will not only help buildings lit with natural and solar light but will also lead to huge monetary and energy savings for the economy,” he added. The President also emphasised on the urgent need for regulations on use of glass in buildings to ensure human and fire safety in tune with Smart Cities vision of the Indian Government. Ganjoo talked about the widened options for glazing in buildings and the collaboration of AIGMF with Confederation of Construction Products and Services (CCPS). “To create confidence and provide technical knowhow to

Ekran completes modernization programme Russia Siberian glass manufacturer Ekran has completed its 650RBL ($8.1 million) modernisation programme at its Novosibirsk plant, Russia. Work started in March last year with a major cold glass furnace repair on its No 5 furnace, which resulted in an increase in production by 45 tons a day (255 to 300 tons per day) and an increased service life of five years. In November last year it completed a full renovation of its No 2 furnace that resulted in a daily production increase from 100 to 180 tons and an extra eight to 10 years service life. The plant expects to produce 447 million glass bottles in 2016. Ekran General Director Pavel Bobosik said: “The investment will pay off in about five and a half years. Demand for our glassware is stable. The geography of product sales expanded in the

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Far East in 2015.” He said that Novosibirsk’s favourable geographic location allows it to rapidly deliver vodka and beer bottles to Siberia and the Far Eastern districts of Russia, as well as Kazakhstan and Kyrgyzstan. The plant employs more than 1,000 people. The site produced more than 340 million container glass units in 2015, including 34 million made using Narrow Neck Press and Blow (NNPB) lightweight technology, which reduces the weight of the product by 20-25%. In comparison it produced 326.6 million glass container units in 2014 with 6 million of those made with NNPB technology. Total glass production of its three glass furnaces is 1.4 million units of glass per day. Its furnace No 2 is equipped with one 8-section and two 6-section lines for the production of flint glass containers for alcoholic

beverages, beer and cans with a capacity of less than one litre. Its furnace No 4, with a capacity of 100 tons of glass per day, is equipped with two 6-section lines for the production of flint glass containers and cans with a capacity of 1.5 to 3 litres. Its furnace No 5 has three 10-section lines for the production of brown beer bottles. One of the lines uses NNPB technology. It is possible to reset the furnace to manufacture flint glass containers, depending on demand. In early 2016 it will start a line from its furnace No 2 to produce coloured glass containers (blue, green, olive, brown, purple and pink) using a special feeder, glass forming technology and inspection machines. The company has invested 120 million Rbls ($1.5 million) and the capacity is expected to increase to 60 million coloured bottles a year.

ensure human and fire safety while using glass in buildings, AIGMF took the cognizance of the issue and sponsored project to Confederation of Construction Products and Services (CCPS), a not for profit organization in 2007 to bring out the Guidelines on Use of Glass in Buildings: Human Safety” uttered Ganjoo adding that, “As per the recommendations and norms of the CCPS guidelines, it is suggested how to regulate glass in relation to human safety either by restricting use of glass or specifying use of Safety Glass at critical locations where chances of injury due to glass breakage are high”. C K Somany, Former AIGMF President, who was also present at the meeting as a member of executive committee , gifted 500 glass water bottles Minister for use in ‘Sachivalaya’ which carried a logo of Swachh Bharat Abhiyaan enabling people demand responsible and safe packaging.

NEWS IN BRIEF It is estimated that up to 11m. cases of annual float glass capacity was eliminated in 2015. The backward glass production capacity will to be eliminated continuously in 2016. It is further expected that the total float glass production capacity will fall by about 5% in 2016. However, this drop, when compared with the total production capacity of 1,233 m.cases/year is still wholly inadequate in terms of reducing capacity to a more manageable level. Furthermore, although the backward production capacity is steadily, albeit slowly, eliminated, more advanced production lines are still being launched. Indeed it is expected that nine glass production lines with a total daily melting capacity of 7,700 tonnes will be put into operation during the course of 2016, accounting for 3.7% of the total capacity.

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Carlyle Group looks to Saverglass Jay Khodiyar Glass expands

operations

France Global alternative asset manager, The Carlyle Group has announced it has entered into exclusive discussions with Astorg to acquire a majority controlling stake in high-end glass packaging manufacturer Saverglass, alongside the Management. Headquartered in Feuquières (Oise, France), Saverglass designs, manufactures and decorates premium glass packaging for high-end Wines and Spirits. Saverglass operates six glass and decoration facilities in France and one in United Arab Emirates (UAE). It employs approximately 2,600 people across the globe. Founded in France in 1897, Saverglass has successfully expanded its footprint globally and sells 400,000 tons of glass per year in more than 80 countries. Saverglass’ savoir-faire, inherited from a long-standing tradition of glassmaking, combined with its innovative design and decoration capabilities is widely recognised across the industry. It positions Saverglass as a partner of choice for premium Wine and Spirits companies. Loïc Quentin de Gromard, CEO, Saverglass, said: "The exciting and promising partnership envisaged with Carlyle would take place at the end of a challenging period in the Wine and Spirit industry. Saverglass has embraced in the recent years several sizable investments such as the construction of a 100,000 ton glassworks in the UAE as well as a state-of-the-art decoration plant in Arques (Pas-de-Calais, France). Carlyle’s global footprint and expertise will help us to sustain the international development of Saverglass." Xavier Moreno, Chairman and Managing Partner of Astorg, commented: "Since 2011, we have led and financed a major step in Saverglass development, and investment in its production capacity, combined with an export driven fast growth in North America and Australia. We have benefited from the remarkable set of skills and dedication of all Saverglass employees and managers. We thank them for the performance achieved. They

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deserve the credit for the 25 years of successes of this French world champion in high-end glass bottles for Wines and Spirits. No doubt that Saverglass, backed by its new shareholder, will keep its entrepreneurial spirit and growth momentum." Jonathan Zafrani, Managing Director, Carlyle Europe Partners, added: "We are particularly impressed by Saverglass’ 25year track-record and its unique position on the market, supported by its technological expertise, its creative abilities and its quality of service. We are delighted to partner with its management team, support the Group in its next phase of development and to help promote French luxury expertise throughout the world.” Benjamin Deshayes, Director, Carlyle Europe Partners, added: “Saverglass perfectly fits Carlyle’s investment philosophy: the Group has attractive prospects based on the secular growth trends underpinning its markets and has developed a proven business model to meet the needs of its demanding premium customers." The offer is subject to the consultation process of the relevant “Comités d'entreprise” (French employee works’ councils) and all parties will enter into the final negotiations on successful completion of this process. Carlyle’s equity for the transaction would be provided by Carlyle Europe Partners IV.

NEWS IN BRIEF PCB upstream material maker Fulltech Fiber Glass plans to invest US$16 million to set up a plant in China to produce fiber glass yarn and fiber glass fabric products, according to a Chinese-language EconomicDaily News (EDN) report. The company will start building the new plant in 2016 at the earliest, said the paper, citing sources at Fulltech. The company posted consolidated revenues ofNT$4.481 billion (US$136.07 million) in the first 11 months of 2015, increasing 5.9% from a year earlier.

India Jay Khodiyar Toughened Glass Pvt Ltd, located at Palsana – Kalol, in state of Gujarat in India, a leading manufacturer of toughened glasses in various sizes has carried out a major expansion at its plant by installing a state of the art Insulating Glass Unit ( IGU). The insulating glass unit supplied by Chinese technology provider, Beijing Hanjiang Automatic Glass Machine Equipments Company Limited was installed in September and commenced commercial production in November. The IGU unit is capable of processing glass in sizes of up to 2000 X 3000 mm. The company which, commenced operations in late

2013 by setting up a tempering plant with an installed capacity of 5000 square feet of toughened glasses per day cashed on the steady demand of toughened glass in Gujarat in last two years. According to Sanjay Patel, Managing Director of the company, “ Although around 2022 tempering units have been set up in the state of Gujarat in past eight- ten years but due to tough conditions in Indian glass and processing industry most of these units are suffering and operating at far below the optimum capacity. We have been lucky to operate at near capacity utilization rates at our tempering plant on the back of our sustained marketing efforts and high quality of our finished products.”

IRIS celebrates first inspection equipment order South Korea South Korea’s Kumbi Corp has turned to inspection solutions specialist, IRIS Inspection machines to deliver an advanced finish inspection capability at its manufacturing sites, equipment having been specified for the leading glass container producer’s Incheon and Onyang plants. This is the French company’s first order from Kumbi and represents a breakthrough in the local hollow glass industry. Kumbi is planning a major modernisation at its Incheon factory, which currently features a single 170 tonnes/day melting furnace, serving two fully automated production lines. Specified to replace existing on-line inspection equipment, IRIS will supply an EVOLUTION 16 machine for sidewall and sidewall stress inspection. The Onyang plant houses two melting furnaces and four production lines, manufacturing 220 tonnes/day of glass containers. At this site, an EVOLUTION 2 machine will be installed specifically for finish inspection. The specialist non-

contact equipment will be built at IRIS headquarters in Bron, close to Lyon and has been scheduled for installation in April 2016.

NEWS IN BRIEF Saint-Gobain is to invest around €135 million over the next two years to develop production capacity at its glass facility near Chennai, India’s largest such facility. A third flat glass production facility (the Group’s fifth float in India) and a second coater for the construction market will be built on this site. The plant will produce premium high-performance, energy efficient glass using leading-edge technologies which contribute to the environment protection. This initiative bolsters SaintGobain’s position in flat glass as leader of the fast-growing Indian market, and is in line with the Group’s strategy to increase the share of its industrial assets located outside Western Europe.

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Alcohol curbs boost container glass India The large number of deaths in the last 12 months due to consumption of excess liquor has forced the Maharashtra State government to ban use of plastic in the sale of alcohol across the State. The government is now making the use of glass bottles in distillation of spirits and manufacturing of potable liquor mandatory. Citing health and environmental concerns, the State’s decision comes in the wake of as many as 359 losing their lives to illicit liquor in 2014. The State Home Department has issued a government resolution (GR) that makes it mandatory to use glass bottles in the sale of Indian Made Foreign Liquor (IMFL) and Domestic Liquor, and has banned the use of plastic pouches and bottles made of polyethylene terephthalate (PET) and tetrapak from April 1, 2016.

The move is likely to affected 10 per cent of total alcohol sales in Maharashtra, with manufacturers likely to increases prices to make up for the more expensive glass packaging, officials said. While issuing the orders, the government said it has taken feedback from environmental organisations and activists seriously. Both, it said, have pointed to the dangerous leaching effect of plastic when storing alcohol and serious environmental concerns in disposal. The leaching effects of plastic and plastic chemical substances (such as ethylene glycol) have the tendency to leach considerably into alcohol stored if the temperature goes up during storage, the order said. While a glass bottle has higher resistance to leaching due to dealkalization process it undergoes, plastic

remains vulnerable. “On the environment front, PET bottles are hard to dispose. According to complaints from civic bodies, these are blocking sewage lines and storm water drains in several cities. On the health side, we can’t take chances with these while storing alcohol at high temperatures and in dingy bars,” said a senior Home Department official. The amendments were made to the Maharashtra Distillation of Spirit and Manufacture of Potable Liquor Rules, 1966, and will be implemented as per the guidelines of the Bureau of Indian Standards (BIS). “All glass bottles must be embossed with ‘For Sale in Maharashtra State Only’. Glass bottles don’t pasteurize, unlike plastic. We believe that glass being more expensive may not impact costs,” a senior state official said.

NEWS IN BRIEF In Germany, deliveries of container glass rose by a cumulative 0.3% (tonnage) over the first three quarters of 2015 compared to the same period last year. Similar to the two previous quarters, developments varied markedly for domestic and foreign trade. While exports continue to grow (+7.4% after three quarters) domestic deliveries dropped by 2.4% for the same period. The industry does not attribute these figures to a bad domestic market but rather to shifting filling sites. As was already reported, glass containers are brought just a few kilometres across the border to the relocated producer and are thereby considered exported goods. This situation also exists on the domestic market and yet the industry was able to post 0.2% growth domestically after three quarters.

AIS launches Ecosense expansion NEWS IN BRIEF

India Asahi India Glass Limited (AIS), India’s leading integrated glass company expanded its existing portfolio in the architectural segment with the introduction of a new series under its Ecosense range of high-performance glasses (The Green Standard in Glass). The new series – Edge combines the best of functionalities with bestin-class eco-friendly features. It is a solar control glass with thermal insulation (Low E) properties, which can be used in single glazing applications. It is ideal for use in structural glazing, facades, windows, and skylights. Ecosense Edge is available in three shades – Clear (Natura), Blue (Electra) and Green (Chroma). Vikram Khanna, COO – Architectural Institutional Business, Chief Marketing Offier (CMO), Asahi India Glass Limited said, “The ongoing shift towards Green Buildings shall only further push

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demand for high performance glass, opening up a huge opportunity for expansion in the architectural segment. Faced with increasing environmental degradation, eco-friendly living is the new mantra. Naturally, then, the living and work places are also transforming to reflect the green revolution. And in this transformation, glass is emerging as one of the most effective green building materials. AIS has always taken the lead in delivering green solutions for an eco-friendly future, with innovations in glass processing technology to develop both single-glazed and double-glazed products with the best ‘GREEN’ parameters.” The AIS Ecosense range strikes the perfect balance between outdoors and indoors, function and finesse. Developed to suit the unique climatic conditions of the Indian subcontinent, Ecosense meets the needs of the Indian

consumers who traditionally require more cooling than heating and want to prevent solar radiation from coming in. Optimally medium to low U-value, rather than very low U-value, and optimum light is what the Indian consumers want and this is exactly what Ecosense intelligently gives them. A natural choice for all environment-friendly architecture, Ecosense is now widely used on exterior facades to keep indoor spaces brighter and cooler. It allows light to pass through a window or face, while radiating, absorbing and reflecting away a large degree of the near-range infrared heat. The existing product ranges include – Ecosense Enhance (Solar Control), Ecosense Exceed (Solar Control Low-E) and Ecosense Essence (Low-E) range, each of them complete in a variety of colours to suit every customer’s preference and requirement.

Major pharma glass producer from India, Piramal Glass is streamlining its operations with increased emphasis on high quality production. In a recent move, Gujarat based company has invested in state of the art inspection equipments from French technology supplier, IRIS. Piramal Glass, which operates two manufacturing facilities in India at Jambusar and Kosamba in the state of Gujarat will install these equipments at its Kosamba facility. The order consists of four inspection equipments ( two Evolution 12 & two Evolution 5) for base and finish inspection. Scheduled to be commissioned by March 2016, the equipment will be used for the on-line inspection of pharma glass containers and vials.

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Global View

Valmiera expands glass fibre project UNITED STATES/LATVIA Valmiera Glass Group, a Latviabased fiberglass manufacturer, will expand their U.S.based headquarters operation in Dublin, Georgia. This project will create 425 jobs and generate an overall investment of $90 million through 2022. “The glass fiber industry and its related markets have developed increasingly fast over the last few years,” said Andre Schwiontek, Head of Valmiera Glass Group and President of Valmiera Glass USA Corp. “Demand for glass fiber products has increased, while the company’s productive capacity hardly outlasts the required amounts. The expansion in the United States is a solution to this problem.” In July of 2014, Valmiera Glass Group first announced a plan to hire 150 employees and invest $20 million into its first

U.S. based headquarters and manufacturing facility. The second phase of Valmiera Glass’ original growth plan has been accelerated by three years and represents the additional 425 jobs and $90 million investment. As a result of the expansion, Valmiera Glass Group will become the largest private sector employer in Laurens County. “Valmiera’s Phase II expansion is one of the largest and most exciting economic development wins in the history of DublinLaurens County,” said Dr. Fred Williams, Chairman of DublinLaurens County Development Authority. “Over 400 families will be positively impacted by this decision, and we are so thankful to the company and all of our local, state, and federal partners for helping us secure these new jobs. This announcement is a

wonderful way to kick start 2016 and a great example of the fruit that comes from a commitment to support aggressive economic development in Middle Georgia.” The new jobs will involve advanced operations and will require highly-skilled technical candidates. To ensure their workforce needs are met, the Oconee Fall Line Technical College will collaborate with Valmiera Glass Group to house a training center for future employees. The board of directors at the Heart of Georgia College and Career Academy, located on the technical colleges’ campus, will provide a customized training space for the ongoing needs of the company. In turn, the company will make a significant investment in the facility which will be used year round for advanced manufacturing training.

“The expansion of Valmiera Glass Group is a strategic step that will provide customers with a broader range of products and shorter delivery times while creating jobs in Middle Georgia,” said Governor Nathan Deal. “It further affirms that our thriving automotive and aerospace industries are gaining attention in the international marketplace. We look forward to continuing our partnership with Valmiera as it sets the stage for other companies in that region to locate to Georgia.” “This is the type of collaborative effort that makes Georgia the No. 1 state for business,” said Commissioner Chris Carr. “We look forward to continuing our support for Valmiera Glass Group as they deepen their economic footprint in Dublin-Laurens County.”

Californian recycling rates grow UNITED STATES Newly released data from CalRecycle show the number of California beverage containers sold and recycled increased from fiscal year 2011 to 2015, according to a recent analysis of the data by the Container Recycling Institute (CRI), a Culver City, California-based nonprofit. Furthermore, the CalRecycle data show the overall beverage container recycling rate has held roughly steady for the last five years at around 82 percent, CRI says. “It’s important to celebrate California’s success in recycling over 80 percent of beverage containers: which is more than twice the national rate of 39 percent,” says Susan V. Collins, CRI president. “If the entire country had a container deposit system, we could achieve an 80-percent recycling rate for beverage containers nationwide.” Collins says two out of every 11 beverage containers recycled in the United States are recycled in California. According to CRI’s analysis,

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overall sales of CRV (California Redemption Value) containers grew by 2.2 billion units from fiscal year 2011 to fiscal year 2015: an 11 percent increase. The number of containers recycled topped 18 billion in California in fiscal year 2014/15, an increase of 1.7 billion since fiscal year 2011, CRI reports. PET (polyethylene terephthalate) bottles saw the biggest recycling rate increase, growing from 66 percent in fiscal year 2011 to 75 percent in fiscal year 2015, CRI says. “This is an important increase because PET bottles now comprise 47 percent of the beverage market: up from 41 percent five years ago,” the nonprofit notes. Aluminum cans have consistently had the highest recycling rate of all deposit containers and continue to do so, fluctuating between 95 percent and 97 percent, CRI says. HDPE (high-density polyethylene) recycling fell from 95 percent to 73 percent, though some intermediate years had

periods of over-redemption, CRI says. HDPE sales comprise only 1 percent of the total beverage market. Glass recycling fell by 11 percentage points from 85 percent to 74 percent. HDPE and glass recycling rates likely have declined as a result of the elimination of the “commingled rate,” a practice whereby non-CRV containers, such as HDPE milk jugs, wine and spirit bottles, were recycled in the same loads with CRV containers, CRI speculates. “The good news here is that CalRecycle has done a good job of enforcement to make sure that state redemption centers are participating in the program correctly,” Collins says. The five-year sales increase makes strong recycling rates key to keeping up with the growth of waste being produced, Collins says, but clearly shows the continuation of robust economic activity. PET beverage bottle sales grew from 8.4 billion to 10.6 billion

units, or 27 percent, during that period, fueled by the growth in bottled water packaged in PET. Glass bottle sales also grew by 13 percent in light of new-age beverage sales growth, though they constitute less than one-third of the amount of PET bottles sold. During the five-year period, aluminum can and HDPE bottle sales declined by 5 percent and 19 percent, respectively. While aluminum can sales are likely to continue to be negatively affected by declines in sales of soda, beer can sales remain strong, and energy drink can sales are growing.

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LCA compares container glass options GERMANY Life cycle analyses measuring global warming potential and resource consumption on the basis of the carbon and material footprints of plastic and glass cosmetic jars found a slightly lower impact of glass. The study was conducted by the Wuppertal Institute on behalf of the Federal Association of the German Glass Industry. Cosmetic jars made of plastic are increasingly used by cosmetic brands in the low price segment, where they are appreciated for their low cost, but also in the high-end segment, as technology now allows producing heavy jars with thick walls and more luxury external features. In order to evaluate

the respective environmental impacts of both materials, BV Glas, the Federal Association of the German Glass Industry, committed the Wuppertal Institute to analyse four standard cream jars available on the German market with a filling volume of 50 ml. “There was actual-ly no public studies available on the environmental impact of cosmetic jars,” says Dr. Johann Overath, Director General of BV Glas. The project team thus performed a life cycle analysis (including the fol-lowing phases: extraction and processing of raw materials, production of jars, transport and secondary packaging, end-of-life, recycling)

Stölzle experts focus on the future GERMANY In the first in a series of customer focus days, Heye International welcomed senior production experts from the Stölzle group to Obernkirchen, Germany recently to discuss their development priorities. Stölzle has emerged as an important customer for hot and cold end equipment in recent years and members of Heye’s technical team were on hand to share the company’s latest innovations, while discovering the customer’s current and future priori-ties. Based on more than 200 years of experience, Stölzle maintains a leading role in the international healthcare, pharmaceutical, per fumer y and cosmet-ics and the prestige spirits markets. The group operates 37 production lines at six manufacturing sites in Austria, the Czech Republic, France, Poland and the UK, as well as three specialist decoration sites. Its goal is to be the first choice partner for both customers and employees, by establishing a cul-ture of reciprocal trust and by striving for first class

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per formance, flexibility and reliability. More than 2200 people are employed throughout the world, delivering 2.6 billion glass containers ever y year. Ten senior members of Stölzle’s multi-national production team attended the meeting in Obernkirchen, where Cold end Manager, Gerd Müller presented the group’s latest developments, including the creation of a centre of excel-lence for cosmetic flacons at the Masnières plant in northern France. As well as discussing best practice solutions for the glass container production process, the workshop addressed inspection priorities for the future. This included a debate about which cold end inspection functions could be moved to the hot end, the elements required in the ‘ideal’ inspection ma-chine and the potential for automatic job changes. In addition, the value of a blue sky development to check the visual features of cosmetics flacons was emphasised.

of both heavy and lightweight jars (and their lids). The content of the jar - face cream - and the filling of the jar were not addressed in the study. The main conclusion of such results is that while lightweight plastic and glass cosmetic jars have similar environmental impacts, it is highly ineffective - in terms of sustainability - to produce heavyweight plas-tic jars that imitate the aesthetic characteristics of glass. However, the Wuppertal Institute notes that several additional factors may impact the final results. For instance, decorated glass jars have higher material and carbon footprints than non-decorated glass jars,

NEWS IN BRIEF African developers and architects must ‘stop copying the West’ by erecting tall, glazed commercial buildings that waste vast amounts of energy to cool, and instead develop styles that suit hot climates, a leading architectural academic has said in Kenya. Musau Kimeu, chair of the University of Nairobi’s Department of Architecture and Building Science, said glazed towers and malls are being built all over East Africa now, creating a serious drain on scarce energy.“We must stop copying the West and instead design buildings that are suitable to our tropical climate,” Kimeu told a workshop organised by UNHabitat. “We must pursue sustainable building design strategies to construct buildings that have exemplary humane qualities and that resonate well with the locale,” he added. Some 56% of the total energy generated in developing countries is used in urban buildings, consuming more energy than the transport or industrial sectors.

and the results for plastic jars are influenced by the type of plastic used, polypropylene (PP) has a much lower footprint than styrene acry-lonitrile (SAN). In addition, the energy mix of the country of production impacts the re-sults. “The use of a German, European or company-specific energy mix in production makes a significant difference for both plastic and glass jars,” explains Holger Rohn, who was in charge of the survey at the Wupper-tal Institute. The institute based its analysis on glass jars produced by German glass-plants and plastic jars formed in Germany from basic materials produced in Europe.

Taylor adds additional afurnace IRELAND Taylor Made Group has expanded its glass manufacturing capacity by refurbishing and upgrading an additional flat glass furnace at one of its European facilities, Taylor Made Glass & Systems in Ireland. “This investment was needed to satisfy increased demand in the marine and off-highway glass business,” said Eric Wagner, director of business development for Taylor Made Glass & Systems. The reconditioned flat glass furnace has a range of capabilities, including the ability to produce finished, tempered, tongfree product, economically, in low to high volumes. “By making this capital investment, our corporate headquarters has ensured that Taylor Made will continue to keep up with market demand and remain the market leader in marine glazing products,” said Wagner.

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Glasstec appoints new President

spectacular exhibits, innovative products and pioneering solutions. This time the focus will be above all on free-form, ultra-thin and solid glass as well as on glass used for information purposes. Again, participation in any of the trade-fair symposia will be free for visitors. Other special thematic areas will be the Crafts Centre with Craft LIVE, providing opportunities for a hands-on experience, the Glass and Façade Competence Centre as well as the Glass Art exhibition. glasstec 2016 will be held at the Düsseldorf Exhibition Centre from 20 to 23 September 2016.

Board appointment for Glaston Finland Artturi Mäki has been appointed Senior Vice President of Glaston’s Services business area and member of the Executive Management Group as of 8 February 2016. He moves to his new position from his role as Director, Roll Maintenance Technology Unit with Valmet’s Services Business line. Artturi Mäki will report in his new position to President & CEO Arto Metsänen. Artturi Mäki has a diverse experience of international service business. “Glaston has the sector’s most

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United States Minerals Technologies Inc. has announced that it has named Brett Argirakis Vice President, MTI, and Managing Director of Minteq International Inc., the company's Refractories business segment. Mr. Argirakis, who has served as Global Vice President & General Manager, Refractories, since 2011 will succeed Han Schut, who has left the company to pursue other interests. Mr. Argirakis will report to D.J. Monagle, Chief Operating Officer, Specialty Minerals and Refractories. John McDermott, Vice President & General Manager, Metallurgical Wire Products, will report to Mr. Monagle and Mr. Argirakis. Minteq International, which

Germany The Federal Association of the Glass Industry (Bundesverband Glasindustrie e.V.) has elected Dr. Frank Heinricht, Chairman of the Board at Schott AG, for its new president. This means he will also take office as president for glasstec 2016. Presidency for this, the world’s leading trade fair alternates in line with its two-year cycle of glasstec between the Bundesverband Glasindustrie e.V. (BV Glas) and the Federal Association of Glazier Trades (BIV). Both organisations alongside the VDMA, the German Engineering Industry Federation (Verband Deutscher Maschinenund Anlagenbauer e.V.). serve as conceptual sponsor of glasstec. glasstec 2016 is a must for professionals in mechanical engineering, industry, architecture, the trade sector and solar power. Its wide- ranging additional programme includes special shows and conferences, providing added value for all visitors. The main highlight of the trade fair will be the special show “glass technology live”. As before, it will be organized by Prof. Stefan Behling, a Senior Executive Partner at Fosters & Partners and his team from IBK 2 (Institute of Construction Design) at the University of Stuttgart. The show will feature

MTI appoints new V-P

comprehensive service offering and the most extensive service network. Our goal is to strengthen further this strategic competitive advantage. Artturi will bring new perspectives to the development of Glaston's service business,” says Arto Metsänen. Pekka Huuhka, the present Senior Vice President, Services will continue in Glaston in a Senior Advisor role and as member of the Executive Management Group. In his new role, Pekka Huuhka will focus on growth projects in line with Glaston’s strategy.

consists of Refractory Products, Laser Measurement Equipment and Metallurgical Wire, had annual revenue of $359.7 million in 2014. Mr. Argirakis joined the company in 1987 as a Sales & Service Representative, and has held positions of increasing global responsibility. In addition to his most recent position he has served as Director of Sales and Field Operations for Minteq in the United States; Director of Marketing, Minteq Europe; and Global Director, Refractories. Mr. McDermott joined Minerals Technologies in his present role in January of 2015 after having served as President, North America for AMG Aluminum, a subsidiary of AMG Group.

Laura Biason the new director at Vitrum and Gimav Italy As of January 2016 Laura Biason, with a Computer Engineering degree from the Polytechnic University of Turin and expert in corporate organization and communications, is the director of GIMAV - the Italian Association of suppliers of machinery, accessories and special products for glass processing – and of VITRUM - the biennial International trade show specialized in glass processing machinery. Named Deputy Director of Gimav in May of 2014, Laura Biason immediately began working side- by-side with former Director, Renata Gaffo, in all the areas required to manage these two key Italian glass industry organizations. Thanks to more than twenty years of professional experience in support of Italian enterprise, in the last two years Laura Biason has actively promoted Gimav member firms through participation in the leading international industry events, maintaining ongoing relationships with the primary Italian and foreign institutions and strengthening initiatives to boost

the Association’s prestige. Laura Biason also contributed to the success of the most recent edition of Vitrum, one of the topranked global events that last year drew 18,450 visitors, 50% of whom from abroad, making Milan the international center of attention in the world of glass for the four days of the event. “We will continue to partner with the other organizations in our industry, following the guidelines mapped out by Vitrum President Dino Zandonella Necca and by Gimav President Cinzia Schiatti, consistent with what has been done to date” explains Laura Biason. “We already have many future projects in the works, proof of the vitality of this Italian industry that manages to achieve state-of-the-art qualitative and technological advances acknowledged around the world. We are wholly committed to providing the best business and development opportunities to Gimav members and to all the businesses that will take part in the forthcoming editions of Vitrum” .

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glass technology

RAPIDLINE Series – Complete Cutting System Solution. Hope to see you at: 9. - 12. March 2016 Istanbul, Turkey Hall 11 • Stand 1108A

The RAPIDLINE Series of Equipment can be configured with a nested floor loader as shown or a gantry loading system. Additional options include both fixed and compact storage options to add multiple glass positions within the same bay or adjoing bay to maximize the layout in the available space. Storage area can also be zoned/configured to allow continuous production while restocking locations within the storage system.

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

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News

Batch Prices settled for 2016 with small rises United States // Soda Ash US soda ash contract prices have settled for 2016, with average price increases ranging from $312/ton depending mostly on the volume that the buyer purchases, according to industry observers. ICIS has adjusted its assessments above to reflect the average price increase that was included in this year's supply contracts. ICIS prices firmed by $6/ton to $205-225/ton. The new contract settlement is the result of a process that took over six months to complete. Last July, at least four suppliers announced price increases

ranging from $11-12/ton for 2016 contracts. Most price negotiations for this year's contracts began in earnest in October, with the majority of those settling before the holidays. Other factors that played into how much customers paid for soda ash in 2016 include the market segment represented by the buyer, and the geographical location of the buyer. One market participant said demand in the soda ash market is flat at the moment, which is typical for this time of year. US soda ash production

was down by 6% in October compared to the year before, while consumption was virtually flat on the year. US soda ash producers include Tronox, Searles Valley Minerals, Ciner Resources, Solvay Chemicals and Tata Chemicals. Meanwhile, US soda ash exports for October were down by 18% from the same month a year ago, according to data made available this week by the US Geological Survey (USGS). The decline was the result of fewer volumes shipped to Indonesia and Mexico, according

to the data. Month on month, exports fell by 5% in October, the USGS said. Year to date, exports fell by 4% in October. On the other hand, US soda ash imports for October were up by 88% from the same month a year ago, according to the USGS data. The increase was the result of more volumes shipped from Germany and Italy, according to the data. Month on month, imports rose by 64% in October, the USGS said. Year to date, imports rose by 12% in October. US soda ash import volumes are very small compared to exports.

Botash aims to double earnings Glass companies suspend production Botswana // Soda Ash Botswana Ash (Botash) said it intends to double its earnings to P300 million by 2018. According to the company’s Managing Director, Montwedi Mphathi the company intends to penetrate the African market as well as protect its current markets, especially South Africa where it exports about 20, 000 tonnes of synthetic salt per annum. Botash, which is a 50 percent joint partnership between government and a South African company Chlor Alkali Holdings (CAH) group, currently produces about 300, 000 tonnes of Soda Ash per annum and about 530, 000 tonnes of salt per annum. “We want to grow our presence in the sub-Saharan Africa by developing customer base for soda ash and salt as the production of the salt is limited by the lack of market and transportation,” he said, during a recent media conference. Currently, Botash exports about 42 percent of its salt to South Africa, followed by Zambia at 24 percent, Zimbabwe with 16 percent, Malawi with seven percent, DRC with two percent while four percent is used in the country as cattle feed. The company also supplies almost 100 percent of the glass factories in South Africa with soda ash. Regionally, Botash faces competition from its sister company in Walvis Bay which is owned by CAH while in the sub-

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Botswana // Cadmium Saharan there is Kenya. Mphathi said Botash wanted to increase fine salt production and include forward integration into small packs as well as to continue with commercial negotiations such as partnering with Air Liquide in the trading of carbon dioxide. “We want to have a hub in Zambia to make our products readily accessible to customers and develop pre-packs as we are concluding warehousing,” he said. “Our marketing is being done by Botash South Africa which has been doing it for almost two years now.” Mphathi said transportation remained the biggest challenge as Botash preferred rail transport. He explained that 50 percent of the salt produced by Botash was chemical salt, 32 percent is coarse salt and 23 percent fine salt. About soda ash, he said 99 percent of it is dense salt and one percent light soda ash.

Asian Glass: now for mobiles, ipads and androids

A second company in Portland, Oregon, has voluntarily suspended using cadmium to make colored glass, days af-ter state environmental regulators released a map showing high concentrations of the carcinogenic metal were found nearby. Uroboros Glass, which manufactures colored glass used in art, sits on the fringe of one of two cadmium hotspots in Portland. Federal scientists studying metal concentrations found in tree moss made the discovery last year, detecting levels of cadmium that far exceeded state safety targets. "We don't feel like it's really clear that we're the responsible party, but since we use cadmium we'd rather be on the safe side," said Eric Lovell, Uroboros' president. "Even if we were emitting all that cadmium by ourselves, it's hard to figure out why it'd concentrate a halfmile away." A map released by the Oregon Department of Environmen-tal Quality shows two hotspots for cadmium pollution in Portland. The largest is in Southeast Portland, where the agency said it believes another manufacturer, Bullseye Glass, was responsible. Bullseye announced in early February it was immediately suspending use of cadmium and another metal, arsenic,

which was also detected in high concentra-tions. The other hotspot sits between Interstate 5 and the Fremont Bridge. The cause isn't clear. Uroboros isn't as centrally located in the nearby hotspot as Bullseye Glass is in the Southeast Portland one. Sarah Armitage, a state air toxics specialist, said last week two glass companies were close to the northern hotspot: Uroboros and National Engravers Inc., formerly known as Ostrom Glass. She said the state didn't know whether either was responsible. Uroboros doesn't use arsenic, but it has used cadmium for years, Lovell said. The metal is used to make red, orange and yellow glass. The Department of Environmental Quali-ty contacted the company in 2009 after air monitoring at nearby Harriet Tubman Middle School found unusually high cadmium levels. The school later closed, but is being used this year to house students from the Faubion School. Lovell said his company compared its cadmium use to the days when the Tubman monitor found high levels. Some days, Uroboros had melted cadmium. But many days, the monitor detected cadmium when the company hadn't used it. No clear correlation was established.

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News Anaylsis

News

United…we fall? USA recycling policy T

he US Glass Packaging Institute touts glass as “the trusted and proven packaging for health, taste and the environment.” The benefits associated with glass packaging are many… glass containers are nonporous and impermeable, and food and drinks that are sold in glass containers are safely protected. There is no change to the taste of products that are packaged in glass. And once glass containers are used, they can be recycled, resulting in significant environmental benefits and energy savings. But despite all the good qualities of glass packaging, glass recycling is struggling. As glass recycling is analyzed, several communities with curbside recycling programs have recently dropped glass from the list of acceptable items. So, what’s the problem with glass? Glass has been a regular part of many curbside recycling programs since the 1990s. So why now is glass a problem? The fact is that glass has always been one of the lower valued commodities. Today, recycling managers are facing new pressure as commodity prices have dropped. The problems begin with the collection process, where glass breaks when it is placed in collection vehicles. With singlestream programs, broken glass is mixed up with tons of other recyclables and is difficult to sort. Even with dual-stream recycling programs and drop-off centers where materials are collected separately, glass can be a problem. At recycling centers glass is hard on equipment, creating wear on conveyor belts, screens and other moving parts. Quality issues are another concern of the recycling manager. As paper and cardboard mills become more stringent on quality, buyers of used fiber will pay significantly less for materials containing crushed glass. The economics of glass recycling, high contamination rates and the limited

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outlets for recovered glass is causing recycling managers across the United States to reconsider glass in their recycling programs. Additionally, markets for glass are limited. Remember…when there is no market, there is no recycling. In most cases, recycling centers have to pay to get rid of the glass they produce. Even if you are fortunate to have a viable glass outlet near your recycling center, you must still realize that glass is heavy and the cost of shipping glass is expensive. As a result, a number of towns and cities have eliminated glass from their curbside recycling programs. The pressure to operate recycling centers in a cost-effective and environmentally sound manner will continue. Recycling managers will continue to look for ways to trim costs and examine the cost benefits of various commodities. The Glass Recycling Institute suggests that the ideal recycling program for glass is one which “results in color separated, contaminant-free recycled glass helps ensure that these materials are recycled into new glass containers.” The institute goes on to say, “While curbside collection of glass recyclables can generate high participation and large amounts of recyclables, drop-off and commercial collection programs often yield higherquality container glass.” But recycling infrastructure is not easy to change and demands a lot of capital. Recycling managers need to take an analytical look at every commodity in their recycling program and understand the economics associated with each item that is being collected, processed, transported and sold. Moving forward many municipalities will be asking for and evaluating recycling programs with and without glass as a collected item. Unquestionably, there are significant environmental benefits associated with recycling glass, including energy savings. However, environmental mangers know

that glass tossed into the trash and sent to a landfill presents no risk to public health. Glass is inert and does not decompose. Glass generates no landfill gas and it does not produce any containments that need to be removed like leachate from the landfill. While glass will remain a useful packaging material, there is going to be increased scrutiny on the recycling side of the glass lifecycle. From a business standpoint, recyclers face many challenges with glass. First, glass breaks and it is difficult to sort at most recycling centers. Second, glass is hard on equipment, resulting in higher maintenance costs at recycling centers where glass is processed. Third, glass mixes with paper and cardboard and lowers the value of the fiber that is being sold or increases the risk of deductions at the mill for quality issues. Fourth, glass is heavy and expensive to transport. Fifth, the markets for glass are limited. In many markets there are no viable, long-term outlets for glass, and recycling centers have to pay to get rid of the materials that often end up being used as a beneficial use at a landfill. Fixing the problem will not be easy. While the environmental benefits of recycling materials are clear, recycling mangers are more routinely focusing on the economics of recycling. If recycling a certain commodity is not cost effective and the consumer is unwilling to pay more for recycling, than we should expect to see materials like glass being dropped from more and more curbside programs. Glass manufactures should be concerned because of the potential consumer backlash against packaging products that are seen as non-recyclable. Again, the fix will not be easy as recycling is coming to a crossroads and recycling managers, municipal managers and manufacturers will need to make hard decisions based on sound economics and the ability to move materials to viable, long-term markets.

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ANALYSIS: Gujarat

Leading the The glass industry of Gujarat: part 1 Yogender Malik provides the first of our two part focus on India’s most exciting glass manufacturing province…Gujarat…

Gujarat container glass makers

mong a total of 29 states in India, Gujarat has made a mark in terms of manufacturing excellence, number of new set ups and record production in most of the industrial sub-segments. From glass industry’s point of view, the state houses some of the most established players in all the three sub-segments of our industry. The state was the destination of first float glass plant established in the country. Later, two more float glass plants were added in the state. In container glass sub-segment, the state has a host of mid scale producers operating in the country. In tableware segment, the state hosts the country’s largest producer in its category.

Why Gujarat leads

Mohan Brewery & Distillery

Company

Location

Capacity

Pan India

4450

AGI Glasspac

Andhra Pradesh

1550

Piramal Glass

Gujarat

860

Haldyn Glass

Gujarat

320

Pondicherry

240

Sunrise Glass

Gujarat

220

Janta Glass

Gujarat

220

HNG

Largest production base of raw materials needed for glass production, one of the best infrastructures in India, availability of piped natural gas, proximity to some of the largest ports and equidistance from major consuming markets ( Mumbai and Delhi) places Gujarat at an advantageous position vis- a – vis other states in terms of manufacturing advantages for glass industry. No wonders, per capita production and consumption of glass is highest in the state, in all the three sub-segments.

Excel

Kerala

220

Container glass

Vitrum

Mumbai

130

Pragati Glass Industry

Gujarat

130

Enki Glass Industry

Gujarat

100

Pan India

620

Accounting for about 25 % ( 2200 TPD ) of country’s total container glass installed capacity, Gujarat has emerged as top destination of mid scale container glass producers, besides hosting the largest container glass producer for pharmaceutical use, Piramal Glass. The state based producers have gradually shifted to state of the art technology and have modernized their manufacturing facilities at regular basis. Most of these companies are meeting the container glass demand of some of the best names in food, beverage and pharmaceutical industries. Several facts including the one that Gujarat houses an impressive industrial belt including a hub of container glass consuming industries, makes it one of the most preferred destinations of container glass manufacturing in the country. Consumers with one of the highest per-capita earnings in India have resulted in more than average growth of consumption of food, beverages and pharmaceuticals products, leading to a healthy container glass demand from the state.

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Universal Glass

Cumulative capacity of all the small producers Grand Total

9050 TPD

The fact that state of Gujarat is a dry state (no alcohol sale is allowed in the state) makes the performance of container glass production even more spectacular. No alcohol in the state means absence of largest consuming subsegment of container glass industry. Beer, which accounted for an estimated 294 million cases in 2015 and spirits, which had an estimated consumption of 310 million cases in the just gone by year could have made a massive difference

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ANALYSIS: Gujarat

charge to container glass consumption and production in the state. Though, some of the state based container glass producers’ supply to beer and spirits industry, but freight intensity of our industry makes these supplies limited.

Expansion plans

Largest container glass producer in Gujarat, Piramal Glass will spend $85 million towards expansion and capacity enhancement at its various locations. These expansions include, doubling of capacity and modernization for decoration of perfume glass at Kosamba facility. 20% increase in capacity and modernization of the furnace at Sri Lanka facility. Modernization of its facilities at Park Hills, Missouri USA for the manufacture of premium containers for the specialty spirits market. Complete revamping and upgrade of its 35 tons per day (TPD) furnace to 65 TPD furnace with four lines and capabilities for manufacturing select perfume bottles. According to company, these investment will be made from internal capital-generation and the raising of some debt. The financial turnaround of its operations, despite global market conditions, has encouraged the management to make this investment. In order to expand its market and product portfolio, Surat based, Haldyn Glass’s management approved the proposal for a Joint Venture (JV) with one of the most reputed luxury container glass producer, Heinz Glas International GMBH, Germany, for the manufacturing of perfume and cosmetic glass bottles for the export and local market in June 2015. According to industry grapevine, Surat based Sunrise Glass Industry is likely to make a capacity expansion in next two years. Though, when queried by Asian Glass, Sunrise Glass’s management declined to comment on the expansion plans. But, most likely the company is expected to add another furnace of similar capacity ( Company’s current installed capacity is 220 TPD).

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Gas issues

In late 2014, glass producer and other industries in some parts of Gujarat started facing gas problem. The situation in southern part of state was worse, where the concentration of glass producers is more. There was an upto 60 percent cut in natural gas supplied under the Administered Pricing Mechanism (APM) for all the industries located between Vadodara and Kosamba (Surat). Though, the gas distributor, Gas Authority of India (GAIL) provided “costlier” spot RLNG (Re-gassified Liquefied Natural Gas) in its place. But, it had an adverse affect on the production cost. Though, the situation came back to almost normal in last two months of 2015, yet it had a significant impact on production level and profitability of a number of glass producers in 2015. “We were forced to close down one of our two furnaces and had to retrenched close to 500 workers,” says Dinesh Gupta, managing director, Pragati Glass Pvt Ltd which was forced to impose a 80 tonnes cut in the company’s overall production of 170 tonnes of glass per day. State’s largest container glass producer, Piramal Glass had to partially shut operations. “We had to shut one of the nine furnaces. Over 400 persons were laid off,” told a senior level executive of Piramal Glass at the condition of anonymity. The situation was so grim that some of the units in South Gujarat were also reconsidering a relocation. “Apart from scaling down, we are only left with one other choice, that of moving out our operations outside Gujarat. Now it does not make sense to continue manufacturing in Gujarat,” Tarun Shetty, managing director of Haldyn Glass Ltd had commented on the height of fuel crisis. His company was forced to scale down operations by 20 percent. State government has made various reductions in natural gas prices in past six months. In the latest such move, in first week of January, Gujarat government

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ANALYSIS: Gujarat

announced reduction in gas prices. Aimed at offering respite to the small and medium industries that are using piped natural gas (PNG) as fuel, the reduction in gas prices by up to INR 5 per cubic metre was announced by state government. The PNG is supplied to small industries through state-run companies like Gujarat Gas Limited. According to Gujarat government, the price reduction comes in the wake of fall in global prices of natural gas, impact of which was being passed on to the small and medium industries in the state. “The price cut will be made effective in two phases, the first will be from January 1, 2016 with reduction of INR 3 per cubic meter, while additional INR 2 per cubic meter price cut will be made effective from April 1, 2016,” according to a state communiqué.

Piramal Glass

Largest container glass producer in Gujarat with 860 TPD per day capacity from its two plants in the state, Piramal Glass has made a mark for itself on the back of quality of its products. Besides Gujarat, the company has container glass production facilities in Sri Lanka and USA. Cumulatively the company has 12 furnaces supported by 60 lines and have a combined capacity of 1335 TPD. Both of its Gujarat based production facilities at Kosamba ( Dist Surat) and Jambusar ( Dist Bharuch) are strategically located near three major seaports to cater to exports market. Kosamba facility has a capacity of 340 tonnes per day and produces type I, II and III amber and flint bottles and vials for the pharmaceuticals industry. It also makes containers for nail enamel, perfumes, skin care, foundation, aroma oils and miniatures etc (from 5 ml to 150 ml). This facility also has a provision for producing feeder coloured glass for the perfumery business. This production facility has six furnaces and twenty five. Three furnaces are dedicated to pharma bottles, while three are meant for cosmetics industry. Piramal Glass’s Jambusar plant, which is operational since1998 is single largest installed facility for amber glass bottles in India. Spread across a sprawling 67-acre campus, this plant has an installed capacity of 520 TPD of container glass from three furnaces and twenty two lines. Product consists of type three amber and flint glass containers for both pharmaceutical and C & P segments. All three furnaces are equipped with control rooms, which are used to produce no-wash category bottles. Temperature, relative humidity, air flow and microbe and particle count are strictly monitored in these control rooms. Piramal Glass produces glass containers for cosmetics & perfumery (C&P), speciality food & beverages (SF&B) and pharmaceuticals industries. C&P continues to be a focus area for the company and it accounts for 50% of the total revenue . Supplying to cosmetics & perfumery, pharmaceutical and food & beverage industries, Piramal Glass provides end-to-end solutions which include decoration, designing and in-house mould design. Traditionally, the C&P glass bottles market has been dominated by European players like SGD, Pochet, Gerresheimer, Heinz, Zignago, Bormiolli Rocco and Bormiolli Luigi. Most of these players have been in existence for more than a hundred years. Piramal Glass has challenged the dominance of these established players in a relatively very short span of time. The company is the youngest player in this segment, which entered into this segment in 2000 with foray into nail polish market, and later mass perfumes. Within a few years of entering, the company has become a dominant player in the nail polish glass bottle market globally. “On the energy front, 2015 and first half of 2015 was a very volatile period. In Gujarat, there was an unprecedented cut on the supply of APM Gas to both Kosamba & Jambusar facilities substantially increasing our manufacturing cost. This was mitigated to some extent by the drop in global crude oil prices. Hopefully, in the future the energy prices will not increase as they have in the last four years (almost 33% annual increase). Amidst these challenges, our Company continues to move forward on its vision of global leadership in specialty glass packaging (flacconage),” according to Ajay Piramal, Chairman of Piramal Glass. Piramal Glass acquired the bankrupt Glass Group, US, in 2006 for $20 million, when it was going through a severe liquidity crunch, but had a lucrative franchise in the European and American cosmetics markets. The Piramals infused

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$60 million and turned around the US operations through some stringent costcutting and downsizing of employee strength. This helped the company gain access to a large chunk of the premium global cosmetics market in the US. In fact, the company even shifted some of its production capacities to Gujarat plants. A little earlier, it was planning to shut down two lines of production in the US out of its existing six lines and transfer production to India; since then, though, the business has gained traction and, due to lack of capacity, the company has shelved this shutdown plan and is continuing with its existing lines of production.

Haldyn Glass

Haldyn Glass Limited (Formerly known as Haldyn Glass Gujarat Limited) was incorporated in 1991. However, the company is engaged in production of container glass s since 1964. The company has a total melting capacity 320 tons per day comprising of two glass melting furnaces (220 + 100 tons per day capacity) and 10 I.S. machines which enables Haldyn Glass to produce a wide range of containers from 10 ml to 1000 ml. The I.S. machines are capable of producing 1.5 million high quality containers every day. In last few years the company has diversified into production of wide-mouthed jars, using press & blow technology. Value-addition is also facilitated through the decoration facilities, consisting of modern multi-colour printing machines, recently commissioned. According to N.D. Shetty Executive Chairman of Haldyn Glass, “We are well equipped in-house design facilities which have enabled us to produce over 500 different shapes and sizes of glass containers for various industries. We create new designs and shapes of bottles to give cutting-edge advantage to the products for clients in food, pharmaceutical, beverages, liquor and beer industries. We try to produce sophisticated and modern designs to suit the quality standard of our clients in short lead times.” He further says , “Key to our successful manufacturing of quality products depends on state of art production processes and facilities, quality raw materials and the efficient utilisation of available technology. Our modern machines are complemented with highly skilled, motivated and experienced glass technologists, technical personnel and other professionals, whose dedicated team work ensures that we produce superior quality bottles.” The company’s locational advantage gives it an competitive edge with substantial savings in freight cost of raw material and natural gas. This is locational advantage comes by its plant’s proximity to the mines in Gujarat and Rajasthan and gas fields of ONGC. As mentioned elsewhere in the article, Haldyn Glass management board has approved a JV with German luxury container glass producer, Heinz Glass, which is one of the most reputed container glass producer with a history and tradition of almost 400 years old. The company specialises in manufacturing and refining small glass bottles for the perfume and cosmetics industry. The core competencies of Heinz Glas include in particular the in-house development departments of their own glass-mold and absolute high technology in production and finishing of glass bottles in five German factories as well as at additional sites in Poland, Switzerland, the Czech Republic, China as well as in North and South America. However, Haldyn Glass has not revealed its plan of production under the joint venture. The company refused to make any disclosure regarding the JV when Asian Glass spoke to Haldyn Glass.

Sunrise Glass Industry

Sunrise Glass Industry, which commenced commercial production of container glass in 2012 has made rapid progress in its brief history of some three years. With an installed capacity of 220 TPD, this Surat based container glass producer for soft drinks, liquor, pharmaceuticals, food and cosmetics sub-segments is likely to announce an expansion plan sometime this year. Part of the Astron group of companies, which has interests in the ceramic tiles, tableware and other ceramic products though other group concerns has drawn the attention of consuming sub-segments due to adherence to high quality standards.

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倀甀琀礀漀甀爀搀攀昀攀挀琀猀椀渀琀栀攀猀瀀漀琀氀椀最栀琀

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ANALYSIS: Gujarat

Gujarat- Hub of Pharma glass production

State of Gujarat has emerged as a key hub of pharma glass production in the country. Some of the largest pharma glass producers are present in the state to take advantage of a unique mix of availability of raw materials, cheap and trained manpower and better infrastructure, which is conducive for glass production and exports. Besides, India’s largest pharmaceutical glass producer, Piramal Glass, Gujarat is home to Schott India, Schott Kaisha and another German container glass producer, Gerresheimer AG.

Schott Glass India

Schott Glass, a wholly owned subsidiary of the Schott group, is a manufacturer of neutral USP-1 borosilicate glass tubes having unique properties (such as low thermal expansion co-efficient and highly resistant to chemical reaction), therefore are used to make glass ampoules, vials, cartridges, syringes, which are used as packaging material for liquid injectables and drugs by the pharmaceutical industry. Schott Glass India Pvt. Ltd has been present in India since 1998 when Schott took over a company producing pharmaceutical tubing in Jambusar district in the State of Gujarat. This plant now functions as a production hub for company’s pharmaceutical tubing for Asia. Today, Schott through its 100% subsidiary in India has one manufacturing site in Gujarat and sales offices in Mumbai and Pune. To provide the Indian pharmaceutical industry with high quality tubing, the company has completely modernized the production technology to German standards and also expanded its production capacity. In 2005, the company installed a new tank to produce fiolax tubing on site. Two years later, a further high technology tank was set up for additional production of pharmaceutical tubing.

Scientific glassware producers in Gujarat Company

Product Area

Location

Mahavir Scientific Glass Industries

Scientific Glass

Vadodra

Goel Scientific Glasses

Industrial Glassware

Vadodra

Laboratory & scientific Glass

Vadodra

Swastik Scientific Glass Industries

Glass Tubing

Vadodra

Jencons Glass Industry

Glass Tubes

Vadodra

Unity Glass Industry

Schott Kaisha

Schott Kaisha, a joint venture between Indian company Kaisha and German company Schott is country’s largest pharmaceutical tubing producer. With its two manufacturing facilities located in Daman and Jambusar in the state, the company has an installed capacity to produce 2.4 billion pieces per year. Schott Kaisha’s Jambusar plant achieved many first, when it commenced operations in early 2013. It was India’s first fully automated pharmaceutical packaging plant . This Greenfield facility, set up with an initial investment of 20 million Euros , enabled Schott Kaisha to increase its production capacity by almost 50 percent to around 2.4 billion pieces per year. The facility is housed in an area of 20 acres with ample room to construct additional production modules in parallel with the increasing demand of customers. One of the foremost features of this facility is that it uses high-end robotic feeding technology for tube-loading, fully in-line automatic process and highprecision camera inspection systems. According to Schott Kaisha “This high-end technology is not available with any other company operating in this product category. Such technology guarantees an extremely efficient and reliable production process of consistent quality, underlining company’s commitment to the international good manufacturing practice (GMP) standards.” Joint venture’s Indian partner, Kaisha began its operations in 1997 with just four machines in a small facility in Daman with an initial annual output of 30 million ampoules. Later, products like vials, cartridges and sterile glass syringes were added to the portfolio. The Schott Kaisha joint venture (JV) started in 2008 when Kaisha Manufacturers joined hands with the international technology group Schott. According to Kairus Dadachanji, Managing Director of Schott Kaisha, ,”We have been supplying packaging vials and ampoules to the majority of the Indian vaccine industry, including companies like Serum Institute of India, Zydus Cadila, Bharat Biotech, Panacea Biotec, Shantha Biotechnics, GSK, Chiron and more. Almost 80-90% of the vaccines that are manufactured in India are packaged in Schott Kaisha glass. It is a matter of great honour for us we play a role in the

asianglass AG 16-1

vaccination of millions of children worldwide.’

Gerresheimer AG

German pharma packaging major, Gerresheimer AG entered in Indian market by acquiring a Gujarat based, Neutral Glass & Allied Industries in 2012. Incorporated in 1986, the Mumbai based (head office) Neutral Glass & Allied Industries Private Limited manufactures Type-1 and Type-3 glass bottles and vials for the pharmaceutical industry at Kosamba in Gujarat and can produce about 800 million bottles annually for type I & III pharmaceutical applications in amber and flint colours. Gerresheimer acquired 70% stake in the company. According to Gerresheimer, Indian acquisition was meant to give the company acquisition a modern pharma glass production facility in India. Commenting on the acquisition, Gerresheimer CEO, Uwe Roehrhoff said: “We are investing in India at a time when its pharma sector is gaining international significance on the back of sustained high growth rates. This acquisition significantly broadens our production facilities, customer

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ANALYSIS: Gujarat

base and our distribution capabilities there.” Founded in 1864, Gerresheimer is active in the business of manufacturing specialty products made of glass and plastic for the global pharma and healthcare industry.

Yera (Formerly Alembic Glass)

Yera - A name that is synonymous with the classiest tableware glass products in India, was initially launched in 1944, under the aegis of Alembic Glass Industries Limited. Over the decades, Gujarat based company has retained its leadership through innovations and stringent quality measures. With an installed capacity of 135 TPD of tableware glass, the company is among India’s largest glass tableware producers with its celebrated brands - Yera and Yera Platina. After being identified with drink ware for years, the company went for a makeover last year, when it invested around INR 150 million in 2015 to refurbish its furnace and streamline operations. The current portfolio of Yera now comprises of kitchenware including hot and cold processing and storage, giftware and dinnerware products. Nitin Bhave, Director, Shreno Ltd, an associate group company of Vadodara headquartered pharma firm says,” We will not remain as a Martini glass maker and it will be a utilitarian glassware brand. The products will be made available via exclusive retail outlets as well. Currently we command a 40 percent market share in the Indian glassware market, which is worth INR 2.5 billion” Yera’s new portfolio line was developed as the firm analyzed the reason for

slipping. The popular domestic glassware brand was pushed down by the cheap Chinese imports and foreign brands. Though the firm presumed with glassware imports, it could not sustain in the market as buyers started opting for expensive glassware as the overall purchasing power improved significantly. Regarding this, Alembic’s Director, Rajkumar Baheti says that the brand that once had a legacy and recall value was directionless. Though Alembic went on with its glassware manufacturing at the Vadodara plant and consumers preferred their glassware with Year branding, the Chinese glassware were the intruders. However, Yera started with brand rebuilding for the last two years and introduced new designs on regular basis. Now, they are sitting on a design portfolio of over 500 designs and the team has reworked on the quality of their products as well. The company considers the trend where Indians have got comfortable in using glassware in their everyday cooking and dining and preference of purchasing glassware online. It aims to make a great opportunity for it with this rising trend. They are also interested in servicing the tier II and tier III cities and towns as the glassware penetration is taking place even there with the Chinese goods being dominant. Year’s parent company, Shreno is a technology provider to glass producers in the country. Shreno is positioned with an end-to-end capability covering all aspects of the glassware manufacturing business. The company has an in-house facility for manufacturing glassware molds that helps it to create prototypes of new designs within two weeks and in most cases to start production runs within four weeks of finalization.

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AG 16-1 asianglass

ANALYSIS: Turkey

Talking Turkey rising expectations as industry grows

AG looks at how, despite regional unrest, Turkey’s strengthening economy is putting the glass industry on the front foot…

urkish glass producers have much to cheer about as the country’s economy has defied all expectations and showed strong resilience in 2015, despite the inflamed political turmoil following June’s elections, which resulted in a hung parliament and dampened economic sentiment. GDP expanded 4.0% annually in Q3, which was above the 3.8% tallied in Q2. More

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recent data suggest that positive spillovers from November’s election carried into the final quarter of 2015. In December, the manufacturing PMI hit a 13-month high and, despite moderating, business sentiment remained in positive territory. Constructions, automotive production and food and beverage consumption all have registered good growth, resulting in healthy demand of glass from all sub-segments.

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ANALYSIS: Turkey

float line (600 tons/day ~ 220K tons/year). The company is expected to add another furnace of 850 tons/day capacity by next year. Despite being self sufficient in flat glass production, round 20% of the demand in the market are met through imports.

Turkey, which switched to modern industrial production in 1935, started commencing glass production in industrial sense in 1937. The capacity of Turkish Glass Industry could only meet the domestic demand for glass containers and tableware until 1960s.New investments in 1960 helped to start production of flat glass, auto glass, industrial glass products and fiberglass. Expansion of the construction industry and increased housing needs boosted the demand for flat, container and tableware glass. Encouragement of export-oriented growth policies during 1980s made the glass industry one of the industries with the fastest export growth. With the expansion of the export markets during 1990s the industry increased both its domestic production capacity and investments abroad.

Automotive glass

The overall market for motor vehicles in Turkey contracted by 10% to reach 807,000 vehicles in 2014. However for glass producers, increased exports in the automotive segment compensated for the contraction in the domestic market, and there was an overall increase in production. Turkey’s total automotive exports grew by 7% to reach 885,000 vehicles in 2014. Production of motor vehicles, on the other hand, posted 4% YoY growth to be realized at 1.2 million vehicles.

Improved growth

According to Turk Stat figures, Turkey glass industry production had reached to 3.06 mn tons in 2014. Total production of the country grew at a CAGR of 5.07% over the past five years. More importantly, capacity utilization rate of the industry showed decisive upward trend thanks to improved technology, know-how and growing domestic and international demand. Since Turkish glass industry does not have an advantage in terms of raw material and energy costs compared to Middle East countries or even most of its European peers, capacity utilization rates of the industry is the key indicator of the competitive edge and profitability. The Turkish glass industry has achieved a capacity utilization rate of more than 90 % ( The figures read 70% in 2006), thanks to strong demand growth. Currently, steady growth prospects in the domestic market sub- sectors, such as automotive, construction, beverages, pharmaceuticals, not to mention the growth prospects in neighbouring countries promises a great time for Turkish glass producers.

Export bias

Based on Turk Stat figures, export volume of all the three sub-segments of Turkish glass industry achieved a figure of 809, 000 tons in 2014, increasing at a CAGR of 8.5% during the past five years. Turkey has an advantageous position among its global competitors thanks to its proximity to main export regions in the world, Euro zone being the most prominent one. Exports to Euro zone constitute about 70% of the overall glass exports of Turkey. Among destinations, Germany has the highest share with 22% followed by Italy, UK and France. In terms of product breakdown, container and tableware glass are the top two product categories.

Flat glass

Catered by two companies, Turkish flat glass industry has an overall installed capacity and production far exceeding than total domestic flat glass demand. Sisecam’s subsidiary, Trakaya Cam was the lone producer of flat glass till 2010, when another producer joined the fray. Trakya Cam is the largest flat glass manufacturer with a majority share in domestic market. The company produces float glass, patterned glass, mirror, laminated glass and coated glass. The company also produces automotive and glass for home appliances. In 2014, Trakya Cam brought its seventh float line in Turkey into operation in the Polatlı Organized Industrial Site in Ankara, which represents its fourth production location in the Turkish market. The facility boasts Turkey’s highest-capacity furnace with a capacity of approximately 1,000 tons/day, and is also one of only a few such furnaces in the world. Düzce Cam is the only other domestic competitor operating with one

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Container glass

With strong economic growth and increasing consumer purchasing power, the demand for glass bottles in Turkey continues to grow. The production of container glass in Turkey in 2014 rose by a meager 1.5% to 992,000 tonnes in 2014. Demand for glass bottles is further being fuelled by a growing preference for glass packaging over cans and PET for all beverages, including water and light alcohol. The Turkish glass packaging industry was affected by the presidential election, fluctuating exchange rates, and the political developments in the surrounding geographies, such as the relationship between Russia and Ukraine. The tensions and the environment of distrust in the Middle East decelerated the glass packaging trade to these areas. In Turkey, as well as is the case worldwide, PET is strengthening its image as a healthy packaging as a result of the R&D studies carried out on PET. As China maintains its competitive cost advantage, the import pressure continues on the pharmaceutical segment. While the fluctuating exchange rates negatively impacted raw materials and imports, higher exchange rates contributed positively to the export of glass packaging, both in the form of empty and filled products. Having expanded by 11% over the past four years, the Turkish glass packaging market registered a growth of nearly 7% in 2015, and attained significant growth rates in sales, particularly in the water, milk, wine and mineral water sectors.

Sise Cam: the leader

One of the most established enterprises in Turkey, Sisecam Group is a global actor in global glass industry including all main areas of glass, i.e. flat glass, glassware, glass packaging and fiberglass, as well as soda and chrome compounds. The group is second largest glassware, third largest flat glass and fourth largest container glass producer in Europe in terms of production capacity. The company has a vertical integrated business structure, producing and supplying soda ash and chromium chemicals to its sister companies, as well as to third parties. Besides, the glass holding is the 4th largest producer in Europe with 14% share in flat glass, 9% share in glass packaging, 25% share in glassware and 15% share in soda ash, respectively. Sisecam has glass manufacturing facilities in Turkey, Germany, Italy, Bulgaria, Romania, Slovakia, Hungary, Bosnia-Herzegovina, the Russian Federation, Georgia, Ukraine, Egypt and India. An international Group with an experience of 81 years, more than 20.000 employees, manufacturing activities in 13 countries and sales in 150 countries, Sisecam aims at becoming one of the three largest global manufacturers in line with its vision for 2020.

AG 16-1 asianglass

ANALYSIS: Turkey

In 2014, Şişecam Group inaugurated four new plants, one in Turkey and three abroad. Within this framework, 290,000 tons of annual flat glass production capacity was added in Polatlı, Ankara facility, and 230,000 tons of annual flat glass capacity was added to the facility in the Republic of Tatarstan in Russia. The Group introduced two plants in the automotive glass segment, each with a capacity of 800,000 car sets per year, one in The Republic of Tatarstan in Russia addressing the Russian market, and the other in Romania meant for the European OEM market. Besides these new plants, investments in new furnaces continued in other fields in the existing plants, resulting in increased capacities. Despite, negative growth in some of its key markets, Sise Cam Group increased its net sales income in 2014 by 15% to TL 6.9 billion. Şişecam achieved significant progress in its international salesas well as attaining successful results in Turkey. The share of international sales, rose to 52% in revenue, and the Group’s international sales exceeded its domestic sales for the first time in its history. Group’s exports from Turkey amounted to US$ 837 million in 2014.

THE TURKISH GLASS INDUSTRY HAS ACHIEVED A CAPACITY UTILIZATION RATE OF MORE THAN 90%

Trakya Cam

Founded in 1978 as a subsidiary of Türkiye Şişe ve Cam Fabrikaları A.Ş., Trakya Cam Sanayii A.Ş. carries out the activities of the Şişecam Group in the field of flat glass and is the 6th largest flat glass producer in the world. With its plant inaugurated in 1981, Trakya Cam became the first company across a broad region spanning from Eastern Europe and Balkans to the Middle East and North Africa to use the modern float technology in production. Since then, the Company has been a pioneer in the development of flat glass both in Turkey and in the region, introducing many firsts to the industry. Today, it carries out its production activities with a total of ten float lines.

International ambitions

Besides, domestic market, Sise Cam has established glass plants in all the three sub-segments in various countries. In the second half of the 2000s, company’s flat glass division, Trakya Cam adopted multi-focus production approach in line with its vision of regional leadership, and expanded its activities beyond the borders of Turkey for the first time and founded Trakya Glass Bulgaria EAD in Bulgaria in 2006. Having thus set up its first float line in the Balkans, Trakya Cam then launched a mirror line and home appliances glass production line, followed by the Bulgaria Automotive Glass Plant in 2010, and its laminated and coated glass lines in 2013. The company established a strategic partnership in 2009 to develop its flat glass activities in Egypt and Russia, undertaking a joint venture with Saint-Gobain.

Anadolu Cam

With its annual production volume of 2.2 million tons, Anadolu Cam is the fifth largest container glass producer in the world. The Company carries out its production activities at a total of ten plants located in Turkey (3), Georgia (1), Russian Federation (5) and one in Ukraine. The Glass Packaging Group of Sise Cam carries out its operations in Turkey under the name of Anadolu Cam, with nine furnaces in three facilities established in Mersin, Yenişehir-Bursa and Eskişehir. Company’s total domestic capacity has reached to 920K tons/year following the capacity expansion at Yenisehir plant with 120K tons/year new furnace and the company moving its 180K tons/year capacity in Istanbul facility to Eskisehir, located in Central Anatolia. Profitability of the company has improved due to the new furnaces, since these are more efficient and produce higher value added products. Anadolu Cam produces glass containers of different colors and sizes for the food, beverage, alcoholic drinks, pharmaceutical and cosmetic sectors, has a history that dates back to 1935 when the first production facility in Paşabahçe, Beykoz was established. After operating out of this facility

asianglass AG 16-1

Cost break up for three sub-segments Cost Factor

Trakya Cam

Anadolu Cam

Pasabahce

Natural Gas

34 %

14 %

15 %

Power

11 %

14 %

15 %

Raw Material

25 %

41 %

18 %

Labour

14 %

13 %

19 %

Others

15 %

19 %

34 %

Total

100 %

for approximately 35 years, production activities were relocated to the Topkapı plant in 1969 due to rapid growth of the soft drinks industry, the increased bottle demand of the pharmaceutical industry, and the expansion of glassware production in the Paşabahçe plant. Since then, the company embarked upon a period of rapid and steady growth, which continues till date. Company’s Eskişehir facility is the only glass packaging producer to supply the pharmaceutical sub-segment under the class 8 specifications in Turkey. In addition, the company creates differentiation and competitive advantage in the market by presenting its customers designed products at its decoration facility with a production capacity of 200 million units per year at Eskişehir plant.

Paşabahçe

Kemal Atatürk would have been proud by the performance of Pasabahce. In 1935, three years before his death, modern Turkey’s founding father, Kemal Ataturk, first president and moderniser-in-chief, ordered İş Bankası, the country’s leading bank, to provide funds needed to furnish the young republic with a homegrown glass industry. With the construction of a plant in an Istanbul neighbourhood known as Paşabahçe, Turkey’s first glassware company commenced its operations. Today, eighty one years later, Pasabache, set up to meet the domestic glass ware needs, exports its wares to more than 140 countries, boasts a product line of more than 20,000 items and operates 44 stores across the country. With 12 glass furnaces, over 80 production lines, and more than 30

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ANALYSIS: Turkey

production lines capable of manufacturing value-added printed and decorated products at its plants in Turkey and abroad, Paşabahçe Cam has secured competitive advantage in the glassware market and cemented its leading position with its investments at its plants in Eskişehir, Kırklareli, Denizli, Mersin with capacity enhancement, technology upgrade, research and development, new product development and cost reduction. Paşabahçe Mağazaları, the Group’s professional chain store management business, stands as the leading retailer in Turkey in its field, with a wide product range in tabletop and kitchenware. Camiş Ambalaj, which is amongst the leading companies in the paper/cardboard packaging business in Turkey, is another company operating under the Glassware Group. With sales revenues of $740m in 2014 and a global market share of 12 per cent, it is the world’s third-biggest glassware producer. Mass-produced glassware continues to be Paşabahçe’s bread and butter, but its share of handmade designer products is expanding fast. With part of the company catering to businesses and supermarkets all over the world and the stores selling directly to consumers, Paşabahçe now supplies all market segments, including household, catering and industry.

Ciner Group

One of the largest conglomerates in Turkey, Ciner Group has established a state of the art container glass plant in Turkey. The subsidiary, Park Glass emphasizes on production of light weight container glass bottles. The company has already started to give competition to current market leader Anadolu Cam in the domestic market.

Park Glass

Located at industrialized zone of Bilecik, in north-western Turkey, Park Glass is a new comer in Turkish container glass industry. A subsidiary of one of the largest conglomerate in Turkey, Ciner Group, Park Glass commenced commercial operations of its container glass plant with an installed capacity of 500 TPD in 2012. Located mid-way between Ankara and Istanbul, close to the city ol Eskisehir, Park Cam has made a significant impression in the domestic container glass industry. In November 2015, the company commenced production at its second furnace, installed in the proximity of its existing furnace with an installed capacity of 500 TPD of container glass. This expansion has taken the overall installed capacity of Park Glass to 1000 TPD. Park Glass has invested in state of the art technology for both the phases of its container glass plant. Production equipments for both the phases were procured from a consortium under leadership of the Italian technology provider, Bottero. Batch systems of the plant were provided by Finnish company Laht Precession. Teco Glass supplied the furnace, inspection system by MSC&SGCC and palletizing machinery was supplied by Emmeti. By 2019, Ciner Group expects to achieve an installed capacity of 2000 TPD with the help of two subsequent expansions. The third and fourth phase of the expansion will add a total of 1000 TPD ( 500 TPD in each phase) of container glass production capacity. According to Gürsel Usta, Chairman of

the Board of Directors of Park Cam Sanayi ve Ticaret A.Ş., “Upon completion of 4 furnaces, the production capacity of the factory will almost be equal to 40% of the total glass packaging production capacity in Turkey.” Established in 1978, Park Glass’s parent company , Ciner Group is active in energy, mining, shipping and media and is one of the largest conglomerates in Turkey.

Ciner: container influence

Anadolu Cam enjoyed (and continues to do so) an almost quasi-monopoly position in Turkish glass packaging industry. However, Ciner Group’s announcement to invest in four furnaces ( two are already operational) with an overall capacity of 600K tons/year of container glass- compared to Anadolu Cam’s 920K tons domestic capacity - would challenge the dominant position of Sise Cam. Besides, a limited domestic market, pricing environment may change , considering competitive advantage of Ciner Group’s low cost natural soda capacity that make production costs lower compared to Anadolu Cam, which uses synthetic soda whose cost is higher.

Düzce Cam

Established in 2007, Düzce Cam Sanayi ve Ticaret A.Ş. is the other float glass producer in Turkey. Located in Düzce 2nd Organized Industrial Zone and has been producing float glass since 2010 with a capacity of 600 tons / day. Located on a total area of 253.800 m2 and has 75.000 m2 of indoor space, the company claims to use best of the class manufacturing facilities at its manufacturing plant. The company plans to start its second float plant in near future. In 2012, the company had signed a contract with technology provider, Fives Stein at the glasstec event in Dusseldorf, Germany. The new float glass will have a capacity of 800 tonnes per day and will incorporate an LEM furnace, designed to meet the challenge of ever-increasing energy prices.

Consumption of different forms of packaging in last five years in Turkey Form of Packaging

2014

2013

2012

2011

2010

Glass

992,000

978,000

951,000

857,000

734,000

Paper

91,000

88,000

110,000

106,300

117,000

Metal

397,000

385,000

353,250

363,700

366,500

PET

2,854,00

2,519,00

2,160,00

2,012,700

1,834,500

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SPECIAL REPORT: Beverage packaging

Beverage packaging: how to stand out?

AG hears how beverage packagers are looking at alterna-tives to glass in a bid to be more cost-effective at standing out from the crowd.

tanding out in an increasingly saturated industry is a concern for beverage manufacturers of all sizes, but simultaneously keeping up with rapidly changing consumer demands intensifies that challenge. Major manufacturers regularly introduce new products while new categories and products from smaller companies disrupt the status quo. The solution for many companies is taking the form of packaging innovations that are changing the way consumers look at soda, beer, juice, and other beverage categories. With smaller packaging sizes, multi-packs, and situational package types, packaging innovations have become the norm for beverage companies looking for new ways to meet consumers’ changing demands and entice them to buy, and that will continue to be a major trend for the industry in 2016.

Size down…profits up?

One packaging innovation gaining traction is mini-cans and mini-bottles. Coca-Cola and PepsiCo recently reported sales declines for soda volumes in larger packaging but sales boosts for smaller packaging, like 7.5-ounce mini-cans and 8-ounce mini-bottles. This type of packaging will be the way companies “reinvent” the soda business in the coming year, Sandy Douglas, president of Coca-Cola North America, said at a conference last year. Soda companies have multiple reasons for downsizing their packaging. Increased profitability in exchange for convenience is a given, but soda

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companies are also contending with nationwide soda tax proposals and recommendations from the WHO, FDA, and 2015 Dietary Guidelines that consumers limit their sugar intake, which soda is notorious for containing. “As you downsize packaging, you’re realizing, especially on the sugar side of things, people want to limit their intake of (sugar), but they still want a Coke,” Brian Reed, principal of market structure at IRI Worldwide said. “They just don’t want a lot of Coke. So an 8-ounce can is a perfect way to keep Coke in people’s hands but at the level that they want so they don’t substitute an energy drink or small bottle of juice or something else for that.” Smaller packaging will be more common among larger manufacturers rather than smaller soda makers because larger companies tend to be more flexible in their ability to change up their packaging in terms of capital and production capabilities, Reed said. “The larger manufacturers are really good at matching up who needs what, when, and they will develop packaging to fit that need state,” said Reed.

Adding it up

Major beer manufacturers are experimenting with the quantity of individual products in multi-packs of various sizes. In this case, manufacturers tend to match up packaging more to the type and availability of shelf space in different configurations offered by varying retailer types, such as grocery stores versus drug or convenience stores, Reed said.

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SPECIAL REPORT: Beverage packaging

Manufacturers also change up pricing for multi-packs in different outlets. “I can sell a 15-pack at Walgreens and a 12-pack at a grocery store for different prices, and it’ll be different to discern that,” said Reed. “A lot of that is the outlet, but (manufacturers) are also getting to who needs what and how many and which package type as well. They are doing it for some profit reasons, but a lot of it is to provide retailers with packaging that’s specific to the needs they serve.”

Sample packs

Also coming to market are sampler packs, especially in the beer category, though this trend tends to be more common among craft beer producers than major beer manufacturers, according to Reed. Craft brewers tend to produce several varieties they can package together in one multi-pack, whereas that might not be the case for an Anheuser-Busch InBev or MillerCoors. “(Craft brewers) have multiple flavors, and they want you to try a new flavor, so they’ll give you a 12-pack which has four bottles of three different flavors,” said Reed. “They’re pretty good at that, because their mission is, they’ve got a variety of different things, where a Bud or a Bud Light, they’re not going to do that.”

New offers

Instead of offering a variety of flavors, major beer manufacturers are more likely to introduce a variety of packaging types. Bottles and cans can come in a range of sizes, and bottles themselves may be long or short necks, like Miller Lite’s steinie bottles briefly reintroduced last year, or they can be made of glass versus aluminum—it all depends on the situation in which consumers want to drink it. Cans and bottles, for example, can differ significantly from a situational perspective, according to Reed. “Bottles tend to be more at-home or in my everyday kind of living. Cans tend to be much more portable—I’m going to tailgate, camping, somewhere else,” said Reed. “(Manufacturers) recognize that the configurations need to be different based on those situations when (consumers) are using the product.” See-through packaging runs alongside manufacturers’ desire to be more transparent about their products, so more beverages will appear in see-through plastic, glass, and other clear packaging, according to a 2015 Packaged Facts report. Along with any messaging printed on the label, a

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physically transparent package enables consumers to actually see what the product looks like before they buy. Manufacturers that produce beverages that are visually appealing or feature whole, natural ingredients, another fast-growing consumer trend, can especially benefit from clear packaging. “The bottle, marketers say, gave consumers the feeling of drinking something fresh,” The Wall Street Journal reported. One drawback with this type of packaging is that some products can degrade when exposed to sunlight— a consideration manufacturers keep in mind when testing out this packaging innovation.

The green label

Recyclable PET bottles and aluminum cans have been beverage producers’ packaging types of choice for decades. Studies show that such packaging can impact consumers’ purchasing decisions. But creating packaging that is sensitive to its impact on the environment will begin taking new forms, particularly using plant-based, recycled, and renewable materials. Coca-Cola unveiled what it called the world’s first 100% plant-based PET bottle last June as part of its PlantBottle initiative launched in 2009. It’s likely other companies will follow this beverage giant’s lead, especially since the USDA proposed a new rule to promote plant-based materials. The agency would offer plant-based packaging manufacturers access to loans with cheaper interest rates for when they decide to build a new plant. Other recent eco-friendly packaging innovations have included an edible water bubble for drinking water and Tetra Pak’s recyclable bottle made from renewable paper. Nestle Waters North America debuted a new bottle for its Resource Natural Spring Water brand made from 100% recycled material, except the label and cap. Earlier this year, DuPont and ADM introduced biobased renewable packaging materials made with polymers derived from fructose, including one that is especially suitable for beverage producers as it improves gas-barrier properties to improve shelf life. Beverage manufacturers have always innovated packaging to suit the needs of consumers, but as consumer demands change ever more rapidly, so too must those packaging designs. Taking a step back and determining the best packaging type and design can address consumer needs and balancing the company’s needs for profitability, sustainability, and operational efficiency.

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ANALYSIS: China

Flat fortunes? a time for development beckons

AG looks at how China’s flat glass industry developed during 2015, and the major developments planned for the coming year.

hroughout 2015, a large number of flat glass enterprises have switched to the production of more deep processing products, such as coloured, ultra-clear, coated, insulated and electronic glass. The flat glass enterprises on upstream will gradually cover the downstream sectors. According to incomplete statistics, nearly 80 float glass lines, accounting for over 20% of the China float glass capacity, were transformed to produce higher value-added products during 2014-Oct 2015.

Luoyang Float Glass

Luoyang is the old large-scale float glass enterprises and owned 8 production lines with annual capacity of 26 million cases (1.30m.t/y). Because of narrow margin or even loss for flat glass production LFG was seeking for transformation. Bengbu Research Institute of Glass Industry has created a new technology for production of ultra-thin glass during 2014-2015. LFG carried on technical cooperation and then deep reorganization of assets with Bengbu Institute. LFG withdrawn from ordinary float glass market and switch to on-line coating and ultra-thin electronic glass with high added value and technology content. .

Qinhuangdao Yaohua Glass

As the glass market is in downturn, Qinhuangdao Yaohua Group i signed a framework agreement on reorganization with Triumph Group. Yaohua Group will be changed from production of ordinary float glass to high technology content and vaue added products by technical and technological reform of existing float lines. A new glass, new energy, new materials, industrial park will be constructed in Qinhuangdao in next 3 to 5 years, with investments on electronic glass solar industry and high boron glass and related sectors. According to incomplete statistics, new projects of advanced processing glass in 2015 are listed below. • Golden Birch: Ultra-thin optical glass project, total investment RMB 6b.,

asianglass AG 16-1

construction started. • Shandong Jinjing & PGW (US) joint venture: Energy-saving auto glass project, 1st phase investment USD 60m., expected operation in January 2016. • Wuhan Changli: Float lines switch to production of high end glass. • Corning Hefei (Anhui): LCD substrate glass project, total investment USD 1.3b., planned operation in 2018Q3. • Kibing Changxing (Zhejiang): Low radiation on-line coated glass project, capacity 600t/d, fired. • Fujian Lianxufeng: Five tempered and Low-E glass lines, investment RMB 110m., capacity 3m.m2/y, in operation. • IRICO: production of 8.5 generation glass substrate is planned. • IRICO Hefei (Anhui): photovoltaic glass project, capacity 650t/d, fired. • AGC Huizhou (Guangdong): Display glass project, investment RMB3.2b., construction started. • Kibing Pinghu (Zhejiang): No.1 float line transformation project, capacity 600t/d auto glass (<3mm), completed. • Fuyao Tianjin: Auto glass project, investment RMB 1b., settled down. • CNBM New Energy Hefei (Anhui): Photovoltaic glass line, 1st phase investment RMB 1.6b., fired. • Fuyao Chongqing: The second phase of auto glass project, total investment RMB 800m., capacity 3m.sets/y, construction started. • NEG Xiamen (Fujian): TFT 8.5 generation substrate glass project, investment RMB 4.14b., capacity 25m.m2/y, operation in 2015. • Hubei Feilihua: Quartz glass project, 1st phase investment RMB30 m., capacity 1,000t/y quart glass bar, completed in November. • LFG: Ultra-thin electronic glass project, in operation. • Kibing Zhangpu (Fujian): Coated, Tempered and insulated glass project, investment RMB 1b., capacity 19m.m2/y, environment protection approved. • Kaili Kairong: Low radiation coated glass project, 1st phase investment RMB 600m., capacity 6.50 m.cases/y.

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ANALYSIS: China

• Gansu Huayi: Glass deep processing project, total investment RMB 200m., capacity 10m.m2/y. 1st phase completed. Zhangjiajie Yongxong: Low radiation coated glass expansion & • transformation project, total investment RMB 80m., capacity 2m.m2/y, construction started. • Anhui Kinshow: Display glass project, total investment RMB 500m., capacity 20m.pcs/y double-sided vanishing conductive film glass, in operation. • Fujian Yaocheng: Tempered glass project, total investment RMB 100m., capacity 2m. sq metres/y, in operation. • CSG Yichang (Hubei): 0.33mm ultra-thin electronic glass line, capacity 150t/d, fired. • CSG Qingyuan (Guangdong): Ultra-thin electronic glass line, investment RMB 500m., capacity 1m.m2/m, in operation. • Kibing Lilin (Hunan): Ultra clear glass line, capacity 800t/d, in operation. With the reform and upgrade of flat glass industry in 13th Five Year Plan (2016-2020, it is expected that the transformation tide will continue for a period of time.

Current status

At the end of January 2016, there were 292 float glass lines and of them 223 are in operation with daily melting capacity of 147,080 tonnes, decreasing by 3.39 compared with the same period of 2015 and 1.24% compared with the previous month. This is now some 8% down on the peak of late 2014, and represents a negative growth rate of around 5-6%. However, it is still something of a recovery from the middle of the year when growth rates were as low as -9.5% month to month, and arrests the decline that has been seen from a monthly growth rate that was as high as + 15.2% in January 2014. New float glass lines fired during January-October 2015 Company Xinyi Energy-Saving Glass (Sichuan)

Export of flat glass

Customs data show that export volume of flat glass still achieve growth during January-October 2015, but the price fell more than 20%. Export volume of flat glass (m. sq metres) Month

Amount

Growth rate (%)

Cumulative

Growth rate (%)

Jan

17.52

2.4

17.52

2.3

Feb

15.85

52.1

33.37

21.2

Mar

17.51

-5.2

50.88

10.6

Apr

17.84

1.5

68.72

8.1

May

19.33

10.5

88.05

8.7

Jun

18.66

1.1

106.71

7.4

Jul

19.38

2.8

126.09

6.7

Aug

15.47

-27.6

141.56

1.4

Sept

18.45

-5.7

160.01

0.5

Oct

17.55

-3.3

177.56

0.1

Nov

n.a

Dec

n.a

Export value of flat glass (USD’000) Amount

Growth rate (%)

Cumulative

Growth rate (%)

Jan

102,441

-22.3

102,441

-22.3

Month

Line

Melting capacity (t/d)

Feb

80,503

26.8

182,944

-6.3

Mar

111,025

-20.6

293,969

-12.3

No.2

1,000

Apr

85,149

-35.3

379,118

-18.8

Hebei Yongnian Yaowei Glass

500

Sichuan Wujun Glass

No.2

900

Kibing Glass (Lilin, Hunan)

No.4

600

Lanzhou Lantian Float Glass (moved)

1,000

May

99,760

-20.8

478,878

-19.2

Jun

110,320

-19.7

589,198

-19.2

Jul

108,774

-3.2

697,972

-17.1

Aug

74,999

-34.2

772,971

-19.2

Sept

104,179

-37.2

877,150

-21.8

Xinyi Special Glass (Jiangmen, Guangdong))

No.4

1,000

Oct

85,589

-30.1

962,739

-22.6

Kibing Glass (Changxing, Zhejiang)

No.3

600

Nov

n.a

Dec

n.a

New added annual capacity 1.68m.t

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AG 16-1 asianglass

ANALYSIS: BIPV

A sunny disposition the challenges and outlook for BIPV Tomas Lenkimas and Algirdas Mockus of JSC Glassbel Baltic and Andrius Stonkus of Applied Research Institute for Prospective Technologies, discuss how evolving PV technology could yet make BIPV a more viable option for glass installers.

owadays solar market is facing more challenges than solutions. There are even more obstacles then we consider BIPV. Despite all that renewable energy is still very important and relevant topic - everybody agrees that future depends on green energy. That is why research and development in this field is strongly supported by EU government. Evaluating barriers and solving them separately with unified solution - it is clear that such complex task cannot be solved by one person or by one company only cluster of companies from various fields can accept such challenge. BIPV is faรงade element and it is face of the building therefore BIPV must correspond to high requirements from architects and in addition to that - it must fulfill all safety regulations as an electrical device regardless. By including newest digital printing on glass technologies we are able to create limitless faรงade designs and still provide PV with solar energy. Newest improvements in production machinery for PV modules give us more freedom for shapes sizes and colors. Electrical engineering and know-how creates special design junction boxes and makes BIPV as Plug-and-play device.

The solar role

The diversification of European energy portfolio has made an impact in the development of low carbon technologies. Building integrated photovoltaics takes an important position especially in construction sector identifying a huge potential and many advantages. Therefore the deployment of BIPV plays an important role in product combinations, creation of innovative solutions affecting the appearance, new design options, value proposition and flexibility in the construction sector. The architects and technical engineers are the bridge linking the detached

asianglass AG 16-1

PV and construction industries as they have a decisive role to play in recognizing the advantages and potential of BIPV. But there are still unmerged areas which have to be improved in combination with different industries, advanced technologies and research works. Simple table with problems and possible solutions give guidelines for this paper and describes main topics of this work. All above mentioned solutions are provided by cluster of companies involved in SMART-FLeX project with ambition to demonstrate the multi-functional glass/ glass PV building element as plug & play AC device for safe and easy installation into building electricity system. Demonstration of such device will cover both levels: (i) demonstration of flexibility and adaptability of manufacturing the customized design PV building elements, allowing harmonious integration in buildings and (ii) demonstration of such BIPV products in the building envelope. Challenges and possible solutions in BIPV market. Challenge

Solution

BIPV is hard to design and to understand for end user

User friendly software with understandable and use-ful outcome information

PV systems are not attractive, lack of aesthetic add-ed value

Semi-transparent glass with digital printing in front of PV

PV systems only exist in standard shapes, sizes and colors Connection to the grid is very problematics

Flexible production line, Special design micro inverter and power tracker

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ANALYSIS: BIPV

1. Solutions 1.1 Software

Newly designed software allows interaction among architects, technical designers and PV manufacturers through the new way of planning, manufacturing, marketing and sales in and around the building. The main options of software tool: such as step by step designing architectural-aesthetical and building elements with multiple functions in 2D and 3D, choosing type of glazing and mounting solutions, possibilities how to get desirable information, such as visualization, economical values, power gaining values all that and many other options is implemented. Intuitive step by step design procedure doesn’t require special skills just basic knowledge. Your project design begins by uploading your 3D project or creating building from scratch. Each step of creation is followed 3D visualization. In Figure 1 is shown how software window looks. After building model is done or uploaded, BIPV can be added and after that each module can be changed individually. Single module dialog window allow user choose many options such as division of module in 3x3 sections and each of those section can be modified separately by leaving blank areas or changing color of cells or even array of cells. See Figure 2.

Single Module dialog window

Production flexibility

To improve usage of BIPV and make it more attractive to market it is necessary to have more freedom in production. Modified manufacturing line enables for automatic manufacturing of different shape and size glass/glass PV modules. Not only it can use different color cells in one PV module it also can use different array of cells in one string and of course in one module. What is more important long life warranty can be achieved by new technology of lamination developed by LISEC Company. AS it is well known degradation of laminated glass is caused by humidity penetration in to the interlayer, that is why new technology uses high density material (butyl) around perimeter of laminated glass so it would seal laminated glass and it would become waterproof.

BIPV as Plug and play device Software window

Single Module dialog window

Software also allows user to choose façade fixing system as well as desirable U value for glazing insulation – in combination with wind load described software calculate necessary thickness of glass and build-up of insulating glass. As a final result user gets 3D visualization of the building see Figure 3, all necessary data about energy gain and that is most important software also gives necessary information for production of modules and glasses, and that is enough for price estimation and commercial proposal.

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Not only it is difficult to design BIPV but it requires great effort to find solutions for all necessary connections and wiring in the building. Often happens that BIPV is refused simply because there are no possibilities to connect it to the grid in the building or it is not cost effective. At the moment PV market mainly consists of standard PV modules (60 cell module with 3 bypass diodes), that are mounted on the roof or in the fields. Innovative solution for new type of system will widen the use of the photovoltaic and make it more attractive to market. The main purpose of plug & play solution for PV building element is to improve the performance of the state of the art junction box with an extra functions of AC/DC conversion, monitoring and maximizing the power production (MPPT) from each string of cells under different weather and shadowing conditions. Mainly all BIPV electrical systems consists of PV module itself, Power tracker which is optimizing performance of PV module, Micro-inverter which makes conversation from AC to DC and additional elements according to various country requirements. State of the art junction box accommodates power tracker, micro-inverter and other equipment in one relatively small peace please see Figure 4. The power tracker in this junction box has 3 input channels from BIPV module and 1 voltage output to micro inverter. The input voltage from each channel is between 8.5 V to 28 V (possibility to connect one or couple of strings to one channel) and depends on the type and quantity of solar cells. Otherwise standard micro inverter’s starting voltage ranges from 20 V to 30 V. Three channels work independently of one another and can be controlled by MPP tracking method. When one or more solar cells are shaded in a single string, the two non-affected strings will generate power. In addition, when solar cells are shaded in two

AG 16-1 asianglass

ANALYSIS: BIPV

State of the art junction-box (size 175x99x38 mm)

strings, only one string will perform. Ability to connect each string to separate input channel realizes an active by-passing function without using bypass diodes. It must be mentioned, that novel design junction box is also equipped with monitoring equipment (ZigBee) which allows and user to track power produced [W], energy [kWh], CO2 offset etc. and even turn on and off BIPV if necessary. Not less important for this junction box is architecture and design in combination with faĂ§ade system. The easiest way to mount this j-box is to glue it on PV module, but it can be not acceptable simply because of its size and visual appearance, that is why solution for implementing it in to the aluminium frame was designed. See Figure 5 and 6.

Aesthetics

for BIPV is still its appearance. Design freedom for architects is crucial and if some solutions can be solved by flexible manufacturing line it often the case that it is not enough. This is the place there rather new technology of digital printing on glass steps in. Top of the design digital printer owned by GLASSBEL Company is able to print high definition (720 DPI) pictures on the glass. It enables architects for limitless design of facade. Ink used for this printer is ceramic based and it must be heat treated because of that â&#x20AC;&#x201C; such glass can be used in faĂ§ade and is resistant to aging. Nevertheless it is clear that paints covering cells will influence performance of modules, but the actual amount of power loses is not known, that is why range of tests and measures was done in order to determinate influence between paints layer thickness, color of paints, coverage of picture on the glass and power losses. In order to establish desired results three different colors was used for test modules: white, green and black. Each module size 1000x1700mm was printed with gradient of 10 different zones, there first zone is 10% printed and the 10th zone is 100% printed. Each zone has separate string under it so each string can be measured separately. Different coverage of zones is achieved by two technologies: (i) using dots of 2.5mm diameter and changing spacing between them; (ii) using different thickness of paint layer on the glass. First technology (dots of 2.5mm) was done in two different thicknesses of paints layer: (i) basic layer thickness of about 10 microns and high opacity layer of about 40 microns. Summing up all that 18 modules was produced and 180 separate measures were taken. Different color modules used for testing are shown Figures 7, 8 and 9.

Despite that many barriers and challenges were already described and solutions for them were shown in detail the biggest challenge to overcome is still ahead. If many thinks can be designed and engineered by specialists the biggest let down

Figure 7 White color module

Cross section of aluminium facade beam with j-box in it.

Figure 8 Green color module

Design of aluminum facade with integrated j-box. Figure 9 Black color module

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ANALYSIS: BIPV

Testing

PV module composed of 10 strings. Every string consists of 6 solar cells in series. The measurement is performed for each string separately started from the first string (with smallest opacity). 0% 10% 20% 30% 50% 60% The power measurement was performed by using40% Pasan SunSim 3C AAA+ ness 20.12687 19.37125 17.30022 15.8078 14.09439 12.49563 10.7741 class flash solar simulator. Accuracy of current and voltage measurement is ickness 20.12687 16.43848 14.39749 12.43049 9.864803 6.596741 2.757383 better than 0.1%. Results for black modules 25 20.120.1 20

19.4

PMPP,W

16.4

17.3 14.4

15.8 14.1 12.5

12.4

10.8

9.9

9.2

7.8

6.6 5

lack

6.6

5.7

2.8

10%

20%

30%0.5 40% 0.2 50% 0.3 0.2 0 reen 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% asic thickness 20.12687 19.24515 18.30648 17.68424 16.42711 Basic thickness Opaque thickness 17.31945 Coverage paque thickness 20.12687 18.19225 16.75957 15.47858 13.81405 11.65102 Figure 10 Test results for black modules both for basic thickness and for opaque thickness of paints.

Charts 10, 11 and 12 shows how power of strings depends on coverage percentage, thickness of paint layer and the color of paints. It is clear that thicker layer has bad influence on cell performance however using thinner layer of paints does not change appearance of module but it does improve performance in comparison with thicker layer. It means that using thinner layer of paints it is possible to achieve same aesthetics as with thicker layer, but keep performance of module much higher. Also it must be mentioned that black color is decreasing efficiency more than other colors also aesthetics of black dots is not very useful because people eye Black gradiant does not focus on black dot but tries to see blue cell, so it doesn’t change Ref. 10% 20% 30% 40% appearance of module as it should. 20.127 19.647 16.884 14.021 11.191 Brighter colors, for another hand, make appearance much more pleasant. Assumption can be made based on these results – by using bright colors and choosing 50% coverage module energy loses will be not more than 0.6W per cell which is 20%. Based on these results further testing was done. Three more modules White gradient were produced20.127 with same colors but with different 22.116 21.249 technology 20.502 for handling 19.755 covering percentage. Instead of dots thinner layer of paints was used from 10% coverage to 100%. This is gradient printing technology. And to make it even more further – three modules with dots of coverage 60% from 10 to 100% but with 40% thickness of layer was done in order to find most efficient way to digitally print PV module. Green gradient

16.31856 9.798391

20.127

16.3

15.6

Ref. 15.0

14.1

11.7

Black dots 40%

9.8

13.6

8.3

7.9

6.4

14.0

18.0640

19.8 18.1

19.0 17.4

20%

18.2 17.0

17.4

30%15.6

16.6 14.3

15.8 40% 13.5

50%

14.9 12.9

9.3

20.995

7.5 18.353

19.634

5.9

17.246 4.5

16.055 3.4

2.7

White dots 40%

60%

Basic thickness Opaque thickness Coverage White Green dots 40% Basic thickness 20.12687 18.10928 17.10247 16.00931 Figure 11 Test results for green modules 17.43749 both for basic thickness 16.59077 and for opaque Opaque thickness thicknessof paints. 20.12687 17.74925 16.80795 15.79394 14.67701 13.54509

15.79729 20.127 11.74648

10%

0% 20%

30%

10% 40%

50%

20% 60%

30%80% 70%

40% 100% 90%

10%

50%

22.359 20%

22.159

21.900

30% 40% 50% 60% White gradient Green gradient

21.572

70% 80% Black gradiant

21.414

90% 100% Coverage, %

Figure 13 Test results for modules printed with gradient technology.

21.345

20.944

20.713

20.443

20.006

Results for dots of 4 0% thick paint layer modules

Results for white modules 25

25 20.9 19.6

20.120.1 18.117.7 17.4 16.8 17.1 16.6 16.0 15.8 15.8 14.7 13.5

11.7

15.2

10.6

14.8

9.4

14.3

13.9

8.9

8.5

PMPP,W

18.9710

11.2 10

0 20.127

20.5 19.0

10%

20.127

7.3

21.2 19.9 16.9

PMPP,W

22.1

19.2 18.2 18.3 17.7 17.3 16.8 16.4 15.5 13.8

19.8970

Results forgradient printed modules

Results for green modules

20.120.1

21.1500

20.7 18.4

20.4 17.2

20.0 16.1

19.7

14.9

19.4

13.7

18.9

12.7

18.6

11.7

18.6

11.1

1.0

10%

20%

30% 40% Basic thickness

50% 60% 70% Opaque thickness

80%

90%

100% Coverage

Figure 12 Test results for white modules both for basic thickness and for opaque thickness of paints.

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10%

20% 30% 40% 50% 60% White dots 40% Green dots 40%

70% 80% Black dots 40%

90% 100% Coverage, %

Figure 14 Test results for modules printed with dots of 40% thick layer of paints.

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ANALYSIS: BIPV

As it could be expected results for modules printed with dots and thinner (40%) layer of paints shows best results. For example white module printed with dots of 40% thick layer and with dot coverage of 50% loses only 0.17W per cell and it is less than 5% of maximum power.

Demonstration site

This article briefly describes all innovations done in BIPV field by SMART-FLeX team and all of them will be shown in one demonstrations site administrative building of GLASSBEL Company in Klaipeda, Lithuania (see figure 15.) This building was chosen as demonstration site because it is possible to show all improvements and innovations of project in one place. Not only it will be newly built second skin façade but part of existing façade will be replaced by new BIPV modules. First level façade existing insulated glasses will be replaced with new BIPV insulated glasses to show wide range of possibilities of BIPV usage, all other three floors will be mounted with completely new second-skin façade. All façade (600 sq.m. in total) will be finished till the end of year 2015, more than 10 different types of modules will be used with maximum size of 1700x3700mm. This is crucial part of project success because monitoring of BIPV façade will be performed and compared with calculated and designed data by developed software. All BIPV modules will have transparent part and part covered with cells so people could see through windows. To make this building more attractive digital photo of sea will be printed on façade – motive of sea is chosen because building is near the sea and the area of free economical zone there this building is situated also has overall coloring of blue and silver colors.

The future

Interest in the building integration of photovoltaics, where the PV elements actually become an integral part of the building, is growing worldwide. Building Integrated Photovoltaics (BIPV) system consists of integrating photovoltaics modules into the building envelope. Photovoltaic materials serve the dual function: electricity production and architectural function. In addition, BIPV system can provide savings in materials and electricity costs, reduce use of fossil fuels, emission of ozone depleting gases and add architectural interest to the building. Software tool for BIPV design allows the interaction among architects, technical designers and PV manufacturers through the new way of planning, manufacturing, marketing and sales in and around the building. Flexible manufacturing line surpasses barriers for and makes BIPV more attractive for architects and designers. State of the art junction box with the extra functions of AC/DC conversion, monitoring and maximizing the power production (MPPT)

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Figure 15 Demonstration site of SMART-FLeX project. Pramones 11, LT-94102, Klaipeda, Lithuania

from each string of cells under different weather and shadowing conditions makes BIPV as a Plug & Play device. Together with newest technologies in architectural glass BIPV can be not only energy gaining element but also added value product for façade visual appearance. This article briefly describes work which is done by separate companies and it is just another proof that BIPV can be successfully used in buildings. First steps for photovoltaic integration is done already and results are very promising. It is clear that BIPV will continue to improve and develop with its high potential, even nearest future will show great growth of BIPV and till 2020 each and every new building will have renewable energy and biggest part of it will be BIPV.

References [1] Photovoltaic modules of colored glass I-V Curve determination. Report. 2014 Applied Research Institute for Prospective Technologies. [2] Demonstration at industrial scale of the FLeXible manufacturing of SMART multifunctional photovoltaic building elements Deliverable1.1: Technical specifications on factory-based integration of BIPV solution [3] Demonstration at industrial scale of the FLeXible manufacturing of SMART multifunctional photovoltaic building elements Deliverable 2.2: Technical project for SMART-FLeX BIPV system [4] Demonstration at industrial scale of the FLeXible manufacturing of SMART multifunctional photovoltaic building elements Deliverable 3.2: Report on architecture of junction box-micro inverter device

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ANALYSIS: BIPV EXHIBITION PREVIEW

China Glass 2016…full steam ahead The 27th China International Glass Industrial Technical Exhibition (China Glass 2016) organized by Chinese Ceramic Society and contracted by Zhonggui Exhibition Co., Ltd. will be held at Shanghai New International Exhibition Centre on 11-14 April 2016 and will occupy 7 halls. The exhibiting area is over 80,000 square meters. Over 800 well-known glass enterprises from 29 countries around the world are expected to participate in this magnificent event. At present, the glass industry is confronting multiple pressures including excess capacity, slower development of new technical product and structural contradiction between supply and demand. Following the resources and environmental constraints continually to be strengthened and the costs of the labor and other factors of production ceaselessly to be risen, the glass industry development slows down obviously, in which the flat glass industry faces a grim situation at a loss in whole segment. Although there are so many difficulties, exhibitors at home and abroad still give the utmost attention to China Glass 2016. Up to December 31, 2015, there were 564 domestic companies definitely to participate in the event. Among them, the North Glass has booked 1,200 sq metres of space and is now the largest in the exhibiting area. Many famous companies applied for booths just before last event was over, such as Trimph International, Luoyang Float Glass Group, Land Glass, Mingte Glass, Jinjing Group, China Glass Holding, Weihai Blue Star, CSG Glass, Shanghai SYP Glass, Shandong Guangyao, Flat Glass Group, Shahe Glass Group, HIHO Glass, etc. China Building Material Academy in glass research & design field, Kaixin, Guangyao and Hebei Yingxin in glass deep processing field, reserved raw space between 100 and 300 square meters as they join in China Glass at first time. Mr. Glass Co of art glass field will bring their products of independent innovation: unbleached cameo art glass. Triumph Group’s robot will feature the industrial 4.0 concept at the first demonstration in China Glass 2016. At press time, over 200 international exhibitors are going to participate in the event, including Glaston Group, Bystronic AG, Diptech, Kuraray GmbH, Von Ardenne, Bohle GmbH, SEPR, Asahi Group, Fanuc Co., Ltd, Lisec Co., Ltd.,OMCO n.v. and Vesuvius Co.,Ltd to name a few. Foreign pavilions are also occupying similar space to before. The leading companies in Europe and USA including Bottero and Intermac of Italy, PPG of USA and Grenzebach of German have already confirmed their involvement in China

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Glass 2016 with Germany pavilion’s net area up to 800 square metres. This reflects confidence from foreign manufacturers about the Chinese economy and development of Chinese glass industry. With the implementation of the “One Belt and One Road” strategy, many companies from countries along the road are pitching their camps in China Glass 2016 one after another, they are ENTEC from Kazakhstan, SOYTAS and BEST from Turkey, ARDAKAN and Kaveh from Iran, SGS from Indonesia, DURST from Singapore, HEAT from India and Glass Service from Czech. China Glass 2016 is the 27th event since it was launched in 1986. For 30 years of development and improvement, China Glass has becomes one of 2 the largest events in global glass and is well known as same as Glasstec for strong speciality, high- degree internationalization and the largest exhibiting area in Asia. China Glass is the best platform to demonstrate the newest technology, equipment and products of glass industry. With the change of China’s economy from the traditional mode to the middle and high end, the glass industry goes forward in the course of mode transform and structural adjustment. Especially as China Government force the gradual strict request to the glass industry in order to reduce excess capacity and decrease energy consumption, Chinese enterprises are anxious to get the technology on energy –saving and consumption reduction. At this year’s exhibition, besides the traditional glass-processing technology and equipment and glass products, the diversified special glass products, manufacturing technology and machinery, especially new products, technology and equipment relevant to low-carbon economy, energy conservation, emission reduction, new energy and green building materials will be eye-catching points for the public. The 2016 year is the beginning of The 13th FiveYear Plan of China glass industry following both chance and challenge. Under new normal, the implement of series strategies including “One Belt and One Road”, Beijing-Tianji-Hebei Economic Band, Yangtze River Economic Zone and “Made in China2025” will greatly push forward the pace of the mode transform and structural adjustment in China glass industry. It is expected that China Glass 2016 will be not only an exchange platform on assisting China glass industry in mode transform and development, but also a business chance for global glass enterprises on trade, technology cooperation and exchange. For more details, please login our official website www.chinaglass-expo.com.

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ANALYSIS: Fuel and power

Power to the solar: the future investment?

James Gulnick discusses how the increased use of solar power at glass plants could be one solution to the rollercoaster of traditional fuel costs.

olar power is an attractive and environmentally friendly investment that helps lower utility costs, creates a positive cash flow, and builds corporate stewardship. This paper looks at the ins and outs of making a photovoltaic system decision, discusses the financial implications, and provides the results of an actual case study. The yearly environment benefits include energy and pollution reduction, greenhouse gas avoidance, and carbon offset. McGrory Glass, Inc. put in place investments to allow it to serve the industry longterm such as a 30 year high efficiency roof with a photovoltaic system featuring US made Sharp modules that will pay for itself in less than ¼ of the time with positive cash flow from day one.

Background

Bill Hoy thought to himself as he sat at his desk in his medium sized glass fronted office. His hardwood desk faced the sharp and distinctive obscure all glass office front. Silhouetted against a bronzed light which streamed through the tinted windows, Bill contemplated the next investment for McGrory Glass. In his time with the company, he had seen it grow in capabilities, employee experience, and market reach. The company continued funding new technologies, acquiring top industry knowledge, and penetrating new

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sectors with its products and services. Where could McGrory get a big bang for its buck? As the sun streamed through the windows warming the back of his light blue, buttoned-down collar, short sleeved shirt, an idea hit him. Or maybe it was a few million photons that were converted to heat as they warmly lit his back. What if McGrory were to become self-sufficient and 100% powered by solar energy? Was it even possible? What would be the return on investment? How would he even begin to research the idea? Bill jumped out of his seat and onto his feet to find a fellow employee. Three offices down, machinery drawings around, amidst proprietary process documentation, I busily formulated new procedures to temper anti-reflective glass (<0.5% reflectance) without compromising optical qualities. Bill appeared in the doorway asking, “What do you think about solar power?” The above inquiry led to an initial level of interest and thorough investigation into the financial implications of a photovoltaic system project. Commercial rooftop photovoltaic systems may appear to create a valuation obstacle but may be straightforwardly investigated with the use of a discounted cash flow analysis (Klise, Johnson, & Adomatis, 2013). Expenses were the cost of the system, its operation, and maintenance. Financial benefits included a 30% grant from the government, Solar Renewable Energy Certificates (SRECs) sold to the utility market for every megawatt-hour of solar electricity generated (1 SREC = 1 Mwh of solar

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ANALYSIS: Fuel and power

e people electricity generated), and utility offset for the power used that did not need to be purchased from the local utility company. A worksheet was created to evaluate the opportunity and environmental commitment. The first ten years of the project financial analysis are shown in Figure 1. The worksheet shows updated and realistic figures for utility offset and SREC revenue.

solar project focuses on the cost per watt and the robustness of the system. Figure 2 shows the initial assessment used to generate the next round of questions and negotiations.

Financial Analysis

Figure 2. Initial Solar Project Assessment Comparing Vendors

Figure 1. Financial Analysis for A Solar Company Project

Making a Photovoltaic System Decision

The next step after a first look and positive opportunity evaluation was to get a few proposals on the project. A simple RFQ was put together asking each bidder to maximize the generation from the existing roof. Various configurations of various sizes and capacities were proposed. Pricing was received ranging from $3.65 to $4.15 per watt. The merits of each proposal were compared to assess the options on an equal footing. Differences in design, materials, installation, and warranty were noted. Important items such as photovoltaic panel and inverter brands were weighed as well as the mounting schemes, and overall system production. Initial assessment of a

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As evaluated with available 2011 data, commercial sized photovoltaic system projects are cost effective when sun-sourced, self-generation, renewable energy installation paybacks are calculated utilizing comparisons based on retail energy costs, however, these projects still remain cost ineffective for utilities themselves to be able to justify the investment (Reichelstein & Yorston, 2013). Return on investment for companies depends critically on federal funding and incentive program availability as well as the geographic location of the project (Reichelstein & Yorston, 2013). Beyond the incentives made available by the U.S. federal government, businesses are able to recover photovoltaic generation projects in as little as five years through the federal Modified Accelerated Cost-Recovery System (Storey, 2012). A solar project is an iterative process. Available space, generation capacity, energy needs, and financial commitment must be weighed. The first round of proposals yields additional questions as the learning organization becomes better versed on the obstacles and opportunities. This is where solar panel and inverter manufacturer brand names become investigated as the heart which pumps future revenue streams. Warrantees, company history and strength, references, and past track record of smoothly run projects are all central to the decision. Figure 3 presents a blank copy of the solar project assessment which was used to further refine and zero in on the successful partner.

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ANALYSIS: Fuel and power

Environmental Impact

McGrory’s photovoltaic system generates enough clean energy each year to operate a television for over 5.5 million hours, reduces the emission equivalent to what is created by 431 cars in one year, and produces enough energy to power over 6 thousand computers each year (Figure 5.). The system reduces substantial amounts of carbon dioxide, nitrous oxide, and sulphur dioxide that would have been produced by coal and gas fired power plants otherwise. The carbon offset alone provides a reduction equal to that of 130 acres of trees.

Summary

Deciding to make a solar power investment can be an overwhelming decision. Fluctuating markets for SRECs, government incentives disappearing, and unknown utility prices make for unclear forecasts. With all that in mind, the results may be promising. For McGrory, financial payback is predicted within 7 years. The 653.77 KW of generating power provides 800 megawatt hours of annual production, creates net zero energy consumption, and reduces the facility’s carbon footprint to nil. At 2.3 acres or 100,000 square feet of solar roof coverage, the 30 year white heat-reducing roof with 6 inches of insulation increases panel output by 2%. Furthermore, at an atypical 15 degree panel angle, the system nets and additional 2.5% increased efficiency. Finally, the 2782 Sharp made in USA modules give the company peace of mind as it invests in renewable energy as part of its continuing corporate stewardship program.

Figure 3. Solar Project Assessment Focused on Company Strengths

System Decision

After careful review and continued negotiation with two vendors, one was finally selected. The price per watt was higher than originally proposed but with McGrory’s blessing as made in the USA Sharp modules were selected over cheaper imported brands. If Sharp modules were good enough for the space station, they were good enough for McGrory. The system was installed during January through May of 2012 with official start up in June of 2012. The final size was 653.77 kW with 2782 Sharp modules of 235 Watts each. First year production was as predicted with total production in 2013 at just over 100% of estimate. The power output for 2013 plotted along predictions are shown in Figure 4.

References [1] Klise, G. T., Johnson, J. L., & Adomatis, S. K. (2013). Valuation of solar photovoltaic systems using a discounted cash flow approach. Appraisal Journal, 81(4), 316-330. [2] Reichelstein, S., & Yorston, M. (2013). The prospects for cost competitive solar PV power. Energy Policy, 55, 117-127. [3] Storey, E. B. (2012). Solar panel projects: does it pay to play?. Journal Of Property Management, 77(6), 46-50.

Figure 4. 2013 Power Output by Month with Predicted Estimates in Blue

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ADVERTISER FEATURE

Russia and the Baltic States Strong Developing Market for Marrose Abrasives A recent strong developing new market for Marrose Abrasives products is Russia; through its far reaching connections within eastern European and the Baltic States, with a key distributor in Lazurnoe based in St Petersburg. Lazurnoe, was established in 1999, and now have a strong customer base throughout Russia and eastern states within the glass processor consumables and machinery market sector, making Marrose Abrasives high quality and performance polishing wheels a perfect complement with Lazurnoe’s portfolio of products for the Russian market. Lazurnoe also manufacture and sell cutting tables, glass racks and drilling, equipment. Lazurnoe Contact Details: Lazurnoe Limited, Novcherkassi pr, 1, Korp E, Saint-Petersburg, Russia, 195112 e-mail: sale@lazurnoe-stanki.ru www.lazurnoe-stanki.ru Tel: +7(812)6482230

As part of the on-going working relationship with Lazurnoe; Marrose key objective is to support and integrate within their marketing promotional activity, with a clear emphasis on recognition, retention and development of the Marrose brand throughout Russian and their existing distributor networks. Marrose Abrasives took full opportunity to support its main distributor in Russia, Lazurnoe, at the recent MIR Stekla glass exhibition, Moscow 2015. Tony Day (Managing Director) said “This was a very busy show with strong interest in Marrose polishing wheels, and also a good fact finding mission within the eastern European sector of our global business.” www.asianglass.com

Centre, Tony Day, Managing Director of Marrose Abrasives, with the Lazurnoe sales and customer support team.

Marrose Abrasives, based in the United Kingdom, was established in 1976, initially producing abrasive wheels for polishing turbine blades for Rolls Royce Aero Engines. In 1979 Marrose began to specialise in manufacturing rubber bonded abrasive products for polishing the edge of glass, for furniture, architectural and white goods such as refrigerator shelves, cooker hobs, control panels, and over the years have become a leading global brand within the glass processor market sector. Marrose Abrasives export 80% of its manufactured products to countries such as China, India Indonesia, Malaysia, South Korea, Thailand, Vietnam, Middle Far East, Australia, Russia, Europe, North, South & Central America.

Contact details:

John Day (Sales Manager) Marrose Abrasives Ltd North Beck Mills, Becks Road, Keighley BD21 1SD, UK Tel: +44 1535 602634 Fax: +44 1535 610095 Email: sales@marrose.com Web: http://www.marrose.com

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SPECIAL REPORT: Display glass

On Display: a new way forward AG takes a look at the Chinese display glass industry and assesses the likely structure it will take going forward in the next few years…

he global demand for the substrate glass was 424 million square metres in 2014, increasing by 11.9% compared with the year before. Among them the demand for large-size substrate glass is 386 million square metres, increasing by 10.7% to and the demand for small-and- medium size substrate glass 38 million square metres, increasing by 26.3%. As for the proportion, large-size substrate glass accounts for 91.1%; and the glass substrates for televisions accounts for 64.1%. It is predicted that the global demand for substrate glass in 2015 – when the final analysis has been carried out – will have risen to 454 million square meters, increasing by 7.1%. The global demand for substrate glass will be close to 500 million square metres in 2017 and by 2020 the average annual growth rate for global demand for substrate glass will be 5.7%. There is no very clear and credible research data for global market share of the substrate glass yet. Based on the revenue statistics of some enterprises and data of previous years, China Optics & Optoelectronics Manufactures Association (COEMA) derived the global market share of the substrate glass market as a situation where: a. Global substrate glass market is still an oligopoly market: the top three enterprises monopolized the market for about 95% while the market share of Corning alone accounts for more than 50%. b. Although the two domestic enterprises (IRICO Group Electronics and Dongxu Optoelectronic) have achieved a breakthrough, the domestic substrate glass enterprises, in view of the market share, are still far from strong enough to compete with these oligopoly enterprises in the global market. c. Therefore, the competitive market for domestic substrate glass enterprises in the medium and long terms still remain at home. In 2014 the total demand for substrate glass in China was about 90.41 million square metres, an increase of 2%, accounting for 21.3% of the global market share. Among that the demand for large-size substrate glass dropped by 2.4% to 81.39million square metres while small-and-medium size substrate glass rose by 71.5% to 9.02 million square metres. In China, the large-size substrate glass and that used for television are also the main part of the entire demand. It is predicted that the demand for substrate glass in China in 2015 will have grown by 3.5% to 94 million square metres when final figures are

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analysed. The demand in 2017 will reach 100 million square metres, and the growth rate of China’s annual average demand for substrate glass will be 5.6% until 2020. For the domestic substrate glass manufacturers, due to the diversity of the demand market in China, they should pay more attention to requirements of domestic display panel enterprises. The demand of display panel enterprises for substrate glass was 76.76 million square metres in 2014, slightly lower than the domestic market demand, an increase of 42.9%, accounting for 18.1% of the global market share. Amongst that, the demand for Gen-8 was 50.59 million square meters, accounting for nearly 2/3 in total demand, while the demand for Gen 4.5~6 was only 26.17 million square metres. It is predicted that the demand of domestic panel enterprises for the substrate glass will quickly grow to 105 million square metres in 2015, with an increase of 36.9%. Amongst that the demand for Gen-8 is 75.68 million square metres, while the demand for Gen 4.5~6 is 29.41 million square metres. Looking forward to the future, the demand of domestic panel enterprises for the substrate glass will be basically saturated in 2018, and then the annual demand will reach 146 million square metres, accounting for 28.8% in the world’s total market share. From an industry overview it can be seen that China’s substrate glass market is also monopolized by Corning, Asahi Glass and NEG, with a total market share of nearly 90%. Among them Corning by itself takes about 50%. However, different from the global situation, Dongxu and IRICO surpassed NEG in 2014 and increased by 5% compared to that in 2013. It is expected that the sales of Dongxu and IRICO will continue to go up in 2015. But the increased demand recently is mainly for Gen-8 while the increase for Gen 4.5 ~ 6 is as few as 2 million square metres. So, its market share in 2015 will be lower than that of last year. At present, among the 8 domestic panel enterprises in China. Corning supplies its substrate glass product to six enterprises, the exceptions being China Star Optoelectronics Technology and Guangzhou LGD. Asahi Glass is also a supplier to China Star Optoelectronics Technology and some to CEC Panda and BOE. NEG’s substrate glass mainly goes to Guangzhou LGD, Tianma and Longteng. Except for Century Technology, SSEC and Guangzhou LGD, other five domestic enterprises used some amount of substrate glass produced by domestic enterprises.

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In focus

Anaylsis: Refractories

RECYCLING: A TIME FOR CHANGE? Michele Nestor, President of Nestor Resources Inc. and chair of the board of directors, of the Pennsylvania Recycling Markets Center, USA, discusses the issues with Waste 360 (www.waste360.com), facing container glass recycling. Glass is at the very heart of longstanding recycling programs. Yet the need to surgically extract glass to keep our recycling systems alive is a decision we’ve been asked to consider. Regardless of your role in the recycling industry, it is hard to sidestep the topic. Glass isn’t going away from the waste stream any time soon. It remains the consumers’ packaging of choice for many products. Buying things bottled and jarred in glass is one thing. Getting that glass from our kitchens to the back end of a material recovery facility (MRF) in a marketable condition is another. As far as covering the cost, well, there’s the rub. Issues with glass recycling aren’t new. In spite of being the material that most folks expect to recycle, we have yet to come up with a system of recovering glass that is universally efficient, quality driven and cost effective. With a nod to the Container Recycling Institute (CRI), the exception may be container deposit programs, but those systems aren’t always flawless nor without other challenges. If you are a contractor or a buyer, services that include handling recycled glass either have been or will be a serious point of your negotiations. For some it has proven to be a downright deal breaker. Early in 2015, the industry’s largest players announced that glass should and would be eliminated from single-stream programs. Once unthinkable to suggest, acknowledging that glass must go was a game changer. Suddenly, those struggling with glass issues for some time, related or not to single stream, felt permission to follow suit without justification or apologies. An endless stream of headlines announcing the elimination of glass collection in both curbside and dropoff programs is evident.

percent of the waste stream. The most recent EPA data suggests that we recover about 28 percent of the glass generated. Approximately 80 percent is generated by residential sources. To understand what losing residential glass collection could mean, a study done by Ohio EPA provides some clues. At the time of the study, the majority of Ohio’s solid waste districts did not include glass in their recycling collection programs. Consequently, 90 percent of the glass generated in Ohio’s municipal waste stream was ultimately disposed in landfills. The Glass Packaging Institute (GPl) offers brief descriptions for a number of bar and restaurant programs that participated in their in-depth survey of bar, restaurant and hotel programs. The full report includes a number of recommended best practices. Since the study was published five years ago and the number of participants was limited, we looked at newer programs as well. Whether as a result of the survey’s recommendations or by pure coincidence, these other programs stayed true to GPI’s findings. A typical program with a mixture of bars, restaurants

Looking for a fix

By its very nature, the scrap and recycling industry attracts opportunists. Nowhere does the old adage about one door opening as another closes ring so true. In response to the current state of glass recycling, a smattering of glassonly collection systems is evolving, mostly private sector initiated in conjunction with local governments. While glass is being pulled primarily from residential municipal programs, these services are designed to target lowhanging fruit in the hospitality industry. Looking to commercial sources to offset the tons eliminated from residential programs is a steep hill to climb. Let’s look at the statistics. The U.S.Environmental Protection Agency (EPA) tells us that glass packaging, what we target for collection, represents between 4-5

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Anaylsis

and metro hotels yields 100 to 150 tons per month. That’s roughly the equivalent amount of glass that could be recovered each month from a community with a population of 12,000, if it performed at the national rate. That’s not a bad return for the program. When you consider that we’re looking at one program per city with average populations of 300,000, the odds of replacing lost residential tons are not in our favor. In Las Vegas, rich with hotels, the recovery looks much different, but that’s an exception. On the upside, targeting the commercial sector where separating glass can be enforced by management could result in higher quality. The economics are less encouraging. By and large GPl’s survey showed commercial customers reluctant to pay for recycling services. Therefore, grants and other subsidies are used to provide what is described as cost-neutral service. Looking at newly developed programs, it is safe to say government assistance continues to play a big role. At least one of the service providers with local ties admitted that the program was viewed as a community service and not a profit center. Many customers do pay fees, but the survey’s recommendations suggest these probably do not represent the full cost of the service. That seems problematic if we expect glass recycling to be sustainable. Less than half of the states have local glass manufacturers. Slightly more have processors. Even where quality is high, transportation costs due to weight and distance remain stumbling blocks for many areas of the country. This is particularly true when faced with a processing fee for the

delivered material. That brings us back full circle to those container deposit laws. There’s plenty of data demonstrating these return systems result in high yields of cleaner material. Glass manufacturers tell us they rely heavily on these systems as reliable sources of feedstock. Yet, ironically users of glass packaging can be the loudest voices opposing these laws. We understand and can find merit in many of their objections, but it also leaves us with questions. If glass recycling is essential to glass manufacturers and packagers, we wonder who should be responsible for the cost of recovering those bottles and jars where no deposit incentives exist? Other industries reliant on recycled feedstock have made adjustments to ensure the flow of material necessary for their operations remained affordable to separate and recover at the source. Can we expect the same effort here? If not, does it signify there is no value in our efforts to salvage this material? Single-stream recyclers have thrown up their hands and declared they can’t handle the added expense of glass contamination and equipment damage. Local governments have responded by eliminating glass collection programs. Are we nearing the demise of glass recycling? The industry clearly is sending out an SOS. However, in response to this emergency message, without change at many levels, glass processors and manufacturers should not expect 100 billion bottles to wash up at their doors any time soon.

ADVERTISER FEATURE

North-East Asian hollow glass gains momentum and quality The year 2015 saw South-Korean small glass industry awaking and upgrading a large number of its old inspection equipment by the most advanced technology from TIAMA. A total of 7 new generation inspection machines, MCAL4 (for sidewall & dimensional control), MULTI4 (finish & base), MX4 (carousel machine) equipped with ATLAS (non-contact check detection), and ARGOS (Non-contact on line check detection in the finish) have been implemented last year in South-Korea showing very strong appreciation from a market highly focusing on Quality for its pharmaceutical and food industry. Taiwan, a very competitive market oriented toward export to APEC countries, has also been evolving during the last 3-4 years to become one of the most advanced in Asia. Today, it represents the second market in the region after mainland

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China to use the TIAMA’s new generation of inspection machines, already more than 20 units of the new generation MCAL4/MULTI4/ MX4 with ATLAS are in operation in Taiwan. TIAMA advanced check detection ATLAS system is already well appreciated with the 7th ATLAS unit put into operation by the end of 2015. Nevertheless China, the biggest glass market in the region is the most demanding in technology for its high level industry. Already ordered for beginning of 2016, TIAMA will deliver more than 14 inspection machines, MCAL4, MULTI4 and MX4 equipped with ATLAS. By the first semester of 2016, TIAMA will have more than 31 ATLAS systems in operation throughout China, Taiwan and South Korea, the most progressive countries in the Asian region. www.tiama.com

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CHINA FILE Insulated glass output (Jan-Oct 2015)

Daily glassware output (Jan-Oct 2015)

Province

Output (m2)

Growth rate (%)

China total

99,359,240

-1.1

Beijing

1,355,755

-22.68

Tianjin

2,021,540

-13.48

Hebei

2,779,751

39.74

Jilin

34,090

14.55

Liaoning

178,887

-4.53

Heilongjiang

97,973

48.69

Jilin

22,009

-13.39

Province China total

Output (m2)

Growth rate (%)

6,623,340

-3.16

316,646

-1.91

Shanxi

336,121

-20.69

Inner Mongolia

143,033

-10.18

Hebei

Shanghai

1,799,213

-3.07

Shanghai

6,769

-41.55

Jiangsu

9,847,476

-0.93

Jiangsu

411,690

11.83

Zhejiang

4,403,170

Zhejiang

189,597

-5.08

Anhui

5,254,889

18.72

Anhui

820,327

-11.48 -31.62

Fujian

3,287,811

-2.3

Fujian

10,410

Jiangxi

18,541,750

-12.85

Jiangxi

34,378

7.11

Shandong

5,758,793

22.31

Shandong

1,171,419

-2.89 -18.65

Henan

1,359,286

8.63

Henan

421,155

Hubei

17,862,570

-32.8

Hubei

604,402

-1.19

Hunan

3,786,402

28.65

Hunan

249,993

-13.83

Guangdong

3,675,869

7.38

Guangdong

522,312

2.24

21,423

-33.17

Chongqing

367,535

25.53 13.73

Guangxi

Flat glass output (Jan-Oct 2015)

China total

Chongqing

7,127,949

62.09

Sichuan

646,533

Sichuan

6,017,901

68.96

Guizhou

78,601

-5.01

Guizhou

890,258

33.96

Yunnan

16,539

-10.86

Yunnan

423,838

60.53

Shaanxi

14,822

-3.74

Shaanxi

2,731,371

139.89

Xinjiang

60,162

14.56

Gansu

53,485

-49.72

Ningxia

103,250

24.04

Tempered glass output (Jan-Oct 2015)

Xinjiang

123,428

-35.97

Province

Output (m2)

China total

357,001,326

6.54

5,937,036

-10.94

Output (case)

Growth rate (%)

633,284,228

-8.29

Laminated glass output (Jan-Oct 2015)

Beijing

Growth rate (%)

Output (m2)

Growth rate (%)

Tianjin

123,333

-25.4

71,554,983

5.88

Hebei

13,214,812

-18.86

-4.77

Shanxi

353,315

-70.85

131.45

Inner Mongolia

39,539

-8.47

-8.24

Liaoning

94,026

1.85

330,938

-68.35

Jilin

2,267,512

-22.94

163,972

-30.38

Heilongjiang

96,688

-14.25

Shanghai

25,616,141

17.21

Beijing

484,172

55.19

Province

Tianjin

26,654,696

-1.38

China total

Hebei

99,844,243

-11.64

Beijing

2,289,529

Shanxi

11,638,180

-22.35

Tianjin

2,358,199

Inner Mongolia

8,926,882

89.82

Hebei

2,945,789

Liaoning

11,704,765

-49.39

Shanxi

Jilin

3,660,699

-62.7

Jilin

Heilongjiang

3,190,036

-8.8

Heilongjiang

Jiangsu

40,901,252

-18.25

Shanghai

9,128,019

Jiangsu

45,148,342

2.94

Zhejiang

38,636,892

21.95

Jiangsu

1,170,1794

7.25

Zhejiang

64,136,235

-8.97

Anhui

19,193,031

-18.25

Zhejiang

939,259

-22.55

Anhui

41,898,248

18.58

Fujian

41,898,089

-4.76

Anhui

1,602,158

0.53

Fujian

13,559,209

-3.35

Jiangxi

3,162,500

-28.33

Fujian

11,656,659

3.97

Jiangxi

5,343,783

-32.69

Shandong

61,864,563

-11.44

Jiangxi

41,838

-24.49

Shandong

22,482,339

34.16

Henan

8,392,604

-32.5

Shandong

1,184,887

0.42

Henan

21,080,585

11.35

Hubei

77,715,679

3.31

Henan

4,258,227

19.46

Hubei

10,870,173

24.9

Hunan

17,516,059

40.7

Hubei

932,829

9.68

Hunan

8,885,592

13.05

Guangdong

59,748,832

-16.53

Hunan

462,340

4.1

Guangdong

18,740,252

2.19

Guangxi

5,153,490

-0.46

Guangdong

21,403,146

-0.18

Guangxi

6,621,312

2.13

Chongqing

10,796,710

-14.47

Guangxi

1,001,004

-16.49

Chongqing

17,605,380

10.41

Sichuan

42,932,121

41.45

Chongqing

6,619,969

10.72

Sichuan

10,110,300

47.98

Guizhou

7,161,954

-10.79

Sichuan

1,044,401

230.95

Guizhou

13,078,189

70.38

Yunnan

5,228,381

-42.17

Guizhou

93,773

195.23

Yunnan

1,691,372

35.15

Shaanxi

15,415,721

-6.27

Yunnan

139,440

34.85

Shaanxi

3,949,231

112.61

Gansu

1,247,791

-72.71

Shaanxi

1,732,246

253.98

Gansu

100,109

-41.18

Qinghai

3,294,601

-44.24

Ningxia

35,880

40.6

Ningxia

3,911,292

19.86

Xinjiang

6,920,284

2.54

Xinjiang

20,308

35.29

Xinjiang

46,979

60.66

asianglass AG 16-1

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AG 16-1 asianglass

Anaylsis

Refractory Zone Refractory makers hit by China India According to reports from IREFCON 2016, the slowdown in China’s economy has damaged India’s refractories sector, prompting calls for protectionist policies to preserve the country’s minerals and metals industries. India’s refractory minerals industry has been buffeted over the last year by the sharp fall in the price of steel, which has been compounded by accelerated dumping of Chinese steel products in the Indian market. Sector forecasters have responded by halving growth projections for India’s domestic steel industry, from 6% to 3% in 2016. Indian steel companies are reportedly booking losses of around Indian rupee (INR) 3,000-4,000/ tonne ($44-$59/tonne*) of steel produced. Many are also selling steel at below production costs, thanks largely to high input prices for raw materials, energy, and freight and logistics costs. India currently imports more than 50% of its refractory raw material needs, including graphite, fused and calcined alumina, magnesite and high

grade clays. According to some of the refractories businesses, the quality of domestically produced raw materials do not meet the standards required by the steel industry, while Chinese material is comparatively better for use in some applications. Sources have revealed that magnesia products are mainly imported from China, because India does not have magnesite of high enough purity to make refractory bricks – products, which only a handful of Indian companies make. Similarly, the availability of high quality refractory clays is limited, while kyanite, sillimanite and andalusite remain unobtainable from Indian suppliers. Further, a lack of beneficiation and processing capacity raw materials that are available, such as bauxite, has compelled consumers to import their requirements of this refractory mineral. Nevertheless, revenues in India’s refractories sector have increased steadily over the last six years, posting a 7% year-on-year increase in 2015 compared to 2014 and a 98.7% increase last year

over levels recorded in 2009. If the trend towards increased imports of steel and refractory products and raw materials continues, however, the growth of India’s refractories market could be sent into reverse within a short time. In an effort to make sure this does not happen, refractories companies in India have proposed a number of measures to the country’s government which they hope will enable fairer competition between Indian and international suppliers. These include: • Amending the present duty structure relating to imports of raw materials and finished goods – a system which at present makes imported products cheaper than those produced in India; • Encouraging domestic procurement of products by Indian steel companies • Making domestic products more competitive by reducing the cost burdens on manufacturers; • Increasing exports of Indian products; and • Developing more applications for Indian raw materials.

Tribunal to decide on merger South Africa THE Competition Tribunal has heard arguments for the merger of two producers of andalusite, in the face of fierce resistance from the country’s major refractory consumers. There are just two andalusite producers in SA, supplying the domestic market with the aluminasilicate mineral used to make refractory bricks. Imerys SA, a subsidiary of the French multinational industrial minerals company Imerys, wants to merge with Andalusite Resources, a private company said to be the world’s second-largest source of the mineral. The Competition Commission has already rejected the proposed merger and the mitigating measures

proposed by Imerys to placate the domestic market as regards price and supply. Imerys and Andalusite have asked for the tribunal to hear the matter, arguing the commission had made a mistake in deciding the merger would prevent or lessen competition in the sector by the creation of a monopoly and that there were no substantial benefits flowing from merging the two companies. The commission rejected their submissions around prices and supplies to domestic users. The commission’s concerns about the creation of a monopoly were shared by customers of the two mining companies. “The merged entity will have market power and

would be able to raise prices of andalusite raw material. This will then cause a ripple effect in the entire steel and iron supply chains,” said Johan Terblanche, the principal refractories specialist at ArcelorMittal SA. According to data from the US Geological Survey, SA accounted for 170,000 tonnes of andalusite production in 2014, well ahead of the 100,000 tonnes from the US, 70,000 tonnes in France and 65,000 tonnes from India. Imerys and Andalusite agreed in 2014 that Imerys would acquire Andalusite, merging their mines near Thabazimbi in Limpopo. Imerys has a mining operation near Burgersfort.

RHI suspends plant closure United Kingdom Around 60 jobs have been saved in Bonnybridge as a manufacturing plant earmarked for closure will now stay open. Jobs at the RHI Refractories UK Ltd site in the town’s Hillview Road have been under threat after the company announced it would close and operations would move to Clydebank. But the company has done a U-turn and instead will close the Cydebank site and move all staff

asianglass AG 16-1

and production from West Dunbartonshire to Falkirk district. Plant team leader Steven Bryce said: “It’s a huge relief for staff here in Bonnybridge. There’s been a lot of uncertainty for some time now and everyone is happy that a future has been secured. “We weren’t sure whether we were going to close or stay open as the order situation had

downsized and we had increasing running costs, but it is a smaller operation in Bonnybridge than it is in Clydebank. It’s great for the manufacturing process.” RHI is a world market leader in refractories with headquarters in Vienna, Austria. It produces ISO ceramics, slide gate plates, lade bricks and purging blocks for the steel industry, which has been in decline for many years.

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Anaylsis

ELECTROGLASS

Saint Gobain aims for global reach India French construction and high performance materials maker SaintGobain SA’s new refractories plant in Tamil Nadu, inaugurated by Chief Minister J. Jayalalithaa in late January, will cater to global markets, said a top group official. Saint-Gobain group chairman and CEO Pierre-Andre de Chalendar also said the group’s seventh global research centre will innovate and develop products for Indian and other markets. “The new refractories plant in Perundurai will cater to global markets. The other new investments announced by the group recently (expansion of float glass capacity at Rs.1,000 crore) will be for the Indian market,” he told reporters after Jayalalithaa inaugurated the group’s Rs.300 crore refractory plant for the glass industry in Erode district and Saint-Gobain Research India’s (SGRI) new research centre. According to de Chalendar, the group spends around 400 million euros annually on research and development (R&D). Queried about the returns from R&D, he said: “The returns are measured in terms of new products launched replacing old ones. The new products launched during the last five years contribute around 25 percent of the total sales. They have better margins.” Meanwhile the three year old SGRI - the seventh global research centre for Saint-Gobain - has already started contributing to the global product needs of its parent, said SGRi managing director Anand Tanikella. “The Indian research centre has already launched 22 products out of which around four has been launched overseas including France. Patents for 15 products have been applied for,” he said. Tanikella said the Rs.200 crore research centre spread over 120,000 square feet IIT-Madras Research Park now has around 100 scientists and engineers and the headcount will go up to over 250 over a period of time. The research centre will work on developing innovative and sustainable solutions for the group’s existing business lines - abrasives, architecture and automotive glass, gypsum plasterboard and plasters, high performance ceramics and plastics and others. According to de Chalendar, the group has not shifted any of the research projects out of its other six global research centres to India. He said India is an important market for Saint-Gobain group and in 2015, the group logged a sales of Rs.5,100 crore in the country. The group’s major businesses in India are housed in two entities: Grindwell Norton Ltd, a listed company and Saint-Gobain India Pvt Ltd.

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